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Maharashtra HSC Tourism & Hospitality Management (Vocational) study materials
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Maharashtra HSC Tourism & Hospitality Management (Vocational) practice questions

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Question 1Introduction to Tourism – Concepts, Definitions and Types

In the study of tourism, which of the following best defines a 'tourist' as distinguished from an 'excursionist'?

  1. A person who permanently relocates to another country
  2. A visitor who travels only for business purposes
  3. A visitor who returns home the same day without staying overnight
  4. A visitor who stays at least one night in the destination Correct answer.

Explanation

In tourism terminology a tourist is a visitor who spends at least one night in the place visited, whereas an excursionist is a same-day visitor who does not stay overnight. The overnight stay is the standard dividing criterion used by tourism bodies.

Question 2Introduction to Tourism – Concepts, Definitions and Types

Which of the following is the most widely accepted basic definition of tourism?

  1. Daily commuting between home and workplace within a city
  2. Permanent migration of families to new cities for employment
  3. The movement of goods across international borders for trade
  4. Temporary movement of people to destinations outside their usual environment for leisure, business or other purposes Correct answer.

Explanation

Tourism involves the temporary movement of people away from their usual environment for leisure, business or other purposes, together with the activities undertaken during the stay. It excludes permanent migration and routine commuting.

Question 3Introduction to Tourism – Concepts, Definitions and Types

A family travels from Pune to Mahabaleshwar for three nights and returns home. In tourism terms, this family is best described as:

  1. Excursionists
  2. Domestic tourists Correct answer.
  3. Migrants
  4. Inbound tourists

Explanation

Travel within one's own country that involves an overnight stay makes the family domestic tourists. Inbound tourism refers to non-residents arriving from abroad, which does not apply here.

Question 4Introduction to Tourism – Concepts, Definitions and Types

Which form of tourism involves residents of a country travelling to destinations within the same country?

  1. International tourism
  2. Domestic tourism Correct answer.
  3. Inbound tourism
  4. Outbound tourism

Explanation

Domestic tourism covers travel by residents within their own country without crossing a national border. Inbound and outbound tourism both involve crossing an international border.

Question 5Introduction to Tourism – Concepts, Definitions and Types

A group of German travellers arrives in Mumbai and visits Ajanta and Ellora. From India's perspective, this activity is classified as:

  1. Outbound tourism
  2. Inbound tourism Correct answer.
  3. Internal tourism only
  4. Domestic tourism

Explanation

Inbound tourism refers to visitors from another country arriving at a destination; the German group arriving in India fits this category. The classification is made from the viewpoint of the receiving country.

Question 6Introduction to Tourism – Concepts, Definitions and Types

Which of the following is a characteristic feature of mass tourism?

  1. Movement driven purely by religious pilgrimage
  2. Small groups travelling to remote unexplored areas
  3. Travel restricted to scientific researchers only
  4. Large numbers of people visiting popular destinations, often in organised packages Correct answer.

Explanation

Mass tourism is characterised by large volumes of visitors moving to popular destinations, frequently through organised package tours and standardised services. It contrasts with niche or alternative forms of tourism.

Question 7Introduction to Tourism – Concepts, Definitions and Types

Eco-tourism is best described as tourism that:

  1. Is limited to wildlife hunting expeditions
  2. Requires visitors to avoid all contact with local people
  3. Involves travel to natural areas while conserving the environment and supporting local communities Correct answer.
  4. Focuses on luxury resorts with heavy resource consumption

Explanation

Eco-tourism combines travel to natural areas with conservation of the environment and respect for local communities. It aims to minimise negative impacts while generating benefits for the host area.

Question 8Introduction to Tourism – Concepts, Definitions and Types

A traveller visits a village to experience local farming, handicrafts and cuisine while staying with host families. This is an example of:

  1. Medical tourism
  2. Adventure tourism
  3. Business tourism
  4. Rural tourism Correct answer.

Explanation

Rural tourism involves experiencing rural life, culture, agriculture and local crafts, often through homestays. It is distinct from adventure, medical or business travel, which have different primary motives.

