Lecture #1 The structure and role of the public sector in tourism

Lecture #3
Selling and distributing travel and
tourism
Plan & objectives:
• explain the role of travel agents as a
component of the tourism industry and
their relationship with other sectors
• identify the functions performed by an
travel agent
• be aware of the constraints and threats to
agents’ operations and evaluate
alternative solutions for their survival.
Definition
• The UNWTO has defined travel
agents as retailers to leisure and
business travellers, selling flights
(charter or scheduled),
accommodation, car hire, foreign
currency, travel insurance and
other travel services..
Definition
• A travel agent makes all the
necessary travel arrangements on
behalf of the client, using the
information and facilities available
to professional travel agents,
locally and internationally.
Figure #1. The position of travel agents in the chain of distribution
Types of Organisation
• Tour operators
• Airlines and
airports
• Travel agents
• Business travel • Regulatory
bodies
agents
• Accommodation • Public sector
organisations
providers
Travel Agents
• Travel agents provide the link between
tour operators and customers
• Range from large national chains to
small independents
• Leisure travel agents provide services
to holiday destinations
• Business travel agents provide services
for commercial consumers
• Most travel principals continue to
rely, to a greater or lesser extent,
on travel agents as an important
source of distribution and
retailers continue to play a key
role in the structure of the
industry. Their share of business,
however, is declining, even in the
key area of inclusive tours, as
customers turn to booking direct.
Historical context
Agents selling travel arrangements have been
in existence in the UK for well over 100 years.
Indeed, the oldest – now the tour operator Cox
and Kings – traces its origins back to the
eighteenth century. The travel agent’s principal
role in earlier times was to sell shipping
and rail services, but, with the coming of air
transport and the development of the package
tour business after World War II, their product
range expanded.
Historical context
Before World War II, shipping
companies had been able to provide a
good reservations and ticketing service
direct to the public, with sales outlets in
their city offices and at leading
ports. Railways and coach operators
had similarly established city center
terminals from which they could
dispense tickets direct to the public.
Historical context
When the airlines arrived on the scene, however, their
airport terminals were situated well away from centers of
population and, as a convenient network of travel agents
was in place by that time, they did not face the same
pressure to establish their own sales offices. Although most
leading airlines did establish a main selling office in capital
cities and many also opened offices in other leading cities,
the new demand for air tickets encouraged travel agents to
expand their distribution outlets further. With the
deregulation of air travel and a greater willingness on the
part of passengers to book direct, many airlines closed their
town center sales offices. Travel agents, too, have
experienced a fall in air ticket sales in the past few years.
The role of travel agents
The travel agent’s role is dissimilar to that of
most other retailers, in that agents do not
purchase products for resale to their
customers. Only when a customer has
decided on buying a particular holiday do
agents approach their principal on their
customer’s behalf to make a purchase. The
travel agent does not, therefore, carry stock.
This has three important implications for
the business of travel distribution:
The role of travel agents
the cost of setting up in business is
relatively small compared to that of
other retail businesses
agents are only able to sell products
made available by the tour operators
or principals, so, in times of peak
demand, they may be competing with
other agencies to find the products
that the customers wish to purchase
The role of travel agents
 agents are not seeking to dispose of
products that they have already
purchased, so may display less brand
loyalty towards a particular product
or company.
Arguably, the main role of a travel
agent has always been to provide a
convenient location for the purchase
of travel
• A travel agent is a professional who specializes
in making travel arrangements on behalf of
other people. At times, the services of a travel
agent can be extremely useful; travel
agents often have access to cheap fares, hotel
deals, and other travel perks which average
consumers cannot get on their own. A travel
agent may choose to work freelance, or as part
of a larger travel agency. Some agents specialize
in a particular field of travel like business
travel, exotic travel, or honeymoon
arrangements. In some cases, a travel agent also
provides overseas support and referrals, which
can sometimes be incredibly useful.
• At a minimum, a travel agent can book
tickets for people who wish to travel to
a particular destination; most travel
agents focus on air, rail, and sea travel
and the myriad options available,
including varying classes and routes.
The agent may also arrange a rental car
and accommodations, if desired, along
with services like a pickup at an airport
or dock, or a gourmet meal waiting on
arrival. Travel agents also have a lot
more to offer, however, thanks to their
extensive experience in the industry and
as travelers themselves.
• For example, a travel agent can offer recommendations
about vaccinations and preventative medicine regimens
which may be required for foreign travel. Travel agents
can also help to organize visas and passports for their
clients, ensuring that they move smoothly during their
trip. Some travel agents can also recommend language
classes and other preparations for a trip, while others
might have helpful hints and tips for their customers to
ensure that the clients enjoy the trip.
• A specialty travel agent who focuses on something like
business travel may include things in a travel package
which are tailored to businesspeople, such as specially
organized tours, or accommodations which include
needed services like Internet access. Travel agents sell
themselves on their ability to organize complex and fun
trips, whether they be whirlwind tours through Europe
or leisurely luxury cruises.
• Employment in this industry is waning,
because Internet sites allow consumers to
access many deals directly. However, in a
crisis a travel agent can be quite useful; for
example, upon the death of a loved one,
someone might prefer to allow someone
else to organize travel arrangements. A
travel agent is also experienced in all of the
quirks of the travel system, and a trip can
sometimes run more smoothly with a travel
agent at the helm.
• An excursion short trip somewhere, usually for one
day or part of a day.
• A economy seat is the cheapest type of seat on a
plane or train. The most expensive type of seat is
called first class Between these two, there is business
class.
• Mass tourism refers to a large number of people that
travel for their vacation, usually over long distance
• A cruise is a journey on a ship for pleasure, especially
one that involves visiting series of places.
• A safari is a journey taken in order to watch or take
pictures of wild animals.
• Ecotourism is the business of creating & selling
vacations that give people the chance to learn about a
natural environment & which cause little damage to
the environment itself.
Make a sentences from the given
words
Acclimatize
Alien
All-inclusive
Business class
Check-in
Deport
Emigrate
Consulate
Work permit