Tourism and Travel Industry Concepts
What this domain tests
Tourism and travel industry concepts cover distribution channels, travel intermediaries, package components, documentation, destination planning and the commercial relationships that connect suppliers with travellers. Expect questions on GDS, FIT and group business, allotments, commissions and the responsibilities of agents and operators.
Core rules
- The tourism distribution chain links suppliers (airlines, hotels, car rental, attractions) to intermediaries (tour operators, travel agents, OTAs, GDS) and finally the traveller.
- A GDS is a computer reservation system used by travel professionals to book air, hotel and car inventory; it is not the same as a consumer review site.
- FIT means free independent traveller; group business is contracted differently, often with allotments, release dates and deposit schedules.
- A package bundles two or more components, usually transport, accommodation and sometimes activities, at one price.
- Commission is a percentage paid to an intermediary on the selling price; markup is an amount added by the seller. They are not interchangeable.
- Travel documents, visas and health requirements are the traveller's responsibility, but a professional agent should advise and check current rules.
Worked example
A hotel gives a tour operator an allotment of 15 rooms per night with a 30-day release. By the release date the operator has sold 12 rooms. The remaining 3 rooms return to the hotel's general inventory. If the operator sells a package at €1,200 and pays 10% commission to a retail agent, the agent receives €120 and the operator retains €1,080 before its own costs. If the operator instead applies a 10% markup, the selling price becomes €1,320, not €1,200; the commission base also changes. Always identify which convention the contract uses.
Traps that cost marks
Treating GDS and OTA as synonyms; adding commission and markup together; missing an allotment release date; assuming the agent guarantees a visa; and quoting a package price without checking whether transfers and taxes are included.