Question 9Introduction to Tourism – Concepts, Definitions and Types

Which of these is an example of adventure tourism?

  1. Trekking in the Himalayas and river rafting Correct answer.
  2. Undergoing a planned surgery abroad
  3. Visiting relatives during a festival
  4. Attending a trade fair in a city hotel

Explanation

Adventure tourism involves physically challenging activities in natural settings, such as trekking and rafting, which carry an element of risk and require effort. The other options reflect business, medical or social motives.

Question 10Introduction to Tourism – Concepts, Definitions and Types

Tourism undertaken primarily to receive medical treatment or wellness therapies is known as:

  1. Medical tourism Correct answer.
  2. Sports tourism
  3. Cultural tourism
  4. Pilgrimage tourism

Explanation

Medical tourism refers to travel whose main purpose is medical treatment, surgery or wellness therapy. It is distinguished from cultural, sports or pilgrimage travel by the health motive.

Question 11Introduction to Tourism – Concepts, Definitions and Types

A visitor travels to a destination mainly to attend a music and dance festival showcasing local traditions. This best illustrates:

  1. Business tourism
  2. Cultural tourism Correct answer.
  3. Eco-tourism
  4. Medical tourism

Explanation

Cultural tourism involves experiencing the arts, traditions, festivals and heritage of a place. Attending a festival of local music and dance is a classic cultural tourism activity.

Question 12Introduction to Tourism – Concepts, Definitions and Types

Which of the following is a component of the tourism system often described as the '4 A's'?

  1. Advertisement, Agency, Airline, Alliance
  2. Arrival, Audit, Assessment, Approval
  3. Attraction, Airfare, Agent, Agreement
  4. Accessibility, Accommodation, Amenities, Attractions Correct answer.

Explanation

The classic 4 A's of tourism are Accessibility, Accommodation, Amenities and Attractions, representing the key elements a destination must provide. These components together make a place capable of receiving visitors.

Question 13Introduction to Tourism – Concepts, Definitions and Types

In the tourism system, 'accessibility' primarily refers to:

  1. The number of tourist attractions in a region
  2. The means and ease of reaching a destination, such as roads, rail and air links Correct answer.
  3. The quality of hotel rooms available
  4. The availability of shops and restaurants at a destination

Explanation

Accessibility concerns how travellers reach a destination, including transport networks, routes and entry facilities. It is one of the 4 A's and is separate from accommodation, amenities and attractions.

Question 14Introduction to Tourism – Concepts, Definitions and Types

A person who travels to another country for a two-week holiday and returns home afterwards is, in tourism statistics, counted as:

  1. A permanent immigrant
  2. An international visitor Correct answer.
  3. A daily commuter
  4. A resident of the destination country

Explanation

A person who travels outside their country of residence for a temporary stay of less than a year is an international visitor. Returning home afterwards confirms the temporary nature of the trip.

Question 15Introduction to Tourism – Concepts, Definitions and Types

Which statement correctly distinguishes 'traveler' from 'visitor' in tourism terminology?

  1. A visitor must always cross an international border, but a traveler need not
  2. A traveler is always a tourist, but a visitor is always an excursionist
  3. A traveler is anyone on a trip, while a visitor is a traveler whose trip falls within the tourism definition Correct answer.
  4. All travelers are visitors, and the terms are interchangeable

Explanation

Traveler is the broadest term covering anyone on a movement between places, while visitor is a narrower statistical concept covering travellers whose trip meets the tourism criteria. Not every traveler counts as a visitor in tourism statistics.

Question 16Introduction to Tourism – Concepts, Definitions and Types

A country records 5 million domestic tourists, 2 million inbound tourists and 3 million outbound tourists. Which figure represents its 'internal tourism'?

