NII NAZNE

DANA JOSHI
 TOURISM
OPERATIONS AND
MANAGEMENT

SUNETRA RODAY * ARCHANA BIWAL * VANDANA JOSHI

Department of Tourism
Maharashtra State Institute ofHotel Management &
Catering Technology (MSIHMCT), Pune

OXFORD

ai
 OXFORD
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 Dedicated to our parents
who have helped and supported us whenever we needed them

Smt. Sudha A. Shrouti and Late Col. A.W. Shrouti

Sunetra Roday

Smt. Mewadevi and Shri Ramkumar Sodi

Archana Biwal

Smt. Asha and Dr. Shripad Mahurkar

Vandana Joshi

_ONE WEEK LOAN

UNIVERSITY OF DERBY
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 Preface

The tourism industry is a vast industry made up of various sectors related

to virtually all areas of the economy. It has steadily acquired an
increasingly significant position in the global economy. The operation
and magnitude of such a vast industry cannot be viewed in isolation as it
is the outcome of the combined efforts of different business houses and
organizations which provide tourism-related services. The Government
of India has realized the tremendous potential of this industry in
expanding the economy and in the Seventh Five Year Plan, tourism was
accorded the status of an industry. Tourist numbers—both international
and domestic—are increasing each year and an industry growing at such
a phenomenal rate is bound to bring about changes and challenges.
Commensurate with this has been an increase in the number of schools,
colleges, and tourism organizations offering travel and tourism-related
courses. Travel and tourism companies too are seeking to recruit graduates
who possess essential knowledge and business skills which are relevant
to this industry. Management skills of planning, organizing, development,
marketing, and customer service are essential for managing any business
successfully and tourism is no exception.

About the Book

This book explores the issues pertaining to tourism operations and
management from a global perspective. While it has been especially
designed to meet the needs of students of hotel management, travel and
tourism, and hospitality courses, professionals within the industry will
also find it a useful reference.
Written in an easy-to-read, student-friendly manner, this comprehensive
book examines the operation and management of all the sectors of the
industry. Aimed at providing a practical view of tourism operations and
management, the book fills a void of a single textbook specific to the
tourism profession, which covers the needs of the industry and the syllabus
of the subject for hotel management and hospitality-related courses. This
book discusses the principles and practices of tourism exploring relevant
theoretical concepts and incorporates current industry practices.
This book has been conceptualized keeping in mind the fact that there
is no comprehensive Indian text on tourism available as of now. It has
vi Preface

been developed in consultation with tourism professionals and includes

areas which need special emphasis to give the students an insight into
the various aspects of this vast industry.

Pedagogical Features
Each chapter of the book includes learning objectives, definitions of
important terms, figures, tables, and pictures to add interest and clarify
concepts. End chapter exercises include concept review questions to test
the reader’s understanding of the concepts discussed in the chapter, critical
thinking questions to stimulate the thought process, and projects/
assignments to help the reader develop further interest and knowledge.
A chapter-wise summary and key terms are included at the end of every
chapter, along with references. Every effort has been made to provide
latest statistics and examples from this rapidly changing industry.

Coverage and Structure

The first five chapters of the book serve as an introduction to the tourism
industry and its various sectors and sub-sectors. The book begins with
the definition of tourism and the tourism industry, its significance, a
historical overview of the stages in the evolution of tourism, different
types of tourism, infrastructural requirements, and a descriptive section
on tourist transportation.
Chapter six discusses the different tourism organizations, their roles
and functions.
Chapter seven highlights the crucial role of the two intermediaries in
the industry—the travel agent and the tour operator and their functions.
The reader is introduced to the concept of package tours and the
significance of guides and escorts. Guidelines for setting up a travel agency
are also discussed in this chapter.
Chapter eight deals with travel documentation and the importance of
completing various travel formalities before undertaking travel.
Chapter nine introduces the reader to geography pertaining to the
airlines and the various codes and abbreviations which a tourism
professional needs to know.
Chapter ten provides details of the technical aspects of planning
itineraries with adequate examples, including the procedure for calculating
the costing of tours.
Chapter eleven explains the unique characteristics of the tourism
product and how the service product differs from goods or commodities.
 Preface vii

Chapters twelve and thirteen consider the marketing and sales

techniques and the dominant role of the tourism professional in customer
satisfaction.
Chapters fourteen and fifteen provide an insight into the impact created
by the tourism industry on environment, economy, culture, and society.
Environmentally sensitive issues and eco-friendly practices are dealt with,
along with tourism legislations. Measures for sustainable tourism
development and the need for planned development are emphasized.
Chapter sixteen discusses the changing scenario of the tourism industry
and stresses on the role of information technology and emerging trends
in this industry. The tourism policy and initiatives taken by the
government are also dealt with in this chapter.
Several forms and formats, codes and currencies for practical sessions
are given as appendices.

Acknowledgements
The authors would like to acknowledge the contribution of all the people
and organizations who have directly or indirectly helped in the
conceptualization and compilation of this book.
We gratefully acknowledge the encouragement and inspiration from
Dr S K Mahajan, Director Technical Education, Maharashtra State. We
would like to thank Ms R Kayerkar, Principal, Maharashtra State Institute
of Hotel Management and Catering Technology, Pune; our colleagues,
especially the library staff and other support staff; and students of our
institute for their contribution and assistance in completing this book.
We wish to extend our gratitude to Mr Aniket Shrouti, Addl. Check
Flight Purser, Air India Ltd for his invaluable guidance and suggestions,
and Mr Vikrant Roday, Senior Consultant, Capgemini, Pune for his
constant assistance and technical support.
We would like to thank all the tourism professionals—travel agents,
tour operators, and academicians—from Pune and Mumbai for the
valuable inputs from the industry perspective.
We extend our sincere thanks to the editorial team at Oxford University
Press (OUP) India, as well as the reviewers for their guidance, persistence,
and continuous support.
Last, but not the least, we would like to acknowledge the patience and
understanding of our families throughout this project.
Sunetra Roday
Archana Biwal
Vandana Joshi
 Contents

Preface v Attractions 83
Telecommunications 86
. Introduction to Travel and Essential Services 86
Tourism 1 Other Services 87

The Meaning of Tourism 3 . Tourist Transport 91

The Tourism Industry 7
Air Transport 92
Significance of Tourism 9
Air Transport in India 94
The Tourism System 12
Five ‘A’s of Tourism 15
Security of Aircraft and
Passengers 99
. History of Travel and Tourism 20 International Air Travel Classes 102
Road Transport 104
Developments in the History of
Rail Transport 109
Tourism 21
Tourism in India—Post
Water Transport 117
Transport as an Attraction 123
Independence 34
Modern Tourism 35 . Tourism Organizations 129
. Types of Tourism 4} Need for Tourism Organizations 131
Purpose of Tourism 42 International Organizations 131
Travel Motivators 43 Government Organizations in
Leisure or Holiday Tourism 44 India 141
Visiting Friends and Relatives Private Sector Organizations in
(VFR) 46 India 151
Cultural Tourism 46 Non-government Organizations 157
Adventure Tourism 48 Other Important Tourism
Sports Tourism 50 Organizations 159
Religious Tourism 51
Business Tourism 54
. The Travel Agent and the
Health Tourism 57
Tour Operator 164
Alternative Forms of Tourism 60 The Travel Agent 166
Types of Travel Agencies 168
Tourism Infrastructure 70
Functions of a Travel Agency 171
Definition 71 Setting Up a Travel Agency 176
Accommodation 74 Sources of Income for a
Food and Beverage 82 Travel Agency 177
 Contents ix

The Tour Operator 180 Appendix 9.4: Country Codes 291

Types of Tour Operators 181 Appendix 9.5: Currency Codes 293
Package Tours 182
Types of Package Tours 185 10. Itinerary Planning 296
Guides and Escorts 186 Definition 297
Basic Information 299
. Travel Formalities and Planning the Itinerary 301
Regulations 192 Resources for Planning
Passport 193 Itineraries 304
VISA 204 Costing ofa Tour 306
Health Regulations for Calculation of a Tour Cost 312
International Travel 214
11. Tourism Product 330
Special Permits for
Restricted Areas 216 Definition 331
Customs Regulations 217 Characteristics of Tourism
Emigration and Immigration 223 Products 333
Taxes Paid by Travellers 224 Nature of Tourism Product 338
Travel Insurance 226 Types of Tourism Product 338
Appendix 8.1: Format for Passport 12. Tourism Marketing 344
Application 237
Appendix 8.2: Visa Requirements for Some Definition 346
Popular Destinations 242 Market Segmentation 348
Product Life Cycle 352
Appendix 8.3: Health Questionnaire 255
The Marketing Mix 354
Appendix 8.4: Customs Declaration
Marketing of Services 360
Form 256
Familiarization Tours 361
Appendix 8.5: Arrival and Departure
Marketing Research 363
Forms 257
Tourism Forecasting 367
Appendix 8.6: Travel Insurance Form 259
Seasonality in Tourism 368
. Airline Geography 262 Designing a Tour Brochure 370

Physical Geography 263 13. Customer Service Skills 376

World Time Zones 265 Importance of Customer
International Date Line 268 Satisfaction 379
IATA Areas of The World 270 Creating Good Customer
Codes in Tourism 272 Relations 380
Appendix 9.1: City Codes, Airport Names, Telephone Skills 383
and Codes ofDifferent Countries 279 Phonetic Alphabet 385
Appendix 9.2: City Codes, Airport Names, Product Knowledge 386
and Codes ofIndia 287 The Sales Process 388
Appendix 9.3: Airlines Codes 289 Handling Customer Complaints 393
x Contents

14. Impacts of Tourism 398 16. Emerging Trends in Tourism 458

Economic Impacts 399 Changing Scenario of the
Environmental Impact 406 Tourism Industry 459
Sociocultural Impacts of SMERFS 461
Tourism 412 Tourists with Special Needs and
The Demonstration Effect 415 the Differently-abled Tourist 461
Cultural Impacts 416 Emerging Types of Tourism 462
Political Impacts 419 Present Accommodation
Measures to Regulate Tourism Scenario 469
Impacts 420 Tourism Distribution Systems 470
Tourism Legislation 430 Online Travel Agents 474
The Zero Per Cent
15. Attraction Planning and Cormisconiera 175
Development ba Travel Industry Trends 478
Need for Planned Development 438 Trends in the Aviation Industry 481
Planning Process 439 Developments in Aviation 482
Various Levels at which Plans Trends in Catering 487
are Prepared 441 Need for Trained Staff 488
Principles of Attraction Environmental Concerns
Development 443 —Going Green 488
Feasibility Analysis 446 Government Initiatives for
Location 446 Tourism 490
Identifying the Market 447 Appendix 16.1: Tourism Policy of
Cost-benefit Analysis 447 Maharashtra 2006 494
Managing a Historic Site 449
Theme Parks as Attractions 452 Index 499
 cf

4A.
$

‘:3

CHAPTER | :

Int roduction to Travel

and Tourism

Learning Objectives
After reading this chapter you should be able to:
understand the meaning of the word tourism
e define the basic concepts related to tourism
e describe the various constituents of the tourism industry
e know the significance of tourism
e identify and describe the five ‘A’s of tourism

INTRODUCTION

| very day all over the world, innumerable people make their
_travel plans for a pleasure or business-related trip. The trip
4 may be ofa short or long duration, for the forthcoming weekend,
or for a longer holiday sometime during the coming year. Visas are applied
for, flights are reserved, accommodation is booked, cars are rented, train
tickets are purchased, itineraries are planned, and the World Wide Web
is surfed for travel-related information and availability of seats. Thousands
of people are working round-the-clock to provide these services and
2 Tourism Operations and Management

interact with the traveller, while another couple of thousands work behind
the scenes to help the traveller have a safe and memorable holiday.
All these people form a part of one of the largest industry in the world—
the tourism industry. When people make travel plans and visit different
places, they contribute directly or indirectly towards the livelihood of
millions who work for this industry.
Let us take a closer look at the professionals who contribute towards
making our trips possible. Consider a family of four from Pune planning
a week’s holiday in Singapore. Their friends have just returned from a

Table 1.1 Persons/agents responsible for various travel-related tasks

Person/Agency Responsible
Passport document Ministry of External Affairs
Visa endorsement Consulate
Airline ticket to destination Travel agent
Accommodation at destination Travel agent
Foreign exchange Travel agent/bank
Transport to airport Local transport services
Collect trolley Airport staff
Go to airline counter at terminal Airline staff
Screen baggage Airports authority of India and
Central Industrial Security Force
(CISF)
Weigh baggage, check visa Airline staff
Get passport checked Immigration officer
Customs declaration Customs officer (Indian Revenue
Services)
Hand baggage screening and frisking GESE
Duty-free shopping Salespersons
Airline gate representation Airline staff
Baggage handling Airport staff
Food service on board Flight caterers
On board the aircraft Flight purser and airhostess, flight
-Other airline staff for safe flight engineer, pilot, co-pilot, aircraft
mechanic
Arrival at the destination Changi airport staff
Immigration Immigration officer (Singapore)
Baggage claim Baggage handling agency of airline
Customs clearance Customs officer (Singapore)
Pick-up guests from airport Hotel courtesy coach driver
Arrival at hotel Hotel doorman
Registration and room allotment Receptionist/front desk
Escorting to room and carrying bags Porter ;
Se
|
 Introduction to Travel and Tourism 3

fabulous holiday in Singapore, so they call their friends to get details

about the travel agent and other travel formalities required for the trip.
Little do they realize that for each step in their plan, there are hundreds
of people working to ensure that things go smoothly. Take an example of
the meals served aboard a flight, which are provided by special flight
caterers who cater to in-flight services and employ hundreds of people
to prepare the meals as per set standard specifications. Table 1.1 takes a
look at some of the people/agencies involved and tasks which need to be
completed to make the trip happen.
The family has just arrived at their hotel in Singapore and is yet to
explore the destination, but as we can see, they have already interacted
with so many people. All these individuals are from different sectors of
the vast tourism industry and all will benefit from the arrival of the tourists
and so will many others, whom the family will interact with during their
stay in Singapore.
From the above example, it is quite clear why tourism has been
declared as one of the world’s largest industries today. The number of
tourists and the industry itself has shown a phenomenal growth, making
both the government and the private sector wake up to realize the need
to study tourism and its consequences. The sheer number of travellers
and even larger volume of the host population (locals at the destinations)
who bear the brunt of tourists or the consequences of tourism is another
aspect which needs to be considered and will be discussed at length in
Chapter 14.

THE MEANING OF TOURISM

The word ‘tourism’ does not only mean international travel for leisure or
travel by air, but has a much wider scope. Many thoughts may come to
one’s mind when one thinks about tourism. Tourism may bring forth
pictures of cool hill stations, snow clad mountains, warm sunny beaches
or long scenic drives. Enjoyment, pleasure, excitement, packing of bags,
carrying documents and credit cards, shopping, and spending money
are some of the things which may come to your mind when you think of
tourism. How you perceive tourism will also depend on your past
individual experience as a tourist. Then what exactly does the term
tourism mean and what all does it encompass or include? It is necessary
to understand the term tourism in its totality and identify what its main
characteristics are. Tourism is the temporary short-term movement of
4 Tourism Operations and Management

people to destinations outside the place where they normally live and
work and includes the activities they indulge in at the destination as well
as all facilities and services specially created to meet their needs. Tourism
does not only mean travelling to a particular destination but also includes
all activities undertaken during the stay. It includes day visits and
excursions.
Tourism is closely related to leisure and recreation. Leisure time is the
time we have with us after carrying out our basic needs such as work and
sleep. It is our free or spare time. Recreation is the activities we enjoy
doing which are carried out during our leisure time.
Both leisure and recreation are necessary for all of us to overcome the
mounting stress and strain of modern life. Playing a game of scrabble,
swimming, or watching a movie, are all recreational activities carried out
in one’s leisure time at home or in a community centre. Tourism is one
such recreational activity. It involves travel away from one’s place of
stay to participate in other recreational activities. For example, snorkelling
at Andaman and Nicobar Islands is tourism whereas swimming in the
neighbourhood pool is only recreation.
Most tourism activities are leisure activities except when people travel
during their working hours or over the weekend for business-related work.
That tourism is only a leisure activity is a misconception. When people
travel to participate in meetings, seminars, conferences, trade fairs or to
launch new products, it is also a tourism activity.
The tourist market may thus be divided into the following two
categories:
1. The leisure tourist
2. The business tourist

Leisure tourists do not travel for monetary benefit, unlike the business
tourists whose main motive for travel is making profits or expanding
their businesses.
Both these tourists travel away from their normal places of residence
and spend at least one night away from home. Both need transport,
accommodation, food and beverage, recreation, etc. although their main
motives for travel are different.
Then how do we define the term tourism? There is no single universally
accepted, clear cut definition of tourism. Tourism professionals have
defined tourism in many different ways over the years. It has been defined
as a change from one’s usual routine and what one looks forward to
 Introduction to Travel and Tourism 5

most. It is a travel usually undertaken out of choice and convenience,

which is the reason why it is more exciting and memorable.
One of the earliest definitions of tourism was in the year 1937 by the
League of Nations, “The term tourist shall in principle be interpreted to
mean any person travelling for a period of 24 hours or more in a country
other than in which he usually resides.’ The definition which focused on
the tourist has been modified several times over to include tourism
activities, impacts, day visits, and not only the geographical movement
of people.
In 1977, Jafari described tourism as “The study of man away from his
usual habitat, of the industry which responds to his needs, and of the
impacts that both he and the industry have on the host’s socio-cultural,
economic, and physical environments’.
While defining the term tourism, it must be kept in mind that tourists
are short-term, temporary visitors and should not be confused with people
who migrate to a country to settle permanently and become residents.

Related Concepts
Some more concepts related to tourism are discussed in the following
section.
Visitors A visitor is any person visiting a country other than that in
which he/she has his/her usual place of residence, for any other reason
than following an occupation from within the country visited.

Visitors may be further categorized as excursionists and tourists.

Excursionist An excursionist is a day visitor who stays for less than
24 hours at a place. Excursionists do not stay overnight. For example, if
a group of students from Pune go to the nearby hill station Lonavala
early in the morning and return late in the evening, they are called
excursionists.
Tourist A tourist is a temporary visitor to a place. When people leave
their usual place of residence and work to have a change from their
usual routine for a short time, they are called tourists. They stay at the
place overnight, i.e. for at least 24 hours.
Domestic tourism It involves residents of a country travelling within
the borders of that country. A person from Pune going for a holiday to
Kerala is a domestic tourist.
6 Tourism Operations and Management

International tourism It involves people travelling from one country

to another country, crossing national borders or through immigration
check points.
International tourists may be inbound or outbound.

Inbound tourism ‘This refers to incoming tourists or tourists entering a

country. For example, Malaysian citizens travelling to India would be
considered as inbound tourists for India and outbound tourists for
Malaysia (see Fig. 1.1).
Outbound tourism This refers to outgoing tourists or tourists leaving
their country of origin to travel to another country (see Fig. 1.1).
Traveller A traveller is a person who travels from one place to another.
It is a general term used for a person who travels, irrespective of the
purpose of travel, distance travelled, or duration of stay. All tourists are
travellers/visitors but all travellers/visitors are not tourists.
Transit visitor A traveller/visitor who passes through a country without
breaking journey other than for taking connecting transport is called a
transit visitor. His/her destination is another country.
Hospitality It is concerned with providing necessary meals, a place to
live and sleep, and a welcoming attitude within defined levels of service
for which the customer has to pay. It provides physiological and
psychological comfort and security to the guest.
Destination A destination is the place where tourists travel for leisure
or business-related activities. It is the place where the tourist product is
located and consumed. Destinations can be spread over a wide
geographical area and it is the reason for tourism to exist. Without a

Domestic tourism

Pune (Origin) Kerala (Destination)

|?

International tourism

Outbound

India (Origin) Malaysia (Destination)

Inbound

Fig. 1.1 Domestic and international tourism

 Introduction to Travel and Tourism 7

destination there would be no tourism. The images and positive

perceptions that people have of a destination, draw tourists to the place.

Tourism Regions of the World

The United Nations World Tourism Organization (UNWTO) has divided
the world into six tourism regions on the basis of volume of tourists and
the concentration of popular products and destinations (see Fig. 1.2).
These regions include both rich and poor countries as well as advanced
and underdeveloped tourism destinations. Tourism activity is unevenly
distributed in these regions and is developing at its own pace.

THE TOURISM INDUSTRY

The tourism industry is a vast industry made up of businesses and
organizations that provide goods and services to meet the distinctive
needs of tourists. These businesses and organizations are related to
virtually all areas of the economy making tourism a very huge
industry.
The tourism industry comprises many sectors or sub-industries
such as the hospitality industry, transport industry, attractions, and
entertainment. All these sectors are interconnected and integrated. They

East Asia
and
Pacific

: Middle
Africa | East

UNWTO
Regions

A : South
merica Aaia

Fig. 1.2 The six tourism regions of the world

8 Tourism Operations and Management

work with one another to some extent in providing goods and services
as their survival depends on each other.
There is some dispute as to whether a separate tourism industry exists.
Some perceive the tourism industry as a highly fragmented industry made
up of many industries. However, in the Seventh Five Year Plan (1985-90)
tourism was accorded the status of an industry by the Government of
India.

Constituents of the Tourism Industry

The tourism industry is the outcome of the combined efforts of various
sub-industries or sectors which provide tourism-related services. Large
multinational companies (MNCs), small business houses, and individuals
working as guides at tourist spots, all constitute the tourism industry.
Some of the constituents are located at the destination itself, such as hotels,
attractions, guides, shops, local transport, etc; some are encountered en
route like customs, transport, foreign exchange money changers; while
others are available at the place of origin of the journey, such as consulate
for visa and travel agents. The tourism industry can be classified into two
broad categories or sectors namely the main constituents and the
secondary constituents as shown in Table 1.2.
The tourism industry, as we can see, covers a very wide range of in-
dustries and services also referred to as sectors of the tourism industry.
The Government of India has realized the tremendous scope of this
industry in expanding the economy, and is offering incentives and

Table 1.2 Constituents of the tourism industry

Main constituents Secondary constituents

Transport industry Shops and state emporiums
Hospitality industry Arts and crafts
Entertainment industry _ocal transport
Travel agents and tour operators Banks
Guides and escorts Insurance companies
Tourism organizations Communication services—Media
Performing artists
Publishers
Advertisers
Hawkers and coolies
Agents and brokers
 Introduction to Travel and Tourism 9

conducting formal training programmes for service providers to give a

boost to tourism in our country.

SIGNIFICANCE OF TOURISM
Tourism is a global phenomenon. It is the world’s largest and fastest
growing industry. According to the World Travel and Tourism Council
(WTTC), tourism generates more than 230 million jobs directly and
indirectly, and contributes to more than 10 per cent of the world gross
domestic product (GDP). According to WTTC, the global tourism
industry isa USD 5000 trillion industry giving tourism global significance.
International tourist arrivals in 2006 were 842 million people and
UNWTO has forecast the number to exceed 1.6 billion by the year 2020.
Not all increases in tourism arrivals or receipts are proportionately
distributed throughout the receiving regions of the world. It is important
to know which countries are major tourism generators and major tourism
recipients. Figure 1.3 shows us the 10 most visited countries in the world
in 2006 and 2007, while Fig. 1.4 depicts international tourism receipts in
2006 and 2007. It is essential for tourism managers to understand tourism
flows, i.e. where do tourists travel to, from which country do they originate,
and the volume of tourist flows. These statistics are collected, compiled,
and disseminated by the UNWTO and WTTC.

oO International tourist
arrivals 2006
Mexico ——s
——— sq International tourist
YET a! arrivals 2007
Turkey -=
(Figures in millions)

Ukraine
Germany =a

Italy Goa

China -———=
USA Saaz

Spain

France Ea aa

Q 10 20 30. 40 0. Go 7) co) va

“qg. 1.3. Most visited countries in the world in 2006 and 2007
10 Tourism Operations and Management

oO International tourist
receipts 2006
Turkey ; International tourist
receipts 2007
Austria

Australia +

Germany

UK +
China

Italy +

France

Spain +

USA +

One 1020 C04 O50 OO mn Ome SOM OOM TOU

Fig. 1.4 International tourism receipts in billions (USD)

Table 1.3 shows some of the most visited tourist attractions in the
world with their world rank, while Table 1.4 shows the top 15 tourism
destinations in the world in 2007.
The tourism industry is characterized by constant change and
development and is a highly dynamic industry offering innovative
products, new destinations, and technologically advanced transportation
every year. The latest in this range is the world’s largest cruise liner
‘Freedom of the Seas’ which can accommodate over 5500 passengers.
Stiff competition exists amongst the service providers, with each trying
their level best to attract and retain customers. This industry is also highly
vulnerable to significant events occurring around the globe such as the
Hurricane Katrina, bird flu outbreaks, and even soaring oil prices.
The rapid pace of growth of this industry is directly linked to the
following factors:

¢ Greater disposable incomes with women entering the workforce,

which is spent on recreation and leisure.
e Employees in many organizations are entitled to a minimum number
of days paid leave per annum. Leave travel allowance (LTA) facility
is given to the employees which covers self and family.
 Introduction to Travel and Tourism 11

Table 1.3. Some of the most visited tourist attractions by domestic and
international tourists in 2007 with world ranking
.
World’s Tourist attraction City, Country
ranking
Times Square New York City, USA
National Mall and Memorial Parks Washington DC, USA
Walt Disney World’s Magic Kingdom Orlando, USA
Trafalgar Square London, UK
Disneyland Anaheim, CA, USA
Niagara Falls Ontario, Canada and New York, USA
Fisherman’s Wharf and Golden Gate San Francisco, CA
Tokyo Disneyland and Tokyo DisneySea Tokyo, Japan
Notre-Dame de Paris Paris, France
Disneyland Paris Paris, France
The Great Wall of China
=PODANDAUARWNHPE Badaling, China
Eiffel Tower Paris, France
Grand Canyon Arizona, USA
eR
eR
WWC
a Statue of Liberty New York, USA
uO= Taj Mahal Agra, India

Table 1.4 The world’s top 15 cities in 2007 with world ranking

No. of visitors (in million)

London UK 15.64
Bangkok Thailand 10.35
Paris France 9.70
Singapore Singapore 9.50
Hong Kong China 8.14
New York City USA 6.22
Dubai UAE 6.12
Rome Italy 6.03
WON
Oo
RP
KRWYNY
AM Seoul South Korea 4.92
Barcelona Spain 4.69
Dublin Ireland 4.47
Bahrain Bahrain 4.42
SySS}
pes
es(AB
[Rey Shangai China 4.31
Toronto Canada 4.16
=
Mm
& Kuala Lumpur Malaysia 4.12

Source: UNWTO (www.world-tourism.org) and Wikipedia Tourism

12 Tourism Operations and Management

e Global travel is becoming more accessible for all classes of people in

developed countries with advances in transport and technology and
availability of low cost carriers.
e Greater awareness about travel and tourism, through the Internet, as
well as through articles and advertisements published in leading
magazines and dailies and on television.
e Discretionary time and money available. Double income no kids
(DINK) policy being adopted by couples.
¢ An unquenchable thirst or desire to travel which has always existed
in humankind.
e Stress and strain of routine work makes one look for a welcome break.
Today, tourism is no longer the privilege of the rich and famous
exclusively, but it is an activity to be enjoyed by people from all strata of
society. It is ingrained into the daily lives of many people across the
globe. It involves not only the life of the tourists, but leaves its impact on
the host or local population at the destination as well.

THE TOURISM SYSTEM

Tourism, as we have just read, is made up of various industries or sectors
which need to work in harmony to serve the needs of tourists. Tourism
has evolved from a number of academic disciplines such as geography,
history, sociology, psychology, anthropology, agriculture, business
management, marketing, law, political science, economics, education,
architecture, and public health.
Figure 1.5 shows us the different dimensions of tourism. It can be
studied from the perspective of any of these disciplines. However, the
different perspectives can be confusing. Tourism as a field of study is
complex and requires an interdisciplinary approach. A specific frame of
reference would be useful while studying the subject of tourism.
Systems theory is one such frame of reference that can be used to
study and analyse tourism. It is a useful way of investigating a
phenomenon. Systems theory tries to forma complete picture of all parts
of the tourism phenomenon and tries to explain how these separate parts
or components work together as a whole.
A system is a collection of interrelated elements that interact to produce
a desired result. Each system has a particular function to fulfil or a result
to achieve. According to the systems theory, a system’s external or macro-
environment influences its performance. The external. environment
 Introduction to Travel and Tourism 13

Engineering Anthropology
Transport Sociocultural
innovations impacts

Political
science
Tourism
Geography policy Ecology
Regional and : Education
urban planning ge dealare Environmental
,
Planning
patterns o impacts Human resource
tourism
methodologies acre kKp=
develo
a8
t

Economics , :
Tourism Psychology
Economic Studies Tourist
impacts behaviour

Business — un <9 Public

science Tran . health
Management of
Sept
economics
Sociology Tourism health
see le Moe Host-guest impacts
operations bconeniss :
Marketing i i
relationship

Tourism
marketing
strategy

Law Architecture
louie
feguintionand pees
tourism facilities

Fig. 1.5 An inter-disciplinary perspective of tourism

Source: Keyser (2002)

includes all factors outside the system that may create obstacles or help
the system in achieving its objectives. These environmental factors may
be sociocultural, physical, political, economic, environmental, legal, and
technological.
Figure 1.6 provides a methodological framework for studying tourism
and will help us in understanding the systems approach in a better manner.
According to Leiper (1979), tourism is made up of the following five
elements:
1. Traveller generating region
Transit region
Tourist destination region
Tourists and
a Tourism industry
All of these are influenced by the external environment by which
they are surrounded.
14 Tourism Operations and Management

E External environment ‘Ss

x x
t t
e F e
r Departing r
n travellers n
a a
| |

e Traveller generating ————> Transit route ————> Tourist e

n region destination n
M region y
|
r r
ie) Returning fe)
an travellers rin
e e
n n
t External environment t

Fig. 1.6 Leiper’s basic tourism system

Source: Adapted from Leiper (1979)

The success of any tourism activity depends on all the five elements.
These elements are interrelated and have to function properly. Let us
understand these five elements and the influence of the external
environment on the tourism system.
Tourists are the people from the traveller generating region and the
human participants in the system. The transit route is the link between
the generating region and the destination and comprises all the places that
tourists pass through en route. The tourism industry consists of all the
sectors and sub-sectors which meet the specific needs and wants of the
tourists and is located in all the three regions. For example, travel
organizers are located in the generating region, transport sector is in the
transit region, and hospitality sector is located in the destination region.
The destination region is the place where the tourist is travelling to and is
the focus of tourist activity and attractions.
The macro-environment or external environment can have a positive or
negative impact on the tourism system. For example, with the advances
in information technology (IT), tourists have access to hotels and
destinations worldwide via the Internet, which gives the service providers
more opportunities for marketing their products. However, incidents like
the 9/11 terrorist attack on World Trade Center (WTC) towers in the
USA in 2001 and the tsunami in December 2004 in South East Asia
leave temporary negative impacts on the tourism system. The success of
a destination, howsoever attractive it may be, depends on the effectiveness
of the tourism system. .
 Introduction to Travel and Tourism 15

Some important facts related to tourism are as follows:

* tremendous growth potential;
* generates direct and indirect employment to millions across the globe;
¢ travel undertaken for leisure or business;
* includes short visits to other places;
* goods and services are consumed which differ from our routine;
* is an integral part of our lifestyle;
¢ technology such as the Internet has simplified travel bookings; and
* is multi-disciplinary and encompasses a number of disciplines.

