Assignment on

Tour & Travel Agency Business and its Marketing Strategy

Course Code:
THM 307
Course Title:
Sustainable Tourism
Program:
BTHM
Semester:
Fall
Year: 2021

Submitted To
Mahfuza Sultana Fariha
Lecturer

Department of Tourism and Hospitality Management

Submitted By West Wind

Asif Chowdhury ID: 183-43-370

Jakir Hossain ID: 183-43-369

Riaz Mahmud Ovi ID: 183-43-106

Department of Tourism & Hospitality Management

Submission Date: December 8, 2021

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Introduction:
Tourism is one of the fastest growing and single largest industries in the world. The contribution
of tourism industry in the global as well as individual perspective is really amazing. Many
countries in the world depend upon tourism as a main source of foreign exchange earnings.
Travel agents and tour operators pay a major role in boosting tourism growth across the globe.
They are today accepted as crucial component of travel and tourism. A tour and travel agency is
a private retailer or public service that provides travel and tourism-related services to the general
public on behalf of accommodation or travel suppliers to offer different kinds of travelling
packages for each destination. Travel agencies can provide outdoor
recreation activities, airlines, car rentals, cruise lines, hotels, railways, travel insurance, package
tours, insurance, guide books, VIP airport lounge access, arranging logistics for luggage and
medical items delivery for travelers upon request, public transport timetables, car rentals,
and bureau de change services. Travel agencies can also serve as general sales agents for airlines
that do not have offices in a specific region. A travel agency's main function is to act as an agent,
selling travel products and services on behalf of a supplier. They do not keep inventory in-hand
unless they have pre-booked hotel rooms or cabins on a cruise ship for a group travel event such
as a wedding, honeymoon, or other group event.

History of Travel agency:

The business of travel agency has witnessed a buoyant growth in the recent years. This upbeat
sector provides enormous income and employment opportunities and offers complete travel
solutions to the new age travelers. In the beginning, the travel agency business was in a state of
experimentation and community help. The introduction of pleasure travel and continental travel
round the world by Thomas Cook and other contemporary travel agencies ushered a new horizon
in the international tourism. Travel coupled with hotel coupons, circular notes, credit cards,
advance reservation of all required services for visitors were some of the travel innovations of
those periods. Although, certain modifications have taken place today but the origin of the
concept has certain significance in the study of history of travel business in the world. The
history of professional travel agency may be traced back to 1841 when Thomas Cook organized
his first excursion tour for his own friends to attend a temperance meeting held in Leicester. To
make the journey more comfortable and relaxed, he devised a creative method of engaging a
special train hired from the British Railway to transfer his friends from Leicester to
Loughborough and back to attend a rally. A group of 570 participants were signed of at the rate
of one shilling per person for a twenty-two-mile round trip. The tour gave birth to the idea of all-
inclusive packages. Thomas Cook was so articulate and enterprising that the trip embraced a
band to play typical hams, a picnic lunch of hams as well as the afternoon tea for refreshment.
During the next three summers, Thomas Cook arranged a series of trips between Leicester,
Nottingham, Derby and Birmingham on behalf of local temperance societies and Sunday
schools. Within these limits many thousands of people experienced rail travel for the first time,
and Thomas Cook was able to assess his strength to expand the areas of operations within the

