Aksum polytechnic college

AND TIGRAY ART COLLEGE

TOURISM SERVICE
LEVEL II
MODULETITLE- DEVELOP AND UPDATE TOURISM INDUSTRY KNOWLEDGE

PREPARED BY: YOHANNES Y.

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 Introduction
Welcome to the module “DEVELOP AND UPDATE TOURISM INDUSTRY KNOWLEDGE”.
This learner’s guide was prepared to help you achieve the required competence in “TOURISIM SERVICE
L-II ”. This will be the source of information for you to acquire knowledge and skills in this particular
occupation with minimum supervision or help from your trainer

How to Use this TTLM

o Read through the Learning Guide carefully. It is divided into sections that cover all the skills
and knowledge that you need.
o Read Information Sheets and complete the Self-Check at the end of each section to check
your progress
o Read and make sure to Practice the activities in the Operation Sheets. Ask your trainer to
show you the correct way to do things or talk to more experienced person for guidance.
o When you are ready, ask your trainer for institutional assessment and provide you with
feedback from your performance.

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 Instruction Sheet Learning Guide

This learning guide is developed to provide you the necessary information regarding the following content
coverage and topics –
 Source and apply general information on the structure and operation of the tourism industry
 Source and apply information on legal and ethical issues that impact on the tourism industry
 Source and apply information on tourism industry technology
 Update personal and organizational knowledge of the tourism industry

This guide will also assist you to attain the learning outcome stated in the cover page. Specifically, upon
completion of this Learning Guide, you will be able to –

 Source and apply general information on the structure and operation of the tourism industry
 Source and apply information on legal and ethical issues that impact on the tourism industry
 Source and apply information on tourism industry technology
 Update personal and organizational knowledge of the tourism industry

Learning Activities
1. Read the specific objectives of this Learning Guide.
2. Read the information written in the “Information Sheet”
3. Accomplish the “Self-check”.
4. If you earned a satisfactory evaluation proceed to the next “Information Sheet ”. However, if your
rating is unsatisfactory, see your teacher for further instructions or go back to Learning Activity.
5. Submit your accomplished Self-check . This will form part of your training portfolio.
6. Read and Practice “Operation Sheets”.
7. If you think you are ready proceed to “Job Sheet”.
8. Request you teacher to observe your demonstration of the exercises and give you feedback.

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  Source and apply general information on the
Information sheet-1
structure and operation of the tourism industry

COMPETENCY Title: Developing and Updating Tourism Industry Knowledge

LO 1: Source and apply general information on the structure and operation of the tourism industry.

1.1 sources of information in the operation of tourism industry enhance the quality of work performance

MEANING OF TOURISM and CONCEPTS OF TOURISM

Mathieson and Wall in 1982 defined tourism as: “ Tourism is the temporary movement to destinations outside the normal home
and work place, the activities undertaken during the stay and facilities created to cater to the needs of the tourist.”

Mc Intosh et. all (1995), “ The sum of the phenomena and relationship arising from the interaction of tourists, business
suppliers, host governments and host communities in the process of attracting and hosting these tourists and other visitors.”

Jafari (1997), “tourism is a study of man away from his usual habitat, of the industry which responds to his need and of the
impacts that both he and the industry have on the host socio cultural, economic and physical environment.”

According to World Tourism Organization (WTO) and approved by UN in 1993; “ Tourism is the activity of persons traveling to
and staying in places outside their usual environment for more than 24 hours and less than a year for leisure, business or any
other purpose.”

Forms of tourism: In relation to a given country (say Ethiopia), the following forms of tourism can be distinguished:
 Domestic Tourism: It involves residents of Ethiopia traveling only within their country. E.g. From Gondar to Bahar Dar,
or from Addis Ababa to Mekelle.
 Inbound Tourism: It involves non residents (e.g. Indians, Italians, Germans, British) traveling in Ethiopia.
 Outbound Tourism: It involves Ethiopian (residents) traveling to another country.
 International Tourism: It consists of inbound tourism and outbound tourism in Ethiopia.
 National Tourism: It consists of domestic and outbound tourism in Ethiopia.
 Internal Tourism: It comprises of domestic and inbound tourism in Ethiopia.

Definition of traveler, visitor and Tourist

Traveler – Any person on a trip between two or more countries or between

two or more localities with in his/her country.
Visitor - person who travels to a country other than that in which he has his usual residence but outside to the usual
environment for a period not exceeding twelve months and whose main purpose of visit is other than the exercise
of an activity remunerated from within the place visited.

Visitors are classified in to two

(a) Same day visitor /excursionist- Do not spend at least one night.
(b) Tourist – Stay for at least one night in the place or country visited.

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International Visitor: An international visitor is anyone who visits a country that is not his usual place of residence. It includes
(overnight visitor) tourist and (same day visitor) excursionist. The people on holiday, visiting friends and relatives (VFR), business
trip, conference, attendance, pilgrimage, educational, for international events – all falls under this definition.
The only people who do not come in this preview are people who get some salary or payments in the country visited,
commuters, immigrants, refugees, military men and diplomats.

Excursionist
Temporary visits staying less than 24 hours in the country visited.

Domestic Tourist
Any person travels with in the country where he resides to a place other than his usual place of residence for at least 24 hours
or one night and the purpose of his journey can be classified under one of the heading.
(a) Leisure (recreation, health, study, religion and sports)
(b) Business, family, mission and meeting.

Tourism - The basic components: Tourism does not exist in isolation. It has the following basic components:

 Accessibility or transportation: It is a means by which a tourist can reach the areas where attractions are located.
Modes of transportation like an aeroplane, a motorcar, a coach, a ship or train enables a person to reach his place.
 Accommodation: While away from home, the tourist needs a place to eat and sleep. Therefore accommodation is
required. It can range from homes of friends and relatives, to campgrounds and hotels of international standards.
 Locale: Locale or locality is the geographical space where attractions and other facilities are located. The attractions
could be areas of archeological interest (Hadar), historical building ( The Royal enclosure in Gondar, Emp. Yohannes’s
Palace and Emp.Haile sillasie’s palace), monuments (like obelisks at Aksum), mountains ( Ras Dashen peak in Semien
mountain, 4620 meters), River( Nile and Omo), Lake ( Tana), Waterfall( Blue Nile falls), monasteries( Debre-Damo
monastery, Tigray), Flora ( Blue and white lotus) and Fauna (giraffe, elephant, lion, cheetah), National parks like
(Awash, Gambella, Mago,Omo, Simien mountain, Lake abiata- Shala), costumes, art and music( massinko, negarit,
atamo), food ( injera, doro wat, Tej,wine), festivals( timket, meskel, ephiphany).

Tourism - The basic Component : In addition to the basic components, there are certain additional elements, which are also
fundamental attraction of tourism. These includes;
 Pleasing Weather: For holidaying good and pleasing weather like sunshine, cool breeze, moderate temperature.
 Scenic Attractions: Scenery or landscapes consisting of mountains, lakes, waterfalls, forests, etc. are strong forces for
attracting people.
 Historical or cultural factors: Many countries are using their legacy of historical past to attract tourists e.g. Egypt,
France, India.
 Accessibility: The distance factors play important role in determining tourist’s choice of a destination. Flights
availability, good roads, comfortable transportation, plays a big role in tourism development.
 Amenities and facilities: These are necessary aid to tourist centers, e.g. swimming facility, boating facility, dancing and
recreation facility, fishing, trekking etc.
 Accommodation: It is very basic to any tourist destination e.g. holiday villages, camping sites, hotels and resorts, etc.
 Hospitality: It refers to general feeling of welcome, warm reception and appreciative attitude of host country nationals.
This makes visitor feel at home and helps them to enjoy their stay.

Different types of tourism: Tourism attractions determine different types of tourism.

 Pleasure Tourism: This is concerned with leisure and rest and to recover physical and mental stamina. It includes
holiday for change, to take rest, to witness folk dance, songs or to taste different cuisines.
 Cultural Tourism: This is concerned with learning habits, language and customs of the people in the foreign lands,
visiting places rich in historical monuments, ancient civilization or paying a visit to art galleries, Museums or to
participate in music, art, dance and festivals.
 Sporting Tourism: These are of two types 1. Visiting places to witness sports like Olympics or world cup football or

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 2. Visiting places that have specialized facilities such as winter sports, mountain
climbing, hunting, fishing etc.
 Business Tourism: All tours undertaken by businessmen, industrialist or professionals to a place of their interest for
selling, buying, or taking orders etc. of the products related to business.
 Conference Tourism: Traveling to participate in trade fair, conference, meetings and exhibitions.
 Social Tourism: It is practices by the low-income group and is rendered possible by the help of third party or
governments or association by means of subsidies, holiday with pay and other measures.
 Water based tourism: This type of tourism is based on water transportation e.g. cruise tourism, yachting tourism. River
tourism.
 Nature based tourism: This type of tourism is based on nature related activities, e.g. ecotourism. Wildlife tourism.
 Adventure Tourism: Here risk, danger and spirit of adventure is involved e.g. White water river rafting, mountain biking,
Para sailing etc.