FIVE ‘A’S OF TOURISM

As we have already discussed, there can be no tourism without a
destination. When people travel, they go to some particular place. For a
destination to develop and sustain itself, the following five ‘A’s are
important.
The classic five ‘A’s of tourism are
1. Accessibility
2. Accommodation
3. Amenities
4. Attractions
5. Activities
Accessibility This refers to the transport and transport infrastructure to
reach the destination and at the destination. Tourists look for comfort
and hassle-free travel. Apart from comfort, cost, convenience, time for
travelling, and safety, there are other important factors which need to be
considered before undertaking a journey. For example, Port Blair in the
Andaman and Nicobar Islands may not be considered easily accessible
by tourists who cannot afford air travel and have to travel by sea. Rough
waters, sea sickness, and cancellation of flights due to bad weather
conditions can hamper accessibility.
Tourists look forward to smooth travel in terms of regular schedules,
well-developed network of roads, railway lines, airports, harbours, and
adequate means of safe transport. The hill station Matheran in
Maharashtra is another example of poor accessibility, as private vehicles
are not allowed till the top.
Accommodation It plays a central role in tourism. Every tourist needs a
place to stay and relax. Tourists look for clean, hygienic, and well maintained
16 Tourism Operations and Management

accommodation with a comfortable bed, clean linen, and sanitary facilities

with adequate hot and cold water supply. A wide range of accommodation
options exist at most destinations ranging from tourist lodges to five star
deluxe hotels. Without suitable accommodation there would be no tourism
as accommodation is the temporary home of the tourist at the destination
and the base from which they pursue their activities.
Amenities It refers to the facilities available at the destination which
help in meeting the needs and wants of tourists. Tourist amenities include
food and beverage facilities, drinking water, good communication
network, local transport, automatic teller machines (ATMs), proper
garbage and sewage disposal systems, medical facilities, etc. Electricity
supply with minimum power cuts and adequate water supply are crucial
facilities which must be available at the destination.
Attractions This is the principal reason for undertaking travel to a
particular destination. Attractions are classified basically into four
categories which are as follows:
1. Natural attractions such as pristine beaches, waterfalls, scenic
views, climate, heavy rainfall, snow clad mountains etc.
2. Human-made attractions such as theme parks, Ocean Park at
Hong Kong, Disney World at Orlando, USA, Snow City at
Singapore, etc.
3. Cultural attractions in the form of fairs, festivals, celebrations,
theatre and museums, which depict the history and culture of a
country.
4. Social attractions where one can meet and interact with the locals
at a destination as well as meet friends and relatives.
Activities People take a break because they want to see and do different
things. Some like an active holiday and would like to go for water sports,
fishing, nature trails, etc. while some would rather just sit back and relax.
A number of activities may be available at the destination to suit various
age groups and social backgrounds. Tourists may be attracted to a
destination for any one or more of the above activities or attractions
located there.
Apart from the classic five ‘A’s of tourism, we suggest a sixth ‘A’ which
is extremely vital to the success of any destination.
Affordability This is the sixth ‘A’ but nonetheless very important to attract
tourists to the destination. Tourists should be able to afford the trip in
terms of transport costs, accommodation charges, entrance fees at
 Introduction to Travel and Tourism 17

attractions and the number of days, which need to be spent for travel
and stay; i.e. they should be able to afford the holiday in terms of time
and money. Tour operators prepare package tours keeping affordability
in mind. These group tours work out cheaper than individuals booking
their own tickets and making itineraries for themselves.
A successful destination would have a good balance between these
six ‘A’s and ensure that there is something to see and do for people of
different ages and backgrounds so that a large number of tourists visit
the place.
The tourism industry, one of the world’s largest industries, is ingrained
into the lives of people around the globe. The industry providing services
to the tourists is growing at a rapid pace and has become a global
phenomenon. This industry is dynamic and constantly changing, with
various factors contributing to its growth, which we will read about in
the chapters which follow. The next chapter discusses the evolution of
tourism and events in history which have left their mark on this enormous
industry.

SUMMARY
The tourism industry, which is one of the largest industries in the world, is
directly or indirectly providing employment to millions of people around the
globe. It is made up of many sub-industnes such as the transport, hospitality,
and entertainment. This vast industry is growing at a rapid pace.
Today tourism has reached the common man and destinations are being
developed, to provide accommodation, amenities, attractions, and transport
which are affordable, making tourism no longer the domain of the rich and
famous, but forming a way of life for people all over the world. Tourism has
been given the status of an industry. The main constituents of this industry
work together for the mutual benefit of both the tourist and the industry. The
secondary constituents such as banks, shops, handicrafts, and local transport,
also provide essential goods and services to tourists and benefit from tourism
activities at the destination.
Tourism can be best studied and understood from the systems approach as it
encompasses many disciplines and is influenced by the external environment in
which it operates. The successful development of a destination requires easy
accessibility, clean accommodation, basic amenities, special attractions and
ample activities for visitors from different age groups and socioeconomic
backgrounds, besides being affordable in terms of time and money. This industry
has tremendous growth potential and is growing by leaps and bounds day by
day.
18 Tourism Operations and Management

KEY TERMS
Domestic tourism Travel undertaken within one’s own country.
Inbound tourism Incoming tourists or tourists entering a country.
Itinerary A travel plan or schedule which includes all travel details such as
date, time, mode of transport, accommodation, etc. for travellers.
Leisure It is defined as using one’s free or unoccupied time in a relaxed manner
for entertainment or rest.
Mass tourism Transportation of a large number of people in a short time to
places of leisure interest made possible by advances in technology (mass
travel).
Outbound tourism It refers to outgoing tourists or tourists leaving their country
of origin to travel to another country.
Recreation It means spending time to refresh and revitalize the body and mind
by indulging in activities which have no monetary benefits.
Tourism industry A vast industry made up of many industries and organizations
that work with one another to provide goods and services to meet the special
needs of tourists.
Tourist product The tourist product is the reason of travel to the destination
and may be defined as the total experience of travel and other attractions at
the destination.

CONCEPT REVIEW QUESTIONS

1.Briefly define the following:
(a) Hospitality industry
(b) Tourism
(c) Destination
2. Discuss the main constituents of the tourism industry.
3. List the five ‘A’s which are needed at a destination if tourism is to be
promoted.
4. Why are tourism studies called multi-disciplinary?

CRITICAL THINKING QUESTION

Think of any holiday you have enjoyed in the past. Keeping Leiper’s tourism
system model in mind, identify the five elements of the tourism system in
relation to your holiday.
 Introduction to Travel and Tourism 19

PROJECT/ASSIGNMENT
Prepare a collage on the present tourism-related activities and events in your
city.

REFERENCES
Andrews, S. 2007, Introduction to Tourism and Hospitality Industry, Tata McGraw-
Hill Co Ltd, New Delhi.
Foster, D.L. 1994, First class: An Introduction to Travel and Tourism, Glencoe
Macmillan/McGraw Hill, Singapore.
Gartner, W.C. 1996, Tourism Development: Principles, Processes and Policies,
Van Nostrand Reinhold, USA.
George, R. 2007, Managing tourism in South Africa, Oxford University Press
Southern Africa, Cape Town.
IGNOU 1994, School of Social Sciences, Foundation Course in Tourism.
Jafari, J. 1977, ‘Editor's page’, Annals of Tourism Research, vol. 4.
Keyser, H. 2002, Jourism Development, Oxford University Press Southern Africa,
Cape Town.
Leiper, N. 1979, ‘The Framework of Tourism’, Annals of Tourism Research, vol. 6,
no. 4.
The World Book Encyclopedia, vol. 19, World Book Inc, A Scott Fetzer Company,
USA.
http://en.wikipedia.org/wiki/Industrial_revolution, accessed on 31 May 2008.
http://en.wikipedia.org/wiki/Tourism, accessed on 14 November 2008.
www.UNWTO.org, accessed on 31 August 2008.
www.wttc.org, accessed on 31 August 2008.
www.world-tourism.org, accessed on 31 August 2008.
 History of Travel
and Tourism

Learning Objectives
After reading this chapter you should be able to:
understand the evolution of tourism
e trace the history of mankind
© appreciate the events in history which contributed to the development of tourism
e describe the evolution of international tourism
e identify important milestones in the development of tourism

INTRODUCTION

n the previous chapter we were introduced to the subject ‘tourism

management’ and read about what all it encompasses. Having
understood the enormity of the tourism industry and its diversified
sectors, this chapter focuses on evolution of tourism down the ages and
how tourism in the past differs from modern-day tourism. The history of
tourism begins with the history of travel, of man travelling on foot, in
search of food, or for shelter from the forces of nature or from wild beasts.
 History of Travel and Tourism 21

The history of travel and tourism helps us in understanding how

developments in the past have had an influence on the present-day
tourism. Furthermore, knowledge of how tourism is developing in the
present time will help us plan in a better manner for the future.
For the early man, the term ‘travel’ was not associated with the words
pleasure or leisure as it is today. The word travel has originated from the
word ‘travail’ meaning painful or laborious. The word ‘holidays’ can be
said to have its origin from ‘holy days’, or a time to relax and rejoice, to
be spent in celebrating festivals in the honour of our guardian saints.
People have always moved from one place to another for a variety of
reasons. Early travel was undertaken mainly for the purpose of trade,
waging wars and conquering new lands, or for religious reasons. The
pilgrimage or religious travel to perform rituals to appeal God, deities,
or other sacred powers for wish fulfillment or to purify the body, had
been seen in Europe after Jesus Christ was crucified. Churches maintained
hospices, monasteries, and hostels for pilgrims. Pilgrims visited distant
shrines for wish fulfillment or for material or spiritual betterment.
Pilgrimages and travel for treatment at natural springs or Spas was
gaining popularity in the mid-seventeenth century when doctors
advocated the healing powers of mineral water. They soon became
important meeting places for the gentry or elite.
Travel for leisure dawned from the nineteenth century and tourism as
a profession was born in the beginning of that century. The business of
tourism can be traced back to the transport revolution that occurred
around the same time as World War II. In its early stage, travel was a
luxury available to the privileged class as transport costs were very high.
Today, tourism is a full-fledged industry, very much within the reach of
the common man.
The evolution of tourism in this chapter is a brief outline of the
transition from travel for survival to modern-day tourism. It includes a
brief account of the history of the human race, highlighting events which
have created an impact on tourism.

DEVELOPMENTS IN THE HISTORY OF TOURISM

Throughout history, people have exhibited an unquenchable need to
travel. There has always been a reason to change one’s place and pace;
be it for survival, trade, conquests, or curiosity. Inscriptions on monuments
and coins and paintings on rocks show that early man undertook travel
22 Tourism Operations and Management

that was difficult and hazardous. People travelled on foot in search of

food and shelter and moved on once the food supplies were exhausted.
They carried their belongings on the head and back. Heavier items were
strapped to a pole and carried by two people or dragged on primitive
sledges. But people moved on braving the forces of nature and natural
calamities which came their way.
Very little is known about the prehistoric period between 40,000 BC
to 10,000 BC as no written records exist. The earliest archaeological
records depict the westward movements of the Cro-Magnon man into
Europe. Cave paintings around 20,000 BC in Lascaux are evidence of
the existence of the Cro-Magnon man in modern-day France. Apart from
travelling in search of food or to save one’s skin, wanderlust could also
have been one of the reasons for undertaking travel by the prehistoric
man.

Early Civilizations
Civilizations developed around 10,000 BC to 8000 BC in the Neolithic
period when people began living together and developed settlements.
Instead of constantly moving about in search of food, man started using
his intelligence and took control over nature. He developed farming
techniques such as growing his own food and undertook the domestica-
tion of animals. Dogs were domesticated as early as 8400 BC and were
used by native Indians in the USA to hunt for food and pull sledges.
Agriculture developed in 8000 BC in the Middle East leading to the
formation of settlements. Agricultural implements and tools for hunting
were designed. Civilizations were also developing simultaneously in India,
China, and Egypt. Since man did not have to wander in search of food,
he could use his time to develop other skills. Trade began amongst various
settlements and the need for better transportation ~vas felt. Travel on
horseback began and was popular with the military movement to acquire
land and conquer tribes.
By 5000 BC, water transportation in the form of rafts and canoes
propelled by poles or paddles were developed for use in rivers, lakes,
and streams (see Fig. 2.1). The development of the wheel around 3500-
3000 BC by the Sumerians, ancient inhabitants of southern Mesopotamia,
was a major landmark in the travel industry. Carts driven by oxen were
used to carry goods and people. Later around 1000-500 BC, roads were
constructed for chariots, wagons, and carriages. The roads and carriages
helped both in trade and war. In 3200 BC, Egyptians developed sailboats,
 History of Travel and Tourism 23

Fig. 2.1 A canoe

which were used for trade, conquests, and exploration. The first merchant
fleets were developed by the Phoenicians in 1000 BC, which sailed along
the coastline for trade with Spain. Sails and oars were used for navigation.
The advent o' civilization created a basis for tourism in the following
ways:
¢ The concept of the word ‘home’ emerged in the communities in a
particular area where people lived together.
e It was in these communities that culture was evolved. Different
communities across the globe exhibited cultural diversity.
¢ Craftsmen produced goods which
were traded.
e Invention of the wheel around 3500-
3000 BC paved the way for future
transportation of goods and people.
e Bricks were used for construction
work. The Sphinx and all major
pyramids were built between 2800
BC and 2175 BC by the Egyptian Fig. 2.2 The Sphinx
Pharaohs (see Fig. 2.2).
In Asia, India was the most developed region and the Indus Valley
Civilization was the earliest civilization recorded in 3000 BC, during the
Iron Age, followed by the Vedic period in 2000 BC (see Fig. 2.3). The
excavations of Mohenjo-Daro in Sind and Harappa in Punjab are ample
evidence of that era. Remains of modern cities with well-developed
houses, streets, drainage systems, common baths and large courtyards
have been unearthed. Seals of trade in terracotta have been found in
Mohenjo-Daro which is evidence that people indulged in trade. Merchants
24 Tourism Operations and Management

as

Fig. 2.3 The Indus Valley Civilization

travelled in groups in caravans consisting of carriages drawn by horses

and oxen to protect themselves from wild beasts and bandits.
The creation and adoption of Vedic scriptures such as the great epic
Mahabharata, and establishment of temples teaching Vedic scriptures
attracted many students showing evidence of religious travel during the
early Vedic period. The first crude grand trunk routes were created, and
travel for military purpose and administration in addition to trade and
commerce was undertaken.
The advent of civilization created one of the most important reasons
for travel and it was during this period that the first signs of a tourism
industry were visible. Inns appeared at prominent centres of trade to
offer hospitality to the weary trader. After gaining control over nature
and forming settlements, the desire to acquire assets and exert control
over others developed. The worth of a civilization was measured in terms
of its power to control others.

The Imperial Era

Tourism was established during the early empires of Egypt, Persia, Rome,
China, and India. Road networks were laid for travellers, transport was
made available, accommodation was provided for the traveller and the
beast of burden, wells were dug for water, and security pickets were set
up. Apart from travelling for trade purpose, the aristocrats travelled in
style carrying provisions, water, animals, luggage, and servants along
 History of Travel and Tourism 25

with them to enjoy the comforts of their home away from home. Folk-
tales tell us about the stranger who was known to bring prosperity and
the Asian tradition of courtesy was offered to the traveller who was
considered a guest.
It may be said that the Western society
has its roots in the civilizations of Greece
and Rome. Although other civilizations
were developing simultaneously, the
written records of the Greeks have been
used as the foundation for the scientific
theories used today. The Roman empire
took over Sicily in 241 BC and thereafter
witnessed the greatest period of growth
while Julius Caesar was in power in the
last 100 years BC (see Fig. 2.4). Road
systems with bridges and aqueducts,
built for military purposes, became an
excellent tourism infrastructure for the Fig. 2.4 Julius Caesar
Romans and were used for trade and
pleasure tourism. The Romans were the first to pave roads made of stone
and gravel of 80,000-kilometre length from 100 BC to 400 AD, while
paved roads appeared in Europe only after 1700 AD.
In 400 BC, the Greeks expanded the merchant fleets and developed
two-mast vessels with four sails (see Fig. 2.5). Three hundred ports were
formed for trade along the
Mediterranean, the Black,
and the Caspian Seas.
Barges were developed to
transport goods. Speed of
travel over the land and sea
was slow and expensive as
food and shelter was not
available en route. With the
advent of road networks,
resting places and food was
provided along these routes.
Fig. 2.5 Merchant fleets
Wealthy Greeks and
Romans travelled to Athens, Rome, and other cities to participate in or
observe sporting competitions and performing arts events. Some travelled
to the Oracles to pay homage to the numerous gods.
26 Tourism Operations and Management

Travellers were attracted all over the world to participate in festivals

held in honour of the Gods. The Olympic Games were held in Olympia,
Greece, once in four years in honour of God Zeus. Athletes from all over
the vast Greek empire participated in this mega event. The concept of
guide services has its origin in Greece. Native guides were hired to escort
tourists for sightseeing. Food, gambling, and dancing to entertain travellers
have been part of the Greek hospitality.
The Roman empire was prosperous and pleasure loving. Inns were
built and the business of renting various modes of transport, such as
horses and carts, began to pick up. Tourism developed further during the
period. Spectator sports such as gladiatorial contests were organized to
overcome boredom (see Fig. 2.6). Pilgrimage, sightseeing, and health
tourism in the form of bathing in mineral springs were popular activities.
During this period, travel had a new dimension and was recognized as a
meaningful social activity. The importance of leisure was recognized and
a mention has been made in the writings of Plato and Aristotle.
Apart from the Greek and Roman civilizations, other sophisticated
civilizations were being established which have contributed significantly
towards modern tourism. The Pacific Islands were being explored and
Mayan civilizations were spreading throughout Central America and
Mexico. Extensive road networks were being built by the Mayans to

Fig. 2.6 Gladiators battle to death in an arena in Ancient Rome

to entertain spectators
 History of Travel and Tourism 27

ES
e
po

Fig. 2.7. The Great Wall of China

connect their centres of civilizations. The famous ruins of Chichen Itza

and Tikal have observatories, temples, and sports fields, and attract
millions of tourists. Even today, tourists throng to the temple of Chichen
Itza during the vernal and autumnal equinox to observe a snake deity
descend from the top of the temple and connect with its head at the base.
These centres indicate that science, religion, and leisure were important
aspects of Mayan life. Unlike the Western civilizations who believed in
extending their territories by conquering land, the Chinese civilization
preferred to live within a set space and constructed the Great Wall of
China as a defensive structure to keep away foreign invaders. The
construction work for the Great Wall began in 214 BC (see Fig. 2.7).
India’s wealth and rich treasures were exposed to the Western world
only after the Persian and Macedonian invasions in India. Apart from
travel for military purposes and acquiring new territories, travel for trade
and commerce expanded and new geographic routes were developed.
The Mauryan Emperor Ashoka was responsible for the spurt in
development of formal travel facilities. Emperor Ashoka’s kingdom
extended from Nepal in the north, to Tamil Nadu in the south and from
Kabul in the west to Bangladesh in the east. After his great conquests
and the sight of bloodshed, he left the administration of his vast kingdom
to his officers and adopted the Buddhist teachings. He established schools,
28 Tourism Operations and Management

hospitals, and monasteries which also served the travellers. The grand
trunk routes were improved further, trees were planted along roadways,
and Ashoka pillars, with his doctrine etched on them, were erected. Rest
houses were constructed along the grand trunk routes for the comfort of
the travellers.
In India, the royalty travelled for pleasure
and developed summer retreats away from the
heat and dust. Milestones or kos minars speak
about the travel culture during Mughal rule.
Caravanserais or walled rest houses were
developed as trade tours became popular.
Akbar established schools and colleges with
boarding facilities, known as madrasas, to
provide education to children (see Fig. 2.8).
Education was another major reason for travel
during this period. There was an increase in
Fig. 2.8 Mughal Emperor
international trade and additional ports were
Akbar
developed. Before the Industrial Revolution,
travel for leisure was the privilege of the upper class of society only.
Leisure travel, which is undertaken by the masses today, was unknown
to the working class.

The Silk Route

The Silk Road or the Silk Route was a major trade route for caravans
carrying silk and other luxury items from China to India and the Middle
East which began as early as 2000 BC, and flourished during the Kushan
Empire from 50 AD to 200 AD (see Fig. 2.9). The Kushan emperors
opened and protected the silk road. It is the most important link in the
movement of people from east to west to exchange silk, muslin, porcelain,
tea, rice, and spices, or for the purpose of trade. Silk, spices, and ointments
left Indian ports in ships bound for the Roman empire. Navigation was
done by looking at the stars or the course of a stream or river. Rome sent
back gold coins, Greek wine, and harem girls. Ideas and customs were
exchanged along these routes between the people of central Asia, China,
India, and Persia. This trading gave the travellers an experience of present
tourism, i.e. seeing new places, cultures, interacting with people,
exchanging ideas, and learning new processes. In spite of the hazardous
route, travel was undertaken and profits were high.
 History of Travel and Tourism 29
poeta | SNS ‘

BPA ROOR A

WE ROK sain

Fig. 2.9 The old Silk Route ran over 9700 kilometres, connecting China
with Rome and pre-Christian Europe

It was only in 1400-1500 AD that navigation improved and longer

voyages were undertaken, with the development of ships with rudder,
triangular sails, and mariners’ compass. Canals were built in the late
eighteenth century to link the major manufacturing centres so that bulk
material could be easily transported. A single canal horse could pull a
load a dozen times larger than a cart at a faster pace and by 1820 a
national network of canals was in existence. Water transportation was
eventually taken over by the railways from 1840 onwards.

European Renaissance
The Renaissance was a great cultural movement that began in Italy in
early 1300 AD and spread to England, France, Germany, Spain, and
other countries in the late 1400s and ended about 1600 AD. During the
Middle Ages, the Church was a patron of arts and learning and believed
that people’s chief responsibility was to pray to God and save their souls.
Any activity considered unconventional or unorthodox was suppressed.
Painters and sculptors during this period tried to give their works a spiritual
quality and painted stiff and unrealistic human figures which represented
religious ideas. The Renaissance or rebirth was a period of change and
revival of Greek and Roman cultures. Many European scholars and artists,
especially those in Italy, studied the learning and art of ancient Greece
30 Tourism Operations and Management

and Rome. Renaissance artists wanted to portray people and nature

realistically and stressed on the beauty of the human body. The famous
works of art of Italian artists Leonardo da Vinci, Michelangelo and
Raphael inspired the Grand Tour, and even today, these artistic
accomplishments attract tourists to Europe.

The Grand Tour

The Grand Tour was a tour of the principal cities and places of interest in
Europe, the focus of the tour being cultural enrichment. It was said to be
an essential part of the education of young men of good birth and fortune
undertaken primarily for education and pleasure. They were accompanied
by a mentor and a guardian and were expected not only to observe the
arts, science, music, literature, and culture of Europe but to apply the
knowledge gained, on their return. The purpose of the tour eventually
evolved from one of learning for the young to one of sensual pleasures
for all ages. Diplomats, scholars, and businessmen undertook the grand
tour. The duration of the tour was generally three years.
The origins of the modern tourism industry are believed to have begun
with the grand tour. Lodging facilities and hotels made their appearance
during this period. Superior hotels and services were provided in some
of the major cities of Europe such as Paris, Milan, and Rome.
In 1640 AD, horse-drawn coaches were used to transport people and
goods from one city to another over long distances. The stagecoach was
a popular mode of road travel amongst the elite. As the journey was
completed in stages, the wagon was called a stagecoach (see Fig. 2.10).
Teams of pack horses were used to transport heavy goods while stage-
coaches carried the rich. In 1720, turnpike trusts were set up to charge
toll to maintain the roads which were in a poor state.

Fig. 2.10 Stagecoach

 History of Travel and Tourism 31

The grand tour for the English elite reached its peak in 1700 and ended
after the French Revolution in 1789 and the wars in the 1800s.
Modern-day grand tours are now undertaken after the last year of
schooling and are an enriching experience of exploring the way of life
and prevalent cultures of other countries. They are exclusively educational
tours.

The Industrial Era

The only source of energy in the pre-industrial era was human or animal
power, which was replaced by steam power in the industrial era, created
by burning coal as a source of power.
The Industrial Revolution, which occurred in the late eighteenth and
early nineteenth century, was a period when major changes occurred in
agriculture, manufacturing, and transportation. It started in Britain and
subsequently spread throughout the world. The manual labour-based
economy began to be replaced by one dominated by machinery. One of
the first products of the Industrial Revolution to affect tourism was the
development of the steam engine. Steam engines were used in the
industries for manufacturing and also for transportation. Steam-powered
ships and railways hastened the speed of travel. The internal combustion
engine and electrical power generation were developed. People migrated
to towns to work in factories. Rail locomotive with a steam engine was
used for transport of passengers and goods in 1825-30 AD (see Fig. 2.11).
Rail travel initiated the first form of mass travel, as a large number of
people could be moved around at a relatively low cost. In 1841, Thomas
Cook, the pioneer travel agent organized a special train to carry 570
passengers from Leicester to Loughborough to attend a meeting (see
Fig. 2.12). In 1843, he took nearly 3000 school children on a trip from

Fig. 2.11 Steam engine Fig. 2.12 Thomas Cook

32 Tourism Operations and Management

Leicester to Derby. He introduced the concept of chartered transport

and package tours which resulted in a spurt in pleasure travel. People
began to travel to visit pleasure spots like beaches and spas.

Advent of Technology
Automobiles with internal combustion engines were developed in 1860
AD. The invention of the automobile and their mass production in 1903
is regarded as a technological advance which allowed people to move at
their will. It is the most widely used mode of transportation in terms of
passenger miles as compared to any other form of transportation. Henry
Ford launched the people’s car, the Ford model ‘T’ in 1908 (see Fig.
2.13). Also known as the ‘tin lizzie’, it was comparatively low-priced,
economical, and changed the face of travel worldwide (see Fig. 2.14).
An extensive network of roads was laid and food and lodging facilities
were developed on main routes. The present day motels and hotels have
evolved from these early tourist courts of 1920s—30s.
The Industrial Revolution was a great turning point in the history of
the world. It created a working class and most workers lived and worked
under miserable conditions. Although the Industrial Revolution mobilized
people to work in cities, it was the improvement in work conditions which
gave people the time and money to travel. Working hours reduced from
70 hours a week to 40 hours a week; wages were increased with the Ford
Motor Company paying USD 5 a day which was one of the highest
wages paid to workers; weekly offs were declared, and the Labour Act
was enforced. The greater disposable incomes led to the formation of a
middle class in society. It is this middle class who constitute the majority
of tourists today.

Fig. 2.13 Henry Ford Fig. 2.14 The Ford-T model

 History of Travel and Tourism 33

Before World War I, the privileged class of society led an enviable

lifestyle with ample servants, comforts, and plenty of leisure time. The
opulence and grandeur of the luxury liners which crossed the Atlantic in
those days, was unmatched in terms of services and comforts offered to
passengers and even surpassed those services offered by many of the
finest resorts of today. The Quaker City journey was the first transatlantic
pleasure party voyage. Many notable
personalities including Mark Twain
embarked on this voyage from New York in
1867 (see Fig. 2.15). He later published his
experiences in The Innocents Abroad. Twain’s
story of the adventure aboard, gave a boost
to transatlantic steamship travel and shows
us the importance of familiarization tours and
travel writers in promoting tourism (refer to
Chapter 12). Transatlantic cruises received a
setback when the luxury ocean liner, Titanic,
struck an iceberg in the North Atlantic Ocean
and sank in 1912, with only 711 of its 2224 Fig. 2.15 Mark Twain
passengers surviving the tragedy.
Air travel has its origin with the use of the hot-air balloon in 1783 by
the French. The Wright brothers, Orville and Wilbur, succeeded in sailing
their prototype airplane in December 1903 near Kitty Hawk, North
Carolina (see Fig. 2.16). The plane flew 120 feet at about 48 kilometres
per hour. Air travel became commercial in 1919, shortly after World War
I offering daily flights between London and Paris.

Fig. 2.16 The world’s first successful airplane—

The Wright Brothers’ ‘Flyer’
34 Tourism Operations and Management

Impact of the World Wars

The rivalry over trade and colonial possessions, and the assassination of
Archduke Franz Ferdinand of Austria in June 1914, triggered World War
I. The war resulted in massive destruction of human life and property,
while all resources were used for producing materials required for the
war. This period witnessed technological advancements in radio
communication, land, and air transport, which were later made use of by
the developing tourism industry.
The end of World War I ushered in prosperity throughout Europe
and the USA. This period is called the ‘roaring twenties’ as wealth and
leisure time was in abundance. Pleasure travel and luxury liners regained
popularity, there were marked improvements in automobile
transportation and infrastructure, and camping grounds with lodging
facilities became popular. Resorts were developed along beaches,
mountains, and lake areas near major cities and people had the leisure
time and money to indulge in pleasure tourism.
In 1930, the collapse of the financial markets brought the tourism of
the roaring twenties to an abrupt halt as the Great Depression set in.
People migrated in search of employment, leaving families and friends
behind. This resulted in travel to return to ones roots and visit friends
and relatives in the near future.
While measures to restore the economy were still in process, World
War II was declared in 1939. The six year period of World War II
witnessed a sharp rise in technology with the beginning of the nuclear
age and the detonation of the nuclear bomb at Hiroshima in 1945. World
War II ended the Great Depression throughout the Western world. The
industry expanded to produce weapons for war and continued expansion
even after the war shifting to production of consumer goods. This marked
the beginning of the consumer age. The growing industrialism and
prosperity led to mass tourism, making the USA the largest producer of
tourists.

