Principles of Travel and Tourism Operations and Aviation

School of Distance EducationBharathiar University, Coimbatore - 641 046

Principles of Travel and Tourism Operationsand Aviation Safety

BBAAirline & Airport Management

(Annual Pattern)IIIrd Year

Paper No. 13

Author: V V Prasad

Copyright © 2014, Bharathiar UniversityAll Rights Reserved

Produced and Printedby

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SCHOOL OF DISTANCE EDUCATIONBharathiar UniversityCoimbatore-641046

Page No.

UNIT I

Lesson 1 Travel and Tourism 7

Lesson 2 Scope of the Travel and Tourism 25

UNIT II

Lesson 3 World Tourism 47

Lesson 4 IATA 65

UNIT III

Lesson 5 Hotel and their Rating 87

Lesson 6 Types of Rooms and Bedding 104

UNIT IV

Lesson 7 Aviation – A National Security Asset 125

Lesson 8 Conferences on Air Law 141

UNIT V

Lesson 9 Hijacking 153

Lesson 10 Terrorism 168

Model Question Paper 187

CONTENTS

PRINCIPLES OF TRAVEL AND TOURISM OPERATIONS AND AVIATION SAFETY

SYLLABUS

UNIT I

Travel and Tourism: Principles – Scope and Operations – Perception of Travel worldwide – Perception ofTourism worldwide – India a tourist destination – Indian States, Capitals, Public holidays, Banks – ImportantFestivals and Tourist attractions – State Tourist Organisations – Important Travel Agents & Tour Operators.

UNIT II

World Tourism: Important Countries/Capitals/Currencies/Exchange – World Tourism Attractions – IndianTourism – Types – Transportation Commercial Aviation – Air Taxi Operations – Private Operation – AirportHandling Functions of IATA-ICAO – Aims and Objectives – IATA Geography and Global indicators – TravelAgent Management – Travel Partners.

UNIT III

Hotels and Star Ratings: Resorts, Boarding and Lodging houses – Rating Systems and Classifications – HotelProducts, Facilities, Services, Room types, Bedding Types, Meal Plans Cancellations, Currency – Fluctuationsand Commission Policies IATA Approved Travel Agency Appointment and Control – Bank guarantee – IATABilling and Settlement Plan – Credit Period – Customer Service – Service Provider – Training and Developmentof Travel agent – GDS.

UNIT IV

Aviation – A National security asset: Importance of Air transportation – Airways – Development of theAviation industry – Deregulation – Consequences of 9/11 to the industry – Emergency Funding – ProtectingPublic Air transportation – Hijacking – Security Measures – International Prospective – Trend begins – DiplomaticConference on Air Law – Ministerial Conference on Terrorism – Financing of Terrorism – United Nations –ICAO/ECAC

UNIT V

Aircraft as Missiles: Early Hijackings – Terrorist Hijackings Spread – Initial Public response – Cockpit Doors– Profile of a Hijacker – Sky Marshal Program/Federal Air Marshal Program – History of Significant Airhijackings since 1972 – Terrorism – Middle East – Rival Claims – Palestinian Liberation Organisation – AbuNidal – Hamas – Iranian Support of Terrorism – Hezbollah – Afghanistan: Osama Bin Laden – Europe – Japan– Peru – Russia – US – Domestic Terrorism – Nuclear Terrorism.

5

Travel and Tourism

UNIT 1

UNIT I

6 Principles of Travel and Tourism Operations and Aviation Safety

7

Travel and TourismLESSON

1 TRAVEL AND TOURISM

CONTENTS

1.0 Aims and Objectives

1.1 Introduction

1.2 Principles of Travel and Tourism

1.3 India a Tourist Destination

1.3.1 Tourist Attractions

1.4 Indian States, Capitals, Public Holidays Banks that attract Tourist

1.4.1 Top States

1.4.2 Top Cities

1.4.3 Top Monuments

1.4.4 Top Religious Attractions

1.4.5 Top Wild Attractions

1.4.6 Top Hill Stations

1.4.7 Natural Attractions

1.5 Public Holidays and Banks in India

1.5.1 Public Holidays

1.5.2 Banks in India

1.6 Top Festivals and Tourist Attraction

1.7 Important Travel Agents and Tour Operator

1.7.1 Travel Agents

1.8 Let us Sum up

1.9 Lesson End Activity

1.10 Keywords

1.11 Questions for Discussion

1.12 Suggested Readings

1.0 AIMS AND OBJECTIVES After studying this lesson, you should be able to:

Discuss the principle of the tour and travel

Describe scope of the tour and travel

Explain India as the tourist destination


1.1 INTRODUCTION One of the largest industries in India is the travel and tourism industry. It provides cultural, medical, heritage, business and sports tourism. The most important goal of this sector is to increase and promote tourism, to give other tourist countries a tough competition, improve and expand present tourism products to make sure that there is a wide scope of the employment for the local people and to grow the economy of India. In this lesson, we give valuable information about a variety of tourist spots in India, modes of transportation, accommodation and approved travel agents.

1.2 PRINCIPLES OF TRAVEL AND TOURISM The Basic principles of the tourism are as follows:

Collaborate: We can achieve more by working in a group than working alone. Working in a group is very important as it not only helps to develop local support, but also tourism requires resources that one organisation cannot provide. The success of the industry depends on the contribution of the government business class people tour operator craftsmen artists and many people in order to enhance the tourism in the country. Regional groups are also helps to enhance tourism. Cooperating in a local arrangement help us to increase pool resources, regional themes, save money and expand our marketing potential. These resources incorporate not only money for advertising campaigns, but also facilities or expertise in tourism, maintenance, the arts or another area.

Find the Fit: To take care of the needs of the local people and the tourist is significant to make sure that tourism provides benefits to everybody. It is necessary to realize the kind and amount of tourism that your society can handle. It is very true that the local priorities fluctuate. So do local capabilities. In simple words we can say that, local circumstances decide that what is the need of the area and the tourism. Programs that succeed have wide confined recognition and meet local needs. They are practical, depends on the talents of particular people in addition to particular attractions, accommodations, and sources of support and interest. One of the reasons that why tourism is growing in India is that travellers are looking for experiences that are distinct and not homogenized. They want to experience the beauty of the particular place. You can form your tourism program on the basis of what is suitable and good for area.

Are there certain times of year or certain places they do not want to share? Can you accommodate group tours? Do sites accommodate at least forty

people at once with amenities such as restrooms, snacks, and a seating area? Can you accommodate visitors with disabilities or special needs? Do the residents of your area want tourism? How will tourism revenues improve life in your area and affect services such

as fire and police protection? What is the maximum number of cars or buses your area can handle? On

roads? In parking lots? Why do they want it?

Make Sites and Programs Come Alive: Interpreting sites is very significant, and so as to make the meaning innovative and exciting. Find methods to take the attention of the visitor’s five senses as you can, because the more they are involved, the more they will hold.

9

Travel and TourismOn average, visitors will remember:

10% of that tourist HEAR 30% of that tourist READ

50% of that they SEE

90% of that tourist DO

Focus on Quality and Authenticity: Quality is an important element for all tourism, and authenticity is important whenever we talk about the heritage or history.

The true and the exciting stories place is the worth telling. The story of the prior generation’s authentic contribution to the history and culture of the place is the one that will interest tourist, as it distinguishes the place from other places on earth. Its authenticity adds real value and appeal. By doing the job right and by focusing on the quality and the authenticity you can give your area the competitive edge.

Preserve and Protect: A community’s historic, cultural, and natural resources are important and often unique.

1.3 INDIA A TOURIST DESTINATION

Development in the Tourism industry in India has seen many phases. At the level of the Government the development of tourist services was taken up in a designed manner in 1956 coinciding with the Second Five Year Plan. The Sixth Plan has started a new era for tourism that has started to be taken as a main instrument for the integration of the social and economic development. But the tourist activities have gained momentum in 80’s. The Government takes numerous important steps. A National Policy on travel and tourism was announced in 1982. Afterwards in 1988, the National Committee on Tourism form a plan to achieve a sustainable growth in tourism. In 1992, a National Action Plan was made and in 1996 the National Strategy for Promotion of Tourism was formulated. In 1997, a draft new tourism policy along with the economic policies of the Government and the trends in tourism development was published for public discussion. But now it is under the process of revision. The projected policy recognizes the roles of public sector undertaking, Central and State governments and the private sector in the development of tourism. The involvement of Local youth, local bodies, Panchayati Raj institutions, non-governmental organisations in the formation of tourism services has also been recognised. The most important development occurred were the formation of the India Tourism Development Corporation in 1966 for the promotion of India as a tourist destination and the Tourism Finance Corporation in 1989 to finance tourism projects.

1.3.1 Tourist Attractions India is a country which is famous for its generous management to all tourists that does not matter from where they are coming. Its tourist-friendly traditions, diverse life styles and cultural heritage and colourful festivals and fairs attracts for the tourists. Many other tourist attractions consist of forest, beautiful beaches, wild life and landscapes for eco-tourism, mountains, snow and river for adventure tourism, heritage trains and hotels for heritage tourism, science museums and technological parks for science tourism; centres of pilgrimage for spiritual tourism. Health resorts, Ayurveda, and Indian yoga are the main attractions for the tourists. The Indian handicrafts mainly ivory, jewellery, brass work, carpets, leather goods, are the main shopping stuff of foreigners. The surveys indicate that nearly 40% of the tourist expenses on shopping is spent on these stuff.


Growth

Domestic tourism is the oldest tourism in India. According to surveys, domestic tourism has grown mainly during the previous one decade. It raised from 64 million in 1990 to 167 million in 1998, thus registering an annual growth of 12.8%.

The tourism growth since independence is very remarkable. It was just 17000 in 1951. From this level it went to 2.36 million in 1998. Tourism receipts on the other hand have grown at a phenomenal rate of 17 per cent to ` 11,540 crore in 1998 from ` 7.7 crore in 1951.

Economic Impact

Tourism has generated a lot of employment, poverty alleviation and sustainable human development. During 1998-99, employment generation through tourism was estimated at 14.79 million.

Foreign exchange earnings from the tourism sector during 1998-99 were estimated at ` 12,011 crore. Tourism has thus become the second largest net foreign exchange earner for the country.

Tourism also contributed ` 24,241 crore during 1998-99 towards the country’s Gross Domestic Product (GDP).

Thrust Areas

In order to increase the expansion of tourism in the country numerous important areas have been recognized for accomplishment during the Ninth Five Year Plan (1997-2002). The most important is the beach resort, trekking, development of infrastructure, products, trekking, winter sports and wildlife streamlining of facilitation methods at airports, human resource development and facilitating private sector contribution in the infrastructural growth.

Organisation

In India the organisations that are participating in the development of tourism are Indian Institute of Tourism and Travel Management, the Ministry of Tourism with its 21 field offices within the country and 18 abroad, India Tourism Development Corporation, National Council for Hotel Management and Catering Technology, National Institute of Water Sports and Indian Institute of Skiing and Mountaineering.

Boosting Tourism

Some of the current steps taken by the Government to enhance tourism incorporate grant of export house status to the tourism industry and incentives for enhancing private investment in the form of exemption of the Income Tax, interest subsidy and less import duty. The hotel and tourism industry has been announced a high priority sector for foreign investment which entails routine approval of direct investment up to 51% of foreign equity and allowing 100% per cent non-resident Indian investment and simplifying set of laws concerning the sanction of support to tour operators, travel agents, and tourist transport operators.

Celebrations

At the time of the Golden Jubilee celebrations of India as a Republic, the Tourism Ministry has made extraordinary efforts to publicize the tourism potential of India. The Tourism Day was celebrated on January 25, 1998 for the first time. Buddha Mahotsav was organised from 24th October to 8th November 1998. The Wong La Millennium was held from April 1999 to January 2001. A special calendar of events has been formed for highlighting contributions to Millennium events by various places

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Travel and Tourismin all the States. An official website of the Tourism Ministry has also been formed for facilitating propagation of information on tourism.

Constraints

The main constraint in the growth of international tourisms in India is poor infrastructure that includes accessibility to tourist destinations, inadequate air seat capacity, accommodation and skilled manpower in plenty number.

Poor experience of the visitor mainly due to poor hygienic conditions, inadequate infrastructural amenities, and incidents of touting and annoyance of tourists in few places are prime reasons that add to poor visitor experience.

Indian tourism has huge potential for employment generation and earning a good amount of the foreign exchange further giving a boost to the country’s overall social and economic development. Much has been accomplished by way of increasing trains and railway connectivity to important tourist destinations, growing air seat capacity, widening of roads that connect important tourist centres and growing accessibility of somewhere to live by adding up legacy hotels to the hotel sector and cheering paying guest somewhere to stay. But much more has to be done. As tourism is a multi-dimensional commotion, and essentially a service sector, it would be necessary that all parts of the Central and State governments, private sector and charitable organisations develop into lively associates in the endeavour to accomplish sustainable development in tourism if India is to turn into a world player in the tourist sector.

1.4 INDIAN STATES, CAPITALS, PUBLIC HOLIDAYS, BANKS THAT ATTRACT TOURIST

1.4.1 Top States Rajasthan: Rajasthan is one of the most famous and most visited states in India. Rajasthan is the residence of the previous royal Indian Maharajas (kings) and Maharanis (queens). A large number of glorious palaces, havelis, forts, monuments, museums, and other legacies of royalty are present here. The most attractive place of the Rajasthan is the Thar Desert. Travelling through the sandy desert on the camel’s back or on aboard a jeep is an exclusive experience. Camping on the sand under the moonlit twinkling night is a huge attraction for the visitors.

Kerala: Rajasthan is famous for its royal heritage. On the other hand, Kerala is more of nature lover's enjoyment. The state is also known as the 'God's own country’.

The natural attractiveness of Kerala is revitalizing, be it the tea gardens of Munnar or the backwaters of Allepey and Kumarakom. The wildlife sanctuaries – Kumarakom, Periyar, and Wayanad – are abode to both ferocious and beautiful plants and animals. Also, festivals, people of Kerala and their way of life, cuisine, are very diverse from what you will come crossways in Rajasthan.

Goa: Goa is the place that has fun loving spirit. The churches because of their architectural style attract the tourist. Because they stand reminder to the centuries of Portuguese rule that Goa has seen in the past most of the tourist came just to acknowledge its beauty. The beaches are the main attraction here where one can get pleasure from both leisurely walks and adventurous water sports. The New Year celebration and the Goa Carnival in February is the time when most of the tourists visit this state.

Uttaranchal: Uttaranchal is a tourist spot picked up by those who wants adventurous and religious holiday. The snowy peaks, mighty hills and rushing rivers, are very good for an adventure activity like rafting, trekking, and skiing. Chardham, a pilgrimage spot offer one’s soul a peace that one has been wanting for a long time. Its wildlife sanctuaries and ayurvedic therapies gives Uttaranchal a competitive edge.


Himachal Pradesh: Nestling in the arms of the strong Himalayas, the state has a lot of valleys and has a charming beauty. An option of adventure in Himachal is as vivid as it is in Uttaranchal. You can opt for rafting, trekking, skating, skiing, gliding, or any other form of adventure activities. Himachal is famous pilgrimage destination for Buddhists, Hindus, and Sikhs.

1.4.2 Top Cities Jaipur: The pink city of India and the capital of Rajasthan is Jaipur was founded by Maharaja Jai Singh. The main attractions of the tourist are the Jantar Mantar, City Palace, Hawa Mahal, and Amber Fort. The city is also a spot in the royal voyage of the comfort train and Palace on Wheels.

Agra: One of the wonders of the world is in India i.e. in Agra named Taj Mahal which is the main point of attraction for tourist towards Agra. Although, this city is in Uttar Pradesh has many other attraction also to charm visitors after they have visited Taj. The most prominent amongst them is the Agra Red Fort and Itmad-Ud-Daulah's Tomb. The remains of Fatehpur Sikri are definitely the point of attraction for the tourist. Shopping is also high on the list of visitors here.

Khajuraho: Khajuraho is a small place that is situated in Madhya Pradesh and is known all over the for its cave temples. There were firstly 85 temples, yet, today you can see the remains of only 20 temples. Those of you concerned in exploring the educational heritage of India must visit the Khajuraho.

Varanasi: The holiest destinations for the Hindus is Varanasi which is situated in Uttar Pradesh. A number of tourists are coming to Varanasi to worship river Ganges and famous Hindu deities at the ghats and at the temples of Varanasi. A trip to Varanasi is significant for those eager of knowing more about Hindu religion.

1.4.3 Top Monuments Taj Mahal: Mughal Emperor Shah Jehan's utmost contribution to the world – a magnificent mausoleum built in the remembrance of his dearly loved wife Mumtaaz Mahal. A symbol of eternal love in white marble, the Taj, appears among the seven architectural Wonders of the World and accounts for over 3 million tourists every year.

Red Fort: This red-sandstone building was on one time is the fort of the Mughal Kings who ruled India for a long time. A surplus of other palaces in its site and the traditional Meena Bazaar wherever the royalty once purchased make it a day-long tourist trip. Indian Prime Ministers till date gives speech for the nation from the Red Fort on Independence Day.

Jaisalmer Fort: It is the oldest fort since 10th century that witness various generations of Rajas, Traders, Merchants etc. The temples, intricately imprinted havelis and a sense of the existence in the dry arid region make Jaisalmer a must-visit for visitors. Camel and jeep safaris add to the enthusiasm all the more.

Hawa Mahal: Jaipur's Hawa Mahal is an architectural wonder, be applicable the appellation well with its great amount of windows that flow tranquil gentle wind and its seem, that resembles more a cascading screen than a building.

1.4.4 Top Religious Attractions The Golden Temple: Sikh religion does not need any introduction to their holy pilgrimage seat. Sri Harmandir Sahib or the Golden Temple, named so because of the typical golden hue that the tombstone is bathed in, is laced by the equally sacred waters of the Amrit Sarovar or the Pond of Nectar.

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Travel and TourismMeenakshi Temple: Lord Shiva and his wife Meenakshi are the reigning deities here in this classic, yet traditional representative of Dravidian place of worship structural design with its gopurams (large sculpted gateways) and mandapams (multi-pillared halls).

Akshardham Temple: Along with the banks of the Yamuna river banks is this 2 billion architectural grandeur – an initiative of the Bochasanvasi Aksharpurushottam Swaminarayan Sanstha (BAPS). It is a fine blend of technology and faith. Akshardham Temple complex is complete with a majestic 11 ft. statue of Lord Swaminarayan, 20,000 other statues, an IMAX theatre, artificial lakes and a complex musical fountain.

Lotus Temple: The Lotus Temple is the meditative safe haven that draws tourist from across the world irrespective of caste and community.

1.4.5 Top Wild Attractions Ranthambore National Park: One of Rajasthan's leading wildlife sanctuary, Ranthambore National Park is famous Tigers and also for a wide range of the floral variety. The Ranthambore Fort is present in this park.

Periyar Wildlife Sanctuary: The well-known sanctuary of Kerala, Periyar is which has a large herd of elephants and more than 300 species of birds and more than 120 species of butterflies greet visitors. The park also has tigers which you can be seen during your trip.

Jim Corbett National Park: It is the first National Park and Tiger Reserve of India, Corbett National Park in Uttaranchal provides visitors many chances to spot wild animals and birds. Spotting tigers, yet, needs patience as the king of the forest doesn't gives regular look.

Gir Wildlife Sanctuary: Gir Wildlife Sanctuary in Gujarat is the last natural habitat of Lions of Asia that attracts tourist. Other than Lions, the park is also a home to three hundred species of birds.

Kaziranga National Park: The Kaziranga National Park in the Jorhat district of Assam is the only place if you want to see the one horned rhino. The park also has a vigorous population of wild buffaloes, tiger, and elephants. Rare class of birds for example hornbill is also a main drawer of tourists.

Top Luxury Trains Palace on Wheels: This is possibly the most comfortable and famous of all the lavishing trains in India. The Palace on Wheels starts its royal trip from the capital of India, Delhi and takes its travellers on an unforgettable trip to Jaipur, Ranthambore, Jaisalmer, Udaipur and Agra, Jodhpur, before returning to Delhi. On the train, for 8 following days, it is the royalty of the previous Rajasthani rulers that replaces the tedious lifestyle of the passengers.

Deccan Odyssey: The Deccan Odyssey is no way at the back in unfurling before you the magnificent history of Maharashtra. For 7 days, the Deccan Odyssey takes its tourist on a tour to the inheritance spots of Maharashtra. Starting from Mumbai, the train proceeds to Ratnagiri, Pune, Sindhudurg, Goa, Aurangabad (Ellora), Kolhapur, Nasik (Ajanta) and Mumbai. At the end of the trip, the experience is incredible.

1.4.6 Top Hill Stations Munnar: This is the attractive and peaceful hill station and is situated in the south Indian state of Kerala. Main attractions here are the Ervikulam National Park, the green tea gardens and wonderful waterfalls. Shopping is Munnar includes picking up items like strawberries, tea and spices.

Shimla: The most well-known hill stations in India that attract tourists is Shimla which is the capital city of Himachal Pradesh. The hill station has been generously set


apart by nature and gives its tourist a visual pleasure in form of beautiful valleys, pine clad hills and waterfalls. The Mall is the main attraction of Shimla.

1.4.7 Natural Attractions Dal Lake, Kashmir: A perfect lake nestled in the charming Kashmir Valley amidst the green Mughal gardens having antique monuments, multi-coloured flowers and avian metropolis, and plummetted orchards. The best tourist attraction is the quiet boat travel in one of the thousand odd extended and stylish shikaras or houseboats that hover on the Dal.

Kerala Backwaters: The Backwaters of Kerala are the region destined for those who want calm moments among normal beauty. The most important backwater spot in Kerala are Cochin, Kumarakom, Trivandrum and Allepey, Kollam. Cruising all along these backwaters on the ship or the houseboats or Kettuvallom is one experience that is eternally appreciated by tourist to the state.

Check Your Progress 1

State whether the following statements are true or false:

1. The Backwaters of Kerala are the place meant for those who want calm moments amidst natural beauty.

2. A perfect lake nestled in the charming Kashmir Valley amidst the green Mughal gardens having multi-coloured flowers and avian metropolis, antique monuments and plummetted orchards.

3. The Deccan Odyssey is no way at the back in unfurling before you the magnificent history of Maharashtra.

4. It is the oldest fort since 10th century that witness various generations of Rajas, Traders, Merchants, etc.

5. A number of tourists coming to in Varanasi do not to worship river Ganges and prominent Hindu deities at the ghats and at the temples of Varanasi.

1.5 PUBLIC HOLIDAYS AND BANKS IN INDIA India is a traditionally diverse and enthusiastic society, make merry numerous holidays and festivals. The annual holidays are widely observed by state and local governments; however, they may alter the dates of observance or add or subtract holidays according to local custom.

1.5.1 Public Holidays

National holidays

Soldiers of the Madras Regiment during the annual Republic Day Parade in 2004.

National holidays are observed in all states and union territories.

India has three national days. They are:

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Travel and TourismDate English name

26-January Republic Day

15-August Independence Day

2-October Mahatma Gandhi's birthday.

Hindu Holidays

Hindus celebrate a lot of festivals all over the year. Hindu festivals has many religious, mythological and seasonal significance. The observation of the festival, the representations used and attached, and the grace and strength of festivity varies from region to region in the country. A list of the more popular festivals is given below:

Holiday Observed in

Bhogi/Lohri Andhra Pradesh, Tamil Nadu, Maharashtra (as Bhogi), Punjab (as Lohri)

Makar Sankranti/Pongal/Maghi/Magh Bihu

Andaman & Nicobar, Arunachal Pradesh, Assam (as Magh Bihu), Gujarat (as Uttarayan), Karnataka, Orissa, Uttar Pradesh, Maharashtra, Andhra Pradesh, Bihar, West Bengal (as Makar Sankranti), Pondicherry, Tamil Nadu (as Pongal), Punjab, Haryana, Himachal Pradesh (as Maghi)

Thiruvalluvar Day Pondicherry, Tamil Nadu

Uzhavar Thirunal (Farmers' Day) Tamil Nadu

Vasant Panchami (Aka, Saraswati Puja) Orissa, Tripura, West Bengal, Bihar, Uttar Pradesh, Maharashtra

Ratha Saptami Maharashtra, Goa, Andhra Pradesh, Karnataka

Maha Shivaratri

Andhra Pradesh, Assam, Chandigarh, Bihar, Chhattisgarh, Gujarat, Haryana, Himachal Pradesh, Jammu & Kashmir, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Manipur, Orissa, Rajasthan, Uttarakhand, Uttar Pradesh, Tamil Nadu, West Bengal

Holi (Aka, Dol) All states and territories except Kerala, Nagaland, Mizoram, Goa, Pondicherry, Tamil Nadu

Gudi Padwa/Ugadi/Puthandu Maharashtra, Goa, Andhra Pradesh, Karnataka, Pondicherry, Tamil Nadu

Ram Navami

Maharashtra, Karnataka, Kerala, Andhra Pradesh, Assam, Bihar, Chandigarh, Delhi, Gujarat, Haryana, Himachal Pradesh, Jammu & Kashmir, Madhya Pradesh, Orissa, Punjab, Rajasthan, Tamil Nadu, Uttarakhand, Uttar Pradesh, West Bengal

Contd…


Hanuman Jayanti Maharashtra, Orissa, Karnataka, Uttar Pradesh (as Bada Mangal)

Akshaya Tritiya/Maharishi Parashurama Jayanti

Maharashtra, Goa, Andhra Pradesh, Karnataka, Kerala, Tamil Nadu, Uttar Pradesh

Rath Jatra Orissa

Nag Panchami or Guga-Navami All states and territories except Goa

Raksha Bandhan (Aka, Rákhi Púrńimá)

Andhra Pradesh, Gujarat, Madhya Pradesh, West Bengal, Rajasthan, Uttarakhand, Uttar Pradesh, Jharkhand, Bihar, Haryana, Orissa, Punjab, Maharashtra

Krishna Janmashtami

Kerala, Andhra Pradesh, Assam, Bihar, Chandigarh, Delhi, Gujarat,Haryana, Himachal Pradesh, Jammu & Kashmir, Karnataka, Madhya Pradesh, Orissa, Punjab, Rajasthan, Tamil Nadu, Uttarakhand, Uttar Pradesh, Maharashtra, West Bengal

Ganesh Chaturthi Andhra Pradesh, Goa, Gujarat, Madhya Pradesh, Maharashtra, Orissa, Pondicherry, Tamil Nadu, Karnataka

Onam Kerala, Pondicherry

Raja Parba Orissa

Mahalaya Karnataka, West Bengal, Assam, Orissa

Dussehra (Aka, Durgá Pujá)

all states

holiday for 2 days in Andhra Pradesh, Bihar, Kerala, Nagaland, Sikkim, Tamil Nadu, Maharashtra, Karnataka, Uttarakhand and Uttar Pradeshholiday for 3 days in Orissa, Assam, Madhya Pradesh, Meghalaya, Tamil Nadu, and Tripuraholiday for 6 days in West Bengal11th day Bhashani Utchhav in Orissa

Kumara Purnima (aka Kojaagari Pornima)

Maharashtra (as Kojaagari Pornima), Madhya Pradesh, Rajasthan, Uttar Pradesh, Chhatisgarh, West Bengal.

Diwali (Aka, Káli Puja and Diipávali)

all states and territories observed for 2 days in Assam, West Bengal, Karnataka, Orissa, observed for 5 days in Gujarat, Madhya Pradesh,Uttarakhand and Uttar Pradesh observed for 6 days in Maharashtra

Vasu Baras (aka Govatsa Dwadashi) Maharashtra

Dhan Teras (aka Dhan Trayodashi) Maharashtra, Gujarat, Uttar Pradesh

Naraka Chaturdashi all states

Lakshmi Puja Maharashtra, Orissa, Assam, Madhya Pradesh, Meghalaya, West Bengal and Tripura

Goverdhan Pooja all states

Bhai Duj (Aka, Bhau-beej, Yama Dwitiya, Bhai Phota)

Maharashtra, Goa, Karnataka, Uttarakhand, Uttar Pradesh, West Bengal, Madhya Pradesh

Devotthan Ekadashi Uttarakhand,Uttar Pradesh,Bihar,and some parts of Rajasthan and Madhya Pradesh

Contd…

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Travel and TourismHartalika Teej Maharashtra, Bihar, Madhya Pradesh, Rajasthan, Uttar Pradesh

Jagaddhatri Puja West Bengal

Visvakarma Puja Orissa, West Bengal

Nuakhai Orissa

Chhath Bihar, Jharkhand, Uttar Pradesh

Bathukamma Andhra Pradesh

Bonalu Andhra Pradesh

Islamic Holidays

Mawlid or Eid-e-Milād-un-Nabī being celebrated in a town in Uttar Pradesh.

Holiday Observed in

Eid ul-Fitr Eid/Ramazan Id End of Ramazan

all states and territories

Eid al-Adha Bakr-Id Feast of the Sacrifice

all states and territories

1.5.2 Banks in India This is a partial list of corporations engaged in banking business within the territory of India. There are currently nationalised banks in India.

Nationalised Banks/Public-sector Banks

Vijaya Bank

United Bank of India

Union Bank of India

UCO Bank

Syndicate Bank

Punjab & Sind Bank

Punjab National Bank

Oriental Bank of Commerce

Indian Overseas Bank

Indian Bank

IDBI Bank


Dena Bank

Corporation bank

Central Bank of India

Canara Bank

Bhartiya Mahila Bank

Bank of Maharashtra

Bank of India

Bank of Baroda

Andhra Bank

Allahabad Bank

SBI and Associate Banks

State Bank of India

State Bank of Bikaner & Jaipur

State Bank of Hyderabad

State Bank of Mysore

State Bank of Patiala

State Bank of Travancore

State Bank of Saurashtra (merged into SBI in 2008)

State bank of Indore (merged into SBI in 2010)

Regional Rural Banks ( Third Level Heading) Allahabad UP Gramin Bank

Andhra Pradesh Grameena Vikas Bank

Andhra Pragathi Grameena Bank

Arunachal Pradesh Rural Bank

Aryavart Gramin Bank

Assam Gramin Vikash Bank

Baitarani Gramya Bank

Balageria Central Co-operative Bank

Ballia –Etawah Gramin Bank

Bangiya Gramin Vikash Bank

Private-sector Banks

Axis Bank

Catholic Syrian Bank

City Union Bank

Development Credit Bank

Dhanlaxmi Bank

Federal Bank

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Travel and Tourism HDFC Bank

ICICI Bank

IndusInd Bank

ING Vysya Ban

1.6 TOP FESTIVALS AND TOURIST ATTRACTION 1. Diwali

Source: http://0.tqn.com/d/goindia/1/0/m/0/-/-/diwali.jpg

The very famous festival of India is Diwali which is a 5 day celebration that marks the beginning of the Hindu New Year. It's famous as the "Festival of Lights" for all the small clay lamps, fireworks, and candles that are lit throughout the celebrations. These lights are said to symbolize the success of brightness over darkness and good over evil. The candlelight makes Diwali a festival of joy and happiness.

2. Ganesh Chaturthi

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The magnificent eleven day Ganesh Chaturthi festival is celebrated as the birthday of beloved Hindu elephant-headed god, Lord Ganesha. The beginning of the festival witnesses vast, highly crafted statutes of Ganesha brought at homes and podiums, which have been particularly prepared and marvellously bejewelled.

3. Holi

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Holi is a festival of colours that also symbolizes the victory of good over evil, in addition to the profusion of the spring crop season. It's commonly referred to as the "Festival of Colours".

4. Navaratri, Dussehra, and Durga Puja

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It is the festival of nine days known as Navaratri. The tenth day, called Dussehra, is dedicated to celebrating the conquer of the devil king Ravana by Lord Rama. It also signifies with the success of the honoured warrior Goddess Durga over the sin buffalo mischievous Mahishasura.

5. Krishna Janmashtami/Govinda

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Krishna Janmashtami, also known as Govinda, signifies the birthday of Lord Krishna. This festival include people climbing on one another and making a human pyramid to attempt and arrive at and smash open earth pots that has curd, which have been hanged up high from buildings.

6. Kerala Temple Festivals

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Travel and TourismKerala the South Indian State has temples that are famous for their interesting temple festivals. The huge processions of elephants, splendid in colourful ornaments, are the foremost attractions of these festivals. The processions are made by bright drummers, floats, and other musicians.

7. Onam

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Onam is a traditionally 10-day festival that signifies the return of the legendary King Mahabali. It’s a festival rich in customs and custom. People noticeably beautify the ground in front of their houses with flowers set in good-looking patterns to greet the King.

8. Pushkar Camel Fair

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An amazing 50,000 camels congregate on the little desert city of Pushkar, in India's state of Rajasthan for the Pushkar Camel Fair. For five days, the camels are clothed entered into beauty contests, paraded, shaved, raced, and of course traded. It's a big occasion to witness a conventional style Indian gala.

1.7 IMPORTANT TRAVEL AGENTS AND TOUR OPERATOR

The Ministry of Tourism has announced a scheme for giving way sanction to hotel projects from the viewpoint of this aptness for worldwide tourists. A categorization committee formed by the Ministry categories the performance of hotels in the star organization into 6 categories from star one to five star deluxe. Likewise, the Ministry has a system to approve Tour Operators, Travel Agents, Adventure Tour Operators and Tourist Transport Operators, the thought being to support quality, standard and service in these categories in order to encourage Tourism in India. This is an intended scheme open to all bona fide agencies.


1.7.1 Travel Agents A Travel Agent is defined as the one who arranges the tour and makes preparations of tickets for journey by ship, rail, or air, passport, visa, etc. He may also organize lodging, tours, entertainment and other services related to tourism. It can be classified as under:

Inbound Tour Operators: An Inbound tour operator is defined as the one who arranges accommodation, transport, sight-seeing, entertainment and other services related to tourism for foreigners.

Tourist Transport Operators: A Tourist Transport Operator Organization can be defined as the one, who give tourist transport like coaches, boats, cars, etc. to visitors for sightseeing, travelling, and journeys to visitor places etc.

Adventure Tour Operators: An Adventure Tour Operator can be defined as the one who is occupied in actions associated to Adventure Tourism in India i.e., mountaineering, water sports, aero sports trekking and safaris of a variety of kinds, etc. Other than that he might also arranges for transportation, housing, etc.

Domestic Tour Operators: A domestic tour operator is can be defined as the one who arranges transportation, sight-seeing, entertainment accommodation, and other tourism related facilities for domestic tourists.

Check Your Progress 2 Fill in the blanks: 1. A ……………………. is can be defined as the one who arranges

transportation, sight-seeing, entertainment accommodation, and other tourism related facilities for domestic tourists.

2. An ……………………. can be defined as the one who is occupied in actions associated to Adventure Tourism in India.

3. A ……………………. can be defined as the one, who give tourist transport like coaches, boats, cars, etc. to visitors for sightseeing, travelling, and journeys to visitor places. etc.

4. The ……………………. has announced a scheme for giving way sanction to hotel projects from the viewpoint of this aptness for worldwide tourists.

5. Onam is a traditionally ……………………. festival that signifies the return of the legendary King Mahabali.

1.8 LET US SUM UP In this lesson we have learned how travel and tourism industry has developed over time and achieved new scope with the growth of a variety of facilities and infrastructure. From this we appreciate that in the current situation tourism is taken as a service industry, and this industry is the leading foreign exchange earner and employment generator. It is hence very essential to have good preparation and organization of this business and thus increases the need and the significance of tourism statistics. We know the difference between travel and tourism; tourist and an excursionist; domestic and international tourist.

As tourism is taken as an industry, it also has a product, the product that comes out of it is known as Tourism Product. In the next lesson we would learn the definition and the characteristics of this product and the various forms of a tourism product.

1.9 LESSON END ACTIVITY Make list of places that attract the tourist in Delhi.

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Travel and Tourism1.10 KEYWORDS Umbrella Industry: An umbrella company is a company that acts as an employer to agency contractors who work under a fixed term contract assignment, usually through a recruitment employment agency in the United Kingdom.

Segmentation: Market segmentation is a marketing strategy that involves dividing a broad target market into subsets of consumers who have common needs, and then designing and implementing strategies to target their needs and desires using media channels and other touch-points that best allow reaching them.

Gross Domestic Product: Gross domestic product (GDP) is the market value of all officially recognized final goods and services produced within a country in a year, or other given period of time.

National Development: National development refers to the ability of a country or countries to improve the social welfare of the people, for example, by providing social amenities like good education, infrastructure, medical care and social services.

Host Country: A nation in which representatives or organizations of another state are present because of government invitation and/or international agreement.

Regional Development: Regional development is the provision of aid and other assistance to regions which are less economically developed. Regional development may be domestic or international in nature. The implications and scope of regional development may therefore vary in accordance with the definition of a region, and how the region and its boundaries are perceived internally and externally.

1.11 QUESTIONS FOR DISCUSSION 1. What do you understand by tour and travel?

2. Describe the principles of the tourism.

3. Explain in details the scope and operation of the tourism.

Check Your Progress: Model Answers

CYP 1

1. True

2. True

3. True

4. True

5. False

CYP 2

1. domestic tour operator

2. Adventure Tour Operator

3. Tourist Transport Operator Organization

4. Ministry of Tourism

5. 10 days


1.12 SUGGESTED READINGS Harry A. Kinnison, Aviation Maintenance Management, McGraw Hill

S. Patankar and James C. Taylor Aviation and Airport Security; Terrorism and safety concerns, CRC Press

IATA Manual on Diploma in Travel and Tourism Management, Ashgate Publishing Ltd.

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Scope of the Travel and TourismLESSON

2 SCOPE OF THE TRAVEL AND TOURISM

CONTENTS


2.1 Introduction

2.2 The Scope and Operation of the Tourism Industry

2.3 Important Travel Agent and Tour Operator

2.3.1 Benefits of Booking Tours

2.3.2 Types of Tours

2.3.3 Choosing an Expertise

2.3.4 Marketing Yourself

2.4 Perception of the Tourism Worldwide

2.4.1 Tourism Perspective

2.4.2 Global Perspective

2.5 Perception of Travel Worldwide

2.5.1 International and Domestic Tourism

2.6 Indian Perspective

2.6.1 Nature/Characteristics of Tourism

2.7 Importance of Tourism

2.8 Travel Services

2.8.1 The Indian Scenario

2.8.2 Players: Competition

2.8.3 Travel Services Marketing

2.8.4 Other Marketing Challenges

2.9 State Tourist Organisation

2.10 Let us Sum up


2.12 Keywords





Discuss the scope of the tourism

Describe the travel agent and tour operator

Understand the perception of tourism worldwide

2.1 INTRODUCTION Tourism is the world’s largest industry that generates employment and provides a source of foreign exchange to the country. This lesson deals with the approaches to define tourism as an industry and the problems faced by this industry. The scope of the tourism is very important to understand. This provides a great understanding of the duties and responsibilities of the travel agent. How they carry out their work and their function as per the need and the demand of the client. The tour operator and the travel agents play an important role in making the trip of the tourist a good experience. In this lesson we will study all the aspects and the requirements of the tourist in order to make the tour of the client a remarkable and memorable and how the tour operator work and give a good impression on the customer to increase their business.

2.2 THE SCOPE AND OPERATION OF THE TOURISM INDUSTRY The World Travel and Tourism Council (WTTC) is an industrial group that undertakes the main tourism services in the world. As part of their work they have expected the size and scope of the tourism industry by means of sophisticated profitable techniques. They state that travel and tourism is:

‘One of the largest and most dynamic industries of today’s global economy, travel and tourism …it accounts for US£6 trillion, or 9%,’of global gross domestic product (GDP) and it supports 260 million jobs worldwide, either directly or indirectly. That’s almost 1 in 12 of all jobs on the planet’ (WTTC 2012: 3).

The Scope and Operation of the Travel and Tourism are as follow:

The tourism industry is extremely diverse – from the size of organization; business type; sector; organization; and process. It can be taken as the collection of various industries.

Tourism is a diverse range of products than a single product.

It comprises tangible and non-tangible elements.

It is produced where it is consumed.

To exacerbate this, the tourism industry is both misunderstood and underexplored (Debbage & Daniels 1998). This is because it is amorphous and complex, shrouded in conceptual fuzziness and imprecise terminology (is it tourism or travel?). This lesson aims to dispel some of this mystique and provide a clear description of how to approach examining the scope and scale of the contemporary tourism industry.

2.3 IMPORTANT TRAVEL AGENT AND TOUR OPERATOR Travel Agent: A travel agent provides information to the people on various travel destinations advises them of available holiday packages to suit their tastes and budget and chart their travel plan. He would generally sell the travel associated products like currency exchange, car rentals, insurance etc.

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Scope of the Travel and TourismTour Operators: Tour operators offer holiday packages which comprise:

1. Travel like by rail, road or air.

2. Accommodation like hotels, resorts, apartments, guesthouses.

3. Travel services like airport pick and drop, sightseeing, excursions etc.

These tour operators may be the wholesale operators who operate tours only through retail travel agencies or they may be direct sell operators who market their product directly to the public.

2.3.1 Benefits of Booking Tours The association among tour companies and the travel agents is constantly developing. Earlier, tour operators relied approximately solely on travel agents for their business. But now, with developing technology and growing business strategies, tour operators are now diversifying how to carry out their business. Travel agents use internet websites to attract their clients worldwide. Many tourists are now looking for an exclusive and unique tour to have a memorable experience. Tour operators are enhancing their strategies to have a good number of clients. Agents are taking a good education and are of well aware of the places and technology so that they can achieve their targets.

However, the advantages of booking a tour are extremely high. Group travelling is a very profitable constituent of the business of the travel agent, and tours are the simple and clear to accommodate these groups. The rate of commission is higher for group travel, and the returns are also very high.

By having a good focus on your area one can have a specialization in one area. One can have focus on particular places, like Italy, Brazil, or China. Moreover special trips like African Safaris or Scuba Diving vacations can be organized. By the help of tour operators you without any problems set up yourself as a specialist on one area of travel.

Tour operators have a unique association prospect for travel agents. If you have a good personal rapport with numerous companies, you can start to make to order trips for your customers. These customers will be happy with the service you provide them during their tour.

2.3.2 Types of Tours Many tourists like to go to independent travel, mainly when going on a worldwide trip where the currency, language, and transportation systems are difficult. Tourists booking a tour often pass on to travel agents for assistance. If you are a good travel agent you must be able to answer all the queries of the tourist about the tour, tour types, group sizes, and travel styles. All tour companies are dissimilar each company caters to its own market. It is the duty of the travel agent to ensure your clients is on the trip that he wanted or that fits his needs.

You should ask your client what they want to get out of the experience. Some tourist wants more freedom and flexibility during their trip, while some tourists want the trip to be pre-planned and without any hassles. A travel agent must know about the niche tours, like those that focus on history, food, or music. These tours grow in fame and will give the clients a more comprehensive knowledge at a particular part of a culture. These tours are more special and more personalized that your customer will greatly value.

Another important factor is group size, when selecting a particular tour. Small trips are more personalized, but many times are more costly. Considering age groups when selecting a tour is also very important. Some companies, like Contiki, focus on a younger people. These tours focus on partying and socializing.


Trips that do not involve heavy walking are being preferred by the old people.

2.3.3 Choosing an Expertise You bill yourself as an expert, if you are a travel agent. As we know that the world is a big place so if you want to give your customer a good tour you should have an expertise in a particular area. Many travel agents take a particular place as their expertise. When choosing a place, you should consider the place where you actually locally live. You should have knowledge of what you opponent is offering. For example if there are many companies that focus on Dubai than you should not focus on that.

Those travel agencies could have a sound established name and customers that you might face problem in competing with. You should always consider the area in which you have a good interest. If you have spent a major amount of time in one place then you should be OK with that. Travel demand is also significant so look at travel trends in current time. If there is a place in which is popular, then will help you and you should have expertise in that region. You should also give importance to the political stability in that region, as this can have a remarkable impact of upcoming travel and your business.

2.3.4 Marketing Yourself Once you have developed a particular specialisation, you can start selling your services. Schools, churches and businesses are popular sources of group travel. By actively becoming a part of church activities you can become a recognisable face that people feel they can trust. Also think giving referral incentives.

2.4 PERCEPTION OF THE TOURISM WORLDWIDE

2.4.1 Tourism Perspective The term tourist is believed to have been derived from the Latin word ‘TORNUS’ which means a tool, a circle or a turner’s wheel. In the sense of the word of the origin, tourist is a person who undertakes a circular trip, i.e., ultimately comes back to the place from where he sets about his journey.

The simple word travel, defined as "the act of moving" by most dictionaries, has a different definition within the context of tourism industry. For the purpose of this book, travel is defined as "the act of moving outside one's community for business or pleasure but not for commuting or traveling to or from work or school" (Gee, Makens, & Choy, 1989, p. 12). With respect to travel as an industry, there must also be the creation of economic value resulting from the travel activity.

Understanding fundamental definitions and concepts used within the context of the travel and tourism industry provides an essential framework from which most discussions on the industry are based. Because of tourism's intangible nature, common definitions of terminology benefit the industry in a number of ways.

Standardised definitions help insure that all parties are speaking about the same term or concept with little or no room for variables. This essential for tourism developers and executives from different regions or countries when they discuss travel and tourism matters.

In addition, having standardised definitions enables planners to use comparable data in which to make more informed business decisions. Exact definitions, however, cannot be taken for granted. For the first half of the 20th century, tourism visitor arrivals were barely recorded by many countries and, when they were recorded, methods varied by countries. It was not possible to effectively compare the total

29

Scope of the Travel and Tourismnumber of visitors from one country to another which defined visitors differently, usually counting arriving foreign passport-holding individuals.

Finally, having standardized definitions enables tourism researchers to make scientifically valid assumptions about the tourism industry. This becomes increasingly important as travel and tourism researchers continue to enlighten public policy makers and private industry executives about the extraordinary role tourism plays-in the worlds overall economy. As a relatively new academic discipline, the tourism field lacks the depth of research found in other forms of commerce. As standardized definitions become more accepted, researchers will have an easier time collecting comparable data and performing meaningful tourism studies.

