How Tourism is Organized (Tourism & Hospitality Management)

Md. Shaifullar Rabbi
BBA & MBA, Major inTourism & Hospitality Management
University of Dhaka
Lecturer, Dept. of Tourism & Hospitality Management
Daffodil Institute of IT
-NU
Presented By

International Organizations
World Tourism Organization
World Travel and Tourism Council
International Air Transport Association
International Civil Aviation Organization

World Tourism Organization
 The World Tourism Organization (UNWTO) is the United Nations specialized agency responsible for
the promotion of responsible, sustainable and universally accessible tourism. It is the leading
international organization in the field of tourism, which promotes tourism as a driver of economic
growth, inclusive development and environmental sustainability and offers leadership and support to
the sector in advancing knowledge and tourism policies worldwide.
 It serves as a global forum for tourism policy issues and a practical source of tourism knowledge.
 It encourages the implementation of the Global Code of Ethics for Tourism to maximize the
contribution of tourism to socio-economic development, while minimizing its possible
negative impacts, and is committed to promoting tourism as an instrument in achieving the United
Nations Sustainable Development Goals (SDGs), geared towards eliminating poverty and fostering
sustainable development and peace worldwide.
 UNWTO generates market knowledge, promotes competitive and sustainable tourism policies and
instruments, fosters tourism education and training, and works to make tourism an effective tool for
development through technical assistance projects in over 100 countries around the world.
 UNWTO's membership includes 158 countries, six territories and over 500 affiliate members
representing the private sector, educational institutions, tourism associations and local tourism
authorities.
 Its headquarters are in Madrid.

World Travel and Tourism Council
The World Travel & Tourism Council (WTTC) is a forum for
the travel and tourism industry. It is made up of members
from the global business community and works with
governments to raise awareness about the travel and
tourism industry. It is known for being the only forum to
represent the private sector in all parts of the industry
worldwide. Its activities include research on the economic
and social impact of the industry and its organization of
global and regional summits focused on issues and
developments relevant to the industry.

International Air Transport Association
The International Air Transport Association(IATA) is
a trade association of the world's airlines founded in 1945.
IATA has been described as a cartel since, in addition to
setting technical standards for airlines; IATA also organized
tariff conferences that served as a forum for price fixing.
Consisting in 2016 of 290 airlines, primarily major carriers,
representing 117 countries, the IATA's member airlines
account for carrying approximately 82% of total available
seat miles air traffic. IATA supports airline activity and helps
formulate industry policy and standards. It is headquartered
in Canada in the city of Montréal, with Executive Offices
in Geneva, Switzerland.

International Civil Aviation Organization
 The International Civil Aviation Organization (ICAO) is a specialized agency of the United Nations. It changes the
principles and techniques of international air navigation and fosters the planning and development of international air
transport to ensure safe and orderly growth.
 Its headquarters is located in Montreal,Quebec, Canada.
 The ICAO Council adopts standards and recommended practices concerning air navigation, its infrastructure, flight
inspection, prevention of unlawful interference, and facilitation of border-crossing procedures for international civil
aviation.
 ICAO defines the protocols for air accident investigation that are followed by transport safety authorities in countries
signatory to the Chicago Convention on International Civil Aviation.
 The Air Navigation Commission (ANC) is the technical body within ICAO. The Commission is composed of 19
Commissioners,nominated by the ICAO's contracting states and appointed by the ICAO Council.
 Commissioners serve as independent experts, who although nominated by their states, do not serve as state or political
representatives. International Standards and Recommended Practices are developed under the direction of the ANC
through the formal process of ICAO Panels. Once approved by the Commission, standards are sent to the Council, the
political body of ICAO,for consultation and coordination with the Member States before final adoption.
 ICAO is distinct from other international air transport organizations, particularly because it alone is vested with
international authority (among signatory states): other organizations include the International Air Transport
Association (IATA), a trade association representing airlines; the Civil Air Navigation Services Organization (CANSO), an
organization for Air navigation service providers (ANSPs); and the Airports Council International, a trade association
of airport authorities.

South Asian Association for Regional Cooperation
 The South Asian Association for Regional Cooperation (SAARC) is the
regional intergovernmental organization and geopolitical union of states
in South Asia.
 Its member states are Afghanistan, Bangladesh, Bhutan, India,
the Maldives, Nepal, Pakistan and Sri Lanka. The SAARC comprises 3% of the
world's area, 21% of the world's population and 4.21% (US$3.67 trillion) of the
global economy, as of 2019.
 The SAARC was founded in Dhaka on 8 December 1985. Its secretariat is based
in Kathmandu, Nepal. The organization promotes development of economic
and regional integration.
 It launched the South Asian Free Trade Area in 2006. The SAARC maintains
permanent diplomatic relations at the United Nations as an observer and has
developed links with multilateral entities, including the European Union.

