Tourism management notes

Tourism Management

Comprehensive Study Material for FYBScIT Semester II
Module I & Module II

Module I - Tourism Overview

Unit I: Tourism Overview

1. Meaning and Significance of Tourism

What is Tourism?

Tourism is the activity of people traveling to and staying in places outside their usual environment for leisure, business, or other purposes for not more than one consecutive year. It involves the movement of people from one place to another for various reasons like recreation, adventure, business, or visiting friends and family.

Tourism is one of the largest and fastest-growing industries in the world. It plays a very important role in the economic development of any country. When people travel, they spend money on hotels, food, transportation, shopping, and entertainment, which helps the local economy grow.

Significance of Tourism:
  • Economic Growth: Tourism brings money into the country through foreign exchange. When international tourists visit, they spend money in foreign currency, which helps strengthen the economy.
  • Employment Generation: Tourism creates millions of jobs in hotels, restaurants, transportation, travel agencies, tour operators, and other related businesses. This helps reduce unemployment.
  • Cultural Exchange: Tourism promotes understanding between different cultures. When tourists visit different countries, they learn about new traditions, languages, food, and customs. This helps build international friendship.
  • Infrastructure Development: To attract more tourists, governments build better roads, airports, hotels, and public facilities. This infrastructure also benefits local people.
  • Preservation of Heritage: Tourism encourages the protection and maintenance of historical monuments, natural parks, and cultural sites because they attract tourists.
  • Regional Development: Tourism helps develop backward and rural areas. When tourists visit remote places, it brings economic opportunities to those regions.
  • Promotes Peace: Tourism creates connections between people from different countries and promotes world peace and harmony.

2. Types of Tourism

Tourism can be classified into many different types based on the purpose of travel, destination, and activities involved. Understanding these types helps tourism professionals provide better services to tourists.

A) Domestic Tourism

When people travel within their own country for vacation or business, it is called domestic tourism. For example, a person from Mumbai visiting Goa or Delhi is a domestic tourist.

Example: Indian families visiting Taj Mahal in Agra or going to hill stations like Shimla, Manali, or Ooty during summer vacations.
B) International Tourism

When people travel to a foreign country for tourism purposes, it is called international tourism. This type of tourism brings foreign exchange to the destination country.

Example: An American tourist visiting India to see the Taj Mahal, or an Indian traveling to Paris, France for sightseeing.
C) Leisure Tourism

This is the most common type of tourism where people travel for relaxation, entertainment, and enjoyment. They want to take a break from their daily routine and have fun.

Example: Going to beaches, amusement parks, resorts, or taking cruises for vacation.
D) Business Tourism

When people travel for work-related purposes like attending conferences, meetings, exhibitions, or trade fairs, it is called business tourism. These tourists usually have limited time and require professional services.

Example: A businessman traveling to another city for a company meeting or attending an international trade fair.
E) Adventure Tourism

Adventure tourism involves exciting and thrilling activities in natural environments. People who love adventure and challenges prefer this type of tourism.

Example: Mountain climbing, river rafting, paragliding, bungee jumping, scuba diving, and trekking in the Himalayas.
F) Cultural Tourism

Cultural tourism focuses on experiencing the culture, history, art, and traditions of a place. Tourists visit museums, historical sites, festivals, and cultural events.

Example: Visiting historical monuments like Red Fort, attending Diwali celebrations, watching classical dance performances, or exploring ancient temples.
G) Religious Tourism

People travel to religious places for spiritual purposes, pilgrimage, or to attend religious events. This is one of the oldest forms of tourism.

Example: Visiting Varanasi, Tirupati Temple, Golden Temple, Mecca, Jerusalem, or Vatican City.
H) Eco-Tourism

Eco-tourism is responsible travel to natural areas that conserves the environment and improves the well-being of local communities. It focuses on nature conservation and sustainability.

Example: Visiting wildlife sanctuaries, national parks, bird watching, nature walks, and staying in eco-friendly resorts.
I) Medical Tourism

Medical tourism is when people travel to another country or place to receive medical treatment, surgery, or healthcare services. India is very popular for medical tourism because of affordable and quality healthcare.

Example: Foreigners coming to India for heart surgery, dental treatment, cosmetic surgery, or Ayurvedic treatment.
J) Sports Tourism

Sports tourism involves traveling to watch or participate in sporting events. Fans travel to support their favorite teams or athletes.

Example: Attending the Olympics, FIFA World Cup, Cricket World Cup, or IPL matches in different cities.

3. Tourists - Characteristics and Types

A tourist is any person who travels to a place outside their usual environment for at least 24 hours but not more than one year for leisure, business, or other purposes. Understanding tourists and their characteristics helps tourism businesses serve them better.

