UNIT 3

ECONOMICALLY SUCCESS OF TRAVEL AND TOURISM INDUSTRY

Business Activities that generate income

O Main business Sectors of Travel and Tourism

O Past and Present

O Niche Players and New Forms of Income O Make money by saving money O Other related Business Sectors O Be Selective

Main Business Sectors of Travel and Tourism

O Top business sectors : Airlines, Hotels and Tour

Wholesalers O Second Level : Car Rental Companies, Cruises, Railways and other means of transportation O Third level : Souvenir shops, restaurants, museums, art galleries and other such amenities and attractions

Past and Present

PAST O Diversified into selling tours packaged by wholesalers. O Due to competition of wholesalers and dropping of profit margins, travel agents reduced their dependence on income from leisure travel. Per ticket > leisure travel PRESENT O Travel agents earn commissions from selling tours, cruises, travel insurance and MICE business.

Niche Players and New Forms of Income

Make money by saving money

O Saving costs is very important especially for large

multinational corporations. O Medium-sized O Large companies O Travel and entertainment (T&E) cost

Three highest categories of expense

Other related Business Sectors

O Financial services are included like charge cards and

banking, insurance, telecommunications, the media, energy and agriculture.

O This related business sectors also become major business

activities and sources of income for the travel agency community.

Be Selective
O Agents have to be selective about what they sell,

depending on office space availability as well as own personal expertise, knowledge, experience, contacts, client base, and preferences.
O The key is to sell what you know best.

5As Essential to a Successful Destination

EXERCISE 3 Identify the key players of tourism and give examples.