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country. That brief success gave him ample solace to think for deepening his aim and interest to
enlarge the scope of travel business in Europe. This turnaround has laid foundation of his future
travel business. He later described this period as one of 'enthusiastic philanthropy' since, beyond
the printing of posters and handbills; he had no financial interest in any of these early excursions.
It may be the grace of almighty to make the coincidence of the existence of the two giant travel
companies in the world. The opening up of the American Express, a Travel Agency Company in
USA in the year 1841 brought about a significant change in the system of banking transaction.
The company was contemporary to Thomas Cook Travel Agency and both in the initial period
operated the business in their own continents. In its early years, the American Express was
focusing on freight business and gradually penetrated into other areas of travel and financial
services. Its largest and most consistent clients were banks. The core business of the company
was revolving around the supply and delivery of small parcels like stock certificates, notes,
currency and other financial instruments to the banks across the USA. The company was giving
considerable priority to small parcels services rather than transporting larger freight. Over the
periods, the company shifted to other financial and travel solutions. One of the early travel
agencies is Cox & Kings, which has a special distinction of having the longest established travel
company in the world. The company was drafted for making travel arrangements for the
regiment in India. The company did not have diversified travel business as Thomas Cook used to
operate in the beginning period. The notable history of the year of establishment of Cox and
Kings started in 1758 when it was appointed as general agents to the regiment of Foot Guards in
India under the command of Lord Ligonier. Cox & Kings is the longest established travel
company in the world. By 1878, they were agents for most British regiments posted overseas,
including the Royal Cavalry, Artillery and Infantry, as well as the Royal Wagon Train and the
Household Brigade. The first German Travel agencies in the line of modern travel agencies were
known as immigration agencies. These agencies were engaged in booking ship’s passages and
sometimes group journeys from a collection point to the point of embarkation. The oldest of such
agencies was Reiseburo Rominger in Stuttgart in 1842. This agency subsequently extended its
activities to the whole range of travel services in Europe. To make traveling simple for the
individual, the concept of tickets for means of transport were introduced and issued by these
larger agencies in Europe.

At present, travel agents depend on two categories of travelers for their revenue. A good number
of corporate business travelers still rely on partner agencies for their tickets. In the consumer
segment, holiday packages and custom itinerary planning services have been taking off with an
increase in international holidaying. The drop-in commissions is mostly made up for by the
corresponding rise in the scale and value of such bookings. This is however not a long-term fix.
A number of startups online itinerary planning services are already making a mark and a number
of OTAs today offer holiday packages on their websites. The travel agency industry is already in
consolidation mode with larger players constantly acquiring smaller and niche TAs to increase
market share. The future of the travel agent depends on innovation.

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Category of Travel Agency:
Travel agencies are basically categorized into two types: Retail Travel Agency and Wholesale
Travel Agency.

Retail Travel Agency: Retail travel agency sells tourists products directly to the public on the
behalf of the products suppliers and in return gets commissions. Some package tour is sold in
two ways; on a commission basis and mark up the price.

Wholesale Travel Agency: A Wholesale travel agency may be defined as an organization or a

company which assembles land arrangements from destination travel operators and combines
them with transportation to form a package with a view to suit the tastes of a specific tourist
segment.

Travel agency features:

There are some characteristics or features that a successful travel agency may perform, the
characteristic are described below.

1. Knowledge: When travelers choose to use a travel agent instead of booking a trip
themselves, they are looking for expertise. Turn yourself into an information sponge and
soak up everything there is to know about airlines, airports, destinations, dining, and
accommodations. Read travel articles and publications to stay current. Don’t be afraid to
ask your suppliers questions about the products you are buying.

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2. Professionalism: Set high expectations of professionalism for yourself and your
employees. Check the spelling on your emails and quotes. Put efficient processes in place
for making and managing bookings rather than just winging it as you go. Consider
implementing or following a personal dress code to help you feel at the top of your game
even if you work from home.

3. Enthusiasm: Enthusiasm is contagious. Stay excited about what you sell and your clients
will catch on. Be that crazy person that loves Mondays. Keep your standards high and
your goals ahead of you. Make sure to save plenty of time in your year for your own
travels. This will keep you excited and passionate about what you do.

4. People skill: Are you able to pick up on subtle communication cues, can you figure out
what a client really wants when they’re having a hard time expressing it clearly. Do you
know how and when to close the sale, some of these things come naturally, but much of it
is learned simply by paying attention. Become a student of human nature even when you
are not on the job and you will start to develop a keen ability to read people.

5. Integrity: Be honest and upfront about fares, rules and regulations. Don’t try to sell
something you don’t think your travelers would love. Take the high road. Referrals and
recommendations are your best form of advertising, but they simply won’t happen if you
don’t maintain the highest standards of integrity.