Characteristics of Tourists:
  • Temporary Stay: Tourists stay in a place for a limited period, usually from a few days to a few months, but not permanently.
  • Away from Home: They travel outside their usual living area or home environment.
  • Various Purposes: Tourists travel for different reasons like vacation, business, education, health, or visiting family.
  • Consumers of Services: Tourists use various services like hotels, restaurants, transportation, guides, and entertainment.
  • Diverse Backgrounds: Tourists come from different countries, cultures, age groups, and economic backgrounds.
  • Spending Power: Tourists spend money on accommodation, food, shopping, sightseeing, and activities, contributing to the local economy.
Types of Tourists Based on Behavior:

1. The Explorer: These tourists want to discover new places that are not popular. They like to travel independently and experience authentic local culture.

2. The Elite Tourist: These are high-end tourists who prefer luxury travel. They stay in expensive hotels, fly business class, and want personalized services.

3. The Off-Beat Tourist: These tourists avoid crowded tourist spots and prefer less-known destinations. They seek unique and unusual experiences.

4. The Mass Tourist: These are typical tourists who follow popular travel packages and visit famous tourist attractions. They prefer organized tours and comfortable facilities.

5. The Charter Tourist: These tourists travel in groups using pre-arranged tour packages. Everything is planned in advance including flights, hotels, and sightseeing.

6. The Business Tourist: They travel primarily for work but may also do some sightseeing. They need efficient services and good communication facilities.

7. The Budget Tourist: These tourists travel with limited money. They look for cheap accommodation, use public transport, and prefer free or low-cost attractions.

8. The Backpacker: Young, adventurous tourists who travel with minimal luggage, stay in hostels, and prefer independent travel. They want authentic experiences at low cost.

4. Tourism Products

What is a Tourism Product?

A tourism product is the complete experience that a tourist purchases when they travel. It includes everything from transportation and accommodation to activities, services, and attractions at the destination. Unlike physical products, tourism products are intangible and are consumed as experiences.

Components of Tourism Product:

1. Attractions: These are the main reasons why tourists visit a place. Attractions can be natural (mountains, beaches, waterfalls), man-made (monuments, theme parks, museums), or cultural (festivals, traditions, local crafts).

Example: Taj Mahal, Eiffel Tower, Grand Canyon, Disneyland, Goa beaches.

2. Accommodation: This includes all types of places where tourists can stay like hotels, resorts, guest houses, hostels, homestays, and camping sites. Good accommodation is essential for tourist comfort.

3. Transportation: This covers all modes of travel including flights, trains, buses, taxis, cruise ships, and rental cars. Easy and comfortable transportation is crucial for tourism.

4. Activities: These are things tourists can do at the destination like sightseeing, adventure sports, shopping, dining, attending events, or participating in cultural programs.

5. Services: These include all the support services like tour guides, travel agents, information centers, currency exchange, internet facilities, and customer service.

6. Amenities: These are additional facilities that make the tourist's experience better like restaurants, entertainment centers, spas, shopping centers, and recreational facilities.

Important Characteristics of Tourism Products:
  • Intangible: You cannot touch or see a tourism product before buying it. You can only experience it.
  • Perishable: If a hotel room or flight seat is not sold today, it cannot be stored for tomorrow. The opportunity is lost.
  • Non-transferable: A tourism experience is personal and cannot be transferred to another person.
  • Heterogeneous: Every tourist's experience can be different even if they buy the same package.
  • Seasonal: Demand for tourism products changes with seasons, holidays, and weather.

5. Tourism Planning

Tourism planning is the process of organizing and developing tourism in a systematic way to get maximum benefits while minimizing negative impacts. Proper planning is essential for sustainable tourism development.

Why Tourism Planning is Important:
  • Sustainable Development: Planning ensures that tourism develops without harming the environment or local culture. It balances economic benefits with environmental protection.
  • Better Resource Utilization: Proper planning helps use land, water, and other resources efficiently for tourism development.
  • Infrastructure Development: Planning helps identify what infrastructure is needed like roads, airports, hotels, and utilities.
  • Community Benefits: Good planning ensures that local communities benefit from tourism through employment and business opportunities.
  • Competitive Advantage: Well-planned destinations can compete better with other tourist places and attract more visitors.
  • Crisis Management: Planning includes preparing for emergencies, natural disasters, and other problems that might affect tourism.
Levels of Tourism Planning:

1. National Level Planning: The government creates policies and strategies for tourism development across the entire country. This includes marketing the country internationally, creating tourism laws, and allocating budgets.

2. Regional Level Planning: This focuses on developing tourism in specific regions or states. It considers the unique attractions and resources of each region.

3. Local Level Planning: This involves planning for individual cities, towns, or tourist destinations. It deals with specific infrastructure, facilities, and local attractions.

4. Site Level Planning: This is the most detailed planning for individual tourist sites, attractions, hotels, or resorts. It includes design, facilities, and visitor management.