Area of Cooperation
Tourism
 The importance of tourism had been recognized since early days of SAARC. The Leaders during the
Second Summit held at Bangalore in 1986 underlined that concrete steps should be taken to facilitate
tourism in the region. A Technical Committee on Tourism was created in 1991. During the First Meeting of
the Technical Committee on Tourism held in Colombo in October 1991, an Action Plan on Tourism was
formulated.
 First Meeting of the SAARC Tourism Ministers was held in Colombo in September 1997. It adopted
Colombo Resolution and approved a number of important activities. In 1999, the task of promoting tourism
was assigned to the SAARC Chamber of Commerce & Industry (SCCI) Tourism Council.
 The Twenty-fourth Session of the Council of Ministers (Islamabad, 2-3 January 2004) approved
establishment of the Working Group on Tourism. The First Meeting was held in Colombo in August
2004. The Working Group on Tourism prepared Plan of Activities which includes promotion of SAARC as a
common tourist destination, to encourage private sector in promoting regional cooperation in tourism,
human resource development, promotion of South Asia identity through tourism, cultural and eco-tourism
development. The Working Group was authorized to periodically review implementation of this Action Plan.
 During the Thirteenth Summit (Dhaka, 12-13 November 2005), the Leaders stressed that continued efforts
would be made by the Member States at all levels to promote people-to-people contact by facilitating travel
among SAARC countries, promotion of youth exchanges in culture and sports, promotion of intra-SAARC
tourism, establishment of linkages among professional bodies and through adoption of other concrete
measures. They decided to launch 2006 as “South Asia Tourism Year." They directed their Ministers for
Tourism to meet at an early date and elaborate a plan of activities to be undertaken during the year 2006.

Area of Cooperation
 The Tourism Ministers, who met at Cox’s Bazar (Bangladesh) in May 2006, adopted the Cox’s Bazar SAARC Action Plan on
Tourism.
 Second Meeting of the Working Group on Tourism, held in Colombo on 3-4 July 2006, recommended that for promoting
SAARC as common tourist destination (i) national airlines may use SAARC logo on aircrafts and other promotional
brochures; (ii) national airlines may also use SAARC flag with their own flag as well as national flags at their offices and (iii)
the Head of Mission representing the Chair of SAARC will organize special events in celebration of SAARC Charter Day on
8 December,with focus on promoting tourism.
 In the Fourteenth Summit the Heads of State or Government while noting the cultural and social ties among the SAARC
countries, based on common history and geography, reiterated that the future of peoples of South Asia is interlinked. They
stressed the importance of people-to-people contact as a key constituent in regional connectivity. They acknowledged the
importance of intra-regional tourism and increased exchanges, particularly among the youth, civil society, and
parliamentarians. They agreed to take measures to charge nationals of SAARC Member States fees for entry into
archeological and heritage sites as applicable to their own nationals.
 The Heads of State or Government during the Fifteenth Summit underscored the vital contribution that tourism could
afford to the economic development of the SAARC region. They agreed to make every effort to implement the
comprehensive action plan adopted by the Second Ministerial Meeting held at Cox’s Bazaar, Bangladesh. These efforts
would include facilitating the movement of people through improved travel infrastructure and air, sea and land
connectivity among the SAARC countries, collaboration in human resource development and the promotion of SAARC as a
common destination through public-private partnerships and joint campaigns.
 The Minister/ leaders of the delegations in their statements emphasized that concerted efforts should be made by
Member States to implement all decisions taken by this Forum as well as the Working Group Meetings. They reiterated to
adopt a collective approach in promoting regional tourism.

South-East Asian Tourism Organization
The South-East Asian Tourism
Organization (SEATO) is a working group formed
by both government and non-government tourism
organizations operating in Southeast Asia. SEATO
was formed in late 2009 with the aim of spreading
the financial impacts of tourism more widely into
the kampongs and villages of the region.

Pacific Asia Travel Association
 Founded in 1951, PATA is a not-for-profit membership-based association that acts as a
catalyst for the responsible development of travel and tourism to, from and within the Asia
Pacific region.
 By bringing together our private and public sector members, PATA facilitates meaningful
partnerships to enhance the value, quality and sustainable growth of travel and tourism to,
from and within the Asia Pacific region.
 The Association provides aligned advocacy, insightful research and innovative events to its
more than 800 member organizations, including 95 government, state and city tourism
bodies, 20 international airlines and airports, 102 hospitality organizations and 70
educational institutions, as well as over 4,000 youth members across the world.
 The PATA network also embraces the grassroots activism of the PATA Chapters and Student
Chapters, who organize numerous travel industry training programs and business
development events across the world. Thousands of travel professionals belong to the 31
local PATA Chapters worldwide, while hundreds of students are members of the 22 PATA
Student Chapters globally.
 PATA’s Head Office has been in Bangkok since 1998. The Association also has official offices
or representation in Beijing and London.

