Role of travel agents & tour operators in hospitality industry

A

RESEARCH PROJECT

SUBMITTED FOR THE PARTIAL REQUIREMENT AND

FULFILMENT OF THE BHM & CT PROGRAM AT

UTTEAR PRADESH TECHNICAL UNIVERSITY

Supervised by: Submitted by: PROF. Dr. NEERAJ GUPTA PANKAJ SAH

J. P. INSTITUTE OF HOTEL MAMNAGEMENT & CATERING TECHNOLOGY, MAWANA ROAD, MEERUT

SESSION : 2014 -15

ROLE OF TRAVEL AGENTS & TOUR OPERATORS IN HOSPITALITY INDUSTRY

AABSTRACT

SUBMITTED FOR THE DEGREE OFBACHELOR

OFHOTEL MANAGEMENT & CATERING TECHNOLOGY

Supervised by: Submitted by: PROF. Dr. NEERAJ GUPTA PANKAJ SAH

J. P. INSTITUTE OF HOTEL MAMNAGEMENT & CATERING TECHNOLOGY, MAWANA ROAD, MEERUT

SESSION : 2014-15

Dr. Neeraj Gupta CERTIFICATE

This is to certify that Research Project entitled “ROLE OF TRAVEL AGENTS & TOUR OPERATORS IN HOSPITALITY INDUSTRY“ has

been completed by Pankaj Sah under my supervision. To the best of my

knowledge the present study is an original and genuine research work and

has not been submitted in parts or in full, for the award of any degree

anywhere.

I recommend the Research Project for the award of “Bachelor Degree in Hotel management & catering Technology”

PANKAJ SAH

PREFACEIn the first chapter efforts has been made to understand the concept

of TRAVEL AGENTS & TOUR OPERATORS IN HOSPITALITY INDUSTRY. The Second chapter presents the research design of the

study. The Third chapter throws light on…………. Chapter fourth presents………………... In chapter Fifth…………………………... The last chapter summaries the conclusions of the present study and offer the

suggestions for the improvement of ………………………………….

I express my heartfelt thanks to the officers and staff of …..not only

responding positively to my various queries, but also for providing me the

required resources material during my field survey.

I also express my sense of gratitude to Dr. Neeraj Gupta for

providing me the required statistical data and giving me his concrete and

constructive suggestions in completing my research work smoothly.

It is my privilege to thank Mr. Rohit Dayal, Director, and all the staff

member of J.P. IHM, Meerut to give their valuable guidance at every stage

during my research work

No amount of words can adequately express the debt, I owe to my

revered supervisor Dr. Neeraj Gupta, for his constant encouragement,

able guidance and thought provoking discussion during the course of the

present investigation.

My natural and spontaneous thanks to my respected Dr. Neeraj

Gupta for his enlightening, thought provoking and pains taking guidance

and supervision at every stage of this research work.

PANKAJ SAH

CONTENTS

Page No. PREFACE

Certificate1. INTRODUCTION 1.1 Introduction to Tourism Industry 1.1.1 Concept of Tourism Industry 1.1.2 Components of Tourism Industry 1.1.3 Management of Tourism Industry 1.1.4 Type of Tourism Industry 1.1.5 Methods of Tourism Industry

1.2 Introduction to travel agents & tour operators

1.2.1 Concept of Travel Agents & Tour Operators 1.2.2 Components of Travel Agents & Tour Operators 1.2.3 Management of travel agents & tour Operators 1.2.4 Type of Travel Agents & Tour Operators 1.2.5 Further Prospectus

2. RESEARCH DESIGN

2.1 Need & Importance of Study 2.2 Scope of the Study2.3 Objectives of the Study2.4 Research Methodology

2.5 Limitations of the Study

3. Travel Agents & Tour Operators are beneficial for tourism

3.1 Personal Sale3.2 The presentation sales call3.3 Concept of tour operator’s growth & future prospect 3.4 Working pattern of Travel Agents3.5 Working pattern of Tour Operators3.6 Effects of Travel Agents & Tour Operators on Tourism Market

4. Travel Agent in tourism industry 4.1 function of tourism industry

4.2 market for tourism industry

4.3 pattern for travel agent

4.4 preparations for purpose

5. Internal marketing & sales by travel agent & tour operators

5.1 Marketing and Sales by Travel Agents & Tour Operators 5.2 Pattern used by travel agents & tour operators 5.3 Organizing the Travel Agents & Tour Operators 5.4 The Role Of Genaral Manager In Internal Sales

5.5 Suggestive Selling

6. CONCLUSION AND SUGGESTIONS 6.1 Conclusion

6.2 Suggestions 6.3 References

6.4 Bibliography

Chapter- 1 (a)

Introduction to tourism industry -

INTRODUCTION TO TOURISM INDUSTRY

The tourism sector is probably the only service sector that provides concrete and quantified trading opportunities for all nations, regardless of their level of development. However, it is also a sector where there is clearly an uneven distribution of benefits, which is threatening the social, economic and environmental sustainability of tourism in some developing countries. For many developing countries tourism is one of fundamental pillars of their development process because it is one of the dominant activities in the economy, while for others, particularly by islands and some small economies, it is the only source of foreign currency and employment, and therefore constitutes the platform for their economic development.

Against this background, part I presents an overview of the most important trends and features of international tourism and the most influential factors affecting the performance, efficiency and sustainability of tourism transactions in developing countries. Part II presents an overview and examples of the main issues affecting the viability of tourism in developing countries, including (a) the impact of the leakage effect which is adversely affecting them in taking advantage of commercial opportunities; and (b) the anti-competitive practices affecting tourism viability and performance in different segments of the tourism sector, as well as in other sectors closely linked to travel and tourism. Part III presents some reflections about the GATS 2000 negotiations as a possible turning point for making effective the increasing participation of developing countries in international tourism flows in a sustainable perspective. In this connection, some comments are provided on the impact of the proposed Annex on Tourism on the economic, social and environmental sustainability of tourism.

1.1.1 CONCEPT OF TOURISM INDUSTRY

I. Salient trends and features of the performance of developing countries in international tourism

1. Trends and features of international tourism: some indicators showing the sustainability of tourism in developing countries

(a) Overall trends in international tourism

"International tourism highlights 2000" of the World Tourism Organization (OMT/WTO) reports that during 1998 total tourism receipts, including those generated by international fares, were the most important export revenue worldwide. Export revenue that year amounted to an estimated US$ 532 billion, surpassing all the other international trade categories (see figure 1). International tourism totalled to US$ 441 billion and the international transport of passengers US$ 91 billion, which corresponded to 7.9 and 1.3 per cent respectively of worldwide exports of good and services. According to the OMT/WTO Tourism Economic Report 1998, tourism is one the five top export categories and the main source of foreign currency for at least 38 per cent of them.

(b) Tourism spenders

The world’s top tourism spender during 1998 was by far the European Union, with an over US$ 160 billion. The most important spenders among its members were Germany (2nd world ranking), US$ 46.9 billion; the United Kingdom (4th), US$ 28.8 billion; France (5th), US$ 17.8 billion; Italy (6th), US$ 17.7; and Netherlands (7th), US$ 11.0 billion. The other members’ expenses during the same year ranged between US$ 8.8 and 1.8 billion. During the same year, the United States (1st in world ranking by individual countries) spent US$ 56.1 billion; Japan (3rd), 28.8 billion; Canada (8th) US$ 10.8 billion; China (9th), US$ 9.2 billion; Russian Federation (13th) US$ 8.3 billion; Switzerland (14th), US$ 7.1 billion; and Australia, US$ 5.4 billion. Also during the same year 45 countries reported more that US$ 1 billion in international tourism expenditure

(c) International tourist arrivals

Preliminary figures for tourist arrivals for 1999 show that these arrivals totalled 664 million. The distribution and share are presented in figure 2.

(d) Tourism trends and best-performing countries in developing regions between 1997 and 1999

Africa. The African region showed a growth rate of 7.8 per cent in the number of arrivals, nearly twice the world average. There is a high concentration of international tourism arrivals in this region, bound for destinations in the north and south of the continent. The best-performing countries in terms of the increase in the number of arrivals included Morocco (18 per cent), India (11 per cent) and Zambia (26 per cent), while the important tourism destinations of Tunisia (3.4 per cent) and South Africa (6 per cent) continued to show steady gains.

Americas. The rate of growth for the whole region 2.4 per cent was lower than the world average, mainly owing to flat results for South American countries (-1 per cent) and Mexico (-2.9 per cent). Central America fared much better, especially Guatemala (29 per cent) and El Salvador (21 per cent). Results in the Caribbean were mixed, with Cuba (12 per cent) and the Dominican Republic (15 per cent) among the big winners and Puerto Rico (-11 per cent) among the losers.

East Asia/Pacific. After two years of decreasing tourist arrivals, East Asia and the Pacific bounced back strongly in 1999, attracting nearly 10 million more tourists than the previous record, set in 1998. Growth was widespread, with especially good results in Malaysia (43 per cent), Cambodia (29 per cent), Viet Nam (17 per cent), Singapore (11 per cent), Thailand (10 per cent), Republic of Korea (10 per cent), China (8 per cent) and Hong Kong, China (18 per cent).

Europe. Overall, tourism to Europe grew by 2.7 per cent in 1999, with results mixed according to region. In this region some economies in transition were affected by the Kosovo crisis and instability in the Russian market, which caused problems for mature destinations in Central and Eastern Europe such as Hungary (-14 per cent), Poland (-4.4 per cent) and the Czech Republic (-1.8 per cent). However, emerging destinations managed to attract the interest of travelers, for example, Estonia (15 per cent), Kyrgyzstan (17 per cent) and Georgia (21 per cent), as well as Russian Federation (17 per cent) and Ukraine (21 per cent).

Middle East. The Middle East is one of the world's smallest regions, receiving nearly 18 million tourists in 1999, but it also had the fastest growth rate with

arrivals up by 16 per cent. Egypt, which represents a quarter of the regional total, recorded a spectacular growth rate of almost 40 per cent and a record number of tourist arrivals that far exceeds the totals achieved in its best year, 1997. Dubai, Lebanon and the Syrian Arab Republic also fared well, with arrivals increasing by 14, 12 and 9 per cent respectively. The Libyan Arab Jamahiriya registered an increase of 25 per cent.

South Asia. Tourism increased in most countries in this region, resulting in an increase of 8.3 per cent over the previous year’s results. India registered an increase of 5.2 per cent, while arrivals in the Islamic Republic of Iran rose by 16.5 per cent, in Sri Lanka by 14.4 per cent and in Maldives by 8.6 per cent.

(e) International tourism receipts Preliminary results processed by the OMT/WTO indicate that during 1999 tourism receipts worldwide amounted to US$ 455 billion and a further US$ 93 billion. In 59 countries the receipts amounted over US$ 1 billion.

COMPONENTS OF TOURISM INDUSTRY

Some indicators about the sustainability of international tourism in developing countries.

(a) Importance and impact of export revenues from tourism for developing countries

During the period 1995-1998, tourism revenues were one of the five leading sources of export revenue for 69 developing countries. Among the latter, tourism revenue was the main source of foreign currency in 28 countries, its share in total exports ranging between 79 and 20 per cent; in 27 countries it accounted for between 20 and 10 per cent; and in the 24 remaining countries it was around 10 per cent.

The contribution of export revenues to gross domestic product (GDP) was equally important and accounted for between 82.29 per cent (in Maldives) and 30 per cent (in Samoa). In the second group the contribution of export revenues to GDP is between 30 and 10 per cent and in the remaining countries under 10 per cent. One aspect to be underlined is that although the contribution of tourism revenues is important in all these countries, its contribution to GDP is declining as the economies become more diversified. The best examples of this are Mauritius, the Dominican Republic and Tunisia.

(b) The particular `situation of LDCs

Although only 0.5 per cent of the world’s exports of services originate in the LDCs, international services are an important part of the economies of those countries. In 1998, services accounted for 20 per cent of the LDCs' total exports of goods and services. However, in 13 of the 49 LDCs services export receipts exceeded merchandise export receipts and in all but three of those the share of tourism services exports in total foreign exchange earnings was more than twice the share of merchandise exports.

The share of the LDCs in the world’s exports of international tourism services was 0.6 per cent in 1988 (with 2.4 million international tourist arrivals) and 0.8 per cent in 1998 (5.1 million). During the 1990s tourist flows to the LDCs increased more rapidly than tourist flows to the rest of the world. This growth was particularly strong in seven countries (Cambodia, Mali, Laos People's Democratic Republic, Myanmar, Samoa, Uganda, United Republic of Tanzania), which hosted over 1.2 million visitors in 1998, in comparison with 0.4 million in 1992. During that period, tourism growth was much slower in several LDCs, while a decrease was observed in a number of countries that suffered socio-political and economic instability.

The growth of international tourism receipts in the LDCs was also quite rapid during the 1990s: total receipts more than doubled between 1992 and 1998 (from US$ 1 billion to 2.2 billion). There is a great degree of concentration in the distribution of tourism receipts among the LDCs: five countries (Cambodia, Maldives, Nepal, Uganda, United Republic of Tanzania) accounted for 51 per cent of the total tourism receipts of the group in 1998. Particularly strong, over the decade, was the growth in international tourists’ expenditure in Cambodia, the United Republic of Tanzania, Myanmar, Bangladesh, Samoa, Uganda and Haiti.

Tourism is the first source of foreign exchange earnings in the whole group of 49 LDCs, aside from the petroleum industry, which is concentrated in only three LDCs (Angola, Yemen, Equatorial Guinea): the combined tourism export receipts of all LDCs in 1998 accounted for 16.2 per cent of the total non-oil export receipts of the LDCs, thus exceeding the second and third largest non-oil export sectors (cotton and textile products) by 39 per cent and 82 per cent, respectively. c. Level of performance and sustainability of tourism in developing countries

The proper functioning of the tourism economy is linked to that of many other related economic activities, which accounts for the importance of its economic, social and environmental sustainability. As a matter of fact, the extent to which

the business operations of international tourism, backward and forward are linked with other sectors will determine the level of performance and profitability of tourism, the extent of multiplier and spillover effects, and the retention of value added, i.e. the leakage effect. The sectors producing goods and services are linked backwards with tourism in catering for the needs of tourists and tourism operators, e.g. agriculture and food-processing industries, and other manufacturing industries providing furniture, construction materials and other articles required by tourism establishments. Similarly, many other services, such as transport, business services, financial services, professional services, construction design and engineering, environmental services, security services and government services, also ensure the efficient performance of tourism operators. Some of these sectors are also crucial for the proper linkage of tourism with foreign markets (forward linkages) because they constitute the platforms for "taking off" and for keeping the national tourism providers fully integrated with international tourism flows.