Steps in Tourism Planning:
  • Study and Analysis: Analyze the current situation, identify tourist attractions, study tourist flow, and assess available resources.
  • Set Objectives: Define clear goals like increasing tourist arrivals, generating employment, or preserving heritage.
  • Develop Strategies: Create plans and strategies to achieve the objectives, including marketing strategies and development plans.
  • Implementation: Put the plans into action by building infrastructure, training staff, and promoting the destination.
  • Monitoring and Evaluation: Regularly check if the plans are working and make improvements as needed.
Key Considerations in Tourism Planning:
  • Environmental protection and conservation
  • Involvement of local communities
  • Carrying capacity of the destination
  • Cultural preservation
  • Economic viability
  • Safety and security of tourists
  • Quality of services

Unit II: Tour Operator and Travel Agent Service

1. Definition and Scope of Tour Operators

Who is a Tour Operator?

A tour operator is a business organization or company that creates and sells tour packages to tourists. They combine various tourism services like transportation, accommodation, meals, sightseeing, and activities into a single package and sell it at a fixed price. Tour operators are the producers or wholesalers of tourism products.

Tour operators do not sell directly to individual tourists but work through travel agents. They plan, organize, and manage complete tours from start to finish. They handle all the complicated arrangements so that tourists can enjoy a hassle-free vacation.

Scope of Tour Operators:

1. Package Design: Tour operators create attractive tour packages by selecting destinations, planning itineraries, and combining different services. They design packages for different types of tourists like families, honeymooners, adventure seekers, or business travelers.

2. Service Provider Coordination: They negotiate and contract with hotels, airlines, bus companies, restaurants, and attraction sites to get the best prices and services. They maintain relationships with multiple service providers.

3. Marketing and Promotion: Tour operators market their packages through brochures, websites, travel agents, and advertising. They participate in travel fairs and exhibitions to promote their products.

4. Quality Control: They ensure that all services included in the package meet quality standards and tourist expectations. They monitor hotels, guides, and transportation to maintain service quality.

5. Ground Arrangements: Tour operators arrange ground transportation, local guides, sightseeing tours, and activities at the destination. They have local contacts and representatives in different places.

6. Customer Support: They provide assistance to tourists during the trip, handle complaints, and solve problems that may arise. They have emergency contact numbers and support staff.

Types of Tour Operators:

1. Inbound Tour Operators: These operators organize tours for foreign tourists visiting the country. For example, an Indian tour operator arranging tours for American tourists visiting India.

2. Outbound Tour Operators: These operators organize tours for domestic tourists traveling abroad. For example, an Indian company arranging tours for Indians visiting Europe or Dubai.

3. Domestic Tour Operators: These operators create tour packages within the country for domestic tourists. For example, tours from Mumbai to Goa or from Delhi to Agra.

4. Specialty Tour Operators: These operators focus on specific types of tourism like adventure tours, pilgrimage tours, cruise tours, or wildlife tours. They have expertise in their specialized area.

2. Functions of Travel Agent

Who is a Travel Agent?

A travel agent is a person or company that acts as an intermediary between tourists and service providers like airlines, hotels, and tour operators. They sell travel products and services directly to tourists and help them plan their trips. Travel agents are the retailers of tourism products.

Travel agents work like shopping assistants for travelers. They provide information, suggestions, bookings, and support to make travel planning easy and convenient for tourists. They earn commission from hotels, airlines, and tour operators for the bookings they make.

Major Functions of Travel Agents:

1. Information and Advice: Travel agents provide detailed information about destinations, tourist attractions, weather, best time to visit, local customs, visa requirements, and travel regulations. They advise tourists about the most suitable destinations based on their budget, interests, and time.

2. Tour Planning and Itinerary Preparation: They help tourists plan their complete trip by preparing customized itineraries. They suggest places to visit, duration of stay, and activities to do. They create day-by-day plans considering tourist preferences.

3. Booking Services:

  • Airline ticket reservations for domestic and international flights
  • Hotel and accommodation bookings
  • Railway and bus ticket bookings
  • Cruise and ferry reservations
  • Car rental arrangements
  • Entry tickets for monuments, theme parks, and events

4. Tour Package Selling: Travel agents sell ready-made tour packages from tour operators. They explain package details, inclusions, exclusions, terms, and conditions to tourists. They help tourists choose the best package for their needs.

5. Travel Documentation: They assist tourists with:

  • Passport applications and renewals
  • Visa processing and documentation
  • Travel insurance
  • Foreign exchange and currency conversion
  • Health certificates and vaccination requirements

6. Special Services: Travel agents arrange special services like:

  • Airport transfers and pick-up/drop services
  • Tour guides and escorts
  • Special meal arrangements
  • Wheelchair assistance and special needs support
  • Group bookings for conferences or weddings

7. Travel Advisory: They inform tourists about:

  • Safety and security at destinations
  • Travel warnings and restrictions
  • What to pack and clothing requirements
  • Local customs and etiquette
  • Emergency contacts and embassies

8. After-Sales Service: Travel agents provide support even after booking:

  • Sending booking confirmations and vouchers
  • Making changes or cancellations in bookings
  • Handling complaints and feedback
  • Providing 24/7 emergency support during travel
  • Following up after the trip

9. Promotional Activities: Travel agents promote tourism through:

  • Advertising in newspapers and social media
  • Participating in travel exhibitions
  • Organizing travel talks and presentations
  • Offering special discounts and deals
Difference Between Tour Operator and Travel Agent:
Tour Operator Travel Agent
Creates tour packages Sells tour packages
Wholesaler of tourism products Retailer of tourism products
Does not deal directly with tourists Deals directly with tourists
Negotiates with service providers Provides information and bookings

3. The Travel Market

What is the Travel Market?

