Travel Agency and Tour Operator Functions

Study Notes

Makes reservations for travel, including airline tickets and hotel rooms.
Plans itineraries and computes accurate pricing for various travel services.
Handles correspondence through multiple channels (telephone, email, fax) with customers and travel principals.
Maintains organized records for reservations and stocks travel brochures.
Manages customer complaints and liaises with service providers on issues.
Arranges insurance and foreign exchange facilities for customers.
Offers miscellaneous special services based on customer requests.

Purchases tourist products (airline seats, hotel rooms, coach services) in bulk for resale.
Creates inclusive tour packages that bundle various travel services.
Acts as a connector between service providers and customers (marketing/sales).
Bears risks related to merchandising and service quality.
Provides information on destinations and travel activities.
Facilitates national and international travel for those hesitant to journey alone.

Air Transport Advantages
- Efficient for transporting goods and passengers quickly.
- Convenient during emergencies and natural disasters.
Air Transport Limitations
- Generally more expensive than other transport methods.
- Not ideal for heavy or bulky goods.

Arranges travel-related services and offers advice on destinations and logistics.
Types include wholesaler agents (packages marketed through retail agents) and retail agents (sell directly to consumers with commission or markup pricing).
Ownership structures include sole proprietorship, partnerships, and corporate entities.

Intangible: Services cannot be physically touched or owned before purchase.
Psychological: Pertains to consumer experiences and expectations influenced by shared reviews.
Highly Perishable: Services that cannot be stored; unused opportunities result in lost revenue.
Composite Product: Combines services from multiple providers (e.g., airlines, hotels, restaurants) into a total travel experience.
Unstable Demand: Influenced by various external factors; forecasting can be challenging.
Fixed Supply: Tourism products require consumers to visit the location; they cannot be delivered like manufactured goods.
Absence of Ownership: Services are provided for use and experience, not ownership.
Heterogeneous: Quality and standards vary over time and by individual preferences, affecting each tourist's experience.
Risky: Higher risk since purchases are made ahead of actual consumption.