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ROLE OF TRAVEL AGENCIES IN PROMOTING TOURISM

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AEGAEUM JOURNAL ISSN NO: 0776-3808

ROLE OF TRAVEL AGENCIES IN PROMOTING TOURISM

Ms. Asha S Kutty
Department of Management Studies, Mar Dionysius College, Pazhanji, Kerala, India.
Dr. Manu Melwin Joy
School of Management Studies, CUSAT, Kerala, India.

Abstract:Tourism provides goods or services to facilitate business, pleasure and leisure activities away from the
home environment. It is one of the fastest growing industry in the world. Travel agenciesprovideconveyance,
accommodation, and admission to entertainment activities to individuals and groups scheduling trips. They offer
advice on destinations, plan trip itineraries, and make travel arrangements for clients. They play a crucial role in the
development and flourishment of tourism industry. But there are many factors which influence the efficiency of travel
agencies. In this study analyses various factors influencing the efficiency of travel agencies as well as their role in
promotion of tourism industry.

Keywords:Tourism, Travel, Travel Agency

1. INTRODUCTION
Tourism is one of the fastest growing industries of the world. It plays a vital role in the
economic expansion of a country. India is one of the popular tourist destinations in Asia.
Bounded by the Himalayan ranges in the north and surrounded, on three sides by water, India
offers a wide collection of places to see and things to do. The captivating backwaters, hill
stations and landscapes make India a lovely country. They attract tourists from all over the
world.
Kerala, a state located on the tropical Malabar Coast of Southwestern India, is one of the most
prevalent tourist destinations in the country. Named as one of the ten ecstasies of the world by
National Geographic Traveler, Kerala is famous particularly for its ecotourism initiatives and
beautiful backwaters. Its unique culture and traditions, coupled with its varied demography,
have made Kerala one of the most popular tourist destinations in the world.
Until the early 1980s, Kerala was a relatively unknown destination, with most tourism
routesfocused around the north of the country. Belligerent marketing campaigns launched by the
Kerala Tourism Development Corporation —the government agency that oversees tourism
prospects of the state—laid the foundation for the growth of the tourism industry. In the years
that followed, Kerala Tourism was able to renovate itself into one of the niche holiday
destinations in India. The tag line Kerala – God's Own Country was adopted in its tourism
promotions and became a global super brand. Kerala is regarded as one of the destinations with
the highest brand recall.
2. STATEMENT OF THE PROBLEM
The travel agency made of principal -agency relationship has served well over the 80 years. In
the beginning, travel agents were just mediators, rewarded by airlines and other travel dealers to
distribute their products. This small business has come under pressure recently because of

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changing factors such as competitive environment, changes in tourism trends, changes in

marketing trends, [Link] role of travel agency in the tourism distribution system has been
influenced by industry consolidation and advent development of new technologies.
The travel agency needs to re-evaluate their existing activities and stop being just
productproviders but start concentrating on providing added value to the customers. To achieve
success, travel agencies should focus on identifying the various factors which can influence the
efficiency of travel agencies. So, this study tries to identify factors which enhance the efficiency
of travel agencies.
3. OBJECTIVES OF STUDY
 To identify the role of travel agencies in the promotion of tourism industry
 To identify the various factors determining the performance of travel agencies in Cochin
region

4. SCOPE OF THE STUDY

The flagship of the tourism in Kerala is the Department of Tourism (DoT) Government of
Kerala. Kerala Tourism Development Corporation (KTDC), District Tourism Promotion
Councils (DTPCs)etc playssignificant role in the elevation of tourism sector in Kerala. Besides
there are several travel agencies working in the semi-government as well as private sector.
Considering vast and diverse factors affecting the performance of travel business in the state, a
detailed study is found to be pertinent and imperious. The most relevant aspect of this study is to
identify factors affecting the travel business. It would also be a study about the factors
connected with the tourism industry and formulation of suitable, apt, and practical solutions to
them. The study covers the views expressed by the various informants representing government,
semi-government, private institutions in Cochin region.

5. RESEARCH METHODOLOGY
5.1 Data Collection
The data collection for this project is done by collection of some information from various
sources. They are mainly divided into two;
• Primary Data Collection
• Secondary Data Collection
 Primary Data Collection:
The stage of primary data collection is done by the direct interactions through various steps in
the destination. This include the collection of information through
• Questionnaire

Questionnaire: A questionnaire is a research instrument consisting of a series of questions for

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the purpose of gathering information from respondents.

 Secondary Data Collection

This stage of data collection includes the collection of information through other secondary
mediums such as;
• Books
• Internet
• Magazines

5.2 Sample Design

Sample Size: The sample size was 50 travel agencies.
Sampling Method: The sampling method used here is random sampling.
Sampling Area: The sampling area was travel agencies based in Cochin.
5.3 Variables
Various factors determining the performance of travel agencies in Cochin are as follows.