The 5 A's Essential to a Successful Destination

Destinations can only succeed in attracting visitors if they have a choice of ways to get there, places to stay, and things to do.
Successful destinations meet five essential requirements. Destinations that do not meet these essential requirements must
develop them, often with financial help from the local government or private companies. Destinations that attract visitors create
sales and revenue opportunities for travel agents.
Mix and Balance
There must be a good mix and balance between the basic 5 A's that are essential to a successful destination. These are
Accommodation, Accessibility, Activities, Amenities, and Attractions. People like to do different things when they travel. They
come from different cultures, have different likes and dislikes, and of course have different budgets. Some like active holidays;
others just want to sit on a hotel balcony enjoying a good view or reading a book. Some may want to visit famous sites. Yet
others want to shop. There has to be a good mix and balance between the basic 5 A's that are essential to a successful
destination. These are Accommodation, Accessibility, Activities, Amenities, and Attractions.
A destination has to cater in some shape or form to all these needs. Here are some of the major aspects of each of these
essential 5 A's:
Accommodation
The places people stay. Traditionally a hotel or inn, lodging types now also include cruise ship cabins, camper-vans, accredited
bed & breakfast private homes, hostels, and others. Recent trends include the emergence of focused lifestyle brand hotels:
Hotel chains that once offered a single name and similar-type buildings at each location now offer a range of brands, building
types and services to suit their clients' varied lifestyles. Chains of small city-centre boutique hotels, or beach resorts with family
oriented facilities constructed in the original design, are both examples of this trend. Long established in many markets, alcohol-
free hotels are attracting investment from high-profile accommodation chains, which seek to reflect the values of many current
and future customers: This development focuses on a permanent value rather than a mere lifestyle trend. A new
accommodation product now combines privately owned condominium apartments with rental hotel rooms in one single
building. This is sometimes called hybrid lodging.
Accessibility

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No destination can function well unless there is a means of getting there, such as an airline, bus service, railway line or port.
Lack of adequate accessibility is frequently cited as one of the major obstacles to tourism development and investment in a
destination.
Activities
Having reached the destination, what do you then do? Enjoy a game of golf? Go scuba-diving? Take a jungle trek? A river cruise?
Destinations are working harder than ever to widen their range of activities in order to get people to stay longer and spend
more time and money in their localities. Again, this means more competition and hence more opportunities for agents to sell
products.
Amenities
Local cuisine is often one of the top attractions of a destination. Restaurants, designer bars and shopping plazas always attract
their fair share of visitors. Having an active nightlife may add to the appeal. Travel agents who are specialists in various
destinations have to ensure that they remain constantly updated on such amenities.
Attractions
What is there to see? Some like to go to the local museums or art galleries. Others prefer the thrill of an amusement park,
appealing for families with children, one of the fastest growing holiday segments. If you are handling special events like business
meetings or conferences, you will also have to focus on the facilities offered by the various hotels or conference venues to
ensure that they are up to standard and meet your client's requirements. Destinations are working harder than ever to broaden
their range of activities in order to get people to stay longer and spend more in their localities.

Other Critical Requirements: Infrastructure and Security

It has become critically important for destinations to ensure that their infrastructure facilities are of high standard, such as
offering telecommunications services, environmental management, health and sanitation, and perhaps most critical, safety and
security. The travel industry has seen many examples of destinations losing both business and their long-term reputation
because they have failed to adequately meet these standards. For tourism to prosper, a destination must be recognized by the
travelling public as a safe and secure destination. The events happening in any nation, no matter who is responsible, will have an
impact on its tourism industry. Tourism cannot afford a medical crisis or a food crisis, a natural disaster or a political disaster,
conventional wars or acts of terrorism or crime. In a world that is interconnected through the Internet and twenty-four hour
news reporting, bad news travels quickly and everywhere. News coverage of terrorism and crime events costs tourism millions
of dollars in lost revenues. Great attention has been given to airport and airline security, but there are other areas of tourism
that are also vulnerable, including attractions such as shopping malls, sports events, parks and any place, gathering large
numbers of people. Terrorism is about creating surprises and travel and tourism leaders need to work toward protecting the
industry by expecting the unexpected. In the end, tourists choose where to visit and when to visit, and travel professionals must
be able to react to world events by promoting those destinations that offer maximum safety and security to their customers,
using creativity and innovation to reinvent what they sell, offering safer destinations. The travel industry has seen many
examples of destinations losing both business and their long-term reputation because they have failed to adequately provide
high standards of infrastructure, services and facilities.

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 Self-Check-1 Written Test

Activity 1
Read each statement and answer True or False
1. Destinations must have a good mix of products, amenities and attractions in order to attract visitors.
2. Building an airport is an automatic way of ensuring a steady flow of visitor arrivals.
3. Restaurants offering local dishes are closing because visitors only like going to eat at fast-food outlets.

1.2.1 The Role of the Travel Industry Professional in the Travel and Tourism Business

The Travel and Tourism industry offers many opportunities. Exciting destinations, products, lifestyle brands, selling one of the
most perishable (see Glossary) commodities on the planet; these are all elements that require the management and
organizational skills of well trained and enthusiastic industry professionals. Your decision to begin a career in the industry is
therefore an excellent one indeed.
An Exciting Profession
There are few professions in the world today as exciting as selling travel and tourism.
Travel and tourism is an adventure, an education, and an experience all rolled into one. It is a continuous learning experience. It
is both a science and an art—an “art” in terms of the places we sell and the richness of the cultures that we enjoy, and a
“science” in terms of managing the business side of it. If you enjoy meeting people and being in touch with lifestyles and
cultures of different, exotic parts of the world, there is no better profession to be in.
The following are six reasons why travel professionals love the travel industry.
1. It is a Pleasing business- Travel customers are generally happy. They talk about their travel plans with excitement. Travel
professionals are genuinely passionate about travel. This recipe or combination makes it pleasant for travel professionals and
travel customers to interact. The travel business is still very much one defined by personal relationships and the “human touch”
and attracts people who genuinely like to work with people. Travel agents are motivated to help customers and leave an
experience they will cherish for a lifetime.
2. It is a helpful industry- Travel professionals provide good advice and share their knowledge and experience with their
customers.
3. Resources and tools are plentiful- Travel professionals do not need to look hard to find resources to perform their job. There
are travel industry forums and associations that provide opportunities to network with other travel professionals and new
suppliers. Technology tools make it possible to sell a vast number of products and services as well as sell to customers anywhere
in the world.

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4. Incentives and discounts are available- Few other industries offer the opportunity to see the world at a discount. Travel
industry suppliers who truly support their travel agent distributors go out of their way to incentivize the agencies and agents
who sell them well.
5. Continuous learning and new education opportunities make work interesting- Although it is not possible to visit, experience
and explore every destination of the world, learning about new destinations from colleagues, suppliers and even customers
through their experiences. Travel industry suppliers and tourism offices make training accessible and easy.
6. Travel suppliers and vendors are supportive. For the most part, travel suppliers understand and appreciate that they need
agents and agencies to promote and sell their products and services. Selling travel is both a science and an art—an “art” in
terms of the places we sell and the richness of the cultures that we enjoy, and a “science” in terms of managing the business
side of it. This is not a boring, stereotypical job in which you sell the same product day after day. As this course will
demonstrate, it is a sophisticated, specialized business that requires you, tomorrow's travel industry professional, to master
everything from product knowledge to selling skills to the complexities of new technologies, to the demographics of your
customers.
The terms “Travel and Tourism industry” and “travel industry” are often used interchangeably. For purposes of clarity, whenever
possible this course uses the term “Travel and Tourism industry”. Travel, that is to say the physical transportation of a person
from one point to another, is one sector of the tourism industry. It is however, a very important sector, for without it the other
sectors would most likely not exist. For this reason, it is given its rightful place in the term “Travel and Tourism industry”.
Tourism is the activity of people travelling to, visiting and/or staying in places outside their usual environments, for leisure,
business or other purposes.
The principal sectors of tourism, each with some examples given, are as follows:
• Transportation (airlines, trains, cruise ships, road and marine)
• Accommodation (hotels, motel, inn, bungalow, lodges, guest house, etc)
• Attractions (museums, cultural sites, theatres, sports and recreation centers)
• Events and conferences (festivals, trade shows, the Olympic games)
• Food and beverage (restaurants)
• Tourism services centres (tourist information centers, tourism associations)
• Retail travel outlets (tour companies, travel agencies)

Be a Part of the World's Largest Growth Industry

Tourism is the world's fastest growing industry, experiencing many consecutive years of continuous growth. It is also the fourth
largest industry worldwide. The number of international travellers (tourists travelling outside their home country) has grown by
about 44% between 2001 and 2011 (www.unwto.org).

Year Number of International Approximate change over previous Tourist Arrivals year
2001 682 million
2002 702 million + 2.9%

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2003 691 million - 1.6% (tourism slowed down due to SARS epidemic which decreased
travel)
2004 763 million + 10.4%
2005 802 million + 5.1%
2006 847 million + 5.6%
2007 901 million + 6.4%
2008 920 million + 2.1%
2009 880 million - 4.3% (tourism slowed down due to fear of the H1N1 outbreak and global
economic downturn)
2010 938 million + 6.5
2011 980 million + 4.4
Table 1.1—World International Tourist Arrivals According to UNWTO
According to the United Nations World Tourism Organization (UNWTO), international tourist arrivals will reach 1.6 billion by the
year 2020 (www.unwto.org <http://www.unwto.org>). The WTO also forecasts that in this same period, Travel and Tourism
industry growth will benefit all regions of the world. Many new destinations have developed in untraditional regions of the
world, such as in Latin America, Eastern Europe, Asia, the Middle East and Africa.

Tourism is a very serious business. Many people do not understand the importance of tourism to their community's overall
economic well-being. International tourism is the world's largest export earner and an important factor in the balance of
payments of many countries. Tourism is an “export” for any country that hosts or receives foreign visitors. The country
“exports” memorable experiences for visitors who spend money in the country's restaurants, hotels, attractions and on ground
transportation such as taxi service. They buy local souvenirs and goods that they take back home. International tourists spent
USD 919 billion on local airfares, accommodation, meals, shopping, goods and attractions in 2010
(http://media.unwto.org/en/press-release/2011-05-11/international-tourism- first-results-2011-confirm-consolidation-growth).
International and domestic tourism combine to generate up to 10% of the world's Gross Domestic Product (GDP, see Glossary)
and often a higher share in many small nations and developing countries. Tourism is already the largest foreign exchange earner
in 46 of the 49 poorest countries in the world, and it can truly provide benefits to development by creating employment,
empowering citizens and raising living standards. No matter what the economic conditions are, people will continue to travel.

Jobs
The Travel and Tourism industry employs over 200 million people worldwide. Many tourism jobs are in small or medium-sized,
family-owned enterprises. Research shows that job creation in tourism is growing one and- a-half times faster than in any other
industrial sector. Tourism jobs and businesses are often created in the most underdeveloped regions of a country, helping to
balance economic opportunities. Travel agents or consultants no longer work only in a travel agency. Companies, organizations,
associations, educational institutions and societies all need the knowledge and skills of professional travel experts.

