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INTRODUCTION TO TRAVEL SERVICES A travel agency is a private retailer or public service that provides tourism related services to the public on behalf of suppliers such as airlines, car rentals, cruise lines, hotels, railways, and package tours. In addition to dealing with ordinary tourists most travel agencies have a separate department devoted to making travel arrangements for business travellers and some travel agencies specialize in commercial and business travel. Different agencies co-ordinated by a Travel Agent

Functions of Travel Agency The functions of Travel Agency depend upon the scope of activities it is invalid in and also size and the location. Some of the major functions of a large travel agency may be classifies as follows 1. Provision of Travel Information: ! This is one of the primary functions of a retail travel agent. A good travel agent is something of personal counsellor who knows all the details the travellers and also the needs and interest of the intending travel. "ommunication plays a key role in providing any kind of information. The person behind the counter should be able to communicate with the customer in his#her language. 2. Preparation of Itineraries: ! A tourist journey is characterized by an itinerary using various means of transportation to link one destination with another. $reparation of different types of itinerary is another important function of travel agencies. A travel agent gives advice to intending traveller on the various types of program which they may choose for their business or holiday travel. The study and realisation itineraries call for a perfect organization as also knowledge of the desire of the client. . !iaison "it# provider of services: ! %efore any form of facilities is offer to the client by a travel agent contract have to be made with the providers of various services. These include transport companies, hotels properties, and the providers of surface transportation like car rental, coaches, and local transport for sightseeing and also for general services re&uirements. The work carried out under these heading is mostly done by the owners or the senior employees of agencies concerned. $. Planning and %osting Tours: ! This job is very interesting and at the same time very challenging. The job cost for a great deal of incentive and advance knowledge. &. Tic'eting: ! Selling tickets to clients using different modes of transportation like air, rail and sea is another function of travel agency. It re&uires though knowledge of schedule, fare of various modes of transportation.

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(. Provision of Foreign %urrency: ! To intending travellers is another specialized activity of travel agents. The knowledge of converting for currencies is an essential re&uirement for the staffing dealing with such responsibilities. ). Insurance: ! %oth for personal and belonging is yet another important activity of travel agencies. *+!, +F T*A-,! A.,/%0 Travel Agency is a commercial enterprise where traveller can secure information and e'pertise, get impartial counselling, and make arrangement to travel by air, sea or land, to any point in the world. It acts as an agent of the different suppliers in the tourism industry (also known as travel components), namely the transportation companies, hotels# resorts, car rental companies, tour operators and sightseeing companies. The role of travel agencies can be listed as *. $rovide necessary travel information to the general public. +. $lan itineraries for potential tourists and tour operators in their region, including arranging hotel accommodation, surface transportation, and sightseeing tours and also general servicing re&uirements. ,. Acting as a liaison with serving providers, that is, maintain constant contact with providers of service. -. .egotiate favorable rates with surface transporters to provide coaches for airport, transfers, sightseeing tours and inter!city travel. /. .egotiate with hotels for favorable room rates and meal prices. 0. .egotiate with art centers for cultural entertainment. 1. "o!ordinate with various tourists centers for sightseeing tours. 2. 3evelop comprehensive local packages for tour operators and individual travelers. 4. $rovide information on national and international tours. *5. Arrange international and domestic airline, railway, bus, river boat, ocean liner tickets to their clients. **. Arrange hotel accommodation. *+. Arrange city and inter!city tours. *,. Arrange surface transportation including limousines and coaches. *-. 6rganizing local sightseeing tours. */. 7ake arrangements for passports and visas for foreign travel. *0. 7ake arrangement for provision of foreign currencies on behalf of intending travelers. *1. Arrange insurance cover for personal accident risks and risk for loss of baggages. *2. Arrange travel guides, car rentals etc. 1+2*%, +F I/%+3, F+* T*A-,! A.,/%0: To facilities the tour of travel is the objective a travel agency. 8or the purpose, they co!ordinate the travel related enterprises and customers. They develop the concept of pleasure of tour. They want to reward for the pleasure they provide. A travel agent9s sources of income are as follows *. %ommission on 1ale As a commission agent collects commission by sailing the principal9s services such as hotel, airlines, transport. +. %ommission on 1ervices provided: the travel agents collect commission from the customers on the facilities, services provided or by coordinating the customers and principals. ,. %ommission from Au4iliary: The travel agency also earns au'iliary services provided as depends as insurance, travelers: che&ue, etc. -. Income ,arned from 1#ort! term Investment ! Travel agents may invest money received from his customers as deposits and earn profit. $rofit from the sale of his 6wn Tours ! 7any travel agencies operate their own tours such as sightseeing tour, e'cursions, hike, etc. and make profits.
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+*.A/I5I/. T*A-,!: There are various steps involved from the time of traveller visits a travel agent to buy a ticket until he returns back home after visiting a place of his choice. 6rganized travel by a travel agency can be two types (i) single client (ii) group client. In order to affect the journey, the following main elements need to be considered study of the journey, estimate of e'penditure, e'ecution of the journey and presentation of accounts. T+2* +P,*ATI+/1 Tour operator: Tour operators are an important part of the travel industry, and while they often work closely with travel agencies, they are, from a legal perspective, distinctly different. ;ospitality managers will generally encounter both travel agents and tour operators in their normal course of work. Tour operator is the broad term used to identify those varied companies that purchase travel services in large &uantity and then market those same services to individual travellers. In many cases, tour operators, because they purchase travel services in bulk, are able to buy them at a significant discount, add a mark ! up that represents the tour operator : s profit margin, and still offer travellers lower prices for these travel services than the individual traveller could negotiate on his or her own. Sometimes travel agencies serve a dual role and also function as tour operators. Tour operator and travel agent A tour operator is not an agent, but rather is the principal in the provision of travel services. As a result, the tour operator is directly responsible for the delivery of the travel services they have marketed and sold, while agents are generally not held responsible, unless they knew or should have known at the time of the booking that services could not be delivered as promised. Tours can be *. $ackage tours that may include accommodation, transport, meals, a guide, admission fees, etc < +. 8ully or partially escorted ,. =roup or individual tours -. >'tended or day tours and /. %ased on the chartering of transport. *elations#ip bet"een travel operators and travel agents:
PRINCIPALS Airlines Surface Transporters otels