Based on the various definitions of a Tourist here are some of the characteristics of a Tourist:

He takes up his journey of his own free will.

He takes up the journey primarily in search of enjoyment.

The money spent on the visit is the money derived from home, not

Money earned in the places of visit.

He finally returns to his original starting point.

2.4.2 Global Perspective The World Tourism Organisation (WTO), the major inter-governmental body concerned with tourism, has led the way in establishing a set of definitions for general use. In 1991, the WTO and the Government of Canada organized an International Conference on Travel and Tourism Statistics in Ottawa, Canada which adopted a set of resolutions and recommendations relating to tourism concepts, definitions, and classifications. The following definitions are based on the WTO definitions and classifications and explain the various types of visitors:

Tourism: The activities of persons traveling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business, and other purposes.

Tourist: (Overnight visitor) Visitor staying at least one night in a collective or private accommodation in the place visited.

Same Day Visitor (Excursionists): Visitor who does not spend the night in a collective or private accommodation in the place visited.

Visitor: Any person travelling to a place other than that of his/her usual environment for less than 12 consecutive months and whose main purpose of travel is not to work for pay in the place visited.

Traveller: Any person on a trip between two or more locations (WTO, 1995b, p. 16).

Unfortunately, there is still confusion over these very basic definitions. Even within the same country such as the United States, for example, different states may use different definitions for data gathering and statistical purposes.

2.5 PERCEPTION OF TRAVEL WORLDWIDE

Just as there are different types of visitors, there are different forms and categories of travel which take place, varying by traveller, destination, and motive for travel, such as international vs. domestic travel, intra-regional vs. interregional travel, as well as inbound vs. outbound travel.


2.5.1 International and Domestic Tourism According to the WTO, international tourism differs from domestic tourism and occurs when the traveller crosses a country's border. Not every international traveller is a visitor, however. The traveller is a visitor only if the trip takes him or her outside the usual environment, e.g., workers who cross borders for employment are not considered visitors. The interest in international tourism has always been strong, primarily for economic reasons, as this form of tourism plays an important role in trade and monetary flows among nations.

Domestic tourism has been overshadowed by the interest in international tourism, for it was thought initially to have little or no international impact, and statistics on the subject were felt to be a country's own business. It has become clear, however, that international and domestic tourism do relate to each other. Travellers’ choices change depending on circumstances, and domestic tourism can be substituted for International tourism and vice versa under the influence of external factors, such as relative growth in real incomes, price differences between countries, and international political conditions. Over the past few decades, in many Western countries domestic holidays were largely replaced by outbound holidays, influenced by the rise in living standards and discretionary incomes, while developing countries have seen sharp increases in domestic tourism.

Regional Travel

Regions are geographically united subdivisions of a larger area characterized by definitive criteria or frames of reference. Three types of regions are used in tourism research. The first one refers to geographical location. Regions such as "the north" or "the west," are examples of this type. The second type refers to administrative areas, such as "Province X." The third combines criteria referring to location with criteria of a more physical nature. Examples of this type of regions are "the lake district" or "the Pacific Basin." Regions of functional type can also be constructed, such as "urban areas" or "coastal areas” The term interregional travel refers to travel among various regions, whether in regions found within the same province or state, a country, or various regions throughout the world. Intra-regional, on the other hand, refers directly to travel contained within the same defined region, whether domestic or international such as travel between countries of East Asia.

Inbound and Outbound Tourism

There are three forms of tourism at any level, in relation to a given area, e.g., domestic region, country, or group of countries:

Domestic tourism, involving residents of the given area travelling (as visitors) only within that area.

Inbound tourism, involving non-residents travelling as visitors in the given area.

Outbound tourism, involving residents travelling as visitors in an area other than the given area.

If a country is the area of reference, the terms "domestic," "inbound" and "outbound" tourism can be combined in various ways to derive the following categories of tourism:

Internal tourism, which comprises domestic and inbound tourism;

National tourism, which comprises domestic tourism and outbound tourism;

International tourism, which consists of inbound tourism and outbound tourism.

To avoid misunderstanding the terms "inbound," "outbound," "domestic," "internal," "national “and” international tourism" are generally used with a country as the unit of

31

Scope of the Travel and Tourismreference. However, it should be recognized that there are political subdivisions which are less than countries and differ from states such as the Commonwealth of Puerto Rico and the Commonwealth of the Northern Mariana Islands, both part of the United States (WTO, 1995b, p. 27).

2.6 INDIAN PERSPECTIVE In India we see the origin of the concept of Tourism in Sanskrit Literature. It has given us three terms derived from the root word “Atana” which means going out and accordingly we have the terms:

Tirthatana: It means going out and visiting places of religious merit.

Paryatana: It means going out for pleasure and knowledge.

Deshatana: It means going out of the country primarily for economic gains.

In simple terms Tourism is the act of travel for the purposes of leisure, pleasure or business, and the provision of services for this act.

There are two important components that make up tourism:

1. The practice of travelling for pleasure.

2. The business of providing tours and services for persons travelling.

Difference between Travel and Tourism

Though the words Travel and Tourism are synonymies and used interchangeably but Tourism is a wider concept and encompasses a lot more than travel alone. Travel implies journeys undertaken from one place to another for any purpose including journeys to work and as a part of employment, as a part of leisure and to take up residence; whereas Tourism includes the journey to a destination and also the stay at a destination outside one’s usual place of residence and the activities undertaken for leisure and recreation.

All tourism includes some travel, but not all travel is tourism. A person may often travel for a wide variety of purposes of which tourism is only one. However if properly handled, a part of the travel for non-tourism purposes can be motivated into travel for tourism as an additional purpose. For example a person on a journey as a part of employment to a place with one or more tourist attractions – like a spot of scenic beauty or historical significance, a pilgrimage, a lake, etc. can be induced to spare some time and money for a short visit and or stay for tourism purposes alone .In this sense every traveller is a ‘potential’ tourist and is up to the managers of the industry to tap this ‘potential’ and convert the traveller into an ‘actual’ tourist.

2.6.1 Nature/Characteristics of Tourism The following are the some of the characteristics of the tourism. They are:

Absence of ownership: When you buy a car, the ownership of the car is transferred to you, but when you hire a taxi you buy the right to be transported to a predetermined destination at a predetermined price (fare). You neither own the automobile nor the driver of the vehicle. Similarly, hotel rooms, airline tickets, etc. can be used but not owned. These services can be bought for consumption but ownership remains with the provider of the service. So, a dance can be enjoyed by viewing it, but the dancer cannot be owned.

Unstable Demand: Tourism demand is influenced by seasonal, economic political and others such factors. There are certain times of the year which see a greater demand than others. At these times there is a greater strain on services like hotel bookings, employment, the transport system, etc.


Intangible: Unlike a tangible product, say, a motor car or refrigerator, no transfer of ownership of goods is involved in tourism. The product here cannot be seen or inspected before its purchase. Instead, certain facilities, installations, items of equipment are made available for a specified time and for a specified use. For example, a seat in an aero plane is provided only for a specified time.

Psychological: A large component of tourism product is the satisfaction the consumer derives from its use. A tourist acquires experiences while interacting with the new environment and his experiences help to attract and motivate potential customers.

Highly Perishable: A travel agent or tour operator who sells a tourism product cannot store it. Production can only take place if the customer is actually present. And once consumption begins, it cannot be stopped, interrupted or modified. If the product remains unused, the chances are lost i.e. if tourists do not visit a particular place, the opportunity at that time is lost. It is due to this reason that heavy discount is offered by hotels and transport generating organisations during off season.

Composite Product: The tourist product cannot be provided by a single enterprise unlike a manufactured product. The tourist product covers the complete experience of a visit to a particular place. And many providers contribute to this experience. For instance, airline supplies seats, a hotel provides rooms and restaurants, travel agents make bookings for stay and sightseeing, etc.

Fixed supply in the short run: The tourism product unlike a manufactured product cannot be brought to the consumer; the consumer must go to the product. This requires an in-depth study of users’ behaviour, taste preferences, likes and dislikes so that expectations and realities coincide for the maximum satisfaction of the consumer. The supply of a tourism product is fixed in the short run and can only be increased in the long run following increased demand patterns.

Heterogeneous: Tourism is not a homogeneous product since it tends to vary in standard and quality over time, unlike a T.V. set or any other manufactured product. A package tour or even a flight on an aircraft can’t be consistent at all times. The reason is that this product is a service and services are people based. Due to this, there is variability in this product. All individuals vary and even the same individual may not perform the same every time. For instance, all air hostesses cannot provide the same quality of service and even the same air hostess may not perform uniformly in the morning and evening. Thus, services cannot be standardized.

Marketable: Tourism product is marketed at two levels. At the first level, national and regional organisations engage in persuading potential tourists to visit the country or a certain region. These official tourist organizations first create knowledge of its country in tourist –generating markets and persuade visitors in these markets to visit the country. At the second level, the various individual firms providing tourist services, market their own components of the total tourist product to persuade potential tourists to visit that region for which they are responsible.

Risk: The risk involved in the use of a tourism product is heightened since it has to be purchased before its consumption. An element of chance is always present in its consumption. Like, a show might not be as entertaining as it promises to be or a beach holiday might be disappointing due to heavy rain.

2.7 IMPORTANCE OF TOURISM Tourism sector holds immense potential for Indian economy. It can provide impetus to other industries through backward and forward linkages and can generate huge

33

Scope of the Travel and Tourismrevenue earnings for the country. In the recent 2007-08 budget, the provision for building tourist infrastructure has been increased from US$ 95.6 million in 2006-07 to US$ 116.5 million in 2007-08 (Min. of Tourism, GOI).

Tourism is no longer looking at it as a leisure activity, but as a major source of employment. The labour capital ratio per million rupee of investment at 1985-86 prices in the tourism sector is 47.5 jobs as against 44.7 jobs in agriculture and 12.6 jobs in case of manufacturing industries (Market plus Report, Min. of Tourism). Tourism is one of the third largest net earners of foreign exchange for the country and also one of the sectors, which employs the largest number of manpower.

In order to develop tourism in India in a systematic manner, position it as a major engine of economic growth and to harness it’s direct and multiplier effects for employment and poverty eradication in an environmentally sustainable manner the state and central governments formulated several policies. But it continues to suffer from lack of consistent and comprehensive policy. While little effort has been made to tap the potential of the tourism sector over the last few decades, the central tourism ministry is formulating policies to facilitate private investments through public private partnership and focus on development of this sector.

India is rated among the top five travel destinations in the world according to Lonely Planet. ABTA magazine rates India as the most preferred destination on earth. Indian tourism is one of the most diverse products on the global scene. India has 26 world heritage sites. It is divided into 25 bio-geographic zones and has wide ranging eco-tourism products. Apart from this it has a 6,000 km coastline and dozens of beaches (WTO 1997). India's great ethnic diversity translates into a wide variety of cuisine and culture. It also has a large number of villages, plantations and adventure locations.

The potential of tourism to contribute to development is widely recognized in the industrialized countries, with tourism playing an increasingly important role and receiving government support. Tourism along with some other activities like financial services and telecommunications is a major component of economic strategies. Tourism has become a favoured means of addressing the socio-economic problems facing rural areas on one end, while enhancing development of urban areas on the other.



1. Tourism along with some other activities like financial services and telecommunications is a major component of economic strategies.

2. India is rated among the top five travel destinations in the world according to Lonely Planet.

3. Tourism is no longer looking at it as a leisure activity, but as a major source of employment.

4. Tourism sector holds immense potential for Indian economy.

5. An element of chance is always present in its consumption.

2.8 TRAVEL SERVICES Conventionally, it was believed that a travel agent (TA) does not create a need but only fulfils an existing need. But it is now a reality that a number of TAs not only creates the need to travel to destinations but give business to hotels, carriers and many others. A TA is an important link between the traveller and the rest. How some travel agencies have grown and benefited from the marketing approach, is being discussed in this lesson.


The purpose of marketing is to create a customer, to persuade him to purchase your product, in spite of the options open to him to either buy from someone else or not to buy at all. It is a well-recognised axiom that the customer pays not for the product, but for the satisfaction he desires. To begin with, only the customer knows what would satisfy him. Or does he, really? It is, therefore, important to know who the customer is, or can be; to determine what satisfies him or does not; or, even to change his perspectives and bring around to recognise the possibilities inherent in the offer you are making.

Obviously the operative word here is value. To qualify, it is the value that the customer receives or perceives he is getting, in exchange for a segment of money or time or choice surrendered by him, which determines the 'decision variable'. As a consequence, value for money has become a consumer buzzword as powerful and pervasive as 'brand loyalty' and 'quality'-the latter, no doubt, being an integral part of the value concept.

It is axiomatic that the 'decision variable' itself is not a constant. To explain, given the same product backed with consistent value, the customer may decide not to buy it, or defer his purchase decision, depending on various factors external to the product—economy, attitudinal, and societal. The marketer, in such situations, has to reach out beyond the confidence circle of his own product into larger concentric circles which he can only hope to control most of the time. It is, perhaps, this perception of outer circles and the compulsion to reach out for them which adds true value to his product, particularly in fiercely competitive situations.

Fortunately, not only travel agents, but everyone else knows by now of the dramatic attitudinal and societal changes which have come about in India over the last twenty years in matters of business and leisure travel. It is no longer considered a luxury, and certainly not a psychological block, to want to get from 'Point A' to 'Point B' in the least possible time and in a most pleasurable manner The 'decision variable' has, in the main, become more need driven as the external factors influencing such decisions have weakened and lost their bite.

Since most things in life have a price attached to them, the advantages of a potentially large travel market, close at hand, must be placed in the context of constricted marketing opportunities. This is neither a paradox nor a contradiction in terms. What really has emerged for the trade is a scenario in which the players have to operate with not much to fall back on, in terms of Unique Selling Propositions (UPSs). The seller of a travel service is not about 'to change the world'—the world has changed! What he is attempting, really, is to add value to an existing product for influencing the buying decision in his favour.

He is conscious all the time that the competitor is selling intrinsically the same product—a flight coupon, a car rental, a passport or visa service, a tour, and so forth. What could or does make a difference for him are the peripherals he can add on or, as is increasingly obvious worldwide, what reductions he can offer to his client from the cost of the service provided, by working as closely as possible.

This is not to imply that the travel business is a non-professionalised hit-or-miss operation, working without sophistication and driven by cut-rate deals, made in little offices. As a matter of fact, travel is the largest and fastest growing commercial enterprise in the world. In India too, the growth patterns are exciting, but more of that later. Moreover, technology has given the business a number of powerful operational tools. Internally, large scale computerisation of travel agencies has brought about a sense of productivity and efficiency norms – concepts which, in the 'people business', are difficult to formulate and monitor. Externally, access to international reservation mega-systems have changed the rules of the travel marketing game by offering remarkable instant options to the airline travellers and hotel guests, and travel agents

35

Scope of the Travel and Tourismare no longer unfamiliar with the distinct advantages of satellite data links and electronic mail.

The most important point, however, is that are we, in the travel business, marketing or selling? Are we creating a need or merely fulfilling an existing need? Driven as we are by the more amorphous elements of personal choice, how do we lend the product a marketable dimension and how different are we allowed to be from the travel agent next door? These are aspects which must be viewed in the current and short-future Indian context.

2.8.1 The Indian Scenario The travel trade in India is about sixty years old, and has received its impetus from the growth of civil aviation in the country. From small beginnings with a few firms like Thomas Cook, Vensimals, Mercury of the Oberoi's followed a few years later by TCI and Sita, today it encompasses about 750 travel agencies spread all over the country. Yet, this growth has been random and uncontrolled, manifest by today's trade syndromes, a serious lack of professionalism, particularly in areas of marketing and finance, the absence of clear-cut institutional and product definition, competition of the most pernicious kind, and an inadequate code of ethics.

Also, apart from the odd ones out, travel agencies in India have grown around the expertise, experience and enterprise of single individuals and, so, tend to be highly personalised. These are superior technocrats who have plunged in, armed with assurances from a small but dedicated clientele, mostly with poor funding and weakly held beliefs on the workability of modern methods in a market-place, where contacts, word of mouth publicity and perpetual deal making predominate. For instance, how can one explain the fact that computerisation has been adopted just about a decade ago, and even then, in the most rudimentary manner? Or that, finance still remains primarily, a bookkeeping and debt-collection function? Or that the marketing function is seen as an exercise in trade espionage, sweet-dealing the clients, wheeling-dealing and pumping in sales volumes at any cost or consequence?

The biggest problem a travel service marketer faces is determining what to sell and to whom. As an agent there is not much he can do about the activities of his principals, or those on whom he must depend: be they airlines or shipping companies, government or foreign embassies, local transport operators or their agents abroad. Thus, the need is to be both circumspect and selective. Overpromising and under-delivering a service can lead to loss of money and loss of a client; and, in a trade which is as insular as the travel trade, the ripple effect is disastrous. Ironically, the Indian travel agent constantly gambles on these imponderables because he believes he is safer off in familiar territory, as opposed to offering products he is not comfortable with.

2.8.2 Players: Competition Situational, the Indian travel agent finds himself caught in the cause and effect fallout of unplanned and non-regulated growth. He is forced to compete not only with fellow agents, but with other players in the Held like general sales agents and passenger sales agents. Initially, these firms were appointed by certain airlines to sell their capacities in areas where no IATA approved travel agent existed, at commission percentages higher than what the travel agent earned. First at a slow pace, but later with gathering momentum, GSAs and PSAs have 'crossed the borders' and it is not unusual to find, particularly in our metro cities, the air l ine, its GSA or PSA and IATA approved travel agents operating next door to each other, and often running after the same client! Furthermore, cases of airlines competing against their own agents for a plum account are not difficult to find.


In the highly price sensitive travel trade, the IATA approved travel agent is at a serious disadvantage; because every other client is primarily concerned with neutralising the effects of steeply increasing air fares on his travel budget and he is forced to offer discounts from his earnings just to stay in the game.

Within the travel fraternity itself, at least five classifications have emerged; the IATA agent offering a wide clutch of services on a multi-locational basis; the single location agent; the corporation promoted 'in-house' agency; the 'consolidator' who buys business for cash on a heavily discounted basis; the non-IATA 'Mom and Pop Shop' who have no airline ticket stocks or service back-ups and exist by pulling in clients literally from the pavements for IATA agents in exchange for a small sub-agency commission. Add to these the firms which specialise only in visa or passport work on the side, and the usual assortment of free lancers and touts. The IATA approved travel agent must find his way through this maze of options and enticements to reach his prospective client.

2.8.3 Travel Services Marketing The quality, reach, and ultimate success of the marketing activity in a travel agency depends on how clearly the marketer has understood the service levels his firm can deliver, and how accurately he assesses the factors which make his firm stand out from competition. To arrive at such level of clarity and accuracy, he will have to measure his firm's potential and performance against the generic and specific factors which contribute to the success of a travel services operation.

Whilst a distinction has been made between the generic and the specific, it must be understood that the factors are not insular; there is both an overlapping and an interlocking into one another. Moreover, there are some functional relationships between them, particularly in terms of cause and effect.

This is not a priority listing and each factor assumes importance at a particular point in time or amidst a specific scenario. However, everything should finally progress into credibility and confidence.

Seven Cs of Travel Services Marketing

Competence

Credibility

Confidence

Consistency

Customisation

Care

Clout

Credibility and Confidence: These are the strongest allies a travel agent can have in the market-place. Qualitatively, selling travel services is a complex business, not only due to convoluted fare structures, a lot of regulations to be complied with, involved itinerary planning and so forth, but to a great extent due to the fact that the agent has little control over the end product he offers. An aircraft may get delayed, or not take off at all, leading to a missed connection; a visa or passport may be refused and there is almost nothing you can do about it in a hurry; a hired car may fail to turn up, or a hired coach may break down miles from anywhere; a hotel may not have a pre-booked room ready for your client; your client's air cargo may be shut out at the last moment; a tour can start with delay and misunderstandings and even end in a fiasco. Each of these primary services are organised by you from principals; no principal is answerable to you and only a few choose to commiserate with you. On the other hand,

37

Scope of the Travel and Tourismsince the client rarely interacts with the principals, you are inevitably answerable to him.

These traumas are what a travel agent has to frequently live through and a good agent develops techniques and plans to safeguard his client and himself. How well he does reflect the credibility and the confidence level he is able to generate and sustain in the market. Word does tend to get around and if the marketer, in pitching for new business, can demonstrate these qualities backed with data and facts, he can manoeuvre his agency into a position of strength. Even so, we, in the Indian market-place, are lucky because loyalties die hard here, unlike in the West where credibility is subjected to constant testing and analysis. But with business perspectives becoming increasingly bottom-line and pressure oriented, things are changing. The marketing professional must realise this and search for credibility and confidence advantages for his agency.

Competence and Clout: Listing competence as a marketing advantage may be resorting to a tautology. Nevertheless, the qualities a travel agent possesses in terms of high job specific skills and professional staff strength set him apart from the run-of-the-mill agent and help in promoting client confidence. Here, competence is related to technical excellence more than to street smart 'mister fix it' labels. There will be enough opportunity to demonstrate the latter when things need to get done out of turn by bending rules, but to begin with, an agency's prime strength lies in how well the technicalities of the trade are handled by its staff and managers. Competence, therefore, is a function of superior staff, strong supervision, effective systems and controls and diverse experience culled from the trade. The marketer who can assert, based on a proven track record, that his firm knows all the options and can deliver the best one to the client, or has the talent to anticipate problems before they arise, is bargaining from a position of strength.

Clout, of course, can be applied when, in spite of having pressed all the buttons, the machinery remains immobile. Given the multiplicity of operational systems laid out by a number of principals, anything could go wrong—cancellations, delays, tariff revisions. If the marketer perceives the efficacy of his agency's contacts within the confines of offices that matter, he must project this strongly to his prospective client. He should, however, avoid overkill; contacts remain productive only if they are handled judiciously.

Consistency: This is another important factor which the marketer must exploit to the firm's advantage. It is far easier to maintain consistency of quality while selling goods which can be produced to DIN or BS or ISI specifications than when you are selling services which do not conform to tangible parameters and have a perceptual bias.

As a matter of fact, it is this bias which determines the vital 'decision variable' which was discussed earlier. Consistency, however, is easy to comprehend, but not as easy to sustain particularly, "when you are marching in someone else's parade." The travel service marketer, in view of competitive pressures, tends to pitch at the highest promise levels every time to the client. This practice is undesirable and one should see very objectively on what the agency can do, time after time. The service performance must not read like the ECG of someone with a systolic problem, nor should it be a flat-liner. It is important to learn how to say 'no' at times and play safe. It pays in the long run to consistently deliver good levels of service than be a 'one shot wonder'.

Customisation and Care: If an agency is still arguing about what has been discussed, remember that the negative fallout of saying 'no' to a client can be neutralised if, as the marketer, one is prepared to approach each client as someone who has special needs, even if they are not obvious.

The travel service marketer is rarely selling a branded product. There is no airline that everyone always likes or dislikes; there is no best airport in the world where your


client wants to get stuck in for hours; there is no ideal stopover or routing. Each client has a special perspective and he wants a travel agency which can assure him that it understands this well.

Small and medium sized agencies have gainfully employed this factor in their selling and servicing, perhaps due to low volumes that they handle which help a one-to-one relationship with their clients. It is the larger travel agencies which suffer in comparison.

For example, Mercury Travels, which is one of the top three in the country, has a client base of over 500 companies. The problem of providing each passenger, which could be say 1000 travellers a month on international flights alone, with highly customised treatment, is acute. Just to keep track of their travel related data is no small task. Until a satisfactory answer to this can be found, high volume agencies will have to create a special sales and servicing cell, and then allocate perhaps 5 to 10 clients per staff on a dedicated basis. But, as is obvious, this adds not only to staff costs, but also to pernicious in-house squabbling, when each group member pushes for emergency attention from the ticketing counter staff. Ideally, large agencies should find the resources to create dedicated cells comprising one staff each drawn from domestic ticketing, international ticketing, sales and servicing and documentation departments, who deal with just their 'own' clients. But such a nuclear configuration may not always be possible.

Large agents in America and Europe are highly computerised, both in-house as well as being subscribers to mega-computerised reservation systems like Sabre, Galileo, Amadeus and so forth. We, in India, are far behind till now. Indian travel agencies are far behind. At Mercury Travel the focus, therefore, has been to bring about quantum changes in in-house computerisation to go completely online. This will also help in building up a comprehensive travel profile of each of the customers of Mercury Travels. Whilst waiting for this upgradation to come about, marketers must sell services on the premise that every passenger will receive personalised treatment, and ensure that his or her commitment to the client is backed up by strong operational support. The silver lining in this situation for a large agency is that, with years of handling a wide span of customer needs, agency staff is conditioned to expect complications and provide quick, effective, cost-saving solutions which are really what the client is looking for, to begin with.

Customisation is pointless without care. First, the marketer must assert that his agency cares about your particular needs and is prepared to put his money where his mouth is. Secondly, that his agency takes more than adequate care in planning your travel details and follows through till departure. It is generally believed that if a client is convinced that adequate care has been taken at the planning stage and all that needs to be done has been done, he tends not to hold the agency responsible for the problems and frustrations which may befall him later. A client can be a business person, a corporate manager, a government official, a self-employed professional, with whom the travel service marketer can strike the empathy chord.

2.8.4 Other Marketing Challenges There are a number of specific factors which can be used to great advantage in marketing a travel service within the distinctive scenario that exists in India. These factors are:

Low general awareness

Intense competition

Poor infrastructure

Lack of control.

39

Scope of the Travel and TourismThe Indian traveller, having truly come of age in the last decade or so, is ironically, by and large, still ignorant of all that a travel agency can do for him in terms of servicing, obtaining the best deals for him from the airlines and hotels, the various meet and assist services which are available at airports in India and abroad, the most inexpensive methods of transportation, time saving and so on.

On the other hand, the market is intensively competitive, with an increasing number of players running after the same client groups. Even if .01% of our 880 million travel (at 8,00,000 travellers), our country has immense potential. It is reasonable to estimate that just about 10% of this potential is tapped. On the other hand, the number of travel agents have increased fifty-fold in the last two or three decades. To paraphrase Winston Churchill, never have so few expected so much of so many! Travel services are overwhelmingly concentrated in the metros and their environs—few travel agents have been intrepid enough to invest time and effort in opening up the vast and affluent hinterland. This manifests itself in growing and intensive competition.

The tools that the travel agent has to work with are at best, primitive, and at worst, non-existent. In-house computerisation levels in the trade are very low because given the abysmal margins available to the agent, he fights shy of all investment that cannot guarantee instant returns. Additionally, the agent is familiar with mega-reservation systems only through the pages of foreign trade journals. On the other hand, the available domestic service infrastructure from our telephone systems to airplanes can keep anyone guessing and missing.

Finally, as explained earlier, the travel trade in India is not regulated by a charter or by a strict ethical code. IATA norms, save for financial guarantees, are loosely operated both in terms of licensing and monitoring. The premier travel trade body, the Travel Agents Association of India is constituted by preference and has no statutory control over its members which constitute about half of all IATA recognised agents in the country. Thus grab-as-grab-can is the name of the game. The operational ethics of many travel agents border on malpractice. Price, and not service, has become the prime mover in the market.

Value Add-ons in a Travel Agency

A tie-up with a credit card company for rupee payment in India, and a hotel reservation system.

A tie-up with authorised dealer in foreign exchange to secure the benefits of quick processing at minimum cost.

To possess a full-fledged money changers licence and work as a one-stop shop.

To introduce a Privilege Travellers Club which can give the frequent traveller benefits? This could take the form of complimentary meet and assist services of free tickets, or even an all-expense paid holiday.

Computerised reminder service on visas and passports and e', en on the highlights of previous journeys.

The art of service recovery is also a very powerful tool in the hands of the travel marketer. As we have seen, a travel agent is horribly prone to the more deadlier aspects of Murphy's law, being subject to the fallout from its own and others’ errors of omission and commission. It capitalises on and gets mileage from adversity.

Instances of a group being bumped off a flight and taken straight by a travel agent to a restaurant for a five-star dinner or his picking up the tab for an aborted flight connection or offering a complimentary trip to Agra when the usual transport fails to report, are not uncommon. A leading hotel chain in America asserts that if 'Room Service' takes more than 10 minutes the service is complimentary. If the marketer is in a position to commit such quid pro quos, he should use it to his advantage.


As far as discounts, credit and complimentary service in general are concerned, the agency policies must be clearly defined. The marketer must make the initial pitch by forcefully highlighting such benefits, keeping in mind what the competition has to offer. He must be prepared for counter demands from the prospective client and be flexible enough, as dictated by circumstance. Compulsions of high volumes and prestige play an important role here. In securing a large bank's travel business, higher discounts and longer credits than are usually offered by his agency may be justified if there is a strong chance of the goodwill rubbing off on to the Bank's commercial clientele, who may then swing their travel business towards that agency. Offering special terms to powerful trade bodies and associations may also pay off in a similar manner.

It is considered both ethical as well sound business policy to check out the prospective client's record with the earlier agency – why is he leaving them? An independent financial review and rating helps.

On the other hand, the marketer, reviewing a client's past performance, must take into account sales volumes and payment record. In re-negotiating contracts, one of the prime considerations is whether it has been a profitable relationship for both the parties.

Look through any newspaper or magazine and you will observe that the advertising of services in this country constitutes an infinitesimal segment of the total amount spent on product advertising. This is a ridiculous situation because, obviously, it is the former which is more nebulous in its perceived benefits and therefore needs to be more positively projected at the potential market. Travel agents stop at the occasional cocktail party or PR base—with the guest list being generally restricted to existing or past clients. There is an agent who has an annual party for over a thousand people at a football stadium, comprising past and present travellers with them! What little advertising there is limited to specific launches — an outbound tour programme, or the opening of a new location.

The concept of producing an effective corporate brochure, or a sales kit, is important; it can form the basis of the marketer’s initial sales pitch. Similarly, in going for a very large account, it may be worthwhile to invest in an audio-visual presentation. For instance, once a very prestigious Bangalore based client called for an AV presentation and Mercury Travels won the account on the strength of its AV presentation. Newspaper and magazine advertising, leave alone TV, is very expensive and must be judiciously used.

In the main, the successful travel service marketer must be convinced that effective institutional advertising which forcefully imprints the agency's product in the public mind, is essential. There are hundreds of potential clients out there who must be told what you can offer them.

2.9 STATE TOURIST ORGANISATION The STO is the body accountable for the formation and execution of national tourist policy. It is the appropriate agency and instrument for the implementation of the responsibilities for the direction, control, and endorsement of tourism. All countries which are dealing in tourism formulated a state tourist organisation which plays a most important role in both the formulation as well as the accomplishment of the Government’s tourism programme. These organizations are also accountable for coordinating the special actions of all the bodies involved in the development of the tourism. There is on the other hand no fix method as to what make the most acceptable constitutional deals for the state tourism. In some countries, tourism ranks as a full ministry and the Minister enjoys a cabinet rank. An additional arrangement in a lot of countries for tourism is to share a Minister with other departments like

41

Scope of the Travel and Tourisminformation or with arts, sports and culture. However other possibilities comprise attaching the tourism office to the government of the council, putting it in the charge of an official of the rank of a Deputy Secretary with an occasional voice in the council of Ministers.

Functions of State Tourism Organisation

STO normally undertake the following functions:

Control of activities of private travel agencies

Development of selected areas and

Information and promotion within the country

International relations

Overall tourism policy and promotion.

Publicity overseas

Regularization of standards of lodging and restaurants

Research

Technical and judicial problems

Research is a necessary role of a State tourist organisation. A related institutional support is research into the tourism prospective of the principal markets and analysis into the marketability of the country’s tourist product. This is a significant straight accountability of STO. Another important supervisory role of the STO is the Control of the activities of private travel agencies. A lot of tourists are using the services offered by the private travel agencies. It is necessary that the tourists must get efficient and good service and protection.

The problems which are related with the administration of law are the technical and the judicial problems. This is very important as variety of services depend on these sectors. STO must be very careful while administering law. On the other hand technical problems are concerned with the growth and maintenance of a variety of services. Constant thorough consideration is made to the level to which the superstructure and organisation planned and infrastructure, are likely to meet upcoming tourism demand.

International relation is extremely essential part of tourism. International associates that results from tourism have been constantly among the major important ways of spreading ideas regarding other cultures. Tourism can be a medium for international perceptive by way of bringing various people face to face. It has been cited as a major supplier to international friendliness and as a prime means of increasing social and cultural perceptive among all people of the world.

Improvement of preferred areas to draw tourists is compulsory. In each nation state there are many areas of tourist potential. On the other hand due to a variety of limitations, it is not feasible to increase all these areas. It is essential to recognize and choose particular areas which have the utmost potential for the development of the tourism.

Overall promotion of tourism and it is very important as it helps in the optimal use of resources. In calculating income generating from investments in tourism, national tourist policy cannot confine itself to restricted considerations of instantaneous financial and economic prosperity. It has to cater for the beneficial effects of tourism of common national improvement where considerations of non-economic nature may be evenly or even more significantly, than merely economic returns viz. cultural considerations, social considerations, political considerations, etc.



Fill in the blanks:

1. The …………………… is the body accountable for the formation and execution of national tourist policy.

2. …………………… of preferred areas to draw tourists is compulsory.

3. Research is a necessary role of a ……………………

4. The travel trade in India is about …………………… old.

2.10 LET US SUM UP Tourism sector has a huge potential for the economy of India. It can give momentum to many industries by forward and backward linkages and can make huge income earnings for the country.

In India the travel trade is around 60 year old and is developed because of the development of the civil aviation. Increasing worldwide competition in the market of air travel meant that the 1990s were the decade of the air traveller as a user looking for improved service quality. The responsibility of airline selling is to bring simultaneously the contribution of air services, which every airline can control, with the demand, which it can manipulate but cannot control, and to do this in a way which is both advantageous and meets the airline's corporate goals.

2.11 LESSON END ACTIVITY Prepare a presentation on the travel and tourism industry in India and discuss it in your class.

2.12 KEYWORDS Hospitality: It refers to the relationship process between a guest and a host, and it also refers to the act or practice of being hospitable, that is, the reception and entertainment of guests, visitors, or strangers, with liberality and goodwill.

Leisure Travel: It is travel in which the primary motivation is to take a vacation from everyday life.

Tourism: The activities of persons traveling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business, and other purposes.



World Tourism Organisation (WTO): It is the major inter-governmental body concerned with tourism.

2.13 QUESTIONS FOR DISCUSSION 1. What is the scope of the travel and tourism in India?

2. What is the importance of the travel agent and tour operator?

3. Give a brief overview of the travel service in India.

43

Scope of the Travel and Tourism4. What do you understand by the world perception of the travel?

5. Explain the world perspective of the perception of the tourism.


CYP 1

1. True

2. True

3. True

4. True

5. True

CYP 2

1. STO

2. Improvement

3. State tourist organisation

4. sixty years

2.14 SUGGESTED READINGS Robert D. Reid, David C. Bojanic, Hospitality Marketing Management

Kumar, Prasanna (2010), Marketing Of Hospitality & Tourism Services. Tata McGraw Hill Education Pvt. Ltd.

45

World Tourism

UNIT 1

UNIT II


47

World TourismLESSON

3 WORLD TOURISM

CONTENTS


3.1 Introduction

3.2 Important Countries/Capitals/Currencies/Exchange

3.3 World Tourism Attraction

3.4 Tourism in India

3.5 Tourism Types

3.6 Transportation Commercial Aviation

3.6.1 General Aspects

3.6.2 Emergency Oxygen Systems

3.7 Air Taxi Operation

3.8 Private Aviation

3.9 Let us Sum up


3.11 Keywords




Discuss world tourism

Describe important countries, states, currency essential for tourism

Understand world tourism attraction

Know about the tourism of India

3.1 INTRODUCTION Tourism is considered as the third largest foreign exchange earner for many countries, and rightly so emerged as an instrument for employment generation, poverty alleviation and sustainable human development. The GDP contribution from tourism is 5 per cent and above for many countries like China, Malaysia, Singapore and Thailand. Tourism also helps in improving the bilateral relations among various countries, which has resulted in positive contribution to economic, social and political environment. Realizing the significance of these positive factors, many governments


have conferred the industry status, extended related incentives to tourism and have embarked on developing the sector to the maximum possible level of operations.

An important element of human life is planning. Without planning the day-to-day activities do not start. Planning is a pervasive activity, in the sense it is present in all activities and all phases of life. Planning is looking ahead and deciding the future course of action at present. Even a kindergarten child has to plan the school bag and kit before going to school. A housewife, a farmer, an employee, and managing director of multi-national company, need planning before an activity is started, whether of short-term or long-term duration. 'If you are failing to plan, you plan to fail' – goes an old saying. This adage is true in the case of both individuals and institutions alike. Tourism sector is no exception to this planning process.

The onset of mass tourism, in the nineteen 80s especially, and the institutions it has given rise to, are producing more deterministic forms of culture. In general cases there come into being new forms which are different from the earlier phase of tourism activities. The focus today is on the exotic cultures which figure as key attractions. Here the approach too differs methodologically. He effort is to satisfy the touristic demand and in the process even contrive a cultural identity. This is continually proving to be quite troublesome for the relationship between 'tourism' and 'culture'. Of late this relationship has been subjected to some important anthropological scrutiny both at the international and the national levels.

3.2 IMPORTANT COUNTRIES/CAPITALS/CURRENCIES/ EXCHANGE This brief considers the choice of an appropriate exchange rate regime—floating, managed or fixed arrangements—for individual countries in light of important changes that have taken place in the world economy in recent years. These changes include the general increase in capital mobility and the abrupt reversals of capital flows to developing and transition economies. It is based on a recent IMF study, prepared by Michael Mussa, Paul Masson, Alexander Swoboda, Esteban Jadresic, Paolo Mauro, and Andrew Berg, which is now available in the IMF Occasional Paper series. The main conclusion is that it remains true that there is no single exchange rate regime that is best for all countries in all circumstances. Member countries continue to have scope to choose the type of exchange rate regime that best suits their needs, always with the proviso that the chosen regime must be credibly supported by policies consistent with the choice. Which exchange rate regime and associated policies are appropriate for a country depend on its particular circumstances. While increased capital mobility has been leading an increasing number of countries to either end of the spectrum between firmly fixed rates (or monetary unification) and free floating, intermediate regimes are likely to remain viable and appropriate in many cases.

Overview

The exchange rate regimes adopted by countries in today's international monetary and financial system, and the system itself, are profoundly different from those envisaged at the 1944 meeting at Bretton Woods establishing the IMF and the World Bank. In the Bretton Woods system:

exchange rates were fixed but adjustable. This system aimed both to avoid the undue volatility thought to characterise floating exchange rates and to prevent competitive depreciations, while permitting enough flexibility to adjust to fundamental disequilibrium under international supervision;

private capital flows were expected to play only a limited role in financing payments imbalances, and widespread use of controls would prevent instability in such flows;

49

World Tourism temporary official financing of payments imbalances, mainly through the IMF,

would smooth the adjustment process and avoid unduly sharp correction of current account imbalances, with their repercussions on trade flows, output, and employment.

In the current system, exchange rates among the major currencies (principally the U.S. dollar, the euro, and Japanese yen) fluctuate in response to market forces, with short-run volatility and occasional large medium-run swings . Some medium-sized industrial countries also have market-determined floating rate regimes, while others have adopted harder pegs, including some European countries outside the euro area. Developing and transition economies have a wide variety of exchange rate arrangements, with a tendency for many but by no means all countries to move toward increased exchange rate flexibility.

This variety of exchange rate regimes exists in an environment with the following characteristics:

partly for efficiency reasons, and also because of the limited effectiveness of capital controls, industrial countries have generally abandoned such controls and emerging market economies have gradually moved away from them. The growth of international capital flows and globalisation of financial markets has also been spurred by the revolution in telecommunications and information technology, which has dramatically lowered transaction costs in financial markets and further promoted the liberalisation and deregulation of international financial transactions;

international private capital flows finance substantial current account imbalances, but the changes in these flows appear also sometimes to be a cause of macroeconomic disturbances or an important channel through which they are transmitted to the international system;

developing and transition countries have been increasingly drawn into the integrating world economy, in terms of both their trade in goods and services and of financial transactions.

Lessons from the recent crises in emerging markets are that for such countries with important linkages to global capital markets, the requirements for sustaining pegged exchange rate regimes have become more demanding as a result of the increased mobility of capital. Therefore, regimes that allow substantial exchange rate flexibility are probably desirable unless the exchange rate is firmly fixed through a currency board, unification with another currency, or the adoption of another currency as the domestic currency (dollarization).

Flexible exchange rates among the major industrial country currencies seem likely to remain a key feature of the system. The launch of the euro in January 1999 marked a new phase in the evolution of the system, but the European Central Bank has a clear mandate to focus monetary policy on the domestic objective of price stability rather than on the exchange rate. Many medium-sized industrial countries, and developing and transition economies, in an environment of increasing capital market integration, may also continue to maintain market-determined floating rates, although more countries could may adopt harder pegs over the longer term. Thus, prospects are that:

exchange rates among the euro, the yen, and the dollar are likely to continue to exhibit volatility, and schemes to reduce volatility are neither likely to be adopted, nor to be desirable as they prevent monetary policy from being devoted consistently to domestic stabilisation objectives;

several of the transition countries of central and eastern Europe, especially those preparing for membership in the European Union, are likely to seek to establish


over time the policy disciplines and institutional structures required to make possible the eventual adoption of the euro.

The approach taken by the IMF continues to be to advise member countries on the implications of adopting different exchange rate regimes, to consider the choice of regime to be a matter for each country to decide and to provide policy advice that is consistent with the maintenance of the chosen regime.

Exchange Rate Regimes for Major Currencies

Over the past two decades, exchange rates among the major currencies—the U.S. dollar, the Japanese yen, and the deutsche mark with its partner currencies in the exchange rate mechanism of the European Monetary System, before the introduction of the euro in January 1999—and the currencies of other large industrial countries currencies have exhibited substantial short-term volatility, in nominal as well as real terms and also significant medium-term misalignments:

volatility has been considerably higher than it was under the Bretton Woods system prevailing from 1945 to 1971;

medium-term swings have been quite large, including the 1980–85 appreciation of the dollar and the 1990–95 appreciation of the yen, and their subsequent depreciations;

these wide swings in exchange rates have entailed misalignments relative to economic fundamentals, giving rise to questions of whether and how they can be avoided, or at least moderated.

Views on whether, how, and to what extent it might be desirable to attempt to stabilize the exchange rates of major industrial countries differ widely. They range from advocacy of pure floating, a view espoused especially by those who believe that exchange rates always reflect fundamentals and that governments and central banks do not possess knowledge superior to that of the market in such matters, to proposals for the introduction of a single world currency. Intermediate proposals include target zones, a quasi-fixed exchange rate regime among the major currencies to be achieved by monetary policy rules aimed at the exchange rate, and various schemes for policy coordination that would take the exchange rate into account.

There are two basic objections under current circumstances to any scheme that would attempt to achieve substantial fixity of exchange rates among the euro, yen, and dollar:

the first is that it would require largely devoting monetary policy to the requirements of exchange rate stability, which is likely to conflict with domestic objectives, including the objective of reasonable price stability. Indeed, the fact that movements of exchange rates among the major currencies have, on many occasions, reflected divergences in cyclical positions among the countries concerned and in the stances of monetary policy needed to achieve price stability and to support growth indicates that this concern is warranted;

second, the three major-currency areas do not conform to the usual criteria for an optimum currency area. The past decade has highlighted their lack of synchronization in economic activity and there is no reason to believe that differences across them would not continue to prevail in the future. In the absence of the type of political commitment that accompanied the euro's introduction, any attempt at fixing the exchange rates of the triplet could lack credibility and be rapidly undone by the market.

Nevertheless, a case can be made for monitoring potential major misalignments within the IMF's surveillance process and for occasional corrective measures.

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World TourismExchange Rate Regimes of Medium-Sized Industrial Countries

Pegged exchange rate regimes have been extensively used over the past quarter century by medium-sized industrial countries, most notably in the exchange rate mechanism (ERM) of the European Monetary System. The presence of some residual restrictions on international capital movements, as well as the willingness to make parity adjustments before disequilibria became too large, contributed to the relatively smooth functioning of the ERM system in the 1980s. Subsequently, however, the system became subject to the major "asymmetric shocks" associated with German unification, and became more vulnerable owing to increasing capital mobility and the hardening of exchange rate parities following the negotiation of the 1991 Maastricht Treaty on political and monetary union. The system came under severe strain during 1992–93, when speculative pressures led to the withdrawal of Italy and the United Kingdom. The ERM then operated relatively smoothly during the years leading to the advent of the euro and the formation of European Monetary Union in 1999, which removed the risk of exchange rate crises within Europe and vindicated efforts to achieve convergence.

A number of other medium-sized industrial countries have successfully maintained floating exchange rate regimes over long periods, accepting that rates will move regularly and sometimes quite substantially in response to market forces. These countries include Canada which initially adopted a floating regime during 1952–60, and returned to floating in 1970, before the general collapse of the Bretton Woods system; Switzerland; and Australia and New Zealand, which have diversified trade partners as well as dependence on commodity exports. In the absence of an exchange rate peg, these countries have needed to establish an alternative nominal anchor for their monetary policies through a credible commitment to low inflation, which has in some cases been facilitated by an inflation target and operational independence for the central bank.