TOURISM IN INDIA—POST INDEPENDENCE

In India, tourism got further impetus during the British rule. During the
British Raj, hill stations and beaches were developed as destinations for
the elite. All these destinations were connected by a railway network
and circuit houses and dak bungalows were constructed to provide high
 History of Travel and Tourism 35

quality accommodation,
suitable for the British
officers (see Fig. 2.17).
The catering and
entertainment facilities
provided there were of
the highest standards.
Recreation facilities such
as cricket, golf, clubs,
and libraries were also
provided at these fig. 2.17 A circuit house
destinations.
When India became independent in 1947, the facilities which were
already in existence were used for domestic as well as international
tourists. They were easily accessible because of the vast railway network
introduced by the British, making tourism affordable to the masses. The
rich legacy of British hotels in India was taken over by enterprising
hoteliers such as the Oberoi and the Taj Group of Hotels who expanded
them into chain hotels. In the early 1960s the India Tourism Development
Corporation (ITDC) was established to provide western comforts to
international visitors at major tourist attractions in the country. Tourism
was further promoted by establishing tourist offices abroad and by forming
a separate tourism department. The private sector was encouraged to
develop high-class infrastructure and superstructure to attract high-
spending tourists. India’s tourism policy was first formed in the late 1960s.
In the 1970s tourism was separated from the Ministry of Civil Aviation,
and state tourism development corporations (STD Cs) were set up in every
state. Tourism organizations had been formed to guide tourism industry
professionals. In 1980, institutes to train tourism professionals had been
set up and are still being promoted. Recently since 2006, the Ministry of
Tourism is conducting short programmes under the scheme—
Capacity Building for Service Providers (CBSP) in various hotel
management institutes throughout the country to train tourism service
providers.

MODERN TOURISM
Early air travel was not affordable to the masses and was for the rich and
famous only. Cost of air transportation and travel time was reduced with
36 Tourism Operations
OO peta ONS aandCoe ee eent
Manageme ea a

Fig. 2.18 A modern airplane

the use of jet engines and larger aircrafts in 1958. The airline industry
has steadily grown from a single-engine airplane to the first jumbo jet
Boeing 747 in 1970 and the first supersonic passenger plane in which
passengers enjoyed safe, fast, and comfortable travel and a variety of in-
flight services. Air travel became commercial in 1919. The late 1950s
was the beginning of space travel. Air travel has become affordable to
the masses and with the numerous international flights available, the
international tourist arrivals have shown a steady increase (see Fig. 2.18).
Tourism, both domestic and international, is growing at a rapid pace
in India. The air-transport network is expanding with new players entering
the competition and airports with modern facilities are being constructed
in major cities. The development of labour unions and government
legislations brought about a reduction in work hours and paid vacations
which prompted people to travel. Though the average work hours are
once again on the rise, the increase in disposable income, and the
realization of the need to de-stress, has people planning weekend getaways
at the first opportunity.
Table 2.1 sums up the important milestones in the history of travel
and tourism.
 History of Travel and Tourism 37

Table 2.1

Year Milestones in travel

10,000 BC People travelled on foot, carried their own load and developed settlements
5000 BC Rafts and canoes propelled by paddles used in rivers, lakes, and streams
5000 BC Donkeys and oxen used for transporting goods over rough terrains
3500 BC First wheeled vehicles built by the Mesopotamians (Mesopotamia is now a part of
modern Iraq)
3200 BC First sailboats invented by the Egyptians
1000-400 BC First merchant fleets developed
776 BC First Olympic games held in Greece; beginning of organized sports tourism
100 BC-400 AD The first paved road network was built by the Romans throughout the Roman empire
100 AD Religious travel; beginning of pilgrimages
1215 King John signs Magna-Carta; foundation for justice system, includes right to travel
1400-1500 Long voyages by ships with a rudder, sail, and mariners’ compass
1492 Columbus discovers West Indies, route to America established
1640 Horse-drawn stagecoaches used to transport goods and people
1700 Industrial Revolution
1758 Cox & Kings Tour Company formed
1783 Hot-air balloon successfully used in France
1800-07 Steam engines used in steamboats
1804 Hotels, guest houses developed at seaside resorts
1825 Rail locomotive used to transport goods and passengers
1830 First passenger train introduced
1838 Peninsular & Oriental Steam Navigation Company (P&0O) introduced long distance sea
voyages to North America and the Far East
1841 Thomas Cook founds the first travel agency
1869 Hotels developed at railway stations
1870 Telegrams introduced
1890 Gasoline engines with automobile bodies introduced
1891 American Express introduces travellers’ cheques and money orders
1900s Luxury liners, travel for the wealthy
1903 Mass production of automobiles
1903 Wright Brothers develop the aeroplane
1912 Titanic sinks; setback in luxury ocean travel
1914 Passports introduced
1919 Air travel begins between London and Paris; first international flight
1920 Automobiles become the main mode of transport in USA
1950 International air travel open to public; the first commercialjet airlines service
a951 The first motor inn or motel constructed outside Memphis, Tennessee
1958 Boeing 707 introduced
1960 India Tourism Development Corporation (ITDC) established
1970 Licencing of tour operators
1970 Jumbo jets with more travellers per plane and lower fares, major growth in international
air travel
eS Concorde, the first supersonic passenger airliner, begins service between Europe and
the USA
38 Tourism Operations and Management

The modern-day tourist has thus evolved from the explorer, the farmer,
the merchant, the pilgrim, the conqueror, the student, the worker, and
the cure seeker. Knowledge about the development of tourism over the
ages is essential for tourism professionals to understand and plan tourism
for the future. The chapter which follows will focus on the forms and
types of present-day tourism around the globe.

SUMMARY
The present tourism industry is an outcome of various historical events which
occurred worldwide. Travel developed from the need to survive, the desire to
expand trade, and the quest to conquer new lands. The driving forces behind
the development of tourism were an innate curiosity about the world and a
desire to escape from the routine. Throughout history, people have shown an
unquenchable thirst to travel. People travelled on foot in search of food and
shelter and moved on when food supplies were exhausted. Various modes of
transportation developed gradually to travel on land, on water, and by air.
Tourism has thus evolved from the early man travelling for survival to the modern
man travelling for business or leisure, in comfort and safety.

KEY TERMS
Automobile A passenger car, usually four wheeled, with an internal combustion
engine meant for travelling on roads.
Canal An artificial waterway for transportation.
Caravan A large covered van or a trailer with facilities for passengers to live in.
Also called a recreational vehicle.
Caravanserai A kind of inn with a large central court where caravans stop for
the night.
FAM (familiarization) tour A free or reduced-rate trip offered to travel
professionals to experience first-hand what a destination, attraction, or
supplier has to offer.
French Revolution The revolution of the French people against the monarchy
in France, 1789-99.
Grand Tour A tour of the European continent formerly taken by young men of
the British aristocracy to complete their education.
Hospices A shelter for travellers, maintained by monks.
Industrial Revolution The change in social and economic organization resulting
from replacement of hand tools with machines and power tools in
manufacturing units and large scale production of goods.
 History of Travel and Tourism 39

Luxury Liner A passenger ship offering superior comfort likened to a ‘Resort at

Sea’ mainly designed for affluent passengers.
Passenger mile It means one passenger carried one mile. It is calculated as a
product of number of vehicle miles travelled and number of passengers
transported.
Renaissance The great revival of art, learning, and literature in Europe from
the fourteenth to sixteenth century which began in Italy and gradually spread
to other countries, marking the transition from the medieval period to the
modern world.
Thomas Cook Pioneer of modern mass tourism who organized the first package
tour for a group of 570 people from Leicester to a rally in Loughborough 18
kilometres away.
Transatlantic Crossing or spanning the Atlantic Ocean or on the other side of
the Atlantic.

CONCEPT REVIEW QUESTIONS

1. Discuss the significant developments which contributed towards tourism
during the following periods:
(a) World Wars I and II
(b) European Renaissance
(c) The Imperial Era
2. Inthe context of tourism, explain the following terms:
(a) Tin lizzie
(b) Roaring twenties
(c) The Great Depression
3. Briefly explain how the Industrial Revolution has influenced the growth of
the tourism industry.
4. Write short notes on:
(a) The Silk Route
(b) Industrial Era
(c) The Grand Tour
5. Which factors, do you feel, have had a major impact on the growth of
tourism?

CRITICAL THINKING QUESTIONS

1. Itis said that the British left behind a strong foundation for setting up a
tourism industry in India. Justify this statement?
2. Explain how the various modes of transportation developed from the
beginning of the human race.
40 Tourism Operations and Management

PROJECT/ASSIGNMENT
Collect pictures of ancient tourist attractions and find out how many still exist
as attractions today. Prepare a scrap book and give a brief write-up on each.

REFERENCES
Andrew, S. 2007, Introduction to Tourism and Hospitality Industry, Tata McGraw-
Hill , New Delhi. .
Bhatia, A.K. 2001, International Tourism Management, Sterling Publishers Pvt
Ltd, New Delhi.
Gartner, W.C. 1996, Tourism Development Principles, Processes, and Policies, Van
Nostrand Reinhold, USA.
George, R. 2007, Managing Toursm in South Africa, Oxford University Press
Southern Africa, Cape Town.
Ghosh, B. 2000, Tourism and Travel Management, Vikas Publishing House Pvt
Ltd, New Delhi.
Guralink, D.B. 1972, New World Dictionary of the Amencan Language, Second
College Edition, Simon and Schuster, New York.
Kaul, R.N. 1985, Dynamics of tourism: A Trilogy Vol. III Transportation and
Marketing. Sterling Publishers Pvt. Ltd, New Delhi.
Keyser, H. 2002,7Jourism Development, Oxford University Press Southern Africa,
Cape Town.
Seth, P.N. and S.S. Bhat 1993, An Introduction to Travel and Tourism, Sterling
Publishers Pvt Ltd, New Delhi.
The World Book Encyclopedia, 1991, Vol. 1, 16, World Book Inc, A Scott Fetzer
Company, USA.
 Types of Tourism

Learning Objectives
After reading this chapter, you should be able to:
appreciate the pace of growth of the tourism industry
understand the different travel motivators
know the various types of tourism
differentiate between needs of the leisure traveller and business traveller
describe the various types of tourism available to the tourist
appreciate the need to develop alternative forms of tourism

INTRODUCTION
\ he last decade has witnessed an increase in tourism activities.
Globalization, modernization, increase in disposable
4». income, and awareness created by the media have contributed
to ae growth of the tourism industry. Due to the growing awareness and
tourism promotional activities by various governments, large numbers
of people are now visiting various piaces. The movement of people is
not only within their own country but also to neighbouring and distant
countries. The motivation behind travel varies widely from person to
person depending on the nature of the tourists.
42 Tourism Operations and Management

Tourism presently is recognized worldwide as an industry due to the

vast economic benefits it delivers to the host country. The two major
economic benefits of tourism are earning foreign exchange and generation
of employment at all levels in the society.
Most professionals, especially in the information technology (IT) field,
have a hectic schedule and often feel the need to take a break. They may
go for weekend tours, short tours for a few days or a week, or longer
tours during vacations. Some examples of specially designed tour
programmes are educational tours for students, senior citizens tours, and
tours for women only. For example, Kesari Travels, Pune has designed a
special package tour called ‘My Fair Lady’ for women only.
For many people work is not the sole aim in life and this has definitely
encouraged tourism. Tourism helps people to get a better understanding
of social and cultural values and helps create a better life and a better
society.

PURPOSE OF TOURISM
Why do people travel? The answer to this question varies according to
the psychological and sociological make-up of the tourist and his/her
cultural background.
Tourism has witnessed considerable changes in the twenty first century
from its previous motivations of travel, which were mainly visiting places
of religious interest or travel for trade purposes. In the developed countries
like Europe and the USA, tourism is not only a part of the lifestyle of the
upper income group or high-class society any longer but has come within
the reach of industrial workers as well. In American parlance the 4 ‘S’
formula—Sun, Sea, Sand, and Sex is what motivates a tourist to travel.
Bathing and water sports at the seashore, warm sunny beaches with ample
sunshine and clean sand is what tourists look forward to. A pleasant
escape from the temperate to the tropical climate to acquire a sun tan
which is more fashionable today than a fair, pale complexion is one of
the reasons for travel.
The tourism industry will not survive if people are not motivated to
travel. The basic question of motivation as applicable in different fields
can similarly be applied to travel. Why do some people travel and not
others? Why does only one family member go on a tour? Why are a
larger number of people in a particular country or region engaged in
tourism activity than in another country? Many studies related to the
 Types of Tourism 43

psychology and motivations for tourism have been conducted. These

studies show that tourists normally travel for more than one reason.

TRAVEL MOTIVATORS
‘Travel motivators can be defined as those factors that create a desire in
people to travel. Motivators are the internal psychological influences
affecting individual choices. McIntosh and Goeldern have mentioned
four categories of motivators. These are as follows:
Physical motivators ‘These are related to physical rest and relaxation,
sport activities, and health purposes.
Cultural motivators These are identified by the desire to know and learn
about other cultures, lifestyles, folk art, music, dance, etc.
Interpersonal motivators These are related to a desire to meet new
people, visit friends or relatives, seek new experiences. People undertake
travel simply to escape from their mundane day-to-day routine.
Status and prestige motivators These are identified with one’s personal
esteem and status symbol. These also include travel for business,
education, or pursuit of hobbies.

Relaxation
and
refreshment of
body and mind
Professional
and Health
business |

Travel
— Motivators ig

Spiritual Pleasure

Curiosity
Interpersonal and
reasons Miro

Fig 3.1 Travel motivators

44 Tourism Operations and Management

Robinson’s Classification
Robinson further classified the above four categories of travel motivations
into seven groups (see Fig. 3.1). According to Robinson, the main motives
for travel are as follows:
Relaxation and refreshment of body and mind Due to the increased
industrialization and hectic modern lifestyle, there is a need for rest and
relaxation, to de-stress the body and mind. This desire for relaxation
varies from individual to individual.
Health Since the medieval days, people have been visiting spas and
bathing in hot sulphur springs for specialized medical treatment. Several
spas and health resorts have developed over time in most of the countries
which attract visitors because of their curative aspects.
Pleasure Satisfying an individual’s need for pleasure is the most
predominant of all individual travel motivations. A person’s need for
pleasure is very deep-rooted and travel can satisfy this desire.
Curiosity and culture People are curious and eager to learn about other
countries, their people, and their culture. Tourists visit places of historical
interest, fairs, festivals, museums, dances, etc. to know more about the
lifestyle of people from different countries.
Interpersonalreasons ‘This includes people’s desire to visit their relatives,
friends, families, ancestral homelands, and also for meeting new people.
Spiritual purpose A large number of people are motivated to travel
because of spiritual motives, i.e. visiting holy places, shrines, etc. The
number of people who seek solace in such places is increasing
dramatically.
Professional or business reason People need to travel for business-related
reasons and this type of travel both domestic and international is growing
by leaps and bounds. People travel to expand their business, attend
meetings, conferences, and exhibitions.
These different motivators or purpose of travel have led to different
types of tourism. The types of tourism can be categorized on the basis of
their travel motivations (see Fig. 3.2). The different types of tourism are
discussed in the following section.

LEISURE OR HOLIDAY TOURISM

Tourists may travel to experience a change in climate and place, to see
and learn something new, enjoy pleasant scenery, or to learn and know
more about the culture of a destination.
 Types of Tourism 45

Leisure
or Space
holiday
Special
interest

Business | Eco-
and i
ons MICE weatied Wildlife
pe ag
ee RE Forms ———
and
eee Types of Tourism a Sioa
ioe as Senior
citizen
culture Health | Adventure

Sports

Religious Rural

Ethnic

Fig. 3.2 Different forms and types of tourism

Tourists who seek respite from the stress of day-to-day life, devote
their holidays to rest and relaxation, and refresh themselves when tired
are included in the category of leisure, holiday, or recreational tourists.
These tourists prefer to stay in some quiet and relaxed destination
preferably at a hill resort, beach resort, or island resort. Nowadays, many
resorts offer complete health packages or health benefits as extra facilities
to the tourist in the form of a body massage, steam and sauna bath, yoga,
facials, etc.
Industrialization and long working hours have created a lot of pressure
on people today. Due to the stress and strain of urban city life, people are
opting for relaxed, healthy, and peaceful holidays.
We have already read in Chapter | that there are many reasons why
people seek leisure tourism such as:
e long and stressful working hours per week;
¢ working couples trying to find time for each other or the family;
46 Tourism Operations and Management

e good pay packages and travel benefits;

¢ liberalization, privatization, and rise of the IT and BPO sectors; and
° awareness created by print and electronic media about various travel
destinations; brochures of travel agents and hotels which focus on
the pleasure aspect of holidays and weekend packages

VISITING FRIENDS AND RELATIVES (VFR)

This includes visiting one’s relatives and friends for interpersonal reasons.
A large number of Americans visit European countries in order to see
their families or because they feel they are visiting their homeland.
This particular type of tourism is very common in India. Many people
take time out of their busy schedules to visit their friends and relatives
during school vacations or during major festivals and to attend weddings
and other rituals. While visiting friends or relatives, people also visit
tourist attractions in and around the city. These tourists do not have the
freedom to choose their destinations, but they show an interest in shopping
and visiting tourist attractions.
In India, due to leave travel concession (LTC) facility and travel
allowances by private firms, many people are now visiting their native
places in their holidays.
Hotels and restaurants benefit the least by this type of tourism as the
tourists’ board and lodging is taken care of by the hosts. However, these
tourists are of benefit to other sectors such as transport, local transport,
attractions, entertainment, and shopping.

CULTURAL TOURISM
People are always curious to know more about foreign lands, their people,
and their culture. Culture is one of the most significant factors, which
attracts tourists to a destination. Culture in terms of tourism gives the
tonrist an insight into the
¢ way of life or lifestyle of the people which one can experience;
e dress, jewellery, dance, music, architecture, and painting; and
* customs and beliefs, fairs and festivals, and religion practised in the
region.
Cultural tourism covers all those aspects of travel whereby people
travel to learn about each other’s ways of life, their beliefs and thoughts.
The food, beverages, hospitality, crafts, etc. appeal to the travellers.
 Types of Tourism 47

Tourism is an important tool for promoting cultural relations and

international cooperation. The way in which a country represents itself
to tourists can be considered as its cultural factors.
Thus, cultural tourism includes widening one’s knowledge about other
places and people, their ways of life, their culture and includes journeys
to places of art and heredity treasures, religious shrines and other
civilizations, interest in religion, philosophy, history, etc. to participate
in cultural events such as art festivals and celebrations—music, theatre,
dance, folklore, festivals, etc. such as the Ellora festival, Elephanta festival,
Khajuraho festival, Malaysia festival, Dubai festival, etc.
Fairs and festivals are one of the main reasons of travel as these are
based on the culture of a country. They are not only popular with foreign
tourists but also with modern Indian youth. Cultural tourism is one of
the most significant reasons for travel in India because not only does
culture differ from state to state, but also from region to region. For
example, there is a marked difference in the culture of people residing in
the different regions of Maharashtra namely Vidarbha, Marathwada,
Konkan coastline, and the rest of Maharashtra.
Every state uses fairs and festivals to attract tourists. For example,
during Dussehra and Diwali in Goa, Narkasurs or demons are paraded
down the streets and prizes are awarded to the best Narkasur procession.
Fairs and festivals are marked by colours, lights, traditional fare, games,
races, new attire, religious celebrations, and festivities and a huge gathering
of hosts and tourists. Ganesh Chaturthi or Lord Ganesh festival or Pune
festival is celebrated for 10 days in September every year (see Fig. 3.3).

Fig 3.3 Ganesh Chaturthi

48 Tourism Operations and Management

Cultural tourism can offer the tourist an original and unique destination
experience especially in India because of the ethnic diversity, which India
has to offer.

ADVENTURE TOURISM
Adventure tourism is a different type of tourism. It is more challenging
because it takes the tourists into regions which are less frequently visited
and may not have easy access. These regions may offer minimal facilities
and comforts. For example, going on a trek through dense forests and
pitching a tent to live in with a camp fire for cooking and light, may
expose tourists to some risks along with the excitement.
Adventure tourism is a package of recreation, enjoyment, education,
and the thrills of participating in an adventure.
Travelling to participate in adventurous feats is a popular form of
modern tourism. Young people are attracted to this form of travel because
of the excitement and risks involved.
Adventure tourism is a form of travel, wherein recreation has a
revitalizing effect because all adventure activities are outdoor recreational
activities with the unpredictability of nature adding thrill and spice to
the tour. It fascinates people who want to live life in the fast track.
Adventure tourism has various forms, which can be broadly
categorized as follows:

Adventure on Land
Adventure on land is available in many forms, which may be natural or
man-made. Natural landforms include jungles, deserts, hills, and
mountains covered with their natural flora and fauna or snow.
Adventure on land could be in the form of a safari travelling caravan
style over a long specified distance or a wildlife excursion, or travelling
through a desert or jungle where the elements of adventure could be
experienced.
Motorcar racing is also an adventure sport, testing the navigation skills
and endurance of man and machine. All terrain vehicles (ATVs) are an
added attraction at many tourist destinations (refer to Chapter 5).
Other popular forms of land-based adventure sports are mountain or
wall climbing, trekking and camping, mountain biking, and rock climbing.
Mountaineering institutes have been set up by the government in a few
states to promote these sports. Trained instructors, safety measures, and
equipment necessary for adventure sports are available at these centres.
 Types of Tourism 49

Motorcar racing, skiing, and heli-skiing are popular amongst both

domestic and international tourists. Annual competitions for various
adventure sports are an added attraction for the daring and adventurous
tourists.
Land-based adventure sports are popular in India in the states of
Himachal Pradesh, Jammu and Kashmir, Uttar Pradesh, and Sikkim.
Large virgin forest tracks, untouched by formal transportation are
available in the Sahyadris, Nilgiris, and Himalayas, while rock climbing
is popular in Maharashtra, Karnataka, Haryana, and Rajasthan.

Water Adventure
Water or aqua adventure sports are available at seashores, gushing
waterfalls, springs, glacial lakes, and man-made water parks. Diving is
the most popular water adventure sport especially in areas with coral
reefs like the Andaman and Nicobar Islands and at Lakshadweep. Scuba
diving and snorkelling are popular underwater sports to observe the
beautiful creatures of the water world on the ocean floor. Deep-sea diving
is also gaining popularity. Parasailing and water scooters are available at
almost all beaches as a tourist attraction for the less adventurous tourist.
Flatwater adventure sports, such as water skiing and wind surfing,
and whitewater rafting and canoeing through rapids are some of the
popular water adventure sports.
Rivers originating from glaciers of snowcapped mountains, crash on
boulders and caverns to create swirls of whitewater and lots of rapids
before they reach the plains. This makes whitewater rafting more
challenging and exciting.

Aerial Adventure
This form of adventure helps people realize their dream of flying without
wings and has gained popularity ever since the invention of the aircraft.
With the aid of modern materials and established training methods, some
forms of aerial sports are relatively inexpensive and safe.
The oldest form of aerial adventure is ballooning. Balloons are filled
with a light gas like either hydrogen or helium gas or with hot air and
can accommodate two or more people depending on the size of the
balloon and basket. These colurful balloons are a major attraction at
some destinations. Other adventure sports like parachuting and skydiving
are costly and require prior training. Paragliding is a simpler sport, similar
to parachute jumping except for the shape of the canopy.
50 Tourism Operations and Management

Parasailing, gliding or soaring, hang gliding, and bungee jumping are

also forms of aerial adventure.

SPORTS TOURISM
The concept of sports tourism has become more prominent in the current
decade. People have been travelling to participate or watch sporting events
for centuries. Today, sports tourism is considered as one of the most
sought after leisure experiences. Sports and travel share a symbiotic
relation, whereby people are attracted to a particular destination for active
or passive participation. Sports tourists may be participants or spectators,
who have travelled to enjoy the sport.
Standeven and De Knop (1999) have defined sports tourism as ‘all
forms of active and passive involvement in sporting activity, participated
in casually or in an organized way for non-commercial or business/
commercial reasons that necessitates travel away from home and work
locality.’
The concept of sports tourism started with British nationals travelling
abroad for winter sports. The first such sports tourism package can possibly
be traced back to 1898 when Sir Henry Lunn, a British travel agent,
organized a 10-day skiing holiday in the Alps for a group of 10 for a then
princely sum of USD 15.
Sports tourism today is a worldwide phenomenon billed in several
billions of dollars. According to Sports Tourism International Council
(STIC), sports tourism could well account for 32 per cent of the total
tourism market in the coming years.
Interest in sports among Indians, till recently, was generally restricted
to cricket, but now other sports have also started gaining popularity. India
is fast becoming a destination for sports tourists from all over the world.
For example, an adventure sports such as whitewater rafting on the river
Ganga at Rishikesh is popular among tourists, both foreign and domestic.
The counter trend of Indians travelling abroad extensively has, to an
extent changed perceptions about their compulsion to travel; one of them
potentially being for active and passive sports.
Sports tourism has also given an impetus to tourism in India. The
Ministry of Tourism has set up a National Institute of Water Sports in
Goa to promote water sports throughout the country. The state
governments assist in procuring water sport equipment for canoeing,
kayaking, hovercrafting, wind surfing, yachting, river rafting, etc.
 Types of Tourism 51

Sports tourism is a small segment in India, but it ensures higher returns

since a sports traveller is a high spender. Some of the popular tour
operators and travel agents who specialize in dealing with sports packages
are
SOTC Sports Abroad, specializing in cricket, golf, Formula 1 racing,
tennis, and soccer (FIFA World Cup);
Sports Services Pvt Ltd, Bangalore, specializing in cricket, golf, Formula
1 racing, and soccer;
GET Lionel India, specializing in cricket, tennis, Formula 1, and soccer.
Active sports tourism, where tourists indulge in activities like adventure
sports or golfing apart from sightseeing, is still a largely untapped segment,
which shows tremendous potential. Many tourists visited Pune, India in
October 2008 to witness the Commonwealth Youth Games (CYG).
Tourists from all over the world attended the 2008 Beijing Olympics and
many are expected to attend the 2010 Commonwealth Games to be held
in Delhi.

RELIGIOUS TOURISM
Religious tourism is also known as pilgrimage or spiritual tourism. The
evolution of tourism could also be attributed to journeys undertaken
since ancient times to places considered as sacred. People travelled singly
or in groups for the purpose of spiritual benefit or to attain salvation or
moksha.
Religious tourism is a journey, undertaken for the sake of worship
and/or to pay respect to a site of special religious significance.
In India, since time immemorial, tourism has been associated with
places of religious significance. These destinations are scattered all over
the country.
Varanasi in Uttar Pradesh is amongst the oldest living cities in the
world. It is also the holiest of Hindu pilgrimages. Thousands of pilgrims
come to Varanasi daily to take a ritual dip in the sacred river Ganga, as it
is believed that it will cleanse their souls of sins, and to worship God at its
many temples. Varanasi is so old that it is a part of Indian mythology and
finds mention in the epics Ramayana and Mahabharata. Varanasi has
nearly hundred ghats. Many are bathing ghatsbut at the others, cremations
are conducted. According to Hindu belief, dying at Kashi or Varanasi
ensures release from the eternal cycle of birth and rebirth.
Another important city of religious importance is Haridwar which is
also known as the Gateway of the Gods. Two great events that take place
52 Tourism Operations and Management

here are the memorable Kumbh Mela, which happens once every 12
years and the Ardh Kumbh Mela, which comes once every six years.
Haridwar stands as the gateway to the four pilgrimages of Uttarakhand
also known as the Char Dhams of Uttarakhand—Gangotri, Yamunotri,
Kedarnath, and Badrinath.
Another important Indian Hindu pilgrimage is visiting the Char Dhams
of India which were founded by Shankaracharya. These are located at
the four corners of the country namely at Rameshwaram in the south,
Puri in the east, Dwarka in the west, and Badrinath in the north (see Fig.
3.4).
Vaishnodevi temple and Amarnath caves in Jammu and Kashmir,
Mathura in Uttar Pradesh, the 12 Jyotirlingas, 51 Shaktipeeths, Shri Sai
Baba temple at Shirdi, Anand Sagar at Shegaon, Maharashtra, etc. are
some other important pilgrim centres (see fig. 3.5). The Balaji temple at
Tirupati in Andhra Pradesh is considered as one of the world’s richest
temples.
For the Muslims, a visit to Mecca is sacred. Every Muslim wishes to
visit Mecca, Islam’s holiest city, once in lifetime. The annual religious

Badrinath

Dwarka

Rameshwaram

Fig. 3.4 Char Dhams of India

 Types of Tourism 53

Fig. 3.5 Anand Sagar, Shegaon

journey to Mecca is known as Hajj and the pilgrims are known as Hajis.
As part of the Hajj, pilgrims perform several rituals including praying at
the Kaaba shrine located at the centre of the Masjid al-Haram or the Grand
Mosque. The Sufi Saint Khwaja Moinuddin Chisti’s dargah at Ajmer and
Haji Ali at Mumbai attracts devotees of all faiths from all over.
For the Christians, a visit to Jerusalem and Bethlehem is considered
very auspicious. Rome is recognized as the holy city for the tombs of St
Peter and St Paul and so is the Vatican City. In India, the Church of
Basilica of Bom Jesus at Goa and the church at Velankanni, Tamil Nadu
are considered holy by Christians.
Buddhist pilgrims from Japan, China, and other places visit Sarnath,
Bodhgaya, Rajgir, Sravasti, and Nalanda, places connected with events
of the life of Buddha. Tourists from all over visit the world famous Stupas
at Sanchi, and the Ajanta and Ellora caves at Aurangabad.
The Golden Temple at Amritsar in Punjab is the most sacred place for
Sikhs. Anandpur Sahib or the holy ‘City of Bliss’ founded by Guru Teg
Bahadur and Takhat Sachkhand Sri Hazoor Sahib, a shrine on the banks
of the river Godavari in Maharashtra are popular Sikh pilgrimage sites.
For the Jains, Dilwara temples at Mount Abu, Girnar temples in
Gujarat, Ranakpur, and Shravanbelagola are auspicious places. Thus,
India has many pilgrimage centres and holy places of interest to all the
major religions of the world.
54 Tourism Operations and Management

BUSINESS TOURISM
Travel is not always undertaken for pleasure or leisure. The business
traveller’s main motive for travel is work. He/she visits a particular
destination for various reasons pertaining to his/her work such as
attending a business meeting, conference, convention, trade fair, selling
products, meeting clients, etc.
Many travel and tour operators specialize in business tourism. About
80-85 per cent of all air travel is business related. Business travel is
recognized as the most important segment for revenues for the hotel
industry. More than 50 per cent of occupancy of a large majority of
hotels in many countries comes from the business travel segment. The
business traveller is the lifeline of the tourism industry.
Out of 2.8 million tourists visiting India, the majority are business
travellers. According to the Federation of Hotel and Restaurant
Association of India, 60 per cent of all guests in the Indian hotel industry
comprise of business guests. Many convention centres have emerged in
keeping up with the growing demand of business travellers. Similarly,
the hotels target business travellers and have modern day facilities of
arranging meetings and conferences. The airline and hotel industry have
recognized the monetary worth of business travellers and, therefore, have
directed a lot of their services towards them.
A business traveller looks for the best and not the cheapest, as he/she
is not worried about the cost, for most travel expenses of the business
traveller are borne by his/her company, which he/she is representing.
Sometimes a business traveller decides his/her trip at the last minute.
He/she has less time and needs comfort during his/her travel. The needs
of a business traveller are, therefore, different from those of a regular
tourist.
Unlike the leisure traveller, the business traveller does not choose
his/her destination. Business trips are also shorter in duration. Most
business travellers are frequent and experienced travellers and, thus, more
demanding customers. Their expectations and demands are also more
than that of an average tourist.
Sometimes the services used by both business and leisure tourists are
similar such as hotel rooms and airline seats. At other times the services
are specially designed for business travellers such as provision of
convention facilities, etc. Special facilities are often made available in
existing rooms for the business traveller like Internet access points in
guestrooms and facsimile machines on board an aircraft.
 Types of Tourism 55

Many countries are witnessing the revolution in business tourism, as

a large numbers of corporate employees are travelling round the globe.
Many IT and BPO companies send their executives abroad for projects
and new assignments.
The city hotels in major metros find the business-leisure ratio to be
3:1. Travellers from China, Taiwan, Hong Kong, and Singapore visit India
mainly for business purposes. Business travellers coming from western
countries and those from the eastern part of the globe have different
needs. For example, a survey showed that the Chinese usually need a
tour escort, who may also be the interpreter or a designated interpreter.
The interpreter is expected to travel with the group at all times and be
part of the cost of the tourist group. They prefer staying in three or four
star hotels with big impressive lobbies (implying quality) and large clean
rooms. They are very particular in regards to maintaining their Chinese
food and eating styles (there should be Chinese snacks and teas available),
while pubs, dancing bars, karaoke, and shopping is what they look for as
entertainment in the evenings.
Likewise, people from other countries would have their own likes
and dislikes, which service providers must be aware about.