T!"R !P#RAT!RS

Tra$el A%ent

Tra$el A%ent

Tra$el A%ent

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Types of tour operators: ?ithin the Travel and Tourism industry there are - main types of tour operators. These are Mass Market operators, Specialist Operators, Domestic Operators and Incoming Tour operators. *. A Mass Market tour operator are companies such as Thomas "ook and Thomson who deal with any type of holiday and they are able to put together packages that suit the customers. A mass market tour operator also supplies their customers with accommodation, transfers, transport and e'tra services. +. A Specialist operator is companies such as Cox and Kings. These type of tour operators are alot more flexi le for the customer. This is ecause these tour operators are a le to cater and specialise to !hat the tourists interest are for example, someone !ants to go on a cycling holiday, they can tell the operator !hat they !ant in their holiday and the operators can do there est to get it for their customers. ,. A Domestic tour operator is companies such as "a#en "olidays that are holiday destinations !ithin your o!n country. -. An Incoming tour operator are companies such as >van >vans Tours. Company$s like these supply holidays and different products for tram for an o#erseas #isitor to %ritain. 3ar'eting of pac'age tour: $ackage tours are e'cursions or holidays which @packageA a variety of services together to make a single @combinedA trip. "ommonly they combine such things as transport, accommodation and meals. They may also include the provision of a tour guide and#or leader. Tours can be long or short in duration and distance. They may be a one!day or overnight package, or they could be a period of a month or more. $ackaged tours typically include All transfers between airports#harbours#stations and hotels Twin share tourist and first!class accommodation with private facilities, as specified "ruises Bental cars >ntrance fees to attractions Insurance Tickets for entry to events or attractions Insurance T*A-,! A/D T*A/1P+*T Travel and tourism industry is undergoing continuous transformation< players are still enjoying many degrees of strategic freedom and inherent growth rates. 3eregulation, consolidation, and privatization are opening new opportunities for growth, cooperation or alignment with other players while simultaneously raising the bar for operational performance and profitability. Travel providers, such as airlines, railways, and ferries, face a separation of business models in which the key success factors are often conflicting. To achieve greater competitive advantage in this environment, these companies must overcome many challenges to transform themselves and survive. The transportation (or logistics) sector, a very large and growing market, includes these pure modal transportation, intermodal connections, and special networks. %ecause nobody can be number one in the total logistics business, most companies struggle to carve out the right segment in order to be successful. Tourism and Airline Transport Introduction: Transport is a part of service and hospitality of a nation, this facility is very important for the movement of people to go somewhere. There are several mode of transportation such as road, rail, water and also by air. All that kind of transportation is interplay each other to support the service and hospitality provided for tourist in that nation. .ow, the world is become more borderless, movement of people become aggressive
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and faster from the nearest place to the longest distance destination. %ecause of geographical shape of this wonderful world, the movement of people must be in various mode of transportation and the most suitable and relevant transport is air transportation. Airlines industry is a segment of travel industry that deals with air transportation from one destination to another destination. Air transport industry is considered as a huge international industry mainly because of the
demand for air transport of both passengers and goods, due to which new airports are being built all over the world. =lobally, the Air transport sector has contributed a large amount to the economy. Air transport also plays a major role in shipping of high value goods that need to come to market &uickly for e'ample, agricultural products.