Many developing countries have found important to improve the linking of tourism (forward and backward) with the other sectors of the economy as one of the foundations of tourism development policies, so as to capitalize on the benefits of the globalization and internationalization of markets. Successful experiences of small economies and islands that have recently become emerging tourism destinations, such as Mauritius, Maldives, the Dominican Republic and other Caribbean islands, attest to the vital importance of the proper linkage of tourism with the rest of the economy, in their capacity of retaining value added, e.g., reducing leakages. Despite developing countries efforts to develop the most suitable domestic policy environment, the economic sustainability of tourism is being undermined by external factors beyond their control, notably the predatory behaviour of integrated suppliers which enjoy a dominant position in the originating markets of tourism flows.

II. Key issues with special impact on the social, economic and environmental sustainability of tourism

This part presents an overview and illustration of the main issues affecting the viability of tourism in developing countries, including (a) the leakage effect produced by their structural vulnerabilities and their difficulties in taking advantage of commercial opportunities; and (b) anti-competitive practices affecting tourism viability and performance in different segments of the tourism sector, as well as those in other sectors closely linked to travel and tourism.

1. Leakages from tourism in developing countries

As a modality of international commerce, tourism involves not only inflows of foreign financial resources but also outflows, referred to herein as "leakages". When they exceed specific levels, these outflows can significantly neutralize the positive financial effect of international tourism. Leakage is the process whereby part of the foreign exchange earnings generated by tourism, rather than being retained by tourist-receiving countries, is either retained by tourist-generating countries or repatriated to them in the form of profits, income and royalty remittances, repayment of foreign loans, and imports of equipment, materials, capital and consumer goods to cater for the needs of international tourist and overseas promotional expenditures.

Leakages can be divided into three categories: internal leakage or the "import-coefficient” of tourism activities; external leakage or pre-leakage, depending on the commercialization mode of the tourism package and the choice of airline; and invisible leakage or foreign exchange costs associated with resource damage or deterioration.

Internal leakages can be measured by establishing “satellite accounts” within national accounting and survey procedures to detail all tourism-related economic activities. It is a normal effect present in both developed and developing countries. In principle, import-related leakages are highest where the local economies are weakest owing to sparse factor endowment or inadequate quality of goods and services. The average leakage for most developing countries today is between 40 and 50 percent of gross tourism earnings for small economies and between 10 and 20 percent for most advanced and diversified developing countries. Importantly for LDCs, tourism import-related leakages are often inferior to other economic activity leakages, including manufacturing and, in some cases, agriculture, thus confirming tourism as a choice sector of development for which they possess comparative advantages in many areas.

A first step in reducing internal leakage is to identify what levels are appropriate given the economic structure of a country and then to ensure that effective leakage remains near this objective range while strategies to build up the local supply capacity are put in place. Although restrictive trade policies can reduce the size of the market, it is important to note that import openness tends to facilitate the leakage effect unless the economy has already in place a structure capable of reacting to the competitive stimulus of imports, which is usually not the case in LDCs.

External leakage or pre-leakage is much more difficult to measure and relates to the proportion of the total value added of tourism of services actually captured by

the servicing country. To the extent that developing countries have limited access to commercialization channels in their target markets, they can only offer base prices to intermediaries that capture the mark-up on those services. Observed differences between paid and received prices for developing country tourism services (lodging, food, entertainment, etc.) suggest external leakage or pre-leakage levels of up to 75 percent. In some cases, base prices do not allow for the economic sustainability of projects, and normally do not contemplate replacement costs associated with resource depletion. This leads to problems of infrastructure and environmental sustainability, which tend to be overlooked in view of the short-term importance of crucial foreign exchange inflows.

As a flow variable, leakage levels do not have a static effect. They vary in time depending on:

(a) The stage or cycle point of the tourism industry. For example, a nascent tourism industry tends to require large amounts of one-time imports, whereas loan grace periods may allow for a decrease in leakage during the first few years of operation. During a maturity phase leakage may increase as large sums are invested in marketing, rehabilitation of facilities and upgrading of products provided, etc.

(b) The evolution of the economy to provide new services and products resulting from demand from the tourism sector. The import of products and services initially not available should trigger enough entrepreneurial response to enable these to be provided locally, thus allowing for a lessening of leakage. It is therefore a main objective of leakage limitation to provide and promote these links between domestic industry and tourism. For example, in the Dominican Republic leakages diminished between 1990 and 1995 as local industry became increasingly interested in servicing the tourism market. The largest companies have now created subsidiaries specifically for this purpose.

Another factor to be evaluated in identifying appropriate leakage levels is the type of tourism being promoted. High-income tourism, because it requires the provision of very high quality and high priced goods, may actually result in increased leakage in some cases despite of the higher income it may generate. Mass tourism could have higher potential for leakage than ecological or adventure tourism because the latter value and consume local resources as part of the tourism experience. However, low-leakage tourism can also equate to low-income tourism, resulting in lower total income and therefore limiting the possibilities for expansion and development by other sectors of the receiving

country’s economy. In order to correctly evaluate the return on investments it is necessary to carry out a cost-of-opportunity study that will establish a “leakage break-even point” as a function of the country’s economic capacity to serve different types of tourism and choose the type most suitable for a project or country.

Leakage effects on tourism net income levels are nonetheless offset by increased value added or volume. As an example of the positive outlook for LDCs, value added in tourism, measured as tourism income per tourist arrival (Yt/At) has grown by over 100 percent in 21 (almost half) of the LDCs surveyed between 1998 and 1992 (see table 1).

Interestingly, growth in income per tourist appears to bear no clear relationship to the level of or growth in arrivals (see graph 1). This suggests that growth in income per tourist is not a function of volume, and has therefore grown basically because of a favourable quality/price ratio. This also confirms the enormous diversity of situations present in LDCs and their tourism industries; but, in general, as value added grows, the potential for leakage lessens.

Table 1Trends in Tourist Arrivals and Income per Tourist for LDC's 1992/1998.

Tourist Arrivals (000)

Tourist Arrivals (000)

Tourism Income (Um)

Tourism Income (USm)

Income per

Tourist (000)

Income per

Tourist (000)

Growth in tourist arrivals

Growth in

income per

touristAt At Yt Yt Yt/At Yt/At

1992 1998 1992 1998 1992 19981998/19

92*1998/19

92*Burundi 86 15 4 2 0.05 0.13 -83% 187%

Comores 19 27 8 26 0.42 0.96 42% 129%Tanzanie 202 447 120 431 0.59 0.96 121% 62%Kiribati 4 5 1 2 0.25 0.40 25% 60%

Haiti 90 150 38 96 0.42 0.64 67% 52%Maldives 236 403 113 292 0.48 0.72 71% 51%Afganistan 6 4 1 1 a/ 0.17 0.25 -33% 50%Sao Tome Principe 3 2 2 2 a/ 0.67 1.00 -33% 50%Lesotho 155 115 19 20 0.12 0.17 -26% 42%

Ouganda 92 238 38 135 b/ 0.41 0.57 159% 37%

Samoa 38 71 17 43 0.45 0.61 87% 35%Yemen 72 81 47 69 0.65 0.85 13% 30%Bhutan 3 5 3 6 1.00 1.20 67% 20%Ethiopie 83 121 23 40 0.28 0.33 46% 19%

Cambodia 88 220 50 143 0.57 0.65 150% 14%Mali 38 85 11 28 0.29 0.33 124% 14%

Burkina Faso 92 140 24 39 0.26 0.28 52% 7%Tchad 17 8 21 10 1.24 1.25 -53% 1%Djibouti 28 19 6 4 0.21 0.21 -32% -2%Gambie 64 87 27 33 0.42 0.38 36% -10%Cap Vert 19 52 7 17 0.37 0.33 174% -11%

Benin 130 152 32 33 0.25 0.22 17% -12%Salomón Islands 12 16 6 7 0.50 0.44 33% -13%Nepal 334 435 110 124 0.33 0.29 30% -13%

Vanuatu 43 51 56 52 1.30 1.02 19% -22%Madagasc

ar 54 133 39 74 0.72 0.56 146% -23%Niger 13 18 17 18 1.31 1.00 38% -24%

Zambia 159 382 51 90 0.32 0.24 140% -27%Central African

Republic 7 20 3 6 0.43 0.30 186% -30%Malawi 150 215 8 8 0.05 0.04 43% -30%Sudan 17 34 5 6 0.29 0.18 100% -40%

Rep. Dem. Laos 30 260 18 68 0.60 0.26 767% -56%

Myanmar 27 194 16 35 0.59 0.18 619% -70%Rep. Dem.

Congo 22 32 7 2 0.32 0.06 45% -80%Togo 49 96 39 15 0.80 0.16 96% -80%

Guinea 33 99 11 6 0.33 0.06 200% -82%

However, for varying reasons, including differing lengths of stay, very few countries have achieved income-per-tourist levels of above US$ 1000. The growth (calculated as the simple growth rate for 1998/1992) of the middle-income tourism category of has been higher not only for arrivals (a factor of 2 versus

1.75) but also for combined income per tourist category (a factor of 4.9 versus 2), as can be seen in table 2. This indicates that the primary competitive segment for LDCs, as well as the segment where most opportunities for growth in value added exist, tends to be in this category of pricing.

Table 2Number of countries with high-and middle-income tourism, 1988-1998

Number of countries with:

Year

Income per tourist

>USD1000

Combined income, US$

(millions)Combined

arrivals (000)1988 4 62 581992 4 971998 7 162 118growth % factor 98/92 1.75 2.6 2.0

Income per tourist > USD

500

Combined income, US$

(millions)Combined

arrivals (000)1988 8 152 3821992 14 4381998 16 1478 1888growth% factor 98/92 2 9.7 4.9Source: Calculations based on World Tourism Organization statistics.

Tourism policy should therefore be based on the premise that although leakage is an intrinsic element of international tourism, and increased value added will also benefit the economy, leakage-containment measures have multiplicative effects that will allow developing countries to maximize the financial benefits to be derived from an expansion of tourism. A study on Indonesia showed that the tourism multiplier (1.59) was the highest of all categories, including final demand, and exhibited strong links to the agricultural sector, on which it had no direct effect at all.

To the extent that leakages lead to a definition of economic opportunities it can be useful as a strategic blueprint for further economic development. Domestic policies in developing countries against leakages from international tourism should include (i) the provision of incentives to reinvest profits and potential cash

transfers that otherwise would be invested abroad; (ii) the enhancement of the capacity of tourist destinations for intensifying the production of goods and services required by the tourism sector; (iii) the provision of incentives to domestic investors to expand their participation in tourism and iv) the enforcement of domestic competition policy against anti-competitive practices by tour operators.

As regards external leakages, most issues address points of discussion under the GATS Annex on tourism in the WTO, such as (i) local and international competition policy, particularly with regard to market access issues and best business practices in relation to regulations on contractual practices; and (ii) ecological and economic sustainability and the valuation and use of non-tradable resources.

As such, a policy to reduce leakages and thus to improve the chances for a more viable tourism sector, should be based on the premise that leakages can be managed and need to be reduced from its present levels, where combined visible internal and external leakage can easily reach 75 percent of the market value of paid services. Management of leakages, should allow countries to profit as best as they can from the market expansion and competitive factor that tourism demand represents for local industry and the local economic structure in all fairness to least developed and developing countries, without engaging in anti-competitive practices that contradict other WTO principles, and reduce the contribution of tourism to sound economic development.

1.1.3. MANAGEMENT OF TOURISM INDUSTRY

High competition among the hotels, need the competent team of Sales and

Marketing to promote the product among the competitors.

Main Responsibilities

- Responsible for building the image of the organization among the customers

- Responsible for putting up a effective sales and marketing plan

- Responsible for carrying out market research product development campaign

etc.

- Responsible for finding new segment in market

- Responsible for bringing business and helping out finance department to

achieve the set

targets

ORGANIZING CHART OF THE SALES AND MARKETING DEPARTMENT

Director Sales & Marketing

Sales Manger Marketing Manager

Assistant Sales Manager Assistant Marketing Manager

Sales Executives Marketing executives

What’s Marketing?

Marketing is the study and management of the exchange process. It involves the things that the property will do to select a target market and stimulate or alter that market demand for the property services. It consist with research, action , strategies advertising, publicity, & sales and promotion.

What’s Sales?

Sales consists of direct efforts to sell the property by personal sales, calls, telecommunication & mailings

THE MARKETING MIX

The term Marketing mix is used to indicate the variable factors which can satisfy specific consumer needs. It is mix of 4ps’ such as product, price, promotion, and place

Management’s Role in Marketing & Sales

Role of Director Marketing- Responsible for carrying out a marketing plan through out the year- Conducting sales promotion plan with the help of Director sales- Responsible for identifying new segmentation of the market- Responsible for identifying new opportunities- Responsible for redirecting& modifying strategies that are not working well- Other managerial function

Role of Director Sales - Responsible for applying marketing strategies and directing the sales staff - Responsible for putting up sales plan through out the year - Responsible for Guiding the sales team accordingly - Responsible for identifying new opportunities

The Challenge of Hospitality Marketing and Sales by Travel Agents & Tour Operators

Hospitality sales differ greatly from consumer goods sales in that the hospitality sales person is selling something that has both tangible and intangible products.- Intangibility

- Perishability- Inconsistency- Inseparability

1.1.4. TYPES OF TOURISM INDUSTRY

All types of tourism in India have registered phenomenal growth in the last

decade ever since the Indian government decided to boost revenues from the

tourism sector by projecting India as the ultimate tourist spot.

The reason why India has been doing well in all types of tourism in India is that

India has always been known for its hospitality, uniqueness, and charm –

attributes that have been attracting foreign travelers to India in hordes. The

Indian government, in order to boost tourism of various kinds in India, has set up

the Ministry of Tourism and Culture. This ministry recently launched a campaign

called ‘Incredible India!’ in order to encourage different types of tourism in India.

The result was that in 2004, foreign tourists spent around US 15.4 billion during

their trips to India. Being a country with tremendous diversity, India has a lot to

offer in terms of tourism and related activities. The diversity that India is famous

for, ensures that there is something to do for all tourists in India, no matter what

their interests.

Adventure tourism

As a kind of tourism in India, adventure tourism has recently grown in India. This

involves exploration of remote areas and exotic locales and engaging in various

activities. For adventure tourism in India, tourists prefer to go for trekking to

places like Ladakh, Sikkim, and Himalaya. Himachal Pradesh and Jammu and

Kashmir are popular for the skiing facilities they offer. Whitewater rafting is also

catching on in India and tourists flock to places such as Uttranchal, Assam, and

Arunachal Pradesh for this adrenalin-packed activity.

Wildlife tourismIndia has a rich forest cover which has some beautiful and exotic species of

wildlife – some of which that are even endangered and very rare. This has

boosted wildlife tourism in India. The places where a foreign tourist can go for

wildlife tourism in India are the Sariska Wildlife Sanctuary, Keoladeo Ghana

National Park, and Corbett National Park.[22]

Medical tourism

Tourists from all over the world have been thronging India to avail themselves of cost-effective but superior quality healthcare in terms of surgical procedures and general medical attention. There are several medical institutes in the country that cater to foreign patients and impart top-quality healthcare at a fraction of what it would have cost in developed nations such as USA and UK. It is expected that medical tourism in India will hold a value around US$ 2 billion by 2012. The city of Chennai attracts around 45% of medical tourists from foreign countries.