Meetings, Incentives, Conventions, and Exhibitions (MICE)

Business tourism involves meetings, conferences, and conventions where
information is exchanged, lavish events are organized to launch new
products, incentive travel is offered to motivate or reward staff, exhibitions
are organized to promote corporations, etc. This is popularly called
meetings, incentives, conventions, and exhibitions/expositions or MICE
tourism, the four most important aspects of business tourism.
MICE has often been confused as mainstream business travel but the
demarcation is now getting more defined as both corporate and service
providers have begun realizing MICE’s significance and potential.
MICE, a subset of business travel has become the buzzword in the
travel industry. This was evident when the Indian Association of Tour
Operators ([ATO) convention identified MICE tourism as the upcoming
tourism product.
MICE including small meetings, training courses, seminars, and
workshops have gained special significance as a type of tourism
throughout the world. Many hotels, resorts, and countries have developed
facilities that are uniquely devoted to this form of tourism.
Some examples are Trade and Convention Centre at Vancouver in
Canada and the Conference Centre at Manila in the Philippines. These
56 Tourism Operations and Management

centres are recognized internationally for the services and facilities offered
by them. Pragati Maidan, New Delhi is a major exhibition centre. It
hosts one of the largest annual domestic fairs—the India International
Trade Fair in the month of November.
India ranks a distant 28 in the MICE chart and gets just 0.92 per cent
of the total 10,000 conferences and meetings held globally every year.
This is due to the simple reason that there is little infrastructure to cater
to MICE traffic. The decision makers of international conferences will
not select a venue on the basis of a country’s scenic beauty, cultural
heritage, or wildlife. An event planner looks for meeting facilities,
accommodation, world-class airports, connectivity, transportation
facilities, and competitive prices. Day trips and sightseeing can also be

Speirs ESD
_ isenvicer
Security - IS CLES“Entertainment
BITE

Accommoda
Internet -tion
phn (hotels and
=<" resorts)

ss . ; } i Business
-- Communica es
abides
-tion aids
MICE > os d
convention
centres
nS

Trained
human Transportation
“resources | > modes

Food Convention
and... ; sand
beverage Exhibition ~ meeting
service grounds » planners
rf «3 and
halls

Fig 3.6. Infrastructure required for MICE

 Types: of Tourism 57

offered as incentives to MICE tourists as additional benefits so that they

may) also come back as repeat visitors, and bring their families along.
MICEtravellers expect a high level of comfort, hassle-free movement,
and value'for money experience. MICE planners do not go by brochures,
but their own experiences and feedback from colleagues in the industry.
Many countries have ‘developed MICE as their’primary activity of
tourism interest. Countries such as Singapore, 'Thailand, South Korea,
South Africa, Malaysia, New Zealand, Australia, Spain, and even Nepal,
etc. are trying to promote themselves as: MICE destinations. Similarly,
places like: Dubai are projecting themselves as major exhibition and event
centrés.
Planning for MICE requires a lotofcoordination, perhaps more than
the tourism industry (see Fig.3.6). The areas that require a special planning
for MICE are asfollows:
Venues _.There should be enough space for international delegations
to hold meetings, conventions, and exhibitions,
Transport .Air and ground transport...
Accommodation _ Preferably near, their meeting/ conference/exhibi-
tion venues and should be equipped with fax machines, laptops providing
internet connections, telex, videoconferencing facilities, etc.
Other support services .Catering, shopping, and entertainment.

HEALTH TOURISM
People have been ana allie for centuries to improve and rebuild their
health and stamina.
During the Roman empire ae visit to spas, which was mainly for
health reasons, became a pleasure activity as more number of spas, both
warm and cold, came into existence. In Europe, the subsequent establish-
ment of many sanatoria was the result of an awareness of the various
benefits of good health. These sanatoria laid the foundations for future
resort development. Today, there is a growing increase in the travel to
spas and health clinics for curative baths and medical treatment. Hotels
..and.resorts offer health services because in spite of busy schedules, people
i take time out to relax and de-stress. People all over the world are seeking
o good health through the various techniques offered by yoga and other
alternative therapies and a lot of foreigners are coming to India for learning
more about them.
58 Tourism Operations and Management

The term ‘spa’ stands for sanus per aquam, which means in good health
through water. A spa is a place where one can find time to relax, reflect,
revitalize, rejoice, and discover one’s inner self.
The history of spas can be traced as early as 500 BC amongst the
Egyptians, Romans, and Greeks, when social bathing was an important
aspect of their culture. Today’s spas are an interesting combination of
ancient traditions and modern mechanical wonders through the use of
thermal and mineral water treatments. The unique selling proposition
(USP) of many hotels and resorts is their spa.
Spas offer relaxing massages, pedicures, manicures, body scrubs, deep
cleansing facials, and other healing therapies such as yoga and reiki.
They are gaining popularity because they are natural stress relaxants.
They not only change the way you look but they also change the way
you feel about yourself and everything around you.
People visit spas for many reasons. A business traveller comes to a
spa to minimize his/her jet lag, an old lady seeks back pain relief, a
teenager comes looking for a cure for acne and pimples while leisure
tourists want to pamper their senses and gain peace of mind. Some of the
world’s finest international spas are the Cing Mondes spa in the Beau
Rivage Palace in Switzerland, the spa suite at Wildflower Hall, a resort in
Shimla (see Fig. 3.7), and the Ananda Spa in the Himalayas which also
offers Ayurvedic treatment.
To the tourists, India and other Asian countries offer the best attractions
and at prices which few destinations can match. So is the case with medical
tourism. It offers some of the best facilities for general medicine as well
as specialized care, state of the art technology, and professional care.
Thus, health tourism covers regaining one’s health or recovery from
ailments through one or more of the following aspects:

Fig. 3.7 Spa suite at Wildflower Hall resort, Shimla

 Types of Tourism 59

Change of climate A change of climate from cold to warm or wet to

dry helps one regain health during convalescence.
Alternative therapy Destinations are popular because of alternative
health therapies available in the form of ayurvedic treatment popular in
Kerala and other states. Hot sulphur springs at Manikaran in Kulu for
treatment of skin problems, the use of therapeutic mud from the Dead
Sea in Israel, naturopathy and art of living courses, yogasanas at the Swami
Iyengar Institute in Pune are some examples.
Medical tourism Some tourists visit a destination because of the medical
treatment available at the destination.
Medicare is on the upfront and is one of the motivational factors for
tourism. Medical tourism is the most sought after term in the tourism
industry today. It is more so in the Asian countries keeping in view the
gains associated with this emerging area of tourism. India is working
hard to establish itself as the number one country for medical tourism.
Large numbers of international visitors come to India for medical
treatment. This has become possible only because of the emergence of
the private health care sector.
India is an ideal stop for medical treatment because it has world class
hospitals, state-of-the-art technology, competent doctors, professional
management, top quality nursing, and paramedical staff. All this is on
offer at comparatively lower prices making it economical to the tourists
as well.
Half a million annual tourists come to India with the chief purpose of
either treating or enhancing their health. Two external agencies, Mc
Kinsey and Messe Berlin have revealed that a 25 per cent growth in
India’s medical tourism segment could render the players richer by Rs
5000-10,000 crores. Messe Berlin feels that India can expect to earn
USD 1 billion in foreign exchange from medical tourism by 2012. India’s
main USP is the low-cost treatment by highly skilled and qualified
professional doctors. A large population from the Middle East comes to
India for gynaecological treatment and abortions (abortions are
considered illegal in their country).
The Ministry of Health of the Sultanate of Oman has signed a contract
with a leading state-of-the-art hospital in Pune for treating patients with
orthopaedic and spinal cord related disorders.
In India, the cost of treatment is between one sixth to one tenth of the
cost incurred in the USA or Europe. Visitors from western countries find
medical treatment in India cost-effective and less time consuming as
60 Tourism Operations and Management

- compared to theiriown homeland. For instance, a heart surgery that costs

about Rs 20 lakhs abroad would cost*Rs'2 lakh (approx) even if it is
performed in the topmost hospitals in India. The low-cost treatment is
feasible and also a reality in India becauseof the low value of the rupee
and low. cost of labour: In addition, in India, waiting time is minimal
which is proving to be.a major attraction particularly for patients coming
«in from the UK or USA.
With its numerous other attractions, one can’ come here with the family
and combine the medical check up with a pleasure trip for the family.
The traveller, who visits India, can also;look for a,holistic package that
includes a refreshing, or relaxing. tour., The traveller can choose from
various systems of alternative medicine too, such as acupuncture, aroma
therapy, meditation, ayurveda, unani medicine, mud therapy, physio-
therapy, reiki, etc. In addition most hotels,and resorts in India have their
_.own spas and ayurvedic centres that ‘SEER!encourage such alternative
forms of medical tourism,
_), To ensure standardization in health care it.is necessary that hospitals
offering medical tourism need. accreditation. from the Confederation of
Indian Industry (CIJ),, National Accreditation Board for Hospitals and
Healthcare providers (NABH).

ALTERNATIVE FORMS OF TOURISM

, Alternative, tourists. are, different fromthe; regular tourists. Alternative
. tourism, aims at seeking a. transition from impersonal, traditional mass
tourism. to. establishing cordial rapport between visitors and the local
hosts, These tourists normally avoid the services that. are used by tourists
such as.accommodation, transport, and other services. They prefer to
use or share the services. of the local people: Their main motive is to
experience and get an insight into their way of living.
_ Alternative tourism is nowadays regarded, as.a,key to sustainable
development. While mass tourism, can havea negative impact on a
destination, alternative tourism promotes,a balanced growth form, more
in. line with local environmental.and sociocultural concerns. Tourism
development activities such as building of infrastructure, etc. are not only
costly but also affect. the environment and,are minimal in this form of
tourism. i]
Many of the western travellers have Be dnyh their dissatisfaction
towards the sun-based holidays: In fact many of the tourists are looking
 Types of Tourism 61

for a change. These tourists want tour packages comprising of wildlife,

cultural sites, local tribes, whitewater rafting, etc.
This interest in alternative tourism has, thus, led to the emergence of
travel agents and tour operators who specialize in these different interests
of the tourists. Alternative tourism is not a type of tourism but is rather
a guiding principle involving ecotourism, heritage tourism, cultural
tourism, etc.

Special Interest Tourism

Special interest tourism has evolved from a search for new avenues, which
are likely to attract and add value to conventional tourism. The tourism
industry has felt the need to expand the destination experience beyond
pleasure tourism and give the tourists a completely unique experience in
an area, which is of special interest to the tourist.
The special interest tourist looks for the unusual and not for the routine
itineraries, which include ‘attractions, which cater! to the needs of the
mass tourist.
Special. interest tourism can be defined as, people travelling to a
particular destination with the purpose of fulfilling a particular interest,
which can be pursued only at that destination.
Special interest tourism offers many alternative forms. It is developed
keeping tourist preferences in mind. It covers diverse market segments
and equally diverse tourism products ranging from, historical, culinary,
archeological, and other interests such as golf, fishing, etc.
In India, from the special interest point of view, culture is the most
popular of a range of special interests that a tourist may pursue. A large
number of tourists visit cultural sites in India such as the Red Fort, the
Taj Mahal, temples, and palaces to understand their historical value.
Although a majority of mass tourists in India’ travel to these historical
sites, a large number of tourists nowadays are looking at these sites with
a different perspective, keeping their special 'interests in mind. This is
how special interest tourism has developed.
Special interest tourism couldbe visiting Mughal architecture, gardens
of India, textile centres of India, gourmet tours to learn about various
kinds of foods in India, rail tours—travel by different types of railway
systems, especially steam locomotives, Darjeeling toy train (see Fig. 3.8),
Palace on Wheels, Deccan Odyssey, etc. The interests also include visiting
tribal areas, wildlife safaris; camel safari, elephant safari, horse safari,
walking safari, cycling safari, jeep ’safari, camping safari, etc.
62 Tourism Operations and Management

Fig 3.8 Darjeeling toy train

Special interest tourism also includes sports tourism such as golf tours,
polo, car racing, cricket, football, and hockey matches. Some tour
operators sell package tours to coincide with sports events such as the
football World Cup, the Olympic games, and the Commonwealth games.

Ecotourism
Ecotourism is one of the popular forms of alternative tourism. It is often
defined as sustainable nature-based tourism. However, ecotourism also
incorporates social and cultural dimensions where visitors interact with
local residents. Ecotourism is usually used to describe tourism activities
which are conducted in harmony with nature. This form of tourism fosters
environmental principles with an emphasis on visiting and observing
natural areas. It ensures that the impacts from the tourism activity are
controlled.
Thus, ecotourism can be defined as ‘purposeful travel to natural areas
to understand the cultural and natural history of the environment, taking
care not to alter the integrity of the ecosystem, while producing economic
opportunities that make the conservation of natural resources financially
beneficial to the local citizens’.
Due to the large movement of people and unplanned tourism
development, the environment, ecology, and the people at a destination
 Types of Tourism 63

are greatly affected. The environment is the most fundamental ingredient

of the tourism product and needs to be preserved.
It is generally agreed that unregulated tourism tends to destroy forests,
consume firewood, create pollution and over crowding, and threaten the
floral and faunal diversity. It also produces garbage trails, overburdens
environment with tourist structures and roads, and at times causes hazards.
There is massive reduction in forest cover in the hills and mountains.
The rich forested slopes have been converted into barren rocks due to
the development activities such as roads, hostels, and trekking trails. In
Uttarakhand, the soils, biomass, flora and fauna, and water bodies have
suffered a lot due to unplanned encroachment. Waste generation,
especially solid waste by the hotels such as food waste, vegetable scraps,
paper, rags, plastic, bottles, etc. is causing damage to the local ecosystems.
While some wastes are biodegradable others such as soft drink bottles
and polythene are not and cause immense harm to the environment.
Many of the tourist attractions have been damaged to a great extent
due to increased human presence. The intrusion of humans has led to
the decline of forest cover and damage to the precious ecosystem and
biodiversity. It can also upset the living habitat of wildlife, forcing them
to unusual diet and habitat. The unplanned growth of tourism can have
an adverse effect on agriculture, forest, local people, and their way of
living.
Many wildlife sanctuaries and national parks have been established,
partly to promote tourism, the main aim being to protect and preserve
the natural landscape, flora, and fauna. Tourism should be developed
within the carrying capacity of the park and not at the cost of park and its
resources.

Rural Tourism
Tourists nowadays are shifting their interest of travel to new destinations
to explore and experience the destination and have first-hand knowledge
of the local people, their cuisine and actual way of living.
Of late, rural tourism has gained importance in India. The Indian
government is marketing rural tourism through its ‘Incredible India’
promotional campaign.
Fort Jadhavgarh near Pune has recently been renovated and taken
over by the Kamat Group of Hotels, India which is known for its green
policy.
In the European countries, the tourism infrastructure is quite strong
in the rural areas, for example, in France and Germany when tourists visit
64 Tourism Operations and Management

vineyards which are quite famous there, or go for sightseeing to historical

buildings they prefer staying in the countryside. In Scotland and Wales
as well as other parts of the UK, tourists prefer the bed and breakfast
motels and lodges where they'can stay in comfort. More than 50 per
cent tourists visiting Ireland stay on farms. The board and lodging is
looked ‘after by the farm’s management. Special entertainment
programmes are’ arranged for the visitors depicting the life lived by
aristocrats and the landlords some 500 years ago.
In India, states like Rajasthan, Gujarat, Madhya Pradesh, Uttar Pradesh,
Himachal Pradesh, and Maharashtra have heritage hotels. Many of the
forts, havelis (old palatial bungalow houses), and palaces have been
converted into hotels and they provide accommodation, food, and other
basic facilities needed by the tourists. The entertainment programmes
provided by these heritage hotels give an insight into the rural culture of
the place. | ? :

Ethnic Tourism
Ethnic tourism involves travel for the purpose of observing the cultural
expressions of lifestyles and customs of the indigenous and exotic people.
This type of tourism focuses directly on the local people. It involves
direct intimate contact with the authentic culture of the indigenous people.
The tourists visit the local homes, observe, and participate in their
traditional rituals, ceremonies, dances, festivals, etc. This type of tourism
is also. referred to, as a,combination of culture,and nature tourism. In
ethnic tourism, the tourist is mainly interested in having direct contact
with the local people. The tourist’s main aim is to gain first-hand
experience of the way of life and cultural artifacts of the local people,
whereas in cultural tourism the contact with the local people is done
indirectly, i.e. these tourists will view the culture but not experience it.
Some examples of ethnic tourism are the Pushkar fair, Bikaner fair, and
Nagaur fair of Rajasthan.

Senior Citizen Tourism

This is a fairly new emerging trend in tourism meant for the senior citizens
or old people. Many tour operators nowadays specialize in package tours
specially designed for the elderly: They provide them with a tour escort
or tour leader who keeps them occupied with entertainment and activities
suitable for their age and at the same time making sure they do not get
tired. Extreme care has to be taken while planning their tour. Due to
 Types of Tourism’ 65%

their age factor and other health problems they should have a relaxed
and enjoyable tour.
| This type of tourism. is common in, the, West, keane of the nuclear
family concept, Itisnow gaining popularity in India.
World, over, the number of senior citizens is on the rise because of a
longer espa: attributed. to developments in, medicine and technology.

Wildlife rare
Wildlife is a term used to refer to both the floral and faunal components
of a natural environment. Wildlife tourism has gained popularity in the
last,decade. Many young enthusiasts and, nature, lovers as well as
adventure seekers are exploring this new area of tourism. Realizing the
economic benefits: of tourism; ithe governments of/many countries are
promoting wildlife tourism in a big way. ‘Wildlife tourism is also considered
an important element in’ wildlife protection..On, one, hand, the tourists
can |help in: the conservationof wildlife while: on,the. other conversely
their presence can affect the wildlife (see Fig. 3.9), Thus, each area has to
-beassessed according tothe number of people it;can sustain. Disruptive
human presence in the parks can:have a\negative impact on the number
of wildlife.and; thus, cause a drop inthe number of tourists also. Due to
the increased poaching and hunting ‘activities many
wildlife species are

Fig)3.9° Wildlife,
66 Tourism Operations and Management

on the verge of extinction, like the Asiatic Lion at Gir National Park in
Gujarat.
Many tour operators specialize only in wildlife tourism. Luxury safaris,
wilderness backpacking, zoos, aquaria, and safari parks all form part of
the increasingly successful wildlife tourism industry.
Examples of well known wildlife sanctuaries and national parks are
Corbett National Park in Uttarakhand, Bandhavgarh and Kanha National
Park in Madhya Pradesh, and Kaziranga National Park in Assam, etc.

Space Tourism
Space tourism is the term broadly applied to the concept of paying
customers travelling beyond the earth’s atmosphere.
This is a new upcoming form of tourism where ordinary people will
buy tickets to travel to space and back. The limitless resources in space
are soon going to become profitable business. Virgin Galactic is all set to
launch its first space tour with four Indians on board and has also booked
twenty people for 2009 (refer to Chapter 16).
Tour operators and destination planners have realized the need to
motivate people to travel and are seeking novel ways to attract tourists.
Destinations are being developed keeping the travel motivators or needs
of the tourists in mind. There is a visible shift from mass tourism to special
interest tourism. The next chapter focuses on the infrastructural facilities
which are necessary at the destination.

SUMMARY
The tourism industry has witnessed a large scale movement of people for various
tourism related activities. Today, people are more aware of destinations and
attractions, have money to spend, and need a break from their routine stressful
life. They take short or long breaks to refresh and relax or may travel to fulfil
some psychological and/or social needs. Sometimes travel may be related to
business.
Tourism service providers need to understand what motivates a person to
travel. Various travel motivators have been categorized and these have led to
different types of tourism. The popular types of tourism are leisure or holiday
tourism, visiting fnends and relatives (social tourism), cultural tourism, adventure
tourism, sports tourism, religious tourism, health tourism, and business tourism.
Mass tourism has led to dissatisfaction among some tourists and they now
look forward to alternative forms of tourism. Many of them are looking for a
ee Types of Tourism
ESO 67

change and wish to learn more about the local culture of a place. Special interest
tourism adds value to conventional tourism by offering the tourists what they
are especially interested in. Ecotourism is one of the alternative forms of tourism,
where only those activities, which are in harmony with nature, will be undertaken.
These alternative forms of tourism help preserve the environment for the future
generations. Rural and ethnic tourism help the tourist to understand the way of
life of the host population.

KEY TERMS
Carrying capacity Carrying capacity of a destination or attraction is the maximum
number of tourists acceptable at any given time that can enjoy the attraction
without harming the physical environment.
Convention An assembly of people meeting formally to discuss common issues
and formulate policies. Conventions are normally annual events and attended
by large number of people.
Convention centre A venue for hosting large conventions; located centrally in
pleasant surroundings, accessible to airports with ample parking facility.
Corporate sector It consists of companies, business houses.
Exhibition or trade fair It is the display and sale of products or services to an
invited audience or to the general public, with an aim of creating awareness
and promoting products. They are of importance to the tourism industry
because buyers, sellers, and exhibitors travel long distance to visit them.
Heritage tourism A type of tourism which covers the cultural heritage of the
past.
Kayaking It means sailing in a kayak or canvas covered lightweight canoe.
Meeting In the context of tourism it may be defined as an organized event,
which brings people together to discuss a topic of common interest which
may last for a few hours or few days and which utilize services of the tourism
industry.
Potential tourist A person who is likely to purchase a tourism product or can
possibly become a tourist is known as a potential tourist.
Resort Generally located in hill stations or on beaches which provides built in
recreation and sports facilities along with food and accommodation.
Sauna A steam bath available at spas and health centres.
Scuba A self contained underwater breathing apparatus.
Snorkelling It means to swim just below the surface of the water with a breathing
apparatus called a snorkel which is held in the mouth and is fitted with a
long tube which projects above the surface of water.
68 Tourism Operations and Management

CONCEPT Spe! QUESTIONS

What-is alternative tourism.and AREis it gaining popularity?
Why. does the VFR tourist, not require accommodation for his/her stay?
Write .a- note on: cultural tourism.
PR
Po
-W
BR Discuss.how sports are gaining importance. with respect to tourism. What
is the significance of religious tourism?
List the various land- and water-based adventure sports.
Discuss the requirements of a special interest tourist.
Name the tours related to special interest tourism.
Write a note on ecotounsm.
U1
(OV
“I
OO
co Name four-wildlife sanctuaries in India,

CRITICAL THINKINGQu ESTIONS ©

ids Discuss the soratace of MICE to the tounsm eeieee
2. How does medical tourism:help the economy of.a country?
3. How does rurat tourism help in the development/ofia region?

PROJECT/ASSIGNMENT
‘Visit the tourist spots in and around your he and find out the types of tourism
' © which your city offers.

REFERENCES
“Bhatia; A.K. 2001, International Tourism Management, Sterling Publishers Pvt
Ltd; New Delhi.
“Davidson, R. 1994, Business Travel, Pitman, London.
Goswami, B.K. and G. Raveendran 2003, °A i of Indian Tourism, Har-
Anand Publications Pvt Ltd, New Delhi.
Hinch, T. and J. Higham 2006, Aspects of adeletltbSport Tourism Development,
~Viva Books Pvt Ltd; New Delhi. |
Kamra, K.K. and M. Chand 2004, Basics of Tourism: That Operation and Practice,
Second Edition, Kanishka Publishers, New Dethi.
Lundberg, D. 1985; International Travel and Tourism, John Wiley and Sons Inc
Publishers; New Delhi:
“Negi, J. 1997, Travel Agency and Tour Operation: Concepts and Principles,
Kanishka Publishers, New Dethi.
Pearce, D. 1987, Tourism Today: A Geographical Analysis, Longman, New York.
 Types ofTourism 69

Ritchie, B.W. and D. Adair 2006. Sport Tobinbineenolarion anes. Impact and
Issues, Viva Books Pvt Ltd, New Delhi.
Sethi, P. 2000 Business Tourism, Rajat Publications, New Delhi.
Singh, R. 1998, Dynamics of Modern Tourism, Kanishka Publishers, New Delhi.
Standeven, J. and P. De Knop 1999, Sport Tounsm. punan Kinetics Publishers,
Champaign, Illinois.
 Tourism Infrastructure

Learning Objectives
After reading this chapter you should be able to:
e understand the meaning of the term tourism infrastructure
explain the relationship between infrastructure and tourism
know the importance of telecommunication and essential services to tourists
identify the main aspects of transport infrastructure

INTRODUCTION
‘ he popularity of any destination depends to a great extent on the
tourism infrastructure at the destination. Since the terms tourism
and tourism product are complex and without any well-defined
anaienty the term tourism infrastructure too is vast and includes much
more than just the basic infrastructure, i.e. the facilities located below the
ground which complement those which lie above the ground such as
water, street lights, power, drains, sewage, buildings, roads, etc.
An integrated package of infrastructural facilities such as water, waste
disposal, roads, airports, railways, accommodation, transportation,
attractions, etc. is the basic need of any destination. Destinations with
excellent infrastructure are most popular and pose few or no barriers to
 Tourism Infrastructure 71

travellers. This is because they are easily accessible, transport facilities

are comfortable and affordable, accommodation standards are high, and
food and beverages offered suit every palate. The environment is clean
and hygienic and there is ample choice of attractions for all age groups at
the destination. Singapore and Malaysia are examples of destinations
with excellent infrastructure and it is no wonder that the number of tourists
visiting these places is on the rise. Tourist traffic to any destination largely
depends on the extent to which minimum infrastructural facilities are
provided.
Tourism infrastructure covers two aspects. The first aspect being easy
accessibility and freedom to travel, this means good international
relationships amongst nations with minimum barriers to enter a country
in terms of permits, visas, language, currency, etc. The second aspect of
infrastructure is the level of development of facilities for tourists and
hosts. These facilities include water supply, sewage disposal, energy
sources, electricity, and drainage, well developed roads, designated
parking areas, open spaces for parks, street lights, airports, railway stations,
local transport, bus terminals, marine and dock facilities, communication
facilities, security, etc. Infrastructure for tourism and infrastructure at the
destination is for use of the resident community or the locals or hosts, as
well as the tourists. This is because there is an overlap between tourist-
oriented products and resident-oriented products.
The government provides the basic infrastructure at any destination
and encourages the private sector to invest in superstructure such as
accommodation, restaurants, catering, shopping malls, amusement parks,
etc. by providing tax incentives. The tourism industry is witnessing joint
ventures (JV) and public-private partnerships (PPP). Facilities such as
catering, entertainment, and shops are provided by commercial
entrepreneurs.
Tourism should be viewed as a national asset. Since infrastructure has
a direct bearing on the quality of the tourism product, it should be
optimally developed. Figure 4.1 shows the major components of the
tourism infrastructure.

DEFINITION
Tourism infrastructure can be defined as the tourism policies and
international relationships that remove barriers or obstacles and give the
tourist freedom to visit a destination. It also includes developmental
facilities and amenities such as water, electricity, roads, transport,
72 Tourism Operations and Management

Tourism
infrastructure

Transportation Accomodation Food and Attractions Telecommuni Essential

beverage -cation services
Transport Hotels Natural system
Air Motels Restaurants Built Power
Road Resorts Fast food outlets Social Internet Water supply
Rail Lodges Dhabas Cultural Telephone Sewage disposal
Water Holiday Mess Telex Garbage disposal
Parking areas homes Hostels Facsimile Health
Airports, runways Government Security
Railway lines guest
Bus stands houses

Fig. 4.1 Tourism infrastructure

construction, taxation policies, communication networks, and institutions

that improve the quality of life of both the guests and hosts.
Although some infrastructure is developed specially to promote
tourism at the destination, there is no line of demarcation and all facilities
at the destination are for use by both the locals and the tourists. This
clearly shows that planned tourism is a developmental activity which
can bring revenue for destination development. India has a variety of
attractions and does not use its tourism potential to the fullest extent; the
reason being poor infrastructural facilities which create obstacles to
international travellers.
Infrastructure for tourist transportation includes vehicles, network of
roads and railway tracks, terminals, and parking areas.