Bangladesh Tourism Board
 Vision: To make Bangladesh as one of the tourist destination countries in South Asia
 Bangladesh Tourism Board is the National tourism organization of Bangladesh, responsible for
promoting tourism and providing necessary training and is located in Dhaka, Bangladesh. The
board is a statutory body established in 2010 Located at Kazi Nazrul Islam Avenue , Dhaka. It is
responsible for the promotion of tourism in Bangladesh. It is under the Ministry of Civil Aviation
and Tourism of Bangladesh.
 UNWTO is proud to support the Government of the People’s Republic of Bangladesh’s decision to
form the ‘Bangladesh Tourism Board’ (BTB) as the acting ‘National Tourism Organization’ (NTO) of
Bangladesh. The Board will play the leading role of promoting and marketing Bangladesh
Tourism domestically and internationally. BTB will also be engaged in formulating tourism plans
and policies for the development of tourism, along with attracting foreign investment in the
tourism sector.
 The formation of the BTB is yet another positive step for the Bangladesh tourism industry in 2011,
after launching the campaign, “Bangladesh Tourism Year 2011” earlier this year. Through such
positive actions and increased awareness of the potential of tourism within the country, the
Bangladesh tourism industry is set for a promising future.

Bangladesh Parjatan Corporation
Bangladesh Parjatan Corporation (BPC) is the National
Tourism Organization (NTO). It was established in November
1972 by the order of the President Act 143 and commenced
its function in 1973. It is an autonomous organization under
the Ministry of Civil Aviation and Tourism.
VISION:
- Develop Bangladesh as an Exotic Tourist Destination.

MISSION
 Develop BPC as an Organization of excellence with adequate authority and capacity to regulate /
facilitate tourism industry in Bangladesh
 Develop and maintain international standard tourism products and ancillary facilities
 Involve government and encourage private sector in developing physical infrastructure i.e. road, rail,
air and waterways for easy accessibility
 Ensure security & safety of the tourists
 Take initiative for simplifying visa and immigration formalities for tourists
 Encourage pro-poor tourism industry for their economic betterment and empowerment
 Develop ecotourism based on nature and ethnic culture
 Enhance the balance of payment, create employment opportunities,alleviate poverty and create social
harmony through tourism activities
 Enhance marketing of tourism products at home and aboard
 Develop human resource in tourism sector
 Build a strong public-private partnership in the tourism industry
 Promote and maintain close cooperation with regional and international counterparts of the industry
 Handover the commercial units to the private

Association of Travel Agents of Bangladesh (ATAB)
After the liberation in 1971, the first generation travel agents of Bangladesh started feeling to be united
umbrella to form a platform for the greater interest of the travel agency to protect their rights and
privileges and to ensure the healthy growth of the travel trade sector.
Keeping in mind with its aims and objectives, the first meetings of the travel agents of Bangladesh were
held at Dhaka on 22nd October, 1976. In the subsequent second meeting held on 11th December, 1976 at
6.00 p.m., an association,namely,“IATA Travel Agent’s Association”was formed at Dhaka Club.
The first Annual General Meeting (AGM) of this unregistered Association was held in Bangkok on 10th
April, 1978 while the second AGM were held on 29th June, 1979 at Dhaka Club. The historic amendment
of the constitution of the Association was adopted in the second AGM by re-naming the association as
“Association of Travel Agents of Bangladesh”, in short,“ATAB”.
Vision
 Introducing tourism sectors of Bangladesh
 Establishing the country as tourism friendly to the whole world.
Mission
 The welfare of Travel Agencies (ATAB Members)
 Development of the tourism industry of Bangladesh
 Sustaining uninterrupted Air trafficking

Major Activities of ATAB
 Necessary steps to solve any tourism and travel agency related problems.
 Necessary steps to bring discipline in hajj activity and management for hajj pilgrims.
 Courtesy visit with the High Commissioner/Ambassador of different country in Bangladesh for
expansion of Tourism sector or industry.
 Meetings: Executive Committee Meetings, Zonal meetings, Emergency General Meetings, Annual
General Meeting, Especial General Meeting.
 Celebrate World Tourism Day in 03 zones.
 Anuual Iftar & Doa Mehfil in 03 zones.
 Family Gathering of honorable members in celebration program of Bangla New Year as “ATAB
Milonmela”.
 Arranged Marketing Conference/FAM Trip in different country to expansion tourism and business
relationship and brotherhood.
 ATAB also taken necessary steps to revised/change travel agency ownership by amending Travel
Agency Registration Act-2013.
 Creating skill manpower for Travel and Tourism sector by ATAB Tourism Training Institute

Tour Operators Association of Bangladesh (TOAB)
 Tour Operators Association of Bangladesh (TOAB), was formed in the year of
1992. This was the time when a handful of agencies operating tours inside
Bangladesh, felt the need of such an association or trade body to overcome
immense problems and difficulties being faced by them regularly. Besides this, the
other main objective or aim of the organization was to develop and nourish tourism
in Bangladesh and to promote tourism products of Bangladesh in the international
arena. After long wait and completion of different formalities, the association was
recognized as a trade organization by the Ministry of Commerce, Government of the
People's Republic of Bangladesh in 2002. Currently TOAB is having 678 members.
 In tourism, all over the world tourist's expectations are very high for a hazardless
traveling, secured food & lodging, efficient spot-visits, economically cost-effective
transaction in every step whether it is a business or a personal recreational tour.
 To fulfill these demands of an individual or group of tourists the tour operators come
into picture and provide all the services they need. They are like one-stop service
provider starting from their arrival to departure in case of the overseas tourists and
from your house back to your house in case of local tourist either it is inside the
country or to a foreign land.