The travel market refers to all the people who travel or have the potential to travel, and all the businesses that provide products and services to these travelers. It includes tourists, travel companies, airlines, hotels, and all other organizations involved in the tourism industry.

Understanding the travel market is essential for tour operators and travel agents because it helps them know who their customers are, what they want, and how to reach them. The travel market is constantly changing based on economic conditions, trends, technology, and traveler preferences.

Components of the Travel Market:

1. Demand Side (Travelers): This includes all types of tourists and travelers who want to buy travel products and services. They can be classified by:

  • Age Groups: Children, youth, adults, senior citizens
  • Income Levels: Budget travelers, middle-class, luxury travelers
  • Purpose: Leisure tourists, business travelers, pilgrims
  • Geographic Origin: Domestic or international tourists

2. Supply Side (Service Providers): This includes all businesses that provide travel-related products and services:

  • Airlines and other transportation companies
  • Hotels, resorts, and accommodations
  • Tour operators and travel agents
  • Restaurants and food service providers
  • Tourist attractions and entertainment venues
  • Car rental companies
  • Travel insurance companies
Market Segments in Travel:

1. Leisure Travel Market: People traveling for vacation, recreation, and pleasure. This is the largest segment of the travel market. They look for destinations with good attractions, comfortable facilities, and entertainment options.

2. Business Travel Market: Corporate travelers, professionals attending conferences, meetings, or exhibitions. They need efficient services, good connectivity, and business facilities. They are less price-sensitive and prefer time-saving options.

3. VFR Market (Visiting Friends and Relatives): People traveling to visit family members or friends. They usually stay with relatives and spend less on accommodation but use transportation and other services.

4. MICE Market (Meetings, Incentives, Conferences, Exhibitions): Group travel for business events, corporate meetings, trade fairs, and conferences. This is a high-value market segment with significant spending.

5. Senior Citizens Market: Retired people with time and money for travel. They prefer comfortable, safe, and well-organized tours with less physical activity.

6. Youth and Student Market: Young travelers and students looking for adventure, budget travel, and unique experiences. They prefer hostels, backpacking, and independent travel.

Factors Affecting the Travel Market:
  • Economic Factors: Income levels, currency exchange rates, economic growth, and employment affect people's ability to travel.
  • Social Factors: Changing lifestyles, education levels, urbanization, and social trends influence travel behavior.
  • Technology: Online booking, mobile apps, social media, and virtual reality are changing how people plan and book travel.
  • Political Stability: Safe and stable destinations attract more tourists. Political unrest or terrorism reduces travel demand.
  • Marketing and Promotion: Effective advertising and destination marketing influence travelers' choices.
  • Seasonal Factors: Weather, holidays, and festivals affect when and where people travel.
  • Government Policies: Visa regulations, travel restrictions, and tourism policies impact international travel.
Travel Market Trends:
  • Increasing use of online travel booking platforms
  • Growing demand for sustainable and eco-friendly tourism
  • Rise in solo travel, especially among young women
  • Preference for experiential travel and local culture
  • Growth of wellness tourism and medical tourism
  • Increased use of social media for travel inspiration

4. Functions of Travel Agency

A travel agency is a retail business that provides various travel-related services to tourists. Travel agencies play a crucial role in the tourism industry by connecting travelers with service providers and making travel planning convenient.

Key Functions of Travel Agency:

1. Planning and Consultancy Services:

  • Understanding customer requirements and travel preferences
  • Suggesting suitable destinations and travel options
  • Preparing customized travel itineraries
  • Providing expert advice on best travel routes and timings
  • Budget planning and cost estimation
  • Recommending appropriate travel insurance

2. Reservation and Booking Services:

  • Making airline reservations and issuing tickets
  • Booking hotel rooms and resorts
  • Arranging train and bus tickets
  • Reserving rental cars and other transportation
  • Booking cruise cabins and ferry tickets
  • Securing entry tickets to attractions, shows, and events
  • Making restaurant reservations

3. Documentation Assistance:

  • Helping with passport application and renewal
  • Processing visa applications for different countries
  • Arranging travel insurance policies
  • Providing foreign exchange services
  • Assisting with health certificates and vaccination records
  • Preparing and verifying travel documents
  • Providing information about customs regulations

4. Package Tour Services:

  • Selling ready-made tour packages from tour operators
  • Creating customized packages for individual travelers
  • Organizing group tours for schools, colleges, and companies
  • Arranging honeymoon packages
  • Planning pilgrimage and religious tours
  • Organizing adventure and sports tours

5. Information Services:

  • Providing destination information and travel guides
  • Informing about weather conditions and best time to visit
  • Explaining visa requirements and procedures
  • Advising on safety and security issues
  • Sharing information about local customs and culture
  • Providing maps, brochures, and travel literature
  • Updating about travel advisories and restrictions