Infrastructure

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Travel and Tourism stimulates investments in new infrastructure, most of which improves the living conditions of local residents
as well as tourists. Tourism development projects can include building or improving airports, roads, marinas, sewage systems,
water treatment plants, as well as the restoration of cultural monuments, museums, and nature centers.

Tax Revenues
Tourism is a major economic generator because tourists pay sales and value added taxes. The tourism industry provides
governments with hundreds of millions of dollars in tax revenues each year through accommodation and restaurant taxes,
airport users' fees, sales taxes, park entrance fees and employee income tax. Clearly, this industry offers plenty of opportunities
for operating or working in a successful travel consultancy. Tourism is the world's largest growth industry with no signs of
slowing down.

The Benefits of Aviation to the Tourism Industry

Business and tourism depend heavily on air transportation. Without air transportation, it would be difficult to meet with
partners and customers, deliver mail and other goods, explore geography and other cultures or visit friends and family. No other
mode of transportation can offer the same speed and reliability over long distances. Air transport provides access to global
markets and connects people, countries and cultures. The airline industry is dependent on external supplier services. Such
supplier services include airport security services, meal caterers, aircraft re-fuelling, maintenance, sales and distribution outlets,
including travel agents and tour operators, aircraft financing and more. These suppliers must all employ people in order to
deliver their services to airlines.
The travel industry's aviation sector contributes to global economies in an important way through job creation and by
generating tax revenues. In addition, the aviation industry makes it possible for foreigners to visit and make local purchases that
support the local economy.
With the help of IATA and other travel industry bodies, Oxford University's Department of Economics collected data to measure
air transport contributions to the global economy and to the economies of individual countries.
Airlines carry 2.8 billion passengers annually. The airline industry employs 5.5 million direct jobs. The air transport sector
creates 9.5 million indirect jobs in supply-chain businesses that sell their products and services to airlines and airports. Air
transport also contributes to the creation of 18 million indirect jobs in tourism.
The air transportation industry facilitates global business growth, leading to worldwide employment for more than 56 million

direct and indirect jobs, including supply-chain and tourism businesses. It also transports nearly 3 billion people annually.

Self-Check-2 Written Test

ACTIVITY 2
1. Which is the best example of an indirect supplier-chain job created by the airline industry?
(a) Aircraft pilot
(b) Aircraft cleaner
(c) Aircraft mechanic

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(d) Aircraft flight attendant
(e) All
2. The air transport industry creates more indirect jobs than direct jobs. TRUE or FALSE?
(a) True
(b) False
3. Airlines ___________ nearly 3 billion people annually.
(a) employ
(b) transport
(c) tax

The Evolution of Travel Sales

Sales processes within the Travel and Tourism industry continue to evolve. Advancements in technology have facilitated
marketing alliances, database management, and communication with consumers. With technology and the popular use of smart
phones, agents are expected to provide customers specific, real time, interactive information on plane and local train/bus
timetables, hotels and key sites of interest near a traveller's location. Product suppliers such as airlines and hotels have found
other ways to sell their products directly to the traveller. As a result, standard commission payment schemes to travel agents
have disappeared accordingly.
These same technological advances present opportunities to travel agents as well. However, they have to know how to generate
sales, not just take orders. They have to be able to find the product best suited to the client's needs and creatively package it
accordingly, still influencing the consumer's travel purchase decision process. That is what keeps everyone happy: the customer;
the product supplier; and you, the professional travel consultant. Technological advances, such as the Internet and mobile
technology, have changed the way the travel agents do business, not the agents themselves.
But some recent marketing surveys suggest that a good percentage of travel consumers still prefer to buy travel from a
traditional travel agent.
These consumers can buy products and services online but prefer the face-to-face interaction with a professional travel agent.
Travel agencies report that more online customers are returning to the agency because find it frustrating to plan and book their
travel themselves. They find that the travel planning process is become more and more complicated because there are
increasingly more options online. Consumers swim in a sea of online information. For one thing, the amount of information
available online is simply overwhelming to consumers who already have too little free time to research and compare.
This means that traditional travel agencies can be successful and profitable if they offer the right combination of product
knowledge, experience, service and value. Traditional agents are able to arrange complex trips and trips involving multiple
components and multiple travellers. Agents are better qualified to help them choose travel options, particularly for destinations
that are unknown to those travellers. Finally, travel consumers are looking for value–not just price.Travel agents help them
recognize that value is not always “the best price”. Sometimes the best value is received from a travel option's benefits, such as
room upgrades, free baggage allowance, a children's club or free meals.

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Specialist, Not Generalist
A major change taking place is that the age of the “generalist” (one who sells anything and everything) is being succeeded by
the age of the specialist (one who sells travel experiences that match specific interests and life-styles). Today's travel agents are
successful if they specialize in experiences or destinations. There are important trends in travel suggesting that the role of the
travel professional is changing because of new consumer needs and lifestyles, including:
• The growing popularity of less familiar destinations
• The decreasing time available for working and career individuals to plan a special-interest trip
• An ageing population with more free time to travel and with special needs
• The recognition that travel agent support is needed when things go wrong while travelling
If you, the travel agent, can bring more people to those creative places and help the investors make money, you have every
right to make money, too, for helping both the visitors and the investors. Agents now have an opportunity to sell niche products
such as health holidays, gourmet cooking tours, sports events, exotic railway journeys, adventure travel—even whale- and bird-
watching tours.
There is no shortage of things that one can become an expert on—ecotourism, museums, art, culture, religious sites, national
parks—everything that makes the travel industry great. There will always be people offering wonderful travel and tourism
products and services around the world, and they will want to do two things:
 Attract visitors
 Make money
A major change taking place is that the age of the generalist is being replaced by the age of the specialist. Agents now have

Look at what’s waiting to be sold!

The simple fact is that competition among travel industry suppliers is at an all-time high, and it's increasing every day.
Thousands of hotel rooms are opening somewhere every day. Thousands of airline seats, hotel beds, cruise berths, and tour-
coach seats are all waiting to be sold, day after day. The travel industry sells the world's most perishable products: An unsold seat
or room is revenue lost, forever. The key is to sell those seats, berths, and beds—and to get paid for it. The industry is very
complex, though. Customers and travel industry companies are very demanding. Expectations are rising as never before.
Everyone wants value for money: The highest quality, the highest standards, and the highest professionalism at the lowest
cost. Products are becoming complex, too. Just keeping track of frequent-flyer points, shifts in airline alliances, and the different
offers from hotel groups can make your head spin. There is more: new reservation systems, visa regulations, fares, and terms
and conditions (the fine print) attached to every product.
Customers are not loyal. There are more suppliers to choose from, most just a click away on the Internet. Consumers are
constantly looking to try different things, and they frequently change travel product sellers if they can find one that offers them
a lower price. Things can, and do, go wrong. Weather conditions delay flights, or security considerations require re-routing of a
tour itinerary. Though these problems seldom occur, sorting them out for demanding clients can take a significant amount of
time, money, and resources, particularly for small and medium sized travel and tourism businesses.
The professional skills that you can develop will assist you in being prepared to handle such challenges. On the business side, the
financial pressures of being a small or medium-sized business operation can be heavy. Many such businesses, unable to manage

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the pace of change and unable to compete, are being purchased by larger global chains, which are themselves joining forces
with other chains in order to improve their negotiating power with airline alliances and global hotel chains.
This is affecting medium-sized travel agencies most. While the giant agency groups can negotiate the best prices and compete
amongst themselves for market share and volume, based largely on price and diversity of product, the small agents continue to
do business with a select clientele that likes personalised service and does not mind paying for it. Medium-sized agencies will
have to decide in future which way they wish to head.

Characteristics, Attributes, and Skills

Desirable Characteristics
As in any industry, tourism business can be affected by large external forces. Global economic downturns, inflation and currency
fluctuations force companies to cut travel costs and vacationers to travel closer to home. Disease or viruses as well as political
unrest will force governments to discourage travel to infected areas. But if you trace the trends in
Table 1.1 of this module, you will see that while international travel drops in one year, it bounces back to growth in the next.
There will always be a need for people to travel for business and leisure. The list of desirable characteristics is perhaps longer
than the list of business and commercial skills needed by the agency itself. Indeed, it is the professional skills of the employee
that make the company. Before listing such characteristics, attributes and skills, it is important to see what kind of services the
employee is expected to provide. Customers come to a travel consultant to get advice on where to go and what to do. They
want their travel plans booked and confirmed. Usually, they want the best price. Often, they will modify their itineraries in order
to obtain this price. They want all this done professionally, thoroughly and politely.
In the changing world of Travel and Tourism, a combination of “high-touch” and high-tech skills are necessary to work
productively and efficiently in the industry.
To be able to deliver that service and finalise the sale then becomes your most important function. In order to do that, you will
need:
• Creativity: Look at the customer, analyse his or her needs, ask proper questions and then make creative suggestions. Don't
forget, that person has come to you for something that he or she could not find by themselves, whether on the Internet or
elsewhere.
• A love for the job: If you enjoy what you are doing, your confidence will increase. Customers are reassured by this.
• Communication and presentation skills: An ability to present information about your products in a persuasive, courteous and
pleasant manner.
• Service-mindedness: Never forget that what people are buying from you is something they may have worked very hard to
save up for. Some may be first-time travellers. Others may be experienced persons. Either way, they expect you to provide that
service. The one thing that the Internet cannot provide is the emotional link of eye contact, a pleasant smile and a warm
handshake.
• Resourcefulness: Clients often ask difficult questions, and are certainly going to shop around. If you don't have the information
they want, you need to know where and how to get it.

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• Patience: Even after doing your best, you may lose the business. No one can win all the time. You must be able to put these
losses behind you, and look forward to the next opportunity.
• A cool head: Handling customer complaints is an art in itself. Calming dissatisfied clients, talking them through the issue and
solving it, is a skill worth its weight in gold. If you have a background or interest in psychology, this could well be a good field to
specialize in.
Never forget that what people are buying from you is something they may have worked very hard to save up for.