  1. 7 million Correct answer.
  2. 10 million
  3. 3 million
  4. 5 million

Explanation

Internal tourism combines domestic tourism and inbound tourism, that is visitors travelling within the country whether resident or foreign. Adding 5 million domestic and 2 million inbound gives 7 million.

Question 17Introduction to Tourism – Concepts, Definitions and Types

Which of the following best explains why a same-day business traveller who flies to another city for a meeting and returns the same evening is classified as an excursionist rather than a tourist?

  1. Because the purpose of the trip is business
  2. Because the traveller used air transport
  3. Because no overnight stay occurs at the destination Correct answer.
  4. Because the traveller crossed a state border

Explanation

The tourist-excursionist distinction rests on overnight stay, not on purpose, distance or mode of transport. A same-day return means no night is spent at the destination, so the person is an excursionist.

Question 18Introduction to Tourism – Concepts, Definitions and Types

Which pair correctly matches a tourism type with its defining motive?

  1. Medical tourism - travel to attend business conferences
  2. Pilgrimage tourism - travel to religious sites for worship and spiritual fulfilment Correct answer.
  3. Sports tourism - travel to natural areas for conservation work
  4. Cultural tourism - travel to undergo surgery abroad

Explanation

Pilgrimage tourism is defined by travel to sacred places for worship and spiritual purposes. Each other pairing mismatches the type with an unrelated motive.

Question 19Introduction to Tourism – Concepts, Definitions and Types

A destination invests in new highways, an expanded airport and a railway link. Which component of the 4 A's is being strengthened?

  1. Accommodation
  2. Amenities
  3. Accessibility Correct answer.
  4. Attractions

Explanation

Roads, airports and railways are transport infrastructure that determine how easily visitors can reach a destination, which is the accessibility component. Attractions, amenities and accommodation refer to what exists at the destination itself.

Question 20Introduction to Tourism – Concepts, Definitions and Types

Which statement about outbound tourism is correct?

  1. It excludes all forms of leisure travel
  2. It refers only to domestic travel within a state
  3. It refers to foreign visitors arriving in a country
  4. It refers to residents of a country travelling to destinations in another country Correct answer.

Explanation

Outbound tourism describes residents leaving their own country to visit another, viewed from the origin country's perspective. It is the counterpart of inbound tourism and can include leisure, business or other purposes.

Question 21Tourism as an Industry – Components and Economic Significance

In the study of tourism as an industry, which group is classified as 'tourists' rather than 'excursionists'?

  1. Pilgrims travelling within their own district for a day
  2. Local residents visiting a city park on a Sunday
  3. Visitors who return to their home area before nightfall
  4. Visitors who stay overnight at least one night in the destination Correct answer.

Explanation

Tourism statistics distinguish tourists from excursionists by overnight stay. A tourist spends at least one night in a collective or private accommodation in the place visited, while an excursionist completes the visit and returns without staying overnight. Local same-day movement inside one's own district is not inbound tourism at all.

Question 22Tourism as an Industry – Components and Economic Significance

Which of the following is a component of the tourism industry rather than a tourism-supporting public service?

  1. A district police control room
  2. A public health centre
  3. A heritage hotel offering rooms to paying guests Correct answer.
  4. A municipal fire brigade

Explanation

The tourism industry consists of businesses that supply goods and services directly to visitors, such as accommodation, transport and travel trade. Emergency services like fire brigades, police and public health centres serve residents generally and are not tourism businesses, even though visitors benefit from them.

Question 23Tourism as an Industry – Components and Economic Significance

A family travels from Pune to Aurangabad, spends two nights, visits the Ajanta caves and returns home. In tourism accounting, this family is best described as:

  1. Outbound tourists from India
  2. International inbound tourists
  3. Domestic tourists of India Correct answer.
  4. Excursionists of Aurangabad

Explanation

Domestic tourism involves residents of one country travelling within that same country. The family crosses state boundaries and stays overnight, which makes them domestic tourists. Inbound and outbound labels apply only when a national border is crossed, and excursionists do not stay overnight.