6. Ground Handling Services:

  • Arranging airport transfers and pick-up services
  • Providing local transportation at destinations
  • Organizing sightseeing tours with guides
  • Arranging meet and greet services
  • Coordinating with local representatives

7. Customer Support Services:

  • Providing 24/7 emergency assistance during travel
  • Handling booking modifications and cancellations
  • Processing refunds and compensation
  • Resolving customer complaints and issues
  • Providing emergency contact numbers
  • Following up after the trip for feedback

8. Marketing and Promotional Functions:

  • Promoting destinations through advertising
  • Participating in travel fairs and exhibitions
  • Creating promotional materials and brochures
  • Managing social media and online presence
  • Offering special deals and discounts
  • Building customer database and relationships

9. Financial Services:

  • Accepting payments through various modes
  • Offering installment payment options
  • Providing foreign currency exchange
  • Issuing invoices and receipts
  • Managing refunds and cancellation charges
Benefits of Using Travel Agency Services:
  • Time-Saving: Tourists don't have to spend hours researching and booking separately
  • Expert Advice: Professional guidance from experienced travel consultants
  • Better Deals: Access to special rates and packages not available to individual travelers
  • Convenience: All services available at one place
  • Support: Help available during emergencies and problems
  • Peace of Mind: Professional handling of all travel arrangements

5. Procedure of Getting IATA Certificate

What is IATA?

IATA stands for International Air Transport Association. It is a global trade association of airlines that represents, leads, and serves the airline industry. IATA was founded in 1945 and has its headquarters in Montreal, Canada. It works to promote safe, reliable, and economical air travel worldwide.

An IATA certificate or accreditation is very important for travel agencies because it allows them to issue airline tickets directly and earn commission from airlines. Without IATA accreditation, a travel agency cannot sell airline tickets directly and must work through IATA-accredited agents.

Benefits of IATA Accreditation:
  • Authority to issue airline tickets directly to customers
  • Access to IATA's global distribution system (GDS)
  • Earn commission from airline ticket sales
  • Better credibility and trust among customers
  • Access to special fares and promotional offers
  • Professional recognition in the travel industry
  • Ability to participate in IATA training programs
  • Access to IATA's billing and settlement plan (BSP)
Types of IATA Accreditation:

1. Full IATA Accreditation: This allows the travel agency to sell tickets for all IATA member airlines worldwide. The agency can issue both domestic and international tickets.

2. Limited IATA Accreditation: This allows the agency to sell tickets only for specific airlines or routes. It has certain restrictions on the scope of operations.

Eligibility Requirements for IATA Certificate:

1. Legal Requirements:

  • The travel agency must be legally registered as a business entity
  • Must have valid business licenses and permits
  • Should have proper tax registration and compliance
  • Must have been in operation for a minimum period (usually 12 months)

2. Financial Requirements:

  • Adequate financial resources and stability
  • Minimum capital requirement as specified by IATA
  • Bank guarantees or financial security deposits
  • Proper accounting systems and financial records
  • Ability to meet financial obligations

3. Physical Requirements:

  • Proper office premises in an appropriate location
  • Office should be accessible to customers
  • Adequate office space and facilities
  • Professional signage and branding
  • Reception area for customers

4. Staff Requirements:

  • Qualified and trained staff members
  • At least one person with IATA/UFTAA certification
  • Staff should have knowledge of airline ticketing systems
  • Experience in travel industry operations

5. Technical Requirements:

  • Computer systems with internet connectivity
  • Access to Global Distribution Systems (GDS) like Amadeus, Galileo, or Sabre
  • Proper communication systems (phone, email, fax)
  • Ticketing and reservation software
  • Printer for ticket issuance
Step-by-Step Procedure to Get IATA Certificate:

Step 1: Initial Research and Preparation

  • Visit the IATA website and understand the requirements
  • Download the application forms and guidelines
  • Assess if your agency meets all eligibility criteria
  • Calculate the costs involved in the application process
  • Prepare all necessary documents

Step 2: Complete the Application Form

  • Fill out the IATA application form completely and accurately
  • Provide all business details (name, address, registration number)
  • Include information about owners and key personnel
  • Specify the type of accreditation you are applying for
  • Mention your business experience and background

Step 3: Prepare Required Documents

  • Business registration certificate
  • Tax registration documents (PAN, GST certificates)
  • Bank statements for the last 12 months
  • Financial statements and audit reports
  • Office lease agreement or ownership documents
  • Photographs of office premises (interior and exterior)
  • Resume/CV of key personnel
  • IATA training certificates (if any)
  • Business plan and operational details
  • Letters of recommendation from airlines or suppliers

Step 4: Financial Security

  • Arrange for bank guarantee as per IATA requirements
  • The guarantee amount varies by country and agency size
  • Submit financial security documents with the application
  • Ensure the guarantee is from an IATA-approved bank