Important Countries and Capitals in World Tourism

Destination Country

International Visitors 2012 (in Million)

Famous Tourist Spots

Location Currencies

Eiffel Tower Paris St. Tropez French Riviera Palace of Versailles

Versailles

Mont Saint-Michel

Normandy

Palais des Papes Avignon Dune of Pyla La Teste-de-Buc

France 83

Chartres Cathedral

Chartres

Euro, CFP franc

Grand Canyon Northern Arizona

Manhattan New York

Yellowstone Wyoming

USA 67

Golden Gate Bridge

Between San Francisco and Marin

Dollar

Contd…


Niagara Falls Between New York and Ontario

White House Washington DC The Great Wall of China

Across North China

Terracotta Army Xi'an The Bund Shanghai Victoria Harbor Hong Kong

China 57.7

The Yellow Mountains

Huangshan

Renminbi

Real Palacio Madrid La Concha San Sebastian Aqueduct of Segovia

Segovia/Iberian Peninsula

Sagrada Familia Barcelona

Spain 57.7

Alhambra Palace Granada

Euro

Roman Colosseum

Rome

Leaning Tower of Pisa

Pisa

St. Peter's Basilica Vatican City Grand Venice Canals

Venice

Italy 46.4

Capri Island Italy

Euro

Cappadocia Central Anatolia Hierapolis (Sacred City)

Southwest Anatolia

Istanbul Turkey

Ephesus Selcuk, Izmir

Turkey 35.7

Sumela Monastery Macka, Trabzon

Turkish lira

The Berlin Wall Berlin Hamburg City Hall

Hamburg

Giant Old Church Cologne Check Point Charlie

Berlin

Dresden Germany Munchen/Munich Germany

Germany 30.4

Neuschwanstein Palace

Fussen

Euro

The Eden Project Cornwall UK 30.4 The Isle of Skye Scotland

UK £

Contd…

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World TourismShakespeare's Globe

London

Holkham Bay Norfolk The Backs Cambridge

Edinburgh UK Torquay UK Mother Motherland

Kiev

Saint Basil's Cathedral

Moscow

Hermitage Museum

St Petersburg

Moscow Kremlin Moscow Lake Baikal Siberia

Russia 25.7

Kizhi Island Karelia

Russian ruble

Petronas Twin Towers

Kuala Lumpur

Eye on Malaysia/Ferris wheel

Kuala Lumpur

Kota Kinabalu Sabah Melaka Malacca Langkawi Kedah Sunway Lagoon Petaling Jaya

Malaysia 25

Batu Caves Kuala Lumpur

Malaysian ringgit

3.3 WORLD TOURISM ATTRACTION With an approximately infinite number of reasons to go for a vast holiday destinations, tourist boards have constantly looked to discover if not generate, new and exclusive reasons to attract rich prospect tourists to their location. Some have established to be victorious in their activities, making attentiveness of attractions in their jurisdictions that are now taken as must-see attractions by visitors all across the world. From the Great Barrier Reef to the man-made attractions of Disney World or the ancient ruins of Angkor Wat, these tourist attractions have had an unquestionable character with tourists for a lot of years and will keep on to do so. Why? For the reason that these attractions strike into and complete a basic human wish. That is, the wish to run away from dull reality into a dream, a diverse world completely.

However one of the key constituent that adds to the timelessness of the aforesaid spaces is how spectacularly classic they are. In spite of their differences, these attractions are just so inspiring that they give even magnificence tourists with a forceful cause to take a trip to the place they occupy, and more often than not exclusively for that reason.

Let’s think two more appropriate ways in which unbelievable, astounding and, in some cases, improbable holiday destinations will draw the wealthy visitor of tomorrow:


Extravagantly themed destinations and resorts – the revival of the niche.

Today’s magnificence travellers have turned out to be gradually more uneven in their feast preferences. High-end developers have given a constant extra exclusive and much-needed channel of get away for travellers looking to sincerely treat in their particular fancy while away. Consider these examples:

Water Discus Underwater Hotel, Dubai

Source: http://hypebeast.com/2012/5/dubai-water-discus-underwater-hotel

Located on a tropical coral reef off the coast of Dubai, the Water Discus Underwater Hotel is located in the tropical coral reef of the coast of the Dubai which is a luxury resort complex made by Polish firm Deep Ocean Technology. With both above-water compartments and underwater compartments, the 21-room hotel give underwater views of marine life, rooftop gardens an underwater dive centre and diving lessons, as well as water sports facilities, and swimming pools, and a helipad. Construction of the resort commenced in late 2012.

Kung Fu Kingdom, China

Source: http://www.allposters.com/-sp/Shaolin-Monastery-Shaolin-Birthplace-of-Kung-Fu-Martial-Art-Henan-Province-China-Posters_i6060979_.htm

The Chinese city of Wudang in recent times announced campaigns to construct the world’s first tai chi and Kung Fu-themed amusement park. Set to open in 2015,

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World TourismWudang Kung Fu City will be built at the bottom of the Wudang Mountains, the origin of Kung Fu, and house to some of China’s main Taoist shrines. The theme park will comprise stroke rides that are based on traditional icons like the Monkey King, and mark procedures like daily specialist performances of tai chi and services such as traditional teahouses.

Real Madrid Resort Island, United Arab Emirates

Source: http://inhabitat.com/soccer-team-real-madrid-to-build-1-billion-artificial-island-resort-in-uae/

In 2012, Spanish soccer club Real Madrid announced that it had commenced construction of the Real Madrid Resort Island in the northern Emirate of Ras al-Khaimah. Located on a mock land mass, the $1bn resort is programmed for completion in January 2015, providing 4.6 million square feet of leisure facilities that include hotels, soccer-themed club museum a soccer stadium and training college, and a marina. The island will be made in the shape of the soccer club’s logo.

Flamboyantly ‘faketastic’ attractions – the ultimate antidote to authenticity

We heard a lot about the travellers seeking out genuine educational experiences and entirely natural environment, but don’t ignore the unavoidable counter-trend. A lot may be content with, holiday experiences that are brashly not natural, and yet go far away from the normal in their implementation.

Hallstatt Alpine Village, China

Source: http://www.thehelper.net/threads/china%E2%80%99s-pirated-austrian-village-opens.155742/


A replica of an Austrian village near Huizhou has been built by the Chinese metal and mining company China Minmetals Corporation. The original Hallstatt is a UNESCO World Heritage-listed site and the Chinese replica facial appearance copies of the churches, houses, and buildings that can be established in the Alpine village, along with road signs and signposts in Chinese. Sustainable ‘Superpark’, Singapore

Source: http://www.forumforthefuture.org/greenfutures/articles/singapores-new-superpark-takes-inspiration-eden

In 2012, 250-acre eco-park Gardens by the Bay opened in Singapore. Singapore’s National Parks Board spent $1bn on the development. In addition to several conservatories containing exotic plants, it features a canopy of 18 artificial ‘supertrees’. The 50-metre-tall manmade structures are vertical gardens that are linked by elevated walkways, providing ventilation, harnessing solar energy, and collecting rainwater for the park.



1. A replica of an Austrian village near Huizhou has been built by the Chinese metal and mining company China Minmetals Corporation.

2. We heard a lot about the travellers seeking out genuine educational experiences and entirely natural environment, but don’t ignore the unavoidable counter-trend.

3. A lot may be content with, holiday experiences that are brashly not natural, and yet go far away from the normal in their implementation.

4. Today’s magnificence travellers have turned out to be gradually more uneven in their feast preferences.

5. With an approximately infinite number of reasons to go for a vast holiday destinations, tourist boards have constantly looked to discover if not generate, new and exclusive reasons to attract rich prospect tourists to their location.

3.4 TOURISM IN INDIA Tourism to and within India has undergone some important changes in recent years seen by the rising numbers of international tourists and increase in domestic tourism.

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World TourismThis has led to the redevelopment and rebranding of many of its destinations as the Indian government has begun to recognise the potential importance of tourism to the Indian economy and has begun to invest in tourism infrastructure. It is also recognised that as its economy continues to grow at a rapid rate, India will also become one of the most important countries in terms of future outbound tourism.

India is a great country with a haven of tourism delights like wealth of sights, cultural exuberance, and diversity of terrain.

It is no doubt a place of wonder, with creative burst of cultures, races, and religions, over a billion people, 15 official languages, and gifted nature's beauty. Its diversity is out of all bounds. Indians live with variety and thrive on diversity. From mud hut to mansion, there is variety. In every aspect, India is on massive exaggerated scale which can be compared to the superlative Himalayan Mountains. It is set apart from the rest of Asia by the supreme continental wall of the Himalayas. It touches the three large water bodies. This triangular peninsula defined by the Bay of Bengal to the east, the Arabian sea to the west, and the India Ocean to the south has in its store the wealth of natural resources.

The abundance of vast mountain ranges, exciting national parks, enchanting rivers, roaring seas, silent valleys, thrilling waterfalls, historical monuments, holy temples, and diverse tribal culture added with the hospitality of its people, India offers innumerable opportunities for tourism.

Present Situation and Features of Tourism in India

Today tourism is the largest service industry in India, with a contribution of 6.23% to the national GDP and providing 8.78% of the total employment. India witnesses more than 5 million annual foreign tourist arrivals and 562 million domestic tourism visits. The tourism industry in India generated about US$ 100 billion in 2008 and that is expected to increase to US$ 275.5 billion by 2018 at a 9.4% annual growth rate. The Ministry of Tourism is the nodal agency for the development and promotion of tourism in India and maintains the "Incredible India" campaign.

According to World Travel and Tourism Council, India will be a tourism hotspot from 2009-2018, having the highest 10-year growth potential. As per the Travel and Tourism Competitiveness Report 2009 by the World Economic Forum, India is ranked 11th in the Asia Pacific region and 62nd overall, moving up three places on the list of the world's attractive destinations. It is ranked the 14th best tourist destination for its natural resources and 24th for its cultural resources, with many World Heritage Sites, both natural and cultural, rich fauna, and strong creative industries in the country. India also bagged 37th rank for its air transport network. The India travel and tourism industry ranked 5th in the long-term (10-year) growth and is expected to be the second largest employer in the world by 2019. The 2010 Commonwealth Games in Delhi are expected to significantly boost tourism in India further.

Tourist Attractions in India

India is a country known for its lavish treatment to all visitors, no matter where they come from. Its visitor-friendly traditions, varied life styles and cultural heritage and colourful fairs and festivals held abiding attractions for the tourists. The other attractions include beautiful beaches, forests and wild life and landscapes for eco-tourism; snow, river and mountain peaks for adventure tourism; technological parks and science museums for science tourism; centre of pilgrimage for spiritual tourism; heritage, trains and hotels for heritage tourism. Yoga, Ayurveda and natural health resorts and hill stations also attract tourists.

The Indian handicrafts particularly, jewellery, carpets, leather goods, ivory and brass work are the main shopping items of foreign tourists. It is estimated through survey that nearly forty per cent of the tourist expenditure on shopping is spent on such items.


Future Prospects of Tourism in India

According to the latest Tourism Satellite Accounting (TSA) research, released by the World Travel and Tourism Council (WTTC) the future prospects of tourism are as follows:

The demand for travel and tourism in India is expected to grow by 8.2 per cent between 2010 and 2019 and will place India at the third position in the world.

India's travel and tourism sector is expected to be the second largest employer in the world, employing 40,037,000 by 2019.

Capital investment in India's travel and tourism sector is expected to grow at 8.8 per cent between 2010 and 2019.

The report forecasts India to get capital investment worth US$ 94.5 billion in the travel and tourism sector in 2019.

India is projected to become the fifth fastest growing business travel destination from 2010-2019 with an estimated real growth rate of 7.6 per cent.

3.5 TOURISM TYPES Today people are feverishly participating in tourism. This may include short trips during the, weekend breaks or longer journeys during holidays. Old age pensioners have a dream of retiring to a place where the weather is good and the prices low. Without any outside pressure, millions of people flock to destinations of their own free will. Long lines of care, crowded buses and trains and jumbo jet go all over the world. As a result the beaches become too small, shops and restaurants too crowded, porting facilities and the environment degraded and worn down with years of being admired and used, and the world shrinks. For an increasing number of people work is no longer the main purpose of life and this encourages tourism. Modern tourism is one of the most striking phenomena of our times. Tourism offers us an opportunity to learn, to enrich humanity and to identify what may be termed as goals for a better life and a better society. But conservationists want to change things. They want to arrest the spread of the "landscape caters" who have transformed the countryside with their mass migration.

Forms and types of tourism emerge within the context of changing social values. For example, in modern society, the value of being has been superseded by the value of having possession, property, wealth, egoism and consumption have become more important than community, tolerance, moderation, sensibility and modesty. As a result in all parts of the world:

Economy is characterized by increasing concentration of earth, division of labour and specialization.

Environment is being treated as if resources are renewable.

The limits of eco-system are stretched without considering the negative aspects, and

Peoples' rights are constantly corded to meet the needs of the power system, etc.

Forms of tourism emerge from different fields of tension such as work/rest, awake/ asleep, exertion/relaxation, income/expenditure, job/family, freedom/necessity, risk/ security, similarly, dirt, noise, rush, pollution and trouble etc., are all key expression of such tension. The possibility of going away is very important is such a context.

The desire for tourism is therefore determined socially. Government promote tourism, people talk about their holidays, unions sponsor holidays, health insurance covers visits to spas, tax rebates are given for holiday homes and corporations reward employees with travel instead of bonus money. Seasonal pressure strengthen the urge

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World Tourismto get away from home, Annual vacations, the Media, literature and fashion all strengthen the holiday mania. The tourism industry whets the appetite with tantalizing offers of entertainment and pleasure. The commercialization of recreation functions within the well-established principles of a free market economy. In the past, in the erstwhile socialist countries have a transport subsidy called the leave Travel Concession and most companies provide holiday homes for their workers, but tourism is primarily a private enterprise. A study of tourist brochures indicates the successful design of a tourist visit:

1. Create a holiday mood by emphasizing informality, abandonment, scenery, freedom, pleasure.

2. Show time, standing still, romanticism and relaxation, peace and space.

3. Show something beautiful that is not available at home. And typical holiday symbols like the sun, a beach umbrella, a palm fringed coastline, etc.

4. Show people from other cultures, always beaming, happy, friendly and idle.

All four ingredients form the tourism mix. However, in today's context the different types of tourism are as follow:

Rest and Recuperation: Taking a rest from everyday life; relieve the stress of societies that have shifted from manual to sedentary work. Tourism as diversion or compensation to holiday destination is what may be called holiday or vacation travel which is focused on resorts and beach holiday's both domestic and international.

Escape: Tourism as a mass flight from everyday reality to an imaginary world of freedom. This flight take place within the movements from centres to peripheries or in other words a North-South migrating.

Communication: Spending quality time with family and friends, make new friends and acquaintances. This is mass tourism, in herds, enjoying the facilities of tourism enclave.

Culture and Education: Such Tourism is based on sightseeing tours to experience and see other countries of the world though not necessarily in depth.

Freedom: Tourism frees you from home and work and is directed towards facilities and comfort rather than experience.

Health: Visit spas, go to saunas, undergo cures for chronic ailment, visit health club for workouts or do yoga i.e. travel for health.

Special Interest Tours: Is organized as per the special interests of the tourist ranging from medical, historical, archaeological and other interests to golf or fishing.

Adventure and Wild Life: Far away from modern civilization, with bears and porters and mules, camels, elephants or jeeps mixing trekking and hiking and camp life with the luxury of a first class hotel.

Convention Tourism: To mix leisure with work, holding convention or meetings at tourist destinations.

Different forms of tourism also give rise to different types of tourist.

The ridiculous tourist who is dressed in funny clothes and views everything through the lens of a camera

The naive tourist who is inexperienced in travel always asks unnecessary questions and has no language skills

The organized tourist who feels at home with a guide and a group of follow tourist

The ugly tourist who behaves as if he owns the world


The uncultured tourist who is an each bum and spends his time taking and eating

The exploiting tourist who spends a holidays at the cost of people and takes advantage of their culture hospitality and poverty

The polluting tourist who demands that for his comfort everything can be flattened or destroyed

The alternative tourist who explores the few untouched corners of the world thus opening the way to mass tourism

3.6 TRANSPORTATION COMMERCIAL AVIATION

Transportation Commercial aeronautics is the part of civil aviation (both general aviation and scheduled airline service) that includes working aircraft for hire to transportation commuters or cargo.

3.6.1 General Aspects In almost countries, a flight may be worked for money only if it meets three criteria:

the operator must hold a certificate or some other authorization for commercial operations

the aircraft must hold a valid commercial registration

the pilot must hold a valid commercial pilot's certificate

There are some exemptions — for instance, a flight teacher is normally allowed to fly for money in a private aircraft owned by the student — but the above requests hold for maximum flights where money variations hands.

Classically, a commercial record or process needs higher values than a private one. For example, a profitable pilot may have to establish more manoeuvres to a higher standard, and may essential to pass more recurrent medical examinations. A commercially recorded aeroplane may need more frequent or more wider maintenance.

It is the goal of the flight, not the type of aircraft or pilot that controls whether the flight is profitable. For example, a two-seat Cessna 150 towing a banner for money would be a profitable flight, while a large jet flown by its holders for a private holiday could not be, even if the pilots were commercially certificated and the jet were commercially registered.

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World Tourism3.6.2 Emergency Oxygen Systems

Emergency Oxygen Masks Deployed

Most commercial airplane is tailored with oxygen masks for usage when cabin pressurisation becomes unsuccessful. Generally, marketable aircraft are pressurized so that the cabin air is at a pressure equal to no additional 8,000 feet, where one can respire generally with no oxygen mask. If the oxygen pressure in the cabin falls below a safe level, risking hypoxia, sections comprising the oxygen masks will open spontaneously, either above or in front of the passenger and crew seats, and in the lavatories.

3.7 AIR TAXI OPERATION An air taxi is an air charter commuter or goods aircraft which works on an on-demand basis.

In 2001, Air taxi operations were commercialized in the United States by a NASA and aerospace business study on the potential Small Aircraft Transportation System (SATS) and the growth of light-jet aircraft manufacturing.

Air taxi operator means an aircraft operator who brings the processes in an aircraft with 30 or less passenger seats and a cargo capacity of 7,500# or less, for hire or advantage. An air taxi operator works on-demand base and does not have the flying scheduled experiences of a traveller. Pursuant to 14 CFR 298.21, an air taxi operator is essential to record with the Civil Aeronautics Board and to reintroduce the registering semi-annually. An air taxi operation must not use big aircraft and must preserve liability assurance. A commuter air carrier is chosen as any air taxi operator which makes at least five round trips per week between two or more points and issues flight plans which identify the times, days of the week and places among which such flights are performed.

In Forum Ins. Co. v. Seitz Aviation, Inc., 241 Kan. 334 (Kan. 1987), the court observed that “Air taxi operator means an air carrier coming within the classification of air taxi operators established by 14 C.F.R. § 298.3 (1986). 14 C.F.R. § 298.2(b) (1986). 14 C.F.R. § 298.3 set forth the classification:

There is hereby established a classification of air carriers, designated as "air taxi operators," which directly engage in the air transportation of persons or property or mail or in any combination of such transportation and which:

Except as provided in 14 C.F.R. § 298.5, do not directly or indirectly utilize large aircraft in air transportation;


Except as provided in 14 C.F.R. § 298.5, do not hold a certificate of public convenience and necessity or economic authority issued by the Board other than that provided by this part;

Have registered with the Board in accordance with Subpart C of this part;

Have and maintain in effect liability insurance coverage in compliance with the requirements set forth in Subpart E of this part and have and maintain a current certificate of insurance evidencing such coverage on file with the Board.”

3.8 PRIVATE AVIATION Private aviation process is the part of civil aviation that does not comprise flying for hire.

In most countries, private flights are always general aviation flights, but the reverse is not true: many overall aviation flights (such as banner towing, charter, crop dusting, and others) are commercial in that the pilot are employed and paid. Numerous private pilots fly for their own pleasure, or to share the joys and suitability of general flying with friends and family.

In private flight the pilot is not salaried, and all aircraft working expenditures are usually paid by the pilot. In some countries like the United States, aircraft working expenditures for a flight may optionally be divided with any travellers up to a pro rata amount. For example, if aircraft working expenditures total $120 for a flight with pilot and three travellers, each of the three passengers could pay not more than $30 (one fourth) of the expenses with the remainder paid by the pilot.

It is the purpose of the flight, not the aircraft or pilot that determines whether the flight is private. For example, if a commercially licensed pilot flies a registered plane to visit a friend or attend a business meeting, most countries would consider this to be a private flight. Conversely, a private pilot could legally fly a multi-engine complex aircraft carrying numerous passengers for non-commercial purposes (no compensation paid to the pilot, and a pro rata or larger portion of the aircraft operating expenses paid by the pilot).


Fill in the blanks:

1. It is the purpose of the flight, not the aircraft or pilot that determines whether the flight is ……………………..

2. Numerous private pilots fly for their own …………………….., or to share the joys and suitability of general flying with friends and family.

3. An …………………….. is an air charter commuter or goods aircraft which works on an on-demand basis.

4. …………………….. is the part of civil aviation (both general aviation and scheduled airline service) that includes working aircraft for hire to transportation commuters or cargo.

3.9 LET US SUM UP Tourism is travel for recreational, leisure, or business purposes. The World Tourism Organization defines tourists as people "travelling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes".

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World TourismTourism is an excellent way to develop a country, but it can also cause harm. How can countries ensure that tourism benefits the development? It is irrefutable that tourism has become the backbone of many economies of the world. In fact many countries rely on the tourist dollar for their development. This has also led to damage of the natural environment and at many places the tourist places have been so much littered that they have ceased being a tourist attraction any more.

Leisure travel was associated with the Industrial Revolution in the United Kingdom – the first European country to promote leisure time to the increasing industrial population. Initially, this applied to the owners of the machinery of production, the economic oligarchy, the factory owners and the traders. These comprised the new middle class.

3.10 LESSON END ACTIVITY Prepare a quiz on tourism forms and types for your classmates.

3.11 KEYWORDS Physical: Of or relating to the body as opposed to the mind.

Psychological: Of, affecting, or arising in the mind; related to the mental and emotional state of a person.

Pleasure: A feeling of happy satisfaction and enjoyment: "she smiled with pleasure at being praised".

Recuperation: Convalescence: gradual healing (through rest) after sickness or injury.

3.12 QUESTIONS FOR DISCUSSION 1. Define tourism.

2. What are the different forms of tourism?

3. What are the future trends of tourism?

4. Explain taxi operation.

5. Describe private operation.

6. Explain Transportation Commercial Aviation.


CYP 1

1. True

2. True

3. True

4. False

5. True

CYP 2

1. private

2. pleasure

3. air taxi

4. Transportation Commercial aeronautics


3.13 SUGGESTED READINGS Beaver, Allan (2005), A Dictionary of Travel and Tourism Terminology, CABI.

Bhatia, Arjun Kumar (2006), International Tourism Management, Sterling Publishers Pvt. Ltd.

Archer, Jane & Syratt, Gwenda (2012), Manual of Travel Agency Practice, Routledge.

Bhatia, A. K. (2006), The Business of Tourism: Concepts and Strategies, Sterling Publishers Pvt. Ltd.

Blanke, Jennifer & Chiesa, Thea (2007), The Travel & Tourism Competitiveness Report 2007: Furthering the Process of Economic Development, World Economic Forum.

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IATALESSON

4 IATA

CONTENTS


4.1 Introduction

4.2 Early Days of IATA

4.3 IATA Aims and Objectives

4.4 Functions of IATA

4.5 International Civil Aviation Organization (ICAO)

4.5.1 Aims and Objectives

4.5.2 Role of ICAO

4.6 Organisational Structure at IATA

4.6.1 IDFS – Industry Distribution and Financial Services

4.6.2 MGR – Member and Government Relations

4.6.3 SO&I – Safety Operations and Infrastructure

4.6.4 MACS – Marketing and Commercial Services

4.6.5 CS – Corporate Services

4.6.6 HC – Human Capital

4.7 IATA Geography and Global Indicator

4.8 Travel Agent Management

4.9 Travel Partner

4.10 Aircraft Handling

4.11 Let us Sum up


4.13 Keywords




Discuss the characteristics of IATA

Describe the role and responsibility of the IATA


Identify the development of IATA

Explain the competency requirements for supply chain managers

4.1 INTRODUCTION IATA - The International Air Transport Association - was founded in Havana, Cuba, in April 1945. It is the prime vehicle for inter-airline cooperation in promoting safe, reliable, secure and economical air services – for the benefit of the world's consumers. The international scheduled air transport industry is now more than 100 times larger than it was in 1945. Few industries can match the dynamism of that growth, which would have been much less spectacular without the standards, practices and procedures developed within IATA.

At its founding, IATA had 57 members from 31 nations, mostly in Europe and North America. Today it has some 230 members from 126 nations in every part of the globe. The modern IATA is the successor to the International Air Traffic Association founded in The Hague in 1919 – the year of the world's first international scheduled services.

Source: http://www.iata.org/hc/Documents/WelcometoIATA.pdf

Figure 4.1: IATA Office Locations

IATA has had six Director Generals since 1945. Tony Tyler, their current Director General and Chief Executive Officer, took the helm in 2011.

Governance: IATA is a not-for-profit, business-driven trade association with a balance of commercial and non-commercial activities.

Annual General Meeting (AGM): The top governance body of IATA meets once a year. It approves the dues assessment to member airlines and elects the Board of Governors as part of its agenda.

IATA Board of Governors: Composed of 31 CEO’s from Member airlines, this group meets twice a year. Its main function is to exercise an oversight and executive role on behalf of the membership. The Board of Governors also elects and supervises the Director General and Chief Executive Officer of IATA and approves the annual operating budget.

Executive Management Group (EMG): The top management body of IATA includes the DG, the Senior Vice Presidents and the Vice President, Human Capital.

4.2 EARLY DAYS OF IATA The old IATA was able to start small and grow gradually. It was also limited to a European dimension until 1939 when Pan American joined. The post-1945 IATA immediately had to handle worldwide responsibilities with a more systematic organisation and a larger infrastructure.

This was reflected in the 1945 Articles of Association and a much more precise definition of IATA's aims than had existed before 1939.

To promote safe, regular and economical air transport for the benefit of the peoples of the world, to foster air commerce, and to study the problems connected therewith;

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IATATo provide means for collaboration among the air transport enterprises engaged directly or indirectly in international air transport service;

To cooperate with the newly created International Civil Aviation Organization (ICAO – the specialised United Nations agency for civil aviation) and other international organisations.

The most important tasks of IATA during its earliest days were technical, because safety and reliability are fundamental to airline operations. These require the highest standards in air navigation, airport infrastructure and flight operations. The IATA airlines provided vital input to the work of ICAO, as that organisation drafted its Standards and commended Practices. By 1949, the drafting process was largely complete and reflected in "Annexes" to the Chicago convention, the treaty which still governs the conduct of international civil aviation.

In those early days, ICAO coordinated regional air navigation and support for airports and operational aids in countries which could not themselves afford such services. IATA provided airline input to ICAO and to sessions of the International Telecommunications Union on wavelength allocation.

The standardisation of documentation and procedures for the smooth functioning of the world air transport network also required a sound legal basis. IATA helped to mesh international conventions, developed through ICAO, with US air transport law which had developed in isolation prior to World War Two. The Association made a vital input to the development of Conditions of Carriage the contract between the customer and the transporting airline. One early item on the legal agenda was revision and modernisation of the Warsaw Convention – originally signed in 1929 – on airline liability for passenger injury or death and cargo damage or loss. This work continues.

Once they were operating within a sound technical and legal framework, airlines' next requirements were for answers to questions such as: who can fly where? What prices are to be charged? How is the money from multi-airline journeys – that is, interlining – to be divided up, and how do airlines settle their accounts?

The Chicago Conference of 1944 which gave birth to the Chicago Convention tried to achieve a multilateral answer to the first two questions, but failed to do so. The questions of who flies, and where, were resolved on a bilateral basis. The benchmark Bermuda Agreement of 1946 between the US and the UK was the first of almost 4,000 bilateral air transport agreements so far signed and registered with ICAO.

In the early days, governments insisted on the right to oversee the prices charged by international airlines but could not, in practical terms, develop those prices for themselves. IATA was delegated to hold Traffic Conferences for this purpose, with all fares and rates subject to final government approval. The aim was twofold: ensuring that fares and rates would not involve cut-throat competition, while ensuring that they could be set as low as possible, in the interests of consumers.

A coherent pattern of fares and rates pattern was established, avoiding inconsistencies between tariffs affecting neighbouring countries – and thereby avoiding traffic diversion. The predictability of fares and rates in this pattern also enabled airlines to accept each other’s tickets on multi-sector journeys and thus gave birth to interlining. Today, 50 million international air passengers a year pay for their ticket in one place, in one currency, but complete their journey using at least two, and sometimes five or more, airlines from different countries using different currencies.

The first worldwide Traffic Conference was held in Rio de Janeiro in 1947. It reached unanimous agreement on nearly 400 resolutions covering all aspects of air travel. Fare construction rules for multi-sector trips, revenue allocation – pro-rating – rules, baggage allowances, ticket and air waybill design and agency appointment procedures were typical details agreed at this pioneering meeting.


Today, that pioneering work is reflected in the currently applicable IATA Resolutions dealing with these and many other subjects. Notable examples are:

Multilateral Interline Traffic Agreements: These are the basis for the airlines' interline network. Close to 300 airlines have signed them, accepting each other’s tickets and air waybills – and thus their passenger and cargo traffic – on a reciprocal basis.

Passenger and Cargo Services Conference Resolutions: These prescribe a variety of standard formats and technical specifications for tickets and air waybills.

Passenger and Cargo Agency Agreements & Sales Agency Rules: These govern the relationships between IATA Member airlines and their accredited agents with regard to passenger and cargo.

Debt Settlement between airlines, largely arising from interlining, takes place through the Clearing House, which began operations in January 1947. During its first year, 17 airlines cleared (US) $26 million. The IATA Clearing House today.

4.3 IATA AIMS AND OBJECTIVES In many ways, those tasks remained the same as in 1945, or even in 1919. But IATA gave them new relevance and focus by redefining its mission and goals in 1994:

Safety and Security: To promote safe, reliable and secure air services.

Industry Recognition: To achieve recognition of the importance of air transport worldwide social and economic development.

Financial Viability: To assist the industry to achieve adequate levels of profitability, by optimising revenues (yield management) while minimising costs (fuel, charges and taxation).

Products and Services: Provide high-quality, value for money, industry required products and services that assist the airlines in meeting the needs of the consumer.

Standards and Procedures: To develop cost-effective, environmentally-friendly, standards to facilitate the operations of international air transport.

Industry Support: To identify and articulate common industry positions and support the resolutions of key industry issues (congestion, infrastructure).

These objectives proved to be relevant and most were carried over to the new millennium, where they still form most of IATA’s current mission.

At IATA their values include:

Place their people first

Achieve results with speed

Embrace innovation and change

Work as a unified team with cultural intelligence

Act with integrity

Demonstrate leadership

4.4 FUNCTIONS OF IATA The functions of IATA are centred on the achievement of its objectives, which benefit the airlines across the globe: (i) Challenging unreasonable rules and charges; (ii) Holding regulators and governments to account; and (iii) Striving for sensible regulations.

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IATAThe organization performs several functions like:

Preparation of International Time Tables for air travel

Establishing networks through effective use of telecommunications and computerization

To train travel and flight agents

Improving security standards in air travel

To control and monitor all legal issues

To streamline rules and regulations for passenger and cargo traffic at airports

Solving all issues pertaining to international air travel, and

To standardize the ticketing and reservation systems and procedures.

It is mandatory for an airline to get certified from the respective governments as a scheduled airliner of the country. While the international operators are regarded as full time members of IATA, the domestic airlines are considered as associates in the organization. It has a staff of around 500 employees and organizes international seminars on a regular basis on matters related to issues covering all aspects of aviation industry. The issues may be ticketing, baggage checks, preparation of bills, etc.

For fare calculations, IATA has divided the world into three regions:

South, Central and North America.

Europe, Middle East and Africa.

Asia, Australia, New Zealand and the islands of the Pacific Ocean.

IATA provides valuable support to the members in many functions covering areas of finance, security, operations, strategic management, safety and training.

The IATA Operational Safety Audit (IOSA) programme is an internationally recognized and accepted evaluation system designed to assess the operational management and control systems of an airline. The IOSA certification has now become a mandatory requisite for all IATA member airlines.

IATA is pivotal in the worldwide accreditation of travel agents with exception of the US where this is done by the Airlines Reporting Corporation. Permission to sell airline tickets from the participating carriers is achieved through national member organizations. Over 80 per cent of airlines' sales come from IATA accredited agents.

The IATA/IATAN ID Card is the only globally recognized industry credential for the travel professional. Industry Suppliers worldwide rely on the IATA/IATAN ID Card to reach out to individual travel professionals offering exclusive incentives and educational programs.

The implementation of the IATA Safety Audit for Ground Operations (ISAGO) aims to improve safety and cut airline costs by drastically reducing ground accidents and injuries.

Any person involved in international airfreight and complying with appropriate license and legal requirements may apply for registration as an IATA Cargo Agent.

Affording benefits to airlines and agents, IATA accreditation provides agents with industry recognition of their financial and professional competence and airlines with a worldwide distribution network of approved agents to sell their product.

In the airline business, the safety of passengers and crew is an absolute must. That applies to every aspect of airline travel; including food. IATA's Catering Quality Assurance programme (ICQA) takes a fresh approach to food safety and quality. It


was designed to regularly assess and encourage caterers' compliance with food processing safety and quality standards set by airlines.

IATA publishes standards for use in the airline industry. The Bar Coded Boarding Pass (BCBP) standard defines the 2-Dimensional (2D) bar code printed on paper.

IATA provides for simple quality measurement system for ground handling services. The system ensures feedback by the service provider to the customer on regular basis to match standards as fixed by the customer.

The purpose of IATA is to achieve a coordinated and sustained effort among various airlines for standardizing the air travel rules and regulations regarding passenger and cargo movements, including safety and security at airports. IATA controls and decides the international ticketing procedures and decides the fares among various sectors that are to be followed by all member airlines. It shall honour the bilateral agreements between two countries in implementing agreed fares. However, IATA shall have no jurisdiction on the fares in respective domestic sectors.

IATA Clearing House: IATA revenue sharing procedure is applicable to international tickets and cargo fares. This is referred to as "Clearing House". It is part of the system of International Air Transport Industry to enter into various Agreements, covering the transfer of passengers, freight and mail from one company to another. These agreements make it possible for passengers and cargo service providers to purchase multi-sector journeys involving transportation on any number of different airlines.

The effective and efficient settlement of these intra and inter transactions shall have bearing on the functioning of various organizations to ease the working capital pressure. Each partner or service provider must be able to promptly collect the dues from the ticketing airlines and travel partners on time. The IATA Clearing House settles around US Dollars 50 billion in interline and service transactions each year. Some 75 per cent of these are settled through the netting process, requiring balancing of amounts and no movement of funds, assuring high credit and currency protection to its users. This operates similar to a bank's clearing house.

IATA Membership: The airlines willing to be a member of IATA should submit the following details along with the application and a prescribed fee of US $ 15,000:

Certificate of Registration with appropriate authority e.g., Chamber of Commerce or equivalent.

Audited Financial Statements for the applicant airline, and if majority owned by another company (including state ownership), the financial statements of the owner company should also be furnished. A chartered or public accountant must certify these statements. For new airlines, a business plan prepared by a chartered or public account is acceptable.

The Annual Report of the applicant airline, or company by-laws showing how it is constituted, or airline profile.

Valid insurance certificates with aircraft type, registration number for each aircraft and respective details of registering authority, valid for a minimum of six months.

Traffic statistics for the preceding two years. This requirement does not apply to new airline.

Published timetable/schedule, if the airline has scheduled operations.

IATA recommended charges are mandatory for all members and should be adopted. The pricing depends on the profitability and the traffic demand. For example, the charges on Europe-US may be less than the charges on Europe-India sector because of the high traffic on the former sector. Other criterion is the competition and costs involved shall also have a bearing on fixing the tariffs. IATA also regulates any

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IATAunethical practices by air lines and agents, which may print a higher tariff on the ticket but subsequently may offer discounts to take undue advantage of competition; in such cases IATA shall levy penalties to erring airline/agent.

4.5 INTERNATIONAL CIVIL AVIATION ORGANISATION (ICAO) Operation of an air plane requires precise and meticulous procedures and systems, which is made possible by the existence of universally accepted standards known as Standards and Recommended Practices, or SARPs. This cover all technical and operational aspects of international civil aviation, such as safety, personnel licensing, operation of aircraft, airports, air traffic services, accident investigation and the impact on environment. ICAO, which is established in the year 1944 with headquarters in Montreal, Canada, is promoted exactly with the same mission of ensuring air safety and establishing standardised practices that should be universally followed. Since 1947, ICAO functions as an organ of UNO. ICAO defines the protocols for air accident investigation followed by various transport safety authorities in countries signatory to the Convention on International Civil Aviation, known as the "Chicago Convention".

4.5.1 Aims and Objectives

Objectives of ICAO: ICAO works to achieve its vision of safe, secure and sustainable development of civil aviation through cooperation amongst its member States. To implement this vision, the Organisation has established the following Strategic Objectives for the period 2005-2010.

Safety: Enhance global civil aviation safety.

Security: Enhance global civil aviation security.

Environmental Protection: Minimize the adverse effect of global civil aviation on the environment.

Efficiency: Enhance the efficiency of aviation operations.

Continuity: Maintain the continuity of aviation operations.

Rule of Law: Strengthen laws governing international civil aviation.

4.5.2 Role of ICAO The role of ICAO in air travel and management is commendable. It sets standards for safe and secure passenger and cargo transport with continuous technical and strategic support to member countries and the service providers in aviation industry.

The organisation's concentrated efforts are aimed at passenger safety and security, training and development of human resource of travel partners.

It strives hard for elimination of indiscriminate competition among various parties and tries uniformity in operations. Further helps sort out the immigration related issues and tries to simplify the customs and duties of various member countries. There are at present 130 member countries in ICAO.

It helps in coordinated efforts among different countries and development of standards for airports and maintenance of aircraft.

As part of UNDP (United Nations Development Programme), it resorts to improve and provide the technology for ground control systems, and in-flight services.

Assembly is an important part of ICAO. All members of ICAO are members to its general assembly. As on 2008, there are 190 member countries. The assembly operates independently and meets once in three years to discuss in detail the activities


of the organisation. It also develops action plan for the ensuing period of three years till it meets. The Assembly constitutes a Council with 36 member countries. Assembly shall elect these members once in three years. Further, the council is constituted with:

Those countries having significance in the aviation industry;

Countries, which render services for the growth and development of international civil aviation; and

Countries, which possess geographical location advantage.

The Council shall work as governing body and supervise the organisation’s overall functions. There are three more divisions: (i) Air Navigation Committee; (ii) Air Transport Committee; and (iii) Legal Committee.

ICAO shall oversee the bilateral agreements among different member countries. For example, to run 10 services from India to UK, Government of UK may also demand similar number of services to India. In case India wishes to operate flight to New York US via London in UK, it has to agree for UK flights to operate via Indian destinations, like Mumbai or Delhi to Hong Kong and Singapore. Hence all this type of agreements of varied nature is executed under the provisions and supervision of ICAO. There are millions of people who work day and night for the safe passage of thousands of air planes flying the skies- 24 hours, 365 days a year. This round the clock operation demands meticulous support from man and machines. Coordination is vital among Pilots, Air Controllers, and Weather Scientists. Standardisation of procedures and establishing advanced technical equipment should be common to all airplanes and airports; this is ensured by ICAO standards. The ICAO also standardises certain functions for use in the airline industry, such as the Aeronautical Message Handling System AMHS; this probably makes it a standard organisation.

ICAO has also brought an enactment to trail and punish the crimes on air travel, like hijacking and drug traffic. The Security and Facilitation Policy Section is responsible for the management of the ICAO Aviation Security Programme.

While IATA resolves issues and challenges among various partners to air travel, ICAO helps the member countries to establish and improve safety and security aspects of air travel. Even though there may not be direct link with tourism, these organizations by helping the promotion and growth of air travel shall indirectly support the sector. India is a member to the Council right from the inception. It is to be noted that Dr S. S. Siddhu, an Indian was Secretary General to ICAO during 1991. In the ICAO General Assembly held in Montreal from 18th to 28th September 2007, India has been re-elected to the Council of ICAO for a period of 3 years. India has consistently been elected to the Council since 1944.

Civil aviation is a powerful force for progress in modern global society. It creates millions of jobs directly and indirectly, ranging from more technical and highly skilled jobs to manage the aircrafts to semi-skilled ground duty and unskilled cleaning staff employed in the air ports. It forms part of the economic lifeline of many countries. It is a catalyst for travel and tourism, the world's largest industry. Beyond economics, air transport enriches the social and cultural interactions of society and contributes to the attainment of peace and prosperity throughout the world.



1. While IATA resolves issues and challenges among various partners to air travel, ICAO helps the member countries to establish and improve safety and security aspects of air travel.

2. Civil aviation is a powerful force for progress in modern global society. Contd…

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IATA3. ICAO shall oversee the bilateral agreements among different member

countries.

4. The role of ICAO in air travel and management is commendable. It sets standards for safe and secure passenger and cargo transport with continuous technical and strategic support to member countries and the service providers in aviation industry.

4.6 ORGANISATIONAL STRUCTURE AT IATA There are the five divisions within IATA that report directly to the DG/CEO along with six departments.

Source: http://www.iata.org/hc/Documents/WelcometoIATA.pdf

Figure 4.2: IATA’s Organisational Structure

4.6.1 IDFS – Industry Distribution and Financial Services IATA’s financial business unit, IDFS processes over 300 billion US dollars annually. This division develops the industry standards, infrastructure, products and programs that enable airlines and agents to provide high-quality services worldwide.

Key activities are:

Operating a worldwide distribution, billing and settlement system. The IATA Billing and Settlement Plan, BSP, performs this function for the passenger side of the business while the Cargo Agency Settlement System, CASS applies to cargo. A truly worldwide system facilitating the settlement operations for airlines and travel agents, BSP operates in 170 countries. CASS operations are deployed in over 60 IATA offices, covering nearly 100 countries, servicing over 500 airlines, sales agents and ground handling companies around the globe settling 29 billion US dollars.

Managing agency programs that ensure a financially sound and reliable distribution network of travel and cargo agents.

Providing a full range of cost-effective financial services for the air transport industry.

Developing of common international standards and procedures for commercial air transport. Such standards serve the purpose of, first, underpinning these vital activities and, second, simplifying the business of transporting passengers and cargo through the air transport value chain.


4.6.2 MGR – Member and Government Relations This team identifies, assesses and responds to the needs of Members and other customers. The Division is comprised of the following departments:

Corporate Secretary

Member and Regional Relations

Government and Industry Affairs

Industry charges, Fuel, and Taxation,

Risk Management and Insurance

Its responsibilities cover:

Responding to member needs by monitoring regulatory issues, developing and implementing industry positions on aero political matters, lobbying and consumer affairs.

Representing and promoting the interest of IATA and its Members with the International Civil Aviation Organization, ICAO.

Developing industry programs to minimize the cost of insurance, taxation, user charges, and fuel.

Managing IATA airline membership issues.

Supporting the fulfilment of IATA’s corporate objectives within the governance structure and the organization.

4.6.3 SO&I – Safety Operations and Infrastructure The Safety, Operations and Infrastructure division promotes safe, secure efficient and economical air transport. While air transport is the safest way to travel, IATA and its members are committed to making a safe industry even safer with its Six-point Safety program.

Key activities include:

Auditing: The IATA Operational Safety Audit, IOSA, and IATA’s Safety and Ground Operations Audit, ISAGO, are the global standards for safety auditing. IOSA registration is also a condition for IATA Membership.

Flight Operations: IATA develops and promotes policies and practices regarding the safe and effective operation of aircraft. Their IATA Flight Operations team participates in a number of ICAO technical panels and manages a series of workgroups.

Infrastructure Safety Data: IATA manages important data by sharing safety information. This enables member airlines and other stakeholders to identify potential for accidents and serious incidents.

Integrated Airline Management System: IATA has developed an integrated management system toolkit which provides airlines with the fundamental guidelines to implement management systems for each operational function.

Safety Data Management and Analysis: IATA’s wealth of safety data helps the industry continuously identify hazard and properly manage risks through mitigation strategies aimed at improving in operational safety.

Security: On behalf of the industry, IATA works to ensure that security measures are effective; internationally harmonized and minimize disruption to the passengers and shippers.

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IATA4.6.4 MACS – Marketing and Commercial Services This division helps IATA provide a wide array of products and commercial services to airlines, airports, civil aviation authorities and other organizations. Their commercial vision is to provide relevant, valued solutions to ensure the aviation industry achieves superior results. MACS provide the self-funding mechanism to enable IATA to deliver results against industry priorities and to fund industry initiatives.

Areas of activity include:

Air Transport Consultancy Services: IATA draws on its extensive in-house expertise and unique access to a vast network of specialists in all areas of civil aviation. Their tailor made solutions provide users with vital, unbiased analysis and recommendations for their strategic and commercial decision.

Market Research: IATA brings expertise in market research in areas such as customer satisfaction, product/service benchmarking and brand perception research.

Market Data and Statistics: IATA is a focal point for airline industry data, studies and statistics.

Global Events: IATA organises numerous global events to promote and drive IATA’s industry-wide agenda.

Strategic Partnerships: IATA provides a platform for major aviation suppliers and service providers to contribute to solutions to industry challenges and priorities.

Publications: IATA produces a wide variety of publications based on best practices in commercial aviation as well as IATA standards.

4.6.5 CS – Corporate Services The Corporate Services division provides critical internal support for all areas of IATA. The CS strategic drive is to build speed and quality into all its activities. A major effort is underway across the division to fully implement an enterprise resource management system from SAP – INSIGHT. CS includes the following functional areas:

Corporate planning and control – providing performance reporting and efficient and timely information – both financial and non-financial.

Corporate Tax – maintaining IATA’s favourable tax position while ensuring compliance with applicable regulations.