Pilgrimage tourism

India is famous for its temples and that is the reason that among the different kinds of tourism in India, pilgrimage tourism is increasing most rapidly. The various places for tourists to visit in India for pilgrimage are Vaishno Devi, Golden temple, Char Dham, and Mathura Vrindavan.

Eco tourism

Among the types of tourism in India, ecotourism have grown recently. Ecotourism entails the sustainable preservation of a naturally endowed area or region. This is becoming more and more significant for the ecological development of all regions that have tourist value. For ecotourism in India, tourists can go to places such as Kaziranga National Park, Gir National Park, and Kanha National Park.

Cultural tourism

India is known for its rich cultural heritage and an element of mysticism, which is why tourists come to India to experience it for themselves. The various fairs and festivals that tourists can visit in India are the Pushkar fair, Taj Mahotsav, and Suraj Kund mela.

The types of tourism in India have grown and this has boosted the Indian economy. That it continues to grow efforts must be taken by the Indian government, so that the tourism sector can contribute more substantially to the nation’s GDP.

Different types of tourism in India are as follows:

Adventure Tourism India

Cultural Tourism India

Ecotourism India

Heritage Tourism India

1.1.5. METHODS OF TOURISM INDUSTRY

It is generally accepted that climate is an important part of the region’s tourism resource base, but its role in determining the suitability of a region for tourism is often assumed to be self evident and therefore to require no elaboration. Relatively little is known, other than in very general terms, about the effects of climate on tourism or the role it plays. And even less is known about the economic impact or significance of climate on commercial prospects for tourism. The whole area involving which climate related-criteria people use to make decisions about tourism and recreation choices is largely unresearched, but highly relevant to a variety of applications. Thus far, much of the research specifically on climate reported in the journal literature has been superficial in that relationships between climate and tourism are assumed rather than observed and seldom objectively tested. Moreover, the research is largely devoid of any clearly structured conceptual framework or frameworks that embrace important theory, paradigms, processes and interactions. These theoretical frameworks are important because they provide a basis for data generation, hypothesis testing and further theory generation. Without this, it is difficult to develop a coherent set of research methods; and perhaps more importantly, develop models that constitute a bridge between the observational and theoretical levels that can assist is building a coherent knowledge base for understanding, explanation and prediction. This paper reviews the work so far on climate and tourism with a view to identifying what concepts and theoretical frameworks may already exist and looks to ways these may be drawn together in future research.

Tourism economics is partly based on established principles from the economics discipline, but it also incorporates elements from sociology, psychology, organization theory and ecology. It has over the years turned into an appealing multi-disciplinary oriented approach to the understanding of the impacts of leisure time in a modern society, including cultural heritage, sustainable quality of life, and industrial organization of the hospitality industry. The increasing dynamics in the tourist industry and its worldwide effects will continue to attract the attention of both the research and the policy sector in the years to come. Rather than speculating on non-observed facts, there is a clear need for evidence-based research in order to map out the complex dynamics of the tourist industry. The present volume comprises novel studies – mainly of a quantitative-analytical nature – on the supply, demand and contextual aspects of modern tourism. It contains a sound mix of theory, methodology, policy and case studies on various tourism issues in different parts of the world.

1.2 INTRODUCTION OF TRAVEL AGENTS & TOUR OPERATORS

A tour operator typically combines tour and travel components to create a holiday. They prepare itinerary. The most common example of a tour operator's product would be a flight on a charter airline plus a transfer from the airport to a hotel and the services of a local representative, all for one price. Niche tour operators may specialize in destinations, e.g. Italy, activities and experiences, e.g. skiing, or a combination thereof. The original raison deter of tour operating was the difficulty of making arrangements in far-flung places, with problems of language, currency and communication. The advent of the internet has led to a rapid increase in self-packaging of holidays. However, tour operators still have their competence in arranging tours for those who do not have time to do DIY holidays, and specialize in large group events and meetings such as conferences or seminars. Also, tour operators still exercise contracting power with suppliers (airlines, hotels, other land arrangements, cruises, etc.) and influence over other entities (tourism boards and other government authorities) in order to create packages and special departures for destinations otherwise difficult and expensive to visit.

The three major tour operator associations in the U.S. are the National Tour Association (NTA), the United States Tour Operators Association (USTOA), and the American Bus Association (ABA). In Europe, it is the European Tour Operators Association (ETOA), and in the UK, it is the Association of British Travel Agents (ABTA) and the Association of Independent Tour Operators (AITO). The primary association for receptive North American inbound tour operators is the Receptive Services Association of America (RSAA).

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1.2.1. Marketing and Sales by Travel Agents & Tour Operators DivisionMarketing and Sales by Travel Agents & Tour Operators division can be varied

with the size, type, and budget of the hotel to hotel. Small hotel only have one

person who is handling all the sales activities related to the hotel business. But

large hotel have organized sales and marketing division with no of key personnel.

Duties of key positions

Marketing research coordinatorResponsible for

- Finding out current market trends

- Marketing and Sales by Travel Agents & Tour Operators strategies

- General consumer trend

- Fining out new market trends

- Conducting any other research activity which will affect to the business

Director of Advertising and Public RelationResponsible for

- coordinate all promotional material

- establishing good public image to the company

- selecting advertising media for the property

Director of Revenue ManagementResponsible for - price structure based on the date,season,day of the week competitive

situation and the potential of the group

Telemarketing DirectorResponsible for- supervise and manage the telephone sales staff

Director of convention servicesResponsible for- overseeing the servicing of the group business once it has been sold- handling bookings related to the convention halls- close coordination with food and beverage department

Director of salesResponsible for- putting up the sales plan for the hotel- coordinating with top management- administrating a sales support system- training the sales staff- setting sales targets- evaluating sales progress- evaluating sales procedures

1.2.2. Organizing the Travel Agents & Tour Operators

It can be organized in a variety of ways, based on a number of factors,- The property’s goals and objectives - The budget for Marketing and Sales by Travel Agents & Tour Operators- Available outside assistance (travel agents, chain referral, reservation)- The total market potential and the no of people needed to take advantage to

takeThat potential

Recruiting and hiring effective sales person

Common characteristic of an effective sales person- professionalism- Ability to communicate- Intelligence- Ability to analyze- Motivation- Efficiency- Persistence- Empathy- Curiosity

Training a sales person

Each sales person should have a firm foundation in the following key areas

Property knowledge- General description about the property, the no of and type of guest rooms, room rates, no of conventions hall, lay out of the hotel.

Office procedure – should know about the office routine works .Booking policies, sales quotas, sales office hours, function and guest room control books, sales forms and reports

Performance standard – Expected service from the sales persons

Salesmanship- How efficiency in sales activities

Training Techniques

1 simulated sales calls Giving to train new sales person can make a sales presentation and be critiqued by other staff member 2 Double callingSales person accompanied by the director of sales or a senior person.

3 Market segmentation drills Educating about the current serving market segments

4 Case study exercisesMaking sales strategy plans for other organization which are not own by the same company

5 In basket drillTraining about the documentation skills

Managing sales peopleIt is a duty of director sales to implement a proper tracing system to manage his staff

Evaluating salespeople Can evaluate by studying - No of sales calls made - No of room nights booked and revenue generated- No of proposal sent out- No of follow ups on the file- Percentage of rooms nights booked during high need time- No of inspections conducted and business generated

Developing the Marketing and Sales by Travel Agents & Tour Operators Office

Communication systemIt is understood fact that the department should have proper communication link within the department as well as the the other areas. a sales marketing office relies on various methods to communicate ideas and information, including holding meetings, keeping sales records, and establishing filing system.

Sales records and forms

Sample sales call reportIt is kind of form to be filled when making a sales call

Sample booking formIt is a kind of document which filled during the booking is taken

Sample lost business reportThis formed to used to fill either business cancelled or changed

Sample function book reservation sheetThis sheet help to avoid double booking of particular selling place once it is sold

The guest room control book It used to monitor the no of guest rooms committed to groups. The book should indicate no of rooms allotted to each group. The guest room control book is used to monitor the no of guest rooms committed to groups. It indicate whether allotment is confirm or tentative at any given time.

FILING SYSTEM

There are several types of filing methods that may be used for storing client data and other sales information. These methods fall into three general categories.1 Alphabetical filling2 Key word alphabetical filling3 Numerical

The Master card fileMaster cards are instrumental in establishing data banks of information on the needs of clients. Each master card contains a summary of everything needed for an effective sales effort, the organization name ,the names and titles of key executives ,address ,phone numbers month or months in which group meets, the size of the group, the group decision maker and other potential data that can help to obtain and keep that accounts business.

The Account fileIt is standard size folder holding information needed for serving a client basic business needs. The account file usually kept in a standard file folder and contains all of the groups information , including sales call reports, tentative and confirm booking information, function sheet of past business, and correspondence generated related to the booking. Information is placed in the file chronological order. Account file folder to be color corded according to various groups.

Sample manual trace fileThe trace file also known as a tickler file ,bring up file , or follow up file is an effective aid for following up an account reminder card or note is filled in the trace file by month and date. The system is used as a reminder of correspondence, telephone calls or contacts that must be handled on particular day.

THE AUTOMATED MARKETING AND SALES OFFICE Sales and marketing office generates an incredible of paper work, to avoid that most of the offices are computerized.Benefit of automation- Less paper work - Can provide quick and efficiency services to customer- Easy access to sales information- Facilitate personalized mailing- Cost effective Additional Application of Automation

- Database marketingData base marketing assist the Marketing and Sales by Travel Agents & Tour Operators department to organize, analyze information about the individual guest and groups. It helps to use information from routine source like guest folios registration cards, customer survey the group histories of meetings to build relation ships and market the property’s services effectively.

- Home based and virtual offices

Virtual officeBecause of the advance technology sales people can function their activity in any area by using laptop computer and cellular phones.

Home based officeSales staffs are free to do their work even staying their home. It saves initial cost of opening sales offices

- Can generate lists, reports, and analysis applicationIt helps to generate quick report in various areas

- Yield and revenue managementIt helps to calculate the yield and accumulated revenue for the past finance year.

EVALUATING THE MARKETING AND SALES BY TRAVEL AGENTS & TOUR OPERATORS OFFICE

It is responsibility of director sales and marketing to evaluate his or her staff on regular basis to identify their performance and abilities towards the selling techniques.

1.2.3 PATTERN USED BY TRAVEL AGENTS & TOUR OPERATORS

STEP 01 Conducting a Marketing Audit

The foundation of any marketing plan is the marketing audit. Marketing audit is the research steps in the planning process, and is some time referred to as gathering marketing intelligence.

- property analysisIt is a written unbiased self- appraisal used to assess the strength and weakness of your property. Under that following factors will be considered*Revenue and non revenue producing area* Reputation* Location* Building exteriors* Landscaping

Sample Property Analysis FormCompetition Analysis An evaluation of a business’s competition to identify opportunities and unique selling points. It is a part of marketing audit. The objectives of a competition analysis are to discover the objectives of a competition analysis are to discover - profitable guest groups are being served by competitors that are not being at

your property - Some competitive benefits or advantage your property enjoys that cannot be

matched by major competitors - Weakness in the marketing strategies of the competition on which your

property can capitalize

Ex: competitive rate analysis

Market Place Analysis

Researches the property’s current position in the market place and reveals potential opportunities to promote the property It evaluates the environmental opportunities and problems that can affect the business and forces affecting a business, such as changes in life styles societal values, economic conditions, and Technology.

STEP 02 Selecting Profitable Target Markets

Here we have to consider the difference market segmentation in an around us.

Market segmentation: Dividing the market in to groups of consumers with similar needs, wants, backgrounds, incomes, buying habits, and so on Exhibit 06 The market place analysis

STEP03 Positioning the property

Positioning: A marketing term used to describe the process of shaping how consumers perceive the products and services offered by a particular hotel or restaurant in relation to similar products and services offered by competitors (the process of designing a property’s market position is known as positioning)Positioning is not simply advertising. A property ‘s is composed of the hospitality it offers and the managers and marketers ability to create unique selling points based on the property location internal or external features personnel. Without positioning it is impossible to determine what the property has to offer, where the property is going and how it will get there etc.

STEP 04 Establishing Objectives and Action Plan

Once the market audit is completed, the target market segments identified and the positioning established, the next step in the marketing plan is to establish specific marketing objectives. This is one of the most difficult steps in the planning process because it involves establishing goals for each market segment.Marketing objectives should be simple should be set for each market segment, revenue centre and revenue producing service like outsource laundry facilities. Marketing objective should be - In writing- Understandable- Realistic and challenging- Specific and measurable

STEP 05 Monitoring and Evaluating the Market Plan

Marketing efforts should be measured carefully; the easier it will be future marketing activities and programs. The marketing plan should be review periodically so that corrective action can be taken through out the planning cycle.

If action plans are effective and objectives are realized within establish budget limits, corrective action need not be a part of the process. But it is painful fact that some strategies do not work .If hotel sales goals are not being met the problem can often be traced to one or more of the following reasons- Lack of responsibility- Lack of communication- Lack of time- Lack of authority- Lack of appeal- Lack of control- Lack of realistic goals

1.2.4. PROBLEMS

2. Anti-competitive practices affecting tourism sustainability

The competition issue and the treatment of anti-competitive behaviour are at the core of the problems of efficiency, viability and sustainability of tourism in developing countries. The latter's ability to deal with those two aspects and to counter their effects is a crucial matter. Firstly, this is because anti-competitive behaviour occurs largely in developed countries, as a result of the fierce competition among a few integrated dominant players with a high market share in their own market and in all segments of tourism industry supply, notably tour operators, travel agencies, hotels etc. Secondly, the pattern of globalization, which is the driving force of many of the developments in the supply of the tourism and air transport, also mostly originates and is controlled in the two leading developed economies, namely the European Union and the United States. Consequently, what often appears to be a normal commercial relationship in a developing country may actually be the result of a network of anti-competitive practices arising from a globalized and highly integrated tourism trading environment, dominated by a few suppliers in the originating tourism markets. Moreover, other non-behaviour-related industry issues, such as the inadequacy or absence of a domestic competition legal framework in developing countries, and the lack of multilateral disciplines and mechanisms within the GATS framework, also affect the ability of developing countries to deal with or prevent anti-competitive practices in their tourism sectors.

Why and how do anti-competitive practices threaten the viability of sustainable tourism in developing countries?