TOAB
 In Bangladesh where the infrastructure of this industry is not well developed it is always
recommended that a tourist should arrange his travel here through a member of TOAB, which
will be more safe and authentic.
 It is a fact that due to different limitations prevailing in the field, TOAB failed to perform to its
full capacity in the past years. However, they still hold meeting to exchange views with the
Aviation and Tourism Journalist Forum, observed World Tourism day and organized seminar in
collaboration with Bangladesh Parjatan Corporation.
 It also organized seminar in association with Federation of Bangladesh Chamber of Commerce
and Industries (FBCCI). It is expected that, with the change in the whole atmosphere in
Bangladesh including the executive body of TOAB, they will do much more in the coming years.
TOAB is the Premium Partner of Dhaka Travel Mart since its inception.
 TOAB maintains excellent relationship with Ministry of Civil Aviation and Tourism, Bangladesh
Parjatan Corporation, Bangladesh Hotel Owner Association of Travel Agents of Bangladesh,
PATA Bangladesh Chapter and other trade bodies.
 Since the beginning of TOAB, its members have been actively participating in different
international trade fairs like ITB - Berlin, WTM - London, BITE - Beijing, ATA Travel Mart -
Bangkok, TTF - Kolkata, SATTE - Delhi etc. in collaboration with the Ministry and BPC from to
time.

The Airline Industry
 The airline industry is an important contributor towards economic
development. It has not only increased world trade activity by enabling faster
and easier movement of passengers and goods, but has also provided jobs to
millions of people. According to the IATA’s (the International Air Transport
Association) director general and CEO, currently, aviation provides 58 million
jobs and contributes ~$2.4 trillion in GDP. This is expected to increase to 105
million jobs and $6 trillion in GDP in 2034. The value of international trade
shipped by air has increased by 2% to $6.5 trillion. It’s expected to reach $6.8
trillion in 2014. As air passenger traffic increases, the value of tourism spending
is expected to increase by 5.2% in 2014.
 An airline is a company that provides air transport services for
traveling passengers and freight. Airlines utilize aircraft to supply these
services and may form partnerships or alliances with other airlines for code
share agreements, in which they both offer and operate the same flight.
Generally, airline companies are recognized with an air operating certificate or
license issued by a governmental aviation body. Airlines may be scheduled
or charter operators.

The Airline Industry
 The first airline was the German airship company DELAG, founded on 16 November 1909. The
four oldest non-airship airlines that still exist are the Netherlands' KLM (1919),
Colombia's Avianca (1919), Australia's Qantas (1921) and the Czech Republic's Czech
Airlines (1923).
 Airline ownership has seen a shift from mostly personal ownership until the 1930s to government-
ownership of major airlines from the 1940s to 1980s and back to large-
scale privatization following the mid-1980s. Since the 1980s, there has also been a trend of major
airline mergers and the formation of airline alliances.The largest alliances are Star Alliance, Sky
Team and One world, and these three collectively accounted for more than 60% of global
commercial air traffic in 2015. Airline alliances coordinate their passenger service programs
(such as lounges and frequent-flyer programs), offer special interline tickets and often engage in
extensive code sharing (sometimes system wide).
 As of 2019, the largest airline by passengers carried and fleet size was the American Airlines
Group, while Delta Air Lines was the largest by revenue. Lufthansa Group was the largest by
number of employees, FedEx Express by freight tonne-kilometres, Turkish Airlines by number of
countries served and UPS Airlines by number of destinations served (though United Airlines was
the largest passenger airline by number of destinations served).

The Rail Industry
 Rail transport (also known as train transport) is a means of transferring passengers and
goods on wheeled vehicles running on rails, which are located on tracks. In contrast to road
transport, where vehicles run on a prepared flat surface, rail vehicles (rolling stock) are
directionally guided by the tracks on which they run. Tracks usually consist of steel rails,
installed on ties (sleepers) set in ballast, on which the rolling stock, usually fitted with metal
wheels, moves. Other variations are also possible, such as slab track. This is where the rails are
fastened to a concrete foundation resting on a prepared subsurface.
 Rolling stock in a rail transport system generally encounters lower frictional resistance than
rubber-tired road vehicles, so passenger and freight cars (carriages and wagons) can be
coupled into longer trains. The operation is carried out by a railway company, providing
transport between train stations or freight customer facilities. Power is provided
by locomotives which either draw electric power from a railway electrification system or
produce their own power, usually by diesel engines or, historically, steam engines. Most tracks
are accompanied by a signaling system. Railways are a safe land transport system when
compared to other forms of transport. Railway transport is capable of high levels of passenger
and cargo utilization and energy efficiency, but is often less flexible and more capital-intensive
than road transport, when lower traffic levels are considered.