Multi-Cultural Background
Exposure to different cultures, through schooling, community groups, personal reading or travel, could be of great value.
Language Skills-The importance of these will rise significantly in the next few years. If everyone speaks some English in a global
world, your Unique Selling Proposition will lie in your ability to communicate with people of different cultures also in their own
language.
Good Organizational Skills
The complexity of the Travel and Tourism industry requires a human touch able to simplify and sort out complex matters. Being
able to organize well is a major asset in terms of increased productivity and low wastage of time and money.
Professional Integrity and Ethics
True in any profession, but especially in travel and tourism, as customers are buying a product they may have neither seen nor
experienced. The memories of their trip are what they will keep. Are you offering them the best option? It makes good business
sense to practice ethical attitudes and behaviour with customers. As in any other service industry, agencies that benefit from
long term success are those which promote good values that build customer trust and loyalty. Travel professionals play an
important role in setting ethical business standards that can benefit the entire industry. Important ethical practices for travel
sellers include:
• providing equal and fair service to all customers
• ensuring that the agency's information and services are complete and accurate.
• promoting products and services that customers can trust
• promoting sustainable travel products and destinations
• partnering with travel suppliers who have good ethics
Today, more tourism industry offices and ministries are mandating travel agencies to train staff on ethics in order to retain the
ability to operate a travel business. Working ethically makes us feel confident and proud of the work we do.
Team Spirit
No company can survive without it. We are all parts of a much bigger machine. If the parts don't do the job they are designed
and programmed to do, the machine stops functioning. It's as simple as that.
Patience and team spirit will help make a travel industry professional successful.
Good Knowledge of Geography

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What is the distance between Bangalore and Mangalore? Do Dubai and Durban have similar climates? Where is Vilnius? How
long is the Mekong River? Even if you didn't study it in school or college, there is no shortage of tools to help you with
geography, from websites to CD-ROM atlases to travel guidebooks, magazines and television programmes.
Finance, Accounting, and Managerial Skills
These skills are critical for professional growth. To advance your career, you need to be good at strategic planning and
negotiating deals. Your persuasive skills have to be outstanding.
If you have been exposed to different cultures, through schooling, community groups, personal reading or travel, it could be a
major asset.
The Finer Points
While skills and qualifications are important to build a successful career or a profitable business, creativity and resourcefulness
makes a travel agency competitive and satisfies customers. Getting started is important to achieving success, yes. Knowing how
and when to do it can be equally critical.
Here are a few tips, which are in line with developments taking place in the industry at large:
• Know your customer: Answer this basic question: What does this customer or client want from me? How can I help them get
it? Knowing your customer has many advantages because it helps you better understand to whom to sell, what to sell them, and
when best to sell to them. You know when people travel, where they went last time and where they might be interested in
going next.
• Know your product: If you know what you are selling, you can generally find someone to sell it to. Let's say you decide to
specialize in mountain-climbing holidays. If you present yourself as a leading authority on this and are quoted in media
interviews, look at the free publicity you generate for yourself.
• Focus on the Time & Money factor: In an era when time is money, saving someone time can mean money. Saving a lot of
people a lot of time can mean a lot of money. Can you provide your customers with products that can get them the best
possible value for money in relation to the time they have available?
• Balance your business: As mentioned earlier, don't overexpose yourself to any one market segment, supplier or country.
Establish a good mix of each. This will protect you against unforeseen problems that could affect any one of them.
• Don't forget about the little touches: Look after your customers with as much care as you give to your family. For example,
flowers sent on a birthday, a greeting card, a gift of food. If you know your customers well, there is no shortage of little touches
you can impress them with.
• Focus on the advice factor: If you are going ask your customers to pay for advice, you will need to make sure that your advice
will be the best money can buy. Make sure you are fully updated—from changes in visa regulations to the best way to get more
frequent flyer points.
• Think small: Being big does not necessarily mean being successful. Small companies can be relatively more successful, that is,
they can make more money from handling fewer people. Running small companies can also allow you to provide more
personalised customer service. It takes more than skills and qualifications to build a successful career or a profitable business. It
also takes creativity.

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 Self-Check-3 Written Test

Activity 3
Read each statement and answer True or False
1. Customers come to an agency only to look for the best price.
2. It helps to know several languages if you wish to work in Travel and Tourism.
3. If you do your job well independently, it is not important to function well as a team member.

Major International Travel and Tourism Organizations

Travel and Tourism Organizations

International Air Transport Associations (IATA) www.iata.org
United Federation of Travel Agents' Associations (UFTAA) www.uftaa.org
World Tourism Organization (WTO) www.world-tourism.org
World Travel and Tourism Council (WTTC) www.wttc.org
International Hotel and Restaurant Association (IH&RA) www.ih-ra.com
American Society of Travel Agents (ASTA) www.astanet.com
Pacific Area Travel Association (PATA) www.pata.org
International Airline Passenger Association (IAPA) www.iapa.com
International Congress and Convention Association (ICCA) www.icca.nl

The Travel and Tourism industry has many sectors, each with different interests. Grouping such sectors into organizations and
associations allows them to focus on common issues and undertake a range of activities to develop industry professionalism and
defend their interests against external interests. The efforts of these players collectively serve to enhance the industry, paving
the way for future development.
Travel and Tourism Organizations
International Travel and Tourism organizations play a major role in advancing the interests of the industry. They provide forums
for discussions of common issues, lobby for industry causes, especially those which promote the industry's interests, and allow
members from different parts of the world to network and learn from one another. Nearly all organizations are involved in
doing research, providing marketing services and training schemes that are most cost effective when done jointly under an
umbrella organization.
International Travel and Tourism organizations play a major role in promoting the interests of the industry. They provide
forums for discussion of common issues, negotiating and networking.
Such organizations are formed because interested members have common interest or because they operate in the same
geographical region. Some, such as the International Federation of Women's Travel Professionals or the International
Federation of Youth Travel Organizations, are even more specialized. Others are formed because they specialize in incentive
travel, or sales and marketing, or education and ecotourism, or exhibition and convention business.
Travel and Tourism organizations are coming together sectorally or geographically. Some are even more specialized, such as by
gender or age.

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In addition to the large number of global associations and organizations, many others represent regional, national or even
provincial interests and issues. Associations have the common goal of identifying the needs of their members and working to
meet them. They provide a common forum for people in similar lines of work to get together to discuss common issues. Well-
organised and clearly-focused international Travel and Tourism organizations play a major role in upgrading industry standards.
The following are some of the major global Travel and Tourism organizations providing channels of information on a large
number of issues affecting Travel and Tourism, from automation to taxation, from research to legal issues.

International Air Transport Association (IATA) www.iata.org

IATA is the global representative of the international air transport industry. With over 260 members, representing nearly 95
percent of international scheduled air traffic, IATA represents its members' interests in promoting safe, reliable, secure and
economical air services.
IATA's current Simplifying the Business initiatives are designed to increase efficiencies within the industry, through greater
automation and fewer paper-based processes. Airlines, passengers, airports, travel and freight agents—in short, all major
stakeholders—will benefit.
Founded in 1945, IATA was involved in establishing a sound technical and legal framework for the operation of the world's
airlines. It organised the first worldwide Traffic Conference in 1947 which worked out agreements related to fare construction
rules for multi-sector trips, revenue allocation prorating rules, baggage allowances, ticket and air waybill design and
agency appointment procedures. IATA is also the co-ordinator of Multilateral Interline Traffic Agreements that allows member
airlines around the world to accept each other's tickets and air waybills—and thus their passenger and cargo traffic—on a
reciprocal basis.
In 1952, the pattern for airline-travel agent relations was set with the introduction of the Standard Passenger Sales Agency
Agreement. In the early 1970s, as a result of increasing fare calculation complexities, and recognising the need for globally
standardised travel agent training, IATA introduced the beginnings of today's Travel and Tourism Training Programme. IATA
supports two head-offices: one in Geneva, Switzerland, and another in Montreal, Canada.
United Federation of Travel Agents' Associations (UFTAA) www.uftaa.org
UFTAA represents national travel agents' associations in a significant number of countries. It remains the most prominent body
representing the interests of travel agents worldwide and enjoys consultative status with the United Nations.
The UFTAA Secretariat consists of its Secretary General and a small team, based in Monaco, which is directed by an elected
Board of Directors composed of a cross-section of travel agents from around the world. Its membership also includes a large
group of Travel Partners, including major airlines, hotels, tourism boards, shipping companies, car rental companies and many
other operators allied to the tourist industry. UFTAA also lobbies to oppose legislation directly harmful to tourism and free
circulation for citizens of any country. Its primary goal is to develop, promote and assist in the professional training of travel
agents.
Through its Education Committee, UFTAA works to assist travel agents to become better qualified. UFTAA endorses and
supports this Training Program and is committed to enhancing the travel agents' worldwide image of competence and
professionalism. UFTAA headquarters is in the Principality of Monaco. http://www.uftaa.org/gen.php3?id_article=49

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United Nations World Tourism Organization (UNWTO) http://unwto.org/
UNWTO, not to be confused with the World Trade Organization, serves as a global forum for tourism policy issues and a
practical source of tourism know-how. Based in Madrid, UNWTO is entrusted by the United Nations to help countries maximize
the positive impacts of tourism, such as job creation, infrastructure development and foreign exchange earnings, while at the
same time minimizing negative environmental or social impacts. Representatives covering Africa, the Americas, East Asia and
the Pacific, Europe, the Middle East and South Asia are responsible for overseeing specific projects and working with tourism
officials in various countries to analyze problems and seek solutions. The transfer of tourism know-how to developing countries
is one of its fundamental tasks. As an executing agency of the UN Development Program, UNWTO contributes to the
sustainable development goals of nations. Acting on requests from member governments, UNWTO secures financing, locates
experts, and carries out all types of tourism development projects.
WTO's Tourism 2020 Vision document is an important benchmark of industry activity and direction. Balancing periods of greater
and lesser growth, it confidently forecasts that on a worldwide basis, international tourism travel will more than double
between 2006 and 2020.
UNWTO is the only inter-governmental organization that offers membership to the operating sector and in this way becomes a
unique contact point for discussion between government officials and industry leaders. The UNWTO headquarter building is in
Madrid, Spain.