6. Resourcefulness: A great travel agent has the ability to think on their feet and adapt to
new situations. Whether it’s a forced a schedule change, an unusual request, or a missed
connection, quick-thinking is essential. Learn to stay calm and navigate emergencies like
a pro. Figure out what resources you have at your disposal and make it happen. Your
clients will think you are a miracle worker.

7. Empathy: Even when you do all the right things in the booking process, travel
arrangements can often go awry. Airlines are delayed, bags get lost, and travelers can get
sick. Just because an incident is not your fault, doesn’t mean you show no compassion.
Be your client’s advocate whenever you can. Use your experience to take up their cause
with airlines and travel insurance underwriters. If there is truly nothing you can do, offer
your best suggestions and your genuine empathy. Be a listening ear and make them
feel heard and understood.

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Types of travel agency on the basis of Functions in Bangladesh:

From the work point, there are several types of travel agency in our country. They are different
by there origin, the types that are in operation in Bangladesh are given bellow.

1. IATA Travel Agency: IATA accreditation is a seal of approval recognized worldwide,

they generally issue tickets, reissue tickets and also resell them. They are committed to
working with all travel agencies to improve customer service and choice.

2. Tour Packaging Agency: A tour packaging agency generally sell tour in a combine
package. They usually operate inbound and outbound tours.

3. Students Overseas Agency: Student travel agencies provide International Student

Identification Cards (ISIC) which offer discounts and specials for student travelers.
Travel agents help students find opportunities and special rates for future travel. Student
travel agencies specialize in travel opportunities and discounts for student travelers.\

4. Travel Consultant Agency: Travel consultants’ agency have emerged to serve the need
of those seeking experiential travel. While online sites now dominate the market for air
ticket and hotel bundles, consultants offer a personal touch. They are advocates who
create a conversation, map logistics, and offer authentic experiences for their clients.
Consultants often work directly with Destination Management Companies abroad in the
respective countries.

5. Hajj/Omra Travel Agency: These agencies often include a knowledgeable and

experienced spiritual guide or scholar as part of the package, the role of whom is to act as
a point of reference for pilgrims during the Hajj. They combine a total package and sell
them to the potential buyers.

6. Recruiting Agency: Thy are known as employment agencies, recruitment companies act
as the go-between for employers and jobseekers. They work on behalf of employers to
find suitable candidates to fill their vacancies.

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Travel Agency Linkages:

Today, when the world hasn’t become any bigger, the number of people who travel around has
certainly gone up several hundred thousand times. This increase in the number of people leaving
their place of stay and visiting another place has resulted in the expansion of travel agencies and
their linkages with the principal suppliers. Linking is an approach of doing things together. It is a
means of combining generic talents and resources to produce best products or delivery of quality
services. A tour operator wishes to establish business link with hotels, airlines, railways,
transport operators, etc. for optimizing resources. Linkages is essentially important in travel and
tour operation business as each provider of service cannot provide complete services on its own.
Thus, linkages are common business practices in tourism business. A tour operator maintains
integration with another tour operator in another city for use of common resources.

A chart regarding travel agency linkages is given bellow:

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World Tourism and Bangladesh:

Tourism is the fastest growing and single largest industry in the world. Tourism as a multi-faced
industry is playing pivotal role in the global as well as in the individual economic perspective.
Bangladesh is trying from the inception of this industry to attracting more tourists to its
destinations and to earn more foreign currency from this sector. The statistics on this sector
shows that both the arrivals and earnings from tourism in Bangladesh have increased over the
past. Statistically it may reflect an impressive profile but in a true sense the picture is somewhat
different. In terms of global increasing trend in both the number of tourist arrivals and the
earnings from tourism, the same in Bangladesh is very insignificant. Even in consideration of the
positions of the neighboring countries, Bangladesh is far behind in this respect. Though tourism
industry and its market have grown phenomenally worldwide, the industry and its market have
not grown in Bangladesh. Lack of sufficient promotion is one of the major reasons not for
developing the industry in Bangladesh up to the mark. Because, potential tourists need to know
properly about the attractions, services, facilities, etc. at the destinations and accessibility to there
through various forms of promotional measures. Besides, the expansion of tourism business and
the increased competition among destination countries throughout the world have necessitated
developing appropriate promotional approaches by the tourism firms worldwide.