The Cruise Industry
 Cruise ships are large passenger ships used mainly for vacationing. Unlike ocean liners,
which are used for transport, they typically embark on round-trip voyages to various ports-
of-call, where passengers may go on tours known as "shore excursions." On "cruises to
nowhere" or "nowhere voyage", cruise ships make two- to three-night round trips without
visiting any ports of call.
 Modern cruise ships, while sacrificing some qualities of seaworthiness, have added
amenities to cater to water tourists, with recent vessels being described as "balcony-laden
floating condominiums".
 As of December 2018, there are 314 cruise ships operating worldwide, with a combined
capacity of 537,000 passengers. Cruising has become a major part of the tourism industry,
with an estimated market of $29.4 billion per year, and over 19 million passengers carried
worldwide annually as of 2011.The industry's rapid growth has seen nine or more newly built
ships catering to a North American clientele added every year since 2001, as well as others
servicing European clientele.
 As of 2020, the world's largest passenger ship is Royal Caribbean's Symphony of the Seas.

Hospitality and Related Services
 With the broadness of this industry, some defining aspects are important
to understanding. The hospitality industry is a broad category of fields
within service industry that includes lodging, event planning, theme
parks, transportation, cruise line, and additional fields within the tourism
industry.
 A hospitality unit such as a restaurant, hotel, or an amusement park
consists of units such as facility maintenance and direct operations
(servers, housekeepers, porters, kitchen workers, bartenders,
management, marketing, and human resources, etc.).
 The hospitality industry is a multibillion-dollar industry that depends on
the availability of leisure time, disposable income, and complete
customer satisfaction. There are four segments of the hospitality
industry: Food and beverages, Travel and Tourism, lodging, and
recreation.

1. Food and Beverages
 The food and beverage sector which is professionally known by its initials as
F&B is the largest segment of the hospitality industry.
 The F&B industry is estimated to provide 50% of all meals eaten in the US
today. It comprises of establishments primarily engaged in preparing meals,
snacks, and beverages for immediate consumption on and off the premises.
When a restaurant is part of a hotel, services it renders can enhance the
guest experience by providing excellent food and first-class customer
service.
2.Travel and Tourism
 Travel and tourism deal with services related to moving people from place
to place. Buses, cabs, planes, ships, trains and so on are all part of the travel
industry.
 Leisure travel is when a person spends money on lodging, food, and
recreation while taking a vacation trip, and business travel is when a person
travels for work and spends money on lodging and food. Some people also
spend on recreation while on a business travel.
 The major function of the tourism is to encourage people to travel. When
people travel, either for business or leisure, they spend money on
hospitality.

3. Lodging
 Lodging means accommodation for a period or a place to sleep for one or more
nights. Fancy hotels, youth hostels, elder hostels, campgrounds, motels and other
businesses that provide a place for people to sleep overnight are all in the lodging
industry.
 Lodging businesses markets to other market segments such as business travelers,
leisure travelers, long-stay travelers, budget travelers, and special travelers like
people working with the government, airlines, and military.
4. Recreation
 Recreation is any activity that people do for rest, relaxation, and enjoyment. The goal
of recreation is to refresh a person's body and mind. Any business that provides
activities for rest, relaxation and enjoyment, to refresh a person's body and mind is in
the recreation business.
 Entertainment businesses which provide shows such as movie or theater, attractions
which are places of special interest of visits such as zoos and museums, spectator
sports and participatory sports are all parts of the recreation business.

The Lodging Industry
 Lodging refers to the renting of a short-term dwelling. People
who travel and stay away from home for more than a day need lodging
for sleep, rest, food, safety, shelter from cold temperatures or rain, storage of
luggage and access to common household functions. Lodging is a form of
the sharing economy.
 Lodging is done in a hotel, motel, hostel, inn or hostel, a private home
(commercial, i.e. a bed and breakfast, a guest house, a vacation rental, or
non-commercially, as in certain home stays or in the home of friends), in
a tent, caravan/campervan (often on a campsite). Lodgings may be self-
catering, whereby no food is provided, but cooking facilities are available.
 Lodging is offered by an owner of real property or a leasehold estate,
including the hotel industry, hospitality industry, real estate investment
trusts, and owner-occupancy houses.

The Food Service Industry
Food service (US English) or catering industry (British English)
defines those businesses, institutions, and companies responsible
for any meal prepared outside the home. This industry
includes restaurants, school and
hospital cafeterias, catering operations, and many other formats.
 The companies that supply foodservice operators are
called foodservice distributors. Foodservice distributors sell goods
like small wares (kitchen utensils) and foods. Some companies
manufacture products in both consumer and foodservice versions.
The consumer version usually comes in individual-sized packages
with elaborate label design for retail sale. The foodservice version
is packaged in a much larger industrial size and often lacks the
colorful label designs of the consumer version.

Meeting and convention planner
 A meeting and convention planner supervises and coordinates the strategic, operational and logistical
activities necessary for the production of events. The planner can be employed or hired ad hoc
by corporations, associations, governments, and other organizations.
 Although the Occupational Information Network (O*NET), sponsored by the United States Department of
Labor and Employment and Training Administration, identified this occupation as "meeting and convention
planner," other titles are more commonly used. These titles include event planner, meeting planner,
and meeting manager. In addition, a number of other titles specific to the categories of events produced
are used, such as corporate planner and party planner
 The banquet event order (BEO), a standard form used in the hospitality industry to document the
requirements of an event as pertinent to the venue,[3] has presented numerous problems to meeting and
convention planners due to the increasing complexity and scope of modern events. In
response, Convention Industry Council developed the event specifications guide (ESG) that is currently
replacing the BEO.
 Additionally, the Convention Industry Council is spearheading The Accepted Practices Exchange (APEX).
By bringing planners and suppliers together to create industry-wide accepted practices and a common
terminology; the profession continues to enhance the professionalism of the meetings, conventions and
exhibitions industry.