Corporate Finance – conducting accounting processes that are efficient and effective to ensure accuracy.

Corporate Treasury and Banking – managing cash, foreign exchange and banking relationships for a global enterprise.

Corporate Administration and Procurement – ensuring that global offices are fit for purpose and procurement is performed in the most efficient manner with a strategic outlook.

Information Technology Services – supporting business flexibility through appropriate IT systems and equipment, delivered in a secure and reliable manner.

4.6.6 HC – Human Capital At IATA, their people are at the centre of their agenda to drive positive industry change. We are working hard to provide their employees with a great working and learning environment by:


Adapting their organizational structure to the current environment

Attracting, selecting and retaining the best talent

Assessing and rewarding employees based on their contribution to their business

Developing leadership skills, cultural intelligence and overall job competency of their employees

The Human Capital department also leads the development of human capital for tomorrow’s air transport industry through the IATA Training and Development Institute, ITDI. Their professional and vocational programs transfer knowledge and expertise to promote leadership, commercial success and industry standards on a global scale. We work closely with academic and industry partners to ensure the value and relevance of their training on a global scale. We work closely with academic and industry partners to ensure the value and relevance of their training.

4.7 IATA GEOGRAPHY AND GLOBAL INDICATOR The fares depends not only on the fare type or the class of service but also by routing type as said by the by global indicators (G.I). For example, an economy or Y fare from Seattle (SEA) U.S.A. to Fukuoka (FUK) Japan by the Atlantic would be more than the price paid by the traveller if he travelled by the Pacific. So to estimate the right fare, one has to distinguish the form of routing the passenger requires. There are 11 global indicators that airline tickets can be issued on.

1. WH or TC1,

2. EH or TC2,

3. EH or TC3,

4. AT or TC12,

5. PA or TC31,

6. PN or TC31,

7. SA or TC123,

8. AP or TC23,

9. RU or TC23,

10. TS or TC23,

11. FE or TC23.

Passengers should try to meet or try to obtain their airline ticket from their travel agents so that they can have cheaper fare quote, and also to know flight notices and condition of carriage from the carrier as well as the terms and conditions of the tickets.

EH = EASTERN HEMISHERE

WH = WESTERN HEMISHERE

AT = ATLANTIC TRAVEL

PA = PACIFIC ATLANTIC

PN = PACIFIC NORTH

SA = SOUTH ATLANTIC

AP = ATLANTIC PACIFIC

RU = RUSSIA IN EUROPE

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IATA TS = TRANS- SIBERIA

FE = FAR EAST

4.8 TRAVEL AGENT MANAGEMENT Travel management or corporate travel management (CTM) is the means of taking care of the strategies of the company’s travel policy, day-to-day operation of the corporate travel program, the negotiations with all vendors, traveller safety & security, T&E data management and credit-card management. CTM must not be mixed with the services offered by the traditional Travel Agency, whereas agencies give everyday travel services to help customers. Or we can say that CTM take decision on the category of the people who are allowed to fly and negotiate corporate fares/rates with airlines and hotels as well as set forth the use of the corporate credit card. For many companies “travel and expenses” (T&E) costs means the second biggest yearly expense, more than the salary and benefits, and is usually more than IT or real estate costs. T&E costs are not only confined to travel (airline, rail, hotel, car rental, ferry/boat, etc.) but also involve all costs incurred at the time of travel such as gratuities, staff and client meals, client gifts, taxi fares supplies (office supplies and/or services), etc. The management of these costs is normally done by the Corporate Travel Manager which is a function that can be a part of the HR, Finance, Procurement or Administrative Services Department. As this include all these areas in some form and represents such a major corporate expense, it become a reason that this function must have an equal ranking within a corporation as any other major division and not be seen as a sub-set of existing departments.

4.9 TRAVEL PARTNER

There is a confirmed substitute to work as a travel agent or your own organization with an additional lucrative and less hectic future. Whether you are a presently a Travel Agency owner or a person employed as travel agent you will recognize that we all work in a highly demanding, dynamic and competitive environment.

It’s the innovative and exciting approach to the fastest rising section of the travel industry. The Travel Partners Way is depends on the business form that give a highly trained, travel professionals who are looking for maintaining their own travel consultancy or ascertaining their own individuality, with a stage from which to function competitively and more by yourself.

All Travel Partners, and their customers, are completely supported with sound priced products, the basic information technology systems and to offer a safe and a proficient atmosphere in which to do business. To become a Travel Partner, you will need to have a proven record of client contentment together with travel industry proficiency and knowledge.

The profile of a typical Travel Partner consultant will include the following:

Each Travel Partner should have a minimum 5 years of experience of travel industry, and in every time, a Travel Partner will boast at least 2 or 3 times that experience.

You will be well travelled both domestically and globally and must have a wide variety of travel experiences.

Preferably you will grasp suitable qualifications together with expertise in related travel software, fare computation and ticketing skills as well as comprehension of consular and health necessities internationally.

Travel Partners are often skilled and trained and regularly updated on new travel procedures, products, and other aspects of the industry.


Most Travel Partners have taken to become a Travel Partner so that they can focus on what they can do best, and i.e. servicing their client’s travel needs and using their links and understanding to pleasure the consumer and to make an on-going ‘travel partnership’ with them.

4.10 AIRCRAFT HANDLING In aviation, aircraft handling is defined as the servicing of an aircraft when it is on the ground and is parked at a gate of the terminal in an airport.

According to the International Air Transport Association (IATA), conservative estimates depicts that the airlines outsources around 50% or more of the ground handling that occur at the airport of the world. Airport handling addresses requirements of the many services of an airliner between the time it reaches at a gate of the terminal and the time it leaves on its subsequent flight. Efficiency, speed and accuracy are very significant in airport handling services in order to reduce the turnaround time.

Figure 4.3: A Ground-handling Tug Pulls a British Airways

Boeing 747-400 at London Heathrow Airport, England

Airlines may participate in an industry-standard Mutual Assistance Ground Service Agreement (MAGSA). The MAGSA is published by the Air Transport Association (the current version is from 1981) and is used by airlines to assess prices for maintenance and support to aircraft at so-called MAGSA Rates, which are updated annually based on changes in the U.S. Producer Price Index. Airlines may choose to contract for ground handling services under the terms of a Standard Ground Handling Agreement (SGHA) published in the International Air Transport Association (IATA) Airport Handling Manual. Airlines may also contract for ground handling services under non-standard terms.

Cabin service

These facilities make sure commuter comfort. The cabin washing is the highest job in the cabin service. They comprise such tasks as cleaning the commuter cabin and replacement of on-board consumables or washable substances such as soap, pillows, tissues and blankets.

Catering

Catering comprises the unloading of new food and drinks from the aero plane, and the loading of fresh stuff to eat and beverage for travellers and crew. Airline mealtimes are characteristically carried in trolleys. Empty or trash-filled trolleys from the prior flight are exchanged with fresh ones. Meals are ready typically on the ground

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IATAin order to diminish the amount of planning (apart from chilling or reheating) required in the air.

Airline catering sources include the following companies:

Airline Services and Logistics PLC (EPZE)

American Airlines

Atlas Catering (Royal Air Maroc's catering service)

Cara Operations

Cathay Pacific's Cathay Pacific Catering Services

Chelsea Food Services

Gate Gourmet

KLM's KLM Catering in Stages

LSG Sky Chefs

Q Catering

Servair

Thai Airways's Thai Catering Services

United Airlines

Figure 4.4: Ramp Service

Figure 4.5: Lavatory Drainage


This includes services on the ramp or apron, such as:

Air cargo handling, usually by means of cargo dollies, and cargo loaders

Air conditioning (more common for smaller aircraft)

Airstart units (for starting engines)

Catering trucks

Deicing

Gate checked luggage, often handled on the tarmac as passengers disembark

Ground power (so that engines need not be running to provide aircraft power on the ground)

Guiding the aircraft into and out of the parking position (by way of aircraft marshalling)

Hydraulic mules (units that provide hydraulic power to an aircraft externally)

Lavatory drainage

Luggage handling, usually by means of belt loaders and baggage carts

Passenger stairs (used instead of an aerobridge or air stairs, some budget airlines use both to improve turnaround speed)

Refuelling, which may be done with a refuelling tanker truck or refuelling pumper

Towing with pushback tractors

Water cartage (to refill fresh water tanks)

Wheelchair lifts, if required

Field operation service

This service dispatches the aircraft, maintains communication with the rest of the airline operation at the airport and with Air Traffic Control.

List of handling agents

ACR Cargo Express

Aerohandling

Aeromexico Servicios

Aircraft Service International Group

American Eagle Airlines

Aviance UK

Aviapartner

Aviator Airport Alliance

African Open Sky

Baltic Ground Services

BAS-Bahrain Airport Services

Caribbean Aircraft Handling Co. Ltd, Barbados

DAL Global Services

Dnata

Executive Airlines

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IATA GAT Airline Ground Support Inc.

GDN Airport Services

Global Handling Services

Goldair Handling

Ground Handling Inc.

HAT Enterprises, S.A.

Jardine Aviation Services

JetCity Pty Ltd

Jetex Flight Support

JetFlight Aviation Services

JetWash Aviation Services

Kion de Mexico

Latin American Aeronautical Technical Support (GUA)

Menzies Aviation

Myanma Airways

NAS-National Aviation Services

NavStar Aviation Inc.

Neha Aviation Management Private Limited, India

Nordic Aero

Olympic Handling

PlaneBiz Limited New Zealand

Portway Handling de Portugal, SA

Regional Elite Airline Services

Royal Airport Services Pakistan

Royal FBO Airport Services Paraguay (AGT, ASU, SGAS, SGES)

SAS Ground Handling

Servisair

SkyStar Airport Services

SRC Aviation, Pvt. Ltd

Swissport

Talaria, SA Aeroport Handling, Chisinau, Republic of Moldova

Tradewinds Aviation Services Ltd, Kenya

Winner Aviation

Universal Aviation

UTG Aviation Services

EASUD Aviation SupportCo. Ltd.

Capavia/Aviation Services/Turkey



Fill in the blanks:

1. Empty or trash-filled trolleys from the prior flight are exchanged with ………………………

2. The cabin cleaning is the main job in the ………………………

3. According to the International Air Transport Association (IATA), conservative estimates depicts that the airlines outsources ……………………… or more of the ground handling that occur at the airport of the world.

4.11 LET US SUM UP IATA – The International Air Transport Association – was founded in Havana, Cuba, in April 1945. It is the prime vehicle for inter-airline cooperation in promoting safe, reliable, secure and economical air services – for the benefit of the world's consumers. The international scheduled air transport industry is now more than 100 times larger than it was in 1945. Few industries can match the dynamism of that growth, which would have been much less spectacular without the standards, practices and procedures developed within IATA.

At its founding, IATA had 57 members from 31 nations, mostly in Europe and North America. Today it has some 230 members from 126 nations in every part of the globe. The modern IATA is the successor to the International Air Traffic Association founded in The Hague in 1919 - the year of the world's first international scheduled services.

IATA is a not-for-profit, business-driven trade association with a balance of commercial and non-commercial activities. The old IATA was able to start small and grow gradually. It was also limited to a European dimension until 1939 when Pan American joined. The post-1945 IATA immediately had to handle worldwide responsibilities with a more systematic organisation and a larger infrastructure. This was reflected in the 1945 Articles of Association and a much more precise definition of IATA's aims than had existed before 1939.

IATA's legal efforts anticipated the effects of new technology associated with the period of rapid growth. It was able to advise the industry on new aircraft and systems, electronic data processing and advances in sales and marketing techniques. IATA was re-organised on a two-tier basis in October 1979. The tiers comprised: Trade Association (technical, legal, financial, traffic services and most agency matters), Tariff Coordination (passenger fares, cargo rates, and related conditions and charges). At present, some 100 Members, including the world's largest airlines, continue to participate in Tariff Coordination.

IATA’s financial business unit, IDFS processes over 300 billion US dollars annually. This division develops the industry standards, infrastructure, products and programs that enable airlines and agents to provide high-quality services worldwide. The Safety, Operations and Infrastructure division promotes safe, secure efficient and economical air transport. While air transport is the safest way to travel, IATA and its members are committed to making a safe industry even safer with its Six-point Safety program.

The Corporate Services division provides critical internal support for all areas of IATA. The CS strategic drive is to build speed and quality into all its activities. A major effort is underway across the division to fully implement an enterprise resource management system from SAP – INSIGHT. At IATA, their people have the opportunity to learn and grow, and the responsibility to add value to the business by

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IATAdelivering quality results. Each member of their team helps us build a powerful IATA brand and deliver quality results that drive much needed industry change.

4.12 LESSON END ACTIVITY Critically analyse the existence of IATA since its inception and for any one particular country show how it has led to its international air transportation development.

4.13 KEYWORDS AGM: It is a meeting that official bodies, and associations involving the general public, are often required by law to hold.

Aviation: It is the design, development, production, operation, and use of aircraft, especially heavier-than-air aircraft.

Cargo: It is goods or produce transported, generally for commercial gain, by ship or aircraft, although the term is now extended to intermodal train, van or truck. In modern times, containers are used in most long-haul cargo transport.

Clearing House: It is a financial institution that provides clearing and settlement services for financial and commodities derivatives and securities transactions.

Governance: It is the act of governing. It relates to decisions that define expectations, grant power, or verify performance.

IATA: It is the trade association of airlines.

ICAO: It is a specialized agency of the United Nations. It codifies the principles and techniques of international air navigation and fosters the planning and development of international air transport to ensure safe and orderly growth.

4.14 QUESTIONS FOR DISCUSSION 1. Critically comment on the statement, “IATA is a not-for-profit, business-driven

trade association with a balance of commercial and non-commercial activities”.

2. Discuss the early days of IATA in detail.

3. What is the mission of IATA that it is carrying out since 1994?

4. Describe the various types of services provided by IATA.


CYP 1

1. True

2. True

3. True

4. True

CYP 2

1. Fresh ones.

2. cabin service

3. around 50%







85

Hotel and their Rating

UNIT 1

UNIT III


87

Hotel and their RatingLESSON

5 HOTEL AND THEIR RATING

CONTENTS


5.1 Introduction

5.2 Hotel and Star Rating

5.2.1 Standards of Hotel Classification

5.2.2 Hotel Classifications in Britain

5.2.3 European Hotelstars Union

5.3 Rating System and Classification

5.3.1 World Hotel Rating

5.3.2 Seven Stars

5.4 Resort

5.4.1 Island Resorts

5.4.2 Seaside Resorts

5.4.3 Ski Resorts

5.5 Boarding and Lodging Houses

5.6 Hotel Products, Facilities, Service

5.6.1 Hotel Market Segment

5.6.2 Pricing

5.6.3 Distribution

5.6.4 Communications

5.6.5 Advertising

5.6.6 Sales Promotion

5.7 Let us Sum up


5.9 Keywords




Discuss the types of hotel

Describe the role of rating system


Identify the resorts

Explain the boarding and lodging

5.1 INTRODUCTION Conservatively, it was supposed that a travel agent (TA) does not make a need but only accomplishes a present need. But it is now an authenticity that a number of TAs not only generates the need to travel to endpoints but give corporate to hotels, transporters and many others. A TA is a significant link between the traveller and the rest. How some travel agencies have developed and helped from the marketing approach, is being discussed in this lesson.

5.2 HOTEL AND STAR RATING

Figure 5.1: Five-star Superior Rating at Hotel Vier Jahreszeiten Kempinski,

Munich, Germany

Hotel ratings are often used to classify hotels according to their quality. The development of the perception of hotel rating and its related definitions display strong equivalents. From the initial purpose of informing travellers on elementary facilities that can be estimated, the objectives of hotel rating has extended into an emphasis on the hotel understanding as a whole. Today the terms 'rating', 'grading', and 'classification' are used to normally refer to the same idea, that is to classify hotels, mostly using stars as a symbol.

There are a wide variability of rating patterns used by diverse organizations everywhere the world. Many have a system including stars, with a greater number of stars representing superior luxury. Forbes Travel Guide, formerly Mobil Travel Guide, launched its star rating system in 1958. The AAA and their affiliated bodies use diamonds instead of stars to express hotel and restaurant ratings levels.

Entertainment, view, Food services, room variations such as size and additional amenities, spas and fitness centres, ease of access and location may be considered in forming a standard. Hotels are individualistically assessed in outdated systems and rest seriously on the services provided. Some study this injurious to smaller hotels whose worth of accommodation could fall into one class but the lack of an item for example an elevator would avoid it from realization a higher categorisation.

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Hotel and their Rating In recent years hotel rating systems have also been criticised by some who claim

that the ranking criteria for such schemes are excessively complex and challenging for laypersons to recognize. It has been recommended that the lack of a joined global system for rating hotels may also challenge the usability of such schemes.

5.2.1 Standards of Hotel Classification The more common arrangement systems comprise "star" rating, letter categorising, from "A" to "F", equilateral or simply a "satisfactory" or "unsatisfactory" footnote to room such as hostels and motels. Systems using terms such as First Class/Superior Deluxe/Luxury, Tourist Class/Standard, and Budget Class/Economy are more broadly accepted as hotel kinds, rather than hotel standards.

Some countries have mark by a single public customary — Malta, Netherlands, Portugal Belgium, Denmark, Greece, Italy, Spain and Hungary have laws defining the hotel rating. In Germany, Austria and Switzerland, the ranking is defined by the separate hotel industry relationship using a five-star system — the German organizations are Tourist (*), Standard (**), Comfort (***), First Class (****) and Luxury (*****), with the mark "Superior" to flag accessories beyond the least defined in the standard, but not sufficient to move the hotel up to the next tier position. The Swiss hotel rating was the first non-government formal hotel classification commencement in 1979 It did impact the hotel organisation in Austria and Germany. The formal hotel organisation of the DEHOGA (German Hotel and Restaurant Association) started on August 1, 1996 and showed very effective with 80% of guests citing the hotel stars as the chief criteria in hotel selection. This application inclined the formation of a common European Hotel stars rating system that started in 2010. In France, the rating is well-defined by the public tourist boarding of the sector using a four-star system (plus "L" for Luxus) which has different to a five-star system from 2009 on. In South Africa and Namibia, the Tourist Grading Council of South Africa has strict rules for a hotel types granting up to 5 stars.

5.2.2 Hotel Classifications in Britain In Great Britain, hotels are rated from one-star to five stars, as in many other countries. The RAC pulled out of housing ranking in 2008 so the only grouping schemes in process are those functioned by the AA (Automobile Association) and the national tourist boards; Visit England, Visit Wales, the Scottish Tourist Board and the Northern Ireland Tourist Board. The schemes were all 'harmonized' to make sure reliability between the patterns. This applies to all housing types apart from Self Catering that the AA have recently (2009) started offering. The AA criterion is accessible on its website. Along with the usual black stars (ranging from one (the lowest) to five (the highest), the AA awards red stars to the highest-rated, which are believed 'Inspectors' Choice'. Each of the nationwide tourist boards has grading explanations on their web sites.

5.2.3 European Hotelstars Union The HOTREC (Hotels, Restaurants & Cafés in Europe) is an umbrella organisation for 39 connotations from 24 European nations. At a meeting in Bergen in 2004, the partners drafted a hotel classification system in order to match their national standards. In 2007 HOTREC launched the European Hospitality Quality scheme (EHQ) which has since credited the existing national examination bodies for hotel rating.

Under the patronage of HOTREC, the hotel links of Netherlands, Sweden Austria, Czech Republic, Germany, Hungary, and Switzerland created the Hotelstars Union. On 14 September 2009, the Hotelstars Union arrangement system was recognised at a session in Prague. This system became operative in these countries in


January 2010, with the exemption of Hungary, Switzerland and the Netherlands, who have chosen future dates for the change. Well along more countries have linked the HOTREC hotelstars system: Estonia (2011), Latvia (2011), Lithuania (2011), Luxembourg (2011), Malta (2012), Belgium (2013), Denmark (2013) and Greece (2013).

The European Hotelstars Union system is constructed on the earlier German hotelstars system that had generally inclined the hotel classifications in central Europe, with five stars and a Superior mark to flag extras. In its place of a strict least in room size and essential shower facilities (e.g. a bath tub in a four-star hotel) there is a list of criteria with 21 qualifications surrounding 270 elements, where some are obligatory for a star and others optional. The leading criteria are in quality management, wellness and sleeping housing. In the record of measures each entry is related with a number of opinions – each Hotelstars level needs a minimal sum of points further some standards being compulsory for the level. The minimum necessity for the Superior flag needs the similar sum of points as for the next Hotelstars level which conversely was not given due to at least one mandatory requirement being left out.

5.3 RATING SYSTEM AND CLASSIFICATION

Hotelstar Excerpt of the catalogue of criteria

Tourist 100% of the rooms with shower/WC or bath tub/WC

Daily room cleaning 100% of the rooms with colour-TV

together with remote control Table and chair Soap or body wash Reception service Facsimile at the reception Publicly available telephone for

guests Extended breakfast Beverage offer in the hotel Deposit possibility

Superior Tourist The Superior flag is provided when the additional service and accommodation provisions are not sufficient for the next Hotelstar. The bathroom facilities are usually at the same level as for two stars hotels but built from cheaper materials. The cost for regular inspection by independent associations is waived as well.

Standard In addition to the single star (*) hotels: Breakfast buffet Reading light next to the bed Bath essence or shower gel Bath towels

Contd…

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Hotel and their Rating Linen shelves Offer of sanitary products (e.g.

toothbrush, toothpaste, shaving kit) Credit Cards

Superior Standard The Superior flag is provided when the additional service and accommodation provisions are not sufficient for the next Hotelstar. The Standard-Superior does usually offer the same service level as three-star hotels but the interiors of the hotel are smaller and cheaper so that the three stars were not to be awarded by the inspection body. A two-star superior does not require mystery guesting.

Comfort In addition to the standard star (**) hotels:

Reception opened 14 hours, accessible by phone 24 hours from inside and outside, bilingual staff (e.g. German/English)

Three piece suite at the reception, luggage service

Beverage offer in the room Telephone in the room Internet access in the room or in the

public area Heating facility in the bathroom,

hair-dryer, cleansing tissue Dressing mirror, place to put the

luggage/suitcase Sewing kit, shoe polish utensils,

laundry and ironing service Additional pillow and additional

blanket on demand Systematic complaint management

system

Superior Comfort The Superior flag is provided when the additional service and accommodation provisions are not sufficient for the next Hotelstar. The accommodation facilities for a superior hotel need to be on a modern level and fully renovated which is checked regularly.

First Class In addition to the comfort star (***) hotels:

Reception opened 18 hours, accessible by phone 24 hours from inside and outside

Contd…


Lobby with seats and beverage service

Breakfast buffet or breakfast menu card via room service

Minibar or 24 hours beverages via room service

Upholstered chair/couch with side table

Bath robe and slippers on demand Cosmetic products (e.g. shower

cap, nail file, cotton swabs), vanity mirror, tray of a large scale in the bathroom

Internet access and internet terminal

"À la carte"-restaurant

First Class Superior The Superior flag is provided when the first class hotel has a proven high quality not only in the rooms. The superior hotels provide for additional facilities in the hotel like a sauna or a workout room. The quality is checked regularly by mystery guesting of an external inspection service.

Luxury In addition to the first class (****) hotels:

Reception opened 24 hours, multilingual staff

Doorman-service or valet parking Concierge, page boy Spacious reception hall with

several seats and beverage service Personalised greeting for each

guest with fresh flowers or a present in the room

Minibar and food and beverage offer via room service during 24 hours

Personal care products in flacons Internet-PC in the room Safe in the room Ironing service (return within

1 hour), shoe polish service Turndown service in the evening Mystery guesting

Superior Luxury The Luxury star hotels need to attain high expectations of an international

Contd…

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Hotel and their Ratingguest service. The Superior Luxury star is only awarded with a system of intensive guest care.

5.3.1 World Hotel Rating There is so far no worldwide grouping which has been accepted. There have been tries at joining the organisation system so that it becomes a globally renowned and dependable standard, but they have all failed.

It has been measured that, as it has been the instance in other expanses (e.g. international accounting standards), hotel classification standards should effect from a private and independent creativity. This may be the case of the World Hotel Rating (WHR) project, which particularly set worldwide grouping values and rating criteria along the lines of a world star-rating system. It will also found an info platform on the hotel sector which will be bilingual and multicultural. WHR intends to play a key role in the development of quality hotel services, as well as equitable and sustainable tourism, and the security of the world's cultural and usual heritage. In addition, WHR will grow labels to encourage hotels famous by specific structures, such as a family and child-friendly character. A test period was scheduled for 2010.

5.3.2 Seven Stars Some hotels have been promoted as seven star hotels. The Burj Al Arab hotel

in Dubai has opened in 1998 with a domestic help for every room – this has been the first hotel being broadly defined as a "seven-star" property, but the hotel says the label creates from an unidentified British reporter on a press trip and that they neither encourage its use nor do they use it in their publicising. Similarly the Emirates Palace Hotel in Abu Dhabi (open since 2005) is occasionally termed as seven star as well, but the hotel uses only a five star rating.

The Town House Galleria in Milan, Italy has opened in 2007 and it entitlements to have a seven star documentation from SGS Italy in 2008.

Historically, extravagance hotels have used the relationship in the Leading Hotels of the World to document systematic examination on an additional level. This group had been formed in 1928 and it rationalised in 1971 introducing a world-wide inspection service.



1. The Town House Galleria in Milan, Italy has opened in 2007 and it entitlements to have a seven star documentation from SGS Italy in 2008.

2. WHR intends to play a key role in the development of quality hotel services, as well as equitable and sustainable tourism, and the security of the world's cultural and usual heritage.

3. A resort is a habitation utilised for relaxation or recreation, appealing companies for vacations and/or tourism. Resorts are places, towns or occasionally commercial formation operated by a single company.

5.4 RESORT A resort is a habitation utilised for relaxation or recreation, appealing companies for vacations and/or tourism. Resorts are places, towns or occasionally commercial formation operated by a single company.


5.4.1 Island Resorts An island resort is a landmass or an archipelago that comprises hotels, restaurants, resorts, tourist attractions and its amenities.

5.4.2 Seaside Resorts

Figure 5.2: Miami Beach in Florida

Seaside resorts are situated on a coast. In the United Kingdom, numerous coastline towns have turned to other entertainment industries, and some of them have a good deal of social life.

5.4.3 Ski Resorts In Europe and North America, ski resorts are towns and villages in ski areas, with

provision facilities for skiing such as hotels and chalets, equipment rental, ski schools and ski lifts to access the slopes.

Self-contained resorts

Figure 5.3: Banff Springs Hotel, Banff, Alberta, Canada

Destination resort

A destination resort is a resort that has, in and of itself, the essential guest attraction capabilities—that is to say that a destination resort does not want to be near an endpoint (town, historic site, theme park, or other) to draw its public. A profitable institution at a resort terminus such as a fun area, a scenic or historic site, a theme park, a gaming facility or other tourist attraction may participate with other industries at a destination. Therefore, another quality of an endpoint resort is that it offers drink, lodging, sports, food, and entertainment, and shopping within the competence so that guests have no need to leave the capability throughout their stay. Commonly these amenities are of developed quality than would be probable if one were to stay at a hotel or eat in a town's eateries. Some examples

95

Hotel and their Ratingare Atlantis in the Bahamas, the Walt Disney World Resort near Orlando, Florida, USA, Costa do Sauípe in North-eastern Brazil, Laguna Phuket in Thailand and Sun City near Johannesburg in South Africa.

All-inclusive resort

Figure 5.4: The Paradise Resort in the Catskills

An all-inclusive resort controls a fixed price that comprises most or all items. At a least, most comprehensive resorts comprise lodging, limitless sports activities, food, drink, and entertainment for the fixed price. In recent years, the amount of resorts in the United States offering "all-inclusive" facilities has reduced intensely; in 1961, over half accessible such plans and in 2007, less than 10% do so.

All-inclusive resorts are started in the Caribbean, mainly in Dominican Republic, and somewhere else. Notable examples are Club Med and Sandals Resorts.

An all-inclusive resort comprises a minimum of three meals daily, soft drinks, most alcoholic drinks, gratuities and probably other services in the price. Many also compromise sports and other events comprised in the price as well. They are often situated in warmer regions. The all-inclusive model invented in the Club Med resorts which were started by the Belgian Gérard Blitz.

Some all-inclusive resorts are intended for specific holiday interests.

Figure 5.5: A Resort Swimming Pool, Marawila, Sri Lanka

Golf resorts are resorts that provide specially to the sport of golf, and comprise access to one or more golf progress and or clubhouse. Golf resorts usually afford golf packages that offer visitors with all greens and cart fees, range balls, accommodations and meals.


Figure 5.6: A View of a Typical Ski Resort and Ski Lifts

In North America a ski resort is generally a destination resort in a ski area, and is less likely to refer to a town or village.

A resort can be an expensive vacation and often boasts many visitor activities and attractions such as golf, water sports, spa and beauty amenities, skiing, natural ecology and tranquillity. Because of the extent of facilities presented, it may be considered destination resort.

Figure 5.7: The Las Vegas strip in 2009

A mega resort is a kind of destination resort which is of a remarkably large size, for example those along the Las Vegas Strip. In Singapore an integrated resort is an understatement for a casino-based destination resort.

5.5 BOARDING AND LODGING HOUSES The term Boarding and Lodging House shall mean an institution which comprises boarding and lodging for five (5) or more consistent boarders but no more than ten (10) regular boarders for times of one week or more.

Though few people today distinguish among the two, boarding and lodging houses were initially different accommodation types intended to separate markets. In the 19th and early 20th centuries, boarding houses provided to a range of classes and accessible food and shelter on a weekly basis, particularly to single people. Lodging

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Hotel and their Ratinghouses, instead, inclined to draw the poor and the more transitory who rented beds for one night at a time. Lodging houses were generally larger and more unidentified than boarding houses and their residents were not delivered with meals. Women, who delivered this type of facility either within their own homes or in previous large houses altered for the drive, controlled all sectors of the market. The boarding market was mainly based in the inner southern and eastern environs, particularly St Kilda, Prahran, South Melbourne and East Melbourne. Lodging, on the other hand, was centred north of the Yarra River in the more working-class areas of Carlton, Fitzroy, North Melbourne and West Melbourne.

5.6 HOTEL PRODUCTS, FACILITIES, SERVICE To set achievable marketing goals and realistic objectives, four aspects of the hotel’s offerings to its chosen guests are involved. These are: the products, the price or tariffs, distribution and marketing communication. Just as a chef prepares varied and tasty dishes with the same basic ingredients, the marketer can also vary the quantum and proportion of the four elements of the marketing mix to achieve appropriate marketing goals and sales targets.

At the very outset some basic assumptions regarding hotel marketing are necessary. These are:

Hotel customers are referred to as ‘guests’ as they receive hospitality by way of accommodation, food and drink or all for which they pay. If satisfied, they return to the hotel for receiving further paying hospitality.

A hotel is “immovable” in contrast to a manufactured product or service which is mobile and can be taken from the venue of production to the site of consumption.

The capital investment in a hotel industry is generally high and the gestation period for adequate returns on the investment is normally long.

The demand for hotel facilities has a variety which a few manufactured products have.

Some hotel facilities like rooms, and ‘covers’ in restaurants are quickly perishable just as empty airline seats are.

Hotels are not only in competition with others hotels, but also with the products and services of other industries catering to discretionary expenditure.

These assumptions postulate that the economic viability of a hotel depends largely on three factors. First, the speed with which demand for hotel facilities can be generated; second, the capacity to ensure and retain customer satisfaction which will result in repetitive business and expansion of business; and third, the package, tenor of atmosphere, service and quality which together constitute the hotel’s standing and image. The hotel product comprises the basic service that is offered, which consists of accommodation and food and beverage.

5.6.1 Hotel Market Segment The total hotel market, which consists of the total demand for hotel facilities, may be divided into various segments. These segments are determined as per the needs of the people and the means they possess to pay for their satisfaction. The fulfilment of these means relates to the market package. The market for the hotel will be served according to what is provided, how it is provided, and for how much.

Independent Guests

A common classification of hotel market segment is according to the purpose of visit by guests, i.e., holiday-tourism oriented, business-traveller oriented, conference


oriented, or foreign versus domestic traffic oriented. These terms tend to be equivocal as they relate to a particular type of traveller or customer irrespective of the market segment to which he belongs. For instance, a foreign tourist staying at a luxury hotel may be on business on his company’s expense account whereas if he comes as a normal pleasure or leisure tourist, he may well stay at a lower-tariff hotel suiting his budget. Similarly, a guest staying at a luxury hotel may be a businessman for whom the address and image of the hotel are important enough to justify the tariff. On the other hand, when he travels for pleasure or for social purposes, he may stay in the same luxury hotel or one with a lower tariff, depending on the purpose of the visit.

Groups

Customers travelling in groups comprise another segment, so do meeting and conference groups. Therefore, the hotel market segments correspond to the basic market packages in terms of spending power as also social classifications – upper/upper-middle/lower.

Special Groups

For us, in India, there is yet another important segment, namely, non-vegetarian or vegetarian. Vegetarian hotels (with comparatively lower tariffs than non-vegetarian hotels), may attract the same category of customers as for the non-vegetarian group, who would naturally evaluate and choose hotels according to the purpose of their visit and stay; consequently, the tariff they are prepared to accept.

Hence, it is apparent that interchange between segments does take place, whether as a temporary or permanent phenomenon, according to the duration of the changing circumstances of the guest-segments. These segments of the total market for a particular hotel may be further divided into primary and secondary levels of demand; each of which, in turn, contains two further levels of demand, as shown in Table below.

Table 5.1: Primary and Secondary Levels of Demand

Primary level Basic demand which exists for hotel facilities but not being served at present.

Displacement demand rising from the clientele of other hotels where the customers’ needs are not fully met by the market package offered.

Secondary level Created demand which does not exist so far, and arising from people who do not normally use hotel facilities, or from people who do not use the hotel facilities in a particular area.

Futuristic demand which may occur at sometimes inthe future, due to certain socio-economic or socio-psychological factors or both, e.g., rise in the standard of living and per capita income (‘green revolution’ areas, new industrial complexes), increase in population, changing social systems and habits, etc.

A new hotel introduced in a particular segment of the hotel market may eventually be able to exploit all these levels of demand. It is essential that there should be substantial basic demand which can be tapped by a new hotel. Displacement and created levels of demand require a period of time and a sustained sales effort to realise their potential, whereas, the assessment of future demand relates to the continuing long-term prosperity of the hotel. If the basic demand is absent but if the displacement

99

Hotel and their Ratingcreated and future levels of demand promise well for an investment appraised on a ‘10 to 15 year basis’, the decision to start a new hotel under such circumstances has perforce to be a long-gestation decision.

For accommodation, each segment of the market, together with its primary and secondary divisions, contains some or all of the potential buyers of hotel accommodation, as shown in Table 5.2, which may sometimes overlap.

There may well be more types according to the geographical, economic, industrial, and social characteristics of the location of each hotel.

Similarly, for food and beverages, each segment of the hotel market contains varied categories of potential buyers of catering services which may also sometimes overlap.

Table 5.2: Potential Buyers for Accommodation and Catering Services

Accommodation Transit tourists, passing through the particular location.

Terminal tourists, for whom the location represents end of a journey.

Travelling businessmen.

Visiting personnel, i.e., business or industrial employees for whom travel is an occasional part of their job.

Organised tours.

Conventions, conferences, workshops, meetings, where the location is pre-fixed by the organisers.

Social visitors, i.e., guests to weddings or other social functions.

Catering Occupant customers staying in the hotel.

Transit or change customers – people other than local residents of the areas patronising the hotel either by impulse or intentionally planned for meals, refreshments, etc.

Organisations and societies consisting of members acting in unison.

Local business customers who patronise the hotel due to local industrial or commercial activity.

Meetings and conferences organised by agencies from outside areas.

People on tour who step into the hotel for meals, refreshments, etc.

The Hotel Product

The hotel product has a number of components like accommodation, food and beverage, recreation and health, shops, car rental service, apart from others. But of all these, the accommodation and food and beverage components are the primary ones.

The accommodation component of the hotel product requires a clear identification of the type of clientele the hotel wishes to attract and serve. Regardless of ‘star’ categorisation, as customers tend to graduate from one ‘star’ category to another, accommodation can be either of the luxury type almost regardless of the price, or the economy type providing the essentials of shelter frugally. Between these two there are a variety of accommodation facilities—catering to customers whose accommodation is paid for; leisure customers who pay for their accommodation; customers who are


part of groups either on business or on pleasure. However, once the hotel property has been constructed to serve identified and specific customer segments, the possibility of variation is severely restricted. Admittedly, the economy type property cannot be moved up into a luxury one without considerable expense and time although a reversal from the luxury to the economy class is more feasible and less problematic.

To tide over the above difficulties, hotel architects, the world over, are now designing properties with as much flexibility as possible to make multipurpose adjustable public rooms feasible. In the case of a hotel where such a flexibility does not exist, the hotel product decision for accommodation will depend entirely on the accuracy of selling rooms to the right type of customers.

On the other hand, the food and beverage component of the basic hotel product offers greater scope for flexibility. Qualitative differentials can be very wide and would range from high class a la carte high-price menu restaurants with complete table service to the utilisation table of medium or low-priced menu dining rooms. Capital expenditure is relatively lower – décor, furnishings and fittings can be changed more easily to transform the image of a restaurant or dining room in either way. Availability of room service from either the hotel’s own kitchens or from outside is another area of flexibility.

It is obvious, however, that resident guests in a hotel know what exactly they are buying in room occupancy and in food and beverage sales. Hence their experience of the hotel product will condition their future relationship with the hotel and the patronage afforded.

5.6.2 Pricing It is difficult for a hotel to exercise differential pricing except for certain specific purposes. These may typically be differentials in tariffs and prices during the peak and lean seasons; group rates; contact rates for airline crew; special conference rates or special concessions to attract customers; tourism year syndrome, etc. However, by and large, hotel pricing tends to follow or conform to pricing standards applicable to.

5.6.3 Distribution As has been said earlier, the hotel does not journey to its customers to consummate a sale. It is the reverse that takes place—customers come to the hotel. Hotel distribution relies on interdependence with other industries serving travellers and tourists such as the transportation industry (airlines, railways, roadways, shipping lines), travel agents and tour operators, national and state tourism organisations, shopping and entertainment providers. In sum, those services which provide certain other facilities to the traveller or the tourist which are bought when accommodation and food are assured.

Some interesting features of hotel distribution need critical examination. The first is cooperative distribution which operates in passing on traffic overflow from one hotel to its neighbour, on a reciprocal basis, without affecting regular business with the main intermediaries in the distribution system such as travel agents; tour operators; airlines and special business clientele. The second is the increasing development of franchising. Franchising may take various forms but it basically involves making available to the franchisee (the beneficiary) of a service system that is designed and controlled for quality standards by the franchiser. The franchisee gets the advantage of being part of a reservation and sales system which ensures a certain level of business which may not be available otherwise. The franchisee also benefits from the image of the franchiser, professional advice and training provided by the franchiser. In the process, he improves his own operational image and efficiency. The franchiser also benefits as his investment is not required in the franchisee’s properties. At the same time, the franchiser’s distribution system is expanded and the franchisee is well

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Hotel and their Ratingmotivated to succeed in his own business. Hotel distribution is, thus, an important element of the marketing mix.

5.6.4 Communications Perhaps this element of the hotel marketing mix is most important as it is directly responsible for bringing customers to the hotel. Hotel marketing communications are either direct or indirect. The direct communications are through personal selling, advertising, sales promotion and direct mail. Appropriate messages are conveyed to those who are potential buyers of the hotel product and those who directly influence decisions to buy the hotel product. Personal selling of the hotel product is effective when long-term relationship between the hotel and the customer is sought. It is also required where the level of business per customer is likely to be significant. Indirect marketing communications for hotels include public relations and publicity, both of which may or may not form a part of the hotel’s marketing communication programme but may function independently. The major elements of the hotel communication mix are – mass media advertising, direct mail, sales promotion, public relations, and publicity.

5.6.5 Advertising Hotel advertising is an effective and, generally, a long-term effort to inform the customer about the existence of the property, giving details about the location and types of facilities offered. Advertising is also aimed at influencing the attitude of the customer to bring about his acceptance of the particular service offered. Informative advertising is necessary for a new hotel or a hotel offering new facilities or services which are different from the past. Persuasive advertising is aimed at a more competitive situation where desired business from all departments of the hotel is not achieved.

In advertising, a hotelier is dealing with a non-personal contact with the target audience, unlike sales promotion where the hotelier is aware of the identity of the target. The purpose of advertising is indeed the same as the purpose of communication – it aims to inform and persuade the consumer or the travel trade to change, to influence their attitude towards the advertiser’s product or organisation.

5.6.6 Sales Promotion Sales promotion is aimed at generating immediate response in terms of a buying decision. For a hotel which wishes to cash in on sales promotion, the specific part of the business which stands to benefit, i.e., room sales or food and beverage sales, has to be clearly identified and a promotion drive which will bring about the desired increase of sales must be launched. For instance, a hill station hotel which normally has almost empty rooms during winter or off-season may promote its accommodation and other facilities when a famous winter sports festival is to be held in that area or a national or international conference is to take place or any other special convention or workshop where participating delegates also need relaxation. People who would normally not visit the hill station in winter will do so when presented with such an opportunity.

There are two ways in which one can examine sales promotion. First, schemes which can be defined in terms of time; and second, as an ongoing permanent activity/function. Irrespective of these distinctions one can clearly identify three groups of activities under sales promotion: trade promotions; consumer promotions; and display.

Trade promotions are schemes which are generally intended to induce or persuade the travel trade or the distribution channel to generate more demand. The term “travel trade” has been used in its generic form—to refer to all the available distribution channels or outlets to the hotel industry. Trade promotions are, therefore, schemes


which are intended to induce or persuade the travel trade to sell more of the hotel product or hotel service and for this purpose a variety of incentives are given.

Consumer promotions are schemes to persuade the consumer, i.e., the potential hotel guest or the user of hotel services, to buy a particular hotel product or service, at a particular point of time. Consumer promotions should be understood as the first definition of sales promotion schemes which are defined in terms of time and are finite.

The third group of activities which include product display and related point-of-sale material, i.e., posters, show cards, display units, etc., help keep in perspective the view that one can’t obviously display the actual hotel product or service at the point of sale and so one has to depend on the descriptions and representations of the actual product.


Fill in the blanks:

1. ………………….. is aimed at generating immediate response in terms of a buying decision.

2. The term “…………………..” has been used in its generic form—to refer to all the available distribution channels or outlets to the hotel industry.

3. ………………….. is an effective and, generally, a long-term effort to inform the customer about the existence of the property, giving details about the location and types of facilities offered.

4. The ………………….. are through personal selling, advertising, sales promotion and direct mail.

5.7 LET US SUM UP Hospitality refers to the relationship process between a guest and a host, and it also refers to the act or practice of being hospitable, that is, the reception and entertainment of guests, visitors, or strangers, with liberality and goodwill.

The term Tourist is believed to have been derived from the Latin word ‘TORNUS’ which means a tool, a circle or a turner’s wheel. The World Tourism Organisation (WTO), the major intergovernmental body concerned with tourism, has led the way in establishing a set of definitions for general use. According to the WTO, international tourism differs from domestic tourism and occurs when the traveller crosses a country's border.

Tourism sector holds immense potential for Indian economy. It can provide impetus to other industries through backward and forward linkages and can generate huge revenue earnings for the country.

Hotels are a major service industry in India. A number of international hotel chains have come to India, either independently or with a tie-up with an Indian partner.

The travel trade in India is about sixty years old, and has received its impetus from the growth of civil aviation in the country. The quality, reach, and ultimate success of the marketing activity in a travel agency depends on how clearly the marketer has understood the service levels his firm can deliver, and how accurately he assesses the factors which make his firm stand out from competition.

Growing global competition in the air travel market meant that the 1990s were the decade of the air traveller as a consumer seeking enhanced service quality. The role of airline marketing is to bring together the supply of air services, which each airline can largely control, with the demand, which it can influence but not control, and to do this in a way which is both profitable and meets the airline's corporate objectives'.

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Hotel and their Rating5.8 LESSON END ACTIVITY Have a group discussion on the topic – hotel industry in India.



Tourism: The activities of persons travelling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business, and other purposes.



World Tourism Organization (WTO): It is the major intergovernmental body concerned with tourism.

5.10 QUESTIONS FOR DISCUSSION 1. Distinguish between hotel and resort.

2. Give a brief description of the rating system.

3. Explain the hotel products and services.

4. How hotel industry is helping India in growing faster?


CYP 1

1. True

2. True

3. True

CYP 2

1. Sales promotion

2. travel trade

3. direct communications

4. direct communications


Kumar. Prasanna (2010), Marketing of Hospitality & Tourism Services. Tata McGraw Hill Education Pvt. Ltd.

104 Principles of Travel and Tourism Operations and Aviation Safety LESSON

6 TYPES OF ROOMS AND BEDDING

CONTENTS


6.1 Introduction

6.2 Types of Guest Rooms and Accommodation

6.3 Types of Bedding

6.4 Meal Plan

6.5 Cancellation

6.6 Currency Fluctuation and Commission Policies

6.6.1 The Impact of Economic Crisis on Tourism and Hospitality Worldwide

6.7 Appointment and Control

6.8 List of IATA Approved Travel Agencies

6.9 Bank Guarantee Scheme

6.10 IATA Billing and Settlement Plan

6.10.1 BSP Participating Airlines Benefits

6.10.2 IATA Accredited Travel Agent Benefits

6.10.3 Consumer Benefits

6.11 Credit Period

6.12 Customer Service – Service Provider

6.13 Training and Development of the Travel Agent

6.14 Global Distribution System (GDS)

6.15 Let us Sum up


6.17 Keywords




Discuss the types of bed

Explain the types of room

Describe meal plan

Know about bank guarantee

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Types of Rooms and Bedding6.1 INTRODUCTION We can define guest house as a type of lodging. In several parts of the world a guest house is related to a hostel, bed and breakfast, or hotel as in other parts of the world guest houses are the inexpensive hotel-like accommodation. It is a confidential home which has been transformed for the restricted use of visitor lodging. The proprietor typically lives in a totally divide area within the belongings and the guest house might work as a shape of housing industry.

