TOURISM MANAGEMENT

2nd Semester
A.Y. 2021-2022

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: Midterm
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

The role of travel agents

A travel agent: 'A travel agent or travel agency is a shop or office where you can go to arrange
a holiday or journey.' (Collins English Dictionary)

'A business that attends to the details of transportation, itinerary, and accommodation for
travelers.'

Essentially, the work of a travel agent comes under two categories:

 Front office procedures (dealing with customers): sales, advice, itinerary planning
 Back office procedures (not dealing directly with customers): administration

Racking. This is where 'agents emphasize/display certain businesses' products (perhaps their
own company's in the case of integrated business; e.g. Thomas Cook, to favor them as they
promise higher commissions'.

Directional selling. This is 'where an agent tries to sell a product from a vertically integrated
tour operator, i.e. their own company.

One area where the travel agent may add value over Internet purchasing is by
developing an understanding of a customer's holiday aspirations and astutely matching them
with the products that best meet their desires but also their budget. This process is too
important to be left to chance and is summarized in the flow chart that follows.

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The travel agent – client purchase process

Integration

In Tourism: Principles and Practice Cooper et al define integration as the 'formal linking
arrangements between one organization and another'.

Dale (2005) categories integration into two types: vertical integration and horizontal integration.
What this means will be clearer if we look at the various elements that form the chain of
distribution.

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Vertical integration

Vertical integration occurs at wherever in the chain of distribution (suppliers, wholesalers,

retailers) 'where companies merge or one takes over the other at different levels in the chain of
distribution'.

Where it happens will determine whether it is vertical backward integration or vertical forward
integration. These terms are explained in the diagram that follows.

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Horizontal integration

Horizontal integration is different; it always occurs at the same stage of the chain of
distribution.

Dale defines horizontal integration as: 'where two competing companies offering competing
products merge or one takes over the other'.

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6
INTERNAL PROCEDURES AND ACTIVITIES FOR A SUCCESSFUL TRAVEL AGENCY

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Types of travel agency

The main role of a travel agent is 'to provide a convenient location for the purchase of
travel' (Holloway, 2006:532). This involves performing a great number of tasks: from acting as
booking agents, to providing information and advice for customers on all aspects of travel and
tourism. Later we will see just how complex an operation this is.

Leisure travel agencies This type of travel agency will provides products and
services for leisure travelers. They generally deal with products and services such as package
holidays, and short breaks, such as city breaks.

Business travel agencies These are more specialized agencies for the business
travel market. In particular, they deal with travel for Meetings, Incentives, Conferences and
Exhibitions (MICE Tourism). Agents deal directly with large companies securing contracts to
provide travel arrangements for all their business travel requirements.

Specialized travel agencies This type of travel agencies may offer less products
and services than leisure travel agencies, but the staff may be specialists in a particular
geographical region. Specialist travel agencies may deal with Special Interest Tourism (SIT)
products and services such as: medical tourism, golf holidays and painting holidays.

Procedures of travel agents

As established in the previous chapter travel agents' tasks fall into front office and back
office activities. Front office procedures involve customer-facing activities, whereas back office
procedures involve administrative duties. Some procedures need to be undertaken every day;
others happen at the fixed time intervals needed to ensure the agency maintains control over
its operations and has the money and resources it needs available to stay in business.

The duties and tasks of a travel agent are wide-ranging and we can expand the list of typical
tasks;
 Advising potential travelers
 Making reservations
 Planning itineraries: including multi-stopovers
 Issuing documentation: travel tickets and vouchers
 Communication with customers and travel principals via telephone, e-mail, and letter
 Maintaining files on reservations
 Maintaining and displaying travel brochures
 Intervening between principals regarding customer complaints
 Maintaining and controlling company's revenue and expenditure and keeping accounts
 Invoicing clients
 Preparing bank reconciliations
 Preparing and controlling budgets
 Estimating the cash-flow of the company
 Controlling expenditure
Discussion Question:

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 1. What is integration?
2. What is vertical integration?
3. What is horizontal integration?

References:

A. Books

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