Travel Agency
 Travel agency is one of the most important organizations in
the tourism private sector which plays a significant and crucial role
in the entire process of developing and promoting tourism in the
country or at a destination. It is a travel agency which packages
and processes all the attractions, accesses, amenities and ancillary
services of a country and presents them to tourists. That’s why
travel agency is known as ‘image builder ‘of a country.
 A prospective travel agency is one which makes arrangements of
travel tickets (air, rail, road, and sea); travel documents (passports,
visa and other documents required to travel); accommodation,
entertainment, and other travel-related services from principle
suppliers. It may also secure travel insurance, foreign currency for
travelling people.

Types of Travel Agency
Retail Travel Agency
 A retail travel agency sells tourist’s products directly to the public on the behalf of the products suppliers and in return
get commissions.Some package tour is sold in two ways i.e., on a commission basis and mark up the price.
 When a travel agency sells a tour on the marked-up price it means that first, it markup the cost of the tour and then sell
it at a higher rate.The markup price is the difference between retail price and wholesale cost.
 According to Airlines Reporting Corporation (ARC) a retail travel agency is defined as” a business that performs the
following functions: quotes fares, rates, make reservations, arrange travel tickets and accommodation, arrange travel
insurance, foreign currency, documents and accepts payments.”
WholesaleTravel Agency
 These agencies are specialized in organizing package tours, which are marketed to the customers/tourists through the
network of a retail travel agency or directly to the prospective clients ( if wholesale travel agency has a retail division).
A wholesale travel agency purchases tourists product components in the bulk and designs tour package.
 Sometimes, a wholesale travel agency buys travel components from the vendor in bulk and resells them to other travel
business originations. Wholesale travel agencies assemble package holidays and sell them to the clients through retail
travel agencies. A typical package tour includes – air tickets, accommodation, and something other services may also
be included in it such as entertainment,sightseeing, and sports activities etc.

Features and Importance of the Travel Agency
 Travel agency plays an important role in travel sector business.
Some most important features and importance of the travel
agency business are following as:-
 An important link between the clients and principal suppliers.
 Image-Builder.
 Ensures rapid travel services.
 Provider of authentic and reliable travel information.
 A social a continuous process.
 Establishes a good relationship with clients and vendors.

Online Travel Agents (OTAs)
 Increasing numbers of FITs are turning to online travel agents (OTAs), companies that aggregate
accommodations and transportation options and allow users to choose one or many components of their
trip based on price or other incentives. Examples of OTAs include Booking.com, Expedia.ca,
Hotwire.com, and Kayak.com. OTAs are gaining popularity with the travelling public; in 2012, they
reported online sales of almost $100 billion (Carey, Kang, & Zea, 2012) and almost triple that
figure, upward of $278 billion, in 2013 (The Economist, 2014).
 In early 2015 Expedia purchased Travelocity for $280 million, merging two of the world’s largest travel
websites. Expedia became the owner of Hotels.com, Hotwire, Egencia, and Travelocity brands, facing its
major competition from Priceline (Alba, 2015).
 Although OTAs can provide lower-cost travel options to travelers and the freedom to plan and reserve
when they choose, they have posed challenges for the tourism industry and travel services infrastructure.
As evidenced by the merger of Expedia and Travelocity, the majority of popular OTA sites are owned by
just a few companies, causing some concern over lack of competition between brands. Additionally,
many OTAs charge accommodation providers and operators a commission to be listed in their inventory
system. Commission-based services, as applied by Kayak, Expedia, Hotwire, Hotels.com, and others, can
have an impact on smaller operators who cannot afford to pay commissions for multiple online
inventories (Carey, Kang & Zea, 2012). Being excluded from listings can decrease the marketing reach of
the product to potential travelers, which is a challenge when many service providers in the tourism
industry are small or medium-sized businesses with budgets to match.

Tour Operators
A tour operator packages all or most of the
components of an offered trip and then sells them to
the traveler. These packages can also be sold through
retail outlets or travel agencies (CATO, 2014; Goeldner
& Ritchie, 2003). Tour operators work closely with
hotels, transportation providers, and attractions in
order to purchase large volumes of each component
and package these at a better rate than the traveler
could if purchasing individually. Tour operators
generally sell to the leisure market.

Types of Tour operators
Inbound Tour Operators
Outbound Tour Operators
Domestic Tour Operators
Ground Operators
Receptive tour operators
There are five main categories of tour operators that you
could fall into: inbound tour operators, outbound tour
operators, domestic tour operators, receptive tour
operators and ground tour operators. Let’s find out which
one of these five you fall into.

