TOURISM MANAGEMENT

2nd Semester
A.Y. 2020-2021

Course: Tour and Travel Management

Course Code: TOUMGT
Course Description:
The course studies the role of the Travel Agency and Tour Operator in the Tourism
Industry, leading to a better understanding of the trade and its internal workings, the role of
each component in offering cost effective and goo “value for money” products for its clients. It
also includes topics such as tour products and its efficient development and marketing as well
as a travel agency and tour operator’s organization and functions. In addition to lecture classes,
the students are exposed to the skills required in the travel trade, such as interpersonal and
communication skills, terminologies, documentation, procedures and system used.

Coverage: Prelim / Week 2

Topic/s:
 Introduction to Travel Agency Operations

Learning Objectives:
1. Investigate the historical development of travel agencies;
2. Identify the chain of distribution of the tourism industry;
3. Investigate the role and nature of intermediaries

To do list/Activities:
1. Brief sharing
2. Readings
a. Introduction to travel agency operations
3. Comply the set of activity
4. Answer Formative Assessment

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Topic 1: Introduction to Travel Agency Operations

Lecture Discussion

Nature and role of intermediaries

An intermediary (or middleman) can be defined as follows: 'a firm or person (such as a broker
or consultant) who acts as a mediator on a link between parties to a business deal, investment
decision, negotiation, etc'.

Essentially, an intermediary act as a middleman between the supplier (airline, hotel, service
provider or tour operator) and the consumer (the tourist).

For the travel and tourism industry, traditionally this role is performed by the travel agent,
'providing an outlet for the actual sales of tours, tickets and travel services, such as travel
insurance or foreign exchange, to the public'.

Suppliers pass on the products or services to the travel agents, who then sell these products on
to consumers, in return for a fee for each product they sell. This is called a commission, which
is normally a pre-agreed percentage 'ranging from 7 per cent (%) to 40 per cent' (Syratt,
2003:168), depending on the relationship between the supplier and the travel agent and the
volumes of products sold.

Disintermediation

In recent years, more suppliers sell more products direct to consumers, bypassing the
intermediary in the supply chain. This is 'disintermediation' in practice.

Types of travel agencies

As intermediaries, travel agencies provide consumers, tourists and travelers, with tourism- and
traveler elated products and services.

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In recent years, there have been changes to the structure of the retail travel industry with the
growth in options available to the consumer wanting to purchase travel products. The options
are summarized in the diagram that follows, with details of how each serves the market in the
table beneath.

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 Specialist Specialize in particular types of holidays (Special Interest Tourism – SIT) ƒ
Generally independents or maniples Example: STA Travel which specializes in
travel for students and young people (www.STATravel.co.uk)

Discussion Question:

1. What impact do you think 'disintermediation' has on travel agencies?

2. What do you think are the advantages for consumers of 'disintermediation'?
3. What advantages do you think 'disintermediation' has for suppliers?

References:

A. Books

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 BPP Learning Media “CTH Travel Agency and Tour Guiding Operations”, Diploma in
Tourism Management by BPP Learning Media, 2011

R. Singh “Handbook of Tour and Travel Management”, Kanishka Publication, 2018

B. Internet Sources

Travel Agency and Tour Operations Business: https://bit.ly/3o71h8v

Tourism and Travel Management: https://bit.ly/386hxAT