Question 24Tourism as an Industry – Components and Economic Significance

Which element is a basic component of the tourism system that must exist before any tourism movement can occur?

  1. A generating market with potential travellers Correct answer.
  2. A duty-free shopping arcade
  3. A five-star resort property
  4. A convention centre at the destination

Explanation

Every tourism system needs a tourist-generating region, a transit route and a destination region. The generating market supplies the demand and therefore precedes all movement. Convention centres, shopping arcades and luxury resorts are optional facilities that may or may not exist at a destination.

Question 25Tourism as an Industry – Components and Economic Significance

Which of these is a direct economic benefit that a destination region receives from tourism?

  1. Foreign exchange earnings from visitor spending Correct answer.
  2. Reduced demand for public transport
  3. Shorter working hours for all residents
  4. Lower municipal property tax rates

Explanation

Visitor spending brings money into the destination, and when international visitors spend, the host country earns foreign exchange. This is a direct, measurable economic gain. Tax reductions, transport demand and working hours are not automatic outcomes of tourism and may even move in the opposite direction.

Question 26Tourism as an Industry – Components and Economic Significance

In the tourism satellite account approach, which indicator measures the share of a country's total output generated by tourism industries?

  1. The literacy rate of the destination district
  2. The number of hotel beds per thousand residents
  3. The average length of stay of visitors
  4. Tourism direct gross value added as a percentage of total gross value added Correct answer.

Explanation

Tourism satellite accounts measure the economic size of tourism by comparing tourism direct gross value added with total gross value added. This shows how much of the national economy is produced by tourism industries. Bed counts, length of stay and literacy describe capacity or social conditions, not economic share.

Question 27Tourism as an Industry – Components and Economic Significance

A tour operator in Mumbai sells a six-day Kerala package to a group of German travellers. Which component of the tourism industry does the operator represent?

  1. Accommodation sector
  2. Destination management organisation
  3. Travel trade intermediary Correct answer.
  4. Attraction sector

Explanation

Tour operators and travel agents form the travel trade, acting as intermediaries who assemble and sell tourism products on behalf of suppliers. They do not own the hotels or attractions in the package. A destination management organisation promotes a place rather than selling individual packages.

Question 28Tourism as an Industry – Components and Economic Significance

A hill station receives most of its visitors in May, while hotel occupancy falls sharply in September. Which economic consequence of seasonality does this illustrate?

  1. Long-term reduction in transport costs
  2. Permanent growth in foreign exchange reserves
  3. Uneven income and seasonal underemployment in the destination Correct answer.
  4. A rise in the destination's carrying capacity

Explanation

Seasonality concentrates demand into a few months, so businesses earn most of their revenue in a short period and staff may be laid off or underemployed in the off-season. It creates fluctuation, not steady growth. Carrying capacity and transport costs are not improved by a seasonal slump.

Question 29Tourism as an Industry – Components and Economic Significance

Tourism income circulating through a local economy as hotel staff spend wages in local shops is described as which type of effect?

  1. Balance of payments deficit
  2. Direct foreign exchange effect
  3. Leakage through import of goods
  4. Indirect and induced economic effect Correct answer.

Explanation

When tourism businesses buy from local suppliers, the effect is indirect; when employees spend their wages locally, the effect is induced. Both are multiplier effects that extend the initial visitor spending through the economy. Direct effects refer only to the first round of spending by visitors.

Question 30Tourism as an Industry – Components and Economic Significance

Which of the following best explains why tourism is described as a labour-intensive industry?

  1. Tourism relies mainly on automated machinery for service delivery
  2. Many tourism services require personal attention, so employment grows with visitor numbers Correct answer.
  3. Tourism wages are always higher than in manufacturing
  4. Tourism employs only highly specialised professionals

Explanation

Hotels, restaurants, guiding and transport depend heavily on people to deliver face-to-face service, so tourism generates a large number of jobs per unit of investment. Automation plays only a limited role. The sector does not require only elite specialists, and wages vary widely.