A bed is a type of furniture generally used for undeveloped reason. Most current beds are equipped by a mattress on a bed framework, with the mattress kept either on a solid base, often wooden boards, or a sprung base. In North America many beds surround a box spring inner-sprung base a large mattress-sized box property wood and springs that offer additional sustain and deferral for the mattress.

Most beds have a bedhead for hidden next to, with others also having side rails and footers. "Bedhead only" beds often include a "dust ruffle", "bed border", or "drapery sheet" to hide the bed frame.

For greater head maintenance, most people like to use a pillow, retained on the top of a mattress. Some form of wrapper blanket to defend the sleeper are also worn, often bed sheets, a quilt, together referred to as bedding. Bedding is the variable non-furniture portion of sleeping surroundings. For example a bed can be thought of as a body and the bedding its clothing.

6.2 TYPES OF GUEST ROOMS AND ACCOMMODATION A room that is utilized by the guest as a bedroom in a home not regularly occupied by a member of the family and kept predominantly for guests as a spare room or a room in a hotel or lodging house for occupation by guests.

The guest room is the central product of a hotel as it adds to more than 50% of the total sales making the profit percentage from the room sales very high. Guestrooms in a hotel have a role in the image building of the hotel. Guests may stay in a hotel for pleasure, convenience or from necessity. Whatever the reason for the stay, they will always expect a certain standard of service and comfort.

It used to be customary to have rooms of more or less than the same standard throughout the property, but the trend is changing now. Guests are now being offered a choice of more expensive rooms with upgraded facilities. Hotels now offer a wide variety of rooms catering to the needs of different types of travellers.

Types of Guest Rooms

Single Room: A room with a normal solo bed to accommodate single person.

Double Room: A room which has double bed and arrange for sleeping comforts for two persons. A double bed is a large bed usually for two persons.

Twin Room: A room having two single beds separated out by a small bedside table. The room delivers sleeping room for two people.

Double-double Room: A room has two double beds and provides sleeping comfort for 4 people or for the family.

Studio Room: A room having utility furniture such as sofa-cum-bed. A bed is used as a sofa in the day time and converts into bed at night, meant for business people.

Suite: A suite refers to a set of two rooms interconnected to each other out of which one is a bed room and other is a sitting room. Suite is a costly room of the hotel.


Hospitality Suite: A parlour with a connecting bedroom, to be used by guest to entertain his own guest or for companies offering cocktails during conventions, entertaining and trade shows. This room usually contains a bar and occasional tables as well. It is charged on hourly bases.

Junior Suite: A large room with a partition separating the bedroom furnished from the sitting area.

Efficiency: A room having small kitchen facilities.

Cabana: A room situated near the swimming pool of the hotel and normally used by the people who love water games or swimming. These rooms are mainly used for changing.

Duplex: Two rooms on two successive floors and is connected to each other with a common staircase. Generally the sitting room is on the lower floor and the bedroom is on the upper floor.

Pent House: Room situated on the terrace of the building with one of the door opening towards the terrace. Other facilities and amenities may also be added to it.

Lanai: A room overlooking a landscaped area, a scenic view, a water body or a garden. These rooms are found in resort hotels.

Hollywood twin room: A room with two twin beds but a common headboard meant for two people. If so desired the beds can be joined together to make it appear like a single bed.

Single room A room assigned to one person, having one bed.

Twin room A room with two twin beds meant for one person each.

Hollywood twin room A room with two twin beds but a common headboard, meant for two people.

Double room A room with a double bed for two persons.

Triple room A room assigned to three people, which may have two or more beds.

Quad room A room assigned to four people, which may have two or more beds.

Queen room A room with a queen-size bed.

King room A room with a king size bed. Double room A room with two double beds, meant for four people.

Studio room A room with studio bed.

Sico room A room with a Murphy bed.

Mini-suite room A single large room with a bed and a sitting area.

Suite room A combination of one or more bedrooms and a parlour, it may also contain a bar and a kitchenette.

Connecting room A room with individual entrance doors from the outside and a connecting door between, so that guest can move between rooms without going through the hallway.

Adjoining rooms A room with a common wall but no connecting door.

Adjacent room Rooms close to each other but not necessarily adjoining- perhaps across the hall or corridor from each other.

Cabana A room adjacent to the pool area, with or without Contd…

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Types of Rooms and Beddingsleeping facilities, but with provision for relaxing in a sofa.

Duplex Two storey suite, with parlour and bedroom connected by a stairway.

Efficiency room A room containing some kitchen facilities.

Hospitality suite A parlour with a connecting bedroom to be used by guest to entertain his own guests or for companies offering cocktail during conventions, entertaining and trade shows.

Lanai A room overlooking landscaped area, a scenic view, a water body or a garden. It may have a balcony, a patio or both.

Parlour A living or sitting room, A room not used as bedroom. Family room A room with two double beds, meant for two, three or

four persons. Pent house A room that opens onto the roof and may be

accompanied by a swimming pool, patio, a tennis court and other facilities and amenities.

Executive rooms A room that has a large bedroom with a sitting area, provided with chairs and usually a sofa and coffee table.

Guest Room Status

OCC: A guest has currently registered to the room and so the room is occupied.

Stay over Room S/O

The guest is not checking out today and will occupy the room for at least one more night.

Do Not Disturb/DND

The guest has requested not to be disturbed. DND card is on the door.

Scanty Baggage/SB

The guest has very light luggage and he may leave the hotel without settling his room account.

Vacant/V

The room has been cleaned, inspected and is ready for the arrival of the guest.

Out of Order/OOO

The room cannot be assigned to the guest. It may require major maintenance work to be done.

Check Out/C/O

The guest has settled his account returned the room keys and left the hotel.

Did not Check Out/DNCO

The guest made arrangement to settle his account but has left without informing the Front Office.

Double Locked/DL

The room which has been double locked by the guest from inside. No other key can open this room door except the grand master key.


No Baggage/NB

The guest is staying in the room but without baggage.

Not Packed/N/P

The guest has settled his account with Front Office but has not packed his baggage in his room.

Packed Luggage/P/L

The guest has packed his baggage and left it in the room but has not settled his room account.

6.3 TYPES OF BEDDING

There are various dissimilar types of conditions used to recognize definite pieces of bedding. Meaningful the correct conditions will assist you supermarket and find the right item for your bed. Whether its linens, bed coverings, pillows, or the filling you use for a duvet cover, this list will assist you find the ideal fit, along with several tips you may not have recognized in regards to bedding.

Top Sheet

A top sheet, also recognized as a flat sheet, is the sheet you put over the top of your bed to divide you from your quilt or duvet. Some duvet or quilt sets do not consist of a top sheet as they’ll have a flat, crisp cotton side in its place, which replaces it.

Bottom Sheet

A bottom sheet is the sheet with the elastic-edge that is utilised to fit over your mattress hence the given name bottom or fitted sheet.

Coverlet

A coverlet is an ornamental fabric cover that does not handle the floor and usually does not cover the pillows. Woven coverlets and quilts fall into this group.

Bedspread

A bedspread is alike to a coverlet a thin, pleasing to the eye covering--but it usually covers the whole bed and touches the floor.

Blanket or Throw

A blanket or throw is a small casing usually establish at the foot of a bed utilised for additional warmness or attractive accents.

Comforter

A comforter is a bed cover swollen with fibers or down then sewed jointly at all four sides. This wadding is further to generate extra heat and soothe on cold nights. A comforter can be attractive and come in many dissimilar colours, patterns, and designs. It’s usually used as a main attractive element in bedrooms.

Duvet

A duvet is comparable to a comforter apart from it needs the use of a duvet cover, where a quilt does not.

Duvet Cover

A duvet cover that has an opening where the quilt or duvet is inserted, once located in, its opening is closed with buttons. The duvet cover is usually an ornamental covering, which essential purpose is to put in interior decoration to your bedroom.

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Types of Rooms and BeddingEuro or Continental Pillow

A euro or continental pillow is a large four-sided figure pillow, i.e. an attractive pillow that sits back next to the headboard.

Decorative Pillow

A decorative pillow, also consider as an accent or throw pillow, is a small pillow that comes in many shapes, sizes and colours to add decoration to a bed.

Bolster Pillow

A Bolster pillow is a tubular pillow utilised to bend back next to for lumbar hold, but classically it’s used as an ornamental pillow or accent pillow bed.

Pillow Sham

A pillow sham is alike to a pillowcase but it does not unwrap on one side, as an alternative it has an extension, which is an extra piece of cloth that extends from where the pillow deception is sewn on each border. Pillow shams make a more refined look, so they are used over pillowcases. Pillow shams are often more decorative than pillowcases and more likely to have elaborate embellishes on them.

6.4 MEAL PLAN Hotels present numerous unusual “Meal Plans” that depend on the hotel or resort. Having some meals incorporated can make a big variation taken as a whole vacation everyday expenditure. Make sure to observe what time of the day the meals are presented. There is no logic paying for something you won’t be here to eat. Find out how several people staying in the area the “Meal Plan” will comprise. Several times the room will grasp extra people than the “Meal Plan” will give for so you may be necessary to pay for additional guests. (AP) American Plan – Includes three meals daily. (MAP) Modified American Plan (sometimes called demi-pensions, half pension or half board depending where you are in the world) – Includes some meals. (AL) All inclusive Plan (also called Full Pension, or Full American Plan) Check what they mean by all complete it could be just 3 meals a day with drinks, dessert, food and drink etc. or it may comprise some meals but not drinks. (EP) European Plan – No meals included. (CP) Continental Plan – Continental Breakfast: This varies from hotel to hotel. Generally, it is pastries and coffee. (B&B) Bed and Breakfast – Some sort of breakfast is included with your hotel night stay. The breakfast can range from a drink or coffee with a roll to a full breakfast buffet. Each hotel, resort or accommodation may understand the sense of these terms in a different way so this is an additional cause to check precisely what is incorporated before you book your hotel. We for all time try to have meals incorporated as it generally costs more to buy meals separately than to have them incorporated in the room rate.

6.5 CANCELLATION Waiving tour fees (e.g. deposit-payment) from customers in unusual

circumstances (e.g. sudden withdrawal of booking by customers).

Favoring particular customers by cancelling others’ bookings.


Recommended Measures

Require authorization for waiving of charges or cancelling of bookings by staff. A waiver of fees on each occasion should be justified and recorded for audit review.



1. European Plan – No meals included.

2. A pillow sham is alike to a pillowcase but it does not unwrap on one side, as an alternative it has an extension, which is an extra piece of cloth that extends from where the pillow deception is sewn on each border.

3. A decorative pillow, also consider as an accent or throw pillow, is a small pillow that comes in many shapes, sizes and colours to add decoration to a bed.

4. A top sheet, also recognized as a flat sheet, is the sheet you put over the top of your bed to divide you from your quilt or duvet.

6.6 CURRENCY FLUCTUATION AND COMMISSION POLICIES The hospitality and tourism sector is facing many challenges as a consequence of the global financial crisis. After an important reduction in 2009, tourism rebounded muscularly in 2010 and in 2011 the international tourist arrivals and proceeds are expected to rise significantly. The hospitality industry is projected to show a continuous improvement in 2012. The crisis has mainly strong collision and harmful penalty in Greece. The country is undergoing a severe political disaster as well, and it seems that the approaching elections are the only solution for the restitution of strength and social peace. Additionally, tourism can be the powerful force following Greece’s economic recovery. Conversely, for its attainment the country’s strategy makers should take numerous measures towards reorganization and civilizing the sector. These actions include: improvement of substitute forms of tourism; environmental protection; creation of quality infrastructure; and boost of competitive ess through a tourism product that offers value for money.

There is no universally accepted definition of what constitutes a crisis and different writers present their own interpretations. However, it appears that three elements must be present: a triggering event causing significant change or having the potential to cause significant change; the perceived inability to cope with this change; and a thereto the existence of organisations (Keown-McMullan, 1997), as well as of tourists and members of the tourism industry (Henderson, 2006). Every crisis is unique displaying a remarkable range and variety (Henderson, 2006), yet characteristics generally cited include unexpectedness, urgency and danger (Hermann, 1972). Tourism crises usually share these attributes although certain crisis situations can be predicted and lack immediacy. Causes of many tourism crises can be traced to developments in the economic, political, sociocultural and environmental domains which affect demand and supply in generating and destination countries. Economic downturn and recession, fluctuating exchange rates, loss of market confidence and withdrawal of investment funds can all create a tourism crisis. Crises generated within the industry can also be analysed under the headings of economic, sociocultural and environmental when tourism has negative impacts in these fields (Henderson, 2006).The external and internal threats of the economic crisis to the tourism industry are:

External threats: recession; currency fluctuations; and taxation.

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Types of Rooms and Bedding Internal threats: rising costs; falling revenues; unprofitability (Sian et al., 2009).

Crises occur at all levels of tourism operations with varying degrees of severity, from much publicized environmental, economic and political disasters through to internally generated crisis such as accidents and sudden illness (Beeton, 2001).

The travel and tourism industry is susceptible to a wide range of internal and external forces and is impacted heavily by crisis events resulting in negative tourist perceptions (Pforr & Hosie, 2009). Economic downturn can undermine demand and possibly result in crisis for industries in origin and destination countries if the slump is sufficiently intense or prolonged. The depression of the 1990s on the U.S. mainland contributed to decline.

Hawaii’s tourism from 1990 to 1993 and Japan’s economic difficulties had adverse consequences for its outbound tourism in the same decade, including travel to Hawaii(Sian et al., 2009). In 1997 the world financial crisis that began in Asia and spread to Russia and Brazil in 1998 (Schifferes, 2007), as well as the falling currency values depressed demand for travel and investment in tourism (Henderson, 2006). The U.S. hotel industry experienced an intense and immediate negative impact on occupancy, rate, and revenue per available room (RevPAR) in real dollars after the fall of Lehman Brothers on September 15, 2008 and the financial crisis that followed. Although the direct effects of the economic crisis decreased in about four months, occupancy rates continued to fall and remained low throughout 2009 and early 2010 (Enz et al., 2011).

6.6.1 The Impact of Economic Crisis on Tourism and Hospitality Worldwide The current financial crisis that began in 2007 has created the greatest financial disorders since the Great Depression of the 1930s (Melvin & Taylor, 2009).

As with most industries, the welcome and tourism area is experiencing many challenges as a consequence of the global financial crisis. The industry is sense the impact of a reduction capital marketplace and decreased expenditure by both corporate and person consumers. Businesses have reported a recession in sales of accommodation, food service, events and other hospitality crop and some have stopped up their doors evermore. The decline resulted not only from fewer clientele in hotels, restaurants, discussion and meeting centres, etc., but also from a significant decline in the average expenditure per guest (Pizam, 2009).The recession caused serious problems for luxury hotels in particular. However, many hotels in certain global markets, especially those catering to leisure travellers, were less affected. And the popularity and growth of the luxury hotel segment in recent years suggests that a strong rebound may not be unrealistic (Barsky, 2009). There were sharp differences in the performance of the various global regions in2009. More specifically:

Europe ended 2009 down 6%. Destinations in Central, Eastern and Northern Europe were particularly badly hit, while results in Western, Southern and Mediterranean Europe were relatively better.

Asia and the Pacific (−2%) showed an extraordinary rebound. The second half of 2009 saw a 3% growth, reflecting improved regional economic results and prospects.

In the Americas (−5%), the Caribbean returned to growth in the last four months of 2009.

The Middle East (−6%), though still far from the growth levels of previous years, had a positive second half in 2009.

Africa (+5%) was a strong performer, with sub-Saharan destinations doing particularly well. The average price of a hotel room around the world was


14% cheaper in 2009 than in 2008, according to the Hotels.com Hotel Price Index. In fact, a hotel room was cheaper in 2009 than it was in 2004. Rooms cost 13% less in Europe during 2009 than in 2008, 14% less in the United States, 16% less in Asia and 21% less in Latin America. However, towards the end of 2009, the price falls started to stabilize.

According to the World Tourism Organization (UNWTO), the key trends in international tourism during 2010 were the following:

Worldwide, international tourism rebounded strongly, with international tourist arrivals up 6.6% over 2009, to 940 million.

The increase balanced the decline caused by the economic downturn, with an additional 23 million arrivals over the former peak year of 2008.

In 2010, international tourism receipts are estimated to have reached US$ 919 billion worldwide (693 billion euros), up from US$ 851 billion (610 billion euros) in 2009, corresponding to an increase in real terms of 4.7%.

As a reflection of the economic conditions, recovery was particularly strong in emerging economies, where arrivals grew faster (+8%) than in advanced ones (+5%).

The international tourist arrivals are projected to increase in 2011 by 4% to 5%.In the DLA PIPER EU hospitality outlook survey (March 2011) the majority of respondents expect the hospitality industry to show a sustained recovery in 2012 and are turn to pre-financial crisis levels in terms of room rates, largely due to a predicted growth in business travel. “Being Green” and having green accreditation is seen as important for increasing brand value by 57% of respondents and the use of energy-efficient materials is widely adopted and driven by individual green policies and rising energy costs.

The EU hospitality and leisure sector is increasingly using social media as a promotional tool to enhance sales, marketing and public relations, although it is still behind the U.S. The World Economic Forum published its Travel and Tourism Competitiveness Report 2011 under the theme “Beyond the Downturn,” including the following findings: the Travel and Tourism (T&T) industry is slowly recovering from the Economic downturn, with the strong recovery being in emerging economies. The industry is looking for ways to develop new market segments and attract new customers. Indeed, T&T remains a critical economic sector worldwide, with the potential to provide economic growth and development internationally.

6.7 APPOINTMENT AND CONTROL

Common Malpractice

Colluding with land operators to inflate the price of services.

Showing favour in appointing particular land operators, tolerating overcharging and accepting substandard services.

Leaking commercial information e.g. quotation prices to competing land operators.

Recommended Practice

Attainment of services as well as goods is an area that has a lot of misuse. The travel agents staff are energetically involved in procurement activities (e.g. procurement of pre-trip souvenirs as gifts to travellers and office stationery, engagement of overseas’ land operators to receive outbound travellers, and local service providers for inbound visitors such as hotels, transport companies, restaurants, attractions operators, etc.). Besides ensuring that procurements are value for money, it is significant for the

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Types of Rooms and Beddingtransportable agent operators to start a competitive procurement system with adequate safeguards to avoid misuse by deceitful staff.

6.8 LIST OF IATA APPROVED TRAVEL AGENCIES

Travel Agency Name Address Advaita Holiday Pvt Ltd

11/231, Vasundhara Sector-11, Ghaziabad – 201012

Alpcord Network Travel

614, 6th Flr, New Delhi House, New Delhi House, 27, Barakhamba Road, Delhi – 110001

Apollo Holidays Office No 4, SCF 71, Basement, Sector 15 Market, Near OBC Bank, Faridabad Sector-15, Faridabad – 121007

Archi Travels A -181 Chander Vihar I.P. Ext., Opp. Rama Krishna App, Patparganj, Delhi – 110092

Arush Forex Pvt Ltd N-12, Chamber No-14 & 15, Munshi Lal Building, Nr Tata Indicom Showroom, Connaught Place, Delhi – 110001

Belair Travel & Cargo Pvt Ltd

10-B, Sindhia House, Connaught Place, Delhi – 110001

Bhraman Tours & Travels

M-14a, Nr. Ambey Inn Hotel, Lajpat Nagar II-Lajpat Nagar, Delhi – 110024

Blue Moon Travels D-40, Next to Noida Authority, Noida Sector-6, Noida – 201301

Bluebell Tours & Travels Pvt Ltd

LGF-70, Near Ansal Fortune Arcade, Noida Sector-18, Noida – 201301

Colombus Travels B6, Near Police Station, Sec 8, Noida Sector-8, Noida – 201301

Cox & Kings A 90, 1st Floor, Roxy Chowk, Lajpat Nagar 2, Delhi – 110024

Cox & Kings India Ltd UG-6 Western Mall, Near Janak Puri East Metro Station, Janakpuri, Delhi – 110058

Cox & Kings India Ltd G 54 – 1st Floor, Near Walia Nursing Home, Vikas Marg, Lakshmi Nagar, Delhi – 110092

Creative Travel Creative Plaza, Nanakpura, Moti Bagh, Delhi – 110021 D Pauls Tours & Travels Ltd

B-50 & B-36, Shivalik, Malviya Nagar, Delhi – 110017

D S Tourist Services A-180, Chander Vihar, Opp Rama Krishna Apprtment, Patparganj, Delhi – 110092

Decent Travels Shop No. 1, Janpath Lane, Connaught Place, Delhi – 110001

Dekhoduniya.Com 204 & 262, Agarwal Shopping Plaza, Plot No-1, Pitampura, Delhi – 110034

Deneb & Pollux Tours & Travels

106, South City Arcade, South City PH-I, Nr Unitech House, Gurgaon, Gurgaon – 122001

Dimple Travels Old No A-26, New No B-239, 1st Flr, Opp Saraswati Kunj Apt, I P Extn, Vinod Nagar West, Delhi – 110092 Contd…


Dnata Travels Gf-33, Barakhamba Rd, Connaught Place, Delhi – 110001

Dolphin Travels B-6,3rd Floor, Above -Axis Bank, Lajpat Nagar II-Lajpat Nagar, Delhi – 110024

Equator Tours & Travels

5-B, Vandana Bldg, 11,Tolstoy Marg, Nr Janpat Mac Donalds, Tolstoy Marg, Delhi – 110001

Eternity Travels & Tour 116, Hans Bhawan, Bahadurshah Zafar Mg, ITO, Delhi – 110002

Expertise Hotel Services

Noida, Sector-6, Rohini Sector-3, Delhi – 110085

Fantasy Travels & Tours

208-209, Madhuban Bldg,55, Nehru Place, Delhi – 110019

Flexi Tours I-84, Taneja House, 1st Flr, Lajpat Nagar II-Lajpat Nagar, Delhi – 110024

Friends Travels & Consultants

15a/55, W E A Karol Bagh, Saraswati Marg, Karol Bagh, Delhi – 110005

Globe Trotters Pvt Ltd Gf-12, Prakash Deep Bldg, 7 Tolstoy Mg, Connaught Place, Delhi – 110001

Go India Journeys C7, 3rd Floor, Sector 3, Noida – 201301 Hopp Worldwide F-44, Bhagat Singh Mkt, Connaught Place, Delhi –

110001 Hrg Sita India F-12, 1st Flr, Connaught Place, Delhi – 110001 Jeevan Travels Community Centre-1,Office No-103, PVR Naraina &

Opp Fire Station, Naraina Industrial Phase – I, Delhi – 110028

Journey Needs Dot Com

National College Campus, L G 6, Somdut Chambers 1, Beside August Kranti Bhawan, Adjacent To Skoda Show Room, Bhikaji Cama Place, Delhi – 110066

JRK Holidays 516, Naurang House, 21 K.G. Marg, Connaught Place, New Delhi-110001

Knap Sackers Travels 202, Krishna Plaza-2, Sector-12, Dwarka, Delhi – 110075

Kumar Tourist Agency J-3/5 Top Floor, DDA Flats Alaknanda, Kalkaji, Delhi – 110019

LE Travel World 2, Danbro House, F-22,Sec-18, Nr McDonald's, Noida, Noida – 201301

Lords Travel 74, Nr Canara Bank, Tolstoy Janpath Lane, Connaught Place, Delhi – 110001

MarvelTrip.com 8 – 9 Ground Floor, Centrum Plaza, Gurgaon Sector-53, Gurgaon – 122003

New Kansal Travels 161-D,Ground Floor, Near Bitto Tikki Wala, Post Office, Kamla Nagar, Delhi – 110007

Pacific Travels 206 Prakash Deep Bldg 7, Tolstoy Mg, Connaught Place, Delhi – 110001

Paradise Tour Co India 211/Bg8, DDA Commercial Complex, Paschim Vihar, New Delhi – 110063, Paschim Vihar, Delhi – 110063 Contd…

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Types of Rooms and BeddingPaul Merchant F 46,1st Floor, Malhotra Building, Nr Rajeev Chowk

Metro Station, Connaught Place, Delhi – 110001 Premium Tours Pvt Ltd 507 5th Flr Laxmi Deep Building, District Centre,

Behind V3S Mall, Lakshmi Nagar, Delhi – 110092 Prime Travels L-8, Green Park Extn, Green Park, Delhi – 110016 SkyLink Travel Pvt Ltd G-17,Marina Arcade, Opposite Shivaji Stadium & Below

Radisson Blue Marina Hotel, Connaught Place, Delhi – 110001

Skylord Travels 203-205 Avg Bhawan, M-3, M-Block, Middle Circle, Connaught Place, Delhi – 110001

Smile Tours and Travels

Shop No 12, Vasant Enclave, DDA Market, Vasant Enclave-Vasant Vihar, Delhi – 110057

Sonata Travels India Pvt Ltd

S-8, Cu Block, Kohli Plaza, Pitampura, Delhi – 110034

Spring Travels Pvt Ltd Head Off-310, Ambika Vihar, Paschim Vihar, Delhi – 110063

Spring Travels Pvt Ltd Gf-22,Tdi Poragon Mall, Rajouri Garden, Delhi – 110027

Sterling Intl Tours & Travels

G-39, Pawan House, 4th Flr, Middle Circle, Connaught Place, Delhi – 110001

The Great India Tour Company

B-34 A, Ground Floor., 1st Gole Chakker., Kalkaji, Delhi – 110019

Travel 360-visa Management

1304,Hemkunt Towers, Rajendra Place Metro Station, 6, Rajendra Place, Delhi – 110008

Travel Baazar 1611, Near Nulife Hospital, Outram Lines, GTB Nagar, Delhi – 110009

Travel With Us D-8/8127, Nr Masoodpur Flyover, Vasant Kunj, Delhi – 110070

Trip & Events P-61,Old Double Story, Lajpat Nagar IV-Lajpat Nagar, Delhi – 110024

UAE Exchange & Financial Services

Shop No-123, Nr SBI ATM, Bhagatsingh Mkt, Golemarket, Connaught Place, Delhi – 110001

www.makemytrip.com Shoppers Stop, TDI Mall, 11 Shivaji Place Complex, Rajouri Garden, Delhi – 110027

Yokoso India Tour & Travels

Shop No-1, Flat No-77, Rps Flats, Near E Block, DDA Market, Vikaspuri, Delhi – 110018

Zap Booking Pvt Ltd 552, Metro Heights, Netaji Subhash Place, Pitampura, Delhi – 110088

Zenith Leisure Holidays 401/5,Distt Centre,4th Flr, Janakpuri, Delhi – 110058

6.9 BANK GUARANTEE SCHEME The Bank Guarantee Scheme is formed by the Government of India for the issue of bank guarantees in favour of Central Government Departments, in lieu of safety deposits, etc. by contractors, has been customized from time to time. Beneath the system, it is open to Government Departments to believe generously guarantees, etc. from all planned commercial banks.


The Government of India have advised all the Government departments/Public Sector Undertakings, etc. to believe bank guarantees in the Model Bond and to make sure that alterations additions to the clauses every time measured essential are not one-sided and are made in agreement with the guaranteeing bank. Banks should declare in the promise bonds and their communication with the various State Governments, the names of the recipient departments and the purposes for which the guarantees are executed. In respect of guarantees issued in favour of Directorate General of Supplies and Disposal, the following aspects should be kept in view:

So as to speed up the procedure of confirmation of the authenticity of the bank assurance, the name, description and code information of the officer/officers signing the guarantees should be included under the signature(s) of officials signing the bank guarantee.

The recipient of the bank guarantee should also be advised to consistently obtain the authentication of the worried banks about the authenticity of the guarantee issued by them as a determine of safety.

The initial period of the bank security issued by banks as a means of safety in Directorate General of Supplies and Disposal contract administration would be for a period of six months beyond the original delivery period. Banks may include an appropriate section in their bank guarantee, provided that automatic addition of the strength period of the guarantee by 6 months, and also get appropriate responsibility from the client at the time of establishing the guarantee to keep away from any probable difficulty later.

The bank guarantee, as a means of safety in the Directorate General of Supplies and Disposal contract administration and expansion letters thereof, would be on non-judicial stamp paper.

6.10 IATA BILLING AND SETTLEMENT PLAN IATA’s Billing and Settlement Plan (BSP) is a scheme planned to make possible

and make simpler the selling, treatment and remitting events of IATA Accredited Passenger Sales Agents, as well as get better financial power and cash flow of participating airlines.

A worldwide system that operates in some 177 countries and territories.

In 2012 IATA’s BSP processed $251.8 billion.

Year Agents Sales $ bn Bad debt $ m Bad debt % sales 2003 58,900 132 43 0.032 2004 59,500 158 55 0.035 2005 60,400 171 62 0.036 2006 60,557 187 31 0.017 2007 53,894 220 53 0.024 2008 54,566 240 85 0.035 2009 54,848 191 128 0.067 2010 55,036 221 54 0.029

2011 53,914 249 68 0.027 2012 60,471 252 64 .02

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Types of Rooms and Bedding6.10.1 BSP Participating Airlines Benefits

Access to a global allocation system of IATA credited travel agents who have signed a single standard Passenger Sales Agency Agreement with IATA.

Impartial agent confirmation services by IATA together with financial estimate and status monitoring.

Reliable credit organisation with a gathering rate of 99.976%.

Access to IATA’s BSP and BSP link that jointly give a single standard border for invoicing and expense among agents and airlines.

Security in case of destruction of the Passenger Sales Agency Agreement or fraudulent practices.

6.10.2 IATA Accredited Travel Agent Benefits Capability to sell global and/or local tickets on behalf of the airlines. Access to IATA’s Billing and Settlement Plan (BSP), and BSP link that jointly

give a single standard border for invoicing and expense between the agent and multiple airlines and transport providers.

Entrance to more than 240 IATA airline members by means of a solitary standard Passenger Sales Agency Agreement.

Global customer self-assurance due to credit of IATA-accredited travel agents gathering industry standards identifiable by the IATA logo and branding displayed on travel agents’ premises and websites.

Global travel industry recognition through an IATA Numeric Code that provides a unique agent identifier.

Provides standard events which make sure fair and consistent standards in all transactions with airlines.

6.10.3 Consumer Benefits Confidence that IATA credited travel agents meet trade principles and financial

criteria. Impartial advice and the selection to acquire tickets on a wide range of airlines

from side to side IATA-accredited travel agents.

“Most agents give credits to corporate clients and have large receivables. The seven-day payment cycle will impact agents,” said Pradip Lulla, general secretary of Travel Agents Federation of India.

“We are discussing the issue with airlines and hope it is postponed. We are against the move. The airlines are cutting their marketing arms. The seven-day cycle will lead to a consolidation amongst travel agents and will increase the risk for airlines,” said Iqbal Mulla, president of Travel Agents Association of India (TAAI).

"Moving to weekly settlement plan will benefit both airlines and agents. Airlines will receive payments in time, while agents will have a reduced financial burden as a result of a lower financial guarantee requirement due to more frequent remittances. With the change in the credit period, travel agents should also review their business processes so as to ensure that their cash flow is sufficient to cover the payments,” said IATA spokesperson Albert Tjoeng.

“The default insurance coverage is a commercial matter between travel agents and insurance providers. We understand that a vast majority of the accredited travel agents in India were able to obtain default insurance coverage during a recent renewal


exercise. Nonetheless, even if an agent is unable to obtain default insurance coverage, they still have the alternative option of providing a bank guarantee,” he added.

6.11 CREDIT PERIOD Airlines and travel agents are on a collision course. Yesterday, the International Air Transport Association (IATA) informed travel agents that they would have to dispatch the ticket sale proceed to airlines every 7 days, in place of the current fortnightly span. IATA has slated the alteration to arrive into effect from June 1, even as agents are challenging an adjournment in its completion.

Jet Airways, Air India, and Kingfisher, all of which are stressed with rising sufferers and ruling it tricky to pay their vendors in time, took the show the way to protect an approval from IATA to change the billing cycle to a week from fifteen. A decree to alter the billing cycle in India was accepted way back in October last year at an IATA discussion attended by all member airlines, though it was only the recent past that the new allowance plan was introduced.

BILLING SETTLEMENT PLAN: HIGHLIGHTS * A resolution to change the billing cycle in India was approved in October last year by all member airlines, though it was introduced only yesterday. It will be effective from June 1. * For all sales between 1st and the 7th of a month, an agent will have to make payment to the airline on 15th and so on. * Low-cost airlines such as IndiGo, GoAir and SpiceJet are not members of the billing settlement plan (BSP). * Agents are required to submit bank guarantees to IATA’s BSP, which would be revoked in case an agent defaults. * With the reduced billing cycle, airlines will be able to ascertain defaults and stop transactions with such agents much earlier.

“This will improve the cash flow of airlines,” the executive said. “We sell the ticket, but do not realise the amount for over 15 days.” The agents, he added, would have to reduce the credit period given to corporate clients so as to adjust to the new system. Certain travel agents give large corporates as much as three months’ credit for the business. “Other countries have adopted a seven-day billing cycle. Why can’t it happen in India?” he asked. Korea has adopted a three-day billing cycle, a source said.

There are some other benefits too. The agents are necessary to present bank guarantees to IATA’s BSP, which would be revoked in case a manager defaults. Now with the concentrated billing cycle, airlines will be able to determine defaults and stop dealings with such agents much earlier.

Travel Agents Federation of India (TAFI) says it will be a difficult proposition to make remittance four times a month. “No corporate pays you on the spot. So, from where will agents arrange the finances,” asks Ajay Prakash, president of the federation. For some large agents, he says corporate sales account for 50-60 per cent of their business.

“There is also a fear that the change in billing cycle will hurt small travel agents,” he adds.

“For us too cash flow is important,” reasons Pradip Lulla, former president of TAFI. “Travel business is increasingly becoming a high-interest low-margin business. Bringing about the change requires time.”

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Types of Rooms and BeddingThe Travel Agents Association of India plans to take up the issue with the airlines later this month. “We are talking to the credit card companies as well,” reveals association president Iqbal Mulla.

6.12 CUSTOMER SERVICE – SERVICE PROVIDER IATA provides a high-quality customer service and provides a variety of preparation program to improve the service. By the assistance of this we can study how to switch a difficult client and circumstances with assurance, increase the customer connections and develop loyalty.

What you will learn upon completing this course, you have the skills to:

Account management teams

Account managers

Customer Service managers

Customer Service staff

Develop customer loyalty

Feel confident in any customer situation

Handle difficult customers and situations

Make the most of every customer contact

This course is recommended for

Who should attend

6.13 TRAINING AND DEVELOPMENT OF THE TRAVEL AGENT Training and Development plays an important role in increasing professionalism in the industry of tourism and travel agency operations. On the other hand, the condition is that just like the manufacturing itself still does not have an obvious and sufficient operational framework for managing human resources, the training is being largely carried out in a haphazard and uncoordinated manner. In this volatile business environment, only that travel and tourism organization will succeed that will modify to get together the spirited fear to match the requirements of a new travel market, and will bring creativity, innovation, flexibility, willpower and professionalism into its operations. So as to meet these varying requirements, businesses and countries challenging for tourists need to make substantial efforts on training and retraining their staff for presenting high quality in service. Thus, Training and Development plays a significant function in increasing professionalism in the business of tourism and travel agency operations. Today, the travel industry is appropriately more and more cutthroat. The part-time stage of the travel agency industry is long over. Over the last two decades, the travel companies have altered their prototype and arrangement to meet rough challenges in the worldwide tourism market. So, in this unstable business surroundings, only that travel agency will do well that will alter to meet the viable threats and opportunities to contest the needs of a new travel marketplace, and will bring creativity, innovation, flexibility, determination and professionalism into its operations. Travel agencies need tourism professionals specializing in reservation and ticketing services, dissimilar operational and administrative functions – tour planning and journey scheming, travel information, destination counselling, sales and marketing, etc.

Consequently, a company’s staffing policy may not be only to focus on functional know-how but on attitudes and approaches that fit their company goals and


civilization. Unluckily, the employee income is very high in the tourism industry – particularly in travel agencies and tour operation business.

6.14 GLOBAL DISTRIBUTION SYSTEM (GDS) A global distribution system (GDS) is a network operated by a company that allows automated transactions between vendors and agents in order to establishment travel linked facilities to the end customers. A GDS can link facilities, rates and bookings combining products and services across all three travel sectors:

i.e., airline reservations,

hotel reservations,

car rentals,

and other activities.

GDS is different from a computer reservations system which is a booking system used by the particular vendors. Primary customers of GDS are transportable agents (both online and office based) to make reservation on various reservations arrangements run by the vendors. GDS grasps no inventory, the list is held on vendor’s arrangement system itself. A GDS system will have real-time association to the vendors’ database. E.g., when a travel agency needs a registration on the service of a specific airline, the GDS system routes the appeal to the suitable airline computer objections system. This allows a travel agent with a construction to a single GDS to select and book numerous flights, hotels, actions and related services on all the vendors in the domain who are part of that GDS.

Table below lists the numerous portals run by GDS enterprises. A client can view their questions held in the GDS's own database or using the airlines booking system itself. If a registration is made through a GDS—there are generally two registration references, one is called a GDS locator code and the other the actual reservation or PNR number.

Portal Name GDS Company URL link Sector View My Trip Travelport

(includes Galileo, Worldspan & Apollo

https://www.viewtrip.com/ Airline

Check My Trip

Amadeus https://www.checkmytrip.com Airline

Virtually There

Sabre https://www.virtuallythere.com Airline

Some GDS systems (primarily Amadeus and Sabre) also have double use ability for holding multiple computer difficulties system, in such circumstances functionally the computer reservations system and the GDS panel of the system perform as if they were separate systems.

Future of GDS: Use of GDS in the travel business created from an old-style legacy business model that occurred during the initial days of computerized reservations systems of 1950s. Most airline sellers (including budget and mainstream operators) have now accepted a strategy of 'direct selling' to their consumers by participating in their own questions and distribution systems, removing the dependence on a dedicated global GDS. Hence some specialists argue that modern skill improvement and change in commercial models will finally lead to phasing out of GDS in the Airline space. Hotels last to advantage from selling lodgings via the several GDSs because of the large spreading network and low cost when associated to online travel agencies. Some

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Types of Rooms and BeddingGDS corporations are also in the process of participating and establishing important offshore competence in a move to reduce costs and improve their profit margins.


Fill in the blanks:

1. Hotels continue to …………………… from selling rooms via the various GDSs because of the large distribution network and low cost when compared to online travel agencies.

2. Use of GDS in the travel industry originated from a traditional legacy business model that existed during the early days of computerised reservations systems of ……………………

3. A mirror image of the passenger name record in the airline reservations system is maintained in the ……………………

6.15 LET US SUM UP A sleep or not we spend a large part of our lives in bed. If you are suffering from sleep problems, you may not be aware that your bed is affecting the quality of your sleep. Many people find they sleep better away from home. There may be a number of reasons for this – being away from the stress of home and work, peace and quiet less expectation of being able to sleep – or, possibly the bed is more comfortable! The right bed for a good night sleep will be depending on a number of factors. People sleep in different environments throughout the worlds, from straw bedding on the floor, to a hammock strung between two trees. You need a bed that will give you the correct support and comfort, and provide you with a health space to sleep. It is recommended that a bed should be changed every 8–10 years. We sweat an average of half a print each night and a matter is a haven for dust mites, conditions that may affect our health as well as our sleep. Wear and tear means that it may not be as supportive as it was when new – all reasons to take a regular look at the condition of your bed. Tourism industry is managed by both the public and private sector enterprises. Tourism has four primary components such as attraction, accommodation, transport and technology. Tourism is a subjective experience and an amalgam of products and services. Tourism is a small-business industry. More than 70 per cent of businesses in the hospitality sector employ less than ten persons. It is a diversified and decentralised industry because the commercial imperatives that drive tourism change according to the location, environmental, social and cultural impacts of tourism on particular communities. It is controlled by government and mostly run by private players. The nature of tourism is over-consumption but it can be reduced with sustainable approach. This industry is highly inter-dependent and inter-connected among sectors. It is a profitable industry and dominated by sellers. The particulars of the tourism system are the impacts of numerous independent components with a wide range of relationships that differ both quantitatively and qualitatively. The system is run by structural components such as the visitor, transit and destination regions. It is also managed by the providers of support services, the government, the environment and the community. Tourism is a sunrise industry with much of the positive benefits if the tourism activities are managed meticulously. Tourism industry should be supported by the policy and planning guidelines of the government and private sector should be allowed to operate in all stages of the development of tourism. Tour operators are the organisers and providers of package holidays. They make contracts with hoteliers, airlines and ground transport companies then print brochures advertising the holidays that they have assembled. Travel agency as the name suggests, is responsible for organizing travel. It in fact, is a travel consultant and organizer for the tourist.


6.16 LESSON END ACTIVITY Give a presentation on the star rating of the hotel industry.

6.17 KEYWORDS IATA: International Air Transport Association.

ICAO: International Civil Aviation Organization.

DGCA: Director General of Civil Aviation.

FIA: The Federation of Indian Airline.

6.18 QUESTIONS FOR DISCUSSION 1. What do you mean by the term star rating?

2. Give the classification of the rating system.

3. Describe various types of the rooms.

4. Explain various types of bedding.

5. What do you understand by the credit period?

6. Why is it essential to give training to the travel agent?


CYP 1

1. True

2. True

3. True

4. True

CYP 2

1. benefit

2. 1950s

3. GDS system

6.19 SUGGESTED READINGS VV Vara Parsad, Travel and Tourism Management, Excel Books, New Delhi.

Suddhendu Narayan Mishra, Basics of Tourism Management, Excel Books, New Delhi.

Dr. Dileep M.R., Information Systems in Tourism, Excel Books, New Delhi.

Dyche J, 2003, Customer Relationship Management, The Pearson Education (Singapore), Delhi.

Inkpen G, (1998), Information Technology for Travel and Tourism, II Ed., Longman, Essex, England.

Poon, A, 1993, Tourism, Technology and Competitive Strategies, CAB International, Oxford.

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Aviation – A National Security Asset

UNIT 1

UNIT IV


125


LESSON

7 AVIATION – A NATIONAL SECURITY ASSET

CONTENTS


7.1 Introduction

7.2 Importance of Air Transportation

7.3 Development of Aviation Industry

7.3.1 Airways

7.4 Airline Deregulation

7.4.1 Air Cargo Deregulation

7.4.2 Express Package Delivery

7.4.3 Passenger Deregulation

7.4.4 International Aviation

7.4.5 Effects of Deregulation

7.5 Consequences of 9/11 on the Aviation Industry

7.6 Emergency Funding

7.6.1 American Red Cross

7.6.2 Other Charitable Drives

7.6.3 Emergency Supplies

7.6.4 Memorial Funds

7.7 Protecting Public in Air Transportation

7.7.1 Fighting Back

7.8 Hijacking

7.9 Safety Measures

7.10 International Prospective of Hijacking

7.11 Protection Against Terrorism

7.11.1 Travel to High-Risk Areas

7.12 Let us Sum up


7.14 Keywords





Discuss development of Aviation Industry

Understand Airline Regulation

Explain Emergency of Funding

Describe hijacking and various safety measures

Explain protection against terrorism

7.1 INTRODUCTION Aviation services are vital to the economic and social development of any economy. They are a symbol of opulence and a generator of business in the surrounding region and help the economy to expand business, technology, leisure, recreational and trade. The economics of aviation spell out the importance of modern transport and their needs in the present environment for timely travel and trade. Aviation industry is a modern mode of transport, which started during the early 20th century. A description of aviation industry includes manufacturing, airlines, airport operation, maintenance, air traffic control, metrological and pilots. The aviation industry means different things to different people. Some people only think of the pilots who fly commercial airplanes when they think of aviation. Others include the airports and private planes. Unless you are involved in the aviation industry, the many features of aviation are not readily thought of. Aviation industry doesn’t only mean manufacturing of aircraft, airport operations, and aircraft maintenance but it also influences many industries associated with airline travel. The travel and tour business along with the hotel and restaurant, international trade with exporters and importers, retail industries and many other businesses prosper due to air travel. The term “Aviation” may be mnemonically described as

A AIRPORTS

V VISITORS

I INTER-TRANSFER

A AIRLINES

T TRADE

I INCOME

O OPERATION

N NUCLEUS

7.2 IMPORTANCE OF AIR TRANSPORTATION Today air transportation occupies the similar place in the national economy that railways has century ago. In 1846, on the other hand, the analyst projecting the character of rail transport would have met fewer problems than are currently met in assessing the upcoming of air transportation. Like railways in 1846, air transportation is at a primary phase in its technical development; its market is similarly only partly prefigured in its previous experience. A vigorous technology-new standard of design and of power production, a dynamic working pattern-new administrative and managerial technique to be developed, a lively market-new profitable relation to be tested as reserves in time and decreases in price increase the request for air facilities, all of these and other influences advise that past understanding have enough money no

127


dependable plan for the future. Air transport nowadays, like rail transport a period ago, has proven itself. It is prefigured as the instrument opening a new frontline. Air transport has moved out through its first trial period. It has won a big amount of public reception. It is still mainly a transporter of passengers, of mail, and of high-grade express. It has practiced a very considerable development, but it may still show to be reliant on management monetary support, at least in founding definite new worldwide ways and in transporting facility to less crowded groups within the nation state. Not like the railroads of a time ago, air transporters are focus on a significant amount of governmental regulator; on the other hand, that control is not as comprehensive and wide as the current controls of rail transportation. The Civil Aeronautics Board, in terms of its statutory powers and experience, may be compared with the Interstate Commerce Commission before 192.