6ver the last *5 years, the airliner capacity has grown significantly. India is ranked as the 4 th largest aviation market in the world, as per the research report given by B."6S. And between +5*5 and +5*,, the civil aviation market in India is e'pected to reach a "A=B (compound annual growth rate) of more than *0 percent. T#e 1ervices 3ar'eting Triangle The services marketing triangle shows the three interlinked groups that work together to develop, promote and deliver services. These key players are labelled on the verte' of the triangle shown below.
"67$A.C Internal marketing @>nabling promisesA >'ternal marketing @making promisesA

$B6DI3>BS I.T>BA"TID> 7ABF>TI.= @Feeping $romisesA

"EST67>BS

Services marketing can be e'plained with the help of the Service Industry Triangle. There are three entities in the whole transaction process. 1ervice mi4 of Airlines Airlines provide different types of services. They include the following *. $assenger services! .ational and International +. =oods carrying services ,. 7ail services -. Social services!floods, earth&uakes, accidents and other natural calamities. /. 3efense air services All these operations are assisted by two entities established to cover two major functions (i) 6perational! covered by =overnment of India (=6I) owned services!Indian Airlines, Air India Internationals and other private operators (ii) Infrastructural! covered by .ational Airport Authority (.AA) and International Airport Authority of India. T6, ) P71 +F 3A*8,TI/. 3I9 Product 3i4 =etting the product right is the single most important activity of marketing. If the product isn9t what the market wants, no amount of price adjustment or brilliant promotion will encourage consumers to buy it. The
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airline product is &uite a comple' one since it comprises of a service of incorporating the temporary user of airline seat and certain tangible products such as free flight bags or a free bottle of duty free spirit to encourage booking. The airline product includes of two types of services *. on the ground services, +. In!flight services. The on!the!ground services include a convenient airport with car parking facilities, duty free9 shopping &uick and efficient checking of baggage, efficient service at reservation counter, transport to the airport, etc. The service provided inside is intangible and is highly variable. The airhostesses are trained to provide polite, warm and courteous service. The courteous service that the representatives at the baggage counter, reservation counter provide goes a long way in developing customer loyalty. The travel agents of the airlines also need to be efficient and polite. Price 3i4 $rice plays as much a tool of marketing as promotion plays a critical role in the marketing mi'. The concept of 9fair price9 is paramount. %uyers judge whether a product is fairly priced by seeing whether it represents value for money.

