TRAVEL BUSINESS 1.pptxyyyyyyyyyyyyyyyyyy

INSTITUTE OF ACCOUNTANCY
ARUSHA (IAA)
PROGRAM: BACHELOR OF HOSPITALITY AND TOURISM
MANAGEMENT
MODULE NAME & CODE : THU07422: MANAGING TRAVEL
BUSINESS
SUB ENABLING OUTCOMES: DESCRIBE TRAVEL CONCEPTS AS
APPLIED IN TOURISM INDUSTRY
PREBARED BY
BARAKA ERNEST CHILANGWA
4/2/2024 PREPARED BY BARAKA ERNEST

LEARNING OBJECTIVES
At the end of this sub-enabling trainees shall
be able to;
• Introduction to travel concepts
• The role of travel industry as the component
of tourism ( Group Assignment)
• World and regional travel organisations and
their roles
• Introduction of airline industry and its role

Introduction to travel concepts
• Travel is the movement of people between
distant geographical locations. Travel can be
done by foot, bicycle, automobile, train, boat,
bus, airplane, ship or other means, with or
without luggage, and can be one way or round
trip.

Introduction to travel concepts
• Travel industry is the industry focused on
providing customers with the various services
they need when travelling from one part of
the world to another.

History of Travel…
• Travel is as old as mankind on the earth. Man at
the beginning of his existence roamed about the
surface of the earth in search of food, shelter,
security and better habitat.
• Like that Aryans left their homes in central Asia
due to climatic changes Perhaps this had made
possible for Babylonia to invent money, which led
to the development of commerce, trade and
industry. Incidentally almost at the same time,
trade and travel developed in India, but money
was already known in India.

History of Travel….
• The traditions and customs of travel in India –
Tibet etc. Thus, it was trade that first
motivated travel in the real sense. The
traditions and customs of travel in India are
the oldest in the world, their motive being
primarily religion and trade. In the ancient
times, and even today, travel is recognized as a
factor of cultural, religious, trade and
knowledge enrichment.

History of Travel….
• During Hindu and Chinese civilization a
movement of religion, education and culture
began. Christian missionaries, Buddhist monks
and other travelled far and wide carrying religious
messages and returned with fantastic images and
opinion about alien people. This, thus, whetted
the general appetite for travel. The Adi-
Shankaracharya gave the philosophy of six paths
of worship and travelled throughout the Indian
subcontinent and established a number of
religious canters.

History of Travel…..
• It was Roman Empire, who established travel
facilities in India but after the collapse of
Roman. Empire in the 5th Century came
turmoil in travel facilities which brought to an
end in the concept of travel. For centuries
movement of people continues to grow due to
the efficiency of transport and the assistance
and safety which the people could enjoy on
land and ser-routes. During this age, the
religious aims gave a special boost to travel.

• By the end of the 15th century Italy had
become the intellectual and cultural Centre of
Europe. It represented the classical heritage
both for the intelligentsia and the aristocracy.
• During the 16th Century, travel came to be
considered as an essential part of the
education of every young Englishman.

• Travel, thus became mean of self-
development, and education in its broadest
sense. The educational travel was known as
the ‘Grand Tour.’ Signified the travels through
Europe by which the wealth people might
acquire socio-cultural refinement by exposure
to continental, architecture, heritage,
customs, manners and systems.

• The Industrial Revolution brought about
significant changes in the pattern and structure of
British Society.
• Thus the economy of Britain was greatly
responsible for the beginning of modern tourism.
It also created a large and prosperous middle
class and because of great improvements in
transportation systems in latter held of the 18th
century and the first quarter of the 19th Century,
increasing number of people bean to travel for
pleasure.

• Travel was originally inspired by the need of
survive (food, shelter and security), the desire
to expand trade and the quest to conquer. As
transportation system improved the curiosity
for transforming the vast and virgin world into
a close neighborhood created a new industry
i.e. travel and tourism. However the
development of rails, roads, steamships
automobiles and airplanes helped to spread
technology across the globe.

• Earlier travel was a privilege only for the
wealthy people but with the industrial
revolution the scenario altogether changed.
Transportation as well as accommodation
became affordable to middle and working
class citizens. Essentially, with the
development of jet travel, communication
new technology, tourism and travel became
the world’s largest and fastest growing
industry.

The role of travel industry as the
component of tourism…….
GROUP ASSIGNMENT

World and regional travel
organisations and their roles
The following are world trade organizations;
IATA- International Air Transport Association
WTTC -World Travel and Tourism Council
UFTAA- Universal Federation of Travel Agents
Association

Definition of IATA
• The IATA (INTERNATIONAL AIR TRANSPORT
ASSOCIATION) is voluntary, non-exclusive,
non-political democratic organization and its
membership is open to any operating airline
which has been licensed to provide schedules
air services by the government.