Step 5: Pay Application Fees

  • Pay the non-refundable application processing fee
  • Pay the initial accreditation fee
  • Keep payment receipts for records
  • Fees vary by country and type of accreditation

Step 6: Submit Application

  • Submit the completed application form with all documents
  • Applications can be submitted online or physically
  • Ensure all documents are properly attested and notarized
  • Get acknowledgment receipt of submission

Step 7: IATA Inspection

  • IATA officials will schedule an inspection visit
  • They will verify your office premises and facilities
  • They will check staff qualifications and systems
  • They will verify all documents and information provided
  • Cooperate fully during the inspection process

Step 8: Review and Evaluation

  • IATA will review your application and inspection report
  • The evaluation process may take several weeks
  • IATA may request additional information or clarifications
  • They will assess financial stability, operational capability, and compliance

Step 9: Approval and Certificate Issuance

  • If approved, IATA will issue the accreditation certificate
  • You will receive a unique IATA numeric code
  • The certificate specifies the scope of your accreditation
  • You will be registered in IATA's agency list

Step 10: GDS Setup and Training

  • Subscribe to a Global Distribution System (Amadeus, Galileo, Sabre)
  • Get staff trained on the GDS system
  • Set up your office with necessary ticketing equipment
  • Start issuing tickets through IATA BSP system
Ongoing Requirements After Getting IATA Certificate:
  • Annual Renewal: IATA accreditation must be renewed every year by paying annual fees
  • Compliance: Must comply with all IATA rules and regulations
  • Financial Reporting: Submit financial statements regularly
  • Bank Guarantee Maintenance: Keep the financial security valid
  • BSP Payments: Make timely payments through the Billing and Settlement Plan
  • Staff Training: Ensure staff receives ongoing training
  • Regular Audits: IATA may conduct periodic inspections
Important Points to Remember:
  • The IATA application process can take 2-6 months
  • Meeting minimum requirements doesn't guarantee approval
  • Application fees are non-refundable even if rejected
  • Violation of IATA rules can lead to suspension or cancellation
  • Keep all documents and certificates up to date
  • IATA accreditation is valuable but requires significant investment

6. Tour Industry - Package Tour

What is a Package Tour?

A package tour is a pre-arranged combination of travel services sold as a single product at an all-inclusive price. It typically includes transportation, accommodation, meals, sightseeing, and other services bundled together. Package tours are created by tour operators and sold through travel agents or directly to tourists.

Package tours make travel easy and convenient because everything is planned and organized in advance. Tourists don't have to worry about booking hotels, finding transportation, or planning activities. They just pay one price and enjoy their vacation.

Components of a Package Tour:

1. Transportation:

  • Round-trip air, train, or bus tickets to the destination
  • Airport or railway station transfers
  • Local transportation for sightseeing
  • Intercity travel between multiple destinations

2. Accommodation:

  • Hotel or resort bookings for the entire stay
  • Different room categories (standard, deluxe, suite)
  • Check-in and check-out arrangements

3. Meals:

  • Breakfast, lunch, and dinner as per package
  • Different meal plans: EP (room only), CP (with breakfast), MAP (breakfast + one meal), AP (all meals)
  • Welcome drinks and special dinners

4. Sightseeing and Activities:

  • Guided tours to tourist attractions
  • Entry tickets to monuments, museums, and parks
  • Adventure activities or special experiences
  • Cultural programs and entertainment

5. Tour Guide Services:

  • Professional tour guide or escort
  • Local guides at each destination
  • Information and assistance throughout the tour

6. Additional Services:

  • Travel insurance
  • Visa assistance (for international tours)
  • Porter services for luggage
  • 24/7 customer support
Types of Package Tours:

1. Fixed Package Tours: These are ready-made packages with fixed itineraries, dates, and prices. Tourists cannot make changes to these packages. They are pre-planned and advertised in brochures.

2. Customized Package Tours: These packages are designed according to individual tourist requirements. Tourists can choose destinations, hotels, activities, and dates. They are more expensive but offer flexibility.

3. Group Package Tours: Designed for groups of people traveling together. Common for school trips, college excursions, or corporate tours. They are economical because costs are shared.

4. Honeymoon Packages: Special romantic packages for newlywed couples with luxury hotels, candlelight dinners, and scenic destinations.

5. Pilgrimage Packages: Tours to religious places with visits to temples, mosques, churches, or holy sites.

6. Adventure Packages: Include thrilling activities like trekking, rafting, paragliding, or mountain climbing.

7. Weekend Packages: Short 2-3 day tours for people who want quick getaways near their city.

8. International Tour Packages: Tours to foreign countries with all arrangements including visas, foreign exchange, and international flights.