%A:

Factors to be consider fi4ing prices: *. The demand level of air traffic +. The supply of aircrafts and their using time in a day ,. Infrastructural facilities available for safety operations -. Bunning e'penses such as fuel, crew e'penses, e'penses on core and peripheral operations /. Seasonal fluctuation of air traffic 0. 3epreciation on aircrafts 1. Some acceptable percent of contingency e'penses 2. Strategies of competitors in price fi'ing model. 4. "apital repayment in the long run. Pricing 1trategies: 1. Premium Pricing: The airlines may set prices above the market price either to reflect the image of &uality or the uni&ue status of the product. The product features are not shared by its competitors or the company itself may enjoy a strong reputation that the 9brand image9 alone is sufficient to merit a premium price. 2. -alue for 3oney Pricing: The intention here is to charge the average price for the product and emphasize that it represents e'cellent value for money at this price. This enables the airline to achieve good levels of profit on the basis of established reputation. . %#eap -alue Pricing: The objective here is to undercut the competition and price is used to trigger the purchase immediately. Enit profits are low, but overall profits are achieved. Air India and Indian Airlines have slashed their prices to meet the competition of private airlines so that they can consolidate their position in the market. -. Differential pricing. There are three classes The 8irst "lass, The >'ecutive or %usiness "lass and The >conomy "lass. 8ares for each class are different since the facilities provided and the comfort and lu'ury level is different in each
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class. Seasonal fares are also fi'ed, fares rise during the peak holiday times. &. !o"-cost Pricing: ?ith the advent of the low!cost airlines in the Indian aviation industry, a different low!cost flying concept has come up. Since these low!cost airlines are trying to woo the customers by providing air travel in e'ceptionally low prices, a price!band kind of pricing has to be designed. In low!pricing strategies, the airlines provide very low prices for the flight tickets. Also, they prices are made cheaper by booking the tickets long before the flight date. (. AP,9 Fares: In this scheme, people are given very cheap rates only if tickets are booked at least before the specified time period. %ut the draw!back here is that if the booking is cancelled, a substantial amount of money is not returned. Place 3i4 Enderstanding what, where, why, when, and how the target market buy, is the first step in designing the marketing channel. The marketer must understand the service output levels desired by the target market and types and levels of services that the people want and e'pect when they purchase the service. The airline industry has adopted different distribution channels for marketing their services to their target audience. 6n the ground there are many ticket counters with computerized +-!hour reservation systems. They have many specially designed check!in counters for club and premiere passengers. There are two principal methods of booking seats on an airline. The first is the group of traditional method such as the phone, fa', and email. The second G increasingly popular method of reservation is the online booking method. The place mi' of airlines consists of mainly the distribution channels. The 8our methods of distribution are as following *) %onsolidation: The direct sale of tickets from airport to the passenger on the airline desk. +) Tour +perator; Travel Agent: "ustomers approach travel agents or tour operators who book the tickets from the airline and take commission. >.g. S6T" ,) Affiliated "it# companies: As the name defines, airlines gets affiliated with companies who carry all its trips with a same airline who in turn gives special discounts or offers in return. -) Direct t#roug# #ome leased system< e.g. phone, fa', email and also online e!booking. Promotion 3i4 The formulation of an ideal promotion mi' is essential to inform sense and persuade the users. In the Indian perspective, we need more creative efforts because the potential users in a majority of the cases don:t prefer to use air services. The business magnets, e'ecutives, politicians, actors, high spending tourists etc are some of the users of the air services. The users appears to be more conscious, aware of their rights and in a majority of the cases are found to be sophisticated and therefore the promotional efforts have to be creative. 7any airlines are facing financial crunch, it is pertinent that they make optimum use of different components of promotions. Advertising: Airlines need creative advertisements to promote their business. In the view of rising cost of inputs and the increasing impact of worldwide economic depression on the airlines, advertisements should be budget optimistic vis!H!vis optimal. The telecast media and print media are important for promoting the air business.
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Publicity: $ublicity is an important component of promotion mi'. It is a process of persuasive communication. It is very instrumental in sensitizing the persuasion process provided the media people, public relations officers provide their help. Strengthening the $B activities is essential to promote airlines business. The $B6, Beceptionist, Travel agents, 7edia people are very important people in publicizing the business. 1ales promotion: The sales promotion measures are meant for both the related sources channelising and using the business, such as the travel agents, tour operators and all of them who process the services and the passengers and business houses who use the services. The travel agents contribute a lot to the promotion of airlines business. In addition the tour operators, the frontline staff also must be given priority. ;ence they should be offer some incentives this will motivate them to promote the product. The user also deserves incentives. The incentives may be in the form of concessional services, a small gift etc. =ord of mout# >%ustomer !oyalty !adder7 This happens to be an important constituent of the promotion mi' in which the promoters act as a hidden sales force. The satisfied groups of users, opinion leaders narrate outstanding merits or salient features of services used by them. People 3i4 In the service industry, service personnel come in direct contact with their customers in the course of production and consumption of the services. %ecause people provide most services, the selection, training, and motivation of employees can make a huge difference in attaining customer satisfaction. Ideally, employees should e'hibit competence, caring attitude, responsiveness, initiative, problem solving ability, and goodwill. 7any service organizations trust their people enough to empower their front!line personnel to resolve customer problems. Process 3i4 The process of airline service lays emphasis on the involvement of channels, front line staff, travel agency offices, offices of the tour operators or so form where the services flow G reach to the ultimate users. The process begins at the time of reservation goes on to the confirmation of seats. 