Question 31Tourism as an Industry – Components and Economic Significance

An international visitor pays for a hotel room in India, but the hotel imports all its furniture and food from abroad. What does this situation reduce?

  1. The length of stay of the visitor
  2. The destination's transport connectivity
  3. The net foreign exchange retention in the local economy Correct answer.
  4. The number of tourist arrivals

Explanation

Import leakage occurs when tourism earnings are spent on goods and services bought from outside the host economy, so the money does not stay locally. This lowers the net economic benefit retained. Leakage does not affect arrivals, length of stay or connectivity, which are separate variables.

Question 32Tourism as an Industry – Components and Economic Significance

Which pair correctly matches a tourism sub-sector with a typical service it provides?

  1. Accommodation sector - guided sightseeing commentary
  2. Attraction sector - visa issuance to travellers
  3. Transport sector - air, rail and road carriage of visitors Correct answer.
  4. Travel trade - laundry services for hotels

Explanation

The transport component of tourism covers the movement of visitors by air, rail, road and water. Accommodation provides lodging, attractions provide the sites and experiences, and the travel trade retails and assembles travel arrangements. Each sub-sector has a distinct core function.

Question 33Tourism as an Industry – Components and Economic Significance

A state government builds a new coastal highway that cuts travel time to a beach destination. Which effect on tourism demand is most likely?

  1. Improved accessibility eliminates seasonality entirely
  2. Improved accessibility permanently reduces visitor arrivals
  3. Improved accessibility increases visitor arrivals to the destination Correct answer.
  4. Improved accessibility removes the need for accommodation

Explanation

Accessibility is a key determinant of tourism demand, because shorter and easier journeys lower the perceived cost and effort of travel. Better roads therefore tend to raise arrivals. They do not remove the need for lodging or abolish seasonal patterns, which depend on climate, holidays and other factors.

Question 34Tourism as an Industry – Components and Economic Significance

In the balance of payments of a country, spending by its own residents on holidays abroad is recorded as:

  1. An export of tourism services that earns foreign exchange
  2. Domestic tourism expenditure
  3. An import of tourism services that adds to outbound tourism expenditure Correct answer.
  4. Direct investment by foreign hotel chains

Explanation

Outbound tourism expenditure is treated as an import of services, because residents are buying services produced abroad and money flows out of the country. Inbound visitor spending is the corresponding export. Domestic tourism involves travel within the same country and does not enter the international balance of payments.

Question 35Tourism as an Industry – Components and Economic Significance

A destination decides to develop rural homestays so that tourism income reaches villages near a wildlife park. This approach is mainly intended to:

  1. Replace all agricultural employment with hotel jobs
  2. Reduce the destination's tourist carrying capacity
  3. Spread economic benefits across the host community Correct answer.
  4. Increase import leakage from foreign suppliers

Explanation

Community-based tourism initiatives such as rural homestays aim to distribute tourism income more widely among local households rather than concentrating it in large urban hotels. This supports inclusive local development. Such schemes do not aim to increase leakage, cut capacity or abolish farming.

Question 36Tourism as an Industry – Components and Economic Significance

Which statement correctly distinguishes a tourism 'attraction' from a tourism 'facility'?

  1. An attraction is located only in cities, while a facility is located only in rural areas
  2. An attraction is the primary reason for visiting, while a facility supports the visitor's stay Correct answer.
  3. An attraction is always government owned, while a facility is always private
  4. An attraction is free of charge, while a facility is always paid for

Explanation

Attractions are the natural or man-made features that motivate travel to a place, such as a fort, beach or festival. Facilities such as hotels, restaurants and transport terminals exist to serve visitors once they arrive. Ownership, location and pricing do not define the difference.

