Travel and Tourism Industry Components: Transport, Accommodation and Intermediaries
This domain tests the functions, classifications and commercial links among transport, accommodation and intermediaries.
Transport
- Air: scheduled, charter and low-cost carriers (point-to-point, ancillary revenue, limited interlining). IATA represents airlines; ICAO is the inter-governmental body. Know PNR, e-ticket, hub-and-spoke versus point-to-point.
- Rail: IRCTC bookings, IndRail pass; Assam is linked through Guwahati, with the Dhola–Sadiya (Bhupen Hazarika Setu) and Bogibeel road-rail bridges over the Brahmaputra.
- Road and water: shared taxis and buses provide the last mile to Kaziranga; ferries from Nimati Ghat reach Majuli.
Accommodation
Types: hotel, resort, motel, heritage property, boutique hotel, homestay, guest house, serviced apartment. In India, star categories (1–5 star, 5-star deluxe, heritage) are granted by the HRACC under the Ministry of Tourism. Meal plans: EP (room only), CP (room + breakfast), MAP (breakfast + one major meal), AP (all meals). Key metrics: occupancy %, ARR, and RevPAR = ARR × occupancy.
Intermediaries
A travel agent acts for principals and earns commission (IATA accreditation for air). A tour operator is a principal: it buys components, assembles a package and adds a markup. OTAs sell online; GDS platforms (Amadeus, Sabre, Travelport) connect agents to airline and hotel inventory.
Worked example
A client wants two nights at Kaziranga from Guwahati. Option A: drive about 200–220 km, 4–5 hours. Option B: fly Guwahati–Jorhat, then about 90 km by road. Reasoning: the flight saves several hours but adds airport transfers, cost and cancellation risk; on a two-night trip the drive often gives better value. State the trade-off rather than only the price.
Traps
- Confusing agent (commission) with operator (markup).
- Assuming low-cost carriers appear on GDS.
- Mixing EP with MAP.
- Quoting RevPAR as equal to ARR.