Vehicles

Different types of aircrafts, trains, automobiles, and ships are used to

transport tourists to and within the destination. These are discussed in
detail in Chapter 5.

Network of roads and railway tracks

A well developed public transportation system or mass transit is necessary
at the destination to give a boost to tourism as it is economical. It includes
rapid rail, metros, subways, buses, tramcars, ferries, etc. For example,
the mass rapid transit (MRT) in Singapore and mass transit rail (MTR)
 Tourism Infrastructure 73

along with ferries in Hong Kong, connects the entire city making travel
very simple. Fast, clean, efficient, and inexpensive local transport attracts
tourists from all over the world.
Roads Roads which tourists use once they land at a destination and
which connect important destinations should be in a state of good repair,
with signage boards in English as well as the local language and street
lighting in cities. The network of roads includes national highways, state
highways, district roads, and village roads.
National highways are arteries of road transport, running through
states, major industrial areas, capitals of states, and major ports.
Expressway and freeway are other terms for a national highway. These
roads should have well-maintained petrol pumps, food malls, and rest-
rooms at regular intervals, for the convenience of the travelling public.
Directional boards indicating the distance and location of these facilities
along with helpline numbers, should be clearly visible to the motorist.
State highways connect state capitals with district headquarters, main
cities, and towns in a state and with the highways of neighbouring states.
District roads and village roads connect towns and villages. They are
interior roads often inaccessible during monsoons.
Railway tracks Like roads these are also permanent ways for trains with
a route length of approximately 62,000 kilometres in India and are divided
into nine zones namely the Central, Eastern, Northern, North Eastern,
North East Frontier, Southern, South Central, South Eastern and Western,
and Konkan Railways. There are three gauges (distance between the
two rails) namely:
1. Broad gauge (1.67 metres), operating on main trunk routes
2. Meter gauge (1 metre), operating on feeder lines
3. Narrow gauge (0.76 and 0.61 metres), operating only in difficult
terrain
The largest rail networks are in the USA, Canada, China, India, and
Russia which link remote areas. Local trains have their own network in
the city which is used by both the local people as well as the tourists.

Terminals
Terminals form an important part of transportation systems. They facilitate
the movement of passenger and freight traffic. Terminal facilities of
airways, roadways, railways, and waterways are discussed as follows:
Airways Airports should have all basic facilities for international and
domestic carriers to land and take-off such as:
74 Tourism Operations and Management

¢ Air Traffic Control (ATC) tower to monitor the movement of aircraft

in the air and on the ground;
¢ runways for planes to take-off and land and taxiways or roads which
connect to the runway;
¢ hangars or sheds for repair and maintenance of aircraft,
¢ loading aprons or overhead bridges for passengers and cargo to be
loaded;
¢ designated parking zones for all types of private cars, coaches, and
taxis; and
* cargo terminals, baggage claim areas, ticketing counters, etc. as well
as passenger facilities.
Some international airports, such as Changi Airport, Singapore, and
Schiphol Airport, Amsterdam are beautiful destinations offering all tourist
facilities.
Roadways Interstate bus terminals, bus stands, taxi stands with timetables
and fares and basic facilities should be developed and maintained. Tourist
coaches for sightseeing and open top buses are available at popular
destinations.
Railways Railway stations with retiring rooms and up-to-date
information on arrival and departure schedules of all trains is necessary
along with basic facilities for travellers. The Indian Railway Catering
and Tourism Corporation Ltd (IRCTC) is working towards improvement
of all services at railway stations.
Waterways As sea and rivers are provided by nature, there is no building
cost except for construction of terminals like docks for receiving ships,
ports to load and unload cargo, jetties or piers for ferries to land which
are to be built. For this reason cost of transportation is lw compared to
other modes of transport.
Parking areas There should be adequate parking space provided
especially at all tourist attractions, accommodation, restaurants, etc. All
vehicles should be parked in the designated parking areas to prevent
traffic congestion and road blocks, which influence not only the tourists’
movements but are a nuisance to the local people as well.

ACCOMMODATION
Travellers and tourists need lodging for rest, sleep, luggage storage, etc.
while they are on a tour. Roadside inns were built for weary travellers
during the primitive times. Today, the hospitality industry is one of the
 Tourism Infrastructure 75

top 10 largest industries and is growing by leaps and bounds to meet the
demands of the increasing volume of tourists. Accommodation in the
form of low budget lodges to world-class luxury hotels is available at all
major tourist destinations to provide a home away from home to the
travelling public. Exhibit 4.1 shows some important facts regarding tourist
accomodation.
There are various types of accommodation which are being used by
tourists regularly. Figure 4.2 lists the different types of accommodation

Exhibit 4.1 Some important facts regarding tourist accommodation

Tourist Accommodation: Some Important Facts

e All tourists do not pay for their accommodation, for example, tourists staying in
private homes with friends and relatives save on accommodation expenses.
¢ Some tourists own the accommodation, for example, second homes, caravans,
and timeshare apartments.
e¢ Sometimes accommodation is mobile and can be moved from one place to another,
for example, caravans, tents, and houseboats.
e Accommodation not built for tourists is used as tourist accommodation, for
example, rooms in school and university campus, hostels during midterm breaks
or vacations, paying guest accommodation in the host population’s homes.
e Providing extensive services are not an essential part of the accommodation,
for example, holiday homes, camps, caravans, etc. are forms of non-serviced
accommodation.
Source: Adapted from Accommodation Classification, Keyser (2002).

Types
of
eee Accommodation preTa

International hotels Tourist lodges

Apartment hotels Tourist bungalows
Commercial hotels Government guest houses
Floating hotels (a) Dak bungalow
Capsule hotels (b) Circuit house
Transit hotels (c) Forest lodges
Heritage hotels Youth hostels
Boutique hotels Bed and breakfast accommodation
Motels Camping sites
Resorts Railway retiring rooms
Timeshare apartments Dharamshalas
Holiday homes

Fig. 4.2 Types of tourist accommodation

76 Tourism Operations and Management

available for tourists. A brief description of various types of

accommodation is given as follows:

Hotels
Hotels are a vital and essential part of the tourism and hospitality industry.
Due to the increasing volume of tourists travelling, government should
provide proper infrastructure to boost tourism. More hotels must be built
to keep up with demand.
The dictionary defines hotel as ‘a place supplying board and lodging’.
Today, the hotels provide not only accommodation and meals but also
various other services as per the needs of the guests such as massage
parlours and cultural programmes.

International or star category hotels

These are the modern western style hotels, which are mostly found in
the metropolitan cities, major tourist centres, and large cities at prime
locations. These hotels have been classified on the internationally accepted
star grading which ranges from five star deluxe to one star grade
depending on the services and facilities provided by these hotels. Some
of the facilities provided by five star hotels include information desks,
conference rooms, travel desk, restaurants, banquet halls, room service,
swimming pool, gymnasium, health clubs, shopping arcades, beauty
parlours entertainment programmes, etc. Many of the hotels are luxury
hotels and owned by public companies and controlled by a board of
directors. Some hotels are chain hotels operating under a common brand
name. The luxury hotels offer the highest standards of excellence through
highly trained staff, high level of comfort, and efficient service.

Apartment or residential hotels

These hotels can be described as residential homes with hotel services
and for this reason are often referred to as apartment hotels. These hotels
are situated in large cities and mostly have European plan, i.e. only room
and no meals. The rooms, which may be furnished or unfurnished are
sold out on a monthly or yearly basis. The rents are usually collected
monthly while the billing is done weekly.
The concept of apartment hotels started in America. A maid, clean
linen, dining room, room service and, possibly, a cocktail lounge and
certain other amenities are usually provided at the apartment hotel. These
hotels are very popular in the USA and Europe and are gaining popularity
 Tourism Infrastructure 77

in India as well. One example of an apartment hotel is Seasons, An

Apartment Hotel, in Pune.

Non-star or commercial hotels

These hotels cater to the individual tourists for business purpose, the
middle budget tourists, and their repeat guests. The location of these
hotels is mainly near the business or commercial centres. Besides
accommodation these hotels provide parking space, restaurants and,
sometimes, business facilities for their guests.

Floating hotels
These hotels are mainly located on the surface of the water, which can
be on seawater or river water or even on a lake. The facilities and services
of these hotels are similar to those of a regular hotel. At many places the
old ships have been converted into floating hotels and are very popular
with the tourists. For example, Queen Elizabeth II, a cruise ship, is now
being brought to Dubai as a floating hotel.
In India, houseboats at Kashmir and Kerala are quite popular with
the tourists. Figure 4.3 shows houseboats floating on the picturesque Dal
lake at Kashmir. The houseboats have elegantly furnished rooms with
wall-to-wall carpeting, hot and cold water, and exquisite crockery and
cutlery.

Fig. 4.3 Houseboats

78 Tourism Operations and Management

Capsule hotels
A capsule hotel was first opened in Osaka, Japan in 1979. These are
budget hotels present not only in Japan but also in other major cities of
the world. These hotels cater primarily to the business tourists.
The capsule is a box made of glass reinforced plastic or cement, which
is open either at one side or one end to provide facilities similar to a
traditional hotel such as bed, television, flexible lighting, a box for
valuables, and a table for writing. The rooms in a capsule hotel are lined
up similar to that of a double decker, along with a central aisle comparable
to a sleeping compartment of a second class AC train. Toilets, washrooms,
vending machines, and lounge area are located on each floor close by. A
central computer system monitors its functioning. Close circuit TV
cameras are also installed for security purpose.

Transit hotels

These hotels are located near the airports. These hotels are also called
airport hotels. They cater specially to the transient passengers and airline
crew who are waiting for a connecting flight and need a place to rest or
stay for a few hours to a few days. The transit hotels provide temporary
accommodation to passengers who need not wait at the airport because
of delayed or cancelled flights. Centaur Hotel in Mumbai is an example
of a transit hotel.

Heritage hotels
Many of the old properties of the royal and aristocratic families like castles,
palaces, forts, and havelis have been converted into hotels. These
properties are renovated and the majestic grandeur and splendour is
recreated for the tourists’ experience. In the Indian states of Rajasthan
and Gujarat these heritage hotels are an attraction, for example, Lake
Palace, Udaipur, and Umaid Bhavan Palace, Jodhpur. Other examples
of heritage hotels are castles such as Paradors in Spain, Posadas in Portugal,
Chauteaux in France, and Schlosse in Australia. The guests are treated
as nobles or members of a royal family at these heritage properties.

Boutique hotels
These are designer hotels based on a theme which provide luxurious
personalized services and facilities to their clientele. They are generally
smaller in size than the branded hotels and have thirty to hundred rooms.
 Tourism Infrastructure 79

These hotels appeal to the aesthetically inclined, sophisticated, modern

international traveller, who chooses a hotel based on attitude, values,
and lifestyle.
Rooms and guest areas are designed by contemporary designers for
an innovative hotel experience.

Motels

Motels are generally located along busy highways and cater primarily to
the transient, cost conscious travellers. Earlier the motels used to provide
only parking space but now with the changing time many motels provide
extra amenities such as restaurants, television, swimming pool, business
facilities, etc. These motels also attract pleasure tourists who are on
vacation.

Resorts

Resorts mainly cater to tourists for rest, relaxation, and recreation. Resort
hotels are mostly located near the seaside, at hill stations, in wildlife
sanctuaries or national parks. These resorts provide indoor recreation
activities as well as other amenities such as swimming pool, tennis court,
skiing, boating, surfing, etc. The rooms are generally larger than the other
type of hotels and often provide kitchen facilities since most families
may stay for several weeks.
The resorts are classified on the basis of climate and topography, which
are as follows:
1. Summer resorts
Winter resorts
Hill resorts
Health resorts
esAll seasons resorts
oe

Timeshare apartments/condominiums
The concept of timeshare originated in the 1960s and has been popular
since the 1980s and 1990s. The timeshare offers the consumer stay in an
apartment, resort or any type of hotel for a fixed period of time, each
year with various facilities and amenities. It is the advance purchase of
time in holiday accommodation. The period of time usually sold is for a
week, 15 days or even a month.
The timeshare concept of holiday has now become a global product.
Consumers have the option of more than 5000 worldwide timeshare
80 Tourism Operations and Management

resorts to choose from. For example, Club Mahindra Holidays offers

timeshare holidays to Indian customers.

Supplementary Accommodation
Supplementary accommodation includes accommodation for tourists,
but not necessarily hotel service.
A large proportion of the hospitality operations is not yet organized
or categorized and does not have any grading also. Supplementary
accommodation is of importance to the tourism industry and a large
number of tourists prefer this kind of accommodation since it is
economical.

Tourist lodges
The rooms in these lodges are moderately furnished. These lodges provide
simple accommodation at a reasonable price with facilities such as an
attached bath with hot and cold running water, dining room, laundry,
parking, room service, etc. and at some places, bar and car rentals. These
are generally located at railway stations, bus stands, etc.

Tourist bungalows
This is another inexpensive supplementary accommodation at important
but out of the way places. Tourist bungalows are situated at tourist centres
and are moderately maintained. These bungalows cater normally to
middle class, budget travellers, and youth.

Government guest houses

These are government run and offer inexpensive accommodation and
at times free or minimum priced accommodation for government
employees. The guest houses are moderately furnished and available at
a very low cost. There are also dak bungalows, circuit houses, PWD houses,
and forest lodges which are run by the government. The dak bungalows
are small rest houses, having limited number of rooms. These bungalows
are only for the bona fide travellers or government officials. The circuit
houses are superior as regard to the facilities offered. They are meant
for high level government officials and run by the respective state
governments, for example, Jodhpur Circuit House is run by the Rajasthan
State Government.
The guest houses, dak bungalows, and circuit houses provide the
services of a cook and attendant. Forest lodges are located inside or near
 Tourism Infrastructure 81

the wildlife sanctuaries and national parks. For example, the Bharatpur
Forest Lodge, Rajasthan.

Youth hostels
Youth hostels offer clean, simple, and inexpensive accommodation to
the youth travelling independently or in groups for holiday or educational
purpose. Youth hostels are controlled by non-commercial organizations,
whose basic objective is the development of youth tourism. Here, the
young people of different social backgrounds and nationalities meet and
come to know each other. The facilities provided are very basic. There
are dormitories and double rooms for a limited stay and at a very low
price. The guests share a common washroom and can prepare their own
meals. Youth hostels are very popular with students and budget travellers.
They function at the national and international level. For example YMCA,
YWCA, and Yatri Niwas.

Bed and breakfast (B&B) accommodation

This type of accommodation has its origin in Europe where families let
out their extra rooms to tourists to supplement hotel accommodation
during the peak season. The facilities include comfortable rooms and a
complete English breakfast which could sustain the traveller for the full
day. Many of the private households now offer bed and breakfast to the
tourists. In India, the India Tourism office has a list of people who provide
these services. The guests get a full breakfast, a room, and an attached or
shared bathroom at a price. Bed and breakfast is very common in Kerala
where foreign tourists stay with a family at a given price and also learn
and enjoy the culture of the host.

Caravans/camping sites/camping grounds/tourist camps

These provide facilities such as parking, tents, water, electricity, common
toilets, and washroom, etc. In some camps, there are cooking facilities
also. Read about recreational vehicles in Chapter 5 for further detail.

Railway retiring rooms

The railway retiring rooms are provided by the railways to their bona fide
railway passengers holding confirmed and current tickets. The rooms
are moderately furnished and reasonably priced. Dormitories are also
available. The meals are served from the railway canteen. The retiring
rooms are situated within the railway station premises.
82 Tourism Operations and Management

Dharamshalas

This accommodation is available for pilgrims and low-budget travellers

at religious sites. Simple meals are also provided.

Holiday homes
They provide furnished apartment type accommodation along with
cooking facilities to tourists who would like to prepare their own meals,
at areasonable price. This type of accommodation is available at popular
tourist destinations especially in hill stations and is preferred by families
on short holidays.

FOOD AND BEVERAGE

All tourists and travellers require catering services at the destination.
Catering outlets to suit all budgets and levels of tourists ranging from
food stalls and dhabas to fine dining restaurants are seen at all destinations.
Most residential commercial establishments like hotels, motels, resorts,
etc. have their own specialty restaurants and 24-hour coffee shop in the
premises and may also offer room service facilities. They provide a variety
of cuisines depending on the profile of the guests and the specialty
restaurants in the hotel. High standard of cleanliness and hygiene are
expected from star category hotels, and restaurants are graded on the
basis of the hygiene and sanitation they follow. Figure 4.4 shows various

Commercial Food
and
— Beverage Outlets erate

Residential Non residential

Hotels Variety restaurants
Motels Specialty or fine dining restaurants
Resorts Fast food restaurants such as
Pizza Hut,
McDonald's
Guest houses Coffee shops
Dak bungalows Bars and pubs
Holiday camps Lounges
House boats > Delicatessen and salad bars
Youth hostels Food stalls
Dharamshalas Ice cream parlors
Vending machines
Dhabas
Food courts in shopping malls

Fig. 4.4 Types of commercial food and beverage outlets

 Tourism Infrastructure 83

Attractions

Natural Built Social Cultural

attractions attractions attractions attractions

Fig. 4.5 Types of attractions

outlets where tourists can get their meals. The food vendors are also
required to have a licence issued by the government and are subjected
to stringent checks on quality of food being served. International fast
food restaurant chains such as Pizza Hut, Kentucky Fried Chicken, Mc
Donald’s, etc. offer quick service and takeaway options to tourists.

ATTRACTIONS
In Chapter 1, we have broadly classified attractions into four basic
categories namely natural attractions, human-made or built attractions,
cultural attractions, and social attractions (see Fig. 4.5). In this chapter
we will further elaborate on this classification.
Detailed classification of various types of attractions is as follows:
Natural attractions
Built attractions
Business attractions
Relatives and friends
Historic attractions
Cultural or ethnic attractions
Special events such as Commonwealth Youth Games
Medical attractions
Religious attractions
Ce
eee
ree
eee
a
—" Government attractions
Attractions or the fourth ‘A’ of tourism forms the core of the tourism
experience and the reason people travel to a particular destination. The
other constituents of the tourism industry such as accommodation, transport,
food and beverage, etc. depend on the existence of attractions at the
destination for their survival. The main attraction may be a stand-alone
unit or a cluster of many smaller attractions and activities at one place.
It is not easy to categorize attractions and there is likely to be some
overlap. Almost anything can be an attraction, and appeal to a person
84 Tourism Operations and Management

according to his/her age, interests, etc. Attractions can be grouped into

10 categories based on the strongest pull factor or motivator.

Natural attractions
These include dominant land or water features, flora, fauna, climate, etc.
that may form the main attraction or provide supporting features of most
attractions. Tourists from all over the world flock to the Mediterranean
region to enjoy the pleasant climate all year round. The Alps in
Switzerland is another world famous natural attraction. People view the
Niagara Falls from Buffalo, USA or flock to Niagara Falls, Ontario state,
Canada to view the magnificent Horseshoe Falls which does not freeze
even in the coldest winter months.

Built attractions
This is a very large category which includes resorts, amusement or theme
parks, etc. for example, the Ocean Park at Hong Kong, Sentosa Island
Resort at Singapore, Disney World at Orlando, USA, etc. These attractions
are beautifully developed and spread over hundreds of acres of land and
water. The Ocean Park uses natural attractions such as land features for
the rope car, flora and fauna from water and land as attractions as well as
a built environment and manmade rides and shows, making it a very
popular theme park. These attractions are commercially profitable and
have great appeal because of excellent planning and wide range of
services, which they offer.
Built attractions require facility construction and complement the
already existing tourism in the area. They include zoos, aquariums, sports
stadiums, etc. The Butterfly Conservatory at Niagara Falls, Canada is a
built attraction, which complements the Horseshoe Falls.

Business related
Metropolitan areas are centres of business activity, complete with
information technology, manufacturing, finance and government offices,
which attract business tourists for launching new products, MICE
activities, etc. Resorts in hill stations and rural areas are developing
conference facilities to attract business tourists especially during the lean
season.

Friends and relatives

This is a major attraction or travel motivator especially in our country.
Friends and relatives draw people to visit them along with their guests,
 Tourism Infrastructure 85

especially if they live in the vicinity of another attraction. People travel

to reinforce personal relationships and tourism professionals do not need
to put in special efforts for this type of attraction.

Historic attractions
Heritage buildings, remains of old civilizations, monuments, and places
where significant events occurred in the past are major attractions specially
if accompanied by interpretation which creates interest by informing,
entertaining, educating, and explaining the significance and relationship
of the attraction with our daily life. The Government of India is restoring
and preserving relics of the past to keep history alive, for example, the
Cellular Jail at Port Blair has a sound and light show where historical
events come alive through interpretation and visitors get the feel of the
freedom struggle.

Cultural attraction
These depict the way of life of people from different cultures, i.e. how
people live, their customs and traditions, fairs and festivals, food habits,
etc. which may seem unique for visitors from other cultures. These
attractions need to be preserved and sentiments of the host culture should
be respected, as these are sensitive issues. For example, the northeastern
states of India attract many tourists interested in the culture of the tribes.

Medical attractions
Preserving one’s health has been a popular reason to travel with the
discovery of the curative powers of mineral springs. Health spas, health
resorts, or sanatoriums for convalescents and famous spas using ayurveda
and herbal oil massages are now popular at many destinations. Specialized
diagnostic and treatment centres at renowned hospitals are attracting
patients from all over the globe.

Special events
Special events for short duration held annually or at regular intervals act
as attractions during that period. These are specially organized and may
be international mega-events such as the Olympic Games,
Commonwealth Youth Games (CYG), etc. Specially organized festivals,
such as the Pune festival in September every year draws thousands of
visitors from all walks of life and showcases community values and the
culture of Maharashtra.
86 Tourism Operations and Management

Religious attractions
Religion has been a strong travel motivator since ancient times. The
element of faith is what attracts tourists to pilgrim sites more than the
tourism facilities present in the area. Some of the famous religious
attractions are Vatican City, Rome; Jerusalem; Mecca, the birth place of
Prophet Mohammed; and the Buddhist circuits in India.

Government attractions

National capitals and state capitals have government headquarters,

monuments, and museums that serve as tourist attractions, for example,
the White House in Washington DC, the Parliament House in New Delhi.

TELECOMMUNICATIONS
Telecommunications or communication by transmission of signals by
transmission towers through various networks is necessary at the
destination. This is because communicating to our near and dear ones
practically every day is the modern way of life. Satellite communication
has improved the speed and quality of our communication and has made
it possible for us to connect even to remote villages. Telephones form the
backbone of modern communication and are now an affordable means
of communication. They are reliable for long distance communication
and with the advent of technology, the clarity of voice is excellent even
if the caller is halfway across the globe.
Telecommunication networks at the destination should include the
following:
e Public telephones—ISD, STD, and PCO booths
e Mobile phones and calling cards
e Internet cafes
e Computers and videoconferencing
¢ Television
¢ Radio
e ‘Telex, facsimile

ESSENTIAL SERVICES
Every destination should have adequate water supply and drinking water
should be potable to prevent the spread of water borne diseases. Drinking
water fountains are conveniently located for the locals as well as the
 Tourism Infrastructure 87

tourists all over the USA while water needs to be purchased in Europe.
Water bodies should be cleaned regularly to prevent breeding of
mosquitoes and pollutant levels should be checked. At some destinations
where drinking water is inadequate, it is imported and sea water is treated
and used for other purposes. Water desalination plants, recycling, and
purification plants are set up to provide sufficient water to the people.

Electricity
A continuous supply of power or electrical energy is needed with a back
up system for all the constituents of the industry to perform efficiently.
Other alternative sources of energy like solar energy should be used
wherever possible.

Waste disposal and sewage treatment plants

These are necessary to prevent solid wastes from building up in the vicinity
and untreated sewage (liquid waste from the toilets, bathroom, and kitchen
drains) from getting into our water supply.

Health facilities
These should be easily available at any tourist destination. Hotels and
other tourist accommodation should have care centres to provide medical
care. For specialized care, tourists have to visit clinics or hospitals located
in the area.

Security
It is another prerequisite at a tourist destination. Tourists would avoid
visiting a particular place unless they feel that they would have a safe
stay there. Hence, security arrangements in terms of police or security
guards patrolling the area, etc. are essential to ensure safety of the tourists
and also the local people.

OTHER SERVICES
This would include shops and emporiums as well as duty-free shops to
attract tourists, foreign exchange money changers, banks, etc. Under the
Global Refund GST Scheme, many shops at popular tourist destinations,
offer tax-free shopping to tourists only. Duty-free shops, which sell goods
free from local taxes and duties, are located mainly at important airports,
train and ship terminals, etc. Foreign exchange money changing services
are available for tourists to meet their foreign exchange requirements.
88 Tourism Operations and Management

Automated teller machines (ATMs) are placed in easily accessible

locations, enabling travellers to withdraw cash, check balance, etc.
The state tourism departments in India have offices and counters at
important entry points or transportation terminals such as airports, railway
stations, bus stands to guide tourists. Information brochures, road and
rail maps, etc. are distributed free of cost at many destinations. Also
available are tour guides or escorts who take the tourists for sightseeing
(refer to Chapter 7).
Adequate infrastructural facilities are thus necessary at the destination.
Destinations having excellent facilities in terms of accessibility and ease
in crossing borders, as well as developmental facilities and amenities will
receive more tourists than destinations with poor facilities. If tourism is
to be promoted it is necessary to check that tourists have no hassles in
reaching the destination and can stay in a clean, safe, and secure
environment with good food and accommodation.

SUMMARY
Tourism infrastructure includes a vast number of structural elements—visible
and invisible which are interconnected and which make it simpler for a person
to travel. Some of these elements are located below the ground such as pipelines
transporting water, sewage, under ground cables while others such as buildings
which house hotels, restaurants, etc. are above the ground. Tourism infrastructure
includes all facilities which will make the trip comfortable and memorable without
any barriers or obstacles while travelling. It includes easy accessibility, well-
developed roads with wayside facilities, clean environment and accommodation,
variety of attractions, safety and security, excellent communication networks,
choice of cuisine, shopping facilities, etc.
Infrastructure needed for all types of transportation is covered in this chapter.

KEY TERMS

Hotel chains Many hotels providing the same level of service in terms of
accommodation and catering under a common brand name, located in various
locations of the country or region.
Infrastructure The basic public services such as roads, water, electricity,
sanitation, health, security, communication, airports, railways, public
transportation, etc. needed for developing tourism.
Interpretation Explaining the significance of the attraction to visitors so as to
enhance visitor appreciation, stimulate a desire to learn more and enjoy
 Tourism Infrastructure 89

resources with minimal impact. The purpose of interpretation is to inform,

entertain, educate, and provide a frame of reference for the site.
Motel Accommodation located on a highway which provides basic facilities.
Restaurant A commercial food and beverage service facility.
Supplementary accommodation Various types of accommodation for travellers
such as lodges, government guest houses, youth hostels, camping grounds,
etc. excluding conventional hotels.
Tourism infrastructure A complex system of all interconnected structural
elements and policies which makes travelling easy.

CONCEPT REVIEW QUESTIONS

1. Classify tiie various types of hotels.
2. Briefly discuss the infrastructure needed for communication, purchasing
souvenirs, and preventing water borne disease at a destination.
Wo Discuss the important tourist attractions in your city.
4. Explain the following:
(a) Role of youth hostels
(b) Government guest houses
(c) Natural attractions

CRITICAL THINKING QUESTIONS

1. List the names of and the type of accommodation available to high-spending
tourists in your city.
2. Comment on the transportation infrastructure in your city. As a tourism
planner, what steps would you take to improve on the same.
3. List any 10 food outlets in your city and mention which category they
belong to.

PROJECT/ASSIGNMENT
Visit any four or five star hotel in your area and prepare a detailed report on the
different facilities offered to the guests. On the basis of your findings, categorize
the hotel.