Question 37Tourism as an Industry – Components and Economic Significance

A country's tourism receipts rise by 20 per cent in a year, but the number of arrivals is unchanged. Which explanation is most consistent with these figures?

  1. Average spending per visitor increased during the year Correct answer.
  2. Seasonality was completely eliminated
  3. The average length of stay fell sharply
  4. The destination lost its international air links

Explanation

Total tourism receipts equal arrivals multiplied by average expenditure per visitor, so receipts can grow even when arrivals are flat if each visitor spends more. Higher spending per head could come from premium accommodation, longer tours or price rises. Lost air links or shorter stays would tend to reduce receipts.

Question 38Tourism as an Industry – Components and Economic Significance

A multiplier analysis shows that an initial tourism injection of ₹10 crore generates ₹25 crore of total income in the local economy. Which interpretation is correct?

  1. The multiplier is 0.4, obtained by dividing the injection by total income
  2. The multiplier is 25, because total income is the multiplier value
  3. No multiplier exists because the figures are in different units
  4. The tourism income multiplier is 2.5, meaning each rupee re-circulates within the local economy Correct answer.

Explanation

The multiplier is calculated by dividing the total income generated by the initial injection, giving 25 divided by 10, which equals 2.5. A value above one indicates that the initial spending re-circulates through local suppliers and wages. Inverting the ratio or reading the total as the multiplier misapplies the formula.

Question 39Tourism as an Industry – Components and Economic Significance

A heritage city finds that visitor numbers now exceed the level at which monuments, water supply and local residents' daily life begin to suffer. This threshold is known as:

  1. The tourism multiplier of the destination
  2. The balance of payments of the destination
  3. The generating market of the destination
  4. The carrying capacity of the destination Correct answer.

Explanation

Carrying capacity is the maximum number of visitors a destination can absorb before physical, environmental and social costs become unacceptable. Exceeding it produces congestion, damage to monuments and friction with residents. The multiplier, balance of payments and generating market are economic concepts unrelated to this threshold.

Question 40Tourism as an Industry – Components and Economic Significance

Which combination best represents both a positive and a negative economic impact of tourism on a host region?

  1. Job creation and foreign exchange earnings alongside inflation and rising land prices Correct answer.
  2. Job creation alongside lower prices for local residents
  3. Improved infrastructure alongside falling visitor expenditure
  4. Foreign exchange earnings alongside reduced transport demand

Explanation

Tourism creates employment and earns foreign exchange, but heavy demand can push up prices of land, housing and local goods, which harms residents on fixed incomes. A balanced impact assessment recognises both sides. The other options pair a benefit with something that is not a genuine tourism outcome.

Question 41Travel Agencies and Tour Operations

In travel agency terminology, what does the abbreviation 'GIT' refer to?

  1. Guaranteed Individual Transfer
  2. Group Inclusive Tour Correct answer.
  3. Government Issued Ticket
  4. Global Itinerary Tracker

Explanation

GIT stands for Group Inclusive Tour, a package sold to a group travelling together at a common price covering transport, stay and often sightseeing. It is a standard classification used by tour operators when costing group departures.

Question 42Travel Agencies and Tour Operations

Which document issued by a travel agency confirms a client's booking with an airline and carries a unique reference number?

  1. Baggage tag
  2. Visa sticker
  3. Boarding pass
  4. Passenger Name Record Correct answer.

Explanation

A Passenger Name Record (PNR) is the reservation record in the airline's computer system holding the passenger name, itinerary, contact details and a unique locator code. It is created at the time of booking, well before travel.

Question 43Travel Agencies and Tour Operations

A tour operator designs a package where the agency buys seats and hotel rooms in bulk and resells them to travellers at a single all-inclusive price. What is this product called?

