Travel Agency and Tour Operations
This domain tests the difference between retailing travel and operating tours, the documents used, and basic package pricing. Expect definition, function-list and short costing questions.
Two different businesses
- Travel agency: a retail intermediary that sells airline, rail and hotel products and handles visas and insurance on behalf of principals, earning commission paid by the principal.
- Tour operator: a wholesaler that designs, costs, markets and operates packages, and carries the commercial risk.
- Bodies: IATA accredits agents for airline ticketing; TAAI represents travel agents; IATO represents inbound operators; ADTOI represents domestic operators. Ministry of Tourism approval is a quality stamp.
Key documents
PNR (a six-character alphanumeric airline booking record), e-ticket number, invoice, day-wise itinerary, hotel voucher, indemnity bond, visa file.
Tour types
FIT (free independent traveller), GIT (group inclusive tour), escorted, incentive, MICE, inbound, outbound and domestic tours.
Worked example
Ten colleagues want a six-night Delhi–Leh trip. Reasoning: ten people travelling together makes it a GIT, so group land rates apply; each air sector carries one group PNR; the itinerary must include an acclimatisation day at Leh for safety; price per person = (net land cost + airfare + markup + applicable GST) ÷ 10.
Traps that cost marks
- Confusing PNR with ticket number.
- Saying a travel agent designs and operates tours and bears risk - that is the operator.
- Stating that the client pays commission.
- Forgetting GST and cancellation policy in a quotation.