REFERENCES
Andrews, S. 2007, Introduction to Tounssm and Hospitality Industry, Tata McGraw-
Hill, New Dethi.
90 Tourism Operations and Management

Bhatia, A.K. 2001, International Tourism Management, Sterling Publications

Pvt Ltd, New Delhi.
Brochures of National Tourism Boards.
Gartner, W.C. 1996, Tourism Development: Principles, Processes, and Policies,
Van Nostrand Reinhold, USA.
George, R. 2007, Managing Tourism in South Afnca, Oxford University Press
Southern Africa, Cape Town.
IGNOU Schools of Social Sciences TS-1 Foundation Course in Tourism 1994,
Tourism Marketing and Communications, Berry Art Press, New Delhi.
Keyser, H. 2002, Tourism Development, Oxford University Press Southern Africa,
Cape Town.
Kotler, P., J. Bowen, and J. Makens 2005, Marketing for Hospitality and Tourism,
Third Edition, Pearson Education, Delhi.
Negi, J. 1990, Tourism and Travel: Concepts and Principles, Gitanjali Publishing
House, New Delhi.
Weaver, D. and M. Opperman 2004, Tourism Management, John Wiley and Sons
Inc.
 3 ea

Tourist Transport

Learning Objectives
After reading this chapter you should be able to:
¢ understand the importance of transport in the tourism industry
know the various modes of transport available to tourists
understand the importance of transport as an attraction
know the advantages and disadvantages of different modes of transport
appreciate the efforts taken by the public sector in promoting tourism in India

INTRODUCTION
Ye have already read about the basic infrastructure needed for
transport in the previous chapter. This chapter introduces the
various modes of transport available to reach the destination
and to see the various attractions at the destination. It highlights the regular
and unique vehicles used for transportation in the tourism industry.
The transport industry has gained a vital place in the global network
system and is one of the most important components of the tourism
infrastructure. It has now become easier for people to travel from one
place to another because of the various modes of transportation available.
As we have already read in Chapter 2 the earliest forms of transport in
92 Tourism Operations and Management

the ancient times were animals on land and sails at sea. Travel developed
from the need to survive, to expand and develop trade to far off countries,
and the hunger to capture new lands and territories. This was followed
by the use of steam and electricity in the nineteenth century followed by
internal combustion engines. Aircraft with jet engines were introduced
in the 1950s. With the development of technology, travel became faster
and more and more people could travel around the globe.
Since tourism involves the movement of people from their places of
residence to the places of tourist attractions, every tourist has to travel to
reach the places of interest. Transport is, thus, one of the major
components of the tourism industry. To develop any place of tourist
attraction there has to be proper, efficient, and safe modes of transport-
ation. Transportation is vital to tourism. Studies have shown that tourists
spend almost 30-40 per cent of their total holiday expenditure on
transportation and the remaining on food, accommodation, and other
activities. This aspect once again highlights the importance of
transportation.
A tourist can travel by a variety of means. The tourism professional as
well as the tourist should be aware of the various modes of transport
available to reach the destination and at the destination.
The various modes of transport can be broadly divided into the
following three categories:

1. Air transport
2 leaned transport
3. Water transport

AIR TRANSPORT

Due to the growth of air transport in recent years, long distance travel
has become much simpler and affordable. Distance is now measured in
hours and not in kilometres. The world has indeed shrunk and become
a small village.
The development of air transport mostly occurred after World Wars I
and II. Commercial airlines were created for the travellers. Because of
the increasing air traffic, the commercial sectors also grew rapidly. Before
World War II, Swissair already was carrying around 14-16 passengers
between Zurich and London. The first commercial service was introduced
by KLM, the Dutch Airlines, in 1920 between Amsterdam and London.
Commercial air travel grew mostly after World War II. More facilities
 Tourist Transport 93

were introduced and there was more comfort in travel. Jet flights were
inaugurated by Great Britain in the year 1952. In the year 1958, Pan
American introduced the Boeing 707 service between Paris and New
York. Due to the introduction of jet flights, the year 1958 onwards saw a
tremendous increase in air traffic. The concept of chartered flights was
also introduced during this period.
Jumbo jets have revolutionized travel. A large number of people travel
by air because of the speed, safety, comfort, and economy in terms of
time saved.
The modern era, thus, is the era of mass air travel. After road transport,
air travel is the most popular mode of travel particularly for international
travel. For the business travellers, air transport is more convenient as it
saves their precious time and offers a luxurious and hassle-free travel.
Many airlines nowadays offer special facilities to the business tourist such
as Internet on board.
There are two types of airlines—scheduled and chartered. Scheduled
airlines operate as per the regular schedules. Chartered airlines or the
non-scheduled airlines operate only when there is a demand, mainly
during the tourist season. The chartered flights work out cheaper than
the scheduled carriers as they are operated only when there is high load
factor. Chartered flights provide cheaper packages to destinations such
as Portugal and Spain. India receives more than 200 chartered flights,
especially to Goa. Goa has maximum number of chartered flights coming
in during the months of December to January.
The International Air Transport Association (IATA) regulates
international air travel. IATA has more than 105 major airlines of the
world as its members. IATA regulates the prices of tickets on different
sectors of travel in the world. The concerned governments decide the
domestic fares. The airfares are normally determined on the volume and
the air travel demand in an area. For example, the airfare of London—
New York is lower in terms of mileage compared to the same distance
between London—Delhi because of high traffic between London and New
York.
The International Civil Aviation Organization (ICAO) is an
intergovernmental organization established in the year 1945. Only the
government of a country can become a member. The governments have
to enter into a bilateral agreement for the frequency of flights for operating
commercial airlines between them.
Airlines are classified into two broad categories namely small carriers
and large carriers. The small carriers also known as commuter airlines
94 Tourism Operations and Management

have less than 30 seats. The larger carriers, also known as major airlines
fly direct routes between the major cities and seat 100 to 800 passengers.
The recent boom in the aviation technology has certainly brought
some new developments to the airline industry. There has been a major
change in size of the aircrafts. Singapore Airlines Airbus 380 is a double
decker aircraft which seats approximately 800 passengers on flights from
Singapore to Sydney.
Every year there are a growing number of new airlines being intro-
duced. Because of the growing number of new private airlines there is
stiff competition among them. This has resulted in a considerable
reduction in air fares and has boosted the growth of air traffic. To woo
and attract customers, many airlines offer cheaper promotional fares such
as excursion fares, group fares, and apex fares.
Millions of tonnes of cargo and mail are also handled by the air
transportation industry.

Frequent Flyer Programmes

The frequent flyer programme (FFP) was introduced by a group of
American Airlines in North America as a marketing tool and to foster
brand loyalty among people who fly frequently. This programme was
mainly targeted for the business travellers. The passengers were given
mileage points for travelling every 1000 kilometres. If they travelled more
with a particular airline they earned more points. The frequent (loyal)
user of the company’s services earns free or discounted travel such as a
free upgrade in the plane or a free ticket for the traveller or his/her spouse
or even a free fly-cruise package, hotel stays, or other benefits in exchange
of the points. FFPs may be operated by a single airline or jointly by
airlines having an interline agreement. Air India has a FFP called ‘Flying
Returns’ in which members can accrue mileage points while flying on
Air India, Air France, and flights of Air India’s code share partners, and
redeem them for award tickets on Air India or Air France. Apart from
airlines, Air India has tie-ups with leading hospitality service providers
and members can earn additional mileage points to redeem their tickets
faster.

AIR TRANSPORT IN INDIA

The first scheduled airlines service in India was started by the Aviation
Department of Tatas on 15 October 1932, which was renamed as Tata
 Tourist Transport 95

Airlines. After World War II, it was closed down in 1945 and around 21
airlines started operation in India. In July 1946, Tata Airlines was renamed
as Air India. In 1952, after the government’s decision to nationalize air
services, all the existing airlines were merged to build two national
carriers—Air India for international services and Indian Airlines for
domestic services.

Air India
Air India is India’s national flag carrier and finest flying ambassador. Air
India inaugurated its first international service to London in June 1948.
The corporation was first set up on 15 October 1953 under the Air
Corporation Act 1953. Its main objective was to provide adequate and
efficient air transportation service covering international routes except
in countries such as Afghanistan, Myanmar, Sri Lanka, and Nepal.
Domestically, it connects major metropolitan cities to provide
international connection. It is one of the 20 largest [ATA international
airlines of the world.
The National Aviation Company of India Limited (NACIL) is the
entity into which Air India and Indian Airlines have been amalgamated.
The merged entity has a fleet of 148 aircraft, offering passengers seamless
travel across domestic and international routes and is called Air India
Limited.
Air India operates around 38 weekly services to four destinations in
the USA—New York, Newark, Chicago, and Los Angeles. The airline
also offers a daily nonstop flight between Mumbai—New York and Delhi-—
New York after the introduction of brand new Boeing 777—-200LR in its
fleet from August 2007.
The B777-200LR is technologically Air India Limited
the most advanced aircraft in the world
today. Passengers who travel on this
Domestic international
aircraft have access to 400 hours of video flights flights
and audio entertainment-on-demand
provided in every seat—first, executive, or economy class, by Thales,
world leaders in digital in-flight entertainment.
Flights to the UK have also been increased from 10 to 30. Out of
these 25 flights are for London and five for Birmingham. Similarly for
the South-East Asia and Far East sectors the airline has increased the
frequency of flights. Air India has also revamped its first class on all its
long haul aircrafts—Boeing 747—400s, for the India~London—New York/
96 Tourism Operations and Management

Fig. 5.1 Executive class seat in a Boeing

Chicago, India-Frankfurt-Chicago/Los Angeles and India—Paris-Newark

sectors by retrofitting 180-degrees flatbed seats in the first class. The
executive class of Boeing 747—400s and Boeing 777 have slumberettes—
160-degree recline seats, thus providing more comfort (see Fig. 5.1).
The cabins have been upgraded with new seats in the economy class,
state-of-the-art i4000 in-flight entertainment system, with audio-video on
demand, gaming and other interactive entertainment, has been installed
on every seat back.

Air India Express

To offer air travel options to passengers on a low budget, Air India has
introduced Air India Express, in April 2005. It offers 140 international
flights to 12 stations in the Gulf, including Dubai, Sharjah, Abu Dhabi, ©
and Al Ain in the UAE, Muscat, and Salalah in Oman, Doha in Qatar,
Bahrain, Singapore in South-East Asia, and Colombo in Sri Lanka. |

Air India network

Air India now provides direct services from various points in India. It
operates flights from Mumbai, and 12 other Indian cities, viz. Ahmedabad,
Amritsar, Bangaluru, Chennai, Delhi, Goa, Hyderabad, Kochi, Kolkata,
Kozhikode, Lucknow, and Thiruvananthapuram. Now passengers from °
these cities need not travel to Mumbai or Delhi, the traditional gateways,
for taking international flights. Passengers boarding or deplaning in these
cities can now complete their immigration and customs formalities at
their city airport, both at the time of departure and arrival. Additionally,
 Tourist Transport 97

Air India has increased its market access through code-sharing arrange-
ments with other international carriers such as Air France, etc.

Facilities on the ground

Air India’s lounge for transit passengers at Mumbai Airport provides
shower facilities, specially designed slumberettes, Wi-Fi, a gymnasium,
and a business centre. First and executive class passengers can use Internet
facility at the business centre, which is located in the Maharajah Lounge
while waiting for their flight to depart. There is a lounge for
unaccompanied minors as well. Air India has its own exclusive lounges
at Delhi, London, Hong Kong, and New York in addition to the one in
Mumbai. At other international airports, Air India has tie-ups with other
international airlines or local airport authorities for lounge facility.

Booking
The procedure for booking tickets has been simplified. For online booking,
passengers visit http://www.airindia.in/ and click on ‘Book Tickets Online
Now!’ and check schedules, ascertain the availability of seats and fares,
make reservations and pay by credit card. For online destinations,
electronic tickets or e-tickets are available for travel between certain online
points in India like Mumbai, Delhi, Hyderabad, Bangaluru, Ahmedabad,
Kolkata, Chennai, Kochi, and Thiruvananthapuram; and online points
in the USA—New York, Newark, Chicago, and Los Angeles. Figure 5.2
shows an electronic ticket.

( e TICKET/ITINERARY RECE PAN FRANCE <"

Lp *KIX KK KINKY >)
BILLET ELECTRONIGUE Lassie VOYAGE A a/
MBE la) OHH KKK
ia STAT WO) VALID BEFORE AR GAO: 18 Sal GAG ALOP
Oe PR vl CLASS DATE TARR RESA MOM VAL AVANTJACRES =HELO LIMOT SIF BadAdeS
We EA pO Po OD NOM CF 1BhH Oett » 10 Gd ae
POROES L£5 DADUSTON - IWTERCD MOOG =G IGJUN 104 oe *3UUW TRUK
SHOUGTON -— INTERODUPARIS — CHARLES D AFOO33 8G =G2JUL 1608 Zak >
OURS COPEES OID) ~~CHATRAPL PFOTIA GD OBNK 1080 a0)

nomena = XXXX YYYYY

PUL IG) WR 057 56754754435
EMIS/ISSED BY ZZZZZ TRAVELS /14352765 -. 70042008
Oe OF PATON
COORM & Pane:
iaie are IWRSSOOO aes IWR 25 106 6436
APP) Oe ONES UE Be CG TI

ET TREE OTE HiS ORS Nal GOK

AP STRICTIONSE ARE. RESTRICTIONS APPLY CARRI aim Met
eRANCcE
1:2 OS SERIES OS
BON VOYAGE ae. ? eae —-

Fig. 5.2 An electronic ticket

98 Tourism Operations and Management

Air India reservations can also be accessed from MTNL/BSNL land-

lines within India on the common toll free no. 1600 22 77 22, and from
mobile and private landline phones on Air India call centre numbers at
Mumbai, Delhi, and Bangaluru.

Hand baggage
For security reasons the Bureau of Civil Aviation Security, Government
of India, has banned passengers boarding an Air India aircraft from
carrying liquids, gels, or aerosols, which include beverages, sun tan lotions,
creams, toothpaste, hair gels, hair sprays, liquid cosmetics or any other |
item of similar consistency, exceeding 100 millilitres, except medicines,
inhalers, or baby food in their hand baggage or on person from 29
September 2006. This rule has been recently relaxed in certain sectors.
Similarly, to ensure safety of aircraft and passengers as well as the
convenience of fellow passengers, only one piece of cabin baggage of
specified dimensions can be carried in the cabin (see Table 5.1).

Air India holidays

Air India holidays are very popular and cover a wide range of destinations
in India and abroad. The latest being the Overseas LTC holiday packages
designed for people availing of the leave travel concession (LTC). The
Overseas LTC packages offer a combination of international and domestic
destinations.
Air India offers over 400 comprehensive package options covering
150 cities in 22 Indian states and ten international destinations including
London, Hong Kong, Shanghai, Singapore, Dubai, and Kuala Lumpur.
The Mainland China package introduced in April 2008 takes the traveller
to Shanghai, Beijing, Suzhou, and Hangzhou.
A package normally includes return airfares, airport transfers, and
accommodation in standard three to five star hotels, meals, and local
sightseeing, all at economical prices.

Table 5.1 Baggage specifications by an airline

=
Particulars No. of pieces Size Weight dl
Checked in 2 Max.158 cmeach 46 kg
Baggage (I x*B:e \H) (23 kg each)
Hand Baggage 1+ 1 personal brief-case, 56 cm x 45 cm x 7 kg
purse or laptop 25 cm
Note: Specifications vary from one airline to another and depend on the class of travel
 Tourist Transport 99

Air India’s logo

The earlier logo “The Maharajah’ of Air India has been changed to a red
coloured flying swan with the ‘Konark Chakra’ inside it.

Indian Airlines
Indian Airlines was established on 1 August 1953 and was given the
responsibility of providing air transportation within the country as well
as to the neighbouring countries. Indian Airlines, together with its fully
owned subsidiary Alliance Air, has a fleet of 93 aircrafts.
Indian Airlines is fully owned by the Government of India and has a
total staff strength of around 19,300 employees including that of Alliance
Air. Its annual turnover, together with that of its subsidiary Alliance Air,
is well over Rs 6000 crore (around USD 1.4 billion).

Indian Airlines network

Indian Airlines operates its flight from Kuwait in the west to Singapore
in the east and covers 76 destinations; 58 within India and 18 abroad.
The Indian Airlines international network covers Kuwait, Oman, the
UAE, Qatar, and Bahrain in West Asia; Thailand, Singapore, Malaysia,
and Myanmar in South East Asia; and Pakistan, Afghanistan, Nepal,
Bangladesh, Sri Lanka, and Maldives in the South Asia sub-continent.
Now Indian Airlines has been merged with Air India and the new
company is called Air India Limited. Indian Airlines takes care of
domestic flights while Air India handles international flights.

SECURITY OF AIRCRAFT AND PASSENGERS

To ensure the security of aircraft and passengers, security regulations
have been made more stringent than before. The passengers may have
to face some inconvenience during security checks. These security
regulations are framed by the Bureau of Civil Aviation Security and have
to be implemented by all operators.
Some of the security procedures are listed as follows:

¢ The passenger’s ticket is checked at the time of entering the terminal

building.
¢ At major airports, the checked baggage is passed through X-ray
machines and a ‘security checked’ sticker affixed before entering the
check-in area.
100 Tourism Operations and Management

¢ Passengers are checked through personal frisking, and/or doorframe

metal detectors and hand held metal detectors.
¢ The cabin baggage is either checked through X-ray machines or
physically examined.
Security personnel put a security stamp on boarding passes and cabin
baggage labels. In case of a ‘red alert’, a secondary security check is also
carried out near the stepladder before embarkation. Checked baggage
has to be personally identified by the passengers before it is loaded on
the aircraft. Wherever the boarding is through aerobridges, passenger
and baggage reconciliation is done through an internal matching system
instead of physical baggage identification. Ten per cent of the checked
baggage/cabin baggage is usually physically checked at random. If the
passenger wishes to come back from the security hold area after the
completion of security check, he/she has to get a fresh boarding pass in
place of the old boarding pass from IA check-in counters. The passenger
also has to undergo the security check again. This facility is available
only in extreme emergency.
Passengers need to report at the airport only 60 minutes prior to the
departure of any domestic flight. However, airports like Jammu, Srinagar,
and Leh require reporting time of 120 minutes before departure.
For international flights, passenger should report 150 minutes prior to
the departure for completion of immigration formalities.
Most of the airports are managed by the Airports Authority of India
(AAJ) and a few are under the control of the defence authorities. The
maintenance, including upgradation of facilities of navigational aids,
extension of runways, expansion of terminal buildings, etc. is under the
jurisdiction of the AAI. Indian Airlines pays various charges such as
landing, parking, and route navigation fee, etc. to the airport controlling
agencies for using the airport.
Indian Airlines offers special fares to travellers such as Discover India
fares, India Wonder fares, youth fares, and ship crew fares. These fares
are applicable for foreign nationals and Indians settled abroad.
Special fares offered by Indian Airlines on Indian rupee fare are
categorized under the following heads:
Armed forces and associated personnel discount Under this category,
a discount of 50 per cent on economy class Indian rupee fare is given to
armed forces personnel belonging to the Indian Army, Navy, and Air
Force. Ex-armed forces personnel, recipients of the National Bravery
Award, personnel from General Engineering Reserve Force, officers
disabled during war, and war widows. |
 Tourist Transport 101

Discounts offered on humanitarian grounds Discounts are offered to

visually challenged persons, cancer patients, persons suffering from 80
per cent or more locomotive disability, and passengers on stretcher.
Concessional fares These are offered to senior citizens, students, civilian
citizens, and recipients of gallantry awards.
Promotional fares ‘These are offered to families travelling to Port Blair,
Andaman and Nicobar islands.
Return fares These are meant for executive class passengers.
Night fares These are specially discounted fares for travel during night
time.
Excursion fares These are promotional fares usually for a round trip
and for a specified period of time.
Visit Taj fares These are special fares to promote Taj Mahal, Agra.
Easy fares ‘These are promotional fares offered on specified domestic
sectors of Indian Airlines. These fares are lower than the normal published
fares.
Apex fares These are lower fares which are available for sale up to 21
days prior to the date of departure on specified domestic sectors. Only
confirmed tickets can be booked under apex fare.
Bookings can be done online by visiting [A website www.indianairlines.in
or calling their call centre at 1800 180 1407.

Vayudoot
Vayudoot was established on 26 January 1982, as a subsidiary of Air
India and Indian Airlines. This airline was originally conceived to connect
inaccessible areas of the North-East and other regions and stations not
served by the Indian Airlines, which are important centres of trade or
commerce or from the point of tourism.
It had a fleet of one helicopter and 16 aircrafts. Vayudoot’s financial
performance was not satisfactory which led to its dissolution and merger
of its assets into Indian Airlines.

Pawan Hans Limited

Pawan Hans Limited, formerly known as Helicopter Corporation of India,
was incorporated on 15 October 1985 as a government company. The
corporation had been set up to provide helicopter services in India,
initially to the oil industry including ONGC. Now, it also provides services
102 Tourism Operations and Management

to backward areas and remote tourist places, for example, the northeastern
states in India.
Pawan Hans is India’s largest helicopter operator. It has a fleet of 36
helicopters. It is the first ISO 9001:2000 certified aviation company in
India.

Functions

The functions of Pawan Hans are to

e plan, promote, develop, organize, provide, and operate air support
services to meet the requirements of the petroleum sectors including
ONGC;
¢ provide scheduled and non-scheduled services by helicopters to
inaccessible areas for the carriage of passengers, mail, and freights; and
* operate tourist charters by helicopters and to undertake any other
operations that may be directed or requested by the government at
Jammu.
The corporation also started its own helicopter services on the Jammu,
Sanj, and Chhatkatra sector from 12 November 1987. The introduction
of this service has been welcomed, especially by the old and disabled.
Thousands of pilgrims have utilized this service to visit Vaishnodevi
temple at Jammu.

Private Airlines
In recent years, the Government of India has allowed private airlines to
operate and import aircrafts. Some of the popular private airlines are Jet
Airways, Kingfisher Airlines, Spice Jet, Go Air, and Indigo, which operate
hundreds of flights daily to over 59 destinations within India and overseas
including New York (both JFK and Newark), Toronto, Brussels, London
(Heathrow), Singapore, Kuala Lumpur, Colombo, Bangkok, Kathmandu,
Dhaka, Kuwait, Bahrain, Muscat, and Doha. Private airlines offer
electronic ticketing service which allows passengers to book tickets to
any destination on the airlines’ route network through the Internet.
Jet Airways (India) Ltd. has received the IATA Operational Safety
Audit (IOSA) Registration.

INTERNATIONAL AIR TRAVEL CLASSES

Airlines normally have three travel classes. Nowadays, more
long haul
airlines are introducing the premium economy concept. The
classes are
eeei ing JOUTSE Mansport 103
¢ first class, the highest quality of accommodation available;
¢ business class, high quality, traditionally purchased by business
travellers and sometimes called executive class;
* premium cconomy, slightly better economy class seating as seats are
not so cramped and there is greater distance between rows of seats;
the seats themselves may or may not be wider than regular economy
class; and
* economy class, also known as coach class, basic accommodation,
commonly purchased by leisure travellers.
On airlines used for short flights, there are only two cabins—business
and economy class cabins. The short-haul business class cabin is usually
designated as ‘first class’ in North America (domestic).
Some airlines merge their international first and business classes into
a premium business product (for example, Continental Airlines have a
business first class), whereas others supplement the business class cabin
with a premium economy class cabin. Some flights operated by Singapore
Airlines (using their Airbus A340-500 aircraft) offer only business and
premium economy class service. Some airlines, such as Japan Airlines
and Lufthansa, offer flights with only a business class service.
Most low-cost carriers only provide an economy class. The costs of
extra services and amenities offered in premium cabins are eliminated,
and more seats can be installed in the aircraft.

Fare Class
Within each travel class there are often different fare classes, relating to
ticket or reservation restrictions and used to enhance opportunities for
price discrimination. Passengers within the same travel class receive the
same quality of accommodation and may indeed sit next to each other,
however, the price or restrictions they face for that accommodation will
vary depending on the fare class.
Airline fare classes are commonly indicated by letter codes, but the
exact hierarchy and terms of these booking codes vary greatly from carrier
to Carrier.

First class codes

TLE RE
On domestic flights, F commonly indicates first class on a two-cabin
plane. If a three-cabin aircraft is used, P (premium) may be used to
104 Tourism Operations and Management

distinguish the higher level of service in first class. The R code indicated
supersonic transport and is no longer used with the retirement of the
Concorde. The A and Z codes may indicate a first class ticket whose fare
is reduced due to restrictions on refunds, advance reservation require-
ments, or other terms. A lowercase ‘n’ after any class code indicates night
service.

Business class codes

CFD
On many airlines, C or J indicates full fare business class, whereas
discounted and, thus, restricted and un-upgradeable fares are represented
by D orl.

Economy class codes

Full fare: Y, B, H; Standard fare: M, N
Special or discount fares: G, I, K, &.O, ©,S, T; U,V, W, X
On most airlines, unrestricted economy ticket is booked as a Y fare.
Full fare tickets with restrictions on travel dates, refunds, or advance
reservations are commonly classed as B, H, or M although some airlines
may use S, W, or others. Heavily discounted fares, commonly T or W,
will not permit cabin upgrades, refunds or reservation changes, may
restrict frequent flyer program eligibility, and/or impose other restrictions.
Other fare codes such as X are restricted for use by consolidators, group
charters, or travel industry professionals.
Most low-cost carriers have greatly simplified the fare classes and use
few codes only.

ROAD TRANSPORT
We have read in Chapter 2 how humans travelled from place to place in
search of food in the primitive era. They tamed animals such as the dog,
ox, horse, camel, reindeer, elephant, etc. for carrying loads and travelling.
After the discovery of the wheel, humans developed the cart, the chariot,
and the carriage. Until the seventeenth century, horses were used for
travelling. Later on better roads were constructed and some of these
roads developed into trade routes, which linked many countries. One of
them is the Silk Route, which was used for transporting silk from China
to Persia and the Blue Gem road from Iran to Afghanistan and India.
The road systems of the Roman empire developed an efficient transport
 Tourist Transport 105

network covering almost all of the Mediterranean and Western European

countries. These roads were constructed with the main motive of military
use besides trade and sightseeing. The Chinese roads were magnificent
with many bridges. Most of the roads constructed were crooked to give
a slip to evil spirits. Ancient India also had a vast and developed road
network, which linked the administrative cities and religious places. There
were sarais and dharamshalas offering rest, food, and water facilities en
route. In the sixteenth century, the coach was introduced which was
drawn by horses.
Today, the most popular and widely used mode of road travel is the
automobile or the car. Road transport is dominated by the automobile,
which provides views of the landscape and the freedom to travel. Tourists
often travel with their entire family for holidays.
To promote tourism, the vehicles required are coaches and tourist
cars. Tourist coaches or buses are preferred for large tourist groups
travelling together on a specified tour itinerary. Coaches are of different
types, with seating capacity ranging from a 14-seater minibus/tempo
traveller, to a 35-seater bus and 50-55-seater bus used for sightseeing.
Special motor coaches equipped with large glass panes, guides, public
address system, and many other amenities such as washroom facilities
are used for tourist buses, for example, in Greyhound buses.
Many tourists prefer to travel in comfort and privacy and hire cars.
Cars of various makes and standards are available on rental basis. Air-
conditioned luxury cars are required for meeting the requirements of
sophisticated foreign and business tourists. The state tourism development
corporations (STDCs), travel agents, tourist transport operators, and hotels
operate such coaches and cars.
Tourists also use their own motorcar when holidaying. ‘Motorail’, i.e.
cars and coaches carried over long distances by train facility is also
available in some countries.
The car rental segment of the tourism industry is in a very advanced
stage in foreign countries. The client can book a car, himself or through
agents, and make it wait at the desired place at the destination. The client
can then drive the car himself/herself on reaching the destination. On
releasing the car on his/her return trip, he/she can make the payment
along with the fuel charges. In some cases, he/she makes the payment to
the suppliers through the travel agencies. In India, this particular segment
is not so common with the tourists. The car is provided along with the
driver who in turn takes the client around as per the client’s wish. Though
the self-drive option is being recently introduced in cities, in most parts
106 Tourism Operations and Management

of India the system of chauffeur driven cars is prevalent. Inadequate

road directional signs, narrow and poorly maintained roads may be some
of the reasons.
Some of the worldwide car rental agencies are Hertz rent-a-car, Euro
car, Budget rent-a-car, Aloma rent-a-car, Avis, etc.
Recreational vehicles (RVs) have become popular in the recent decade,
especially so in the USA. The cost of travel is very less as the travellers
have their own services such as meal preparation and accommodation.
The tourists travel with their families in their vehicles to get a break from
their daily lifestyle. They look at it as a form of vacation despite the fact
that they have to make their own beds and wash their own dishes. The
money saved on accommodation can be spent on shopping and visiting
places of attraction.

Table 5.2 Various Modes of Transport at a Glance

Form of transportation Brief description and examples

Road Transport
Buses or motor coaches 35-55 seaters of state transport undertakings or privately owned AC deluxe,
AC semi-deluxe, non-AC buses.
Shuttle buses for passengers in transit. For example, shuttle buses ply
transit passengers from Changi Airport to Singapore city and back. Visa free
transit facility helps in attracting tourists to see Singapore and also promotes
the destination.
Open top double decker buses which give passengers a panoramic view of the
city are most popular for tours at many destinations.
Minibuses, maxicabs and Small passenger vans where routes may or may not be fixed.
matador vans Maxicabs are popular in South-East Asia. These have a smaller capacity and
are used for sightseeing. They also include recreational vehicles (caravans/
vans furnished with basic living amenities).
Cars AC and non-AC taxis or cars on rent which may be chauffeur driven or self
driven. A wide choice of automobiles of various makes and models is available
to suit all budgets and includes luxury cars/limousines.
Taxies are the most popular mode of transport at all destinations.
ATVs All terrain vehicles—two, three, and four wheelers to travel over difficult
terrain.
Other forms Auto rickshaw—three wheeler transport, carries two to three passengers in
towns and cities.
Snow mobile—land vehicles designed to move on snow or ice.
Motor cycles—popular in Goa. Pillion rides are given to tourists at nominal
charges.

Contd
 Tourist Transport 107

Table 5.2 Contd

—
Form of transportation Brief description and examples

Animal power Bullock carts in rural India, sledges, horse carriages.

Mules at Vaishnodevi Temple, Jammu, and Yaks at Sikkim.
Human power Cycle rickshaws and hand-pulled rickshaws in Nagpur, India.
Rail Transport
Super fast trains TGV (World’s fastest passenger train).
Express trains Fast trains with superior dining car facility and comfortable seats/berths
which halt at very few stations, for example, the Rajdhani Express (India),
Shatabdi Express (India).
Mail Fast trains which halt at select stations only, for example, Punjab Mail.
Passenger Trains which are slow and halt at all stations en route, for example, Solapur
Passenger, underground tube.
Local Mass rapid transit and local trains offer swift, convenient and economical
transportation. For example, the underground subways at Hong Kong and
Singapore. They link nearby cities and suburbs to metros. Frequency may be
as often as every few minutes in peak hours. They ply throughout the day.
Toy train Operate in hilly areas on narrow gauge, for example, Kalka-Shimla toy train.
Trams or street cars Move on rails, laid on city streets and are electrically powered. Seen in Kolkata.
Luxury Tounst Trains Luxurious fully furnished coaches fit for royalty with exquisite cuisine and
facilities of a five star hotel, for example, Place on Wheels, Deccan Odyssey.
Air Transport
Aircraft To transport up to 400, in some aircrafts up to 800 passengers at a time.
Types Airbus, Boeing, and jumbo jet, Concorde:
Supersonic passenger airliner, helicopters.

Water Transport
Ocean liners Passenger ships for long distance travel from port to port. For example,
P & 0, MV Tipu Sultan, MV Nicobar.
Cruise liners Special luxurious holiday ships for long distance. For example, Carnival cruises,
Star cruises.
Ferry ships Used for shorter trips. Scenic mode of transport to various islands and are
popular worldwide.
Launches A large motorized boat at all tourist places near rivers and seas.
Boats and canoes Transport for short distance.
Hover craft and Hydrofoil Fast communication over sea routes and difficult terrain.
Sea planes They can land or take-off on water. They include
float planes, flying boats, and amphibians.
108 Tourism Operations and Management

Due to the growth in the number of recreational vehicles more RV

camp grounds are being built. Private and government camping grounds
provide easy access from major highways and tourist attractions. Some
of the better camp grounds offer water, electricity, and sewage disposal
facilities for the RV travellers. For example, Kampgrounds of America
(KOA).
Car rentals and RVs have helped in the development of road transport.
RVs offer the tourist both driving and camping facilities. The USA has
more than 14,000 public and private parks and camping grounds for
tourists.

