Travel Agency and Tour Operations
This domain tests the difference between an agent and an operator, the documents a traveller needs, and how a package is priced.
Two different businesses
A travel agent is a retailer: it sells principals' products (airline seats, hotel rooms, packages) for commission or a service fee, and carries no inventory risk. A tour operator is a wholesaler: it buys components in bulk, assembles a package, sets its own price, adds margin and bears the risk of unsold seats and rooms.
Functions and bodies
Information and advice; itinerary planning; reservation and ticketing (GDS/CRS, PNR creation); documentation (passport, visa, insurance, forex); tour packaging; MICE and incentives; 24x7 support. Trade bodies: IATA (airline accreditation and BSP), TAAI (agents), TAFI (tour operators), IATO (inbound), PATA, UNWTO.
Documents and rules
Passport validity of at least six months beyond travel; correct visa category (tourist, business, transit, e-visa); confirmed return ticket; e-ticket with PNR; day-wise itinerary; hotel vouchers; insurance. FIT (free independent traveller) versus GIT (group inclusive tour).
Worked example: costing a 2-pax Mumbai–Delhi 3N/4D package
Airfare ₹9,000 × 2 = ₹18,000. Hotel ₹4,500 × 3 nights = ₹13,500. Sightseeing ₹4,000. Meals ₹3,000. Transfers and taxes ₹2,500. Total cost ₹41,000. Margin at 10% = ₹4,100. Quoted price ₹45,100, that is ₹22,550 per person. Reasoning: margin is charged on total cost, and the quote is per person because that is how clients compare packages; GST is shown separately.
Traps
Calling an agent an operator (risk and commission distinction); quoting before adding margin; mixing per-person and per-package figures; ignoring visa processing time.