The economic and social viability of tourism in developing countries depends on sustainable growth perspectives, in terms not only of absolute values, but also of their capacity for retaining more value added in their economies, i.e. smaller leakages, an even distribution of benefits in commercial operations, elimination of all barriers to tourism, particularly to commercial presence, and the movement of tourism suppliers in both origin and destination markets, and the effective implementation of provisions enumerated in Articles IV and XIX of GATS. The foundations for sustainable tourism are already in place in most developing countries as a result of the autonomous liberalization of the tourism sector itself and the progressive liberalization of many other services sectors. However, for those countries highly dependent on tourism revenue, the benefits of the liberalization of tourism are being threatened by the predatory practices of a few dominant tourism suppliers in the world tourism market. The evolution of the GATS disciplines, and the consistency of future commitments of developed countries with the economic, social and environmental sustainability of tourism in

developing countries in the GATS 2000 negotiations, should mark a turning point favouring more profitable tourism for all WTO members, particularly the most vulnerable small developing countries.

The predatory practices and anti-competitive behaviour in international tourism have two main effects on the economic sustainability of the tourism of developing countries: unbalanced trade benefits, and the deepening of the leakage effect. Their combined impact minimize the positive impacts of spillover and multiplier effects inherent to tourism, and undermine the financial capacity of enterprises and the ability of countries to earmark necessary resources to maintain and upgrade basic infrastructure and quality standards in order to satisfy in an adequate way competitive conditions and international demand. Moreover, in most vulnerable and small developing economies, particularly LDCs, the foundations of tourism are threatened by unbalanced results in their business operations, which are in turn threatening the social, economic and environmental sustainability of tourism.

There is much documented evidence about the negative impact of anti-competitive behaviour of developed countries' dominant tourism suppliers on their own markets and overseas. Unfair practices, which confront developing countries' suppliers in their business operations with dominant suppliers in tourism-originating countries, are of a different nature and occur in different segments of tourism and related activities. One of the salient features that become evident in commercial relations is the uneven distribution of benefits, due to the dominant position and market power of integrated suppliers in their own markets and worldwide. These suppliers have absolute advantages, because of their control of inbound and outbound operations in their countries and overseas, which allow them to keep consumers dependent on the offer of the products and services they supply, at the expenses of imposing onerous commercial conditions on suppliers in different tourism destinations. The huge supply capacity of dominant players in all segments of tourism, including transporters, CRS/GDS, tour operators, travel agencies and hotels, allows them to prepare holiday packages and retail them through their own business networks, as well as to impose prices and conditions on suppliers in tourism destinations.

How do the business operations of tour operators and travel agencies in the originating markets of tourism affect the sustainability of developing countries' tourism?

Tourism suppliers from developing countries e.g. hotels, inbound operators and land transport companies participate in international tourism mainly through the transactions of tour operators and travel agencies from developed countries in

the developed countries' originating markets. As wholesalers of tourism products and services they assemble the holiday package by negotiating with destinations and operators in third countries. They view the tour package as an attractive option with many advantages for them: (a) it ensures flows of tourists; (b) it reduces the international marketing costs of the destination; and (c) it increase the volume flow of package travellers, which is likely to increase investment by foreign construction companies, major tour operators and airline companies that wish to make the tourism product more attractive to consumers. However, tourism suppliers from tourism destinations in developing countries have very often underlined their weak bargaining position in business transactions, particularly with dominant suppliers of the most important originating tourism market from developed countries.

(a) International competition among tour operators and travel agencies

Tour operators in originating countries manage business operations through (a) a subsidiary of a vertically integrated firm with a number of related travel interests; (b) an entirely independent firm that specializes in putting holiday packages together and selling them; (c) a subsidiary of an airline; and (d) an operator directly linked to a travel agent. The tour operator of each major market is dominated by a small number of national firms with a relatively large market share, which compete fiercely with each other. For instance, four firms with a share of over 60 per cent dominate the United Kingdom market. This results in the larger operators having a dominant position with a very little competition, because the layer of the next competitor is too small. Consequently, the travel agencies (the retailers of tourism packages) in destination markets are almost entirely dependent on their linkages with the dominant tour operators. Also, consumers become captive in their choices of tourist package offered by dominant suppliers. The effect of this supremacy of integrated tourism suppliers in their own markets is mirrored in their dominant position in commercial relations with tourism suppliers in destination developing countries.

The benefits and costs of package tours to service suppliers in developing countries depend to a large extent on the nature and terms of the contracts between them and the tour operators from the tourism-originating countries. Accordingly, the bargaining powers of suppliers from developing countries are a central issue affecting the tourism sustainability of developing countries. Some examples of how the common practices in contractual arrangements affect the sustainability of tourism in developing countries are presented below.

Use of monopsonistic power over local tourism suppliers in developing countries

The contract between a tour operator from an originating country and the suppliers in the destination country involves a block reservation for a future period at a negotiated price and specifies the terms of risk sharing in the event that not all the packages are sold. The tour operator normally has the greater bargaining power during the contract negotiations; if it considers that the negotiating partner’s offer is not attractive enough, it can choose another hotel in the same area or even another region of the same country. Tour operators thus often exercise a monopsonistic power over local tourism suppliers, such as local hotels, since for the latter the servicing of the package tour is a vital means of securing their occupancy rates.

The asymmetry of bargaining power is clearly revealed in the content of the contract. Often contracts last for one year or more, and the risk inherent in a long-term contract for a tour operator (e.g. uncertainty of future demands for the package) is reduced by negotiating various conditions favourable to the tour operator. A contract frequently contains the following provisions: a substantial discount is provided on rooms after the departure of the clients; no deposit is required for the booking; payment may be made long after the departure of the customers; and the tour operator retains the right to return unfilled rooms (“release-back clause”) shortly before the arrival date, without any need to pay compensation. Anti-competitive practices resulting from vertical integration

Vertical integration among tour operators and travel agencies, which is currently proceeding at a notable pace in Europe, threatens to reduce the actual number of tour operators in the market. As a result, a great deal of market power is being transferred to the intermediaries that direct consumers to specific destinations. The consequences of this should be a major concern to developing countries' tourism destinations. The increase in the degree of concentration in the travel market in favour of mega-operators puts developing countries' suppliers and the other competitors in local markets at a clear disadvantage. It also opens the door to unfair practices, which directly affect tourist destinations. An example of this is the travel agent's “racking policy”, which refers to the decision about which brochures to put on display. This has a crucial impact on the tourism destinations of developing countries, because for them the travel agent's display rack is almost an essential facility, and denial of access to it can severely restrict consumer exposure.

The threat of "deracking" (i.e. removing brochures from the shelves) is used by integrated suppliers in attempt to negotiate larger commissions, by pressuring tour operators not to supply independent travel agencies on better terms or by pushing their own holidays through in-house incentive schemes. The lasting

impact of this practice is more restrictive in originating countries where tour operators are the main distribution channels, such as in Europe, where more than 60 per cent of tour packages are sold by integrated suppliers. Conversely, in the United States the possibility of "deracking" is lower because about 70 per cent of travel agencies are independent, GDS/CRS are more important as distribution channels, and the Internet is becoming a primary source of information for consumers about tourism destinations.

(b) International competition among hotels.

The international hotels sector is characterized by a considerable diversity in the modalities of services provision, and by a high concentration of a very small number of large hotel groups, including hotel consortia, integrated hotel chains and tourism lodging (second homes). Their scope and focus are very often limited, either by a focus on home markets, notably through the hospitality franchising systems, or by a concentration on business travel and destinations. One important aspect to be noted is that the intensive use of the accommodation infrastructure, particularly hotels receiving international tourists regardless of the hotel's size, requires the continuous allocation of financial resources to maintain and upgrade the quality of accommodation to meet the standards of international demand.

In most developing country destinations huge investments have been made in the hospitality and accommodation sector either through investment of domestic resources or attracting foreign investors by increase of different modalities, including management contracts and franchising brand names

As in all the other segments of tourism-related activities, the importance of competition issues stems from a mix of practices through the distribution mechanisms. Anti-competitive behaviour in those mechanisms is thus most likely to have a significant effect on the ability of destinations, and of their hotel sectors, to compete effectively and to gain a fair share of the rewards of attracting tourists and travellers.

The sustainability of this sector in developing countries' tourism destinations depends on the occupancy rates (affected by seasonality) and the level of profits, which are highly influenced by the results of commercial transactions between hoteliers and tour operators from tourism-originating countries. In this connection, it has to be underlined that the accommodation sector is the one most affected by the dominant power of mega-operators, whose stringent demands in terms of quality standards are not duly compensated for with fair commercial remuneration. Another, wider impact of this predatory behaviour in the tourism economy of receiving countries is the deepening of the leakage effect and the

undermining of positive inherent multipliers effects of tourism. Depending on the magnitude of these unfair compensations from dominant tour operators, some tourism destinations in developing countries might be subsidizing tourists from originating countries.

Table 3Options for investment in hotels for developing countries: Costs and benefits

Types of investment Benefits Costs

Total ownership100 per cent ownership of equity by a foreign subsidiary for an unlimited time

No financial risk to the host country

Large outflow of income from tourism (leakage)

Difficult to reflect government policy on tourism development

Joint venturePartial ownership of equity by foreign capital for an unlimited time

Access to extra capitalAccess to international

marketing networks

Lower social/political cost of FDI

Reduced income leakage

Requirement for a certain base capital

Risk-sharing Possibly unfavourable

contracts due to limited bargaining power

FranchisingThe right to do business in a prescribed manner under an existing brand name is sold to a local firm

Transfer of managerial and marketing skills

Assured standard of quality

Brand image

Management risk is with the host country’s firms

Management contractsThe business is controlled and managed by a foreign firm, without ownership by the latter

Hotel consortiaIndependent hotels pool resources in order to compete with integrated and franchised chains

Possible transfer of knowledge, skills and technology (e.g. GDS) through a cooperation agreement

Joint national and international publicity campaign

No control over finance, management and planning

Small-size hotels may not be considered attractive to a consortium

Initial lack of brand reputation

Full national ownershipDomestic investment without foreign links

Reduced international leakage

Independence in adoption of corporate strategies

Lack of international reputation

Higher marketing costs

(c) Computerized reservation systems (CRS)/global distribution systems (GDS)

The development of international tourism relies on the effective commercialization of tourism products to consumers at tourism-originating countries. World information and distribution networks play a decisive role in the international tourism sector since they bring the buyers and producers of tourism products into contact. CRS, GDS and the Internet are the backbone of world information networks, which provide the infrastructures and networking facilities for airlines, tour operators, travel agencies and other tourism operators to process and obtain information, make reservations and market tourism products.

CRS have been developed by large air carriers since the 1970s to process flight reservations. They later evolved and expanded to offer further services related to air transport, such as the storage of information on a worldwide basis, the issuance of tickets, marketing (by displaying information on fares, discounts and conditions attached to them) or the sale of products and services. Moreover, they cover not only services provided by airlines, but also land services supplied to tourists, such as package tours, hotels and vehicle rentals. With this enlarged range of services, they became known as global distribution systems. GDS have significantly improved the efficiency of travel agents’ business operations and their use is growing rapidly. They have become the main marketing and trading tool of international tourism, as well as a major source of income for the carriers which own them. Through strategic alliances and other forms of cooperation or mergers in the most important markets, these systems minimize their costs and reduce the need for a direct commercial presence. A single GDS terminal provides immediate access to all services companies which have opted to market their products through this network.

The companies (air carriers or independent commercial companies) that control CRS and GDS either partly or entirely sell access to the system to tourism operators worldwide. There are many obstacles to and measures governing GDS networks. These include (a) unfair rights of access, (b) restrictions on display, (c) costs of services influenced by monopolistic practices, (d) neutrality and regulations, and (e) the technology gap among users.

Access problems. Despite their major contribution to the development of tourism, GDS are frequently considered a barrier to market entry, mainly because they are controlled by the major carriers and because of the unfavourable access conditions for competitors. While some East Asian developing countries have participated in the establishment of a major GDS (Abacus, complemented by the strategic alliance with Worldspan), other developing countries have not been able to do likewise, leaving their carriers and other service suppliers without privileged access to any GDS. Additionally, countries not yet seen as attractive tourist destinations, or whose hospitality sector is underdeveloped (particularly in Africa and South Asia), tend to be poorly represented, if at all, on GDS. Therefore, access to information on their tourism products is limited, thus making it difficult for them to sell their tourism services. These difficulties have meant that many smaller carriers, especially some from developing countries, have been obliged to continue using the traditional SITA CRS, which leaves them at a competitive disadvantage compared with those what are represented in the major GDS. On the other hand, in many developing countries, particularly in Africa, GDS are present as a result of joint ventures with local partners (e.g. the national carrier) but operate within a de facto monopoly. This leads to excessive user fees and hinders their potential for developing tourism. Display. The GDS allows a travel agent to view a wide range of information, which sometimes requires several pages on a terminal screen. In most cases, however, travel agencies only consult the information on the first page (screen); the order in which screens are displayed is thus a crucial determinant in the user’s selection of products. The display may discriminate against smaller carriers which do not own a major CRS, since controllers’ own flights may be better displayed on the screens than those of their competitors (this is known as “display bias”). There may also be discrimination in favour of their suppliers of land services.

Cost. The cost of having services presented GDS may be prohibitively high for SMEs, leaving them with no access to this marketing tool. Even though all service providers have to pay a fee for having their services displayed in the systems, the costs of participation for the owners of GDS are fully or partly covered by the profits generated by the systems. The cost of hardware and user fees may prevent small users from using GDS; this puts some service suppliers (particularly SMEs) from developing countries at a disadvantage compared with their larger national or international competitors.

Neutrality and regulations. In order to prevent CRS from being used as an anti-competitive tool (e.g. by charging excessive fees for reservations made for non-

owner companies) and to ensure their neutrality (e.g. by prohibiting display bias), the United States, Canada and the European Union have issued regulations in recent years on GDS operations related to air services, while the International Civil Aviation Authority (ICAO) adopted a code of conduct for CRS in 1991. However, the regulations and code have not been sufficient to resolve completely the anti-competitive bias of the systems, and particularly to address the specific problems of carriers from developing countries. The ICAO code (the only multilateral one) is non-binding and therefore there are no mechanisms to ensure its enforceability. The relevant domestic regulations are binding, but only within the territories of the countries concerned. The European Union regulations apply to CRS from countries which have similar legislation to ensure neutrality. On the other hand, although CRS have been included among the “soft” air services rights included in GATS, the commitments do not deal with their anti-competitive potential.

Technology gap. Installing and maintaining a system poses a greater problem to travel agents in developing countries, owing to deficiencies in the infrastructure necessary for such an information network, and the shortage of professionals to manage, operate and maintain the system. This not only represents a technical hindrance to the use of modern technology, but also increases the associated costs, thereby putting travel agents in developing countries at a disadvantage compared with their counterparts in developed countries.

Electronic commerce. The expansion of the use of the Internet and other forms of electronic communication opens up significant opportunities for developing countries to develop their tourism and air transport sectors. Their service suppliers can reach consumers around the world directly, offering both package tours and individual air and land services. They thereby cut out the costs of intermediaries (e.g. agency fees) and transaction costs and avoid the need for a direct commercial presence and its associated costs. Nevertheless, electronic marketing and trading have their own costs in terms of human and physical capital requirements. In countries where these requirements are in relatively short supply, the cost of electronic marketing and trading can be reduced if individual suppliers pool their resources. This could be coordinated, for instance, by national tourist authorities. Moreover, modern technologies are likely to be increasingly used as institutional promotion tools. If there is a minimal critical mass of information infrastructure in a given country, the new technologies can offer substantial cost savings.