As Bangladesh tourism appears to have suffered mostly due to inadequate and ineffective
promotional activities and promotional activities play an important role in the marketing of the
same, it is necessary to study how promotion can play the role in tourism industry in Bangladesh.
Bangladesh Parjatan Corporation (BPC).
In the face of stiff competition among the destination countries, effective promotional measures
are essential for the development of the industry. Bangladesh Parjatan Corporation or
Bangladesh tourism could not meet this requirement due to lack of needed fund along with the
absence of decision-makers’ foresightedness. As a result, this sector and its market have failed to
grow properly not merely because it lacks enough attractions and facilities. But time has not yet
past over. Still there are lots of scopes and opportunities if Bangladesh attempts to highlight it as
a tourist destination to the potential tourists properly through an effective promotional measure
and can take some initiatives to develop some infrastructural facilities, the country would be able
to earn many times higher than the present by attracting more tourists within a short time.
Considering the time factor and limitation of other resources, only the promotional aspects has
been considered for the present study and it will be attempted to examine the existing
promotional approaches of both the public and private sector tour operators, identify the
problems and the limitations of their promotional activities, and prescribe necessary policy
measures for effective promotional actions for the industry in Bangladesh.

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Marketing strategy:
A marketing strategy is a written plan that includes marketing topics like product development,
promotion, distribution and pricing approach that identifies the company's marketing goals and
explains how will achieve those goals. It can also help to identify strengths and weaknesses of
the company and competitors to know where to focus the marketing tactics.
Travel agency is a private retailer that provides travel and tourism related services to the public
on behalf of suppliers such as airlines, car rentals, cruise lines, hotels, and package tours. In
addition to dealing with ordinary tourist most travel agencies have a separate department devoted
to making travel arrangements for business travelers and some travel agencies specialize in
commercial and business travel only. There are also travel agencies that serve as general sales
agents for foreign travel companies, allowing them to have offices in countries other than where
their headquarters are located.
A travel agency is a commercial enterprise where traveler can secure information and expertise,
make arrangements to travel by air, sea or land to any point in the world. It is basically a retailer
as it conducts business transactions directly with individual supplier as agent, and with each
individual traveler.

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Conceptual Framework:
This conceptual framework explain how marketing strategies and business performance will be
identified through giving of survey questionnaires to the (30) thirty respondents of selected travel
agencies in Bangladesh. Using descriptive research and survey method, managers will answer
questions stated in questionnaire. Questionnaire will focus in factors, such as business
characteristics, marketing strategy and business performance of travel agencies. The paradigm
that guided the conduct study is presented below. Illustrate the relationship between the
Marketing Strategies and Business Performance of Travel Agencies.
The input in the study is the marketing strategy used in travel agencies, Product, Price, Place, and
Promotion. The output in the study is the business performance of travel agencies, Number of
Clients (Monthly), Number of Clients Travelled (Monthly) and Sales Income. This study will
determine if there is a relationship between marketing strategies and business performance of
travel agencies.

INPUT OUTPUT

Marketing PROCESS
Strategies Business
Performance
Survey
 Product Questionnaire a. Number of
clients (Monthly)
 Price b. Number of
Clients Travelled
(Monthly)
 Place c. Sales Income

 Promotion

The paradigm showing the relationship between the marketing strategies and business
performance of travel agencies in Bangladesh.

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Hypothesis of the Study:
There is no significant relationship between the marketing strategy and business performance of
the travel agencies in Bangladesh.