7.3 DEVELOPMENT OF AVIATION INDUSTRY

7.3.1 Airways To fly with the birds has been man’s dream since Neolithic times. Centuries of studies and experiments precede the first successful flight. Only until the beginning of the 20th century have we accomplished flight in a heavier-than-air craft. Throughout the past century of evolution, aviation has acquired a responsibility much greater than ever conceived. The utilization spectrum of aviation extends from air combat and high-altitude surveillance to more mundane functions like shipping mail and cargo. With such versatility, aircraft have contributed to augmenting the fast paced lives we already live. Air transport has contributed to expansion of the global economy, leisure activities, and influenced governments and industries to diversify. The portrayal of aviation has impacted our society on three stages: socially, politically and economically. Leonardo da Vinci had begun drawing blueprints of a flying machine in the 15th century. At that time, human flight had never been contemplated, beyond a dream. Practicality worked against Leonardo; however, his thoughts were quite contemporary by today’s standards seeing how his drawings resemble those of modern aircraft. Just over a hundred years ago, the idea of human flight was thought absurd. Flying was something one only did while one was dreaming; but today, one can fly to any destination in the utmost comfort and safety, thanks to the airplane. The first flight took place on December 17, 1903, in Kill Devil Hills near Kitty Hawk, North Carolina. The inventors of ‘The Flyer’, the first heavier-than-air machine that actually flew under its power, were Wilbur and Orville Wright, the Wright brothers. Orville made the first successful flight. Although their “air machine” flew for only twelve seconds, the Wright brothers started a revolution that has greatly affected the entire world.

The time will come when gentlemen, when they are to go on a journey, will call for their wings as regularly as they call for their boots.

– Bishop Wilkens (Glaeser)

With the success of the Wright brothers’ flight, powered flight has undergone renovations that have made everyday flight possible. As time went on, the design and mechanics of the plane greatly advanced, cockpits were built for the pilot and suggestions were made to make the plane a weapon, which became a reality with winged warfare in the First World War. Airplanes are used for a variety of things; travel is only one of many.

Following the fillip given by The Great War, air transportation developed rapidly in the 1920s and 1930s, not always for commercial reasons. Airlines were seen as a means of providing a national airmail service (US) and of establishing long haul air services to colonies and dependencies (UK and France). Airline companies were set up to oversee these national goals, a trend that continued in the post-colonial period of


the 1950s to the 1970s, as many African, Asian and Caribbean nations created their own airline companies while reserving them for specific markets and for specific routes. In advanced economies, the national policies went in the same direction with national markets reserved to national carriers offering stable services, but at high prices. Air transport was then seen as a public service that should be regulated. Thus, the regulatory agencies of governments (e.g., the Civil Aeronautics Board for the United States) decided which routes were to be serviced, as well as the pricing.

In the 1970s, the outlook changed and air transport came to be increasingly seen as just another transport service. Market forces played a major role in fixing air transport prices, and the role of governments was limited to operational and safety regulations. In the United States, the Air Deregulation Act of 1978 put an end to fixed markets and opened the industry to competition. This liberalisation process has spread to many other countries, although with important local distinctions. Many of the former private firms in the US and many former state-owned airlines that were greatly protected and subsidized went bankrupt or were absorbed by larger ones. Many new carriers have emerged, with several low-cost carriers such as Ryan Air and North-West Air in USA and now, Air Deccan in India having achieved industry leadership in this low-cost segment. A key outcome of airline deregulation has been the “Emergence of Hub and Spoke Networks” dominated by a single carrier. Internationally, air transport is still dominated by bilateral agreements between nations (Graham 1995).

The post-World War II period saw a momentous growth of air transportation, as it became the leading mode of international movements of passengers. Air transport has greatly contributed to cutting distances as it is perfectly tailored to carrying freight and passengers rapidly across continents and oceans. However, for safety reasons, the organization of air transport at the international level is strictly regulated. As such, for long haul passenger travel, no other modes compete with air transportation. In many cases, such as in North America, air transportation became a significant mode for domestic movements of passengers. As a result, airspace became progressively more used. They include two major components, one being land-based (takeoffs and landings) and the other air-based, mainly composed of air corridors. These corridors can superimpose themselves to altitudes up to 22,500 feet. The geography of air transport is limited to the use of predetermined corridors. Air transport makes use of air space that theoretically gives it great freedom of route choice. Strategic and political factors influence route choice. For example, the flights of South African Airways were not allowed to over-fly many African nations during the apartheid period, and Cubana Airlines has been routinely prohibited from over-flying the US. By convention, an air space exclusively belongs to the country under it. Air transportation depends on agreements between nations and airline companies. The Chicago Convention of 1944 established the basic geopolitical guidelines of air operations, which became known as the Air Freedom Rights. The most substantial developments of air transportation came in the late 1960s and early 1970s where fast growth in traffic came with the convergence of three processes:

Technical improvements: Technology has significantly extended the range of aircraft that were now capable of crossing the Atlantic (this was first demonstrated by Charles Lindbergh’s solo flight that made him a national hero) without stopping at intermediate places, making trips of up to 18 hours duration. The introduction of the jet engine considerably reduced distances because of greater speeds and improved ranges. Transnational movements are favoured by the usage of polar crossings, which enables a considerable reduction of distances.

Rising affluence: The growth of air transport is highly correlated to income and economic output growth. As the population of developed countries became more affluent, a greater amount of disposable income became available for leisure. Remote destinations and intercontinental tourism (mainly between Europe and North America) experienced significant growth in popularity. International tourism and air

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transportation are thus mutually interdependent, which is characterised by significant elasticities.

Lower airfares: As a consequence of technical improvements, growing demands and competition, airfares have been reduced considerably, making air transportation affordable to the general public. This in turn triggered additional passengers and airfreight demands.

Globalisation: Trade networks established by multinational corporations imply important movements of passengers and freight over the economic space. About 40% of the value of global manufactured exports is carried by air transportation (about 50% of the value of American overseas – non-NAFTA – exports).

A key structural factor in the development of air transport networks is the emergence of major hubs around which air traffic converges. This trend is mainly the result of decisions made by airline companies in the organisation of their services.

7.4 AIRLINE DEREGULATION The Airline Deregulation Act: Today’s aviation industry has transformed since Oct. 24, 1978, when Congress passed the Airline Deregulation Act, employed into law four days far along by President Carter. Formerly, the industry bear a resemblance to a public usefulness, as a government support, the Civil Aeronautics Board (CAB), determined which roads each carrier flew and the charges that it might charge. Nowadays, mainly the market energies the industry, with client demand, total cost of process and airline network competition defining prices and the level of service. 7.4.2 Events Leading to Deregulation. One of those progresses was the arrival of wide-body airplane, which meaningfully amplified air company capacity on numerous ways, making it firmer for airlines to improve the cost of additional seats in the marketplace without regulating valuing. An additional was the OPEC oil embargo in 1973, which controlled the high rising cost of fuel and inflation. These proceedings employed a simple tension on the airlines as traveller request fell in contradiction to a backdrop of increasing capacity and increasing fuel prices. Likewise, the CAB had developed progressively awkward and many observed that customers traveling in intrastate local markets, which were not controlled by the CAB, normally appreciate lower fares. In line with its command to confirm a realistic rate of return for the transporters, the CAB replied by letting transporters to raise tariffs and appropriate series of contracts between the transporters to limit capacity on main continent-wide paths. These movements arises in the mid of a 4-year moratorium on approving new routes, controlling the transporters’ capability to serve particular marketplaces. Nobody changes, which complete flying additionally expensive, was general with the public. Moreover, the CAB action did little to recover the transporters’ monetary situation. The employees of the CAB extended the similar decision in a report give out in 1975. The report said the industry was “indeed competitive, not monopolistic,” and that the CAB itself could no longer justify controls on market entry or public utility-type pricing. On its own, the Board began to loosen its grip on the industry, acting at first under the leadership of John E. Robson and later under Alfred E. Kahn, who became CAB chairman in 1977. Mr Kahn, an economist, persuasively argued that the board should give the airlines greater pricing freedom and easier access to routes.

7.4.1 Air Cargo Deregulation Government took the main law-making steps to airline financial deregulation in November 1977, when it decided cargo transporters the freedom to work on any national road and trust whatsoever the marketplace can accept. Government also acknowledged that, one year after depiction of the bill, the CAB might confirm fresh local load carriers, if they were found “willing, fit, and able.”


7.4.2 Express Package Delivery There was additional significant progress after goods deregulation – the speedy development of abrupt distribution of booklets and small packages. Deregulation produced intense consequences for all features of the goods business, but mainly for fast bundle distribution. Instant distribution of high-value and time-sensitive sets and booklets were activated in the early 1970s. On the other hand, it was deregulation that actually unlocked the door to achievement for such facilities. Deregulation gave fast transporters the working freedom that such high-quality facilities request, consequential intense development over the following decade. In 1994, Government additionally encouraged the growth of this part of the carrier industry by pre-empting state efforts to control intrastate air/truck cargo and air express package consignments.

7.4.3 Passenger Deregulation The same standard of free-market struggle was applied to the passenger side of the industry in the Airline Deregulation Act of 1978. Government directed that local road and rate limitations be phased out over 4 years. It delivered for whole eradication of limitations on paths and new facilities by Dec. 31, 1981, and the termination of all degree regulation by Jan. 1, 1983. The CAB really progressed more rapidly than that. It originated granting new route specialist so freely that in a year of the law’s passageway transporters were able to introduce nearly any local facility they required.

7.4.4 International Aviation Amongst the functions of the CAB shifted to DOT was the power to choose transporters to help limited entry worldwide markets, to apply reasonable competitive practices in both local and global marketplaces, and to review fares for distant air transport. Certain additional worldwide functions, containing studying union suggestions, assessing inter carrier contracts and yielding antitrust protection continue with the DOT.

International aviation facilities are typically ruled by mutual air-transport facility agreements that are assigned among two countries. Bilateral civil air travel discussions connecting the United States are controlled by a group from the Department of State and DOT. Usually, bilateral contracts postulate how many air company from each state might work, what routes may be flown, which cities may be attended, how many times each week an air company might work, how prices might be determined, and whether or not an air company can choice passengers and cargo in that nation and transportation it to a 3rd country.

7.4.5 Effects of Deregulation Increased Competition, Discount Fares and Growth in Air Travel: Improved

opposition unleashed by the Airline Deregulation Act laid reduction in fares and the propagation of new service, which tourists found to be the utmost significant benefit of airline deregulation. The appearance of new airlines, joint with the fast development into fresh marketplaces by numerous of the recognized airlines, lead to domestic charges dropped more than 40% in actual terms since 1978. They have developed so low, that with rare exception national bus and intercity support have developed hard-pressed to participate with the air company that nowadays deliver the means of long-distance common-carrier transport among U.S. cities. With larger opposition on the massive mainstream of routes, wide discounting and more accessible flights, air travel has developed quickly since deregulation.

These days, the overpowering mainstream of U.S. airline travellers has a choice of two or more transporters, with air company challenging strongly in nearly all main marketplaces. The beginning of coinciding national air travel systems resulted in bigger struggle in hundreds of small marketplaces that could not

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support competitive facility in a lined route system. Respectively, the main rise in opposition occurred in insignificant and medium-sized marketplaces.

New Carriers: Deregulation did more than quick a reorganizing of facility by present transporters. It unlocked the air company business to beginners just as Government proposed. In 1978, a complete 43 transporters were specialized for planned facility. Subsequently 1990, the industry has seen a trend of new air company working different industry models extending from hub-and-spoke, low-cost and point-to-point network workers to local transporters working on smaller aircraft for their main network associates.

Networks: A main progress that tracked deregulation was the extensive growth of hub-and-spoke systems, which occurred on a more restricted base previous to 1978. Hubs are advantageously positioned airports used as transference points for travellers and cargo going from one community to other. Airlines timetable sets of flights in and out of their centres a number of times a day. Each bank comprises lots of planes coming in minutes. When on the ground, the joining travellers and shipment from those trips are transported suitably to other airplanes that will take them to their last stop.

Transporters also found that combined hub-and-spoke organizations permitted them to attain much load influences (percentage of seats filled) on trips to and from small places.

Frequent: Flyer Loyalty Programs: Deregulation also generated advertising advances, the most notable being frequent-flyer dependability programs, which reward consumer faithfulness with travel document, cabin advancements, urgency check-in, urgency boarding, living room entrance and other assistances. Most airlines have such a program and the essential elements are the same. When consumers register, they can make ideas for the number of miles flown or the number of journeys taken on the supporting carrier or its partners. These topics are then converted for prizes that comprise tickets and upgrades. The first current frequent-flyer driver was started in May 1981 by American Airlines, monitored rapidly subsequently by packages from United Airlines, Delta Air Lines and British Airways.

A further current growth has been the development of company marketing provisions tied to frequent-flyer dependability programs. As of their wide relationship rolls, frequent-flyer platforms are very gorgeous to nonairline corporations who are ready to pay for the pleasure of contributing in them as promoting partners. Moreover, the air company benefits as its constancy program develops more attractive through its association with associates: it is now probable to make frequent-flyer points by buying non-airline properties and facilities and cash points for non-airline products. Normally, a partner corporation will reimburse the host air company per mile received when a frequent-flyer associate uses the partner’s possessions or service area, but such preparations fluctuate by carrier and partner.

7.5 CONSEQUENCES OF 9/11 ON THE AVIATION INDUSTRY The attack of the terrorist on September 11, 2001 shook the United States in an intense manner, severely disturbing the national awareness of security in U.S. borders. No industry or sector of the economy touched the effects of these proceedings more than the air company. Both the instant response to the occurrences and the long-term consequences has destructively affected the business.

Reduction in Passenger Demand: Straight afterward the terrorist attacks on 9/11, the central government sealed airports, cancelling almost all of flights at a straight


cost to air company. On the other hand, even before the airports reopened, commuters were cautious of air travel, and air company practiced at least a 30% decrease in request throughout the original shock period directly resulting the reviving. Bankruptcy and Large-Scale Layoffs

The week subsequent the attacks, Government put forward a law that formed the Air Transportation Stabilization Board, a body approved to give uncertain air company up to $10 billion in loans. Although this government-funded quantity, numerous noticeable American air company acknowledged insolvency not long after the 9/11 attacks, along with US Airways and United Airlines. Because of the huge monetary losses due to lack of commuter request, cancelled flights and greater than before expenses for safety, even airlines that did not have previous monetary issues were required to negotiate again labour agreements and lay off high quantities of workers, such as the 7,000 workers laid off by American Airlines.

Indirect Effects of New Air Security Procedures: Formed on November 11, 2001, the Transportation Security Administration (TSA) and its renovation of airport safety procedures were one of the greatest instant and long-term significances of the 9/11 attacks. Even though the sharp airport safety events do not have impact on airline processes, the new development has produced a visible separation of airline travellers who choose for dissimilar types of transport or avoid travel completely. An profitable study from Cornell University in 2007 showed that federal baggage screenings brought about a 6 per cent reduction in passenger volume across the board, with a 9 per cent reduction in the nation's busiest airports, totalling a nearly $1 billion loss for the airline industry.

7.6 EMERGENCY FUNDING Helps and relief organisations rose above $657 million in the 3 weeks followed by September 11, 2001 attacks, the huge majority successful to direct survivors and victims' relatives.

In the morning times of September 21, 2001, the Government accepted a bill to help the air company and found a federal account for sufferers. The cost of the typically open-ended account reached $7 billion. Victims of previous terrorist attacks, comprising those connected to al-Qaida, were not comprised in the fund—nor were those who would not submit the right to hold the air company officially accountable.

7.6.1 American Red Cross From the contributions to the Emergency Relief Fund, as of 19 November 2001, the American Red Cross granted 3,165 checks to 2,776 families totalling $54.3 million.

172,612 cases were referred to mental health contacts. The 866-GET INFO number received 29,820 calls. As of 3:10 p.m. November 20, 2001, there had been 1,592,295 blood donations since September 11 Fire Donations took helpful assistances on behalf of firefighters, EMS, and rescue workers.

7.6.2 Other Charitable Drives In the Washington, D.C. area (Baltimore-Washington Metropolitan Area), Giant

Food accessible to match donations completed in-store up to $1 million.

Arista Records re-released singer Whitney Houston's recording of "The Star Spangled Banner" as a charity single following the attacks, with all profits going towards the firefighters and victims of the attacks. Mariah Carey also recorded a charity single, "Never Too Far/Hero Medley", released on the Virgin Records label.

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In Ireland, the National Fire Brigade Committee opened a disaster fund to raise money for the families of those injured or killed in the attacks.

Pop singer Britney Spears donated $1 to the children of firefighters, police officers and EMT's who were killed on 9/11 from every ticket sold from her Dream within a Dream Tour in 2001 and 2002.

7.6.3 Emergency supplies On Thursday and Friday, September 14–15 September 2001, numerous help provisions for the World Trade Center help work were composed from the New York City region, and fell off at the Javits Convention Center or at a performing area at Union Square. By Saturday morning, sufficient provisions were composed.

7.6.4 Memorial funds Many relatives and friends of sufferers have set up commemorative funds and plans to give back to their groups and alter the domain in honour of their beloved lives. For examples:

Beyond the 11th

Heroic Choices (originally the Todd M. Beamer Foundation)

Our Voices Together

September 11th Families for Peaceful Tomorrows

The Peter M. Goodrich Memorial Foundation

7.7 PROTECTING PUBLIC IN AIR TRANSPORTATION September 11, 2001—currently well-known as "9/11"—is a memorable day in the history of the U.S. The terrorists smashed the twin towers of the World Trade Center and brutally spoiled the Pentagon construction by means of hijacked commercial aircrafts as weaponries of massive demolition. Thousands of innocent general public were killed.

A few days after, bio-agent threats from local violence arise. Two packets having anthrax bacteria were sent to the media by the U.S. Postal Service in New Jersey. Two more anthrax mailings projected for U.S. Senators in Washington, D.C. were found on October 9. The anthrax virus leads to certain deaths and contribute to the American people's rising concern about terrorism.

General public in America were injured actually and mentally afterward these attacks of the terrorist.

7.7.1 Fighting Back Later "9/11", the government of U.S., identifying the limitation of its mother country safety, revised the hazards and likely threats from global violence and local violence in the future. The Department of Homeland Security (DHS) was formed by the government so as to look after civil liberties efficiently in contradiction to violence and terrorism.

In 2002, President George W. Bush signed Homeland Security Presidential Directive 3, making the Homeland Security Advisory System (HSAS).

The risk levels from estimated possible fear threats are measured by five danger stages, from Red (severe) down to Green (low condition). Every situation is associated definite responsibilities and duties, and defined in Protective Measures [2]. Federal, state, and local governments, public agencies, and private companies are responsible for training their employees to practice these measures.


Security of public transportation systems

Public train transport schemes have been directed ever since 1990s:

Tokyo underpasses suffered a poison-gas outbreak in 1995 when terrorists put bottles of extremely poisonous Sarin nerve gas in three underpass night train at rush hours. Though Tokyo Emergency Control Centre staff expected fears in fifteen minutes, Sarin gas blowout rapidly at fifteen underpass places (carried there by the trains).

In 1997, Islamic extremists proposed to bomb New York's underpasses. Luckily, this outbreak was stopped by people and police attentiveness.

On March 11, 2004 four traveller trains were demolished by ten detonations that happened in Madrid. The outbreak was the most horrible terrorist public attack in modern Spanish history.

Figure 7.1: The Scene of one of the Madrid bombings

Meanwhile underpass places and airports have constructions with entrances, a useful defensive method is to control arrivals and monitor structures inside and outside. Here are specific tactics:

More noticeable patrolling sniffing dogs, safety staff, and unplanned forms of services.

Recognition and analysis by closed-circuit television coverage, security cameras, and sensors placed at arrivals, which can sense biochemical, biological, and radiological materials.

Crisis phones and fire sensors as well as rapid-response systems to minimalize fatalities and damage.

Release cars and unusual exits to assist removal from unsafe parts.

From September 2003 and May 2004, TSA had registers of 5.9 million barred things from commuters at airports, comprising more than 400 guns along with 1.4 million knives. Hidden centralized detectives told Government that airport screeners of air travel safety were performing arts poorly; however most of these barred articles were trapped by screeners. A college student in fact passed the spot check with barred articles comprising box cutters, and carried them on six viable aircrafts in the seven months of 2003. As a response to the criticism, by the end of 2004, TSA installed Threat Image Protection (TIP) software on all scanners and initiated to assess their performance.

7.8 HIJACKING Aircraft hijacking (also known as skyjacking and sky controlling) is the illegal capture of an aircraft by a single person or a group. In maximum circumstances, the

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pilot is enforced to fly permitting to the guidelines of the hijackers. Infrequently, on the other hand, the hijackers have flown the airliner themselves, for example the September 11 attacks of 2001. In at least one case, a plane was hijacked by the official pilot.

Not like the classic hijackings of land automobiles or liners, skyjacking is not commonly dedicated for theft. Most aircraft hijackers aim to use the commuters as convicts, either for financial redemption or for some governmental or administrative allowance by establishments. Reasons differ from challenging the announcement of certain prisoners (notably IC-814) to emphasising the grievances of a specific community (notably AF 8969).

Hijackings for criminals generally create an equipped deadlock in a period of cooperation between hijackers and establishments, monitored by some method of settlement. Settlements do not constantly see the hijackers' unusual difficulties.

7.9 SAFETY MEASURES You are slightly exhausted, and even though you appreciate seeing the family yet again, you must confess you're happy to be coming back home. You are nearly as dead as your luggage, which is inactive around you irregularly as you are sitting at the door, waiting for the scheduled carrier to begin boarding.

Watch your bags and personal belongings at all times.

Do not receive suites from outsiders. Giving a platform comprising a bomb or some other such item to a foreigner is a favourite trick of a possible hijacker or terrorist.

Report any distrustful actions or persons in the airport or places lot to airport safety.

Checking In

All over again, times have transformed. E-ticket travellers should form with their air company to ensure they will have appropriate certification when they try to check in.

Automated kiosks are available for airlines that have appropriate security measures in place. Interested travellers should check with their airlines.

Be ready to reply any and all queries about your bags. When requested who packed your bags and if you influence left them unattended at any time, think judiciously and answer the queries as reliably as you can. Again, hijackers and terrorists may well use unsuspicious travellers to carry bombs or other unsafe items onto plane.

Be sympathetic and accommodating as screeners ask to hand-search your bags. Safety workers should examine a bag if the x-ray scan cannot control its subjects.

On the Airplane

Attend wisely to the journey attendant's security directions. Ensure to note where the neighbouring exit to your seat is situated. Wear your seat belt, and make sure to boom unattended substances to your flight associated.

What to Wear

Passengers who wear clothing that permits for a variability of activities can decreases their probabilities of serious damages in the improbable event of an emergency.

Dress to cover as much skin as possible.

Synthetics may melt when heated.

Wear clothes made of natural fabrics such as cotton, wool, denim or leather.


Wear clothing that is roomy, and avoid restrictive clothing.

Wear low-heeled, leather or canvas shoes.

In an alternative clearing leave your possessions behind. This prominence comes straight from the DOT and FAA's reports.

Passenger Safety Information

Be able to locate emergency exits both in front and behind you. Count the rows between you and the nearest front and rear exits.

Listen carefully to the safety briefing.

Locate the flotation device.

Make a mental plan of action in case of emergency.

Review the passenger safety card before takeoff and landing.

Exit Row Seating

It's important that you be actually proficient and eager to achieve emergency appointments when seated in emergency or exit rows. If you are not, ask for another seat.



1. With the growing acceptance of logistics and supply chain management are critical business concerns.

2. More investment is needed to develop appropriate managerial skills and competencies.

3. Supply chain managers are a quite varied group and to an extent reflect the disparate origins of the subject in terms of their functional background.

4. Van cock et al (2005) describes managers in the supply chain as 'the critical dimension'.

5. Supply chain managers not only need to be equipped with the skills and knowledge to manage logistics but also they must be relationship managers.

7.10 INTERNATIONAL PROSPECTIVE OF HIJACKING Today even Concorde commuters are enforced to eat their in-flight meals with malleable instruments. In spite of everything, the risk that somebody may turn their dinner knife into a makeshift deadly armament is not a risk any airline is ready to take.

The events in New York and Washington on September 11, 2001 have forever turned the world onto the profits of being safe and protected in the skies.

Air Security - What Must Be Done

Let's begin at the top: the actual finest way to make sure flight security is to ensure the air hub from which you are taking off has the most widespread, dependable, and cultured air safety system in place. Ending the hijacker from receiving on the flat in the first place has to be the highest technique of keeping passengers in the friendly skies.

How significant this issue is can be understood by dealings that happened even after the terrors of that September morning in America.

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English Customs officers examining the men's baggage found they controlled a clothed group of combat knives, stun guns and mace spray.

"Yet these cases had been chequered in at Orlando Sanford Airport in Florida and placed in the hold of an American Trans Air flight," BBC News was understandably quick to report.

Past, Americans, need to see a little secret? Government officers saw all laterally that the state's airport luggage showing system had long been "bad and getting worse," to quote a story printed by the New York Times in late November 2001.

Screeners missed 20% of the clear pictures of bombs or guns ran over baggage selection machines throughout safety examinations back in the late 1980s. Their presentation has only fallen meanwhile, though officers won't say by how much: "the figure has since been chosen sensitive security info," according to the Times, an attractive reliable paper on these kinds of things.

Trends begin

Even though the state of carrier security is of sequence the main means to battle the evil of carrier hijackings, we must face the possibility that no amount of safety can make for every probable attack. The human mind is remarkably adaptable, and has shown a breathtaking imagination when it originates to the numerous ways one can damage others. If a hijacker is someway still capable to grab a plane, what should you do? How can you safeguard that you – and hopefully everybody else on board - can live such an event as a hijacking?

When you are making for your trip, think to pack smart and pack safe. Here's a list of substances you cannot take on your individual or in carry-on luggage:

All cutting and puncturing instruments. This includes pocketknives, carpet knives and box cutters, ice picks, straight razors, metal scissors, and metal nail files.

Athletic equipment that could be used as a weapon, such as baseball/softball bats, golf clubs, pool cues, ski poles, and hockey sticks.

Corkscrews.

Fireworks – signal flares, sparklers, or other explosives.

Flammable liquids or solids – fuel, paints, lighter refills, matches.

Household items – drain cleaners and solvents.

Knives of any length, composition, or description.

Other banned hazardous materials include: gasoline-powered tools, wet-cell batteries, camping equipment with fuel, dry ice or radioactive materials (except limited quantities), poisons, and infectious substances.

Pressure containers – spray cans, butane fuel, scuba tanks, propane tanks, CO2 cartridges, and self-inflating rafts.

Remember, you must declare hazardous materials to airlines, express package carriers or the Postal Service. Violations carry a civil penalty of up to $27,500 for each occurrence and, in appropriate cases, a criminal penalty of up to $500,000 and/or up to five years imprisonment

Weapons – For the most obvious reasons. Firearms, ammunition, gunpowder, mace, tear gas, or pepper spray.

7.11 PROTECTION AGAINST TERRORISM Terrorist acts arise at accidental and variably, making it unbearable to defend one unconditionally. The first and best defense is to escape transportable to unsafe spaces


where there has been an insistent greatest of terrorist occurrences or hijacking. The huge mainstreams of distant conditions have good archives of preserving public order and guarding residents and companies within their borders from violence.

Most terrorist attacks are the consequence of extended and cautious preparation. Just like a car thief will mainly concerned to an unlocked car with the key in the start, terrorists are observing defenseless, simply available objectives that trail expectable designs. The probabilities that a tourist, traveling with an unpublished package or program, would be the prey of terrorism are slight. The subsequent indicators may help you escape becoming an objective of chance. These defences may deliver some degree of defence, and can serve as applied and psychological preventions to would-be terrorists.

Plan direct air travel if possible and avoid stops in high-risk airports or regions.

Think about other choices for travel, like trains.

Be alert of what you discuss with foreigners or what may be heard by others.

Try to reduce the time spent in the public area of an airport, which is a less endangered area.

Move quickly from the check-in counter to the safeguarded areas. On arrival, leave the airport as soon as possible.

As much as possible, avoid luggage identifiers, dress and behaviour which may recognize you as an American.

Keep an eye out for doubtful uncontrolled packages or briefcases. Report them to airport safety or other authorities and leave the area quickly.

Avoid obvious terrorist targets such as places where Americans and Westerners are known to congregate.

7.11.1 Travel to High-Risk Areas If you have to travel in a region where there has been a past of terrorist attacks or kidnapping, remember these points:

Avoid predictable times and routes of travel and report any suspicious activity to local police, and the nearest U.S. embassy or consulate.

Be sure of the identity of visitors before opening the door of your hotel room. Don't meet strangers at unknown or remote locations.

Check for loose wires or other suspicious activity on or around an aircraft, etc.

Compare the face of the driver with the one posted on his or her license.

Discuss with your family what they would do in the event of an emergency. Make sure your affairs are in order before leaving home.

Formulate a plan of action for what you will do if a bomb explodes or there is gunfire.

If possible, travel with others.

If you are ever in a situation where somebody starts shooting, drop to the floor or get down as low as possible. Don't move until you are sure the danger has passed. If possible, shield yourself behind or under a solid object. If you must move, crawl on your stomach.

Keep a mental note of safe havens, such as police stations, hotels, hospitals.

Leave no personal or business papers in your hotel room.

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Let someone you trust know what your travel plans are. Keep them informed if you change your plans.

Refuse unexpected packages.

Register with the U.S. embassy or consulate upon arrival.

Remain friendly but be cautious about discussing personal matters, your itinerary or program.

Select your own taxi cabs at random. Don't take a vehicle that is not clearly identified as a taxi.

Watch for people following you or "loiterers" observing your comings and goings.


Fill in the banks:

1. A Supply chain management implies a ‘……………….’ organisational orientation rather than a ‘……………….’ one.

2. Traditional businesses are organised on ………………. lines with strong hierarchical underpinnings.

3. The managers will move ………………. through the hierarchy as they demonstrate increasing capability in that narrow functional area.

4. Christopher's framework comprises both management skills and ……………….

5. The skills requirements for future supply chain managers are ……………….

7.12 LET US SUM UP Airways or Aviation industry has grown tremendously with the advancement of the technology. But everything has some benefits and drawback. This is the widely used industry for daily transportation of the goods, passengers and for the trading. But due to some uncivilised people it is facing the threats of the hijacking, bomb blast and many other problems. In order to avoid the problems like hijacking one should take the safety measures that are mentioned in the lesson and should be cautious during the transportation in the airlines.

7.13 LESSON END ACTIVITY Have a discussion in your class on the topic of 9/11.



Tourism: The activities of persons travelling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business, and other purposes.




World Tourism Organization (WTO): It is the major intergovernmental body concerned with tourism.

7.15 QUESTIONS FOR DISCUSSION 1. Write a short note on the importance of air transportation in the developing

countries.

2. Explain the development of the aviation industry.

3. What do you understand by the deregulation of the aviation industry?

4. Write the consequences of the 9/11 attack on the world.

5. What is air hijacking and what are its safety measures?


CYP 1

1. True

2. True

3. True

4. False

5. True

CYP 2

1. Horizontal, vertical

2. Functional

3. Upwards

4. competencies

5. wide


Kumar. Prasanna (2010), Marketing Of Hospitality & Tourism Services. Tata McGraw Hill Education Pvt. Ltd.

Harry A. Kinnison, Aviation Maintenance Management, Mc Graw Hill

Alexender T. Wells Clarence, Commercial Aviation Safety

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Conferences on Air LawLESSON

8 CONFERENCES ON AIR LAW

CONTENTS


8.1 Introduction

8.2 Diplomatic Conference on the Air Law

8.2.1 Main Topics of Discussion

8.3 Ministerial Conference on Terrorism

8.3.1 Adopting Internal Measures to Prevent Terrorism

8.3.2 Deterrence, Prosecution, and Punishment of Terrorists

8.3.3 Asylum, Borders, and Travel Documents

8.3.4 Strengthening International Cooperation to Fight Terrorism

8.4 Financing of Terrorism

8.4.1 Money Laundering

8.4.2 Suspicious Activity

8.4.3 Bank Processes

8.5 United Nation ICAO/ECAC

8.6 Let us Sum up


8.8 Keywords




Discuss the various conferences that have occurred in the world to fight against terrorism

Describe bank guarantee

Identify the financing of the terrorism

8.1 INTRODUCTION Various measures are being taken by the world in order to avoid the terrorism in the world and to make the world as the most safest place to live. America along with India and Russia has taken various measure to stop or avoid terror after 9/11 the


government of the world are so cautious for the terrorist attack. The advancement in the technology has also helped the world to stop or reduce the terror attack like GDS and many other techniques. In this lesson we will learn that measure and the government is taking to avoid the terror attacks how the world has become a unit of fight against the war of terrorism.

8.2 DIPLOMATIC CONFERENCE ON THE AIR LAW Asia is the fastest developing air travel market across the world, and India is an essential driver of that strong growth. Evidence and information about laws and guidelines interrelated to air travel and space actions are vital to take advantage of on the economic prospects being formed in this part of the world. It is in this context that the International Foundation for Aviation, Aerospace and Development (IFFAAD), the Institute of Air and Space Law of McGill University, and National Law University of New Delhi, India have planned and are pleased to announce the opening of the Call for Papers for the Third Annual International Conference on Law and Regulation of Air Transport and Space Applications.

The International Foundation for Aviation, Aerospace and Development, placed in Montreal with the host chapter in Delhi, works to enable the conversation of ideas and endorse the public interest in problems relevant to the growth of the worldwide aviation industry as well as space applications. The Institute of Air and Space Law of McGill University in Montreal, Canada offers the world’s foremost educational and research program in Air and Space Law. Partying its 60th anniversary this year, the Institute has a rich past of research, allowance, and educational packages intended to offer the best education offered to air and space legal representative anywhere. The National Law University in New Delhi, India, established in 2008, is committed to forming a legal organization within India to competitively formulate lawyers for global legal jobs as agents of change for India.

International Conference is considerately designed to be useful to working legal officers working for airlines, lawyers, and governmental aviation civil ministries and managers, airport managers, as well law teachers and students. It will form consciousness of developing subjects deliver networking prospects and encourage cooperative business appointments between foreign and Indian air travel and space industries. The program will comprise requested assistances from leading specialists in the fields plus performances selected on the basis of summaries submitted in response to this Call. We would raise the value of it if you would sympathetic pass on this evidence to others within your organisation who may also be absorbed in submitting an abstract. Announcers of papers will enjoy free registering, place and meals for the days of the Conference.

8.2.1 Main Topics of Discussion Aircraft Manufacturer Liability

Airline Liability and Insurance

Aviation Safety

Aviation Security

Competition Law and Airline Alliances

Emerging Environmental Issues

Emerging Issues for Air Navigation Services and Liability

Emerging Issues for Airports and their Economic Regulation

Emerging Issues in Commercial Space Applications: Satellite Communications, Navigation, and Remote Sensing

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Conferences on Air Law Financing of, and Foreign Investment in, Aircraft, Airlines, Airports, Ground

Handling, MRO, Manufacturing

Government Regulation, Bilateral, and the Liberalization of Air Transport

Regional Aviation Infrastructure

Space Security: ASAT’s and Weaponization of Space, On-orbit Servicing, Dual Use, Space Debris

8.3 MINISTERIAL CONFERENCE ON TERRORISM Ministerial conference on the Terrorism has below points so as to increase the Aviation industry.

8.3.1 Adopting Internal Measures to Prevent Terrorism Improving counter-terrorism cooperation and capabilities:

We call on all States to:

Strengthen internal cooperation among all government agencies and services concerned with different aspects of counter-terrorism.

Expand working out of workers associated with counter-terrorism to avoid all methods of terrorist action, comprising those using chemical, radioactive, biological, or toxic substances.

In line with the pains approved out in the fields of air and maritime transport and in view of general terrorist attacks on types of mass ground transport, like bus transport systems, railway, mention that transport security executives of concerned States immediately undertake discussions to recover the competence of governments to avoid, examine, and respond to terrorist attacks on means of public transport, and to work together with other commands in this respect. These discussions should comprise calibration of passenger and cargo manifests and acceptance of standard means of classifying vehicles to aid soundings of terrorist bombings.

Quicken research and progress of methods of detection of explosives and other damaging constituents that can cause death or damage, and commence conferences on the development of values for marking explosives in order to classify their origin in post-blast soundings, and promote collaboration where suitable.

8.3.2 Deterrence, Prosecution, and Punishment of Terrorists


When adequate explanation exists permitting to national laws, explore the manipulation of organizations, groups, or relations, comprising those with generous, social, or cultural goals, by terrorist using them as a protection for their own events.

Note the danger of terrorist consuming electronic or wire communications systems and linkages to carry out illegal actions and the need to find means, reliable with national law, to stop such criminality.

Adopt real national laws and guidelines comprising trade panels to administer the production, trading, transportation, and export of firearms, explosives, or any device planned to cause ferocious injury, damage, or destruction in order to stop their use for terrorists' acts.


Take stepladders within their control to directly review and alter as essential their domestic anti-terrorist legislation to make sure, inter alia, that terrorists' acts are established as serious criminal offences and that the importance of terrorists' acts is accordingly replicated in the decree helped.

Bring to integrity any individual suspect of participation in the planning, research, or performance of terrorist acts or contribution in supportive terrorist acts.

Abstain from giving any form of provision, whether energetic or inactive, to administrations or persons complicated in terrorist activity.

Accelerate discussion, in suitable bilateral or multifaceted fore, on the use of encryption that lets, when essential, legal direction admittance to data and transportations in order, inter alia, to stop or investigate acts of terrorism, while shielding the privacy of genuine communications.

8.3.3 Asylum, Borders, and Travel Documents


Take strong actions to stop the programme of terrorist persons or groups by reinforcement border controls and controls on issuance of individuality papers and travel booklets, and through measures in place of preventing counterfeiting, forgery, or use of false papers.

While knowing that radical place of safety and the admission of refugees are genuine rights preserved in global law, ensure that such a correct action should not be taken benefit of for terrorist determinations, and seek extra global means to speak the subject of refugees and asylum seekers who plan, fund, or commit terrorist acts.

8.3.4 Strengthening International Cooperation to Fight Terrorism Expanding international treaties and other arrangements


Join global agreements and procedures designed to struggle terrorism by the year 2000; pass domestic legislation essential to tool them; affirm or lengthen the capability of their judges to bring to test the writers of terrorist actions; and, if required, offer provision and help to other administrations for these purposes.

Develop if essential, specially by incoming into mutual and multidimensional arrangements, common legitimate help actions aimed at facilitating and speedy investigations and gathering signal, as well as collaboration between law administration agencies in order to stop and detect terrorist acts.

In cases where a terrorist action occurs in numerous countries, States with authority should organize their examinations and the use of joint assistance methods in a planned manner so as to be more effective in the fight compared to terrorist groups.

Grow extradition arrangements, as required, in order to make sure that those answerable for terrorist acts are carried to justice; and think through the possibility of expulsion even in the absence of a treaty.

Encourage the attention and growth of a worldwide settlement on terrorist terror campaign or other terrorist acts making combined danger for persons, to the degree that the present multifaceted counter-terrorism conventions do not give for cooperation in these areas.

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Conferences on Air Law Examine, also, the need and possibility of enhancing present global instruments

and preparations to address other terrorist fears and accept new instruments as desirable.

Accelerate in the International Civil Aviation Organization (ICAO) discussions to found unchanging and strict worldwide values for bomb recognition and the on-going discussions to elaborate and adopt extra amplified security methods at airports, and urge early execution of screening actions and all other ICAO values previously agreed upon.

We mention to States Parties to the Biological Weapons Convention to authorize at the upcoming Review Conference their assurance to make sure, through acceptance of national measures, the actual fulfilment of their responsibilities under the agreement to take any essential measures to forbid and stop the growth, production, stockpiling, acquisition, or retention of such arms within their territory, under their influence, or under their control everywhere, in order, inter alia, to exclude use of those weapons for terrorist determinations.

Terrorist fund raising:


Stop and take steps to respond, through suitable domestic methods, the backing of terrorists and terrorist organisations, whether such financing is straight or indirect through administrations which also have, or claim to have, generous, social, or national goals, or which are also involved in illegal events like illegal weapons trading, drug dealing, and racketeering. These local actions may comprise, where suitable, checking and regulator of cash transfers and bank release actions.

Strengthen evidence exchange regarding international actions of reserves sent from one nation or established in another nation and projected for individuals, relatives, or groups likely to carry out or support terrorist processes.

Consider, where suitable, accepting controlling events in order to stop actions of funds supposed to be envisioned for terrorist establishments, without delaying in any way the self-determination of genuine capital movements.

Improving information exchange on terrorism:


Simplify interchange of evidence and the communication of lawful requirements through founding central establishments so prearranged as to deliver quick co-ordination of needs, it being assumed that those central establishments would not be the single network for joint help among States. Direct exchanges of information among competent agencies should be encouraged.

Strengthen interchange of basic info regarding people or organizations supposed of terrorist-linked events, in specific on their construction, their modus operandi, and their message systems so as to stop terrorist actions.

Intensify interchange of working evidence, particularly as regards:

the actions and movements of persons or groups suspected of belonging to or being connected with terrorist networks,

the threat of new types of terrorist activities including those using chemical, biological, or nuclear materials and toxic substances,

the use of communications technologies by terrorist groups,

traffic in arms, explosives, or sensitive materials,

travel documents suspected of being forgeries or falsified,


Find methods of quickening these interactions of figures and making them further straight, while at the same time conserving their privacy in conventionality with the laws and regulations of the State providing the information.

8.4 FINANCING OF TERRORISM Terrorism financing has come into attention in the United States after the terrorist assaults in the United States on the 9/11 in 2001. The US Government accepted the USA Patriot Act to, among other details, effort preventing the financing of terrorism (CFT) and anti-money laundering (AML) ensuring these were specified some sort of tolerable emphasis by US monetary organisations. The act also had extraterritorial influence and non-US banks taking correspondent banking books or doing business with US banks had to upgrade their AML/CFT processes. The Patriot Act has made an excessive contract of disagreement in the United States as its representation.

Originally the emphasis of CFT efforts was on non-profit-making groups, unregistered cash facilities businesses (MSBs) and the criminalization of the action itself. The Financial Action Task Force on Money Laundering (FATF) made 9 special references for CFT. These nine references have become the worldwide standard for CFT and their usefulness is measured almost always in combination with AML.

The FATF Blacklist (the NCCT list) device was used to force countries to take about transformation.

8.4.1 Money Laundering Often linked in legislation and regulation, terrorism financing and money laundering are conceptual opposites. Money laundering is the process where cash raised from criminal activities is made to look legitimate for re-integration into the financial system, whereas terrorism financing cares little about the source of the funds, but it is what the funds are to be used for that defines its scope.

An detailed training of the synergetic association between prearranged corruption and terrorist organisations noticed within the United States of America and additional parts of the realm mentioned to as crime-terror connection points has been available in the scientific literature. The Perri, Lichtenwald and MacKenzie article highlights the position of multi-agency employed groups and the implements that can be used to classify, penetrate, and disassemble organisations working beside the crime-terror connecting points.

Terrorists use low worth but high capacity scam action to fund their operations. Paramilitary forces in Northern Ireland are using genuine trades such as pubs, hotels, and taxi operators to wash money and account governmental actions. Even away from Ireland, terrorists are controlling front-end trades particularly cash-intensive trades comprising in some cases money facilities trades to move duties. Wholesale cash trafficking and assignment through cash-intensive industries is one typology. They are currently also affecting duties by the new operational payment organisations. They also use trade related arrangements to wash duties. However, the older schemes have not given way. Terrorists also last to change duties through MSBs/Hawalas, and through global ATM businesses. Donations also last to be used in countries wherever controls are not so rigid.

8.4.2 Suspicious Activity Operation Green Quest, a US multi-agency job power set up in October 2001 with the certified purpose of answering terrorism financing reflects the subsequent patterns of action as pointers of the group and program of reserves that could be related with terrorism financing:

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Conferences on Air Law Account dealings that are unreliable with past payments or withdrawals like

cheques, cash, wire transfers, etc.

Industries linking a high volume of incoming or leaving wire transmissions, with no rational or apparent purpose that originate from, go to, or transfer through places of anxiety, that is allowed countries, non-cooperative nations and sympathizer states.

Unexplainable clearance or arbitration of third-party cheques and their credits in remote bank accounts.

Organising at multiple divisions or the same division with several activities.

Commercial layering, assignments among bank accounts of connected objects or assistances for no apparent reasons.

Wire transferals by generous organisations to corporations positioned in republics known to be bank or tax havens.

Lack of obvious fund raising action, for instance a deficiency of small cheques or typical assistances associated with generous bank deposits.

Using numerous books of account to gather funds that are then transported to the same foreign beneficiaries.

Trades with no rational financial determination, that is, no connation among the action of the group and other parties involved in the operation.

Intersecting commercial officers, bank parties, or other recognisable comparisons related with statements, orientations and financial activities.

Cash withdrawing arrangements in which payments in the US associate straight with ATM taking out in republics of concern. Reverse dealings of this nature are also suspicious.

Allotting cheques, cash orders or other financial instruments, habitually totaled successively, to the same person or business, or to a person or business whose name is suggested correspondingly.

It would be challenging to regulate by such action alone whether the specific act was linked to terrorism or to organised crime. Consequently, these actions must be inspected in perspective with other issues so as to control a violence financing connection. Humble dealings can be start to be doubtful and money washing resulting from violence will classically include examples in which unassuming jobs had been achieved illuminating links using other countries comprising FATF blacklisted countries. Certain of the clienteles may have police records, mainly for transferring in narcotics and weaponries and may be related with distant terrorist sets. The reserves may have stimulated through a state sponsor of terrorism or a republic where there is a problem of terrorism. A link with a Politically Exposed Person (PEP) can eventually tie up to a terrorism financing business. A help may be a connection in the operation. Accounts (especially student) that only accept periodic credits reserved via ATM over two months and are inactive at other times could specify that they are suitable active to make for an attack.