  1. FIT package
  2. Inclusive tour Correct answer.
  3. Open-jaw ticket
  4. Charter-only ticket

Explanation

An inclusive tour bundles transport, accommodation and usually some services into one price sold to the traveller. The operator takes the commercial risk of unsold inventory, which is what distinguishes it from a pure ticketing service.

Question 44Travel Agencies and Tour Operations

Which of the following best describes the role of a 'tour escort' during a group departure?

  1. Issuing air tickets and processing visa applications at the agency counter
  2. Negotiating hotel rates with suppliers before the tour is sold
  3. Accompanying the group throughout the journey and managing logistics on the ground Correct answer.
  4. Designing the itinerary and costing the package in the office

Explanation

A tour escort travels with the group, handling check-ins, coordinating local guides, solving on-tour problems and keeping the schedule. The office-based tasks of costing, ticketing and supplier negotiation belong to other roles.

Question 45Travel Agencies and Tour Operations

A travel agency earns commission from a hotel for every room night it books. What type of income is this?

  1. Mark-up on a package price
  2. Commission income from a supplier Correct answer.
  3. Interest earned on client deposits
  4. Service charge levied on the client

Explanation

Commission is a percentage paid by the supplier (here the hotel) to the agency as remuneration for generating the booking. It is a core revenue stream for retail travel agencies alongside service fees.

Question 46Travel Agencies and Tour Operations

Which term describes a traveller who buys flight, hotel and sightseeing components separately rather than as a packaged tour?

  1. Tour operator
  2. Free Independent Traveller Correct answer.
  3. Group Inclusive Tourist
  4. Tour escort

Explanation

A Free Independent Traveller (FIT) arranges individual components to suit personal dates and preferences and is not bound to a group departure. FIT business is a major segment that retail agencies serve through point-to-point bookings.

Question 47Travel Agencies and Tour Operations

An agency is preparing a quotation for a 6-night/7-day group tour. Which cost element should be treated as a per-person variable cost rather than a fixed tour cost?

  1. Cost of printing tour brochures
  2. Salary of the tour manager for the whole departure
  3. Annual office rent of the agency
  4. Meal charges billed per traveller per day Correct answer.

Explanation

Per-person variable costs change directly with the number of travellers, so meals billed per head per day rise or fall with group size. Fixed costs such as brochure printing, the tour manager's lump salary and office rent remain the same regardless of how many join.

Question 48Travel Agencies and Tour Operations

A tour is quoted at Rs 24,000 per person and the operator's net cost per person is Rs 18,000. What is the mark-up percentage on cost?

  1. 133 percent
  2. 75 percent
  3. 33.3 percent Correct answer.
  4. 25 percent

Explanation

Mark-up on cost is the margin divided by the net cost: (24,000 minus 18,000) divided by 18,000 equals 0.333, or 33.3 percent. Dividing by the selling price instead would give a different figure, so the base must be identified carefully.

Question 49Travel Agencies and Tour Operations

A client's passport is valid for only four months beyond the intended return date. For most international destinations, what should the agency advise?

  1. The airline can issue a temporary extension at check-in
  2. A visa on arrival will extend the passport validity automatically
  3. The passport must be renewed, as many countries require at least six months' validity beyond return Correct answer.
  4. Travel is fine because the passport is valid at the time of departure

Explanation

Many countries require a passport to remain valid for six months beyond the planned date of return, and airlines enforce this at check-in. Advising renewal protects the client from denied boarding or refused entry.

Question 50Travel Agencies and Tour Operations

In airline distribution, what does an IATA-accredited travel agency gain through the Billing and Settlement Plan (BSP)?

  1. Automatic approval of visas for its clients
  2. A single periodic settlement with airlines instead of separate payments to each carrier Correct answer.
  3. Free airline tickets for agency staff on every route
  4. Exemption from paying for tickets already issued

Explanation

BSP consolidates an agency's sales with many airlines into one reporting and settlement cycle, reducing administrative effort and payment transactions. Accreditation is what makes an agency eligible to issue tickets through this system.