World Travel and Tourism Council (WTTC) www.wttc.org

Founded in 1990 with support from American Express, WTTC is a high level private sector-only lobbying group whose
membership comprises Chief Executives of multinational accommodation, catering, cruises, entertainment, recreation,
transportation and other travel-related companies.
WTTC's mission is to raise awareness of the full economic impact of the Travel and Tourism industry. It lobbies for open markets,
relaxation of border controls, and development of infrastructure. Its recent Blueprint for New Tourism encourages governments
to adopt policies favouring sustainable tourism, which balances economic growth with the protection of natural and cultural
resources. The WTTC is headquartered in London, UK with an office in Gurgaon, India.

International Hotel and Restaurant Association (IH&RA) www.ih-ra.com

Officially recognised by the United Nations, IH&RA represents the interests of the world's hotels and restaurants. Members
include hotel and restaurant operators, corporate hotel executives, national hospitality associations, hotel schools and suppliers
to the hospitality industry. The association is responsible for lobbying international policy-making bodies to resist regulations
that could damage their business, estimated to comprise 300,000 hotels and 8 million restaurants. The International Hotel &
Restaurant Association is headquartered in Lausanne, Switzerland.

American Society of Travel Agents (ASTA) www.astanet.com

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Based in the United States of America, ASTA describes itself as the world's largest association of travel professionals. It has more
than 20,000 members, the majority of them in the United States of America. The majority of ASTA's members are travel
agencies. However, travel suppliers, such as airlines, hotels, car rental firms, cruise lines, and tour operators also join. The
society has separate membership categories for students, travel schools, retired travel professionals, retail travel sellers, and
others. Members are provided with education and information resources to help them boost their professional services to
clients. ASTA members uphold a strict code of ethics, the pledge on which members stake their reputation. The ASTA office is
located in Virginia, USA.

Pacific Area Travel Association (PATA) www.pata.org

Founded in 1951, PATA is the dominant industry association in one of the world's most popular Travel and Tourism regions.
Based in Bangkok, its membership includes nearly 100 government, state and city tourism bodies, 76 airlines and cruise lines,
some 2,000 companies and organizations, and 17,000 individuals in 78 Chapters worldwide. Its programmes are designed to
help members enhance their competitive edge through research and marketing services, product development and educational
seminars and workshops. It also produces a number of statistical and research reports feeling the pulse of the region. PATA is a
strong supporter of sustainable tourism. PATA headquarters are in Bangkok, Thailand.

International Airline Passenger Association (IAPA) www.iapa.com

With over 400,000 members around the world, IAPA's main goal is to represent the views of travellers who fly often, by
speaking out on safety and health issues related to flying. One area in which IAPA has made efforts is the improvement of
aircraft cabin air quality. It also offers members discounts on hotels worldwide, savings on car rental, comprehensive travel
insurance, and other benefits. IAPA continues to exert pressure for an active and capable aviation regulatory system to bridge
national regulatory boundaries. The International Airline Passenger Association is headquartered in San Antonio, Texas.
International Congress and Convention Association (ICCA) www.icca.nl
ICCA members, numbering over 700 in almost 80 countries, represent the world's leading specialists in managing,
accommodating and transporting international conferences and events. The group focuses on business matters such as
marketing, market research and education. One of its major efforts has been to enhance co-operation for the concerted
promotion of regions as an attractive destination for international meetings.
The ICCA head office is based in Amsterdam, The Netherlands.
International Travel and Tourism organizations provide forums for discussion, and allow members from different parts of the
world to network and learn from one another.

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 Self-Check-4 Written Test

Activity 4
Apply Your Learning
Do an Internet search for the many dozens of international Travel and Tourism organizations, aside from those listed above. Jot
down how you think they can be of help to you in terms of market research, the development of new travel and tourism
products and services, and keeping in touch with industry trends.
Activity 5
1. International Travel and Tourism organizations are ineffective groups of appointed executives doing nothing.
2. The main function of international Travel and Tourism organizations is to defend the interests of their members.
3. Most international Travel and Tourism organizations are focused only on reducing government and industry regulation.

Regional and National Travel and Tourism Organizations

The Role of Regional and National Tourism Organizations

While the international Travel and Tourism organizations “think global”, the job of the regional and national Travel and Tourism
organizations is to “think local”. Both have their unique roles to play in improving the product quality of destinations and
helping to market them better.
The Role of Regional and National Tourism Organizations
Regional and national tourism organizations play an important role in the Travel and Tourism industry. Many are members of
the bigger international Travel and Tourism organizations listed above and use their resources to organize conferences, gather
research and keep informed about global travel trends. Such resources would be very expensive for the regional and national
tourism organizations to develop on their own.
The main function of the regional and national Travel and Tourism organizations is to provide infrastructure support within the
industry to ensure that a) tourists are encouraged to travel to their regions or countries; and b) that sellers of travel and tourism
products have all possible information related to any questions consumers may ask about their destinations.
Regional and national Travel and Tourism organizations have to provide infrastructure support within the industry.
They also have to actively sell their respective regions and destinations abroad. That paves the way for the private sector to then
build upon thatbroad effort to market their individual hotels, tour services, convention facilities, etc. The tourism organizations
do this in several ways, many of them targeted at travel agents. For example, they set up overseas offices and marketing
representatives whose main duties are to:

21
• Organise the private sector's participation in global and regional travel trade fairs—Important industry events include World
Travel Market (WTM), European Incentive & Business Travel & Meetings exhibition (EIBTM), Internationale Tourismus Börse
(ITB), Feria Internacional de Turismo (FITUR), Arabian Travel Market (ATM), PATAmart, INDABA and many more.
• Undertake advertising campaigns, usually in cooperation with the private sector or airlines.
• Work with the travel trade, in countries from which their visitors originate, to include greater content for their destinations in
tour wholesalers' brochures.
• Answer queries related to safety, security, visas, facilities, etc.
• Do research on behalf of the private sector, which can include airlines, hotel chains and non-government organizations.
At the head office level, they have to:
○ Provide support for the marketing activities of the overseas offices.
○ Keep track of vital statistics to indicate market trends.
○ Manage product development at home.
○ Organise training courses and other human resources development activities.
○ Organise trade fairs back home.
One recent trend, especially in developing nations, has been for many provincial, state or city destinations to set up their own
tourism offices, in order to highlight their own unique selling propositions.
In some countries, national tourism organizations are full-scale ministries, acting either as single-portfolio ministries or in
conjunction with others like culture, transportation, sports. Ministries usually have a higher level of development or regulatory
role to play, i.e., they are more closely involved in executing master plans for tourism development or enforcing laws related to
hotels, tour operators, guides, etc.
In recent years, many tourism organizations have been facing budgetary constraints and are being restructured to include
private sector participation. Many are being chaired by private sector executives. This is also making them more efficient and
accountable in terms of how they spend their money.
National tourism organizations also work closely with the private-sector trade associations, such as those grouping the local
hotels, travel agents, guides, souvenir shops, etc. Such associations are smaller versions of the larger international Travel and
Tourism organizations and work to achieve the same results: defending their members' interests against excessive regulation
and taxation, organising marketing forums, conducting research and training courses.

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 Self-Check-6 Written Test

Activity 6
Apply Your Learning
There are one hundred or so national associations of travel agents. You should familiarise yourself with the national association
and national tourism organization in your country or region. Learn more by visiting their websites or by contacting their offices;
Study a copy of their annual report; find out how they are structured and what each of their departments does; ask how you can
get access to research and statistical information. Find out about their education programmes. Ask how you can be enrolled in a
program to become a “destination specialist”.
Activity 7
Read each statement and answer True or False
1. Many regional and national tourism organizations are able to benefit from conferences and research that would be too costly
for them to develop on their own.
2. Government domination of such regional tourism organizations is decreasing; the private sector is now getting increasingly
involved.
3. Marketing and promoting their regions in foreign countries is often the most important function of such organizations.

Information sheet-2  Source and apply information on legal and

23
 ethical issues that impact on the tourism
industry

LO 2: Source and apply information on legal and ethical issues that impact on the tourism
industry
2.1. Obtain information on legal issues

Introduction
The importance of complying with legal requirements cannot be over emphasised.
Failure to meet legally imposed obligations can result in fines (to you and the business) as well as a whole range of
penalties including closure of the business.
Failure to observe applicable ethical standards can result in extremely negative customer reactions which will lead to
bad word-of-mouth advertising and consequent loss of business.

General workplace rights and responsibilities

Both the employee and employer have rights and responsibilities that must be adhered to at all times.

Employer responsibilities
Employer responsibilities include:
 Complying with occupational safety and health regulations
 Providing equal and fair services to all people
 Paying relevant taxes and fees associated with the operation of the business
 Ensuring appropriate insurance is taken out to cover workers
 Offering products and services that conform to what is advertised
 Being a responsible corporate citizen and community member.

Employee rights
Employee rights extend to, though are not restricted to:
 Being paid and working under conditions in-keeping with awards or other employment instruments
 A workplace that is free from discrimination
 A safe and secure workplace.

Employee responsibilities
Employee responsibilities extend to, though are not restricted to:
 Undertaking duties as they apply to their employment category
 Not acting in a discriminatory manner towards their employer, colleagues or customers
 Adhering to the regulations
 Representing the best interests of the business
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  Working to the best of their ability
 Keeping commercial information confidetially
 Being responsible and accountable for all money received on behalf of the business
 Obeying all lawful instructions from management.

Legal requirements
Laws
Laws are a set of principles, rules and standards established by parliament and enforced by the courts for the
regulation of behavior in society and the protection of members of society and their property.
National legislation is administered by the Government including laws covering issues such as:
 Immigration – covering visas and entry into the country
 Taxation – covering personal tax and the Goods and Service Tax (GST).

Local legislation is administered by states or provinces covering many areas of the tourism industry including:
 Education
 Criminal laws
 Corporate laws
 Changes in society.

Society evolves and community standards change. The result is that there always are legal issues currently impacting
on the tourism industry that perhaps weren’t there a year ago, or even yesterday. It is useful to you to keep abreast
of these issues when you see them raised in the media.