8.4.3 Bank Processes Along with usual AML panels, banks must emphasis on the CFT angle, via knowledge resulting from the wide database of case studies now accessible. Banks must emphasis on not just name matching with authorisations files but also with additional know your customer (KYC) high-risk files of decent third party sellers. They must use skills like connection examination to found second and third level relations that classify dealings as potentially apprehensive from a CFT viewpoint. Emphasis on avoiding identity theft is an essential part of any CFT package.


Recognition rules planned to capture the doubtful activity list assumed above, should be estimated. Panels out of the deal observing process, for instance, account starts by groups of persons, are also significant to watch for. Any bank i.e. used for terrorism financing will suffer terrific reputational destruction and also an actual business influence in terms of share price and exclusive fines. To protect in contradiction of this, financial institutions acquisition anti-money washing software from corporations for example Lexis Nexis and C6 along with databases of high risk individuals and organisations developed by companies such as World Compliance and C6.



1. Recognition rules planned to capture the doubtful activity list assumed above, should be estimated.

2. Any bank i.e. used for terrorism financing will suffer terrific reputational destruction and also an actual business influence in terms of share price and exclusive fines.

3. It would be challenging to regulate by such action alone whether the specific act was linked to terrorism or to organised crime.

8.5 UNITED NATION ICAO/ECAC Three U.S. governmental organizations are enthusiastically involved in air travel safety programmes from side to side co-operation and help. The U.S. Trade and Development Agency (USTDA) have organised two-sided contracts with China, India and Brazil for official co-operation in the air travel sector, and have delivered funding for air travel welfare initiatives. In China, the USTDA is helping air travel workspaces to offer technical, managerial, safety and operational training for officers from the Civil Aviation Administration of China (CAAC) and for airport administrators. These workspaces let governments from U.S. and China to cooperate on policy, principles and best practices.

The USTDA also gave an allowance to the Airports Authority of India (AAI) for the setting up and documentation of a ground-based increase system at Chennai International Airport. In Brazil, the USTDA is backing the research of a chief proposal for the growth of a local airport system, comprising reserves for runway roadway, air map reading equipment and emergency response.

The Department of Transportation, through the Safe Skies for Africa inventiveness, providing backing to the Federal Aviation Administration (FAA) for an airstrip security and airport roadway upkeep seminar for sub-Saharan African countries, hosted by Nigeria.

The Safe Skies for Africa programme is also backing a multi-year flight weathercasting distance-learning scheme for Africa that will support aeronautical forecasters meet the future values set by ICAO and the World Meteorological Organisation (WMO).

The FAA endures to deliver help to the Partner States of the East African Community, and has posted two FAA aviation safety examiners in Entebbe, Uganda, to deliver know-how and on-the-job-training.


Fill in the blanks:

1. The Safe Skies for Africa programme is also backing a multi-year flight weathercasting distance-learning scheme for Africa that will support

Contd…

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Conferences on Air Lawaeronautical forecasters meet the future values set by ICAO and ………………….

2. In Brazil, the …………………. is backing the research of a chief proposal for the growth of a local airport system, comprising reserves for runway roadway, air map reading equipment and emergency response.

3. It would be …………………. to regulate by such action alone whether the specific act was linked to terrorism or to organised crime.

8.6 LET US SUM UP Government is taking various steps or measures to reduce as much as they can the threats that are facing by the travellers in the aviation industry. The governments of the whole world are coming together in order to avoid all the problems and to safeguard the commuters so that people feel that they are safe in the airplane and can have a threat free journey.

8.7 LESSON END ACTIVITY Write down the measures taken by the Indian government to avoid any mishap in airlines like hijacking.

8.8 KEYWORDS Gross Domestic Product: Gross domestic product (GDP) is the market value of all officially recognised final goods and services produced within a country in a year, or other given period of time.

National Development: National development refers to the ability of a country or countries to improve the social welfare of the people, for example, by providing social amenities like good education, infrastructure, medical care and social services.

Host Country: A nation in which representatives or organisations of another state are present because of government invitation and/or international agreement.

ICAO: International Civil Aviation Organization.

DGCA: Director General of Civil Aviation.

8.9 QUESTIONS FOR DISCUSSION 1. What are the challenges that are faced by the aviation industry?

2. What are the measures that are taken by the government to control the threats faced by the aviation industry?

3. Give a brief overview of the ministerial conference on the terrorism.

4. Discuss the diplomatic conference on the air law.


CYP 1

1. True

2. True

3. True

Contd…


CYP 2

1. the World Meteorological Organization (WMO)

2. USTDA

3. challenging

8.10 SUGGESTED READINGS Harry A. Kinnison, Aviation Maintenance Management, McGraw Hill

S. Patankar and James C. Taylor Aviation and Airport Security; Terrorism and safety concerns, CRC Press

IATA Manual on Diploma in Travel and Tourism Management, Ashgate Publishing Ltd.

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Hijacking

UNIT 1

UNIT V


153

HijackingLESSON

9 HIJACKING

CONTENTS


9.1 Introduction

9.2 Aircraft as Missile: Early Hijacking

9.2.1 The Eiffel Tower

9.2.2 Bojinka

9.2.3 World Trade Centre

9.3 Terrorist Hijacking Spread

9.4 Initial Public Response on Hijacking

9.5 Cockpit Doors

9.6 Profiles of Hijackers

9.7 Sky Marshal Program/Federal Air Marshal Program

9.8 Let us Sum up


9.10 Keywords




Define hijacking

Understand the effects of hijacking

Know the consequence of 9/11 hijacking

9.1 INTRODUCTION Air travel is the development, design, production, process, and use of aircraft, particularly heavier than air airplane. The term "Aviation" was invented by French writer and former naval officer Gabriel La Landelle in 1873, from the verb "avier" (synonymous flying), itself derived from the Latin word "avis" ("bird") and the suffix "-ation".

Aircraft hijacking is an illegal accomplishment where people grasp control of an aircraft. It is typically well-thought-out as an action of violence and transfers rigid punishments in law. Also occasionally well-known as skyjacking, it poses a severe danger to the security of societies on board the airliner, along with people on the


ground. The aim of airplane hijacking is typically danger and fear, rather than robbery of the aircraft.

9.2 AIRCRAFT AS MISSILE: EARLY HIJACKING

9.2.1 The Eiffel Tower In 1994 an Algerian group hijacked an airliner, probably to smash it into the Eiffel tower. The aircraft was hijacked in Algiers. But as there is less distance from Algiers to Paris than the space through the United States, there may be less time to interrupt it than is offered to interrupt an aeroplane hijacked in this nation state. It would, consequently, not take many thoughts to handover the situation to the United States. The Algerian hijackers had located explosives in important parts of the cabin. Though, there was certain assumption in the mass media grounded on intelligences from a commuter on-board the plane that the hijackers had deliberated crashing it into the Eiffel Tower.

The incident is described as follows:

The captive drama instigated on Christmas Eve as Air France Flight 8969 ready for a flight 11:15 a.m. departure for Paris. Most of the 227 travellers had settled on their chairs in a nearly happy mood, as they observed joining family and friends for the holidays. The entering of four armed men in blue attires with Air Algerie identification marks caused no alarm. Elucidating that they were security agents, the men continued to check the commuters' passports. Then they all of a sudden locked the doors. It was criminal they screamed, 'Allah is great!' “recalled a 40-year-old Algerian-born mechanic now living in France. Three men went in the cockpit; the fourth controlled the people with his Kalashnikov. No one budged. Then the waiting started.”

This state activated as a takeover on the ground, formerly, which is everywhere the plane continued for more than a day. When the plane did depart, it was underneath the control of the regular crew. The hijackers were misleading into authorising a landing in Marseilles, in the appearance of a refuelling stop, where the airplane was captured and the criminals freed.

This is obviously a very dissimilar circumstance to 9/11. The hijack was of the unoriginal type; the terrorists were not ever going to fly the plane; interruption or firing down the aeroplane wasn’t a subject at any time.

In place of waiting for a detective to realize a terrorist conspiracy and pass these facts on to the suitable establishments, the aviation security scheme would be planned to stop acts and prevent pressures. Failure to implement such a scheme can have dreadful consequences. The December 1994 hijacking of an Air France flight from Algeria is a case in point. Anyone who has checked the obverse page of a main newspaper in 1994 would remember that Algeria has been wracked for a number of years by a trend of awful terrorist violence.

Plentiful of this ferocity has been approved out by fundamental Islamic groups determined on expelling a worldly government. Anyhow the violence, the French accepted the old-style method to aviation safety by depending on Algerian establishments to preserve the suitable level of security. Four hijackers connected with the Armed Islamic Group, disguised as airport safety executives, grabbed over the Air France crew. After assassination of three commuters, comprising a French citizen, the hijackers were permitted to take off and then land in Marseilles, France on December 26. As the condition sustained to weaken French commandos captured the airplane, released the commuters and crew, and killed the hijackers. The world was horrified when it cultured the hijackers had employed explosives on board the aero plane, wished to blow it up in the air above Paris. Only in the aftermath of the hijacking and

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Hijackingnarrowly prevented mid-air kamikaze attack on Paris did French safety executives make tighter security on flights between Algeria and France and declare their right to observe Algerian and the airline compliance.

9.2.2 Bojinka In early 1995, Abdul Hakim Murad Ramzi Yousef’s accomplice in the Manila air company bombing plot said Philippine establishments that he and Yousef had conversed flying an airplane into CIA headquarters”. This is occasionally estimated as however it cancels NORAD all on its own, though, as we've seen, Myers told the 9/11 Commission he was aware of the plot:

Gen. Myers: I think it was rejected, and General Eberhart can be clearer on this, I don't think it was by the commander, I think it was by the planning group that was meeting because it did not fit the scenario at the time. But, the use of aircraft as a weapon, as a missile, other than World War II and the Kamikaze situation, I'm not aware, and I've tried to research this, and the best information I get, I am not aware that an aircraft has ever been used as a weapon. Now, there have been landings on the White House lawn, there was a landing in Red Square, there have been lots of stupid things. There was talk about crashing airplanes into the CIA. But, in most of that threat reporting leading up to 9/11, it was hijacking an airplane and in the normal hijack mode, not in the mode of a weapon.

Nowadays, there were certain talks about in post hijack circumstances where they spoke to about persons over the difficulties were completed that they were successful to crash, one example, into the Eiffel Tower, but even the exertion that was completed and the hijackings that were premeditated for the Philippines, which is a well-known plan, they prearranged to hijack the aircrafts and setback them up mainly.

In addition, this story doesn’t fully satisfy Dr Griffin’s condition for denying NORAD. It surely comprised suicide pilots, but how the additional stage might have explained isn't completely clear. The option of hijacking profitable aircrafts was reported later:

"Murad narrated to us about a plan by the Ramzi cell in the continental U.S. to hijack a commercial plane and ram it into the CIA headquarters in Langley, Virginia, and also the Pentagon," said Rodolfo Mendoza, a Philippine intelligence investigator.

Philippine investigators also found evidence targeting commercial towers in San Francisco, Chicago and New York City.

However, this second phase may also not have involved hijacking, or commercial jets, at all:

The Bojinka process named for a second, possibly even further determined phase, as interrogators learned when they pushed Murad around his pilot's license. All those ages in aircraft school, he admitted, had been in grounding for a recklessness mission. There were minor targets the terrorists desired hit: U.S. Congress, the White House, the Pentagon and possibly some towers. The only problematic, Murad protested, was that they wanted more proficient pilots to transport out the plot.

9.2.3 World Trade Centre In August of 1998, the intelligence public had established figures that a group of Libyans wanted to bang an airplane into the World Trade Center (344-345). The Command does not clearly say that the airplane would be hijacked from within the United States, but it also does not openly say otherwise.

This isn’t accurately a whole opinion of the claim. The full judgement in the report, for example, simply says "In August of the same year, the intellect public had established info that a group of Libyans wanted to smash a plane into the World Trade


Center". No reference of hijacking at this time. A note from the 9/11 Commission report tells us more:

For the August report, see Intelligence report, "Terrorism: Alleged Threat by Arab Terrorists to Attack the World Trade Center in New York," Aug. 12, 1998. An FAA civil aviation security official supposed the strategy was unlikely as Libyan airplanes were vital to operate within boundaries restrictions and the Libyans did not retain aircraft with the essential range to brand good on the threat. Jack S. interview (June 13, 2004). On September 30, 1999, the FAA shut the file on the August report after examination could not verify the report, and the source's trustworthiness was believed suspect. Dr Griffin pays no attention to the discovery that this claim might not be supported, and the source wasn’t believed to be reliable. This example fails Dr Griffin’s test, then, as it isn’t essentially about hijacking, or profitable aircrafts, or trips that created within the United States. It does comprise the danger of using airplanes as arms, but this is reduced by the fact that it could not be supported. And if the source wasn’t believed trustworthy then it’s hard to see why NORAD (or anyone else) should have taken this particularly seriously.

9.3 TERRORIST HIJACKING SPREAD Terrorism, the regular use of strength or threat of ferocity by prearranged sets to accomplish particular goals, which may be administrative, spiritual, or philosophical, to generate fear. Numerous terrorists are possessed by new actions that pursue to carry a change in the government or overthrowing the administration to attain freedom. Some seek to gain courtesy and provision for definite political attitudes or religious ideas. Terrorist actions may be absorbed contrary to individuals, organizations, or governments who are in contradiction of their reasons. Terrorists typically snatch or kill commercial managers, diplomats, judges, police, and political leaders.

Places of devotion for example mosques, churches, synagogues, buses, trains, airplanes, and nightclubs are also criticized by terrorists. Techniques used comprise bombings, releasing harmful chemicals murder, torture, kidnapping, hijacking, and biological materials and damage of property. The fresher approaches comprise computer grounded terrorism and weapons of mass damage. In a suicide terror campaign, a terrorist explodes explosives though wearing them in a public area, with the intent of killing the people near. The terrorist in irresponsibility bombings takes away his own life although leading the attack.

Homicides or kidnappings of key administration officers or other significant persons are focused at making fear. Occasionally, terrorists also kidnap people and grip them hostage until their stresses are met. Tourists are also criticized by terrorists to depress others from travel.

Chemical attacks include planned release of damaging chemicals. Some chemicals agents disturb the nervous system and can cause paralysis or even death. Others cause injury to the nose, throat, skin, eyes or lungs. Some of the dangerous chemicals are mustard gas which causes burns and blindness; hydrogen cyanide which is occasionally used to perform criminals; and sarin which is an unsafe nerve gas. Terrorists may try to steal, buy or produce chemical armaments and scatter them later in occupied areas. Like the biological weapons, these weapons are also problematic for terrorists to prepare and use.

Nuclear attacks have not ever taken place as of the government’s watchfulness to keep the nuclear resources out of the reach of the terrorists. Counterterrorism experts on the other hand, have analysed how in years to come terrorists might practice the nuclear weapons or radioactive materials to transfer out nuclear attacks.

Computer-based terrorism or cyber terrorism refers to the disturbance of computer information systems. Cyber terrorists may plan or socialize computer viruses to

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Hijackingdisruption computer processes and destroy data. Cyber terrorists may also try to steal or change imperative information, or to outbreak systems that deliver vital services.

Other forms of terrorism may comprise any other form of strength or pressures of ferocity to cause panic. Some managements use terrorist techniques like torture and slaughter to scare opposition and increase their authority. These intense methods used by the oppressive governments are recognized as state terrorism or state-conducted terrorism. War crimes, killing, or any other worldwide destruction may come under acts of terror.

Though individuals may conduct terrorist actions like bombings or delivery of computer viruses, violence is usually working by prearranged networks or radical groups in contradiction of recognized governments to find changes in policies, to force the release of confined members of their governments, or to gain the care of the update media. Numerous groups may function in one state or region. Others have splits and processes in several nations. Guerilla warfare is a mutual tactic accepted by the terrorists who cannot equivalent the power of military forces. It comprises attacks by roaming groups of fighters who torment opponents with traps, bombings, unforeseen raids, and other hit-and-run plans. The fighters intermingle with normal citizens, attack abruptly, and try to avoid imprisonment. They may try to paralyze the economy by defeating bridges, dams, telephone networks, or other significant constructions or services. By doing so, they faith the overall public would misplace their sense of security and their self-reliance in their administration or establishment.

All terrorist acts are well-thought-out crimes in the worldwide law. Many countries fight terrorism by attaining figures or intelligence, by complaining up security at airports, government offices, and other important buildings, and by cooperating with global organizations and other countries facing terror threats. Special armed and law implementation units are also ready by some countries to control terrorist attacks. Activities planned to stop violence are called counterterrorism. Terrorism is chiefly active for small sets with inadequate military and monetary resources, for example, Kurd, Chechen Tamil, Basque, and Palestinian organizations have used terrorism. There are on the other hand, some groups with global linkages that conduct terror assaults in different parts of the world. Al-Qaida is one such big terror group which wishes to approve the objectives of Islamic extremists. Religious fanatics of various faiths use terrorism. Eco-terrorists like the Earth Liberation Front and the Animal Liberation Front use terrorism in contradiction of lumber corporations and research laboratory that manner research on animals to complaint the misappropriation of natural resources and nature. The foundations of backing for the terrorist groups are mainly indefinite. Some governments covertly deliver aid in the form of training, weapons, and money to the terrorist. Money is also raised up through illegal activities such as, theft or drug trafficking. In other cases, the terrorist groups use forged communal service establishments to protect large contributions from ignorant donors.

Counterterrorism refers to a number of actions. Governments collect and analyse evidence about doubted terrorists and terrorist groups. They spot possible terrorist pressures and grow a wide variety of safety actions and emergency procedures. Numerous countries turn down any cooperation with terrorists or countries that funding terrorists. United States Department of Homeland Security and the United Kingdom Security Services (MI5) are the noticeable nationwide security service area established to counter terrorism. They get provision from intelligence services, like Israel’s Mossad, the United Kingdom Secret Intelligence Service (MI6), and the U.S. Central Intelligence Agency (CIA). International organizations such as the United Nations (UN) and Interpol assist nations to counter terrorism.

Most governments defend likely terrorist marks, like airports, public meetings, and government structures by involving real security systems and events as well as skilled individual security. Tight security at airports and aircrafts can help in evading hijacks


and other terror outbreaks. Passengers frequently pass through numerous airport barriers. Guards search baggage and other items, and they may search travellers before allowing them board the plane. Protected cockpit doors and armed air officers are typically involved in safety measures on the airplanes.

Skyscrapers, administration structures, and numerous other buildings have corporal barriers to keep cars or trucks from getting closer. Many buildings also have metallic attackers or security checkpoints to sense dangerous constituents and to stop illegal people from entering. Cameras are connected at packed places to shot people’s faces and try to match them with pictures of doubted terrorists.

Cyber terrorism can be attempted with the assistance of safety events such as antivirus sequencers and electronic barriers called firewalls. New technology would progress with time to stand cyber terrorism more efficiently. One of the vital aspects of cyber terrorism is safety of significant sites. In some cases on the other hand, target hardening may cause objective movement which may cause the terrorists to handover their strategies to other soft targets that are not appropriately endangered.

One of the main methods by which terrorism can be answered is through assistance between organizations and governments. The UN and other worldwide activities assist in the advancement of this cooperation. Numerous treaties and arrangements have been in place to control terrorism. The extradition agreements, for example, let people related to terrorism in one country to be prevented in another country and transported back for trial. The global public may separate or punish countries, which deliver provision to terrorism. Economic authorizations could be executed on such countries till they change their rule on terrorism. Just in case sanctions and diplomatic pressure fail, armed attacks on terror camps may also be launched.

In the early 20th century, terrorist approaches came to be recycled quite broadly by the dictators Adolf Hitler of Germany, Benito Mussolini of Italy, and Joseph Stalin of Soviet Union. In the late 20th century, General Augusto Pinochet Ugarte took over Chile as an army dictator. Under his rule, over 3,000 Chileans left or were killed, and numerous others tortured. A number of demanding governments still use state terrorism to terrify and control the population.

Terrorist groups and movements have used strength to realize their objectives. The Ku Klux Klan, an American group, has used terrorism to face the progression of African Americans, Jews, and other minorities since the late 19th century. Roman Catholics in Northern Ireland have used violence to put an end to British rule and to unite Northern Ireland with the Republic of Ireland. Simultaneously, the Protestant extremists have used terrorism to request for the continuance of the British rule.

The demand for an independent Basque state in Spain saw the emergence of a group named Euskadi ta Askatasuna (Basque Homeland and Freedom), abbreviated ETA, which used violence to meet its demand. In Chechnya, rebels have taken up terrorism to gain independence from Russia. The rebel groups have taken hostages and carried out suicide bombings against Russian targets.

Throughout the late 20th century, a number of terrorist groups functioned for the damage of the political and monetary systems in their native land and the growth of new political systems. Among these were the Red Brigades in Italy and the Red Army faction or the Baader-Meinhof Gang in West Germany. Since the late 20th century, Peru has witnessed attacks by Leftist terrorist groups called Shining Path and the Tupac Amaru Revolutionary Movement.

A number of terrorist attacks have spiritual motives instead of political ones. In 1995, 12 people were destroyed and thousands wounded when the members of a Japanese religious cult unconstrained the nerve gas sarin into the Tokyo Subway system.

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HijackingCheck Your Progress 1


1. A number of terrorist attacks have spiritual motives instead of political ones.

2. Terrorist groups and movements have used strength to realize their objectives.

3. Cyber terrorism can be attempted with the assistance of safety events such as antivirus sequencers and electronic barriers called firewalls.

4. One of the main methods by which terrorism can be answered is through assistance between organizations and governments.

5. Most governments defend likely terrorist marks, like airports, public meetings, and government structures by involving real security systems and events as well as skilled individual security.

9.4 INITIAL PUBLIC RESPONSE ON HIJACKING

9/11 Attacks: U.S. Reaction Temporarily, people rotated to their faith to help them make sense of the attacks. "We join with our fellow Americans in request for the murdered and injured," the imam at the Al-Abidin mosque in Queens told his congregation. At the Washington National Cathedral, the Reverend Billy Graham implored his listeners "not to collapse and collapse emotionally and mentally as a people and a state" but to "choose to become stronger through the entire struggle to rebuild on a solid foundation." And at Grace Church in Manhattan, the Reverend Bert Breiner asked parishioners to "please go forth into this world with love as though everything depended on it, because as we now know, everything does depend on it. Americans tried to bolster the rescue effort in any way they could. Cities and towns sent firefighters and EMTs to Ground Zero. Lines to donate blood at Red Cross offices and other blood banks were incredibly long–an entire day's wait in Madison, Wisconsin. New and established charities raised money for the victims and rescue workers. It was possible to donate to the Red Cross with just one click on Amazon.com, and the organization raised $3 million that way in just two days.

But for some Americans, their grief manifested itself as anger and frustration, and they looked for someone to blame for the attacks. Reverend Jerry Falwell made news by saying on his television program "The 700 Club" that "I really believe that the pagans, and the abortionists, and the feminists, and the gays and the lesbians who are actively trying to make that an alternative lifestyle, the ACLU, People for the American Way–all of them who have tried to secularize America–I point the finger in their face and say, 'You helped this happen.'" And sadly, some anger erupted into attacks on people of Arab and Muslim descent, with nearly 600 incidents in the first 10 days after the attacks. Five hundred furious people mobbed a Chicago-area mosque and refused to leave until they were forced out by police. A Pakistani grocer was murdered in Texas. A man on an anti-Arab rampage in Arizona fatally shot a gas station owner who was an Indian-born Sikh. FBI Director Robert Mueller said over and over again that "vigilante attacks and threats against Arab-Americans will not be tolerated," but harassment and violence at mosques and in Arab-American neighbourhoods continued for months.

Political leaders urged calm and promised aid. New York City mayor Rudy Giuliani, who rose to national prominence thanks to his leadership in the wake of the attacks, urged decisive action against terrorism and encouraged New Yorkers to try to return to their normal lives. He appeared on "Saturday Night Live" with several firefighters


on September 29 (in the opening monologue, Lorne Michaels asked if it was okay to be funny at such a sad time; Giuliani replied, "Why start now?") and orchestrated a major promotional campaign designed to lure tourists back to his beleaguered city. New York Governor George Pataki activated the state's Emergency Operations Center; created a new Office of Public Safety to check on the state's bridges, tunnels and water supplies; and won bipartisan support for a plan to establish a Lower Manhattan Development Corporation and a state-run World Trade Center Relief Fund.

Meanwhile, President George Bush was able to win a broad mandate to act in the nation's defense. In a speech on September 20, he asked citizens to be "calm and resolute, even in the face of a continuing threat" and promised that the United States would triumph over terrorism–"stop it, eliminate it, destroy it where it grows." After the United States began military operations in Afghanistan in October, the president's approval rating soared to 90 per cent. Congressional leaders responded too: They passed a $40 billion disaster relief bill in September and, the next year, the USA Patriot Act, which gave investigators a great deal of leeway in their domestic surveillance activities and made immigration laws more stringent.

Despite such anti-terrorist measures, many Americans continued to feel uneasy. According to a study in the New England Journal of Medicine, nearly half of all Americans reported symptoms of stress and depression after the attacks. Many thousands of Americans lost loved ones on September 11. Millions more watched the unrelenting news coverage of the attacks, looked at the wrenching photographs in the newspaper and listened to heart-breaking interviews with firefighters, survivors and relatives of victims, feeling that, at least in some small way, the trauma of the day was theirs too. Memorials, commemorative ceremonies and time have helped many to begin to heal, but for others the shock and horror of that day in September remains painfully fresh.

9/11 Attacks: International Reaction "Today," the French newspaper Le Monde announced on September 12, 2001, "we are all Americans." People around the world agreed: The terrorist attacks of the previous day had felt like attacks on everyone, everywhere. They provoked an unprecedented expression of shock, horror, solidarity and sympathy for the victims and their families.

Citizens of 78 countries died in New York, Washington, D.C., and Pennsylvania on September 11, and people around the world mourned lost friends and neighbours. They held candlelight vigils. They donated money and goods to the Red Cross and other rescue and relief organizations. Flowers piled up in front of American embassies. Cities and countries commemorated the attacks in a variety of ways: The Queen Mother sang the American national anthem at Buckingham Palace's Changing of the Guard, while in Brazil, Rio de Janeiro put up huge billboards that showed the city's famous Christ the Redeemer statue embracing the New York City skyline.

Even leaders of countries that did not tend to get along terribly well with the American government expressed their sorrow and dismay. The Cuban foreign minister offered airspace and airports to American planes. Chinese and Iranian officials sent their condolences. And the Palestinian leader Yasser Arafat, visibly dismayed, told reporters in Gaza that the attacks were "unbelievable, unbelievable, unbelievable." "We completely condemn this very dangerous attack," he said, "and I convey my condolences to the American people, to the American president and to the American administration."

On September 12, the 19 ambassadors of the North Atlantic Treaty Organization (NATO) declared that the attack on the United States was an attack on all of the member nations. This statement of solidarity was mostly symbolic–NATO did not authorize any specific military action–but it was still unprecedented. It was the first time that the organization had ever invoked the mutual defense section of its charter

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Hijacking(intended to protect vulnerable European nations from Soviet invasion during the Cold War). NATO eventually sent five airplanes to help keep an eye on American airspace.

Likewise, on September 12 the United Nations Security Council called on all nations to "redouble their efforts" to thwart and prosecute terrorists. Two weeks later, it passed another resolution that urged states to "suppress the financing of terrorism" and to aid in any anti-terrorism campaigns.

But these declarations of support and solidarity didn't mean that other countries gave the United States a free hand to retaliate however, and against whomever, it pleased. Allies and adversaries alike urged caution, warning that an indiscriminate or disproportionate reaction could alienate Muslims around the world. In the end, almost 30 nations pledged military support to the United States, and many more offered other kinds of cooperation. Most agreed with George Bush that, after September 11, the fight against terrorism was "the world's fight."

9.5 COCKPIT DOORS After 9/11, the FAA instructed new, thicker, bulletproof doors for airline cockpits across the U.S. profitable air fleet. All commercial airliners now have them installed. While encouraged doors are a dramatic improvement, associated to before existing ones, they are far from a panacea against a motivated terrorist team.

Soon after 9/11, an original, encouraged cockpit door was penetrated by a drunken passenger on a worldwide flight.

A few months later, an after-hours housework crew effortlessly broke one off its hinges on a bet, by organisation a heavy snack cart into it, rapidly attainment access to the cockpit.

Some intercontinental flights are up to six hours from the adjacent point of landing in a crisis, if ample time for a terrorist team to work on breaking the door.

Flight Attendants must also be capable of gain access to the arena in order to do their jobs. It is indeed easy to appreciate how a flight associated with a knife at his or her throat, and under threat of a horrifying death or torture, might give a terrorist admittance to the cockpit, although being trained not to.

On all but a tiny fraction of airliners, the encouraged cockpit door is all that stands among a terrorist and anther 9/11. An unprotected flight crew would find it difficult to retain control of the aircraft once the cockpit has been breached.

The dependability of an encouraged door in avoiding terror attack is 15%, if the terrorists exploit its intrinsic weaknesses, which we expect they will do.

9.6 PROFILES OF HIJACKERS The hijackers in the September 11 attacks were 19 men associated with al-Qaeda, and 15 of the 19 were citizens of Saudi Arabia. Others were from Egypt, Lebanon, and the UAE. The hijackers were prearranged into four teams, each commanded by a pilot-trained hijacker with four "muscle hijackers" who were skilled to help reduce the passengers, pilots, and crew.

The first hijackers to reach in the United States were Khalid al-Mihdhar and Nawaf al-Hazmi, who established in the San Diego area in January 2000. They were tracked by three hijacker-pilots, Mohamed Atta, Marwan al-Shehhi, and Ziad Jarrah early in the summer of 2000 to take on flight preparation in South Florida. The fourth hijacker-pilot, Hani Hanjour, arrived in San Diego in December 2000. The rest of the "muscle hijackers" arrived in the spring and early summer of 2001.


The 2001 attacks were headed by the fewer famous Bojinka plot which was intended in the Philippines by Ramzi Yousef (of the 1993 World Trade Center bombing) and Khalid Shaikh Mohammed. Its aim was to blow up twelve airliners and their roughly 4,000 commuters as they flew from Asia to the United States. The plan comprised deafening a plane into the CIA headquarters, prominent credence that Khalid Shaikh Mohammed changed this plot into the September 11 attacks. The plot was disturbed in January 1995 after a biochemical fire drew the Filipino police and investigation authorities' attention, consequential in the capture of one terrorist and removal of a laptop comprising the plans. One person was killed in the course of the plot — a Japanese passenger seated near a nitroglycerin bomb on Philippine Airlines Flight 434. The money given down to the conspirators originated from Al-Qaeda, the worldwide Islamic jihadi organization then based in Sudan.

Khalid al-Mihdhar and Nawaf al-Hazmi were both practiced and valued jihadists in the eyes of al-Qaeda leader, Osama bin Laden. Mihdhar and Hazmi both had previous experience fighting in Bosnia, and had accomplished during the 1990s at camps in Afghanistan. When Bin Laden dedicated to the September 11 attacks plot indication, he allocated both Mihdhar and Hazmi to the plot. Both were so keen to join in processes within the United States, that they got visas in April 1999. Once carefully chosen, Mihdhar and Hazmi were sent to the Mes Aynak training camp in Afghanistan. In late 1999, Hazmi, Attash, and Yemeni went to Karachi, Pakistan to see Mohammed, who taught them on Western culture and travel; however, Mihdhar did not go to Karachi, in its place returning to Yemen.

As for the aviators who would go on to take part in the attacks, three of them were unique members of the Hamburg cell (Mohammed Atta, Marwan al-Shehhi and Ziad Jarrah). Following their training at Al-Qaeda training camps in Afghanistan, they were selected by Osama Bin Laden and Al-Qaeda's military wing because of their widespread knowledge of western culture and language skills, growing the mission's working safety and its probabilities for achievement. The fourth planned pilot, Ramzi bin al-Shibh, a member of the Hamburg cell, was also chosen to participate in the attacks yet remained incapable to get a visa for admission into the United States. He was future interchanged by Hani Hanjour, a Saudi national.

Origins of the 19 hijackers Nationality Number

Saudi Arabia 15 United Arab Emirates 2 Egypt 1 Lebanon 1

Beforehand the attacks, FBI agent Robert Wright, Jr. had written vigorous criticisms of FBI's alleged incompetence in investigating terrorists residing within the United States. Wright was amount of the Bureau's Chicago counter-terrorism mission force and involved in project Vulgar Betrayal which was connected to Yasin al-Qadi.

Conferring to James Bamford, the NSA had nominated communications of al-Mihdhar and al-Hazmi back in 1999, but had been hindered by core administrative struggles between itself and the CIA, and did not do a complete examination of the info it passed on to the agency. According to the 9/11 Commission Report, 26 al-Qaeda terrorist conspirators attempted to enter the United States to carry out a suicide mission. In the end, the FBI reported that there were 19 hijackers in all: five on three of the flights, and four on the fourth. On September 14, three days after the attacks, the FBI announced the names of 19 persons. After a controversy about an earlier remark, U.S. Homeland Secretary Janet Napolitano stated in May 2009 that the 9/11

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HijackingCommission found that none of the hijackers entered the United States through Canada.

Nawaf al-Hazmi and Hani Hanjour, attended the Dar al-Hijrah Islamic Center in Falls Church, Virginia in early April 2001 where the Imam Anwar al-Awlaki preached. Through interviews with the FBI, it was discovered that Awlaki had previously met Nawaf al-Hazmi several times while the two lived in San Diego. At the time, Hazmi was living with Khalid al-Mihdhar, another 9/11 hijacker. The hijackers of the same plane often had very strong ties as many of them attended school together or lived together prior to the attacks.

Cases of Mistaken Identity Soon after the attacks and before the FBI had unrestricted the portraits of all the hijackers, numerous reports seemed claiming that certain of the men termed as hijackers on 9/11 were alive and were feared to have been victims of identity theft.

9.7 SKY MARSHAL PROGRAM/FEDERAL AIR MARSHAL PROGRAM

Federal Air marshals were first working by the United States in the 1970s, under the Sky Marshal program, when hijacking of airplanes to Cuba had become common. Today, the renamed Federal Air marshal program employs distinct government agents who travel incognito as ordinary passengers on routes measured high-risk. They are approved to carry firearms and to make seizures without warrants.

According to the Transportation Security Administration:

The Federal Air Marshal Service promotes confidence in the nation’s civil aviation system through the effective deployment of Federal Air Marshals (FAMs) to detect, deter, and defeat hostile acts targeting U.S. air carriers, airports, passengers, and crews.

Federal Air Marshals must operate independently without backup, and rank among those Federal law enforcement officers that hold the highest standard for handgun accuracy. They blend in with passengers and rely on their training, including investigative techniques, criminal terrorist behaviour recognition, firearms proficiency, aircraft specific tactics, and close quarters self-defense measures to protect the flying public.

Federal Air Marshals have an ever expanding role in homeland security and work closely with other law enforcement agencies to accomplish their mission. Currently, air marshals staff several positions at different organizations such as the National Counterterrorism Center, the National Targeting Center, and on the FBI’s Joint Terrorism Task Forces. In addition, they are also distributed among other law enforcement and homeland security liaison assignments during times of heightened alert or special national events.

On January first, 1914, eleven years after the Wright brothers’ creation of the first airplane, pilot Tony Jannus conducted the United States’ first commercial airline flight. The 23-minute flight travelled from St. Petersburg, Florida, to Tampa, maintaining an average height of 50 feet carrying just one passenger (Flightglobal). Jannus and his passenger stepped directly onto the plane without spending a single minute being searched for potentially dangerous items. 35 years later at the dawn of the Jet Age, when the world was already well into commercial aviation, passenger screening was still virtually non-existent—those were the days when you could arrive at the airport half an hour before your flight and kiss your family goodbye at the gate. Now, arriving at the airport two hours in advance gives you just enough time to make your flight. Rather than walking straight to your gate with minimal security screening,


you have to submit to full-body scans, send all your bags through an x-ray machine, take off your shoes, and throw away liquids, among a plethora of other regulations. Quite a polar change from 60 years ago. So what happened in between that spurred this process of such radical changes?

Hijackings, Bombings, Terrorist attacks, Hostage situations. Threats to safety that date back to the first U.S. plane hijacking in 1931. But there is no single event that caused every change in the system; rather, there were several key incidents that prompted fast and extreme action in the security department. World War II, the numerous hijackings of 1972, the September 11 Al Qaeda attacks, and several individuals’ plots in the years following 9/11 were all events that resulted in a paradigm shift of the world’s view on what was necessary to keep air travellers safe.

World War I

The profitable air travel industry leaped to life after World War I, when the end of the war gives rise to in a surplus of new engines and aircraft. Anyone could own a plane and didn’t even need a pilot’s license (Heppenheimer, 5). In 1921 reforms were instituted that required pilots to have 500 practice hours in the air and pass a succeeding exam as well as meet medical requirements (Heppenheimer, 10). These were the first footsteps taken in the aviation business to progress the security of flight. But real modifications did not come about until post-WWII. Associated to today’s security events, those of the 1950s were minimal. But compared to what was literally nothing before WWII, security measures were considered enhanced. Though there were no physical transmission devices, workers began examining baggage and passengers that seemed “suspicious” in any way (Thayer, 55). Conversely, the changes were due extra to the public’s overall nervousness and the rising Cold War with Russia, rather than in response to WWII, as there were no direct attacks on commercial airlines.

September 11th Al Qaeda Attack

September 11, 2001. The Pearl Harbor of the 21st century. An event so sad that every single child identifies that date, knows at least the basics of what occurred. 19 Al Qaeda terrorists hijacked four American flights, colliding one into each tower of the World Trade Center, one into the Pentagon in Washington, D.C., and commuters who fought back against the terrorists on the fourth plane (intended to destroy the White House) brought down the last hijacked plane in Somerset County, Pennsylvania (Sweet, 96). 2977 people died that day. That such a radical attack could flourish was a main mistake in the United States’ security, for which the U.S. instantly compensated. A new division of federal security, the Transportation Security Administration (TSA), was designed to supervise security for all modes of travel and directly took action. All U.S. airports began selection 100% of checked baggage; passengers were exposed to much more thorough screening processes; valid identification became needed to fly; cockpit doors were held together and bulletproofed; and passenger summarizing, which will be addressed later, was taken up a notch (Flightglobal).

Recent Hijackings The last specific hijackings and bombings conversed will be those accountable for today’s main, and most problematic security measures. Luckily these efforts were all foiled, but only after the committer passed security. The first is Richard Reid’s try to destroy a passenger liner from Paris to Miami using shoes crowded with explosives on December 22, 2001. In response, passengers need now eliminate their shoes and show them through the x-ray machine along with their bags when flying on planes (Engle).

Next, on August 9, 2006, a plot to concurrently blow up numerous 10 U.S.-bound passenger jets with liquid explosives hidden in carry-on luggage was blocked with the

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Hijackingarrest of 24 suspects (Anderson and DeYoung). This too-close incident caused the TSA to ban carrying on any amount of liquids larger than three ounces.

The last incident is the Nigerian underclothing bomber on Northwest Flight 253 from Amsterdam to Detroit on December 25, 2009. After the passenger tried to set off plastic explosives masked in his underclothing, the TSA mounted about 500 Advanced Imaging Technology units, or full-body scanners, to screen passengers for both metal and non-metallic fears. Passengers who decline full-body scanning are given advanced pat down procedures (Engle). The following timeline briefly summarizes the main turning points in the development of airline security and their causes.

Source: http://www.personal.psu.edu/~users/b/g/bgr5040/Extend%20pics.html

Effect outside of the aviation industry

All of this is evidence that a paradigm shift occurred—but what effect does this have on anything other than the aviation industry? The technique of passenger profiling is an area of debate because “racial minorities repeatedly complain that they are unfairly singled out for question and searches” (Sweet, 457). And some argue that certain safety procedures are a violation of privacy and personal rights. That security has continued developing despite these debates shows how the paradigm shift in airport security also caused shifts in other areas, such as what policies are considered racially acceptable and justified.

Passenger Profiling

The question of security is further debated when it comes to the preparation of passenger profiling. Passenger profiling is designed to detect certain patterns and behaviours that identify a traveller as needing closer scrutiny. Valid explanations for such labelling could be religious ethnic, economic, or ideological (Sweet, 457). And as estimated, labelling someone as a possible terrorist as of their religion or ethnicity is offensive and unfairly discriminatory. In 2000 airlines began using the Computer Assisted Passenger Screening (CAPS) system to collect and screen the information that commuters deliver for explanations unconnected to security, such as name, telephone number, method and date of payment. However, despite the potential for refinement, the system of classifying types of travellers is still used, though it is not trusted on as heavily as in the late 20th century since terrorists knowledgeable to spoil the system, taking events to make sure they blend in.



Fill in the blanks:

1. The ………………….. promotes confidence in the nation’s civil aviation system through the effective deployment of Federal Air Marshals (FAMs) to detect, deter, and defeat hostile acts targeting U.S. air carriers, airports, passengers, and crews.

2. The technique of ………………….. is an area of debate because “racial minorities repeatedly complain that they are unfairly singled out for question and searches”.

3. Federal Air marshals were first working by the United States in the 1970s, under the Sky Marshal program, when ………………….. to Cuba had become common.

9.8 LET US SUM UP Hijacking is one of the most serious crimes in every country all over the world. As this can create a serious problem in a country, government is taking various measures in order to avoid this. The history of the hijacking is very interesting. It made us to understand the various ways to stop the hijacking as it is most hated crime. It not only disturb the functioning of the government but also it make the people scared of transportation industry though it is the most convenient way to travel all over the world.

9.9 LESSON END ACTIVITY Have a discussion on the topic of people reactions on the hijacking.

9.10 KEYWORDS AGM: It is a meeting that official bodies, and associations involving the general public, are often required by law to hold.

Aviation: It is the design, development, production, operation, and use of aircraft, especially heavier-than-air aircraft.

Cargo: It is goods or produce transported, generally for commercial gain, by ship or aircraft, although the term is now extended to intermodal train, van or truck. In modern times, containers are used in most long-haul cargo transport.

Clearing House: It is a financial institution that provides clearing and settlement services for financial and commodities derivatives and securities transactions.

Governance: It is the act of governing. It relates to decisions that define expectations, grant power, or verify performance.

9.11 QUESTIONS FOR DISCUSSION 1. What are the steps taken by the government to stop hijacking?

2. Give an overview on the history of the hijacking since 1972.

3. Explain the profile of hijacker in the 9/11 attack.

4. What is cockpit door?

5. Explain air marshal program.

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HijackingCheck Your Progress: Model Answers

CYP 1

1. True

2. True

3. True

4. True

5. True

CYP 2

1. Federal Air Marshal Service

2. passenger profiling

3. hijacking of airplanes






168 Principles of Travel and Tourism Operations and Aviation Safety LESSON

10 TERRORISM

CONTENTS


10.1 Introduction

10.2 Terrorism: Middle East

10.2.1 Middle Eastern Terrorist Groups and the Use of Information Technology

10.3 Rival Claim

10.4 Palestine Liberation Organization (PLO)

10.5 Abu Nidal

10.6 Hamas

10.7 Iranian Support of Terrorism

10.7.1 Hezbollah

10.8 Afghanistan: Osama Bin Laden

10.8.1 Osama and the 9/11

10.9 Europe

10.9.1 Japan

10.9.2 Peru

10.9.3 Russia

10.10 US: Domestic Terrorism

10.10.1 Terrorist organizations

10.11 Nuclear Terrorism

10.11.1 Scope

10.12 Let us Sum up


10.14 Keywords




Discuss Middle East terrorism

Describe Palestine Liberation Organization

Explain Iranian support of terrorism

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Terrorism Know about Osama bin Laden

Describe US domestic terrorism and nuclear terrorism

10.1 INTRODUCTION In this lesson you will study about the Middle East terrorism, Palestine Liberation Organization and about Abu Nidal and Hamas. Further you will study about Iranian support of terrorism, Hezbollah, Osama bin Laden from Afghanistan, terrorism activities in Europe, Japan, Peru and US domestic terrorism and the nuclear terrorism.

10.2 TERRORISM: MIDDLE EAST Terrorist groups in the Middle East have diverse origins, philosophies, and organisational structures, but can be roughly categorised into traditional group and new-generation groups. Traditional groups date back to the late 1960s and early 1970s, and the majority of these were (and some still are) formally or informally linked to the PLO. Usually, they are also relatively bureaucratic and maintain a nationalist or collective agenda. On the other hand, most new-generation groups came into existence during the 1980s and 1990s, and comprise more fluid organisational forms, and trust on Islam as a basis for their essential belief.

The traditional, more bureaucratic groups have survived to this day somewhat by support from states for instance Iran, Syria and Libya. The groups retain an ability to train and prepare for terrorist missions; though, their participation in real actions has been limited in recent years, relatively owing to successful counterterrorism movements by Western agencies and Israelis. While on the other hand, the newer and less hierarchical groups, such as Hamas, the Egyptian Islamic Group (IG), Hizbullah, Palestinian Islamic Jihad (PIJ), Algeria’s Armed Islamic Group (GIA), and Osama bin Laden’s Arab Afghans, have turn out to be the most active organizations in and around the Middle East.

