Introduction to travel and tourism

A travel agency is therefore an enterprise or business which is authorised by the main
providers of services to sell such services to the travelling public for which they are paid
a fee or commission. The main suppliers of services are called ‘industry principals’.
Such services may include:
• Air transportation
• Water transportation
• Rail transportation
• Motor transportation
• Hotel/restaurant services and accommodation
• Entertainment
• Package tours and excursions
• Foreign exchange facilities (Bureau de Change)
• Travel insurance
• Passport and visa services
All agencies, whether large or small, must fulfill certain minimum requirements. These include:
• Proper finance base
• Adequate premises
• Trained and qualified staff
• Government license or approval (where applicable)
• Authority to sell on behalf of industry principals in return for a commission
For travel agents to operate successfully, the staff must be trained to a high standard.


WHAT IS A TOUR OPERATOR?
Tour operators can also be divided into two groups. There are those which deal with outbound business from their own country. These operators have staff which travel abroad, buying hotel bed space, negotiating ground arrangements such as meet and greet services, local transport, representation for their clients sightseeing and entertainment, to which they add international air transport. (The partner companies which provide many of these services in the host country will be known in their own country as tour operators, inbound operators, or ground operators, and even, sometimes, as destination managers.) The complete package of arrangements and services is then sold at an inclusive package price to clients through retail agents in the home (generating) country of the tour operator. The outbound tour operator makes his money by selling the complete package at a higher price than he has paid for all the ingredients.
The tour operating sector must also fulfill certain high operating standards, very like those for the retail sector (see above)
Client’s book and pay for their holidays from retail agents shop or offices in their own towns in their own country. The retail agent receives commission from the tour operator on the sales made.