(d) Air transport

Air access in international tourism depends on the availability and conditions of air transport connecting tourist-generating countries and destination countries (i.e. prices, frequencies, travel time, etc.). Air transport is a major factor underpinning international tourism in the vast majority of developing countries, but its importance for tourism varies considerably from one region to another. It is the means of transport used by the majority of tourists arriving in developing countries. Air transport developed as a result of the increase in demand for tourism-related travel, becoming in turn the driving force behind the development of the tourism industry. In 1998, passengers were responsible for about 75 per cent of air traffic volume and for of the total operating revenues of airlines. It is estimated that up to 40 per cent of air passenger travel is for business purposes (as opposed to leisure or personal travel) and that business travellers account for up to half of airlines’ income. Like tourism, the world air transport industry has expanded at twice the rate of world output growth, and is expected to continue to do so in the next twenty years.

The main recent developments affecting air transport and the industry structure are the increased international ownership of airlines and their growing concentration, worldwide moves to liberalize and deregulate the sector, the privatization of airlines and the formation of strategic alliances among firms. The main benefits of the latter are the cost reductions and efficiency gains that can be achieved by rationalizing the joint use of resources (such as check-in facilities and ground personnel), creating synergies and providing “network value” (i.e. the wider coverage of points serviced by the carrier and its partners) without the need to physically expand operations. The large global alliances aim at world coverage by pooling the networks of their members. The main drawback in doing this is that the alliances can restrict competition and thus negate some of these benefits, particularly if they collectively achieve a dominant position on given routes.

III. How the GATS 2000 Negotiations should mark a turning point to make effective the increasing participation of developing countries in international tourism flows in a sustainable perspective.

How negotiations could support the sustainability of tourism operations

The GATS 2000 negotiations mandated by the Final Act of the Uruguay Round provide developing countries with a unique opportunity to counterbalance the asymmetries imbedded in the outcome of the Uruguay Round services negotiations. In this perspective, it is the right time to take advantage of these negotiations to prepare and put forward negotiating proposals on how to make effective use of the provisions of Art IV and XIX, aimed at increasing participation of developing countries in trade in services and the expansion of their services exports including through the strengthening of their domestic services and its efficiency and competitiveness. The two-way process involves not only the refinement of offers, but also the preparation of requests from trading partners as one of the key ways to obtain substantive benefits as result of the GATS 2000 negotiations. Moreover, an active participation of developing countries in the GATS rule-making process is a contribution to building of an improved multilateral framework which would take into consideration existing asymmetries and the need for a predictable markets access for exporters of services from developing countries.

The viability of tourism, i.e. its economic, social, cultural and environmental sustainability, is at the heart of domestic policies and development concerns of developing countries. Accordingly, in the course of the present negotiations on trade in services, there is a need for similar focus on strengthening future substantive commitments on tourism by GATS members as was the case in other sector such as telecommunications and financial services. In this perspective the proposal for the Annex on Trade in Tourism Services (WT/GC/W/372), may contribute to providing a pro-competitive framework as a complementary tool which would ensure:

(a) An adequate coverage and consistency of commitments in all tourism activities as defined by the Satellite Tourism Account. This aspect is of paramount importance in view of specific characteristics and diversity of transactions linked to trade in tourism services, notably the heavy reliance of tourism on air transport and travel distribution systems.

(b) The prevention of predatory behaviour and anti-competitive practices by

dominant integrated suppliers in the originating markets. This refers to disciplines to prevent anti-competitive conduct including from air transport and travel distribution systems, and to safeguard trade in tourism services from competitive exclusions, abuse of dominant and misleading or discriminatory use of information.

(c) The effective access and use of information on a non-discriminatory basis. It should include provisions on access to ensuring non-discrimination, transparent, reasonable and objective criteria; compliance with Art. IV of

GATS and the truthfulness of the information on tourism distributed by governments (travel warning) and through GDS; the unbundling of travel distribution systems as a measure to counter vertical integration and conflicts of interest in travel agencies and the interconnection of CRS, through the portability of reservation numbers. Submitting GDS operations to effective multilateral disciplines and dispute-settlement mechanisms would have a substantial effect on trade and anti-competitive practices.

(d) The implementation of an adequate framework for sustainable development of tourism. Provisions on cooperation for the sustainable development of tourism are needed in recognition of the role of tourism in economic development; its need for infrastructure and development assistance; equitable trading conditions for economic sustainability; the relevance of enforcing internationally-recognized environmental and quality standards; the need for cooperation at all levels; and the importance of providing information on technologies required for competitive provision, regulation and sustainable development of tourism and all related-activities.

(e) To preserve the environmental sustainability of tourism and the cultural heritage. Guiding principles for national policies and trade commitments to preserve the ecological systems, the biodiversity, cultural patrimony and traditions.

2. Issues for consideration by developing countries in negotiating specific commitments in tourism

The liberalization under the GATS 2000 will be determined on one hand, by the level of removal of barriers in the revised horizontal commitments (which affect all sectors) and on the other, the lifting of conditions and limitations applied to each sector at sector-specific level and in the four modes of supply. Accordingly the consistency between the two types of commitment is an important issue to be addressed by developing countries, seeking to obtain commercially meaningful commitments at specific sectoral level.

a)Improvement of horizontal commitmentIn preparation of their positions in services negotiations, developing countries must assess to what extent the horizontal commitments of developed countries impede the liberalization of tourism and travel and related services. The major limitation in the horizontal commitments is in the lack of significant trading opportunities in mode 4, i.e. temporary movement of natural persons, since

practically no commitments in this mode were made in specific services sectors. The temporary presence of natural persons in all services sectors is undermined by the recurrence at the horizontal level to the economic needs tests, nationality and/or residence requirement and cumbersome administrative and visa procedures to be met by foreign nationals as services providers. The existing horizontal commitments by developed countries mainly refer to limitations for the establishment of the commercial presence (mode 3) by foreign providers to carry out the commercial operations.

b) Specific tourism sector commitments

Majority of tourism originating countries are developed countries, which have undertaking commitment to liberalize fully or partially the supply of services in different tourism sub-sectors and modes of supply. Still, the impact of commitments in commercial presence in term of market value is nullified by restrictions to the commercial presence of foreign tour operators, travel agencies, restaurants and hotels, which are not listed there. Also, the movement of natural persons engaged in the tourism supply of different services is precluded by limited horizontal commitments and the lack of specific sectoral commitments. For instance in many Members States of the EU the commercial presence of foreign tour operators from the third countries is precluded or allowed only in association with already established national firms therein. Similarly, foreigners are precluded from undertaking of the business operations in the restaurant sub-sector even for those specializing in typical national food from other countries. In addition, the level of restrictions on commercial presence is aggravated by the possibility of recourse to the economic needs test, cumbersome and discriminatory licensing requirements that foreign suppliers of tourism services must meet.

c) Temporary presence of natural persons as consumers and providers of services

It should be underlined that although the existing commitments on market access on consumption abroad have no limitations in the case of majority of the GATS commitments, including in the top originating countries; in real terms the freedom of movement for consumption abroad is restricted by the level of binding in other modes of supply, in particular the commercial presence of foreign suppliers in the tourism originating markets. The movement of consumers in most of the top originating markets of tourism is captive, because the existing level of binding of commercial presence consolidates the absolute advantage of the dominant mega-tour operators and other national suppliers including the travel agencies,

since the exclusive right of selling directly to travellers of holiday packages in their own markets has been consolidated in the existing commitments on commercial presence. Moreover, under such commercial conditions, the consumers’ choices are limited by the offers of holiday package by dominant tour operators, but not only them, also by the opportunities for suppliers from destination countries to reach consumer in the originating markets directly. In addition, the consumers’ choices in these markets are restricted by unfair practices in the management of information systems and the “racking policies” by travel agencies, which are usually integrated with mega-tour operators.

To improve horizontal commitments on mode 4, developed countries should remove the application of the economic needs test with respect to the movement of professionals supplying tourism services. Not all the professions and occupations are equally important to the movement of persons in the context of trade in tourism services. For example, the possibility to have the waiver from the application economic needs test should be provided to individual tourism services suppliers involved in catering, maintenance services or in such areas where cultural affinities and close contacts with tourists may contribute to the quality of the services provided. To the extent that the remaining occupations would remain subject to the application of economic needs tests, efforts should be made to reduce the scope for arbitrary and discriminatory practices, provide greater transparency and introduce more neutral economic criteria. The issue of transparency in respect of the application of the GATS commitments is crucial as a tool in promoting trade in tourism services. In that respect, commitments in mode 4 are closely linked to the implementation of the relevant immigration regulations, policies and procedures in a clear and transparent manner.

Publishing of the legislation and implementing regulations which significantly affect ability of the foreign nationals or permanent residents move across borders to supply services is a general obligation, since this is the way to limit the room for discretionary and procedural rules. The lack of transparency, clarity in the existence, implementation and application of policy guidelines affecting application for and consideration of temporary work permits, residency requirements of visas impede market access, effectively violating key GATS provision.

1.2.5 FURTHER PROSPECTUS

Being a very wide field, the scope of employment in tourism sector is very bright and the potential is still largely untapped. Career opportunities exist both in the public and private sector. In the public sector, there are opportunities in the Directorates and Departments of Tourism of the center and the state as Officers, information assistants, Tourist guides etc. Another good prospectus for qualified tourism professionals are in the private sector with travel agencies, tour operators, airlines, hotels, transport and cargo companies etc. The opening up of the skies to private airlines and their emerging tie-ups with foreign airlines has removed bottlenecks in the transport and communication network resulting in easy flow of domestic and foreign tourists in the country. Since this is a new area of employment, not many qualified and experienced people are available and the promotion prospectus are also very bright and rapid. After a few years of experience, One can also start their own business by handling all travel requirements of a client and gradually building up business, taking on additional employees. 

Career Options

Tourism Department :

In the Tourism Department there are jobs as Reservation & counter staff, Sales and marketing staff, Tour Planners and Tour guides. Officers in the Directorate and Departments of Tourism are recruited from among the candidates who have done civil service, drawn from the Civil/administrative services of the State and Central governments. They are involved in the planning and promotion of tourism activities. A degree in travel and tourism is required for operational jobs in government organisations. Information assistants at the office of the Tourism departments are selected through competitive examinations held by the Staff Selection Commission. The eligibility is graduation with knowledge of Indian history, art and architecture, besides proficiency in English. These vacancies are advertised through the employment news. Information Assistants give out information regarding tourist spots and services available and help to plan the itinerary of the tourists. The Ministry of Tourism recognises three types of guides, regional, state and local. A regional guide gets a two year renewable license from the Ministry of Tourism endorsed for life by the Archeological Survey of India. Guides give detailed information on the various monuments and artifacts and about the countries traditions and heritage.

Airlines:

Working in an airline, whether on the ground staff or in flight is an exciting option for many people these days. In the airlines, one can work as Traffic Assistance, Reservation and Counter Staff, Airhostess and flight pursers, Sales and Marketing staff and customer services. A course in travel and tourism or a qualification on Hotel management helps to get in. The jobs in airlines though challenging are glamorous and afford the possibility of traveling to exciting destinations. Free tickets for the family offered by some airlines are an added advantage. Domestic and international Airlines such as Air India, Indian airlines, Jet airways, Air Sahara, Aeroflot, British Airways, Cathay Pacific, Emirates, Singapore Airlines etc offer employment opportunities with attractive salaries and numerous benefits. 

Tour Operators:

Tour operators organise conducted tours to the various tourist spots and manage the travel and stay of the tourists. There are many companies operating tours for the domestic as well as the international tourist. Some may be for the usual destinations like hill stations but others are for unusual activities like river rafting, hang gliding, rock climbing and camping. Tour operators need people for selling the concept and then to accompany the groups to the destinations. For foreign groups, the agencies prefer girls, who are friendly and helpful. For domestic groups, males are preferred. Again, the qualities required are a pleasing and outgoing personality, knowledge of the activities and often participating in them with the tourists. A person hoping to work with a tour operator must be able to travel with the groups and know people at the destinations to make the tours pleasant for the client. Though one may do a course of tourist guide for this purpose, people with a knowledge of the activities can easily join as tour operators. The jobs could be seasonal in some cases.

Travel Agencies : 

Travel agents assess the needs of tourists and businessmen and help them make the best possible travel arrangements from the many travel options available. Many resorts, travel groups use travel agents to promote their tour packages to travelers. They deal with almost everything connected with travel including the shortest route to the destination, travel mode, the important documents that will be required (visa, passport, vaccination certificates etc.), suitable places to stay, current exchange rates, tourist attractions to visit, climate and they will plan the trip keeping in mind the clients' preferences, budgets and special needs. In travel agencies there are openings for reservation and counter staff, Sales and Marketing staff, Tour escorts and tour operators, cargo and courier agencies etc.

A short tem course or a diploma in travel and ticketing of 3-6 months duration will help gain entry into an agency. Several large travel agencies also offer short-term training programmes, and tend to absorb most of the candidates. Some agencies take in fresh graduates and train them on the job. Most travel agencies demands persons have a pleasing personality and the ability to deal with customers.

Hotels :

The hotel Industry is basically a service industry providing food and accommodation to the Visitors. It is one which requires a large amount of manpower, with a wide variety of skills. In India alone, about 1, 80,000 vacancies are expected to be filled within the next decade. An hotel offers career opportunities in its various departments such as Operations, Front office, House keeping, Food and Beverages, Accounting, Engineering/ Maintenance, Sales, Public relations and Security etc. One can enter this field through direct entry in some departments or through hotel management institutes. There are many institutes that offer hotel management courses. Many hotels also offer overseas training opportunities, which allow young people to gain promotions rapidly. 

Transport :

Besides airlines, Travel facilities include rail services, coach operators, car hire companies. etc. Whatever that takes Tourists from one place to another - by air, road, railway, sea etc. comes under Travel and tourism. Tourist use almost all these travel facilities.

RESEARCH DESIGN

2. RESEARCH DESIGNA descriptive research design was used in conducting the research study

in order to get cemented tour operators perceptions on the India : A World of Wonders tourism brand. Investigations were carried out with major tour operating companies in India . We used questionnaires in obtaining information from the tour operators. All questionnaires were written in English. The study population comprised of 100 respondents drawn from the tour operating organisations.

2.1. NEED & IMPORTANCE OF STUDY They should improve their Ideas, packages Itineraries an attractive offers

according as per customer demand to grow their image in the tourism market

They should improve their staff member, they have to improve way of talking (How to introduce their self & companies profile to new customer)

They should improve their infrastructure for meetings in their own office

They should publish there itineraries new packages on internet to get more business from new customers

They should improve their advertisement style and try to publish their products in market in a new style

They should modify there website, their packages on website information regarding tourism time to time with new innovative ideas

They should move to travel consultant to travel agent it will make lil more profit to their company

2.2. SCOPE OF THE STUDYWhen I was working there as a trainee in HOSPITALITY, there was a

limitation for us that we can’t able to meet all the customers (existing and new) from Delhi & NCR only, and we have to complete our project within a period of six weeks from 0900 hrs to 1830 hrs. We had limited area there for practically research and completing our project.