8or e.g. "omputer reservation system of Indian Airlines enables any reservation re&uest from anywhere in the world to be auctioned in minutes. The reservation facility is accessible through all!major computerized reservation system of the world. P#ysical ,vidence $hysical >vidence refers to the environment in which the service is delivered and where the service industry and customer interact. The aircraft by itself, the seating configuration meant to be comfortable and spacious, and the in!flight food provide physical evidence to the airline service. The in!flight food is another, important aspect, a wide selection of meals is offered to the passengers. $assengers are re&uested to indicate their reference at the time of reservation itself. %ooking offices, ticket counters, etc. must be spacious and well designed with good looks. 8urther the air crafts must be given good e'teriors and must be maintained wel*. The aircraft must have elegant interiors and must be incorporated with all basic facilities. The aircrafts must have well designed seats with more leg room especially in the business class. Tourism and rail transport The railways may be considered as the most powerful means for mass travel. Trains are perceived to be the safe and ine'pensive. In India, railway provides the principle mode of transportation for freight and
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passengers< it brings together people from the farthest corners of the country and makes possible the conduct of business, sightseeing, pilgrimage and education. 8urther, the role and significance of railway transport in the country economy in particular Indian economy is e'ceeding important on many considerations! historical, economical, environment, social and political. Indian railways commenced their operation in April *2/,. 3uring the plan period (upto *5 th 8ive Cear $lan) Indian railways have grown substantially. The increase in rail transport output has been caused by more intensive utilisation of the available assets, technological up gradation and improvement in productivity. The major issues of railways are developments are *. Technology up gradation +. >'pansion of network ,. 8inancial arrangement -. "apital restructuring /. Tariff policy 0. $assenger services and freight movements. 1ervice 3i4 7ajor services are! (i) $assenger Traffic (ii) 8reight carrying In passengers: traffic, numbers of subservices are provided. These sub!services are based on time, passenger classification and special services. 6n time basis (i) Super fast e'press (ii) fast e'press (iii) fast passenger trains and (iv) Shuttle trains are in operations. As per passengers 8irst "lass, A#" coaches and II class coaches. Ender special category chartered trains are run for special purpose travel. Product 3i4 In railways, product is mainly the types of services they render to the public. 7ain services are providing passenger service and freight carrying. Although railways being public monopoly organisation, it faces competition from road transport corporations and inter road transport agencies. The following table depicts the product mi' of railways. 7ail#>'press, A"#I "lass and II "lass Sleeper coaches, $assenger $assenger train, 7BT concessional and free service for Traffic certain class. 8reight traffic Bevenue earning %ulk carrier service Bailway 7ail "ommunication carrier throughout the nation. Services $ipe IJine In parts of E$, =ujarat and Assam services Advertising Selling different sensitive points consultancy Pricing t#e services In every production activity pricing is a sensitive aspect. There are number of pricing methods like cost plus, one prices policy, skimming the cream and penetrating price policy etc. certain following aspects are to be consider while fi'ing the price for its services 8are and freight structure Subsidised prices The average receipt for passenger km and average receipt per tonne km. Enremunerative lines are re&uired to be regulated. Enproductive administrative e'penses are to be optimised.
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Promotion 3i4 Indian railways being a public monopoly institution, it will not face competition from any other railways. %ut it is facing stiff competition from roadways. Begarding advertising, railways have to look for persuasive communication. 8or this the have adopted print, broadcast and telecast media etc. %y adopting publicity mode, railways develop good relation with the prospects as well as regular commuters. Sale promotion mode also facilitates the users to understand the type of facilities and services e'tended by railways. 6ther channels such as personal selling, network marketing etc., provide strong base for developing an effective information system regarding railway services. T+2*I13 A/D *+AD T*A/1P+*T Boad transport system is the most popular medium of transport in India. In fact, travelling in various parts of India is very easy, if you are aware about the transportation facilities offered by state road transport corporations including undertakings or institutions authorised by the 7inistry of transportation government of India or by the state government authorities. All the government authorised transport organisations have their own operational style and they try their best to provide hassle free services to public. Almost all the Indian states have their own state road transport corporation, providing transport facility within the state and the neighbouring states. Apart from the public transport corporations, private operators also play a major role in fulfilling the needs of the public. Some of the state transport corporations offer city bus services and also to some of the adjoining areas of the city. The city bus services provide comfortable, affordable and on!time service to the public. Importance They can easily connect any part of the country, unlike railways. Boad transport is complementary to railways by providing feeder service. It is more fle'ible in operation compared to other modes of transport. Boad transport can provide door to door service. The chances of delay, damage or loss are less in road transport. This is a better means of transport to carry perishable articles like vegetables, milk or fruits to reach market places well in time. This mode of transport is more important in defence services of the country. 1ervice 3i4 Service mi' of road transport contains the following< i. $roviding passenger services ii. =oods carrying services iii. 7ail services iv. Special services 3ar'eting 3i4 7arketing mi' of transport organisations consists of product offered, price of each product, promotional measures adopted to reach the target customers, type of delivery systems, people analyses and process. Product 3i4 In product mi' of passenger traffic i. Begular passengers commuting to short and long distances.
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ii. Special package tours conducted by both public and private sector operators for the purposes of (i)$iligrimage (ii) sight seeing holiday tours and (iii) other special purpose tours.