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Consumer protection issues These address the increasing responsibility on business to protect the interests of
the consumer from unconscionable activities and illegal action. It is a standard requirement that all advertising
(verbal, printed or in the media) be truthful, not misleading and fully discloses any negatives that can be expected to
reasonably influence a buying decision that a consumer might make.

Duty of care
This common law requirement reinforces the responsibility that all employers and businesses have to provide a safe
workplace and to take appropriate care and action to make sure that staff, customers and members of the public are
not injured while at the place of business.
Where a business (or staff member) breaks the law they may be penalized (by fine or imprisonment) under the
criminal arm of the law. In addition, the action or inaction that gave rise to the offence may also form the basis of a
civil action, for negligence, for example.

Equal employment opportunity

The legislation has now been around for decades and remains a significant consideration in many areas to ensure
that people are not victimized or discriminated against because (amongst other things) of their age, gender, race,
disability or sexual preference. This applies in the areas of employment or in the provision of products and services.

Workplace relations

Changes occur here where existing HR legislation, systems, structures, terms and conditions of employment and
instruments of employment are subject to amendment or repeal through the efforts of the government, employer
bodies or unions.
As legislation is altered, this has workplace-specific implications for workplaces. The changes to laws may also mean
changes to the government bodies responsible for employment-related areas.
Privacy
Privacy is as on-going issue in the industry and legislation places an obligation on employees not to release
confidential information about their customers (without their express consent) which can include information about
their:
 Name
 Address
 Phone number
 Buying habits
 Marital status
 Methods of payment used to buy products and services
 Purchases – including frequency of purchases, type of and quantities of products and service bought.

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Finding information on legal requirements
Regardless of your position within a tourism industry, it is important that you understand the legal requirements of
your position and how to conduct your duties in a legal manner.
There are a number of avenues to explore to keep you updated on legal issues relating to the tourism area:
 Asking Human Resources – they normally are the most up to date with legal requirements relating to
employment
 Asking Management – they normally have a grasp on legal requirements regarding operational
requirements
 Research internet for current legal changes or amendments.

2.2. Conduct day-to-day tourism organization activities according to legal

obligations and ethical industry practices.
Identify sources of information on ethical issues, and obtain such information
Ethical issues impacting on the industry (and about which you must investigate the business policies and standard
operating procedures) can include a range of areas.
Whilst ethical issues may or may not be enforced by laws or regulations, there is a certain 'code' by which all
businesses should operate.

Ethical considerations
Confidentiality
Confidentiality is allied to privacy. We are under obligation to keep customer information confidential. However we
are also under an obligation to keep information about the business confidential. If you become aware of
information about the business you are expected to keep this information to yourself and not disclose it to anyone
including family, friends and even other staff members.
The matters about which you are expected to maintain confidentiality include:
 Details about security – including alarm codes, combinations to safes
 Details about trade – amount of revenue generated by bookings
 Details about purchases made – including commercial arrangements that the business has been able to
negotiate with suppliers/wholesalers/airlines, method of payment used
 Occurrences within the premises – incidents where authorities have been involved such as attendance by
police, ambulance, doctors; and staff dismissals.

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Commission levels
Not all businesses will be involved with commission but where they are certain ethical issues apply. Issues include:
 All commissions should be paid promptly to businesses that direct business to your company and vice versa
 Only approved commissions should be levied
 Appropriate documentation should support both the receipt and payment of commissions
 Negotiated commission levels should not be disclosed to third parties.

Overbooking
Overbooking is a common industry practice but the way it applies (or even if it applies) will vary between
wholesalers, airlines, properties etc. Overbooking is a situation where the airline/property etc accepts bookings for
more seats/rooms etc than are available, based on the history of ‘No Shows’ that they have experienced.
For example, an airline with 100 economy seats on their plane may have an overbooking policy that allows them to
take bookings on any one plane for 110 economy seats because traditionally they experience 10% rate of people
who don’t show up even though they have made the booking.
Where all passengers arrive as booked, the airline then has to make arrangements for them. This can cause
embarrassment and a loss of reputation for the airline and frustration and anger for those who cannot be
accommodated. When an airline experiences an overbooking situation where all passengers arrive they usually
upgrade those passengers they can to business class, bump passengers to other flights or offer compensation as a
good will gesture.

Pricing
This is a potentially complex issue and one that will vary between agencies and even within the same company
agencies depending on location.
Pricing can also vary between times of the year or even time of the day. Properties, tour companies and airlines
generally charge premium (high) rates during peak seasons such as holiday times and traditional periods when there
is a high level of bookings. Some airlines now are featuring a ‘Happy Hour’ at set times.
Ethical matters that relate to pricing include:
 Charging customers for all products and services that they can be legitimately charged for. However making
sure they are not charged for items that are provided free-of-charge such as inclusions involved in package
deals
 Ensuring that prices quoted to customers are correct and not deliberately and misleadingly lower in order to
encourage people to book with you, only to find, that process are actually higher than quote
 Keep promises that are made in relation to prices. This needs to be discussed with management but many
businesses will honor a quote given to a customer even where the business will suffer a loss as a result of
doing so.

Familiarizations

Familiarizations are marketing or promotional activities that many companies engage in to make targeted people or
businesses more aware of their presence, what they have to offer etc. They involve inviting a nominated person to
fly, stay, tour etc free of charge to experience what they have to offer and become familiar with the product.
Airlines, tour companies, properties etc commonly offer trade familiarizations seeking to make people in the trade
such as travel agents and wholesalers, more aware of the features and services their product has to offer.

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The intention is that if they positively impact on these people they will refer more paying customers to them.
Journalists are also offered familiarizations who will in turn write a positive article about the property, airline, or
other service, thereby influencing readers to visit that property, use that airline, or other service.

Code of ethics
It is not enough to know what should be done in the workplace. You have to put that knowledge into practice. You
must implement the information you discovered when obtaining information on ethical issues.
The day to day activities in the travel sector need to be conducted in a legal and ethical manner.

Self-Check-7 Written Test

Information sheet-3  Source and apply information on tourism

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 industry technology

LO 3: Source and apply information on tourism industry technology.

Introduction
The travel & tourism industry is all about connections; connecting people, places and cultures. Using new
technologies, social media, and social networks can help to foster the connections that we share.

Importance of technology

In most industries technology greatly impacts on all aspects of operations. In most cases, the improvements in
technology have been immensely beneficial for the industry. It has made the world a smaller place and made it
easier for businesses to get in touch with customers.
Technology has simplified and streamlined the way we operate.
In summary, technology is one of the greatest positive impacts on a business, regardless of industry.
Whilst many people are wary of technology, with some stating it is a threat in a ‘service & people oriented’ industry,
technology is extremely beneficial to improve service, not replace it.
So what technological trends do we expect to see impact on the tourism industry in the future?
The internet is a great tool to research and identify technological trends and their likely impact on industry and how
we operate.

Role of technology

The main aim of technology in the tourism industry is the development of competitive advantages by both reducing
cost and enhancing differentiation and unique selling points. The main ways technology can enhance the tourism
industry are:
 Streamline and speed up access and delivery of tourism services
 Improve management and profitability of tourism operations
 Enhance marketing of the industry as a whole and the businesses within it
 Improve the relationships between tourism businesses and its customers.

Emerging technological trends

Every day, in all corners of the globe, new technologies are being invented and introduced into the market, either
aimed at tourism businesses or end users. These new technologies enable:
 Standardized set of XML messages for the distribution of tour and activity data
 Short-term, purely spontaneous travel specials
 Dedicated travel apps
 Sharing of traveller’s personal information to simplify bookings
 Advanced travel search engines
 Travellers to find activities and local content in a mobile optimized environment
 Small business owners to access the business travel market

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  Hotels and resorts to communicate with guest through on property mobile before, during, and after their
visit to the property
 Hotels manage their online reputation and social media
 Friends to collaborate and plan trips together
 Travellers research and decide where to go, where to stay and what to do.

This is just the tip of the iceberg of trends that will include the tourism industry in the immediate future.
As a member of industry, it is vital that regular research is conducted to ensure you are aware of trends and in some
cases they may be incorporated into your business model for added success.

Self-Check-8 Written Test

Information sheet-4 Update personal and organizational knowledge of

31
 the tourism industry.

LO4: Update personal and organizational knowledge of the tourism industry.

Responsible Travel and Tourism

Travel professionals must be aware of trends that influence and change what customers need and want. Responsible travel and
tourism is an important travel trend today. Both the travel and tourism industry and travelers worldwide are focused on doing
as little damage as possible to the planet. Travel professionals should know about responsible travel and tourism, how it affects
the products and services they sell and the how it influences the decisions made by today's business and leisure customers.

Introduction of an Important Trend

Behaving in an environment friendly way is now part of our daily habits at home and in the work place. We regularly hear about
climate change, air and water pollution and the decrease of the diversity of vegetation and wildlife. Ecology and Environment
are subjects taught and studied in schools and reported on by television and newspaper media. The documentary film An
Inconvenient Truth raised public concern about the consequences of climate change.
The success of Earth Day, celebrated on April 22nd every year, is proof that there is a worldwide movement to live a “green”
habits to protect the planet. The success of Earth Day, celebrated on April 22nd every year, is proof that there is a world wide
movement to live a “greener” lifestyle. We help keep our planet favourable for future generations by behaving in conscious
ways through recycling, composting, travelling by bicycle and using energy efficient light bulbs and kitchen appliances, to
mention a few.
Industries are also changing the way they work to minimize any damage to the environment. Many of them are forced to do so
by government legislation. Corporate social responsibility (CSR) is now known as a voluntary business management approach
that promotes good citizenship through positive economic, social and environmental practices. This approach is based on the
concept of Sustainable Development introduced by the United Nations (UN). The concept means “environmental, economic and
social well-being for today and tomorrow” (http://www.iisd.org/sd/ The International Institute of Sustainable Development).
Over the years, the UN has brought together governments, organizations and experts to discuss global warming. Climate change
is the most important challenge the world faces today. Global warming causes drastic climate changes that disturb the world's
ecosystems and our own health and way of life.
Many international organizations such as the UNWTO and the GSTC (Global Sustainable Tourism Council

www.new.gstcouncil.org) are focusing on sustainable tourism. In addition, travel and tourism professionals have
participated in the elaboration of declarations (Cape Town, Lusaka, and San Salvador) on how to implement
responsible tourism. As a result, smart travel and tourism businesses now practice CSR by creating and
promoting products and services that support destinations: their environment, cultures and their people.
Today's travel customers would not want to buy travel products or services that knowingly harm a
destination's natural environment and people.