2.3. OBJECTIVES OF THE STUDY

To study the Concept of tour operator’s growth & future prospect To know the Working pattern of Travel Agent

To know the Working pattern of Tour Operators

To understand the Effects of Travel Agents & Tour Operators on Tourism Market

2.4. RESEARCH METHODOLOGYStratified random sampling technique was used to select the sample for

the following reasons: to ensure that the sample will not have by any chance undue proportion one section within the tour operating business. The population worked in different departments therefore had to be divided into strata according to operations and then the sample was picked randomly from each type of operation. Since the population included the whole of India we took the ITA database of all tour operators.

2.5. LIMITATIONS OF THE STUDYThe first limitation deals with the representation of the research. In the

study, samples were drawn only major tourist areas in India . If a diversified sample were drawn from different parts of India , then it would be more representative and more reflective of the tour operators’ perceptions.

A total of 55 out of 100 respondents were analyzed across the identified stakeholder category as well and there were a number of findings that could be seen to be repeated and replicated among respondents of different operations. As discussed, the operations categories were devised as a means of identifying those most engaged with tourism branding in India . There was however a great deal of blurring across operations categories. It should be emphasized that because of the individuality of the tour operators in many cases it was not possible to see findings replicated in terms of perceptions on India ’s tourism brand.

Travel Agents & Tour Operators are beneficial for

tourism

3 TRAVEL AGENTS & TOUR OPERATORS ARE BENEFICIAL FOR TOURISM

3.1. PRESONAL SALES

IntroductionThe personal sales call is often the most effective means of customer contact, especially when directed at volume movers of the leisure, business and meetings market. A personal sales call is used to build rapport with clients or potential clients and sell them the property’s product and services.Type of personal sales call1 cold calls or prospect calls – which can either be made in person or by telephone, are usually made within a small geographic area with a minimum amount of time spent on each call.2 public relation calls – This call made for existing customer to enhance the relation ship.

3 Presentation calls – This call are made to individuals committees or groups to explain how your property can meet their needs and to ask for their business.

4 Inside calls – These calls are made to walk-ins inquiry about the property or to group buyers, such as tour operators and meeting planners.

ProspectingProspecting is the life blood of sales because prospecting identifies the individuals or groups that may become the property’s client base in the future. At a minimum, each sales person should be making 10 to 15 calls per week on new prospects.

Sources of prospecting- Referral program of past and present clients- Account penetration- Local organization and companies- Community contacts- Front desk personnel- Other property employees- The property competitors- Other sources- The national level- Networking- The internet

Qualifying prospectsQualify and quantify are two of the most important steps in the solicitation of any account. Unfortunately, not every prospect qualifies as a potential client, in many hotels 80 percent of business is generated by 20 percent of their accounts.

Prepare for the presentation sales callOnce the prospect has been called on and has expressed an interest in the property, a presentation sales call can be made. Although you should approach each presentation sales call with confidence, you should realize that not all presentation lead to sale. You should have well prepared presentation. It results 1 increased credibility2 increased confidence3 increased probability of reaching the decision maker

Pre presentation planningTo be effective pre presentation planning should include property research, competitor research, and client research.

Property research includes the developing a property fact book including various information related to the hotel. Such as- General property description- Guest rooms- Restaurants and lounges- Meeting and banquet facilities- Audiovisual equipment- Transportation- Recreation facilities- Out side services- Vendors

Competition research includes the the gathering various information related to the competitors strengths, weaknesses, and their customer base.

Client research includes the study about client, annual reports, internet sites, business directories, articles, trade journals etc...

The sales kit Before making a sales call you should prepare a well organized and professional sales kit. Only the information pertinent to the client’s particular needs should be included, too much information results in clutter and appears unprofessional.

Projecting a professional imageYou are the official representative of the property and your appearance, attitude, and approach to clients can mean the difference between new business and a negative response. Remember, you never get a second chance to make good first impression.First and foremost, never smoke; chew gum, or drinking during a sales call. Other factors in projecting a professional image include nonverbal communication, voice quality, listning skills, and negotiation skills

Nonverbal communication- Appearance- The handshake- Territorial space- Public space- Social space- Personal space- Intimate space- Body language

Voice qualityThe sales presentation must be clear and understandable to be effective. The human voice is a persuasive instrument when used properly, and it is vitally important that you learn to use your voice as a selling tool.

Listening skillAt the other end of the spectrum, you must know when to stop talking. You need to show genuine interest in your clients’ need, and listening is and important part of building a rapport.

Negotiating skillListening plays a key role in yet another important sales skill, negotiating. Negotiation involves two or more parties coming together to reach an agreement for their mutual benefit.

3.2. The presentation sales callThe objective of a presentation sales call is to book business for the property .once you have prepared yourself for a presentation sales call it is time to make an appointment with the client and follow the five steps that will help ensure success.1 opening the sales calls2 Getting client involvement3 Presenting your property4 Overcoming objections5 closing and following up

1. Opening the sales callAll sales call begins with an opening. The opening should put the customer at ease establish rapport and build the prospects confidence and trust in you it divides in to following stages- Introduction Giving introduction about the presenter- Purpose statement

Stating purpose of the visit- Benefit statement

Reasoning out why he /they should listen to him and benefits what they can gain

- Bridge statementThis will indicate the body of sales presentation

2. Getting a client involvementSecond stage in the sales call focus on determining the client’s specific needs and involving the clients by asking questions questioning always precedes any sales presentation. This is is a fundamental rule. Questioning and presenting are separate steps.

3. Presenting your propertyYou should have prepared, rehearsed sales presentation that addresses the needs of each of the major market segments the property has targeted. For example a general sales presentation for meeting planners that relates specially to the needs of that segment. There are three skills required for a successful presentation; they are- Organization- Effective speaking- Visual aids

Closing the presentationWhen you have conclude the presentation, a transition phrase, which may be simple as “do you have any questions” can lead to the next step of the sales call overcoming any objections expected by the client.

4. Over coming the objectionsStep four of the sales call deals with those times when the client has objections to your sales presentation. Objection can occur at any time, and there is no reason to panic when an objection is raised. Some objections are a client’s way of asking fro more information and some may offer an opportunity to close the sale. Normally the objection fall in two three main categories

1. Price or rate2. Product or service3. Lack of interest 4. Closing and following up

Closing upMany sales people enjoy presenting their products, but hesitate when it comes to closing. Closing is not difficult, however, when you understand some fundamental principles involved. There two basic types of closes. Test close and major close. Test close try draw a reaction from the client. A major close is a question or statement that asked for sales.

Following upIt is necessary to follow up all the sales call was made. If a sale was not made, follow up can consist of a brief thank you letter. The letter should be accompanied by additional material not given to the client at the time of presentation and any materials specifically requested by the client.

Improving sales productivity

Sales is a highly competitive field, and you should constantly monitor your performance in no of areas. In order to measures your productivity, you must first have a written list of goals, goals keep you on track and allow you to gauge your success the basis for goals should always be the hotel’s marketing plan, and success should be evaluated in terms of achieving the optimum customer mix set by the property.

Time managementGood time management is leads to successful sales career. It is important to have track record for time utilization for each task. Your workday should be planned. Non selling task should be eliminated during during prime selling time, and emphasis given to work items with deadlines. In order to use time most effectively, time spent on routine work should be minimized. By using a hotel director a sales person can utilize his time effectively Key account manager A typical sales person at properties of all sizes handles 300 to 400 accounts. Landing new accounts does not mean that you must service an ever increasing number of clients. New accounts with high potential will replace those with the lowest potential for business, so that the total no of accounts you service will remain relatively stable as you continually increase the quality of the accounts being followed.

3.3. Concept of Tour Operator’s Growth & Future Prospect With general public access to the Internet, many airlines and other travel companies began to sell directly to passengers. As a consequence, airlines no longer needed to pay the commissions to travel agents on each ticket sold. Since 1997, travel agencies have gradually been disintermediated, by the reduction in costs caused by removing layers from the package holiday distribution network. However, travel agents remain dominant in some areas such as cruise vacations where they represent 77% of bookings and 73% of packaged travel. In 2009, the market size for travel agencies experienced a sharp decline, dropping from $17 billion the previous year to $14.5 billion.

In response, travel agencies have developed an internet presence of their own by creating travel websites, with detailed information and online booking capabilities. Travel agencies also use the services of the major computer reservations systems companies, also known as Global Distribution Systems (GDS), including: Amadeus CRS, Galileo CRS, SABRE, and Worldspan, which is a subsidiary of Travelport, allowing them to book and sell airline tickets, car rentals, hotels, and other travel related services. Some online travel websites allow visitors to compare hotel and flight rates with multiple companies for free; they often allow visitors to sort the travel packages by amenities, price, and proximity to a city or landmark.

Travel agents have applied dynamic packaging tools to provide fully bonded (full financial protection) travel at prices equal to or lower than a member of the public can book online. As such, the agencies' financial assets are protected in addition to professional travel agency advice.

All travel sites that sell hotels online work together with GDS, suppliers, and hotels directly to search for room inventory. Once the travel site sells a hotel, the site will try to get a confirmation for this hotel. Once confirmed or not, the customer is contacted with the result. This means that booking a hotel on a travel website will not necessarily result in an instant confirmation. Only some hotels on a travel website can be confirmed instantly (which is normally marked as such on each site). As different travel websites work with different suppliers, each site has different hotels that it can confirm instantly. Some examples of such online travel websites that sell hotel rooms are Expedia, Orbitz,Priceline and WorldHotel-Link.

The comparison sites, such as Kayak.com, SideStep, JetRadar, and TripAdvisor, search the resellers sites all at once to save time searching. None of these sites actually sells hotel rooms.

Often tour operators have hotel contracts, allotments, and free sell agreements

which allow for the immediate confirmation of hotel rooms for vacation bookings.

Mainline service providers are those that actually produce the direct service, like various hotels chains or airlines that have a website for online bookings.

Portals serve as a consolidator of various airlines and hotels on the internet. They work on a commission from these hotels and airlines. Often, they provide cheaper rates than the mainline service providers, as these sites get bulk deals from the service providers.

A meta search engine, on the other hand, simply culls data from the internet on real time rates for various search queries and diverts traffic to the mainline service providers for an online booking. These websites usually do not have their own booking engine.

3.4. Working Pattern of Travel AgentsTravel agents assess individual's and business people's needs to help them make the best possible travel arrangements. An agent may specialize by type of travel, such as leisure or business, or destination, such as Europe or Africa. Travel agents also promote travel packages on behalf of cruise lines, resorts and specialty travel groups.

Employment Facts - Travel Agents:

Travel agents held about 105,300 jobs in 2008. About 76% of all travel agents worked for travel arrangement and reservation services and about 60% worked for travel agencies. Approximately 17% were self-employed.

On a typical day a travel agent will:

give advice on destinations;

make arrangements for transportation, hotel accommodations, car rentals, tours, and recreation;

advise on weather conditions, restaurants, tourist attractions, and recreation;

provide information on customs regulations, required papers (passports, visas, and certificates of vaccination), and currency exchange rates to international travelers;

consult published and computer-based sources for information on departure and arrival times, fares, and hotel ratings and accommodations;

visit hotels, resorts, and restaurants to evaluate comfort, cleanliness, and quality of food and service;

3.5. Working Pattern of Tour Operators

Tour operators are responsible for organising and preparing holiday tours. They follow trends in the popularity or destinations and packages, and adjust company plans accordingly.

Responsibilities of the job vary according to the time of year and size of employer, but generally include:

deciding how many holidays to sell each season and the resorts/countries to use

visiting resorts to ascertain accommodation quality and suitability

liaising with coach operators, airlines, hoteliers and resort reps

agreeing service levels, contracts and costs

confirming customer names with airlines/hotels

collecting, evaluating and responding (as appropriate) to customer feedback

using market research information to guide decisions

producing brochures and internet-based information

providing pricing information

marketing holidays to clients via travel agents, websites, brochures and television advertising

handling bookings, invoicing and issuing of tickets

predicting profits or number of bookings

Typical employers of tour operators

Private touring companies

Small specialist organisers

Major international tour operators

Bespoke tour designers

Cruise lines

Vacancies are advertised online, in newspapers and trade publications including Overseas Jobs, The Travel Trade Gazette and Travel Weekly as well as their online equivalents. Networking and speculative applications are advisable, for

which the Travel Trades Gazette Directory may be helpful. A few larger companies operate graduate training schemes. Paid summer vacation jobs may be available with some employers.

Qualifications and training required

Graduates with degrees in leisure, travel, tourism, management, marketing, IT, business, languages or hotel and catering management may have an advantage. Relevant professional or vocational qualifications, such as NVQs and HNDs, may also be beneficial. Pre-entry experience gained working with the general public or within the hotel, tourism or travel trades (particularly overseas) are advantageous.

Key skills for tour operators

A demonstrable interest in travel

Knowledge of key holiday destinations

Foreign language skills

Excellent interpersonal skills

Communication skills

Customer service skills

Organisational skills

IT skills

Commercial awareness

Good time management skills

3.6. Effects of Travel Agents & Tour Operators on Tourism MarketGlobal scenarioTravel and tourism is one of the fastest-growing industries and a leader in many countries. It is expected to have generated around 9.4% of world GDP and 8.2% of total employment in 2009. The contribution of the industry to the global economy remains high despite a 4.38% decline in 2009. During the year, travel and tourism investment too declined by more than 12%.International tourist arrivals rose from 682 million in 2001 to 920 million in 2008. The global travel and tourism industry experienced a downturn in 2009 due to the global economic and financial meltdown. The industry was affected by low business volumes and consumer confidence, given the uncertainty about factors such as availability of credit, exchange rates, employment, and the H1N1 virus. Consequently, tourist arrivals fell 4% worldwide in 2009. Nevertheless, tourist arrivals increased 2% in the last quarter of 2009, led by recovery in the Asia Pacific and the Middle East.

The industry is expected to improve in 2010, as most of the leading economies are exiting the recession since end-2009. However, it is expected to be gradual as corporations, households and governments slowly recover. Given the improvement in global economic conditions, the UNWTO forecasts a 3-4% increase in international tourist arrivals during 2010. Asia is expected to continue showing the strongest rebound, while Europe and Americas are likely to recover at a more moderate pace.The expected rebound in tourism materialised in the first four months of 2010. This is reflected in the 7% increase in international tourist arrivals during January-April 2010. Tourist arrivals grew at a faster pace of 8% in emerging markets, while advanced economies reported a 5% increase.