Inbound Tour Operators
 Inbound tour operators bring tourists into a country as a group or via individual tour
packages. They handle all arrangements in the host country; and the types of tours they curate
are specifically for non-residents touring the country.
Outbound Tour Operators
 Unlike inbound tour operators, outbound tour operators work within their countries to take
travelers to other countries. They are tour operators who market their tours for international
destinations, either for business or leisure travel.
Domestic Tour Operators
 Domestic tour operators are those that put together inclusive tour packages and sell them to
domestic travelers. In other words, they are tour operators who provide travel packages and
tours within a tourist’s native country.
Receptive Tour Operators (RTOs)
 Receptive Tour Operators (RTOs) provide tourism products to tour operators in other
markets (as a business-to-business relationship).
 Specifically, RTOs sell tourism products, whether they are sold in a tour package or alone, to
tour operators and/or travel agents. They are essentially wholesalers and they don’t sell
directly to the public.
Ground Tour Operators
 Ground tour operators operate domestically. They are however different from domestic tour
operators in that they organize tours for incoming tourists on behalf of an inbound tour
operator (and sometimes, outbound tour operators).

Travel Sales Distribution System
The link between tourism suppliers and the
customers is known as
the distribution system. The purposes of the
system of distribution are twofold: to give
potential travelers the information they
need to make a vacation choice, and to
allow them to make the necessary
reservations once they have decided on
their choice.

Direct Distribution System
 The distribution system may be direct or indirect. A direct system of distribution is one
where the supplier (destination, airline, hotel, etc.) communicates directly with the
customer. An individual, for example, may call a specific hotel or airline, or write to
them requesting a reservation for a specific date. The supplier then answers over the
phone or writes back confirming the reservation.The transaction is direct.
 Suppliers have experimented with other, less traditional forms of communicating with
the traveler. Larger companies provide toll-free 800 telephone numbers that they
advertise to the public. This allows the traveler to call the supplier without charge. In a
few cases, automated ticketing machines have been opened at airports. These
machines connect directly with the computer reservations system of an airline and
allow the traveler with a credit card the availability of receiving flight information,
making a reservation and receiving both ticket and boarding pass on the spot. These
machines have limited exposure at airports, for the airline runs the risk of upsetting
the retail travel agents who are being bypassed. If successful, it is likely that automatic
ticketing machines will be installed in hotels and elsewhere.

Indirect Distribution System
An indirect distribution system is one where there are one or more intermediaries between the
supplier and the customer. The most common intermediaries are discussed in the sections that
follow.
 Retail travel agents- These are people who sell tours for wholesalers and operators in addition
to hotel rooms, car rentals, and transportation tickets. The retailer acts as agent for the supplier
and is paid on a commission basis by the supplier for sales made.
 Tour operators or tour wholesalers- These are people who create a package that might
include a variety of tourist products such as transportation, lodging, meals, transfers,
sightseeing, etc. Wholesalers buy these "products" in bulk from the supplier at a reduced price
and make money by marking up the package. They can sell the package directly to the tourist
(tour operator) or through retailers (tour wholesaler). In the latter case, they would pay a
commission to the retail travel agent. Retail travel agents can package their own tours and sell
them to the public and/or through other retailers.
 Specialty channelers- People who are intermediaries between the retailer and the customer
are known as specialty channelers. They may represent either the customer or the supplier and
include incentive travel firms, meeting and convention planners, association executives, and
corporate travel offices. Incentive travel firms put together and sell travel as an incentive to
increase sales. They sell their ability to design, promote, and manage incentive travel programs.
Other specialty channelers are employees who buy travel services at efficient costs for their
organizations.

 Supplier choice- Why would a supplier choose to give up control of
the sale while paying a commission by distributing the product
indirectly? The major reason is cost. For many companies the cost of
maintaining a sales network is prohibitive. To set up national and
regional sales offices is very expensive and is a fixed cost; the salaries
and rents must be paid irrespective of the sales volume produced. By
contrast, the cost of selling through intermediaries is variable; a
commission is paid only if a sale is made.
 Customer choice- Numerous reasons exist why the customer would
wish to deal with an intermediary. In theory, the middleman offers
unbiased professional assistance in selecting from a variety of travel
products. For customers calling United Airlines by telephone, the
reservationist at United will try to sell united products. A travel agent,
on the other hand, will have access to and will be paid a commission on
selling a variety of airline flights. The customer is offered a better
selection and may find a less expensive and/or more convenient flight.

Attractions, Entertainment, Recreation, and Other
Sectors - Tourism
Leisure and Recreation The dictionary defines recreation as the process of giving
new life to something, of restoring something. Leisure is defined as the productive,
creative or contemplative use of free time. Recreational activities include all kinds of
sports, both team and individual such as baseball, softball, football, tennis, volleyball,
swimming and skiing. Hiking, jogging, aerobics and rock climbing are active forms
of recreation. Passive forms of recreational activities include reading, fishing, playing
and listening to music, gardening, playing computer games and watching tv or
movies.
VariedViews of Leisure and Recreation
 For some, recreations means the network of public agencies that provide parks,
playgrounds, swimming pools, sports fields and community centers in several
cities, town,counties or park districts.
 For others, recreations may be found in a senior center, a sheltered workshop for
mentally retarded individuals or a treatment center for physical rehabilitation. •
Environmentalists may be principally concerned about the impact of outdoor
forms of recreation on our natural surroundings—the forests, mountains, rivers
and lakes which are the national heritage of a nation.