Automobile Associations
Automobile associations are present in almost all the countries. These
associations give emergency services to the car owners in case they have
a problem on the road. They also publish road maps and help in providing
other facilities to the motorists. For example, the American Automobile
Association (AAA). India has regional automobile associations such as
Upper India, Eastern India, Western India, Southern India, etc. The Upper
India Association trains new drivers and teaches them safe driving
practices. There is an apex organization called the Federation of Indian
Automobile Associations (FIAA).

Inter-city and Inter-state Bus Service

In India, this is a very popular mode of transport because of its economical
price and speed. Most of these buses are operated by the public sector
state transport corporations. The budget tourists usually use coaches for
inter-city travel. Many tourists nowadays prefer travelling by modern
buses such as Volvo because of comfort. Transport operators also use
Volvo for their conducted group tours.
The inter-state bus system in India is fully developed and provides
different categories of buses. Many state transport corporations have
ordinary buses, semi-deluxe, deluxe, and air-conditioned coaches.
Reservation facility is also available for these buses at the bus stands and
other reservation counters.
Greyhound and Trailways are the major bus companies of the USA.
Greyhound offers highly discounted tickets to foreign tourists visitin
g
the USA under various schemes.
 Tourist Transport 109

Permits for Tourist Vehicles

Road transport operators have to comply with Motor Vehicles Act 1988
and Central Motor Vehicles Rule 1989. There is also, Maharashtra Motor
Vehicles Rule 1989. The objectives of all these are to regulate motor
transport and to develop it on healthy lines. Under Motor Vehicles Act
1988, with a view to developing tourism, the state transport authority is
empowered to issue tourist permits to tourist vehicles to be effective
throughout India and its neighbouring states. For encouraging long
distance inter-state road transport, national permits irrespective of goods
carriage are also issued by the appropriate authority. If tourism is to be
promoted, it is necessary to remove all possible constraints for making
smooth movements of road transport between the states within India.
In respect to road transportation in India, taxation policies, licencing
systems, etc. differ from state to state. Motorists complain about time
wasted at state boundaries and check posts in connection with paying of
octroi, etc. Such restrictions should be removed and movement of vehicles
from state to state should be made smooth. In foreign countries such
restrictions do not exist, hence car rentals are a preferred option.
Road transport is most suitable for short and medium distances. It has
an important role in the opening up of interior and remote areas and is —
comparatively cheaper than other forms of transport.

RAIL TRANSPORT
Railways are the most economical, convenient, and popular mode of
travel especially for long distance travel all over the world. The railroad
was invented in the seventeenth century in Germany with wooden tracks.
The first steel rails were developed in the USA during the early 1800s.
The railways revolutionized transportation and mass movement of people
was seen in the nineteenth and twentieth centuries.
In India, the railways serve as the most important means of inland
transport. The Indian Railway is Asia’s largest, and world’s second largest
railway system under one management. It has a total route length of
62,000 kilometres. It was in April 1833 when the first train steamed out
of Bombay (Mumbai) to Thane, a stretch of 34 kilometres. Today, it is
India’s largest public sector undertaking employing more than 20 lakh
people. The Indian Railways is owned and managed by the Government
of India. It operates around 11,000 trains everyday, of which 7000 are
passenger trains.
110 Tourism Operations and Management

The broad gauge lines account for more than 55 per cent of the total
network and carry 85 per cent of the total traffic. The steam engines
have been replaced by diesel and electric engines which has helped in
increasing the speed.
There are different classes of travel—air-conditioned first class, first
class, air-conditioned two-tier, air-conditioned three-tier, AC chair car,
second class, and general class. The railways have promoted tourism in
India by introducing special trains such as the super fast Rajdhani Express,
super fast Shatabdi Express making rail journey faster and comfortable.
Toy trains at Kalka and Shimla, NewJalpaiguri, Darjeeling, Matheran,
and Udhagamandalam are major attractions for the tourists. The exotic
‘Palace on Wheels’ of Rajasthan (RTDC) and ‘Deccan Odyssey’ of
Maharashtra (MTDC) are attractions for the foreign tourists.
The countries Europe and Japan have developed some very high-
speed trains. France operates its TGV (Train de Grande Vitesse, or very
high speed train) service between Paris and Lyon at a speed of 380
kilometres an hour. The Japanese Bullet train travels at a speed of 225
kilometres an hour. The speed of many of the Japanese trains has also
been increased up to nearly 300 kilometres an hour.
In Europe, the railway systems of six European countries have been
clubbed to make rail travel easier for the people of Europe. A rail
passenger can buy a ticket in any one country of Europe and travel
through six countries. For the foreign tourists, Eurail Passes offer unlimited
discounted travel in express trains for periods ranging from a week to
three months. The Eurail Youth Pass offers more discounts for young
people below the age of 26 years in express trai
In the USA, AMTRAK (National Railroad » ss nger Corporation)
operates trains.

Indrail pass
The Indian Railways has introduced Indrail passes for foreign tourists.
The Indrail pass allows unlimited travel during the validity of this pass.
Travel agents usually get a 10 per cent commission on the sale of Indrail
passes.
To explore the beauty of multi-faceted India, Indrail passes provid
e
excellent value and adds to the charm of holidays from abroad. Indrail
passes offer visitors on a budget, the facility of travel, as they
like, over
the entire Indian Railways system, without any route restrict
ion within
the period of validity of the ticket. These passes can only be
purchased
by foreign nationals and NRIs on payment of US dollars,
pound sterling
 Tourist Transport 111

and other convertible foreign currencies. The pass holder is not required
to pay any reservation fee, super fast charges, or surcharge for the journey.
The Indrail passes are more attractive for transit and short stay visitors.
The passes are also available for half day, two days, and four days for the
benefit of visitors arriving by international flights and visiting only one
or two connecting destinations. Indrail passes are sold through general
sales agents (GSA) abroad, Indian Airlines and Air India’s overseas outlets
at Oman, Australia, Malaysia, UK, Germany, Finland, UAE, Bangladesh,
South Africa, Kuwait, Bahrain, Thailand, Myanmar, Singapore, Nepal,
and Sri Lanka.
In India, Indrail passes are available for sale in tourist bureaus at major
railway stations. Certain recognized travel agents are also authorized to
sell these passes in Delhi, Mumbai, Kolkata, and Chennai. One can refer
to the website www.indrail.gov.in/intert.html for information on the fare
structure of Indrail passes.

Tatkal Scheme Facility by Indian Railways

The Tatkal or immediate booking scheme opens at 8 a.m. five days before
the actual date of journey excluding the date of journey. For example, if
a train is leaving on the sixth day of the month, tatkal booking will start
at 8 a.m. on the first day of the month. No proof of identity is required
for reservation under tatkal scheme neither at the time of booking nor
during the journey.
The Indian Railways has a tatkal quota in each train in 2A, 3A, AC
chair car, and sleeper classes. Under this scheme passengers are required
to pay full fare from the starting point till the end destination, even if
they board or get off the train at any in between station on the route plus
the tatkal charges as applicable.

Circular Journey Tickets

Indian Railways provides the facility of booking circular journey tickets
for pilgrimage or sightseeing trip to many destinations. These tickets offer
unique travel flexibility, as they are issued for all journeys (other than
regular routes), which begin and complete at the same station. Circular
journey tickets can be purchased for all classes of travel. A maximum of
eight break journeys are admissible on these tickets. Standard circular
journey tickets are also offered by zonal railways. These cover popular
destinations for the convenience of tourists. The details of route, fare,
etc. for these tickets can be obtained from nominated stations in each
zonal railway.
112 Tourism Operations and Management

Circular journey tickets give the passenger benefit of telescopic rates,

which are considerably lower than regular point-to-point fare. With these
tickets, the passenger not only saves time but also the inconvenience of
booking a ticket at each leg of the journey.

The Indian Railway Catering and Tourism Corporation Limited

The Indian Railway Catering and Tourism Corporation Limited (IRCTC)
is a public sector enterprise under the Ministry of Railways, Government
of India. IRCTC provides complete travel and tourism solutions for the
various customer segments and also catering on trains and at stations
over the Indian Railway network.
IRCTC provides the following range of products and services:

e luxury tourist trains

e exclusive steam and hill charters
e chartering of special trains and coaches over the Indian Railway
network
* tour packages—Bharat Darshan—special tourist trains for the budget
travel
¢ hotels—near important railway stations all over India
¢ car rentals
* e-ticketing for travel over Indian Railways
¢ call centres—for rail and tourism related information
¢ on-board catering on trains all over the IR network
* multi-cuisine food plazas at important railway stations
¢ packaged drinking water—Rail Neer

With the availability of such wide range of services under one

umbrella, IRCTC is, thus, able to offer readymade as well as customized
packages to meet the requirements of all segments of the travel and
tourism industry.

Luxury tourist trains

IRCTC works with Indian Railways and other public
and private
organizations in the tourism sector, for running of luxury
trains over the
Indian Railways network. These include Palace on
Wheels, Deccan
Odyssey, Heritage on Wheels, and F airy Queen.
 Tourist Transport 113

Mountain railway steam/diesel charters

IRCTC offers charters on a number of scenic mountain railway sections,
which includes:
¢ Darjeeling Hill Railway—UNESCO World Heritage railway
(steam/diesel)
¢ Nilgiri Mountain Railway (steam/diesel)
¢ Kalka-Shimla Railway (steam/diesel)
¢ Kangra Valley Railway (diesel)
¢ The Neral—-Matheran Railway (diesel)
Tourist cars

IRCTC offers luxury tourist cars for smaller groups. These tourist cars
are air-conditioned cars with kitchenettes and modern comforts providing
the luxury of a hotel on wheels.

Train and coach charters

IRCTC organizes train and rail coach charters for the convenience of
tourists travelling in large groups.

Tour packages
IRCTC provides tour packages, covering a variety of tourist interests
and requirements. These packages are all-inclusive, including rail travel,
road travel, and hotel accommodation, sightseeing as well as onboard
and off board hospitality.

Bharat Darshan
These are special tourist trains for the economy traveller, which have
customized itineraries covering places of cultural, historical, and religious
interest.
The Bharat Darshan tour package costs Rs 500 per person per day,
and includes travel by train in second class sleeper coaches, along with
the following:
¢ hall accommodation at places of night stay/morning freshening up
¢ vegetarian meals
e tourist buses for sightseeing
e guides/tour escorts
e security at each coach
¢ arailway staff on train as train superintendent
114 Tourism Operations and Management

Toy Trains
Several toy trains operate in India. They are discussed as follows:
New Jalpaiguri-Darjeeling
The toy train on the Darjeeling Himalayan section represents the
engineering skills of the highest order. This 83 kilometre long section
connecting Darjeeling with the railhead at Siliguri is of great importance
and has been given the status of World Heritage Site.
In 1999 UNESCO declared Darjeeling Himalayan Railway (DHR)
as a World Heritage Site. After the Austrian Alps, DHR is the second
railway system in the world to be accorded the world heritage status.

Kalka-Shimla Railway
This railway line is one of the most popular hill railways in India. The
trains running on these tracks are popularly called ‘toy trains’. A journey
on this railway is a unique experience as one can view the majestic
Himalayas, through tunnels and over bridges; amid the lush green valleys
of pine and oak trees.
The Kalka—Shimla railway line was inaugurated by the then British
Viceroy, Lord Curzon in November 1903, covering the distance of 96
kilometres from Kalka, up to Shimla hills. The toy train passes through
102 tunnels (originally 103), 969 bridges, 919 curves, and 20 railway
stations in its entire journey. The Guinness Book on ‘Rail Facts and Feats’
included Kalka—Shimla Railway as the greatest narrow gauge engineering
achievement in India.
The KS toy train has about seven coaches that can seat around 200
passengers in a single trip. The train runs through hazardous and adverse
weather conditions with temperatures ranging from 0 to 45°C, heavy
snowfall (average recording two feet during winters), and the annual
rainfall of 200-250 centimetres. The train travels with a moderate average
speed of 25-30 kilometres throughout its journey. It has been included
as a World Heritage Site since July 2008.

Nilgiri Mountain Railway

The Nilgiri Mountain Railway is 46 kilometres long and runs on a 1000-.
millimetre gauge railway connecting Mettupalayam to Ooty. The first
section of the Nilgiri Railway up to Coonoor was completed in 1899 by
the Nilgiri Railway Company and was extended to Ooty in 1903.
This Nilgiri rail system is unique as it is the steepest one in Asia.
 Tourist Transport 115

Neral—Matheran Railway
Matheran Railway links Neral, which lies on the Mumbai-—Pune route,
to the beautiful hill station of Matheran. The route, covered in a time
period of one and half hours, is full of beautiful scenic views of the region.
The Matheran Hill Railway is a heritage railway in Maharashtra, built
between 1901 and 1907 by Abdul Hussein Adamjee Peerbhoy, at a cost
of Rs 16,00,000. The railway covers a distance of 20 kilometres (12.67
miles), connecting Neral to Matheran in the Western Ghats hills near
Mumbai. The railway is a two feet (610 millimetre) narrow gauge railway
and is being promoted as a future World Heritage Site.

Pathankot-Joginder Railway
The Kangra toy train links Pathankot and Joginder Nagar through hills
and valleys, offering the travellers beautiful scenic views. The work on
this line started in 1926. Three years later, this 163-kilometre route was
opened to traffic.
The entire route gives beautiful views of Kangra valley, hills on the
sides, streams, and the Dhauladhar range. It travels past the ruins of the
old Kangra fort.

Luxury Tourist Trains

Luxury tourist trains operating in India include the Fairy Queen, Deccan
Odyssey, and Palace on Wheels. They are discussed as follows:

Fairy Queen
The Fairy Queen was built for the erstwhile East Indian Railways (EIR)
in 1855. Its steam engine is the oldest working engine in the world. It has
the prestige of having a place in the Guinness Book of World Records
and also winning the National Tourism Award. It has also graced the
National Rail Museum, New Delhi. The Fairy Queen starts from Delhi
and reaches the picturesque town of Alwar in Rajasthan the same day,
from where the guests are taken to Sariska Tiger Reserve for an overnight
stay. Indian Railways offers a unique two days all-inclusive package on
the Fairy Queen.
The Fairy Queen has a 60-seater specially designed air-conditioned
chair car with a large glass window from where the passenger can have a
frontal view of the locomotive, with a well-maintained pantry car for on
board catering. The coach also has a beautiful lounge in the front, which
116 Tourism Operations and Management

provides scenic beauty of the countryside. For the passengers’ enjoyment

numerous cultural programmes are organized on the evening of the first
day at the hotel Sariska Palace. For tour itinerary refer to Chapter 10.

Deccan Odyssey
Maharashtra Tourism, Development Corporation Ltd (MTDC) in
association with Indian Railways, Ministry of Tourism has launched a
super deluxe luxury train—The Deccan Odyssey. The train has been
associated along with the best luxury trains in the world such as the Blue
Train of South Africa, the Orient Express of Europe, and the Eastern and
Oriental of South-East Asia.
The train reflects the ways of Indian royalty. Each coach is named
after some of the best tourist places and forts of Maharashtra. The train
has 21 coaches, out of which 13 are passenger cars and can accomodate
eight people per coach. Eleven passenger cars, two presidential suites,
one conference car, two dining cars, two generator cars with luggage
store, one staff, spare car, one spa car, and one bar car.
The train has on-board facilities such as air-conditioning, business
centre with Internet, FAX, ISD, and STD in the conference car, LCD
T'V in eleven lounge cars, plasma TV with allied equipment, one health
spa car with steam, beauty parlour and gymnasium, music channel, cell
phone on demand, foreign exchange facilities, laundry services, 24-hour
room service, valet attendant, special assistance for physically challenged
people, luggage collection facility, guests are provided with arrival kits,
fully stocked bar, daily newspapers and magazines, packaged drinking
water, and mail box facility. Bookings can be made through agents/
Internet, and assistance is provided for travel arrangements on completion
of tour.
The route for the train has been fixed as Mumbai-Ratnagiri—
Sindhudurg—Goa—Kolhapur—Pune—Nasik—Aurangabad (Ajanta—Ellora)—
Nasik and Mumbai. The itinerary is of seven days round trip starting
every Wednesday from Mumbai. Refer to Chapter 10 for the tour itinerary
of the Deccan Odyssey.

Palace on Wheels
The Palace on Wheels has been rated as one of the 10 best luxurious
train journeys in the world. Originally the train had 12 fully furnished
non-air conditioned saloons, which were once owned by the
former
maharajas, governor generals, and viceroys of the British period.
The
 Tourist Transport 117

Palace on Wheels initially started as a unique holiday concept hauled by

a steam engine on 26 January 1982.
In 1991, a new air-conditioned meter gauge—Palace on Wheels, on
the lines of the old heritage train, was launched. The interiors of the
current 14 saloons have authentic replicas of the historic coaches. Each
salon is equipped with twin-bedded cabins, channel music, and intercom
facility.
The coaches are named after the princely states of Rajasthan.
Everything matches with the colourful tradition of Rajasthani art. Panels
and ceilings are covered with miniature and traditional motifs reflecting
the pageantry of courtly life.
Each saloon has a mini pantry and a lounge with beverages and
refreshments and a place to relax, two exquisite restaurants, the Maharaja
and the Maharani, with opulent draped curtains, elegantly crafted lights.
Apart from the chef’s special of the day there is delicious choice of local
Rajasthani, Chinese, and Continental cuisine. Refer to Chapter 10 for
the tour itinerary of the Palace on Wheels.
Tariff for 2007-08 and 2008-09 per person per night (off season/
season) varies from USD 322 to USD 560 depending on occupancy.

WATER TRANSPORT
Humans have been travelling through water since time immemorial and
carried goods and people from one place to another. The boats progressed
from the simple raft with some modifications and improvements and
were first used around 6000 BC.
Travel by ship was the only means for travelling overseas till the middle
of the twentieth century. The Cunard Steamship Company was formed
in 1838 with regular steamship services operating on the North Atlantic.
During World War I, in 1914 the operations of the steamship company
had to be suspended. After World War I, the steamship luxury liners
were back to business till World War II. After World War IJ, large luxury
liners again started their operations all over the world and carried
passengers and holiday makers. Some of the liners were very large
accommodating up to 1000 passengers and had facilities like swimming
pools, cinema halls, shops, casino, etc. SS France and SS Queen Mary II
are two great Atlantic luxury vessels, still operating. The cruise lines are
the new attractions among the tourist. The cruises are booked several
months in advance for trips into the tropical and sub-tropical waters of
the Hawaii, Caribbean, Mediterranean, etc.
118 Tourism Operations and Management

Water transport today plays two main roles in travel and tourism
namely ferrying and cruising.
Ferry ships are comfortable and have an extensive network throughout
Europe. They are widely used on shorter crossings in many parts of the
world. The demand is highly seasonal because of holidays.

Hydrofoils and Hovercrafts

Modern vessels such as the wave-piercing catamaran, the hydrofoil, and
the hovercraft are the over-the-water transport and used for short distance
routes.
Hydrofoils are lifted by foil action through the water and are
comparatively faster. There is a 35-40 minute hydrofoil service between
Copenhagen (Denmark) and Malmo (Sweden). Hydrofoils connect some
of the Hawaiians islands and also Hong Kong and Macau.
Hovercrafts are lifted by propeller induced pressure and run on a
cushion of air, eight feet above the water with a speed of 125 kilometres
an hour. Hovercrafts operate on short routes between Dover and
Boulogne on the English Channel. A giant hovercraft can carry 30 pas-
senger cars and upto 250 passengers at one time.

Riverboat Travel
The Mississippi river has been a popular tourist river since the first settlers
came to the USA. Today, tourists enjoy two or three-day luxury trips
along the river. In Europe, the Rhine, winding through the grape growing
areas of Germany, offers similar leisurely tourist trips.
Motorized ferries and launches are used over rivers to transport tourists
and locals, to transport vehicles, and offer facilities such as car parking,
restaurants, viewing decks, etc.

Cruise Ships
A cruise ship or cruise liner is a passenger ship used for pleasure voyage
or travel where the voyage itself and the amenities offered onboard the
ship are an attraction and part of the experience. Every year more and
more newly built ships are added for the benefit of North American and
European clientele. The Asia Pacific region has a smaller market and is
usually serviced by older vessels displaced by new ships.
Cruise ships operate mainly on circular routes where the passengers
return to their originating port. In contrast, ocean liners do ‘line voyages
’
a es roureianspor a
and normally transport passengers from one point to another, rather
than on round trips. Some ocean liners also have longer trips that may
not return back to the same port for some months. A river cruise is shorter,
narrower with a shallower draft to allow it to travel in inland waterways
but has similar amenities as a cruise ship.
The first cruise ship vessel Prinzessin Victoria Luise, commissioned
by Albert Ballin (Director of Hamburg—America line) was completed in
1900. To attract more passengers the ocean liners added more amenities
such as fine dining and well-appointed staterooms for example, the
Titanic. In the late nineteenth century, Albert Ballin sent his trans-Atlantic
ships out on long southern cruises to North Atlantic.
The 1960s experienced a decline in the growth of ocean liners. With
the advent of the jet aircraft the international travellers shifted from ships
to airlines. The cruising voyages gained popularity from 1980 onwards
as compared to ocean liners. Initially, the small redundant liners were
used and the cruise ships built were also small. But after the success of
the SS Norway (SS France re-launched in 1980) the Caribbean’s first
‘super-ship’, large passenger cruise ships were built.
Earlier the cruise ships centred around Caribbean, Alaska, and Mexico
but now they move all around the globe. Today, several hundred cruise
ships, some carrying over 3000 passengers and over 1,20,000 gross tonnes
of cargo; move on the world water transport route.
The cruise ships function with a complete hospitality staff in addition
to the ship’s crew members similar to a floating hotel. Sometimes the
staff of the luxurious cruise ships outnumber the passengers.
The inland waterway cruise ships or river cruise have similar luxury
as that of a cruise ship with some differences. The ships are much smaller
and carry around 20-240 passengers. The size of these ships allows
movement through locks. For example, Moonlight Lady travels through
the locks of the Chamblay Canal between the USA and Canada. The
advantages are to visit more destinations ashore, possibility to leave and
catch the boat later using some other mode of transportation. The
inland waterway cruises are more common than the ocean cruises and
destinations available are also more.
In 2005, 14 million cruise tourists travelled worldwide. The main
regions for cruising were North America (70 per cent of cruises),
Caribbean, Continental Europe (13 per cent), Mediterranean Sea, Baltic
Sea. The Caribbean cruise lines are very popular. They include Royal
120 Tourism Operations and Management

Caribbean International, Princess Cruises, Carnival Cruise Line, Disney

Cruise Line, Holland America, Cunard, Norwegian Cruise Line, etc. The
cruises travel on itineraries depending on the port of departure and the
duration of the cruise. A majority of the major cruise lines also stop at
their own ‘private islands’. Many of the private resorts are reserved for
the passengers of some selected cruise lines. These resorts offer features
such as aqua park, kayaking, snorkelling, parasailing, and private cabanas.
Many of the International cruise ships have been developed and
converted into ‘floating holiday resorts’, which are self contained in terms
of the various visitor attractions on board. The cruising experience thus
can also be termed as ‘transport tourism’.
The cruise liners have the advantage of combining accommodation
and transportation along with excursions at the different ports they visit.
Thus, water transport is important; not only as a means of transportation,
but also as a visitor attraction.
The ‘Freedom of the Seas’ of the US-Norwegian company Royal
Caribbean Cruises is the world’s biggest cruise liner. It is four times heavier
than the Titanic and with decks that would accommodate 25 football
pitches. It weighs 158,000 tonnes and can accommodate 4375 passengers
and 1365 crew. The ship has a kitchen staff of 240 and is 339 metres
long, 56 metres wide and 72 metres high. The ship offers amenities such
as a pool with artificial waves big enough for surfing, a 135-square-metre
shopping centre, and a rock climbing wall, a mini golf course, and a
casino. The ship also has three F-16 fighter jetreplicas and a Morgan
sports car for decoration.
India has around 300 million middle class citizens and according to a
recent survey, Indians rank third in travel spending in the world. Most
Indians travel by air, rail, and road for holiday. Since the screening of
the Hollywood movie Titanic, Indians have been fascinated by the concept
of holidaying on ships. Since then, many cruise lines have visited the
Indian ports, including Queen Elizabeth II. The response of Indian
travellers has been overwhelming. Many upper class Indians are keen
on travelling by luxurious cruise lines across the world. There are more
Indians travelling on international cruises. Most of them prefer a one-
week or ten day cruise rather than long voyages. Cost is also a major
factor. A week long cruise in Caribbean or Alaska costs around USD
600-700, while the long voyages of more than 100 days cost a minimum
of USD 40,000 ona luxury liner.
a rapt Sd
MS Amsterdam, Aurora, and Oriana are some of the major cruise
lines which have visited India. The major ports of call for cruise lines in
India are at Mumbai, Goa, and Kochi. India is emerging as a major
destination for cruise tourism. Cruise terminals of international standards
are being built at major ports on the western coast. The tourist traffic,
both inbound and outbound, is growing. Tour operators offer special
packages and incentives. Also with the launching of India-based cruising
by Star Cruises from Mumbai, many tourists are going in for local cruises.
The Star Cruise offers corporates special packages for on-board confer-
ence and seminars and also to families. The packages offered are Mumbai
to Goa, to Lakshadweep and an overnight sail in Mumbai. Kadmat Island
(Lakshadweep), Goa, Kochi, and Chennai are the destinations offered
by Super Star.
Cruises are still a developing concept in India as Indians are generally
not inclined towards long sailing and a four to five nights package is
more popular. The major drawback for cruise operations in India is the
passenger amenities, which are very poor at all port terminals.
A number of passenger ships operate between Kochi, Chennai,
Kolkata, and Andaman and Nicobar Islands and Lakshadweep. The
journey from Kochi to Lakshadweep takes 18 to 20 hours. The passenger
ships which are all weather ships and ply on this route are MV Bharat
Seema, MV Tipu Sultan, MV Amindivi and MV Minicoy. The Andaman
and Nicobar islands comprise 572 islands in the Bay of Bengal, 1200
kilometres off the east coast of India. Only 38 islands are inhabited and
offer a 700-kilometre stretch for sailing. The Shipping Corporation of
India plies four ships a month from Kolkata and Chennai and once a
month from Vishakhapatnam. The sailing time is 66 hours, 60, and 56
hours respectively. However, the services are subject to weather sea
conditions. Various packages are offered by the Tourism Department of
Andaman and Nicobar islands in semi-deluxe liners. Some of the ships
which ply on these routes are MV Nicobar, MV Nancowry, MV Akbar,
etc. Many private operators offer a variety of packages on different classes
of cruise ships.
Tourists have a wide variety of transport options available today. The
essential features which tourists look for while selecting a mode of
transport are given in Fig. 5.3.
122 Tourism Operations and Management

Speed

Comfort | Regularity

Essential
__——_ Features
Safety Flexibility

Adaptability Cost

Fig. 5.3 Essential features of tourist transport

There are several advantages and disadvantages of all the modes of

transport. They are presented in Table 5.3.

Table 5.3 Advantages and Disadvantages of Various Modes of Transport

Mode Advantage Disadvantage ;

Air Direct route, high speed, High cost, jet lag,
quick service, social and unsuitable for heavy bulk
political significance, cargo, accidents always fatal,
luxurious travel international rules to be
observed
Road Flexible, reliable, door to Slow speed, carrying Capacity
door service, economical, limited, accidents, non-AC
supplements other modes coaches not so comfortable,
of transport, quick transit comfort depends on
for short distances condition of road
Railways Long distance travel cheaper, Inflexible, unfit for hilly
carrying capacity large, regions, difficulties in
dependable service, rural areas, dining car
quicker than road transport, facility not always available
personal comfort in AC class,
ability to view scenery en route,

Contd
 Tourist Transport 123

Table 5.3 Contd

Mode Advantage Disadvantage

|
eee

abilty to move around the coach,

arriving at the destination
point rested and relaxed
(AC coach), environmentally
friendly mode of transport
Ropeways Quicker and easier transport Maintenance
in hilly areas
Waterways Economical, carrying capacity Slow speed, zig-zag route,
enormous, develops observe international routes,
international, and coastal difficulties in operation
trade because of weather

TRANSPORT AS AN ATTRACTION

To attract customers as well as take them around an attraction, destination

developers have used many forms of transport to move people around.
These novel modes of transport ensure that major exhibits are viewed in
a certain sequence and ensure that the crowd moves through at a reliable
pace. Overcrowding should be avoided at all costs to prevent untoward
incidents and to maintain the beauty of the place.
Tourists can cover the entire park in a shorter duration with the help
of these modes of transport. Table 5.4 shows how the mass movement of
tourists at an attraction can be controlled using these novel modes of
transportation. These vehicles help tourists enjoy the exhibits and displays
without tiring out.

Table 5.4 Transportation at the destination

Examples where it is used

Cable cars At ski resorts, hill stations, and theme parks.

Helicopters To take tourists to the top of the hill at Mata Vaishnodevi temple, Jammu.
‘Pitthus’ Children carried piggy back over long terrains by humans.
Mules Mule ride to the hill top at Jammu.
Yaks In hilly terrain at Gangtok.

Contd
124 Tourism Operations and Management

Table 5.4 Contd

lene port Examples where it is used |

All terrain vehicles (ATV's) Can ride over mountainous terrain, sandy, rocky, or slushy areas and used
as recreational vehicles for trail rides at Phuket.
Travelator or walkalator Used in theme parks, museums, or art galleries horizontally or on an incline,
where people can stand or walk.
Cycle rickshaws Trishaw tour in decorated cycle rickshaws on the streets of Singapore.
Shuttle buses For passengers in transit, for example, visa-free transit facility helps in
attracting tourists to Singapore and promoting the destination.
Shuttle buses ply transit passengers from Changi airport to Singapore city
and back.
Dark rides Is an indoor amusement ride where riders in guided vehicles travel through
specially lit scenes that contain animation, sound, music, and special effects,
e.g. Pirates of the Caribbean at Disneyland.
Panorail Air conditioned, comfortable train leisure ride with commentary which gives
a panoramic view at a theme park Jurong Bird Park, Singapore.
Tram ride Popular for distances of a few kilometres. For example, during the night
safari in Singapore tourists are taken for a 45 minute ride of 3.2 kilometres
to view wild animals and birds in natural surroundings. Meals are served on
board moving trams.
Balloon tours Offer panoramic views from a height of 150 metres as you float and observe
the sky line.
Amphibian vehicle These are boats-on-wheels which can travel on both land and sea and are
used for both city and harbour tours without passengers having to change
the vehicle. For example, a duck tour at Singapore. Similar tours are available
at other destinations such as Japan and Toronto.
Boats, canoes, kayaks, Used to leisurely cruise down rivers or streams and enjoy scenic views.
rafts, barges
Limo-buggy Semi-covered sightseeing tourist four wheeled vehicle. Safe, comfortable
tours of attractions with guide services for a smaller group.
Funicars Used for climbing steep slopes, these vehicles travel on the ground and
are pulled by cables on the surface of steep hill slopes, for example, the
Peak tram at Hong Kong takes tourists up the peak quickly.
Steamboats To traverse crashing waters and massive rock formations, for example, the
‘Maid of the Mist’ cruises to the base of the American Falls and Horse
shoe
falls at Niagara, Canada.