Advantages of Package Tours:

For Tourists:

  • Convenience: Everything is pre-planned and organized. No stress of making individual bookings
  • Cost-Effective: Package tours are usually cheaper than booking services separately because tour operators get bulk discounts
  • Time-Saving: No need to spend time researching, planning, and booking
  • Professional Service: Experienced tour guides and organized schedules
  • Safety and Security: Tour operators ensure safe and reliable services
  • No Hidden Costs: One fixed price covers most expenses
  • Group Experience: Opportunity to meet and travel with other people
  • Expert Knowledge: Tour guides provide information about destinations

For Tour Operators:

  • Better Planning: Can plan resources and services in advance
  • Bulk Purchasing: Get discounts from hotels and airlines for group bookings
  • Higher Profits: Earn more by combining services and adding markup
  • Customer Satisfaction: Well-organized tours lead to happy customers
  • Repeat Business: Satisfied customers become loyal and recommend others
Disadvantages of Package Tours:
  • Less Flexibility: Fixed schedules leave little room for personal preferences or spontaneous plans
  • Rush Schedule: Often try to cover too many places in limited time, making the tour tiring
  • Limited Freedom: Must follow the group and cannot explore independently
  • Standard Services: May not match individual preferences for hotels or food
  • Hidden Exclusions: Some costs may not be included in the package price
  • Forced Shopping: Some tours include shopping stops where tourists feel pressured to buy
Example of a Package Tour: "Golden Triangle Tour" (Delhi-Agra-Jaipur)

Duration: 5 Days / 4 Nights

Price: ₹25,000 per person

Inclusions:

  • Round-trip train tickets from Mumbai to Delhi
  • 4 nights accommodation in 3-star hotels
  • Daily breakfast and dinner
  • All intercity travel by air-conditioned coach
  • Entry fees to Taj Mahal, Red Fort, Amber Fort, and City Palace
  • Professional tour guide
  • All transfers and sightseeing as per itinerary

Exclusions:

  • Lunch
  • Personal expenses
  • Travel insurance
  • Camera fees at monuments

7. Custom Tour and Arranging Accommodation for the Tourist

What is a Custom Tour?

A custom tour is a personalized travel package designed specifically according to the individual preferences, requirements, and budget of a tourist. Unlike fixed package tours, custom tours offer complete flexibility in choosing destinations, hotels, activities, dates, and services. They are also called tailor-made tours or bespoke tours.

Custom tours are ideal for tourists who want unique experiences, have specific interests, or want to travel at their own pace. Travel agents work closely with tourists to create the perfect itinerary that matches their dreams and expectations.

Process of Creating a Custom Tour:

Step 1: Understanding Customer Requirements

  • Meet with the tourist to discuss their travel dreams and expectations
  • Ask about their interests (adventure, culture, relaxation, shopping)
  • Understand their budget and spending capacity
  • Know their travel dates and duration
  • Identify any special needs (dietary restrictions, medical conditions, accessibility)
  • Understand group size and composition (family, couple, friends)

Step 2: Research and Planning

  • Research destinations that match tourist interests
  • Check availability of flights, hotels, and services for chosen dates
  • Research local attractions, activities, and events
  • Consider weather, seasons, and festivals at the destination
  • Calculate travel time and distances between places

Step 3: Creating the Itinerary

  • Design a day-by-day itinerary with activities and sightseeing
  • Select appropriate hotels based on budget and preferences
  • Choose suitable transportation options
  • Include meals, activities, and free time
  • Add buffer time for rest and relaxation
  • Make the schedule realistic and not too rushed

Step 4: Costing and Quotation

  • Calculate costs for all components of the tour
  • Get quotes from hotels, airlines, and service providers
  • Add service charges and profit margin
  • Prepare a detailed quotation showing all inclusions and exclusions
  • Provide cost breakdown for transparency

Step 5: Presentation and Discussion

  • Present the proposed itinerary to the tourist
  • Explain all details, inclusions, and exclusions
  • Discuss alternatives and options
  • Make modifications based on feedback
  • Finalize the itinerary with mutual agreement

Step 6: Booking and Confirmation

  • Collect advance payment or booking amount
  • Make reservations for flights, hotels, and activities
  • Get written confirmations from all service providers
  • Arrange necessary documents (visas, permits)
  • Book travel insurance if required

Step 7: Pre-Departure Services

  • Provide final itinerary with all details and confirmations
  • Give information about destination (weather, customs, dos and don'ts)
  • Provide emergency contact numbers
  • Brief about what to pack and carry
  • Collect final payment
  • Provide travel documents and vouchers
Advantages of Custom Tours:
  • Complete Flexibility: Tourists can choose everything according to their preference
  • Unique Experience: No two custom tours are the same; each is unique
  • Personal Pace: Tourists can travel at their own speed without rushing
  • Special Interests: Can focus on specific interests like photography, food, or adventure
  • Privacy: No need to travel with unknown people
  • Better Quality: Can choose higher quality services within budget
  • Changes Possible: Can make modifications if needed
Arranging Accommodation for Tourists:

Accommodation is one of the most important components of any tour. Tourists need comfortable, safe, and clean places to stay during their travel. Travel agents must carefully select and arrange appropriate accommodation for their clients.