The Traditional terrorist groups in the Middle East take account of the Popular Front for the Liberation of Palestine (PFLP), the Abu Nidal Organisation (ANO) and three PFLP-related splinters—

1. The PFLP-General Command (PFLP-GC),

2. The Palestine Liberation Front (PLF), and

3. The Democratic Front for the Liberation of Palestine (DFLP).

The Abu Nidal Organisation was an integral part of the PLO until it became independent in 1974. It has a bureaucratic structure composed of many functional committees. The activism it displayed in the 1970s and 1980s has lessened considerably, owing to a lessening of support from state sponsors and to effective counterterrorist campaigns by Israeli and Western intelligence services. The very existence of the organization has recently been put into question, given uncertainty as to the whereabouts and fate of Abu Nidal, the leader of the group. George Habash as a PLO-affiliated organization founded the PFLP in 1967. It has traditionally embraced a Marxist ideology, and remains an important PLO faction. However, in recent years it has suffered considerable losses from Israeli counterterrorist strikes. The PFLP-General Command split from the PFLP in 1968, and in turn experienced a schism in the mid-1970s. This splinter group, which called itself the Palestine Liberation Front, is composed of three subgroups, and has not been involved in high-profile acts since the 1985 hijacking of the Italian cruise ship Achille Lauro. The PFLP was subjected to another split in 1969, which resulted in the Democratic Front for the Liberation of Palestine. The Democratic Front for the Liberation of Palestine resembles a small army more than a terrorist group—its operatives are organized in battalions, backed by intelligence and special forces. Democratic Front for the Liberation of Palestine


strikes has become less frequent since the 1970s, and since the late 1980s it has limited its attacks to Israeli targets near borders. What seems evident here is that this old generation of traditional, hierarchical, bureaucratic groups is on the wane. The reasons are varied, but the point remains—their way of waging terrorism is not likely to make a comeback, and is being superseded by a new way that is more attuned to the organisational, doctrinal, and technological imperatives of the information age.

The new generation of Middle Eastern groups has been active both in and outside the region in recent years. In Israel and the occupied territories, Hamas, and to a lesser extent the Palestinian Islamic Jihad, have shown their strength over the last four years with a series of suicide bombings that have killed more than one hundred people and injured several more. Exploiting a strong presence in Lebanon, the Shi’ite Hizbullah organization has also staged a number of attacks against Israeli Defense Forces troops and Israeli cities in Galilee.

The al-Gama’a al-Islamiya, or Islamic Group (IG), is the most active Islamic extremist group in Egypt. In November 1997 Islamic Group carried out an attack on Hatshepsut’s Temple in Luxor, killing 58 tourists and 4 Egyptians. The Group has also claimed responsibility for the bombing of the Egyptian embassy in Islamabad, Pakistan, which left 16 dead and 60 injured. In Algeria, the Armed Islamic Group (GIA) has been behind the most violent, lethal attacks in Algeria’s protracted civil war. Approximately 70,000 Algerians have lost their lives since the domestic terrorist campaign began in 1992.

Recently, the loosely organized group of Arab Afghans—radical Islamic fighters from several North African and Middle Eastern countries who forged ties while resisting the Soviet occupation of Afghanistan—has come to the fore as an active terrorist outfit. One of the leaders and founders of the Arab Afghan movement, Osama bin Laden, a Saudi entrepreneur who bases his activities in Afghanistan, is suspected of sending operatives to Yemen to bomb a hotel used by U.S. soldiers on their way to Somalia in 1992, plotting to assassinate President Clinton in the Philippines in 1994 and Egyptian President Hosni Mubarak in 1995, and of having a role in the Riyadh and Khobar blasts in Saudi Arabia that resulted in the deaths of 24 Americans in 1995 and 1996.18 U.S. officials have pointed to bin Laden as the mastermind behind the U.S. embassy bombings in Kenya and Tanzania, which claimed the lives of more than 260 people, including 12 Americans.

To varying degrees, these groups share the principles of the networked organization—relatively flat hierarchies, decentralization and delegation of decision-making authority, and loose lateral ties among dispersed groups and individuals. For instance, Hamas is loosely structured, with some elements working openly through mosques and social service institutions to recruit members, raise funds, organize activities, and distribute propaganda. Palestinian security 250 M. Zanini sources indicate that there are ten or more Hamas splinter groups and factions with no centralized operational leadership. The Palestinian Islamic Jihad is a series of loosely affiliated factions, rather than a cohesive group. The pro-Iranian Hizbullah acts as an umbrella organization of radical Shi’ite groups, and in many respects is a hybrid of hierarchical and network arrangements. Although the formal structure is highly bureaucratic, interactions among members are volatile and do not follow rigid lines of control. According to the U.S. Department of State, Egypt’s Islamic Group is a decentralized organization that operates without a single operational leader, while the GIA is notorious for the lack of centralized authority.

Unlike traditional terrorist organizations, Arab Afghans are part of a complex network of relatively autonomous groups that are financed from private sources forming “a kind of international terrorists’ Internet.” The most notorious element of the network is Osama bin Laden, who uses his wealth and organisational skills to support and direct a multinational alliance of Islamic extremists. At the heart of this alliance is his

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Terrorismown inner core group, known as Al-Qaeda (“The Base”), which sometimes conducts missions on its own, but more often in conjunction with other groups or elements in the alliance. The goal of the alliance is opposition on a global scale to perceived threats to Islam, as indicated by bin Laden’s 1996 declaration of a holy war against the United States and the West. In the document, bin Laden specifies that such a holy war will be fought by irregular, light, highly mobile forces using guerrilla tactics.

Even though bin Laden finances Arab Afghan activities and directs some operations, he apparently does not play a direct command and control role over all operatives. Rather, he is a key figure in the coordination and support of several dispersed activities. For instance, bin Laden founded the “World Islamic Front for Jihad against Jews and Crusaders.” And yet most of the groups that participate in this front (including Egypt’s Islamic Group) remain independent, although the organisational barriers between them are fluid. From a netwar perspective, an interesting feature of bin Laden’s Arab Afghan movement is its ability to relocate operations swiftly from one geographic area to another in response to changing circumstances and needs. Arab Afghans have participated in operations conducted by Algeria’s GIA and Egypt’s IG. Reports in 1997 also indicated that Arab Afghans transferred training operations to Somalia, where they joined the Islamic Liberation Party (ILP). The same reports suggest that the Arab Afghan movement has considered sending fighters to Sinkiang Uighur province in western China, to wage a holy war against the Chinese regime. This group’s ability to move and act quickly (and, to some extent, to swarm) once opportunities emerge hampers counterterrorist efforts to predict its actions and monitor its activities. The fact that Arab Afghan operatives were able to strike the U.S. embassies in Kenya and Tanzania substantiates the claim that members of this network have the mobility and speed to operate over considerable distances. Although the organisational arrangements in these groups do not match all the basic features of the network ideal, they stand in contrast to more traditional groups. Another feature that distinguishes the newer generation of terrorist groups is their adoption of information technology.

10.2.1 Middle Eastern Terrorist Groups and the Use of Information Technology Information technology (IT) is an enabling factor for networked groups. I posit that:

The greater the degree of organisational networking in a terrorist group, the higher the likelihood that IT is used to support the network’s decision making.

Recent advances in IT facilitate networked terrorist organizations because information flows are becoming quicker, cheaper, more secure, and more versatile.

There is some evidence to support these hypotheses. For example, the most active groups—and therefore the most decentralised groups—appear to have embraced information technology to coordinate activities and disseminate propaganda and ideology. This is consistent with the rise in the Middle East of what has been termed techno-terrorism, or the use by terrorists of satellite communications, e-mail, and the World Wide Web. Arab Afghans, for instance, appear to have widely adopted information technology for organisational purposes. According to reporters who visited bin Laden’s headquarters in a remote mountainous area of Afghanistan, the terrorist financier has computers, communications equipment, and a large number of disks for data storage. Egyptian “Afghan” computer experts are said to have helped devise a communication network that relies on the World Wide Web, e-mail, and electronic bulletin boards so that the extremists can exchange information without running a major risk of being intercepted by counterterrorism officials. Hamas is another major group that uses the Internet to share operational information. Hamas activists in the United States use chat rooms to plan operations and activities.


Operatives use e-mail to coordinate activities across Gaza, the West Bank, and Lebanon. Hamas has realized that information can be passed securely over the Internet because it is next to impossible for counterterrorism intelligence to monitor accurately the flow and content of Internet traffic. Israeli security officials have difficulty in tracing Hamas messages and decoding their content.

Likewise, during a recent counterterrorist operation, several GIA bases in Italy were uncovered, and each was found to include computers and diskettes with instructions for the construction of bombs. It has been reported that the GIA uses floppy disks and computers to store and process instructions and other information for its members, who are dispersed in Algeria and Europe. Further M. Zanini more, the Internet is used as a propaganda tool by Hizbullah, which manages three World Wide Web sites—one for the central press office (at www.hizbollah.org), another to describe its attacks on Israeli targets (at www.moqawama.org), and the last for news and information (at www.almanar.com.lb).42 The presence of Middle Eastern terrorist organizations on the Internet is also suspected in the case of the Islamic Gateway, a World Wide Web site that contains information on a number of Islamic activist organizations based in the United Kingdom. British Islamic activists use the World Wide Web to broadcast their news and attract funding; they are also turning to the Internet as an organisational and communication tool. While the vast majority of Islamic activist groups represented in the Islamic Gateway are legitimate, one group—the Global Jihad Fund—makes no secret of its militant goals. The appeal of the Islamic Gateway for militant groups may be enhanced by a representative’s claim, in an Internet Newsnet article in August 1996 that the Gateway’s Internet Service Provider (ISP) can give “CIA-proof” protection against electronic surveillance.

10.3 RIVAL CLAIM This can be understood by studying the following article on Kerry Sees Syrian Retaliation Against Rivals in Talks.

Washington — The State Department accused the Syrian government on Wednesday of retaliating against the Syrian opposition’s representatives to the Geneva peace talks by arresting their family members.

There have been two rounds of unproductive talks in Geneva between the Syrian opposition and a delegation from the Syrian government, which is led by President Bashar al-Assad.

Secretary of State John Kerry has blamed the Assad government for the deadlock in the talks and said that it had undermined them by putting opposition delegates on a terrorist list and seizing their assets. On Wednesday, the State Department asserted that the Syrian government had also been detaining some of the delegates’ relatives.

“The United States is outraged by reports that the Assad regime has arrested family members of the Syrian Opposition Coalition delegation to the Geneva II peace talks, designated delegates as terrorists and seized delegates’ assets,” Jen Psaki, the State Department spokeswoman, said in a statement.

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TerrorismPalestinians from the Yarmouk camp, on the outskirts of Damascus, waited for food aid in the city in a Jan. 31 photograph released Wednesday by the United Nations. An agency official visiting the camp this week said he was shaken by the deprivation there. Credit United Nation Relief and Works Agency

“We call on the regime to immediately and unconditionally release all those unfairly arrested, including Mahmoud Sabra, brother of Geneva delegation member Mohammed Sabra,” she added. According to a statement issued last week by the Syrian opposition, Mohammed Sabra said his brother had been detained at a checkpoint in the town of Jaramana.

In Syria on Wednesday, government forces killed scores of rebels in an ambush east of Damascus, opposition activists and the government said, dealing a major blow to efforts by rebels to open a supply line to a besieged area. The exact toll remained unclear, with the government claiming it had killed more than 175 rebels, many of them non-Syrian jihadists, and an opposition activist in the area saying more than 40 fighters were killed, with dozens more unaccounted for.

10.4 PALESTINE LIBERATION ORGANIZATION (PLO) Palestne Liberation Organization (PLO), Arabic Munazzamat al-Tahrir Filastiniyyah, umbrella political organization claiming to represent the world’s Palestinians—those Arabs, and their descendants, who lived in mandated Palestine before the creation there of the State of Israel in 1948. It was formed in 1964 to centralize the leadership of various Palestinian groups that previously had operated as clandestine resistance movements. It came into prominence only after the Six-Day War of June 1967, however, and engaged in a protracted guerrilla war against Israel during the 1960s, ’70s, and ’80s before entering into peace negotiations with that country in the 1990s.

Foundation and early development

After the Arab-Israeli war of 1948 the Arab states, notably Egypt, took the lead in the political and military struggle against Israel. The Palestinians themselves had been dispersed among a number of countries, and—lacking an organized central leadership—many Palestinians formed small, diffuse resistance organizations, often under the patronage of the various Arab states; as a result, Palestinian political activity was limited.

The PLO was created at an Arab summit meeting in 1964 in order to bring various Palestinian groups together under one organization, but at first it did little to enhance Palestinian self-determination. The PLO’s legislature, the Palestine National Council (PNC), was composed of members from the civilian population of various Palestinian communities, and its charter (the Palestine National Charter, or Covenant) set out the goals of the organization, which included the complete elimination of Israeli sovereignty in Palestine and the destruction of the State of Israel. Yet, the PLO’s first chairman, a former diplomat named Aḥmad Shuqayrī, was closely tied to Egypt, its military force (the Palestine Liberation Army, formed in 1968) was integrated into the armies of surrounding Arab states, and the militant guerrilla organizations under its auspices had only limited influence on PLO policy. Likewise, although the PLO received its funding from taxes levied on the salaries of Palestinian workers, for decades the organization also depended heavily on the contributions of sympathetic countries.

10.5 ABU NIDAL Abu Nidal born Sabri Khalil al-Banna, was the founder of Fatah – The Revolutionary Council a militant Palestinian splinter group also known as the Abu Nidal Organization (ANO). At the height of his power in the 1970s and 1980s, Abu Nidal, or "father of [the] struggle", was widely regarded as the most ruthless of the


Palestinian political leaders. He told Der Spiegel in a rare interview in 1985: "I am the evil spirit which moves around only at night causing ... nightmares."

Part of the socialist Palestinian rejectionist front, so called because they reject proposals for a peaceful settlement with Israel, the ANO was formed after a split in 1974 between Abu Nidal and Yasser Arafat's Fatah faction within the Palestine Liberation Organization (PLO). Setting himself up as a freelance contractor, Abu Nidal is believed by the United States Department of State to have ordered attacks in 20 countries, killing or injuring over 900 people. The group's most notorious attacks were on the El Al ticket counters at Rome and Vienna airports in December 1985, when Arab gunmen opened fire on passengers in simultaneous shootings, killing 18 and wounding 120. Patrick Seale, Abu Nidal's biographer, wrote of the attacks that their "random cruelty marked them as typical Abu Nidal operations".

Abu Nidal died of between one and four gunshot wounds in Baghdad in August 2002. Palestinian sources believe he was killed on the orders of Saddam Hussein, but the Iraqi government insisted he had committed suicide. The Guardian wrote on the news of his death: "He was the patriot turned psychopath. He served only himself, only the warped personal drives that pushed him into hideous crime. He was the ultimate mercenary."

10.6 HAMAS Hamas is the Palestinian Sunni Islamic or Islamist organization, with an associated military wing, the Izz ad-Din al-Qassam Brigades, located in the Palestinian territories.

Since June 2007 Hamas has governed the Gaza Strip, after it won a majority of seats in the Palestinian Parliament in the January 2006 Palestinian parliamentary elections and then defeated the Fatah political organization in a series of violent clashes. Israel, the United States, Canada, the European Union, and Japan classify Hamas as a terrorist organization, while Iran, Russia, Turkey, and Arab nations do not.

Based on the principles of Islamic fundamentalism gaining momentum throughout the Arab world in the 1980s, Hamas was founded in 1987 (during the First Intifada) as an offshoot of the Egyptian Muslim Brotherhood. Co-founder Sheik Ahmed Yassin stated in 1987, and the Hamas Charter affirmed in 1988, that Hamas was founded to liberate Palestine from Israeli occupation and to establish an Islamic state in the area that is now Israel, the West Bank, and the Gaza Strip. However, in July 2009, Khaled Meshal, Hamas's political bureau chief, said the organization was willing to cooperate with "a resolution to the Arab-Israeli conflict which included a Palestinian state based on 1967 borders", provided that Palestinian refugees hold the right to return to Israel and that East Jerusalem be the new nation's capital.

The Izz ad-Din al-Qassam Brigades, the Hamas affiliated military wing, has launched attacks on Israel, against both military and civilian targets. Attacks on civilian targets have included rocket attacks and, from 1993 to 2006, suicide bombings. Military targets included Israeli outposts and border crossings and rival Palestinian militias in the occupied territories.

In the January 2006 Palestinian parliamentary elections Hamas won a decisive majority in the Palestinian Parliament, defeating the PLO-affiliated Fatah party. Following the elections, the Quartet (United States, Russia, United Nations, and European Union) conditioned future foreign assistance to the PA on the future government's commitment to nonviolence, recognition of the state of Israel, and acceptance of previous agreements. Hamas resisted such changes, leading to Quartet suspension of its foreign assistance program and Israel imposing economic sanctions against the Hamas-led administration. In March 2007 a national unity government, headed by Prime Minister Ismail Haniya of Hamas was briefly formed, but this failed

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Terrorismto restart international financial assistance. Tensions over control of Palestinian security forces soon erupted into the 2007 Battle of Gaza, after which Hamas retained control of Gaza while its officials were ousted from government positions in the West Bank. Israel and Egypt then imposed an economic blockade on Gaza, on the grounds that Fatah forces were no longer providing security there.

In June 2008, as part of an Egyptian-brokered ceasefire, Hamas ceased rocket attacks on Israel and made some efforts to prevent attacks by other organizations. After a four-month calm, the conflict escalated when Israel carried out a military action with the stated aim of preventing an abduction planned by Hamas, using a tunnel that had been dug under the border security fence, and killed seven Hamas operatives. In retaliation, Hamas attacked Israel with a barrage of rockets. In late December 2008, Israel attacked Gaza, withdrawing its forces from the territory in mid-January 2009. After the Gaza War, Hamas continued to govern the Gaza Strip and Israel maintained its economic blockade. On May 4, 2011, Hamas and Fatah announced a reconciliation agreement that provides for "creation of a joint caretaker Palestinian government" prior to national elections scheduled for 2012. According to Israeli news reports quoting Fatah leader Mahmoud Abbas, as a condition of joining the PLO, Khaled Meshaal agreed to discontinue the "armed struggle" against Israel and accept Palestinian statehood within the 1967 borders, alongside Israel.

10.7 IRANIAN SUPPORT OF TERRORISM Today, Iran feels itself under increasing pressure from the international community by both diplomatic and economic sanctions. From the Stuxnet virus to the assassination of Iranian scientists and the defection of Iranian agents, Iran feels increasingly targeted by Western intelligence services in general and Israel and the United States in particular. Hezbollah and Iran each have their own reasons for executing terrorist attacks targeting Israeli or other Western targets—Iran seeks to avenge attacks on its scientists and sanctions targeting its nuclear program, and Hezbollah seeks to avenge Mughniyeh’s death. This convergence of interests strengthens their long-standing and intimate relationship, making their combined operational capabilities that much more dangerous. Over the past seven months, a spate of terrorist plots targeting U.S. and Israeli foreign interests has illustrated Iran’s propensity for sponsoring attacks abroad. Some were thwarted, including plots in Thailand, Bulgaria, Singapore, Kenya, Cyprus, and Azerbaijan. Others were not, including bombings in India and Georgia. Some of these operations were carried out by Iranian agents, others by Iran’s primary proxy, Hezbollah. A few were joint operations executed by Hezbollah operatives working with Iranian intelligence or members of the Qods Force, an elite branch of Iran’s Islamic Revolutionary Guard Corps (IRGC). Consider that a plot in Turkey involving four members of the Qods Force targeting diplomatic missions in Istanbul was reportedly foiled by Turkish security authorities this March. Some, like one of the plots in Azerbaijan, leveraged relationships with local criminal networks to execute an attack.

The most brazen, and bizarre, was the October 2011 plot to assassinate the Saudi ambassador to Washington. This Qods Force plot against the Saudi diplomat, Director General of MI5 Jonathan Evans told a crowd in June 2012, 2 “leads straight back to the Iranian leadership.… [A] return to State-sponsored terrorism by Iran or its associates, such as Hezbollah, cannot be ruled out as pressure on the Iranian leadership increases.” Of the more recent attacks in India, Azerbaijan, and elsewhere, he noted, “we also face uncertainty over developments in Iran. In parallel with rising concern about Iran’s nuclear intentions, we have seen in recent months a series of attempted terrorist plots against Israeli interests.” Most recently, Israeli officials have linked Hezbollah and Tehran to the suicide bombing that left six Israelis and one Bulgarian dead in Burgas, Bulgaria, last week. Israeli Prime Minister Benjamin Netanyahu told reporters, “We have unquestionable, fully substantiated intelligence


that this was done by Hezbollah backed by Iran.” He highlighted the similarities between the Bulgarian bombing and a plot foiled in Cyprus earlier this month in which Cypriot authorities arrested a Hezbollah operative conducting preoperational surveillance on Israeli flights and tour buses. This should not surprise as Iranian agents have traditionally supported the efforts of trusted proxy groups in attacks spanning the globe, especially when Tehran was under serious international or domestic pressure. Consider that Iran’s record of supporting terrorist attacks includes the 1983 and 1984 bombings targeting U.S. and French forces in Beirut, the 1992 and 1994 attacks against Israeli interests in Argentina, the 1996 bombing against U.S. forces in Saudi Arabia, and a host of other attacks targeting American, French, German, British, Kuwaiti, Bahraini, and other interests in plots from Europe to Southeast Asia to the Middle East.

10.7.1 Hezbollah Hezbollah is a Shi'a Islamic militant group and political party based in Lebanon. Its paramilitary wing is regarded as a resistance movement throughout much of the Arab and Muslim worlds, and is considered more powerful than the Lebanese Army. The governments of the U.S., Netherlands, France, Gulf Cooperation Council, U.K., Australia, Canada, the European Union and Israel classify Hezbollah as a terrorist organization, in whole or in part.

Hezbollah was conceived by Muslim clerics and funded by Iran following the Israeli invasion of Lebanon, and was primarily formed to offer resistance to the Israeli occupation. Its leaders were followers of Ayatollah Khomeini, and its forces were trained and organized by a contingent of 1,500 Iranian Revolutionary Guards that arrived from Iran with permission from the Syrian government. Hezbollah's 1985 manifesto listed its objectives as the expulsion of "the Americans, the French and their allies definitely from Lebanon, putting an end to any colonialist entity on our land", submission of the Phalangists to "just power" and bringing them to justice "for the crimes they have perpetrated against Muslims and Christians", and permitting "all the sons of our people" to choose the form of government they want, while calling on them to "pick the option of Islamic government".

Hezbollah, which started with only a small militia, has grown to an organization with seats in the Lebanese government, a radio and a satellite television-station, and programs for social development. The organization has been called a state within a state. Hezbollah maintains strong support among Lebanon's Shi'a population. Hezbollah fought with Israel in 2006 Hezbollah-Israel War. After 2006–2008 Lebanese political protests and clashes. A national unity government was formed in 2008, giving Hezbollah and its opposition allies control of eleven of thirty cabinets seats; effectively veto power.

Hezbollah receives military training, weapons, and financial support from Iran, and political support from Syria. Following the end of the Israeli occupation of South Lebanon in 2000, its military strength grew significantly. Despite a June 2000 certification by the United Nations that Israel had withdrawn from all Lebanese territory, in August, Lebanon's new Cabinet unanimously approved a draft policy statement which secures Hezbollah's existence as an armed organization and guarantees its right to "liberate or recover occupied lands". After the death of Abbas al-Musawi in 1992, the organisation has been headed by Hassan Nasrallah, its Secretary-General.

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TerrorismCheck Your Progress 1

State whether the following statements are true or false: 1. Hezbollah receives military training, weapons, and financial support from

Iran, and political support from Syria.

2. Hamas is the Palestinian Sunni Islamic or Islamist organization, with an associated military wing, the Izz ad-Din al-Qassam Brigades, located in the Palestinian territories.

3. A national unity government was formed in 2008, giving Hezbollah and its opposition allies control of eleven of thirty cabinets seats; effectively veto power.

10.8 AFGHANISTAN: OSAMA BIN LADEN Osama bin Mohammed bin Awad bin Laden was the founder of al-Qaeda, the Sunni militant Islamist organization that claimed responsibility for the September 11 attacks on the United States, along with numerous other mass-casualty attacks against civilian and military targets. He was a Saudi Arabian, a member of the wealthy bin Laden family, and an ethnic Yemeni Kindite.

He was born in the bin Laden family to billionaire Mohammed bin Awad bin Laden in Saudi Arabia. He studied there in college until 1979, when he joined the mujahideen forces in Pakistan against the Soviets in Afghanistan. He helped to fund the mujahideen by funneling arms, money and fighters from the Arab world into Afghanistan, also gaining popularity from many Arabs. In 1988, he formed al-Qaeda. He was banished from Saudi Arabia in 1992, and shifted his base to Sudan, until US pressure forced him to leave Sudan in 1996. After establishing a new base in Afghanistan, he declared a war against the United States, initiating a series of bombings and related attacks. Bin Laden was on the American Federal Bureau of Investigation's (FBI) lists of Ten Most Wanted Fugitives and Most Wanted Terrorists for his involvement in the 1998 U.S. embassy bombings.

From 2001 to 2011, bin Laden was a major target of the War on Terror, as the FBI placed a $25 million bounty on him in their search for him. On May 2, 2011, bin Laden was shot and killed inside a private residential compound in Abbottabad, Pakistan, by members of the United States Naval Special Warfare Development Group and Central Intelligence Agency operatives in a covert operation ordered by U.S. President Barack Obama.

10.8.1 Osama and the 9/11 After his initial denial, in 2004 Osama bin Laden finally claimed responsibility for the September 11, 2001 attacks in the United States. The attacks involved the hijacking of four commercial passenger aircraft and flying them into the Twin Towers of the World Trade Center in New York City, New York and The Pentagon in Arlington, Virginia, destroying the former, and severely damaging the latter. It resulted in the deaths of 2,973 people and the nineteen hijackers. In response to the attacks, the United States launched the War on Terror to depose the Taliban regime in Afghanistan and capture al-Qaeda operatives, and several countries strengthened their anti-terrorism legislation to preclude future attacks. The CIA's Special Activities Division was given the lead in tracking down and killing or capturing bin Laden.

The Federal Bureau of Investigation has stated that classified evidence linking al-Qaeda and bin Laden to the September 11 attacks is clear and irrefutable. The UK Government reached a similar conclusion regarding al-Qaeda and Osama bin Laden's culpability for the September 11 attacks, although the government report noted that the evidence presented is not necessarily sufficient to prosecute the case.


Bin Laden initially denied involvement in the attacks. On September 16, 2001, bin Laden read a statement later broadcast by Qatar's Al Jazeera satellite channel denying responsibility for the attack. In a videotape recovered by U.S. forces in November 2001 in Jalalabad, bin Laden was seen discussing the attack with Khaled al-Harbi in a way that indicates foreknowledge. The tape was broadcast on various news networks on December 13, 2001. The merits of this translation have been disputed. Arabist Dr. Abdel El M. Husseini stated: "This translation is very problematic. At the most important places where it is held to prove the guilt of bin Laden, it is not identical with the Arabic."

Figure 10.1: 2001 Picture of Bin Laden

In the 2004 Osama bin Laden video, bin Laden abandoned his denials without retracting past statements. In it he said he had personally directed the nineteen hijackers. In the 18-minute tape, played on Al-Jazeera, four days before the American presidential election, bin Laden accused U.S. President George W. Bush of negligence in the hijacking of the planes on September 11. According to the tapes, bin Laden claimed he was inspired to destroy the World Trade Center after watching the destruction of towers in Lebanon by Israel during the 1982 Lebanon War.

Through two other tapes aired by Al Jazeera in 2006, Osama bin Laden announced, "I am the one in charge of the nineteen brothers. [...] I was responsible for entrusting the nineteen brothers [...] with the raids" (May 23, 2006). In the tapes he was seen with Ramzi bin al-Shibh, as well as two of the 9/11 hijackers, Hamza al-Ghamdi and Wail al-Shehri, as they made preparations for the attacks (videotape broadcast September 7, 2006). Identified motivations of the September 11 attacks include the support of Israel by the United States, presence of the U.S. military in the Kingdom of Saudi Arabia, and the U.S. enforcement of sanctions against Iraq.

10.9 EUROPE Terrorism is mostly related to the immigrant population from the Muslim world in Europe, their offspring and a minority of converts. In the 1960s and 1970s Europe’s industrialisation attracted many immigrant workers. The offshoots of this population, from second and third generations, have many problems related to their integration within European countries.

In Europe, radical Islam has different origins, mainly related to the colonial background (France, England) or to the immigration of Muslims in the last few decades from the Moslem world (Germany, Spain). Still, each country has its specific history and its culture of “integration” and radicalisation is related as well to the local, regional history as to the global.

One major factor, besides the discontent of part of the Muslim youth in Europe for social reasons is the crisis of the Muslim countries which is reported in real time by

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Terrorismthe television and the utopia of a neo-umma carried out by it. Two distinct groups appear on the scene. The first is made by a new Muslim middle class who is a minority among the immigrants from Muslim countries in Europe. This new middle class has everything to lose if radicalisation occurs among the Muslims in Europe and a more negative image of Islam and Muslims is widespread among the people. Still, a tiny minority of its members opt for radicalisation and separate from the mainstream Muslim middle class in Europe. The main reason is their identification with the neo-umma in the world at large and in Europe in particular. Seeing their fellow Muslim people downtrodden and stigmatized through racism in Europe and looking on the TV the faith of Muslims in the world at large and the crisis of Muslim societies, they come to the firm belief that Islam is being repressed as much within Europe as without it and in both cases, the oppressors are the “white” Europeans and more generally, the wicked West, mainly America. Compassion, in this situation goes to this imaginary neo-umma rather than to their compatriots: their sufferings in connection with terrorist attacks are minimized in comparison to the plights of the Muslims all over the world.

For the excluded and “disaffected” youth in Europe, the combination of economic deprivation and cultural stigmas makes it much easier for them to become radicalized in the name of Allah. In this case, they come to the conclusion that their sufferings and those of the Muslims in other parts of the world, Palestine, Bosnia, Iraq or Chechnia have the same roots: western fight against Islam. Their enrolment in terrorist networks is based on a strong feeling of victimization which is rooted in their dramatic situation in Europe: in France in the so-called “banlieues” (poor suburbs), in England in poor districts and in many European countries, their segregation in enclaves or ghettoes (or perceived as such by many of them) and the absence of any prospect for a brighter future, all these factor go hand in hand to make this population a fertile ground for radicalisation and in few cases, terrorism. Even though many do not get involved in terrorist activities due to the renewed vigilance of the police and the secret services, still their world outlook is that of deep victimisation and a negative perception of the “white” man.

The two groups, either from the Middle classes or from the excluded categories of people, find a common language through networks and their opposition to the West. The military actions in Afghanistan, Iraq and the Palestinian and Chechnian problems are reminders of the West’s involvement in the fight against Muslim countries.

The predicament of Muslims all over the world is seen through the looking glass of this neo-umma: in countries like Saudi Arabia, Egypt, Turkey and elsewhere, the governments are considered as the “puppets” of the West and should be fought against. In the West itself, the struggle should go on in order to punish both, the Western governments and their “lackeys” in Muslim countries. The globalized neo-umma, unlike the real Muslim communities, does not recognize either frontiers or nations and the ideal is not so much to topple a specific government in a particular country but to set ablaze the entire world in order to promote the neo-califat and bring about the neo-umma within this institution.

In the same fashion as the leftists of the 1970S were self-proclaimed avant-garde of the proletariat, the new radicalized Muslims believe to be the vanguard of the Muslim umma (community) but this creed is not grounded in reality and is simply a mental and imaginary construction with no support in the real world. Therefore the majority of the Muslims who suffer from terrorist acts like Egyptians (terrorism in Charm el Cheikh in August 2005) reject these acts to the utmost but the terrorist groups are a tiny minority who do not follow the majority of Muslims.

Another category of people who become Jihadists in Europe are the converts. Most of the converts adopt a spiritualist Islam which has nothing to do with terrorism. But a tiny minority of them espouses the radical Islam and engages in terrorist activities in order to be part of the neo-umma at war with the perfidious and depraved West. To


these people the West is treacherous and anti-islamic in essence. Their new identity as Muslims is offended by the lot of many Muslims all over the world and the partial and antagonistic attitude of the Western countries towards the plight of the Muslims. They have to prove to themselves and to the others the sincerity of their faith by opposing their former societies and by declaring war to the very same countries where they were born and raised. The chasm between their new faith and the societies into which they were born finds a sacred legitimacy through their identification with the neo-umma. By fighting an impious West they underline their rupture with it and their ties to a new imaginary Islamic community for which they are ready to sacrifice their life and to put to death their fellow countrymen.

10.9.1 Japan Japan has actively contributed to the Bush administration's war on terrorism, going far beyond the financial support it provided during the first Gulf War in 1991 and testing the limits of post-war constitutional prohibitions on the deployment of military forces overseas. This has led some observers to suggest that Japan might be positioning itself to become a more active supporter of U.S. global strategy, a "Britain of Asia." This study challenges this view and finds that less has changed in Japan's overseas deployments than is often claimed. This study identified public opinion, an under-studied factor, as the reason for the modest expansion of Japan's overseas deployments since 9/11 and brings to bear a wealth of data to back up this conclusion. Applying modified conceptions of defensive and offensive realism to public attitudes regarding the use of force for the first time, this study finds that the Japanese "mass public" has increasingly recognized the need to prepare to meet military threats, but views military power as useful only for homeland defense. The public has been consistently skeptical about the utility of offensive military power for promoting democracy or suppressing weapons of mass destruction proliferation or terrorist networks. The invasion of Iraq, for reasons viewed with great skepticism, has caused the Japanese public, like publics in many other countries, to become increasingly distrustful of U.S. foreign policy. This, combined with a growing willingness to provide for its own defense, suggests that Japan may be less willing to support far-flung U.S. military operations in the future and concentrate more on increasing its defense autonomy.

10.9.2 Peru Two major domestic terrorist groups have plagued Peru over the past 20 years, the Sendero Luminoso or "Shining Path" (SL) and the Revolutionary Movement Túpac Amaru (MRTA). On 28 August 2003, the Peruvian Truth and Reconciliation Commission reported that an estimated 69,280 persons were killed in the internal conflict in Peru from 1980 to 2000. Most of the victims were farmers (56%), most attacks occurred in rural settings (79%), and the SL was responsible for most of the deaths (54%). Aggressive anti-terrorism efforts by police and military during this period, often at the expense of basic human rights, also contributed to this large burden of terrorism on Peru. During the 1990s, terrorist attacks in Peru had spread to its urban areas. On 17 December 1996, 22 members of MRTA took over the Japanese ambassador's residence in Lima, holding 72 hostages until the grounds were stormed by Peruvian Special Forces on 23 April 1997. Until recently, emergency planning and preparedness for terrorism-related events in Peru were largely underdeveloped. In the last five years, Peru has taken two key steps towards developing a mature emergency response system, with the establishment of the country's first emergency medicine residency training program and the construction of the first dedicated trauma center in Lima.

10.9.3 Russia Terrorism in Russia has a long history starting from the times of the Russian Empire. Terrorism, in the modern sense, means violence against civilians to achieve political

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Terrorismor ideological objectives by creating fear. Terrorism tactics, such as hostage-taking, were widely used by the Soviet secret agencies, most notably during the Red Terror and Great Terror campaigns, against the population of their own country, according to Karl Kautsky and other historians of Bolshevism.

Starting from the end of the 20th century, significant terrorist activity has taken place in Moscow, most notably apartment bombings and the Moscow theatre hostage crisis. Many more acts of terrorism have been committed in Chechnya, Dagestan, and other parts of the country. Some of them became a matter of significant controversy, since journalists and scholars claimed them to be directed by the Russian secret services, often through their Chechen agent provocateurs.

10.10 US: DOMESTIC TERRORISM The statutory definition of domestic terrorism in the United States has changed many times over the years; also, it can be argued that acts of domestic terrorism have been occurring since long before any legal definition was set forth.

According to a memo produced by the FBI's Terrorist Research and Analytical Center in 1994, domestic terrorism was defined as "the unlawful use of force or violence, committed by a group(s) of two or more individuals, against persons or property to intimidate or coerce a government, the civilian population, or any segment thereof, in furtherance of political or social objectives."

Under current United States law, set forth in the USA Patriot Act, acts of domestic terrorism are those which: "(A) involve acts dangerous to human life that are a violation of the criminal laws of the United States or of any State; (B) appear to be intended— (i) to intimidate or coerce a civilian population; (ii) to influence the policy of a government by intimidation or coercion; or (iii) to affect the conduct of a government by mass destruction, assassination, or kidnapping; and (C) occur primarily within the territorial jurisdiction of the United States."

10.10.1 Terrorist Organizations

Animal Liberation Front

Animal Liberation Front (ALF) is a name used internationally by activists who engage in direct action against persons and/or organizations that the activists perceive are harming animals. This includes removing animals from laboratories and fur farms, and sabotaging facilities involved in animal testing and other animal-based industries. According to ALF statements, any act that furthers the cause of animal liberation, where all reasonable precautions are taken not to endanger life, may be claimed as an ALF action. The group is listed by the U.S. Department of Homeland Security as a domestic terrorist organization.

Alpha 66 and Omega 7

Alpha 66 (still existent) and Omega 7 (now defunct) were two affiliated Cuban exile action groups who have carried out many bombings and acts of sabotage. While many of these attacks have historically been directed at Cuba and the Castro government, many of them occurred domestically, especially during the period of Cuba-US diplomacy and negotiations in the 1970s known as "el Diálogo" (the dialogue) when powerful anti-Castro figures in Miami attempted to terrorize those in their community who favoured a more moderate approach. Luciano Nieves, for instance, was killed for advocating peaceful coexistence with Cuba. WQBA-AM news director Emilio Milian lost his legs in a car bomb after he publicly condemned Cuban exile violence. These cases of terrorism were documented extensively in the book Miami by Joan Didion. Human Rights Watch released a report in 1992 in which they claimed that the more


extreme exiles have created a political environment in Miami where "moderation can be a dangerous position."

Army of God

The Army of God (AOG) is a loose network of individuals and groups connected by ideological affinity and the determination to use force to end abortion in the United States. Acts of anti-abortion violence increased in the mid-1990s culminating in a series of bombings by Eric Robert Rudolph, whose targets included two abortion clinics, a gay and lesbian night club, and the 1996 Olympics in Atlanta. Letters sent to newspapers claim responsibility for the bombing of the abortion clinics in the name of the Army of God.

Aryan Nations

Aryan Nations (AN) is a white nationalist neo-Nazi organization founded in the 1970s by Richard Girnt Butler as an arm of the Christian Identity group known as the Church of Jesus Christ–Christian. As of December 2007 there were two main factions that claimed descent from Butler's group. The Aryan Nations has been called a "terrorist threat" by the FBI, and the RAND Corporation has called it the "first truly nationwide terrorist network" in the USA.

Black Liberation Army

A splinter group made up of the more radical members of the Black Panther Party, the Black Liberation Army (BLA) sought to overthrow the US government in the name of racial separatism and Marxist ideals. The Fraternal Order of Police blames the BLA for the murders of 13 police officers. According to a Justice Department report on BLA activity, the group was suspected of involvement in over 60 incidents of violence between 1970 and 1980.

The Covenant, the Sword, and the Arm of the Lord

The Covenant, The Sword, and the Arm of the Lord (CSA) was a radical Christian Identity organization formed in 1971 in the small community of Elijah in southern Missouri, United States.

Earth Liberation Front

The Earth Liberation Front has been classified as a top "domestic terror" threat in the United States by the Federal Bureau of Investigation since March 2001.

Jewish Defense League

The Jewish Defense League (JDL) was founded in 1969 by Rabbi Meir Kahane in New York City. FBI statistics show that, from 1980 to 1985, 15 terrorist attacks were attempted in the U.S. by JDL members. The FBI’s Mary Doran described the JDL in 2004 Congressional testimony as "a proscribed terrorist group". The National Consortium for the Study of Terror and Responses to Terrorism states that, during the JDL's first two decades of activity, it was an "active terrorist organization." Kahane later founded the far right Israeli political party Kach.

Ku Klux Klan

During reconstruction at the end of the civil war the original KKK used domestic terroristic methods against the Federal Government and freed slaves. During the 20th century, leading up to civil rights movement, unrelated Ku Klux Klan (KKK) groups used threats, violence, arson, and murder to further its anti-Catholic, anti-Communist, anti-semitic, and white-supremacist agenda. Domestic terrorists with agendas similar to the KKK include neo-Nazis and white power skinheads.

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Terrorism10.11 NUCLEAR TERRORISM Nuclear terrorism denotes the explosion of a yield-producing nuclear bomb containing fissile material by terrorists. Some meanings of nuclear terrorism comprise the disruption of a nuclear ability and/or the explosion of a radiological scheme, colloquially called a dirty bomb, but agreement is lacking. In legal terms, nuclear terrorism is an offense committed if a person unlawfully and intentionally “uses in any way radioactive material … with the intent to cause death or serious bodily injury; or with the intent to cause substantial damage to property or to the environment; or with the intent to compel a natural or legal person, an international organization or a State to do or refrain from doing an act”, according to the 2005 United Nations International Convention for the Suppression of Acts of Nuclear Terrorism.

The probability of terrorist groups consuming nuclear weapons has been a threat in American rhetoric and culture. It is well-thought-out reasonable that terrorists could attain a nuclear weapon. In 2011, the British news agency, the Telegraph, received leaked documents regarding the Guantanamo Bay interrogations of Khalid Sheikh Mohammed. The documents cited Khalid saying that, if Osama bin Laden is captured or killed by the coalition of the willing, an al-Qaeda sleeper cell will detonate a "weapon of mass destruction" in a "secret location" in Europe, and promised it would be "a nuclear hellstorm". On the other hand in the face of some stated thefts and marketing of small amounts of fissile material, there is no credible indication that any terrorist group has ever prospered in gaining the essential multi-kilogram dangerous mass quantities of weapons grade plutonium, required to make a nuclear weapon.

10.11.1 Scope Nuclear terrorism could include:

Acquiring or fabricating a nuclear weapon Fabricating a dirty bomb Attacking a nuclear reactor, e.g., by disrupting critical inputs (e.g. water supply) Attacking or taking over a nuclear-armed submarine, plane or base.

Nuclear terrorism, according to a 2011 report published by the Belfer Center for Science and International Affairs at Harvard University, can be executed and distinguished via four pathways:

The use of a nuclear weapon that has been stolen or purchased on the black market

The use of a crude explosive device built by terrorists or by nuclear scientists who the terrorist organization has furtively recruited

The use of an explosive device constructed by terrorists and their accomplices using their own fissile material

The acquisition of fissile material from a nation-state.


Fill in the Blanks:

1. ........................... denotes the detonation of a yield-producing nuclear bomb containing fissile material by terrorists.

2. The ........................... is a loose network of individuals and groups connected by ideological affinity and the determination to use force to end abortion in the United States.

3. ........................... were two affiliated Cuban exile action groups who have carried out many bombings and acts of sabotage.


10.12 LET US SUM UP This review of patterns and trends in the Middle East substantiates the author’s speculations that the new terrorism is evolving in the direction of netwar, along the following lines:

An increasing number of terrorist groups are adopting networked forms of organization and relying on information technology to support such structures.

Newer groups (those established in the 1980s and 1990s) are more networked than traditional groups.

A positive correlation is emerging between the degree of activity of a group and the degree to which it adopts a networked structure.

The likelihood that young recruits will be familiar with information technology implies that terrorist groups will be increasingly networked and more computer-friendly in the future than they are today.

This overview of Middle Eastern terrorist groups indicates that modern communications technologies, especially the Internet and associated technical assets, have facilitated the evolution of terrorist groups into multi-organisational networks that use IT for decision making and other functional internal purposes. This, in and of itself, has implications for counterterrorism efforts. Yet, the possibility that the technical assets and know-how gained by terrorists for organisational support can serve offensive purposes as well—an Internet connection can be used for both coordination and disruption or destruction—has garnered much more public attention. While that indeed poses a recognizable and frightening threat, the significance of the evolution of the groups themselves, as made possible by the Internet and illustrated above, must be neither overlooked nor underestimated.

10.13 LESSON END ACTIVITY Prepare a project on the various terrorist attacks including the reasons and source of such attacks.

10.14 KEYWORDS Hamas: It is the Palestinian Sunni Islamic or Islamist organization, with an associated military wing, the Izz ad-Din al-Qassam Brigades, located in the Palestinian territories.

Hezbollah: He is a Shi'a Islamic militant group and political party based in Lebanon.

Animal Liberation Front (ALF): It is a name used internationally by activists who engage in direct action against persons and/or organizations that the activists perceive are harming animals.

Army of God (AOG): It is a loose network of individuals and groups connected by ideological affinity and the determination to use force to end abortion in the United States.

Aryan Nations (AN): It is a white nationalist neo-Nazi organization founded in the 1970s by Richard Girnt Butler as an arm of the Christian Identity group known as the Church of Jesus Christ-Christian.

Nuclear terrorism: It denotes the detonation of a yield-producing nuclear bomb containing fissile material by terrorists.

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Terrorism10.15 QUESTIONS FOR DISCUSSION 1. Describe traditional group and new-generation groups.

2. Discuss the use of information technology by Middle Eastern terrorist groups.

3. Discuss Iranian support of terrorism.

4. Write short notes on Osama and the 9/11.

5. What are the various terrorist organizations in US?

6. What do you mean by nuclear terrorism? Discuss its scope.


CYP 1

1. True

2. True

3. True

CYP 2

1. Nuclear terrorism

2. Army of God (AOG)

3. Alpha 66 and Omega 7






Model Question Paper

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MODEL QUESTION PAPER BBA (Annual Pattern)

Third Year

Sub: Principles of Travel and Tourism Operations and Aviation Safety

Time: 3 hours Total Marks: 100

Direction: There are total eight questions, each carrying 20 marks. You have to attempt any five questions.

1. What do you understand by tour and travel?

2. Describe the principles of the tourism.

3. Explain in details the scope and operation of the tourism.

4. What is the scope of the travel and tourism in India?

5. What is the importance of the travel agent and tour operator?

6. Discuss the use of information technology by Middle Eastern terrorist groups.

7. Explain Iranian support of terrorism.

8. Write short notes on Osama and the 9/11.

International Business

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