Marketing Mix
The 4p’s of the marketing mix that a marketing manager can manage to achieve company’s
target. Changes happening on these parameters are subject to changes in companies inside or
outside environment (Kotler & Armstrong 2002).
The marketing mix is like a recipe of a products strategic position in the market. So, to achieve
success in a company’s strategic approach the 4p’s of marketing are the main tools (Culliton,
2000).
In the Figure below, I have indicated the 4p’s of the marketing mix:

PRODUCT PRICE

PROMOTION PLACE

Marketing mix (Kotler &Armstrong, 2002)

Product:
A product is a good or service or the combination of both which is made to satisfy a group of
people in a market where people can give a value in exchange of any specific goods and services.
Commercially, a product means something that belongs to a company or a person who is
produced a delivered for a certain market with a certain process and in exchange of a value is
called product. This can be tangible or intangible.
Considering customer’s needs marketers must deliver a descriptive package quoting what a
customer really buys when they purchase a product. This kind of understandings means that
every product has value in its pricing which provides benefits to satisfy customer needs and
wants. Only this method ensures that marketers formulate strategies. Today buyers expect to
receive products or services with a greater value and with a reasonable price. Marketers call this
the value package.
Below are some possible attributes of a package trip that a customer might consider in time
purchasing the services:

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  Crystal clear trip itinerary
 Choices from a variety of destination
 Choices of accommodation and transportation
 Reasonable price image
 Simple process of purchasing
 Credit card protection
 Comfortable and safe
 Insurance services, etc.

Though package trips from a travel agency is work in involving different media such as Airline
Company, hotel and others. In that case feedback from the customer goes to the travel agency as
well as service provider too.

Price:

In this process of them marketing mix, pricing comes after preparing the product. In pricing
managers decide the value of a product according to its cost and profit margin. The discussion
below is about the objective of product pricing and then elaborate on some major segments and
tools that companies follow in pricing their products.
Objectives of pricing
Usually a company makes pricing to meet business objectives but it also includes satisfying other
objects related to building up a product. Pricing of a product differs in different markets. Some
companies have a monopolized market with their unique product and some have only the right to
do business on a specific market. Pricing also depends on corporate image, social value, market
condition and geographical condition or situation.

Place:

Place refers to the channel of product distribution. It may be from factory to outlet or from outlet
to final customer or from factory to customer. Selecting an appropriate distribution channel is a
strategic process. This determines both the amount and cost of a product and market demand.
Normally marketers are determined to keep the enough flow of their product.
Below there are three strategies: intensive, exclusive and selective distribution that provide
different forms of products distribution channels.

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Intensive distribution: Intensive distribution means distributing products through as many
different channels as possible. These may vary from product to product. Retail products like milk
and sugar can enter into the market through different channel of members.
Exclusive distribution: Here the manufacturer has the right to distribute its products to a specific
channel. This kind of distribution only applies in cost products such as distributing Audi cars. An
airline product also belongs to this category as only the manufacturers have the right to select its
distribution channels.
Selective distribution: This kind of distribution channels only specified on one kind of product.
Such as furniture or electronic items displayed in a furniture shop or electronic shops
respectively.
Moreover, internet based online shops are becoming very popular nowadays. Customers feel
very comfortable to order or purchase a product online shop rather than going to supermarket. As
online shops are a place where customers from all over the world can visit and buy products and
get information about any product. It is getting popular for all types of products now a day. In
addition to this, it has low costs and set-up fees as well as low barriers to enter into the market.
The medium payment through credit cards or from direct bank accounts is also raising the
demand of internet-based shops.

Competitor analysis:
In this ever-changing business environment competitor analysis in needed in all levels of
business. Some firms may find it difficult to cope up with their competitor’s strategy and may
form their own strategy targeting a certain group of customers. On the other hand, some may
think this is only the way that a firm may bring business if they can complete with their
competitors given prices in the market. However, a company has two strategies to analyze
whenever they formulate a competitor’s approach: (a) Who are the competitors and (b) What are
their motives?
To find out who are the competitors of one’s business you have to look at the market and the
similarities between products or services. Here they can additionally look for the same
manufacturer, service provider, what are their value prices and the customers’ response to their
products etc.
From customers’ loyalty and comments on another company’s product, a company can sort out
the reason why their competitors are providing this or that service. Also, a company can identify
what they want their pricing and how they can achieve their breakeven point, along with what
are the future changes coming from any specific advertisement.
However, knowledge of competitors’ resources and capabilities is necessary to perform
competitively. Before starting a big change in acquiring an additional resource there must be

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different modifications and advertisements in operation. From analyzing the competitors SWOT,
we know the competitor’s capabilities.
Finally, to analyze competitors’ future target and strategy, it is easier to look on what are the
upcoming new technologies and new product or services in competitor’s product line is going to
add. In addition with that, a company itself should be stable with enough funds and financial
stability, necessary resources so that they can compete with competitor’s market strategy.