In cargo traffic i. "arrying goods to destinations by trucks of different size and capacity, which is a regular and routine feature in cargo carrying. ii. %ulk carrying of special items, like gas, milk, petroleum products and other industrial raw materials and finished goods. iii. 7ail services. Pricing policy In pricing these services, basic and common policy adapted is the @cost K margin.A "ost includes, the vehicle cost less depreciation, fuel charges, crew e'penses, road service charges payable to concerned authorities, rest room e'penses, special services offered for travel and miscellaneous overheads. %esides this, special price policy will be adopted for specific services. Promotion Policy There are different promotional channels. 6ut of these, advertising is the effective tool in promoting transport services. $rint media, television, short films for tourism promotion are the different modes adapted in advertising mode. $ersonal selling, telemarketing, publicity, sales promotion, network marketing are other mode through which promotion of road transport services can be made. +t#er 3i4es ?Place< People and Process@ Begarding other sub!mi'es of marketing mi' or road transport services, efficient delivery systems are to be developed. This refers to the proper location of service delivery points and people involved in delivering the road transport services. It is also highlights that delivery process should be user!friendly. Tourism and sea transport Ship transport is watercraft carrying people or goods. Sea transport has been the largest carrier of freight Ship transport can be over any distance by boat, ship, sailboat or barge, over oceans and lakes, through canals or along rivers. Shipping may be for commerce, recreation or the military. "ontainerization revolutionized ship transport in the *405s. ?hen a cargo is carried in more than one mode. It is called intermodalis. The sea transportation can be divided into the following two categories. *. "ruise Ship a. "ruise ships are passenger ships used for pleasure voyages, where the voyage itself and the ship9s amenities are considered an essential part of the e'perience. b. "ruising has become a major part of the tourism industry, with millions of passengers each year as of +550. +. 8erries a. Ferries are a form of transport, usually a boat or ship carrying passengers and sometimes their vehicles. b. 8erries are also used to transport freight and even railroad cars. c. 7ost ferries operate on regular, fre&uent, return services. d. A foot!passenger ferry with many stops, such as in $enang, is sometimes called a waterbus or water ta'i.
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