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 Self-Check-9 Written Test

Activity 8
Apply Your Learning
The idea and acceptance of Earth Day is catching on. On Earth Day, April 22, millions of people worldwide engage in educational
or other local activities to focus on the health of the planet. Some people turn off their lights for a short period at home or at
work. Others walk or ride bicycles to work. On the last Saturday in March millions of people on all continents Turn off the lights
at 8:30pm local time for one (1) hour. Explore: (www.earthhour.org)
Research Earth Day and/or Earth Hour events and activities in your country, list them and describe each one. Identify whether
each event or activity.
Educational institutions, governments, the media and international organizations like the United Nations actively report on the
state of the planet and have created a sense of urgency in many people around the world to do their part to protect the planet
and its peoples, locally and inter- nationally.
Activity 9
1. Which of the following is generally considered to be a green habit?
(a) Leave the office lights on after work hours
(b) Travel by public bus instead of taxi
(c) Take more baths than showers
(d) Drink bottled water instead of tap water
2. Which would be the best practice of Corporate Social Responsibility in the cruise industry?
(a) Dispose human and kitchen waste in the sea
(b) Designate smoking areas in the casino on board
(c) Stop at ports for passengers to disembark and visit
(d) Sell coral reef souvenirs to cruise passengers
3. Which global warming effect can possibly hurt travel destinations?
(a) The melting of glaciers in Alaska and Switzerland
(b) More days of hot tropical weather in tourist destinations
(c) Rising sea levels and deeper oceans due to more rainfall
(d) Stronger and plentiful growth of forests and plants

What is Responsible Travel and Tourism?

Travellers, although greatly appreciated for the revenues they bring to the destinations they visit, may also unintentionally
create a negative impact. Travelers can create waste or pollution by:
• using forms of transportation that consume high energy
• leaving garbage behind in places visited

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• purchasing prohibited souvenirs
An increase in the number of travelers visiting a destination may also:
• create overcrowding
• anger or offend local residents
• bring crime to the destination
• use foreign services that do not create local jobs for local people
Responsible travel and tourism is based on the concept of preservation, including green and sustainable tourism. Green tourism
is about choosing products and activities that are friendly to the destination's ecosystem and natural environment. Becoming
“green” in the travel products sold and in the way we work is the focus for many travel related companies. Here are some
examples:
• Aircraft manufacturers are building new aircraft that pollute less
• New hotels are safely built according to a “green” building code
• Travel suppliers reduce paper consumption by producing electronic of digital flyers and advertisements
Responsible travel and tourism is also based on the principle of sustainable tourism. Sustainable tourism is more than choosing
environment friendly products and services. Planeterra (http://www.planeterra.org/) is a non-profit organization dedicated to
promoting sustainable tourism. Planeterra defines sustainable tourism as activities that respect the destination's people and
cultures and bring economic benefits to the businesses and communities of the destination. Sustainable tourism motivates
visitors to respect local people and cultures. It creates economic benefit for the destination's local businesses and communities.
And sustainable tourism practices discourage tourist behaviors that can potentially bring crime, abuse and poverty to a
destination.
Responsible travel and tourism guidelines promote travel itineraries, packages, tours and tourist activities that create positive
outcomes on the destination and its people. It also leaves visitors with a memorable experience.
Responsible travelers are respectful of the host country: its history, its cultural and its natural environment and resources. They
avoid activities that negatively impact local economies, cultures and environment. They use small-scale or locally owned
accommodations instead of international foreign hotel chains.
They try to use local ground transportation such as a train or electric busses to tour the destination; they support locally-owned
businesses by shopping in local shops, eating in local restaurants and buying locally made handicrafts and souvenirs. They use
local tour guides. Through organizations such as Planeterra (http://www.planeterra.org/), responsible travelers also volunteer
to participate in a community-based ecotourism project as part of a tour.
Responsible travel and tourism suppliers improve the environment, culture, aesthetics, heritage, and well-being of a destination
and its residents. They improve life for residents of a destination. For example, large hotel companies practice responsible
tourism when they build a new hotel using local non-toxic materials and hiring local builders and employees.
Responsible travel agents and tour operators are knowledgeable about travel services, packages, tours, and activities that are
destination friendly, respecting a destination's environment and communities. Responsible travel professionals educate their
customers about the importance of respecting the destinations they visit. In other words, today's challenge for the travel agent

34
is to identify the availability and quality of responsible travel products and services that can be offered and sold to their
customers.
Practicing responsible travel and tourism as a travel agent means that you:
1. are knowledgeable about travel services, packages, tours, and activities that are destination friendly, respecting a
destination's environment and communities
2. Educate customers about the importance of respecting the destinations they visit
In other words, today's challenge for the travel agent is to identify the availability and quality of responsible
travel products and services that can be offered and sold to their customers.

Self-Check-10 Written Test

Activity 1
Apply Your Learning
Research the UNWTO, GSTC web pages on sustainable tourism and discuss at work in what way your Travel Agency is already
practicing or should practice responsible tourism in the near future. Tourism can bring as much disadvantage to a destination as
it brings benefits. Responsible tourism is a combination of conservation and preservation guidelines. It is about conserving the
destination's natural environment (green tourism) and about respecting the destination's local
Activity 2
True or False
1. ___________The tourism industry does not affect the natural environment.
2. ___________Sustainable tourism is about creating local jobs for local people.
3. ___________Responsible travel and tourism is practiced by travellers only.
4. ___________The travel agent's role is to inform customers on green travel.

Promoters of Responsible Travel and Tourism

While many governments of tourist destinations support the concept of sustainable tourism, several international organizations
actively promote and facilitate responsible travel and tourism.
The Global Sustainable Tourism Council (GSTC) http://new.gstcouncil.org
A global initiative dedicated to promoting sustainable tourism practices around the world. The GSTC serves as the international
body for promoting the increased knowledge, understanding and adoption of sustainable tourism practices. The GSTC fosters
sustainable tourism through the adoption of universal sustainable tourism principles; compiling, adapting and creating the tools
and training to engage in sustainable tourism practices; and increasing the demand for sustainable tourism products and
services.
At the heart of this work are the Global Sustainable Tourism Criteria, the minimum requirements that any tourism business
should aspire to reach in order to protect and sustain the world's natural and cultural resources while ensuring tourism meets
its potential as a tool for conservation and poverty alleviation (Copyright © 2011 Global Sustainable Tourism Council).

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The United Nations' World Tourism Organization (UNWTO) www.unwto.org
The UNWTO is an agency of the United Nations and an authority on tourism development and know-how. It works with
governments and provides guidance and support to countries that wish to develop or build a tourism industry, especially in
developing regions. In 1999, the UNWTO established a Global Code of Ethics for Tourism, a list of ten moral principles that
promote positive experiences and benefits through tourism.
They include respect for people and societies, contribution to job creation and economic growth, respect for workers and
responsibilities of tourism industry suppliers. The UNWTO recommends the adoption of these principles by travelers,
destinations and travel businesses.
Source: http://www.unwto.org/ethics/index.php Most UNWTO activities and projects are linked to tourism education and
development and the creation of a tourism industry to help reduce poverty.
UNWTO is active in working with governments on solutions to protecting the environment and preventing damaging climate
change. In 2009, the UNTWO and The World Travel and Tourism Council (WTTC) produced a report that defines the tourism
industry's commitment to reduce CO2 emissions and energy consumption. The report identifies best practices for the travel and
tourism industry to adopt.

The United Nations Education Scientific and Culture Organization (UNESCO) www.unesco.org
UNESCO is also an agency of the United Nations. It works to promote peace, human rights, acceptance of all cultures and races
and interaction between them, literacy and education. The program labels destinations and sites of cultural and natural interest
to travelers as “UNESCO sites”. These are landmarks or places such as buildings, statues, nature areas, or cities that have a
special cultural or physical significance. The UNESCO label helps attract tourism to UNESCO heritage sites and encourages the
site home country to preserve its cultural and environmental characteristics.
UNESCO promotes the conservation of biodiversity. Biodiversity conservation is the protection of the many different species of
wildlife, plants and ecosystems so that they do not become extinct. UNESCO encourages visitors to World Heritage Sites to “Visit
responsibly” by referring to responsible tourism habits.

The International Ecotourism Society (TIES) http://www.ecotourism.org/

TIES, a non–profit organization, promotes ecotourism. Ecotourism is travel to natural areas where visitors practice conservation
behaviors. TIES projects include “volontourism”, tourism activities that involve visitor volunteers to work on environmental or
cultural projects such as teaching a second language in Ethiopia or building an irrigation system in Somalia. Volontourism
provides travelers an authentic travel experience, an opportunity to immerse oneself in a new culture, a unique education,
some adventure and the satisfaction of helping a disadvantaged community or environment.

Sustainable Travel International (STI) (www.sustainabletravelinternational.org

Sustainable Travel International is a non-profit organization dedicated to the education of travelers and destinations on
environmental and cultural conservation. STI has published a brochure entitled “Sustainable Travel” with do's and don'ts for
those who want to travel responsibly. The last page of this brochure features the “Credo of the Peaceful Traveler”, representing
an oath or promise to travel in peace with nature and with other cultures
(http://www.sustainabletravelinternational.org/documents/ STIbrochure.pdf).

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Key international tourism organizations are actively engaged in promoting responsible travel and tourism via their programs,
policies, projects, guidelines and publications.