Promotion:

Promotion is a way to advertise, to attract and finally to sell a product to customers. It is a part of
the communication mix: the total message any company sends to its future customer concerning
any product development or to launch any new product or to have some seasonal sale. For
customers, this is nice to have their expected product with a lower price but it is when prices so
come down and the amounts of products rise or come with some extra features.
Promotion, the final variable of the marketing mix, is the coordination of marketing
communication efforts to influence the attitudes or behavior of the consumers. Promotion is
employed as a means of creating awareness making your consumers learn of your products and
the benefits that go along with it. It is virtually everything an organization says and does. The
functions of promotion include the following, namely: Informs consumers about new goods and
where they can purchase them. Reminds consumers to continue using certain products. Persuades
consumers to choose one product over others. Builds relationships with customers.
These functions are employed by marketers in such a manner that the consumers will always
remember to buy their products and that the marketers are able to build and maintain brand
image and goodwill as well. It is therefore important for marketers to know what exactly to
promote and why. If relayed improperly, the communication that the marketer sends to the
consumers may generate a negative response and would shy them away from buying your
products instead. Relationship marketing is also needed in strengthening your promotion; a good
relationship with your customers can result to a long- standing patronage of your products.

Promotional Mix:

Within the marketing mix, marketing utilizes various promotional elements for the purpose of
effectively providing information to consumers about their products, increase the demand,
differentiate the products, accentuate the products value and stabilize sales. A marketer achieves
these objectives by blending the personal and non-personal selling activities in the form of a
promotional mix. The promotional mix focuses on one more than one element and works in

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harmony with the overall marketing mix. The elements of the promotional mix include the
following, namely: Personal selling a direct interaction between a company representative and a
customer either in person, by phone or even a computer link. Advertising a paid non-personal
communication from an identified sponsor that can establish and reinforce a distinctive brand
identity and inform or persuade members of a particular audience using the mass media. Sales
promotion programs that marketers design to build interest in or encourage purchase of a product
during a specified period of time. It is also an action-focused marketing event whose purpose is
to have a direct impact on the behavior of a firm’s customer. Travel industry develops consumer
sales promotion as part of their objectives of attracting the final consumers. The types of
consumer promotions that are generally employed by the said firms are as follows: Sampling
consumers are offered regular or trial sizes of the product, either free or at nominal price. Price
deals consumers are given discounts from the products regular price. Coupons offered as cents-
off or added value incentives for purchasing specific products. Direct marketing refers to any
direct communication to a consumer that is designed to generate a response in the form of an
order, a request further information’s, and or a visit to a store or other place of business for
purchase a product. Publicity and public relations portray an organization and its products
positively by influencing the perceptions of various publics. Guerilla Marketing involves
ambushing consumers with promotional content in places they are not expected to encounter the
kind of activity.

Conclusion: Bangladesh is a country of natural beauty, hilly mountains, longest beach,

favorable climate, six seasons which are the key factors to develop eco-tourism, sustainable
tourism and rural tourism. Bangladesh has many archeological and historical sites too. And the
hospitality of people and local culture, life style is a unique selling point. Tourism is a growing
industry in Bangladesh. It’s an imaging sector in Bangladesh. It is a growing sector with an
increasing contribution in GDP. So, the travel agencies have huge potentiality to operate their
business in full phase. Some development and proper guidance and strategy planning can make
the sector sustainable. Without maintaining proper growth in the sector, it may be lag behind in
making its future contribution in national economy. From all the discussion, it is found that the
contribution is already significant. But it can contribute further by creating more employment,
generating demand for accommodations and food, improving transportation, and as whole
branding Bangladesh to the world. This is a big sub-sector of the national economy. There is a
good research scope on country branding and the tourism.

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