Recreational Participation
 Recreation actually includes an extremely broad range of leisure
activities including travel and tourism, cultural entertainment,
participation in the arts, hobbies, membership in social clubs or
interests groups.
 Recreation may be enjoyed with thousands of participants or
spectators or may be a solitary experience. It may be very strenuous
or may be primarily a mental activity. It may act as a lifetime of interest
and involvement or may consist of a single, isolated experience.
Factors Promoting the Growth of Recreation
 Increase in discretionary time
 Influence of technology
 Public interest in health and fitness
 Commoditization of leisure
 Therapeutic recreation service
 New leisure roles for women

Attractions - Attractions can be classified in a number of ways
 Theme or Amusement Parks – the roots of these attractions go back to the
medieval Europe, when pleasure gardens were created. These gardens were
the forerunner of today’s parks, featuring fides, fireworks, dancing and games.
Ex. Disney,Universal Studios.
 Natural Attractions - are the”mainsprings” that drive many people to travel.
Ex. National Parks, forests, botanical parks, zoological parks.
 Heritage Attractions - have an appeal to those inspired to learn more about
contemporary and long-vanished civilizations.
 Recreation Attractions - maintain and provide access to indoor and outdoor
facilities where people can participate in sports and other recreational
activities.
 Commercial Attractions – are retail operations dealing in gifts, handcrafted
goods,art, and souvenirs that attract tourists Ex. Shopping
 Industrial Attractions – wineries and breweries are examples. Factory tours
are growing in number, and manufacturers have developed elaborate facilities
to handle tourists.

 Theme Parks –Theme parks usually concentrate on one dominant theme which may be
historical, cultural or geographical. The parks create an atmosphere in which the visitor is
likely to experience fantasy, glamour, escapism, prestige and excitement.
 Water Parks - A specialized type of theme park which features wave pools, slides, chutes,
shows and other forms of water-based play and entertainment. Water parks are usually part of
larger theme park operations.
 Fun Centers - In heavily populated metropolitan areas, entrepreneurs have developed a
variety of indoor fun centers, ranging from children’s play, gymnastics to family party centers,
video game arcades and big restaurants with game area.
 Sports Tourism - The purpose of sports tourism is to participate directly in a form of sport or
attend sports events as a spectator. The World Olympics is the biggest sports event. It attracts
millions of spectators and generates millions of dollars in revenue.
 The gaming industry- The gaming industry includes a whole range of activities including
casinos (both land-bases and riverboats), card games, charitable games, lottery operated
games and betting on greyhound and horse races.
 Gaming entertainment refers to one subset of the gaming industry and that is the CASINO
INDUSTRY.
 Gaming entertainment offers games of risk as part of a total package of entertainment and
leisure activities.
 It serves “social gamblers” or customers who combine gambling with many other activities
during their stay.
 Gaming entertainment refers to the casino gaming business and all its aspects—hotel
operations, entertainment offerings, retail shopping, recreational activities and other types
of operation in addition to betting on the gaming floor.

Event and Festival
 A festival is an event ordinarily celebrated by a community and centering on some characteristic
aspect of that community and its religion or cultures. It is often marked as a local or
national holiday, mela, or eid. A festival constitutes typical cases of globalization, as well as the high
culture-low culture interrelationship. Next to religion and folklore, a significant origin is agricultural.
Food is such a vital resource that many festivals are associated with harvest time. Religious
commemoration and thanksgiving for good harvests are blended in events that take place
in autumn, such as Halloween in the northern hemisphere and Easter in the southern.
 Festivals often serve to fulfill specific communal purposes, especially in regard to commemoration
or thanking to the gods and goddesses. Celebrations offer a sense of belonging for religious, social,
or geographical groups, contributing to group cohesiveness. They may also provide entertainment,
which was particularly important to local communities before the advent of mass-produced
entertainment. Festivals that focus on cultural or ethnic topics also seek to inform community
members of their traditions; the involvement of elders sharing stories and experience provides a
means for unity among families.
 In Ancient Greece and Rome, festivals such as the Saturnalia were closely associated with social
organization and political processes as well as religion. In modern times, festivals may be attended
by strangers such as tourists, who are attracted to some of the more eccentric or historical ones.
The Philippines is one example of a modern society with many festivals, as each day of the year has
at least one specific celebration. There are more than 42,000 known major and minor festivals in the
country, most of which are specific to the barangay (village) level.

How Tourism is Organized (Tourism & Hospitality Management)

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to How Tourism is Organized (Tourism & Hospitality Management)

Similar to How Tourism is Organized (Tourism & Hospitality Management) (20)

More from Md Shaifullar Rabbi

More from Md Shaifullar Rabbi (20)

Recently uploaded

Recently uploaded (20)

How Tourism is Organized (Tourism & Hospitality Management)