Types of Accommodation:

1. Hotels: The most common type of accommodation with various categories:

  • Budget Hotels: Basic facilities at affordable prices (₹500-1500 per night)
  • 3-Star Hotels: Comfortable rooms with good facilities (₹2000-4000 per night)
  • 4-Star Hotels: Luxury rooms with excellent services (₹4000-8000 per night)
  • 5-Star Hotels: Ultra-luxury with world-class amenities (₹8000+ per night)

2. Resorts: Located in scenic or beach destinations with recreational facilities like pools, spas, and sports. Ideal for leisure travelers.

3. Guest Houses: Small, family-run accommodations offering homely atmosphere at reasonable prices.

4. Homestays: Staying with local families to experience authentic local culture and lifestyle.

5. Hostels: Budget accommodation with dormitory-style rooms for backpackers and young travelers.

6. Serviced Apartments: Self-contained apartments with kitchen facilities, ideal for longer stays.

7. Heritage Hotels: Converted palaces, forts, or mansions offering unique historical experiences.

Factors to Consider When Arranging Accommodation:
  • Budget: Choose accommodation that fits within the tourist's budget
  • Location: Select hotels near tourist attractions or in safe, convenient areas
  • Facilities: Check for required amenities like Wi-Fi, parking, restaurant, gym
  • Room Type: Single, double, twin, suite as per tourist requirements
  • Meal Plans: EP (no meals), CP (breakfast), MAP (breakfast + dinner), AP (all meals)
  • Reviews and Ratings: Check online reviews and ratings from previous guests
  • Safety and Security: Ensure the property is safe with proper security measures
  • Accessibility: Consider accessibility for elderly or disabled tourists
  • Cancellation Policy: Understand the terms for cancellations and modifications
  • Special Requirements: Arrange for special needs like cribs for babies, adjoining rooms
Procedure for Booking Accommodation:

1. Search and Selection:

  • Search for available hotels in the desired location and dates
  • Compare options based on price, facilities, and reviews
  • Shortlist 2-3 suitable properties

2. Check Availability:

  • Contact hotels to confirm room availability
  • Ask about current rates and offers
  • Inquire about group discounts if applicable

3. Make Reservation:

  • Provide guest details (names, contact information)
  • Specify check-in and check-out dates
  • Mention room type and meal plan requirements
  • Inform about any special requests

4. Confirmation and Payment:

  • Get written confirmation from the hotel (confirmation number)
  • Make payment as per hotel policy (advance or full payment)
  • Obtain and keep payment receipts
  • Get booking vouchers

5. Provide Details to Tourist:

  • Give hotel name, address, and contact numbers
  • Provide confirmation number and vouchers
  • Share hotel facilities and check-in procedures
  • Inform about hotel policies (cancellation, extra charges)

6. Follow-up:

  • Reconfirm booking 2-3 days before arrival
  • Inform hotel about exact arrival time
  • Check with tourist after check-in to ensure satisfaction
  • Handle any issues or complaints promptly
Tips for Travel Agents:
  • Build good relationships with hotels to get better rates and service
  • Always have backup options in case of overbooking
  • Keep updated database of hotels with their rates and facilities
  • Visit hotels personally to assess quality before recommending
  • Be honest with tourists about hotel standards
  • Negotiate for complimentary services or upgrades for loyal customers
  • Maintain proper records of all bookings and confirmations

Summary and Conclusion

Tourism Management is a dynamic and growing field that plays a vital role in the global economy. This course has covered the fundamental concepts of tourism, including its meaning, significance, and various types. We have explored the characteristics of tourists and the diverse tourism products that cater to different market segments.

The role of tour operators and travel agents is central to the tourism industry. Tour operators create comprehensive tour packages by combining various services, while travel agents act as intermediaries who provide valuable services to tourists including planning, booking, documentation, and support. Understanding the travel market and its segments helps these professionals serve their customers better.

Getting IATA accreditation is an important milestone for travel agencies as it allows them to issue airline tickets and access global distribution systems. The process requires meeting specific eligibility criteria and maintaining ongoing compliance with IATA standards.

Package tours and custom tours each have their own advantages. Package tours offer convenience and cost-effectiveness, while custom tours provide flexibility and personalized experiences. Arranging appropriate accommodation is crucial for tourist satisfaction, and travel professionals must consider various factors when selecting and booking hotels.

As future tourism professionals, it is important to understand that successful tourism management requires not only technical knowledge but also excellent customer service skills, attention to detail, and a genuine passion for helping people create memorable travel experiences. The tourism industry offers numerous career opportunities for those who are dedicated to providing quality service and contributing to this vibrant sector.

Important Reminders for Exam Preparation:
  • Understand concepts rather than just memorizing facts
  • Be able to explain the differences between similar terms (like tour operator vs travel agent)
  • Practice writing answers in a clear, structured manner
  • Remember real-world examples to illustrate your answers
  • Stay updated with current trends in the tourism industry
  • Review case studies and practical applications
  • Understand the step-by-step procedures thoroughly

"Tourism is not just about visiting places; it's about creating experiences, building connections, and contributing to economic development while preserving cultural heritage and natural resources."

Best Wishes for Your Examinations!