In 2009, following the trend in tourist arrivals, international tourism receipts also recorded a decline. It is estimated to have declined by 5.7% to US$ 852 bn. The decline in earnings is sharper than in arrivals, as during periods of slowdown, tourists tend to stay closer to home and prefer to travel for a shorter duration of time.The travel and tourism industry can be divided into inbound and outbound tourism; inbound refers to countries attracting the largest number of tourists and outbound refers to countries from where the largest number of tourists originate.World inbound tourismInternational tourist arrivals were 880 million in 2009. The European region continues to attract the largest number of tourists, accounting for around 52% of total traffic in 2009. The Asia Pacific and Americas follow with shares of 21% and 16% respectively. France, USA and Spain were the top three tourist destinations

in 2009; China and Italy rank fourth and fifth respectively in terms of tourist arrivals.

International tourist receipts were down 5.7% in 2009. Europe continues to draw the highest amount of total receipts, accounting for 49%; the Asia Pacific and Americas formed around 24% and 19% respectively. USA, Spain and France were the top three earners during 2009 in that order; Italy and China ranked fourth and fifth respectively.

Germany, USA and the UK are the leaders in terms of international tourism spending. During 2009, China overtook France to become the fourth-largest tourism spender.Some trends in consumer spending intensified during the global slowdown. These include late booking, preference for short haul trips compared with long haul ones (travelling closer and for shorter periods of time), and demanding value for money. These changes in consumer preferences would require changes in business models of players in the industry.Air transport, which plays a significant role in the global travel and tourism industry for both business and leisure travel, was also adversely affected during 2009.Indian travel and tourism industryIndian tourism offers most diverse products globally. The country’s rich history, cultural heritage, beauty, diversity of religion and medicine fascinate budget and luxury travelers. Tourism in India has registered significant growth over the years. This has been led by growth in both leisure and business tourism. Rising incomes, increasing affordability, growing aspirations, increasing globalisation, and a growing airline industry along with improvement in travel-related infrastructure have supported industry growth. Tourism holds immense potential for the Indian economy. It can provide impetus to other industries through backward and forward linkages and can contribute significantly to GDP.

India’s travel and tourism industry is expected to generate revenue of Rs. 1,970 bn (US$ 42 bn) in 2010, according to the World Travel & Tourism Council (WTTC). This would be around 3.1% of total GDP. However, since travel and tourism touches all sectors of the economy, its real impact is greater and the travel and tourism economy directly and indirectly accounts for ` 5,533 bn (US$ 118 bn), equivalent to 8.6% of total GDP.

Personal travel and tourism is the most significant contributor, accounting for 55% of the total market, while business travel forms only 9%. Capital investment is also significant with a share of 24%. Hotels, air transport, surface transport, basic infrastructure, and facilitation systems environment are some of the related sectors.

The share of the Indian travel and tourism industry globally is very less. However the industry holds immense potential. In fact, India has been ranked among the leaders by the WTTC for long-term (10-year) growth prospects. Further, a globally renowned travel magazine, Conde Nast Traveler, ranked India among the top 10 tourist destinations of the world. JBIC has also ranked India as the fifth most attractive investment destination. India is probably the only country that offers various categories of tourism with its geographical diversity and rich cultural heritage.Structure of the tourism industry

Tourism comprises activities of people travelling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and social, recreational, and knowledge seeking purposes.The tourism industry is primarily service and people oriented; it is made up of businesses and organisations belonging to various other industries and sectors. It is an interplay among these businesses and organisations/persons which offer “travel experience” to tourists. The tourism industry comprises hospitality (related to accommodation and dining), travel (transportation services through different modes), and various other businesses which offer services and products to tourists. The components of the tourism industry are shown in Exhibit 1.1.

Most of the players in the tourism industry are SMEs. The unorganised sector dominates the industry in India. Hotels, airline companies, and tour operators form the organised sector.Specialist travel service providers assist tourists with travel arrangements. These providers include travel agencies who are involved in retailing of travel products directly to the tourists (individuals or groups). They provide information on different travel destinations and advise customers on travel plans. They also sell associated products such as insurance, car hire, and currency exchange.Business travel agencies specialise in making travel and accommodation arrangements for business travelers and promoting conference trades. The tour operators provide packages for individuals while the principals provide basic travel and tourism related services.Tour operators offer holiday packages which comprise travel (road, rail, sea, air as well as to and from the destination airport, car hire, excursions, etc) and accommodation (hotels, guesthouses, apartments, etc) services.Transport service providers could be airlines, cruise lines, car rentals, and rail companies. A tourist’s choice of transport would depend on the travel budget, destination, time, purpose of the tour, and convenience to the point of destination. Accommodation could be hotels and motels, apartments, camps, guest houses, lodge, bed and breakfast establishments, house boats, resorts, cabins, and hostels. In addition, tourists also require catering facilities, which a

variety of outlets for food and refreshments offer. These include hotels, local restaurants, roadside joints, cafeterias, and retail outlets serving food and beverages.Another major component of the travel and tourism industry is ‘attractions’ such as theme parks and natural attractions including scenic locations, cultural and educational attractions, monuments, events, and medical, social or professional causes.The tourist information and guidance providers include a number of service providers such as those offering insurance, recreational, communication, and banking services; government agencies; tour guides; industry associations; packaging agents; ticketing agents; and holiday sellers.

Tourism is not only a growth engine but also an employment generator. According to the Economic Survey 2011-12, the sector has the capacityto create large scale employment both direct and indirect, for diverse sections in society, from the most specialized to unskilled workforce. It provides 6-7 per cent of the world‟s total jobs directly and millions more indirectly through the multiplier effect as per the UN‟s World Tourism Organization (UNWTO)

1. The importance of tourism as a creator of job opportunities can be understood from the fact that in India every one million invested in tourism creates 47.5 jobs directly and around 85-90 jobs indirectly. In comparison, agriculture creates only 44.6 jobs and manufacturing a mere 12.6 jobs. Moreover tourism is the third largest foreign exchange earner after gems and jewellery and readymade garments

2. Foreign Tourist Arrivals (FTAs) During 2011 FTAs in India were 6.31 million with a growth of 9.2% over 2010. FTAs during 2012 were 6.65 (provisional) million with a growth of 5.4%, as compared to the FTAs of 6.31 million during 2011.Foreign Exchange Earnings (FEE) from Tourism Tourism is an important sector of Indian economy and contributes substantially in the country‟s Foreign Exchange Earnings. FEEs from tourism, in rupee terms, during 2011 was Rs.77,591 crore (provisional), with a growth of 19.6%, as compared to the FEEs of Rs.64,889 crore (provisional) during 2010. During 2012, the Foreign Exchange Earnings (FEEs) from tourism registered a growth of 21.8% from Rs.77,591 to Rs. 94,487 crore (provisional) when compared to FEEs during 2011. A statement giving FTAs in India and FEEs from tourism fro the years 2000 to 2012 is given below:

Business gain with the Help of Travel Agents & Tour Operators

(All in Crore)

Key Brands/Segments

Taj (5-star Deluxe), Vivanta by Taj (upper upscale), The Gateway (upscale), Ginger (economy)

The Oberoi (5-star Deluxe), Trident (5-star), Maidens (4-star)

The Leela (5-star deluxe)

The Orchid (5-star), VITS (4-star). Lotus (resorts),Gadh (heritage)

Royal Orchid (5-star), Regenta (4-star), Royal Orchid Central (4-star), Royal Orchid Suites (4-star long-stay), Central Blue (3-star), Ramada (economy) and Royal Orchid Resorts (leisure)

Year 2010 Total Revenue

2516.5 1038.3 449.2 107.8 120.4

By Travel Agents 1051.1 424.1 191.7 42.2 39.6By Tour Operators 1149.2 502.1 198.5 43.2 58.7Others 316.2 112.1 59.0 22.3 22.1Year 2011 Total Revenue

2891.7 1288.0 525.8 127.7 152.1

By Travel Agents 786.6 472.7 193.3 46.9 50.9By Tour Operators 1312.6 504.1 295.3 59.5 53.3Others 792.5 311.2 37.2 21.3 47.9Year 2012 Total Revenue (Q1)

521.5 313.8 178.4 34.7 43.5

By Travel Agents 235.8 173.3 96.9 13.9 14.6By Tour Operators 252.3 93.1 58.3 12.6 17.6Others 33.4 47.4 23.2 8.2 11.3Year 2012 Total Revenue (Q2)

357.6 237.2 127.9 29.8 35.8

By Travel Agents 114.3 25.4 39.7 7.3 9.3By Tour Operators 180.2 167.3 58.4 16.4 17.7Others 63.1 44.5 29.8 6.1 8.8No. of Hotels 112 24 7 16 20

Room Inventory 13606(Dec 2011)

3721 (Mar 2011)

1869 (Dec 2011)

1149 (Dec 2011)

1,724 (Feb 2012)

Foreign Tourist Arrivals and Foreign Exchange EarningsDuring the years 2000-2012

Year Foreign TouristArrivals (in

nos.)

PercentageChangeOverPreviousYear

ForeignExchangeEarnings

inCrore

PercentageChangeOverPreviousYear

ForeignExchangeEarnings(MillionUS$)

PercentageChangeOverPreviousYear

2000 26,49,378 6.7 15,626, 20.6 3,460 15.0

2001 25,37,282 -4.2 15,083 -3.5 3,198 (-)7.6

2002 23,84,364 -6.0 15,064 -0.1 3,103 3.0

2003 27,26,214 14.3 20,729, 37.6 4,463 43.8

2004 34,57,477 26.8 27,944 34.8 6,170 38.2

2005 39,18,610 13.3 33,123, 18.5 7,493 21.4

2006 44,47,167 13.5 39,025 17.8 8,634 15.2

2007 50,81,504 14.3 44,360 13.7 10,729 24.3

2008 52,82,603 4.0 51,294 15.6 11,832 10.3

2009 51,67,699 -2.2 53,700* 4.7 11,136* (-)5.9

2010 57,75,692 11.8 64,889# 20.8 14,193# 27.5

2011 63,09,222 9.2 77,591# 19.6 16,564# 16.7

2012 66,48,318 5.4 94,487# 21.8 17,737# 7.1

# Advance Estimates*Revised Estimates

Source: Ministry of Tourism, Annual Report 2012-13

Domestic tourism

The domestic tourist visits during the year 2011 are estimated to be 851 million, showing a growth of 13.8% over 20103.

2. ROLE OF THE GOVERNMENT

The role of the Government in tourism development has been redefined from that of a regulator to that of a catalyst. Apart from marketing and promotion, the focus of tourism development plans is now on integrated

development of enabling infrastructure through effective partnership with various stakeholders.

Tourism development in India has passed through many phases. The development of tourist facilities was taken up in a planned manner in 1956 coinciding with the Second Five Year Plan. The approach has evolved from isolated planning of single unit facilities in the Second and Third Five Year Plans. The Sixth Plan marked the beginning of a new era when tourism began to be considered a major instrument for social integration and economic development.

However, it was only after the 80s that tourism activity gained momentum. A National Policy on Tourism was announced in 1982.In 1992, a National Action Plan was prepared and in 1996 the National Strategy for Promotion of Tourism was drafted. In 1997, a draft New Tourism Policy in tune with the economic policies of the Government and the trends in tourism development was published for public debate. The draft policy is now under revision. The proposed policy recognizes the roles of Central and State Governments, Public Sector Undertakings and the Private Sector in the development of tourism. The need for involvement of Panchayati Raj institutions, local bodies, non-governmental organizations and the local youth in the creation of tourism facilities has also been recognized4.

As per the working strategy for the 12th Five Year Plan, the Ministry of Tourism has adopted a „pro-poor tourism approach which could contribute significantly to poverty reduction. More than half of Tourism Ministry’s Plan budget is channelized for funding the development of destinations, circuits, mega projects as also for rural tourism infrastructure projects (see Annexure-I). The Ministry also ensured that 10% and 2.5% of its total Annual Plan (2012-13) outlay went to the tourism projects in the North-Eastern region and the tribal areas respectively5.

The other major development that took place were the setting up of the India Tourism Development Corporation in 1966 to promote India as a tourist destination and the Tourism Finance Corporation in 1989 to finance tourism projects. Altogether, 21 Government-run Hotel Management and Catering Technology Institutes and 14 Food Craft Institutes were also established for imparting specialized training in hoteliering and catering.

Internal Marketing And

Sales By Travel Agents

& Tour Operators

4. INTERNAL MARKETING AND SALES BY TRAVEL AGENTS & TOUR OPERATORS

4.1. INTRODUCTIONA concept that sees employees as “customer” who must be sold on the property they work for and convinced of their importance to its successes.

What is an internal sale?Specific sales activities engaged in by various employees of a property in conjunction with a program of internal merchandising to promote additional sales and guest satisfaction. Management can encourage these vital relation ships in three ways.1 .provide an environment for guest – employee relation.2. Instill pride (recognizing the value of employee and their positions)3. Provide training that encourages employees to become more helpful.

4.2. THE ROLE OF GENARAL MANAGER IN INTERNAL SALES The attitude of the general manager will greatly influence the success of an internal sales program. If the GM is not customer and sales oriented, it is unlikely that the staff will be highly motivated. A general manager can develop a sales oriented staff by,- hiring sales oriented employees- training employees in sales techniques- motivating employees to sell

The role of employees in internal sales Many employees make guest contacts while the guests are in the hotel. here the employees are encourage to make good rapport with the customer to get their repeat business. it is especially important to build guest loyalty to avoid losing even a small part of your current guest base to competitors.

Relationship sellingRelationship selling can be defined as building guest locality by creating enhancing and maintaining a good relationship with guest. There several ways for properties to learn more about their guests so they can build relationship with them. One common method used is the use of guest profiles. Other way is getting information through staff.

Employee trainingEmployee training should be included a number of areas that will enable employees to assist guest and build rapport. These areas include

- knowing the propertyEmployees are encouraged to study the property fact book in order to get a good knowledge about the property.

- knowing the communityIt important to aware the area surrounding hotel and places of interest in the area. Employee can promote such things to their customers.

- Interacting with guestPositive interaction with guest is crucial to making a good impression and generating repeat business. Whenever possible called guest by their names.

- Learning sales skills.Sales skills help employees to make the most of sales opportunities in their particular areas of guest contact.

UpgradingReservation is an effective way to increase revenues, but very few front desks or reservations staffs are trained to use upgrading techniques .upgrading can be accomplished without pressuring a guest by using one of three methods.

- Top down methodGuests are encouraged to reserve middle or high rate rooms.

- Rate category alternative methodsIf the guest can’t afford high rates, Guests are encouraged to select middle rates range of rooms

- Bottom upIf the guest can’t afford high rates and middle rates Guest are encouraged to buy low rates rooms

4.3. SUGGESTIVE SELLINGIt is a process of influencing guest’s purchase decision through the use of sales phrases. The entire employee can practice these techniques to increase the sales volume.Ex; food server can suggest a cocktail before the dinner.

4.4. EMPLOYEE INCENTIVE PROGRAMMEEmployee incentive programs can be an effective means of motivating employees to sell and of tracking sales results. Here the employees are rewarded in various ways for their extra selling efforts. When developing incentive programs management should realized that while incentives in the form of cash, merchandise, or trips are often used to motivate employees.