History and evolution of IATA
• The International Air Transport Association was
founded in 1945 by the airlines of several
countries to regulate world’s civil air transport. It
is the successor to the International Air Transport
Association founded at Haugen in 1919. As a non-
governmental organization, it drew its legal
existence from a special Act of Canadian
Parliament in December, 1945. It closely
resembles with the International Civil Aviation
Organization in terms of its activities and
organizational structure.

History and evolution of IATA
• Membership
IATA has two types of members:
• Active Members, and
• Associate Members.

1. Active Members
Active membership is further divided into two types
a) Trade associations and tariff co-ordination and
b) Trade Associations only. Any airline which has
been licensed to operate scheduled air service
by the appropriate authority to transport
passengers, mail or cargo between the
territories of two countries, is eligible to become
an active member of the association. The active
members have various rights, duties and
authority. Presently, there are more than 215
airlines as active members from 200 countries.

2. Associate Members
• This membership is open to any other
organization/enterprise who is operating in
transport, hotels, resorts, travel trade and
indirectly involved in tourism related activities.
• The application for the membership in the
association is to be submitted in writing for the
consideration and action of the executive
committee and all such concerns can become
active or associate members, only after approval
by the executive committee.

2. Associate Members…….
• However, any enterprise whose application is
rejected by the committee can appear in the
next general meeting of the committee.
• The overall control and management of the
association lies with the general meeting of all
the members which takes place annually.
Basically, the meeting has two main
responsibilities

2. Associate Members…..
a) Internal affairs of the association and
b) Functions – Finance, accounting, medical,
traffic conference, legal, technical and other
activities related with the industry. The
internal affairs include – the appointment of
the president and approval of the budget etc.

Roles and functions of IATA
• IATA provides a common platform to solve any
travel trade problems.
• IATA helps the travel agencies and tour
operators to establish their professionalism
and integrity in the field of tourism
• IATA helps to simplify the traveling process.

Roles and functions of IATA
• IATA helps in the promotion and development
of tourism.
• IATA helps the government to formulate civil
aviation policy paid tourism policy.
• It lays down rules and conditions for the
approval of travel trade organizations.

World Travel and Tourism Council
(WTTC)
• The World Travel & Tourism Council is the
global authority on the economic and social
contribution of Travel & Tourism.
• Council Members are the Chairs, Presidents
and Chief Executives of the world’s leading
private sector Travel & Tourism businesses.

Roles of World Travel and Tourism
Council (WTTC)
• WTTC promotes sustainable growth for the
Travel & Tourism sector
• working with governments and international
institutions to create jobs,
• Drive exports and generate prosperity.

Definition of UFTAA
• The Universal Federation of Travel Agents
Association (UFTAA) is a federation of national
associations of travel agents and tour
operators and is the largest world body
representing the travel industry.

History and evolution of UFTAA
• In 1919, International Federation of Travel
Agencies (IFTAA) was established in Brussels.
However in 1966 IFTAA merged with the
Universal Organizations of Travel Agents
(UOTA) with the objective to ensure better
coordination, cooperation among travel
agents and to spread professionalism at globe.
The new organization established was known
as the Universal Federation of Travel Agents
Association (UFTAA).

• The main objective of the association is the
promotion, development and expansion of
travel and tourism industry worldwide.
Practically, it acts as the negotiating body
between travel agents and international
organizations. That is why; UFTAA is called one
of the principal organizations/association of
travel agents at global. Its membership is open
to all national travel agents, associations such
as TAAI, AATTA and EATTA.

• Presently, it has more than 30,000 travel agencies
from 120 member countries. The membership is
divided into various regions. The association is
managed and operated by its members. Each
national association sends delegates to attend
the general assembly which appoints the board
of directors. Presently, the board has 18 members
elected for two years. The association is managed
by the board of director assisted by secretary and
management.

Roles and functions of UFTAA in
travel and tour operations
• UFTAA negotiates on behalf of travel agencies
with international organization lie IATA, IHA, IUR
an IRU.
• Helps to standardize relations
• Develops vocational training courses
• Provide up to date information
• Organizes seminars, conferences for the
development of technology.
• Helps the members in transferring foreign
currency payments to their suppliers.

Introduction of airline industry and its
role
• The airline industry encompasses a wide
range of businesses, called airlines, which
offer air transport services for paying
customers or business partners. These air
transport services are provided for both
human travelers and cargo, and are most
commonly offered via jets, although some
airlines also use helicopters.

Introduction of airline industry and its
role
• Provides air transport services for traveling
passengers and/or freight.

GROUP ASSIGNMET
Question 1
Discuss Role of travel industry as the component
of tourism.
Submission: The assignment should be typed,
font type times new roman, font
size 12, line space 1.5 or 2.
Date of submission is 2nd Monday,
April, 2024 before 3:00 PM.

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