• IATA accreditation
• Affiliations with tourism organizations
• Online facilities
• Product knowledge of staff
• Efficiency of staffs
• Lack of qualification of staffs
• Presentation skill of the staffs.
• Punctuality of staff
• Effective communication.
• Commission from the service providers
• Destination services
• Socio-cultural factors
• Environmental factors.
• Internal organizational issues
• Political impacts
• Tax policies imposed by the government.

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6. DATA ANALYSIS AND INTERPRETATION

a) General Factors
100 92
90
90 84
80
70
60
50
40
30
20 16
10 8
10
0
IATA affiliation online travel agency
yes no

Figure 1

General factors include IATA accreditation, affiliations with tourism organization and
online facilities.
b) Product Knowledge of Staffs
The product knowledge of staffs affects the performance of travel business. Product knowledge
is an essential sales skill. Product knowledge is the ability to communicate information and
answer questions about a product or services. A travel agent is a person who expected to acquire
considerable product knowledge about the services that they are responsible for selling to
consumers. Understanding our products’ features allow us to present their benefits accurately
and persuasively.

Product knowledge
Highly satisfied

Satisfied 16% 20%

Dissatisfied
24%

Highly dissatisfied
40%

Figure 2

c) Efficiency of staffs
Efficiency of staff is another important factor of travel agency business. Efficiency is

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the ability to avoid wasting materials, energy, efforts money and time doing something
or in producing a desired result. It is the ability to do things well, successfully and
without waste in the travel industry.

Efficiency of Staffs

8%
12% 30% Highly satisfied
Satisfied
Dissatisfied
Highly dissatisfied

50%

Figure 3

d) Qualification of staffs
Qualification of staff includes staffing levels, minimum qualification levels and nature
of work. Thus, to ensure a job is done by the right person it is essential for the
management to have records of all qualification details of staffs.

Qualification of staffs

8%
24%
highly satisfied
18%
satisfied
dissatisfied
highly dissatisfied
50%

Figure 4

e) Presentation skill of staffs

Personal presentation is concerned with conveying appropriate signals for the situation
and for the other individuals involved. By improving your personal presentation, you
improve your communication skills and reduce barriers to understanding.

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10

30

20

40

highly satisfied satisfied dissatisfied highly dissatisfied

Figure 5

f) Communication skill of staffs

Effective communication is the foundation of positive working relationships. Manager
Manager-
employee communication is essential for a thriving workplace. Communication and
feedback are the key to successful working environment, and hhelps
elps to engage staff and
reduce turnover.

communication skill of staffs

4%
16
32% highly satisfied
satisfied
dissatisfied
highly dissatisfied

48%

Figure 6

g) Punctuality of staffs
Punctuality is the most important characteristic of a successful business. Punctuality at
work is important to keep the team happy and to present the organization as professional
to customer.

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Punctuality of staffs

16%
24%
highly satisfied
satisfied
20% dissatisfied
highly dissatisfied

40%

Figure 7

h) Commission from the service providers

The main source of income of a travel agency is the commission which it is receives
from various service providers.

100 8
90 20
80 20 24 10
28
70 14
60 40
50 40 34
40 40 40
30 24
20 26
10 16 32 20
0 16 36
12

highly satisfied satisfied dissatisfied highly dissatisfied

Figure 8

i) Destination services
Destination service is an important factor of travel business. The role of destination
services in tourism is highly important. However, it is also essential to note that
effective destination marketing has an equally vital role to play in shaping the success
suc of
the tourism sector.

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100%
30 24
80% 36
60
60% 36
40 28
40%
20 26 20
20% 20
14
10 16 14
0% 6
ground operating community support health and safety hygienic /clean
facilities measures

highly satisfied satisfied dissatisfied highly dissatisfied

Figure 8

50 46
45 40 40 40
40 32
35 30
30 26 26
25 18 20 20
20 14 16 14
15 10 8
10
5
0
infrastructural qualified authentic qualified
facilities escort/guide experience products

highly satisfied satisfied dissatisfied highly dissatisfied

Figure 9

j) Negative socio-cultural
cultural impacts
Socio-cultural
cultural impact signifies the impact which creates in terms of social changes in
the lives of local people, improvements in infrastructure, lifestyle changes etc. Negative
socio-cultural
cultural impacts which leads to increased crime and anti
anti-social
social activities and loss
of moral and religious values.