Self-Check-11 Written Test

Activity 1
1. The Great Barrier Reef is an example of .
(a) Volontourism
(b) A code of ethics
(c) A UNESCO World Heritage Site
(d) Sustainable tourism
2. TIES is an organization that promotes
(a) Climate change
(b) Tourism economics
(c) Cultural sites
(d) Ecotourism

Activity 2
Activities and Discussion
1. Log on to the Internet and look up some of the global tourism organizations, as well as those in your particular region.
Focus especially on those whose help you could need in developing your skills.
2. Some anti-tourism activists say the Travel and Tourism is growing much too quickly. Companies have to increase the number
of travellers in order to increase business and generate profitability. Yet, desti- nations are groaning under the weight of
excessive visitor numbers. Can the travel agent assist in balancing these needs? Discuss.
3. What is your hobby? Or your specialized field of study? Explore how you can find clients with similar interests and
organize trips abroad for them to indulge in activities specific to their field of specialization.
4. How many languages do you speak? If you speak Spanish, you have a clear opportunity to capitalize on selling travel to or
from Spanish- speaking countries. How can you best do that? Examine your prospects and your options.
5. Value-added is becoming a major issue for travel agents. List a number of things that you can do to add value to the sales
prospect. Think of things that will make your customer feel that you value their business and are willing to treat them not just
as sources of income but as extensions of your family. Expand on this list as ideas keep coming to you.
6.Visit a home for the elderly in your city or town and see how they are catered to in terms of food, medical needs, toilets, etc.
Talk to nurses and attendants at the home about how to cater to the elderly and what would be some of their special needs
and requirements should they be fit enough to travel.
7. Research a destination that has been affected by a decline in visitor arrivals. Find out why. What has it done wrong?
What can it do to overcome its problems?
8. Discuss how cultural interaction, learning about other religions, appreciation of nature, architecture and other cultures, all
of which are elements of the Travel and Tourism experience, can contribute to world peace and Responsible Travel and
Tourism practices.

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Activity 3
1 . In the changing world of travel, and thanks to technology, you can now work:
(a) From home (b) At the office
(c) On the road (d) All of the
above

2 . The World Tourism Organization estimates that by the year 2020, international visitor arrivals will
top:
(a) 500 million (b) 800 million
(c) One billion (d) 1.6 billion

3. Some travel agents are trying to cope with the pressures of change by:
(a) Selling out to larger businesses
(b) Closing their companies and retiring
(c) Moving into niche markets
(d) Either/or one of the above, depending on their circumstances

4. The reduction of airline commissions is a:

(a) Threat (b) Opportunity
(c) Both a and b
(d) Neither, just another step in the ever-changing
world of business

5. Other industries like finance, telecommunications and agriculture are looking to forge partnerships with
the Travel and Tourism industry because:
(a) It's fashionable to link up with tourism
(b) They are aware of the amount of money they can make from it
(c) They want to improve their image
(d) They can cross-train their staff and diversify their business

6. It is necessary to be selective about what products you sell because:

(a) There are simply too many products to sell
(b) Your staff won't be able to handle the pressure
(c) Small is beautiful
(d) You don't have enough office space

7. Families holidaying with children mostly like:

(a) Sitting around the hotel while the children swim in the pool
(b) Going to the local theme parks and attractions
(c) Leaving the children in the hands of the hotel's kiddie's corner while the parents do their own thing
(d) Becoming adventurous and trying some local cuisine

8. Destinations are trying to broaden their activities for visitors because:

(a) They want to increase the visitor length of stay
(b) It makes the destination look good
(c) It attracts investment in the destination
(d) It creates jobs
9. In order to find the right product for the right customer, travel agencies need to:
(a) Maintain a broad range of products in their portfolio
(b) Research their local neighbourhoods and customer bases
(c) Conduct surveys and mail out questionnaires
(d) Become part of an agency chain

10. The best way to build a successful travel business is by:

(a) Having a vision of exactly where you want to be 10 years from now
(b) Borrowing a lot of money and starting with a very large office
(c) Vigorously undercutting the competition
(d) Hiring a consultant to come and show you how to

12. Good financial management of the company is important because: (a) It helps keep costs down
(b) It allows you to survive downturns in the travel industry
(c) No agency would survive without it
(d) All of the above

13. Good negotiating skills will help your business:

(a) Deal with difficult situations
(b) Deal with complaining customers and lawyers
(c) Get the best possible products and prices
(d) Convince employees to give up a pay increase

14. Counter-staff at travel agencies are called gate-keepers because:

(a) All complaints have to go through them
(b) They can influence choice of destinations
(c) They answer the phones
(d) They control access to management

15. A “moment of truth” is:

(a) When you make a mistake in planning your client's itinerary
(b) Every point at which customers are dealt with, either face to face or over the phone or other points of
contact
(c) Being confronted by your boss about a problem
(d) Having to deal with a lawyer over a legal action

16. Setting up a website provides you with the advantage of:

(a) Being able to seek business opportunities in different parts of the world
(b) No longer having to worry about making eye contact with your customers
(c) Marketing your products without worrying about huge costs
(d) Being able to do what everyone else is doing

17. When they walk into your travel business, customers expect to be:
(a) Left alone to check out the products on your shelves
(b) Attended to professionally and courteously
(c) Given a number and asked to wait their turn
(d) Handed a bunch of brochures listing the latest “special deals”

18. Having staff that are multi-cultural and speak several languages can help:
(a) Broaden the business base and attract new customers
(b) Gain more employment for minorities
(c) Increase business profitability
(d) All of the above

19. Through their websites, international Travel and Tourism organizations:

(a) Communicate their activities and policies
(b) Generate membership
(c) Communicate with the media
(d) Make themselves look modern and in line with the times

20. Many international Travel and Tourism organizations have recently been restructured due to:
(a) Internal politics
(b) A need to make them more productive, focused and efficient
(c) Budgetary shortages
(d) Difficulty in finding staff

21. Having so many international Travel and Tourism organizations:

(a) Creates confusion in the industry about who wants to do what (b) Leads to competition among
them for domination
(c) Allows a broad range of views to be aired at different forums and at different levels
(d) Ensures that principal issues are identified and addressed

22. Regional and national tourism organizations are set up mostly to:
(a) Provide infrastructure marketing and product development support for the private sector to do business
(b) Deal with other branches of governments in solving industry problems
(c) Provide training and research
(d) All of the above

23. Having a Travel and Tourism ministry in a country is advantageous because:

(a) It means high-level of contact and decision-making
(b) The industry gets taken more seriously than others
(c) It encourages politicians to better support the industry
(d) All of the above

24. Provinces, states and cities set up their own tourism promotion organizations because:
(a) The national tourism organizations are not doing a good job
(b) They can market their own destinations in a more focussed manner
(c) They have plenty of money and don't know what else to do with it
(d) Everyone else is doing it

25. Which of the following practices supports the principle of Sustainable Development?
(a) A resort hotel replacing unused guest towels daily
(b) A city raising the price of commuter bus tickets for non-residents
(c) A national park allowing unrestricted access to its nature reserve and wildlife
(d) An airline replacing its fleets with energy-efficient aircraft.

26. Which is an example of responsible travel?

(a) Purchasing imported designer label clothes at a resort
(b) Renting a large jeep vehicle to tour a destination
(c) Staying at a locally owned inn
(d) Collecting local shell fish on the beach as souvenirs
27. What type of tourism behavior is displayed when a restaurant replaces its disposable paper coffee cups
with re-usable porcelain cups.
(a) Green
(b) High impact
(c) Volunteer
(d) Adventure

Glossary
Billing & settlement plan (BSP): Payment system set up by the International Air Transport Association
(IATA) worldwide to process, supervise and regulate payments by travel agents to airlines.

Commission: Fee paid to an agent by a supplier for transacting a piece of business or performing a service,
usually expressed as a percentage of the transaction value.

Computer reservation system (CRS): System set up by airlines to automate bookings and reservations of
airline seats and then “licensed” to a travel agency or tour operator for use in-house.

Corporate Social Responsibility (CSR): The promotion of corporate good citizenship when a private
company or an industry sets policies that work to prevent or minimize environmental damage and
improves the economy and well-being of people.

Ecotourism/ecotours: Tours designed to contribute to the conservation of the sites visited. Ecotourism
generally considers local opinion and tries to assist in the preservation of local customs and ways of life.

Fee-based services: Services provided by travel intermediaries in ex- change for which the intermediary
charges the buyer a fee rather than being compensated by a commission from the supplier of the product
sold. Comparable to fees charged by other professionals for advice.

Frequent flyer program/points: Loyalty programmes set up by airlines to reward frequent flyers with
“points” for repeated usage of their product. These “points” can then be redeemed for additional travel at no
further cost or other rewards like hotel stays or car-rentals.

Global distribution system (GDS): What computer reservation systems became after the airlines began
making them available globally and also included other features like hotels, car rentals and other products.

Gross domestic product (GDP): The market value of a country's output attributable to factors of
production located in the country's territory.

Government advisories: Warnings posted by governments to their citizens about travelling to specific
destinations, usually in the aftermath of political problems, weather disturbances or health-scares.

Incentives: Holidays given as a reward to company executives for meeting sales or productivity targets.
Usually require higher standards of services and facilities than just regular tours available from travel agents.

Outbound tour operators: Companies which operate outbound tours from a country; usually, are also
wholesalers.

Perishable product: Product with a short lifespan. A vegetable or fruit may last a day or two before
“perishing”; in the travel industry, a seat that goes unused today has “perished”; whereas a book or piece of
equipment may remain on the shelf for months before losing its value.

Prorating: Share proportionately according to an exactly calculable factor; to divide to distribute or assess
proportionately.

Product/commodity: Goods or services used to satisfy demand.

Sustainable tourism: Any initiative that aims to create employment and income generation with the least
harmful impact on natural ecosystems and local cultures.

Tour wholesaler: Tour company that combines various components of the travel industry such as hotels,
airlines and local attractions, into a “package” for sale by retailers.

Travel & entertainment costs: The costs incurred by company executives on business trips for travel,
accommodation, communication, and entertainment of clients or customers.

Umbrella organization: An administrative and functional structure over- seeing a number of smaller
administrative units.

Unique Selling Proposition: An element of a product or service that offers a specific benefit, is unique to one
supplier, and is able to attract and retain customers.

Voluntourism: Travel which includes volunteering to work on a project that will improve a destination's
ecological or social well-being.

Wholesaler: Merchant middleman who sells chiefly to retailers, other merchants, etc. for resale or
business use.