4.5. INTERNAL MERCHANDISINGInternal merchandising is the use of guest room services directories, Restaurant tent cards, Elevator posters, Bulletin boards and other promotional items to promote the property’s facilities and services.

CONCLUSIONAND

SUGGESTIONS

5. CONCLUSION AND SUGGESTIONS 5.1 Conclusion

India has unique opportunities for tourism development. Findings from the study indicate that it is ideal for the country to be seen as “A World of Wonders”. The country has a rich biodiversity concentrated in its national parks, heritage sites and prime tourist destinations. Despite this potential, India is somewhat not yet a tourism hotspot. Product development remains unevenly drawn across rural and urban lines. Ambiguous perceptions from visitors as reported by tour operators need to be redressed to promote India ’s tourism brand. Because of immense economic changes, value for money of India ’s tourism, and profound policy reforms India cannot be spared for the emerging discipline of destination branding and marketing. Despite economic recession in the past decade, the country has potential for achieving the appropriate balance of marketing and management, balancing the expectations and interests of visitors and residents. This study contributes to the field of destination (re)branding. By focusing on tour operators’ perceptions, the study provides a new perspective on destination brand development. The study also seeks to alter the role attributed to tour operators in the overall destination brand development process so that they can be seen as important stakeholders. Though not definitive, the findings of the study suggest that long-term success and strength of a destination brand is contingent on whether the brand’s promise (coverage) and value is effectively and consistently confirmed between visitors and tour operating organisations. Somewhat overlooked in terms of the brand building process, tour operators have to be regarded highly in brand development efforts championed by the DMO. Finally, this study points to the need for a large scale study encompassing tourism stakeholders perceptions on India ’s tourism brand for a coordinated brand building process.

5.2 Suggestions

First things first:

Please do not misunderstand. In developing a few ideas about improving the current state of rural Irish tourist industry I have no intention to criticize the people working within it. Whether owner or employee they do a good job. The Irish are great hosts, polite, ever friendly. Their service represents excellent value money.

I am not talking of Dublin's tourist industry, either. That’s another kettle of fish. I am just talking about the compartmentalized tourist trade in rural western Ireland, maybe in some other Irish country-side areas as well.

As for me, I have been strongly involved in regional marketing and public funding of tourism in Germany for 22 years, semi-retirement now allows me a marvellous

four-weeks-stay in West Donegal. I relax, take some exercise, enjoy the scenery, the people, the pubs. At the same time I cannot ignore the impact of recession, pondering what can be done about it.

Talking to a lot of people about that, some proposals arose which may not be new, even might have been published already. Nevertheless I have been asked to write them down. So I did, from the viewpoint of a German who loves Ireland very much, without being love-blind either.

1. Remain small and genuine

When travelling through rural Ireland 30 years ago you came across left and right derelict old farm cottages all over. Most of them seem to have vanished now. Currently you are encountering empty new buildings and decayed not too old homes in many villages. They are the remains of the real estate boom and too much money wasted on the wrong place. As money had been cheap and loans easy to take erecting eight (holiday) homes for one million and selling them for two, seemed to be a great deal. Now you can be happy to get 0.5 million for it, if all, and that kind of business has ruined thousands of families and nearly a whole country.

Now, as Ireland seems to get slowly out of recession, it seems to be the proper time for a fundamental change in tourism policy. Forget the shiny big deals. Small is beautiful. Don’t believe letting a dozen cottages to tourists will give you fast a nice living. Take three of them, keep them fine, market them professionally, hire out them in a proper familiar way, develop other sources of income the same time – and you will have a decent life.

Rural tourism in western Ireland cannot be in direct competition to the favoured holiday locations abroad. It has to be an alternative offer for people who like the genuine thing, who want to explore, who want individual treatment, who want to boast about “their” place in India at home. There are many of them all over the world who have the modest means and all opportunity to enjoy holidays in India. Now, just give them the motive to travel to your place!

Ireland can and should never be a destination for mass tourism; it’s the individual tourism which can bring modest profit to your country. Do not imitate, stay as unique as you are. Just to say it pictorially: There is no need to glance at other people’s plate – there is good enough on your own. Just be proud of it, and use it wisely.

2. Find your target group

Ireland has no communication problem. The Irish - being quite sociable, talkative and quick thinking - have developed astonishing skills using the internet, meanwhile the most important medium for tourist marketing communication. Branding is no problem either. The Irish have shown due respect to the originals all along. But they never have been a tribe of merchants. So it’s the product development part of marketing which has to be regarded more.

But first of all you have to fix your targets. You may have to get your seven B&B rooms rented 150 nights a year for a fair annual income, as a family restaurant owner you need a turnover of 150.000 Euro per year to cover your costs and keep your family, and so on. Second: You have to admit the dire fact that the very ones who will help you achieving your object (your potential guests) are not an amorphous mass. They are assembled from very different groups with very diverse attributes. People who belong to the same group have sufficient things in common. If they can be considered as eventual guests they cluster a target group.

It’s all about eventual target groups. You have to find out their needs, interests, bad habits. Then you look “at your plate”. What do you see there – does it suit your target group generally? If not, go on to the next group. If yes, think about it. What can I do to make the “goodies” on your platter even more attractive before I am going to start advertising? That’s the art of product development as part of professional marketing.

Let me give you an example about your eventual target group in Germany. There are 80 million Germans. Half cannot afford travelling abroad. Another quarter has lost its mobility for travelling, is too old, too young, too sick, whatever. From the remaining 20 million Germans there will be 15 million which love to stay all day on beach or pool needing at least 35 degrees to be happy. They won’t eat from your Irish platter in any case.

There are five million Germans left – about as many as Irish live in India. Among them there will be young people in search for adventure of all kinds, students and professors, doctors, engineers and independent entrepreneurs and about half a million of teachers in retirement. So, now you are close. The rich ones will marginally come; Ireland is not posh, thank God. Some others may be prejudiced; some will suffer from aviophobia and shrink from the two-days-journey here by car and ferry. But anyway, there are enough Germans left who would like to come to Ireland, who have some English and interest in culture and

scenery and don’t mind some drops of rain as long there is a surplus of dry days and even a sunny day, occasionally. They just have to be motivated.

Look at their lives. Getting older, their children are grown up. After long years of hard work and never ending family duties they are ripe to give themselves a treat. They long for leisure, are open-minded for some choice animation as well. They have a bit of money to spend and do not depend on school holidays any more. They might be retired, their doctors urge them to get some

physical exercise to stay in shape and feel fine. They like to eat and drink, many of them drink every night.

That’s your target group in Germany and in a couple of other European countries, too - big enough to fill your beds for years. Rural Ireland basically provides everything this well-educated, middle-aged and elderly people need - maybe with the exception of an ambitious cultural event or two. But then there is Dublin, and local arts and artisans and the famous local publican’s music night all the same. They will settle for it, and will come back.

By the way: Gaining the favour of this target group helps you to cope with one of the most serious problems of Irish tourism – its seasonality. Many of its members avoid peak season, instead prefer spring and autumn or special time slots like the week between Christmas and New Year. (The Danish tourist industry is dominated by the renting of holiday cottages. They are rented only weekly, at a very flexible price. This particular week is the most expensive one to book despite the fact Denmark having more or less the same weather condition as Ireland in wintertime.) Comfortable rooms, pubs, even most outdoor activities are not sun-bound. If you not already practise seasonal pricing and seasonal offers you should think about it.

3. Shape your offers systematically

True - you offer nice and affordable accommodation, you have cars and bikes to rent. Irish food and air is good and healthy, the scenery great and people amiable. But nowadays that’s not enough. What about the needs and habits of your target groups, which have a wide choice of destinations?

Regarding the above-mentioned, not-too-small mid-European target market – your touristic offers are much too sparse. Nordic Walking has become a very popular sport in Germany among elder people. Irish roads and paths are quite convenient for it. How many Nordic Walking sticks do you keep for your guests right now? Irish hills and shores yearn for hiking and climbing. How many of you provide maps, and gear and practical advice? There are some fine bike shops all over the country, but there is no electric bike to rent north of Mayo. You expect 67 years old teachers in retirement to explore the hilly roads of Ireland by bicycle? Yes, they will! Give them the little help of 250 watts, and they will love it and come back next year.

What about the evenings? Do you offer a little shuttle service to the pub or the next village’s music night? (You may even charge for this additional service. Guests who are going to spent thirty euro per person for entrance and drink, don’t mind the additional three for safe transport there and back.) What about little fridges in your guest rooms, to be filled with drinks by you or your guests? Wi-Fi with no charge is a must, some home channels via satellite gain you sympathy. Good service makes you irresistible, and ever pays back.

I suggest you improve your service and offers on a systematic basis. Think about it, do a bit of online research, talk it over with other people. I am sure there will be more, even better ideas. But take care, as there is a German saying: "The bait has to be liked by the fish, not by the fisherman". It’s the needs, the habits and the needs of your target group, which are to shape your touristic offers, not yours.

 

4. Understand your work as part of the product

As hard you try, all you can offer is only part of an all-engrossing tourism product. The product may be defined as “(Alive-and-well) Holidays in north-western Ireland”. There is the “setting” of scenery, people, way of life, weather conditions. This cannot be or should not be changed. Then there are the variables: local facilities, accommodation, activity offers, quality of service, marketing communication. The sum of all determines the product’s appeal for certain target groups. So you know: your success depends on the good work of others as well.

The conclusion to be drawn is clear enough: You have to co-operate, work hand in hand with each other. Instead of trying to do it all on your own you should be in search for partnerships. In this partnership each partner puts in the particular part of the product he knows best. There are ways to connect the offers while keeping your right of self-determination completely.

For example: You want your accommodation guests to command all the outdoor equipment they need for an alive-and-well Holiday - the next sports and/or bike shop being 23 kilometres away. So what? Start a partnership with that shop. They lend out all you need to you, for a fair price. You do not have to learn much about bike-repairing and insurance, you don’t bother about the best source of supply. They take care of merchandise purchase; they have the technical knowledge and offer professional service. You lend out their equipment to your guests, to a price which covers all your costs, incl. your own for maintaining the service. (Don’t expect making much money with this service, but then, you have no risk either.) Your guests get all the equipment they need and are happy with it. That will pay back. You even use this service for your marketing communication. People can book bikes and walking sticks and else in advance, find it ready arriving at your place. A real nice selling point!

Not a bad deal for the sports/bike shop either. On one hand you must offer your accommodation partners better prices than you can charge while direct hiring. Of course the further equipment to lend has to be bought first, too. On the other hand your raising demand will lead to better purchase conditions at your suppliers. And then: Don’t think you just switch from direct lending to lending via partners. Part of turnover will be additional, a part you can enlarge easily. There will be only the basics at the accommodation. But this basic offer is a bridge to your shop – you just have to use it. Take the bikes. Part of your accommodation partner’s deal with his guests can be a weekly check-up with no costs at your shop. Fancy bikes need a bit of maintenance now and then anyway. So your partner’s guests come to your shop. You adjust the saddle, tight up an

occasional screw. Best chance to sell bike accessories, caps and gloves, maps, literature, souvenirs and so on. That’s nice additional turnover.

There are chances for co-operation all over. What about hostels with self-catering accommodation? Why not give the next super-market and small-town butcher, the sport shop and the publican next village the chance to advertise themselves? Just in a modest way, in the entrance hall or the common room’s information board, beside the bus timetable and opening hours. The money isn’t big, the main idea is networking, and giving your guest useful information. Networking is small business’ enhancement program, but do not get alliances with partners you don’t now. You are a quality provider of tourist offers; the other has to be too. Otherwise you will spoil your own branding.

5. What public administration can do

Of course there are large investments in infrastructure already done by Government. Dublin Airport lost its charm but gained considerable improvements for passengers. The Irish road system has been improved last 15 years considerably, as much in quantity as in quality. Public transport is sparse; still used only by people with no car on hand – and not, as it should be, as an attractive alternative to the motorised individual transport. The LUAS tram in Dublin is a well-considered exception that proves the rule.

A couple of public funded fancy spas here and there, the sponsoring of high-level music festivals in the west coastline counties, and an efficient and long lasting international promotion campaign of the destination of Ireland – with this kind of government activities the Irish tourist trade could do fine. To be realistic: These things are nice to have but never to get.

With its limited resources the Irish government should act unspectacularly but effectively. Proper local authorities always need more funds for public facilities. These are small but important things like keeping the hiking trails in good shape, providing sheltered viewing points, promoting local crafts and musicians, enhanced maintenance of public greens and more benches for tired hikers and bikers at the trail and the village crossroad as well.

There is one exception: Regional tourism marketing is a common task, which has to be financed and improved equally from both private and public sources. But that work will be done after you have revised and improved your tourism product, to provide a sound basis from which to work.

5.3 References [1] Ndlovu, J. Branding as a strategic tool to reposition a destination: a survey of key tourism stakeholders in India . Unpublished PhD Thesis. University of Pretoria, 2009.

[2] Mirimi, K., Utete, B., Mapingure, C., Mumbengegwi, P and Kabote, F. Appropriateness of branding as a tourism resuscitation tool for India , American Journal of Tourism Management, 2 (2), 2013, 47-54.

[3] Muleya, D. Tourism tumbles in India . (Online) Available from http://allafrica.com/stories/200211220434.html. 2002, [Accessed: 23-10-2013].

[4] Ndlovu, J., Nyakunu, E and Heath, E.T. Branding a destination in a political crisis: Re-learning, re-thinking and realigning strategies, NJLC, 3 (2), 2009, December.

[5] Dolnicar, S. and Huybers, T. Different Tourists - Different Perceptions of Different Cities Consequences for Destination Image Measurement and Strategic Destination Marketing In J. A.. Mazanec and K. Wöber (Eds.), Analysing International City Tourism, Vienna / New York: Springer, 2010, 127-146.

[6] Anholt, S. Competitive identity: the new brand management for nations, cities and regions (New York, NY: Palgrave MacMillan, 2007).

[7] Hosany, S., Ekinci, Y., and Uysal, M. Destination image and destination personality: An application of branding theories to tourism places. Journal of Business Research, 59 (5), 2006, 638-642.

[8] Ndlovu, J and Heath, E.T. Re-branding of India to enhance sustainable tourism development: Panacea or Villain. School of Social Sciences, University of KwaZulu-Natal, Howard Campus, Durban, South Africa, 2013.

[9] Nworah, U. Critical Perspectives On The Heart Of Africa Image Project, 2006.

[10] Björk, P. Brand Recovery: A Quick Fix Model for Brand Structure Collapse, Journal of Travel and Tourism Marketing, 29(6), 2012, 520-531.

5.4 BIBLIOGRAPHYSah, P. (2014). Project Report on Travel Agents & Tour operators are beneficial for Tourism Industry. (P. Sah, Ed.) Meerut, Uttar Pradesh, INDIA: JPIHMCT.