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100 92
80
80 82
72
60

40
20 28
20 8
18
0

Host-guest
Drug use
conflict Prostitutions
Terrorism
yes no

Figure 10

94 90
100 84
90 80
80
70
60
50
40
30 16 20
20 6 10
10
0
Pollutions Privacy/ safety Theft and begging
created by issues robbery
tourist
Yes No

Figure 11

k) Negative environmental impacts

Negative environmental impacts are the important factors
factor which effectthe
the performance
of [Link] impacts from the tourism occur when the level of visitor use is
greater than the environment’s ability to cope up with this use within the acceptable
limits of change.

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90 86 92
100 80 84
90 70
80
70
60
50 30
40 20 16
30 10 14 8
20
10
0

Yes No

Figure 12

l) Major Internal Organization

Organizatio Issues
Internal organization issues are the important factor of the performance of business.
Managing the strengths of internal operations is the key to business success. The role of
company leadership is an essential internal factor.

50 46
45 40 40
40
35 32 32
30
28
30
24 24
25 20 20 20
20 16
15 10 10
8
10
5
0
employee strikes miscommunication absence of conflicts
leadership

strongly agree agree disagree strongly disagree

Figure 13

m)Major Internal Organization Issues

Internal organization issues are the important factor of the performance of business.

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Managing the strengths of internal operations is the key to business success. The role of
company leadership is an essential internal factor.
factor

50 46
44
45 40 40
40 36
34 34
35 30
30
25 20
20 16
12 14
15 10 10
8
10 6
5
0
staff poaching absenteeism job security issues lazy attitude of
empolyees

strongly agree agree disagree strongly disagree

Figure 14

n) Negative Political factors

Political factors are the important factor of the performance of business. Political
change in a country can seriously impact the prospects for the tourism industry in that
country. Radical changes in a country politics can cause tourist to fear for their safety
and, therefore avoid a country

100% 10 5 5 10
15 5
90% 10 15
5 20 20
80%
20 25 20
70%
60% 30
50%
40% 70
60 55 50
30%
40
20%
10%
0%
new new rules political harthals and communal
finaqncial and instability strikes riots
policies regulations

strongly agree agree disagree strongly disagree

Figure 15

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o) Negative Economic factors

Negative economic factors are the important factor of the performance of business.

5 10
100 15 20
20 30
80 20 10

60 30 40 40
40 60
40 10
20 30 20
0
Demonetization Export/Import Financial Fluctuations in
leakages policies of other forex value
nations

Strongly Agree Agree Disagree Strongly Disagree

Figure 16

120

100
10 10 10
20
10
80 20
30 10
20
60 20
30
20
40
60
50
20 40 40

0
inflation expensive car rental increance in entrence increase in service
fee charge

strongly agree Agree Disagree strongly disagree

Figure 17

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p) Tax Policies
60 60
60
50 50
50
40 40
40
30 30
30
20 20 20
20 15
10 10 10 10 10
10 5 5 5

0
Tax on Tax on forex Tax on goods corporate tax Incometax
recreational payment and services payment
activites

stongly agree agree disagree strongly disagree

Figure 18

Tax policies are yet another factor which influences the working efficiency of travel
agencies.
7. CONCLUSION
A study about the various factors influencing the travel agencies will help to understand
the role of travel agencies in promoting tourism. These factors if cared properly will
help the travel
ravel agencies to function effectively which in turn will promote tourismTravel
tourism
agents help travelers’ sort through vast amounts of information to help them make the
best possible travel arrangements. They offer advice on destinations and decide for
transportation,
ortation, hotel accommodations, car rentals, and tours for their clients. They are
also the primary source of bookings for most of the major cruise lines. In addition,
resorts and specialty travel groups use travel agents to promote travel packages to their
thei
clients.
Travel agents are also increasingly expected to know about and be able to advise
travelers about their destinations, such as the weather conditions, local ordinances and
customs, attractions, and exhibitions. For those traveling internationally
internationally,, agents also
provide information on customs regulations, required papers (passports, visas, and
certificates of vaccination), travel advisories, and currency exchange rates. In the event
of changes in itinerary in the middle of a trip, travel agents inter
intercede
cede on the traveler’s
behalf to make alternate booking arrangements. Since travel agencies have such a
wide scope its very essential that their working should be taken into consideration for
effective promotion of tourism.

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REFERENCES
• Cooper, C. (2008). Tourism: Principles and practice. Pearson education.
• Wall, G., & Mathieson, A. (2006). Tourism: change, impacts, and opportunities.
Pearson Education.
• Lin, Y. C., Lin, M. L., & Chen, Y. C. (2017). How tour guides’ professional
competencies influence on service quality of tour guiding and tourist satisfaction:
An exploratory research. International Journal of Human Resource Studies, 7(1), 1-
19.
• Archer, J., &Syratt, G. (2012). Manual of travel agency practice. Routledge.
• Dickinson, J., &Lumsdon, L. (2010). Slow travel and tourism. Earthscan.

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