Travel Agency and Tour Operations
What the domain covers
Travel Agency and Tour Operations tests the difference between a travel agent and a tour operator, how travel products are assembled and sold, ticketing and documentation basics, and the commercial arithmetic of a package. Expect questions on retail versus wholesale travel, IATA accreditation, FIT and GIT bookings, itineraries, passports and visas, and service fees or commissions.
Core rules
- A travel agency primarily sells and reserves products supplied by others; a tour operator assembles its own packages using transport, accommodation, guides and activities, and takes operational risk.
- Retail agents deal with the public; wholesale agencies or consolidators sell to agents.
- IATA accreditation allows an agency to issue tickets on behalf of member airlines; it is not a tour-operator licence.
- FIT means free independent traveller; GIT means group inclusive tour. A package should state inclusions, exclusions, validity, cancellation policy and responsibilities.
- Documentation: passport validity, visa type, itinerary, insurance and tickets must match the traveller's name exactly.
Worked example. A couple wants two nights in Udaipur. Hotel costs ₹3,000 per room per night; private car ₹6,000; guide ₹1,500. Total cost = (2 × ₹3,000) + ₹6,000 + ₹1,500 = ₹13,500. With 10% markup, selling price = ₹13,500 × 1.10 = ₹14,850 per package. If two people share, the per-person price is ₹7,425 before taxes or service fees. Reasoning: hotel is per room, car and guide are per package, so divide the package price by two only after adding markup.
Traps. Do not add commission and markup as if they were the same thing. Do not quote a per-person price while charging hotel per room without stating occupancy. Do not promise a visa; agents assist, but issuance is the authority's decision. Do not omit exclusions such as monument fees, meals and personal expenses.