As we have read, transportation is by far the most crucial compo

nent
of the tourism infrastructure. It is required not only for reachi
ng the
destination but also visiting the site and moving
about at the
 Tourist Transport 125

destination. Variety in modes of transportation adds colour to the overall

tourism experience. Unusual forms of transportation are also an attraction
such as the cable cars in hilly terrain, the funicular railway, or jet boating.
The choice of mode of transport is vast and tourists can choose a mode
to suit their budget. They can opt for scheduled or non-scheduled transport
such as hiring of vehicles, boats, coaches or trains so that they can travel
with their group.

SUMMARY
This chapter has highlighted the vital necessity of transport for the growth of
tourism. It is of prime importance for a tourist and the tourism professional
needs to be familiar with the different modes of transport. The airline industry
is growing by leaps and bounds every year. Many new airlines have been
introduced in the market. The frequencies of flights have been increased in all
the major sectors of the tourist places. The railway is still considered the most
economic of all the modes of travel. Luxury trains, such as Palace on Wheels,
Deccan Odyssey, and toy trains are not only a mode of transport but also are an
attraction for the tourists. Tourist coaches and cars are considered for quicker
transit for short distances. The cruise lines are an attraction in itself as they
offer the advantage of accommodation and transportation along with the
excursion at different ports. These luxury liners offer some of the finest facilities
on board. Transportation also plays an important role in moving people around
the attraction, preventing overcrowding and ensuring that tourists do not tire
out. Unusual forms of transportation serve as an attraction at the destination.

KEY TERMS
Apex fares Advanced purchase excursion fare, purchased in advance, non-
refundable, conditions apply.
Blue skies policy Permission given to the private sector to enter domestic
airline business.
Budget airlines No-frills airline, i.e. minimum services offered on board, hence
cheaper airfares.
Cable cars Mode of transport at attractions with hilly terrains, ski resorts which
travel along overhead cables
Chartered flights Special flights booked exclusively for a specific group of
people who belong to the same organization or who are guests of a particular
host. Even scheduled airlines offer chartered flights.
126 Tourism Operations and Management

Code sharing Use of same airline identification code for two or more sectors
which may be operated by different airlines. Promoting use of different
airlines for connecting flights.
Cruise ships Transport passengers on round trips, in which the trip itself and
the amenities of the ship and ports visited are an attraction.
Cruises Sea voyages in luxurious liners very popular amongst the rich and elite.
Cruising It is a lifestyle that involves stay for extended time on a boat while
travelling from place to place for pleasure.
Domestic airlines Connects principal cities of a country and even upcountry
locations through feeder services
Duck tour or boat-on-wheels Amphibian vehicle which can travel on both
land and sea, is used for touring at Singapore, Toronto, and Japan.
E-tickets Tickets procured via the Internet.
Excursion fares Promotional fares usually for a round trip and for a specifie
d
period of time.
Ferry A ferry is defined as a form of short-distance water-borne transpor
t.
Fly-cruise Travel plan where to board a cruise ship travellers have to
fly to the
port of embarkation.
Funicars Mode of transport for tourists to travel over steep hill
slopes. Funicars
travel on the ground pulled by cables on the surface of a slope.
For example,
the tram service to reach the peak at Hong Kong.
Group fares Discounted fares for a group of 14 or more individ
uals. One ticket
is free or group leader/tour escort may travel free.
General sales agents (GSA) General sales agents are agents
appointed by an
airline or any other organizations in a particular territo
ry to handle their
bookings, inquiries, etc.
Hydrofoil A vessel raised partially above the surfac
e of water using fins and
foils. It travels very fast as there is no friction and
drag caused by immersion
in water.
Interline agreements Agreements between two or
more transportation line.
IOSA Is a quality audit programme under the
continuing stewardship of
International Air Transport Association (IATA). It
is a globally recognized
and accepted benchmarking and evaluation system
for assessing the operation
management and control systems of an airline.
Liner A large ocean sailing vessel or aircra
ft used to transport passengers
belonging to a regular line and observing maritime
regulation.
LTC Leave Travel Concession. In many organizati
ons the employees are given
the LTC facility to travel for self/family when
on leave.
Ocean liners Are Passengers or passenger-
cargo vessels transporting passengers
and sometimes cargo on longer line voyages.
Passenger ship Is a ship whose primary
function is to carry passengers.
 Tourist Transport 127

Port of entry The official port for entry of passengers and goods.
River cruise Is a voyage along inland waterways, often stopping at ports.
Toy trains Trains run at tourist places and are one of the attractions for the
tourist visiting these places.

CONCEPT REVIEW QUESTIONS

1. What services do the Indian Railways offer foreign tourists?
2. Explain in brief the role of railways in promoting tourism. What are the
features/significance of (a) Indrail pass, (b) Eurail pass?
3. What is the primary mode of transport used by the inbound tourists to
come to India? Why is it so popular?
Explain car rental services.
What are recreational vehicles?
Give the importance of airlines in the tourism industry.
What are promotional fares? Name three such fares.
What is the role of Air India Limited in tourism development in our country?
DWH What kind of mode of transport are hydrofoils and hovercrafts? Where are
CON
Oo

they mostly used?

10. Write a note on (a) Palace on Wheels, (b) Deccan Odyssey.
11. How is road transport an important element of tourism infrastructure?
Discuss its role and importance.
12. Discuss the revolutionary impact of air travel on international tourism.
Give its significance.
13. Explain in brief the role of transport at a theme park.
14. Explain how the travel and tourism industry is dependent on transport
industry.

CRITICAL THINKING QUESTION

A group of foreign tourists want to visit an ecotourism project in a village in
Maharashtra. What various modes of transport would you recommend throughout
their tour. Give reasons for your choice of transport.

PROJECT/ASSIGNMENT
Visit a travel agent and collect information about the different types of road
and rail transport available and cost of travel from Pune to Mumbai. Highlight
the advantages and disadvantages of each category of transport.
128 Tourism Operations and Management

REFERENCES
Andrew, S. 2007, Introduction to Tourism and Hospitality Industry, Tata McGraw-
Hill, New Delhi.
Bhatia, A.K. 2001, International Tourism Management, Sterling Publishers Pvt
Ltd, New Delhi.
George, R. 2007, Managing Tourism in South Africa, Oxford University Press
Southern Africa, Cape Town.
Ghosh, B. 2000, Tourism and Travel Management, Vikas Publishing House Pvt
Ltd, New Delhi.
Kaul, R.N. 1985, Dynamics of Tourism: A Trilogy Vol. III Transportation and
Marketing, Sterling Publishers Pvt Ltd, New Delhi.
Keyser, H. 2002, Tourism Development, Oxford University Press Southern Africa,
Cape Town.
Seth, P.N. and S.S. Bhat 1993, An Introduction to Travel and Tourism, Sterling
Publishers Pvt Ltd, New Delhi.
www.railtourismindia.com, accessed on 29 May 2008.
www.indianrailways.gov.in, accessed on 29 May 2008.
www.tourindia.com, accessed on 29 May 2008.
www.airindia.in, accessed on 29 May 2008.
www.maharashtratourism.gov.in, accessed on 29 May 2008.
www.indianairlines.in, accessed on 11 June 2008.
www.thepalaceonwheels.com, accessed on 11 June 2008.
www.deccan-odyssey-india.com,accessed on 11 June 2008.
www.rajasthantourism.gov.in, accessed on 20 June 2008.
 Dept. of Taurine
Goat. of tntig

American Society
ofTravel Agents

Bn~ Tourism Finance Corporation of India ltd,

Pacific Asia Travel Association helping tourism vied

Tourism Organizations

Learning Objectives
After reading this chapter you should be able to:
¢ understand the need for tourism organizations
know the different levels of tourism organizations—private, national, and international
learn about various functions performed by these organizations
understand the role played by organizations for the benefit of travellers
know the role played by international, national, regional, and local organizations for their
members

INTRODUCTION
he development of any industry needs an organization to plan,
develop, and monitor its progress and growth and the tourism
industry is no exception. Organizations are formed when groups
of people come together for a common purpose or interest. They work
together to achieve the purpose, i.e. the aims and objectives, which the
organization has laid down. These can be best achieved when there is
unified action through a formal structuring of its members so that the
organization can work effectively and efficiently as a team and develop
the industry. Tourism organizations thus play an important role in
130 Tourism Operations and Management

Tourism
Organizations

2 |2S 2 ae
Airlines Travel Tour Hotels and Transport
agencies Operators restaurants
IATA UFTAA IATO FHRAI IRU
TAAI IUR
ASTA

Fig. 6.1 Classification of tourism organizations based on different sectors

marketing destinations and managing a country’s tourism industry. Figure

6.1 shows the classification of tourism organizations based on different
sectors.
We read in Chapter | that the travel and tourism industry is composed
of different sectors such as transport, accommodation, and intermediaries.
Each of these sectors has different interests which can be discussed and
resolved on a common platform, if these sectors are grouped together
into ‘organizations’ and ‘associations’. For example, the United Federati
on
of Travel Agents’ Associations (UFTAA) represents associations of the
national travel agents of more than 100 countries and the ‘Travel
Agents
Association of India (TAAI) is a member of UFTAA. Both these
organizations look after the interests of all travel agents. Since tourism
plays a crucial role in a country’s economy, it is necessary
that tourism
develops in a sustainable manner as it should be economically,
socially,
and environmentally sustainable. Unplanned growth of tourism
may be
detrimental to the destination and can have negative
impacts on the
environment, society, and the economy. This makes it
imperative that
the government and the tourism organizations be actively
involved in
tourism-related activities and developments.
Tourism organizations exist in the public sector as well as privat
e sector
at different levels. The levels of organizations are menti
oned below, as
shown in Fig. 6.2.
1. International level
2. National level
3. State level
4. Local level
Many organizations have been established at all
these levels and in all
sectors, in the past few decades.
 Tourism Organizations 131

Level of
Organization

es TEM LMU IN
International National Regional Local
UNWTO FHRAI SIHRA PHA
IH & RA TAAI
IRCTC

Fig. 6.2 Classification based on levels of organization

NEED FOR TOURISM ORGANIZATIONS

Tourism organizations are essential for the following reasons:

Different sectors of the industry are interdependent on each other.

For example, for a tour to be successful, many sectors such as transport,
accommodation, transfers, and entertainment need to work in
harmony.
Many of the vendors/operators are small-scale operators and need
an association to defend and protect their rights.
The tourist market is fragmented and organizations help in reaching
the potential customers.
Destinations can be located far apart, especially in case of international
tourism.
Tourism has to develop in a planned manner if it is to remain
sustainable.
The tourism industry has recognized the fact that successful tourism
can be best achieved through a consolidated effort of the government
and private organizations. These organizations need to coordinate with
the various sectors of the tourism industry to ensure that they function
harmoniously and with maximum profits. At the same time these
organizations should ensure easy accessibility, adequate facilities, safety,
and value for money for the tourists, leading to customer delight.

INTERNATIONAL ORGANIZATIONS
There are several international tourism organizations which are discussed
in the following section.
132 Tourism Operations and Management

\ \N World Tourism Organization

UNWTO + OMT + KHETO

The World Tourism Organization (WTO) was founded in the year 1975.
It was formerly known as International Union of Official Travel
Organization (IUOTO). Since December 2006, the WTO has been
renamed as the United Nations World Tourism Organization (UNWTO)
so as to clearly distinguish it from the World Trade Organization. The
UNWTO is a specialized agency of the United Nations. It is the leading
international organization in the field of tourism. The headquarters of
UNWTO are located in Madrid, Spain.

Aim
It serves as a global forum for tourism policy issues and practical source
of tourism know-how. The UNWTO plays a central and decisive role in
promoting the development of responsible, sustainable, and universally
accessible tourism, with an aim to contribute to the economic
development, international understanding, peace, prosperity, and a
universal respect for as well as observance of human rights and
fundamental freedom. In pursuing this aim, the organization pays
particular attention to the interests of developing countries in the field of
tourism.

Activities
The UNWTO performs many activities. All these activities are related
to its members and development of tourism in general. The activities
performed by the UNWTO are as follows:
e It conducts research studies for the tourism market for various
purposes such as promotions and marketing, area development, and
physical planning.
* It organizes seminars and conferences on issues such as aviation,
infrastructure development, planning, and marketing that are shared
by many countries. The member countries can exchange expertise,
experiences, and work towards a common goal.
¢ It gathers information on tourism, which includes statistical data,
facilities, special events, regulations, and legislations.
It collects, analyses, and disseminates information on various aspects
of tourism.
¢ It prepares drafts for international agreements on tourism.
¢ It provides updated information and supply of studies on tourism
trends in the various fields of tourism to its members.
 Tourism Organizations 133

¢ Itconstantly reviews tourism trends and developments and exercises

vigilance over the changes in world economics and the social
conditions affecting tourism. It also reviews the market fluctuations
and maintenance of standards within the tourism sectors.
The permanent activity of UNWTO is to collect and update the
available information on training needs and special activities, which
includes participation in technical cooperation projects for vocational
training.
The UNWTO provides vocational training through its Centre for
Advanced Tourism Studies. It also provides permanent education
programmes by correspondence and residential study circles. The regions
of the world—Africa, the Americas, East Asia and the Pacific Europe,
the Middle East, and South Asia—have regional representatives based
at the headquarters in Madrid. These representatives pay special attention
to their regions and act as travelling ambassadors. The regional
representatives meet with the top tourism officials from each of the
countries to analyse problems and offer solutions.
They represent UNWTO at national and regional tourism events.

Membership
UNWTO offers three types of memberships. They are: full membership,
open to all sovereign states; associate membership, open to territories that
are not responsible for their external relations (for this, a prior approval
of the government is required, which should mention the responsibility
for the external relations); and affiliate membership, open to a wide range
of organizations and companies, working directly in travel, tourism, and
related sectors. These include airlines and other transport, tour operators,
travel agents, banking sectors, hotels, restaurants, publishers, travel
insurance companies, etc.
The UNWTO is the only international organization which works as
an inter-governmental organization. It offers membership to the
operational sector and is the only contact point for discussions between
government officials and industry leaders.
A number of publications of UNWTO on topics, such as tourism
statistics, world tourism forecasts, tourism carrying capacity, development
of resorts and national parks, sustainable development, education, and
training institutions, are published regularly.
134 Tourism Operations and Management

International Air Transport Association

4s,

NI
IATA In 1919, when the world’s first international scheduled services started,
the International Air Traffic Association (LATA) was founded in the Hague.
It has changed its name to the International Air Transport Association
(LATA) which was founded in Havana, Cuba, in April 1945.
The IATA is an international trade body formed by a group of airlines.
It is a non-governmental, voluntary, and democratic organization. It is
the prime vehicle for inter-airline cooperation in promoting safe, reliable,
secure, and economical air services for the benefit of the world’s
consumers. IATA specializes in standards, practices, and procedures for
the airlines.
When IATA was established it had 57 members from 31 countries,
mostly from Europe and North America. Today it has around 240
members from 126 countries. LATA is closely associated with International
Civil Aviation Organization (ICAO).
The headquarters of IATA are in Montreal, Canada. IATA has its
main office in Geneva also. Regional technical directors are based in
Bangkok, Geneva, London, Nairobi, and Rio-de-Janeiro and regional
director (special assignments) in Singapore and Buenos Aires. IATA traffic
service offices are in New York and Singapore.

Aims
The aims of IATA are to

* promote safe, regular, and economical air transport

for the benefit of
the people of the world, foster air commerce, and study the
problems
connected therewith;
¢ provide means for collaboration among the air-transport
enterprises,
engaged directly or indirectly in international air-transpor
t service;
* cooperate with the newly created ICAO, the speci
alized United
Nations agency for civil aviation and other internatio
nal organizations.
The IATA’s mission is to represent, lead, and
serve the airline industry.
Its members are the world’s leading passenger and
cargo airlines which
represent 94 per cent of scheduled international
air traffic.
Services

The IATA provides a wide range of services.

These are as follows:
* It helps in global planning of internat
ional timetables
* It has formulated a single formula for
tickets and airway bills
 Tourism Organizations 135

¢ It helps in international coordination of telecommunication networks

and computer systems
e It, as aleader organization of scheduled airlines, examines and solves
the problems raised by tourism, the movement of passengers and
cargo at airports, and it also establishes the procedures and technical
norms.
¢ It helps in training of travel and freight agents.
¢ It also helps in standardization of inter-company communications
and reservation system.
¢ It helps to regulate legal questions of general concern in order to
develop security measures.

Activities
The main purpose of IATA is to ensure that all airline traffic moves
anywhere with the greatest possible speed, safety, convenience, and
efficiency and with utmost economy. To achieve this, IATA performs a
wide range of activities, for the benefit of its consumers and member
airlines, which are as follows:
e It simplifies the travel and shipping processes, while keeping costs
down. Passengers can make a single telephone call to reserve a ticket,
pay in one currency and then use the ticket on several airlines in
several countries.
¢ Itallows them to operate safely, securely, efficiently, and economically
under clearly defined rules.
e It seeks to ensure they are well informed about the complexities of
the aviation industry; to ensure better, long-term decisions.
e JATA also serves as an intermediary between airlines and passengers
as well as cargo agents via neutrally applied agency service standards
and centralized financial systems.
e A large network of industry suppliers and service providers gathered
by IATA provide solid expertise to airlines in a variety of industry
solutions.

Membership
IATA’s membership is open to any airline, scheduled or non-scheduled,
which has been licensed to provide scheduled air service, by governments
eligible for membership of ICAO. Other industry partners can also
participate in different IATA programmes and benefit from a wealth of
resources to carry out their operations.
136 Tourism Operations and Management

IATA regularly organizes international conferences, exhibitions, and

industry meetings. This provides members, who are active in all sectors
of the air transport industry, with a platform for discussion and
cooperation, on new technologies and industry-related issues, on topics
such as pricing, ground handling, e-ticketing, legal issues, fuel, etc. Thus
such events benefit airlines, travel and cargo agencies, service providers,
and governments. Many IATA conferences are now considered premier
world events.

United Federation of Travel Agents Association

United Federation of Travel Agents Association (UFTAA) was earlier
known as Universal Federation of Travel Agents Association and was
created on 22 November 1966 in Rome. It was founded by the merger
of two large world organizations, International Federation of Travel
Agencies (IFTA) and Universal Organization of Travel Agents Association
(UOTAA), in recognition of the need to unite travel agencies and tour
operators into one international federation. UFTAA’s General Secretariat
is in Monaco.
UFTAA represents travel agencies and the tourism industry all over
the world. It effectively represents travel agents’ and tour operators’ views
on both inbound and outbound travel by keeping continuous contact
with other international organizations, such as the IATA, the International
Hotel and Restaurant Association (IH&RA), the International Chamber
of Commerce (ICC), the International Union of Railways (IUR), and
the International Road Union (IRU), to name a few.
UFTAA works closely with world bodies such as the United Nations
Educational, Scientific and Cultural Organization (UNESCO), the World
Health Organization (WHO), etc. for sustainable and responsible tourism.
UFTAA has a consultative status in the UN and is an affiliate member of
the UNWTO.

Aim
The aim of UFTAA is to act as an international forum where matters
affecting the world travel industry are addressed, representing and
defending the interests of inbound and outbound tour operators, travel
agencies before the governmental bodies, suppliers, and other entities of
international scope. It also aims at strengthening its members’ image
and enhances the world travel and tourism industry, and sustainable
tourism. Some of the key functions of UFTAA are to
 Tourism Organizations 137

act as the negotiating body with the various branches of tourism and
travel industries on behalf of travel agents and the interest of the
public;
ensure for all travel agents, through their national association, the
maximum degree of cohesion and understanding, prestige and public
recognition, advancement of members interest, and protection, from
legislation and from other legal points of view; and
offer its members all the necessary material, professional and technical
advice, and assistance to enable them to take their proper place in
the economy of world tourism.

Functions

UFTAA performs the following functions for the interest of its members.

It unites and consolidates the Federation of Travel Agent’s National

Association, to enhance and promote the interest of the members.
It represents the travel agents’ activities before the various world
bodies, government authorities, and suppliers.
It adopts new measures to ease travel for the consumer and to offer
services to its members.
It acts as an information and investigation centre, to offer information
for technological development.
It organizes a world congress of travel agents. It also organizes
meetings, seminars, and conferences, for exchange and transfer of
knowledge.
It lobbies to oppose legislations which are directly harmful to tourism
and for free movement of citizens of any country.
It works to reduce bureaucratic obstacles in travel and to seek greater
transportation safety.
It assists through its education committee, so that travel agents become
better qualified through the IATA/UFTAA training programmes.

Overall, UFTAA’s primary goal is to develop, promote, and assist in

the professional training of travel agents.

Membership
UFTAA’s membership includes a large group of travel partners including
major airlines, hotels, tourism boards, shipping companies, car rental
companies, and many other operators allied to the tourism industry. It
comprises 80 national associations.
138 Tourism Operations and Management

UFTAA provides various benefits to its members such as a copy of its

annual directory, a monthly UFTAA information bulletin courier, access
to publish particulars of agency in the UFTAA annual directory, a discount
in the registration fee of the UFTAA annual world congress, free-of—
charge assistance by the UFTAA legal department for the recovery of
outstanding debts, and most importantly, the UFTAA’s symbol on letter
heads and in all literature, giving the agency a professional and ethical
standing.

DATA Pacific Asia Travel Association

Poicasstoatsvecston TH Pacific Asia Travel Association (PATA) was founded in Hawaii, in
1951, with 44 members. PATA is a non-profit travel industry association
which promotes the Pacific Asia areas as travel and tourism destinations.
PATA focuses its attention on travel opportunities in the member countries
and develops awareness among the travel trade in tourism originating
countries.
The headquarters of PATA are in Bangkok. It maintains divisional
offices in Sydney, Singapore, Monaco, and San Francisco.

Aims

The main aim of PATA is developing, promoting, and facilitating travel,

to and within the Pacific areas and South-East Asian regions. It primarily
operates in the USA which is the world’s biggest travel market. The
organization provides a meeting point for the people involved in all
aspects of the travel trade from a large number of countries. It focuses its
attention on travel opportunities in member countries and builds up
greater awareness and specific contacts among the travel trade in countries
from where the tourists originate.
PATA serves as a central resource for information and research, travel
industry education and training, and quality product development, with
sensitivity for culture, heritage, and environment.

Activities

The activities performed by PATA are as follows:

e It provides information and practical assistance in the field of tourism
e = It assists upcoming destinations to develop their infrastructure by
providing expertise. .
 Tourism Organizations 139

* It serves as a central source of information and guidance through its

research, development, education, and marketing council.
¢ It helps the members in marketing their destination and products
through training and educational programmes for human resource
development.
e It organizes an annual travel mart.

Membership
There are over 2100 PATA members worldwide, working as travel
industry organizations. It includes 101 government, state, and city tourism
bodies; 76 airlines and cruise lines, and 2060 industry members from the
Pacific Asia region.
The memberships are divided into the following nine different categories.
Active government members These are primary government
organizations designated by the government of any nation.
Associate government members The membership is given to
organizations that are responsible for the domestic or overseas promotion
of tourism. These are designated by the government of any nation.
Active carrier members These are any government recognized or
certified airlines, ship lines, etc. which provide scheduled passenger service
in Pacific areas.
Associate carrier members The membership is for any government
recognized passenger carrier. This does not provide common carriage as
prescribed for active carrier members.
Active industry members This membership is for the hotel industry.
Allied members Allied members consist of travel agencies, tour
operators, hotel representatives, and firms, representing the various
segments of Pacific travel industry.
Affiliated allied members These are the branch offices of an allied
member, i.e. travel agencies or tour operators.
Associate members ‘These are individual operating organizations such
as communication media, advertising, public relations, and research
agencies. All of them must have an interest in Pacific travel.
Sustaining members These are the organizations or individuals with
cultural or commercial interest in tourism of Pacific region.
PATA functions through Pacific travel conference and workshops,
marketing, and research and development.
140 Tourism Operations and Management

PATA chapters
There are two types of chapters—area chapters and promotional chapters.
The chapters located within the PATA region are referred to as area
chapters. The chapters outside the PATA region are termed as promotional
chapters. The chapters arrange meetings, seminars, conferences, and travel
marts to promote tourism in Pacific region. The travel mart is an annual
event which brings investors and sellers together for tourism development.
The PATA chapter membership provides a wide range of services
and opportunities such as:
¢ information on new trends
¢ help in conserving the region’s heritage, culture, and environment
¢ improvement in travel trade and destination marketing skills through
education programmes
PATA’s India chapter is one of the area chapters. The chapter
undertakes promotional work for promoting India as a destination. PATA
promotion is done through Pacific Travel News, Pacific Area Destination
Handbook and Hotel Directory and Travel Guide.

American Society of Travel Agents

The American Society of Travel Agents (ASTA) is the world’s largest
professional travel trade association. The ASTA was established in New
York in 1931. It was earlier known as American Steamship and Tourist
Agent’s Association (ASTAA).
It aims to foster programmes for the advancement of the travel agency
industry and to promote ethical practices in tourism industry. The
headquarters of ASTA are located in New York City, USA.

Aim

The ASTA’s basic aim is the promotion and advancement of the interests
of the travel industry and the safeguarding of the traveller against fraud,
misrepresentation, and unethical practices.

Services
The services which ASTA offers to travel agents are also beneficial to the
traveller. They are
* sponsorship of conferences on tourism-related matters;
 Tourism Organizations 141

¢ discussion with airlines on fare construction/structure and travel

destinations;
¢ travellers’ preferences research;
* assistance to all agencies in travel-oriented matters; and
* cooperation to other agencies, states, and government.

Membership
ASTA offers two different categories of memberships, namely, active
and allied.
Active membership Active members are year round travel agents or
tour operators.
Allied membership _ It includes airlines, steamship companies, railroad,
bus lines, car rental firms, hotel resorts, and government tourist offices.
The society also has separate membership for students, travel schools,
retail travel sellers, retired travel professionals, and others.
Members get education and training in ASTA travel courses and
seminars, and guidance for business and trade. They also get a newsletter
and a monthly magazine which is a great source of information.

ASTA World Congress

The ASTA World Congress is the most important meeting held annually.
It includes tourism and related workshops, seminars, business meetings,
film presentations, and social events. Members from all over the world
participate in this congress. It acts as an educational programme for travel
agents. The ASTA Travel News is the monthly magazine of ASTA.

GOVERNMENT ORGANIZATIONS IN INDIA

There are several government organizations working in the field of
tourism in India. They are discussed in the following section.

India Tourism
Dept, of Toeurisen
Bont, OF treaties
India Tourism was formerly known as the Department of Tourism. It
functions under the auspices of the Ministry of Tourism and Culture. It is
the nodal agency for the development and promotion of tourism in India.
The administrative head of the Department of Tourism is the secretary
(tourism). The department is assisted by an attached office headed by
the director general and ex-officio additional secretary to the Government
142 Tourism Operations and Management

of India. The office of the directorate general of tourism provides executive

directions for the implementation of various policies and programmes.
The directorate general of tourism has a network of 20 offices within the
country and 13 offices abroad. One subordinate office/project—the Indian
Institute of Skiing and Mountaineering (IISM)/Gulmarg Winter Sports
Project (GWSP), is located at Gulmarg in Kashmir.
Its regional offices are at New Delhi, Mumbai, Kolkata, Chennai, and
Guwahati. Other offices are at Patna, Jaipur, Bangaluru, Varanasi, Agra,
Bhubaneshwar, Port Blair, Imphal, Shillong, Hyderabad, Kochi, Goa,
Aurangabad, Khajuraho, Naharlagun, and Itanagar. The field offices in
India provide facilitation services to tourists and coordinate with the state
governments on tourism infrastructural development.
The Ministry of Tourism is the nodal agency for the formulation of
national policies and programmes and for the coordination of activities
of various central government agencies, state governments/union
territories (UTs), and the private sector for the development and
promotion of tourism in the country. The ministry is headed by the union
minister of tourism.
The administrative head of the ministry is the secretary (tourism).
The secretary also acts as the director general (DG) of tourism (see Fig.
6.3). The office of the director general of tourism (now merged with the
office of the tourism secretary) provides executive directions for the
implementation of various policies and programmes. The overseas offices
are primarily responsible for tourism promotion and marketing in their
respective areas, while the field offices in India are responsible for
providing information service to tourists and to monitor the progress of
field projects. The activities of ISM/GWSP have now been revived and
skiing and various other courses are being conducted in the Jammu and
Kashmir valley.
The Ministry of Tourism has under its charge a public sector
undertaking, the India Tourism Development Corporation (ITDC) and
the following autonomous institutions:
* The Indian Institute of Tourism and Travel Management (IITTM)
and the National Institute of Water Sports (NIWS)
* The National Council for Hotel Management and Catering
Technology (NCHMCT) and the institutes of hotel management
The Ministry of Tourism has six international offices or regional offices
overseas which are located at Sydney, Frankfurt, Tokyo, Dubai, London,
 Tourism Organizations 143

Ministry of Tourism
Organizational Chart

Secretary to the government of India and Director (Tourism)

Joint Secretary Addl. Director

General (MR) Advisor (T)

; Dy. Secreta ;
Director DDG (OM) (Parit. ena Vig.) Director Jt. DG (MG) Under Secretary

Joint Secretary and

Financial Advisor

Director (F)

Addl. Director
General

Jt. Director Dy. Secretary

(OL) (HRD, RTI and DO) DDG (TT) DDG (Hotels)

Abbreviations
Mr — Market research OL — Official language
T — Tourism HRD — Human resource development
OM — Overseas marketing RTI — Right to information
Parlt. and Vig. — Parliament and vigilance DO — Domestic office
F — Finance TT — Travel trade

Fig. 6.3 Ministry of Tourism Organizational Chart

Source: India Tourism Office, Mumbai

and New York headed by officers of different ranks (see Table 6.1). There
are seven sub-regional offices located at Toronto, Paris, Milan,
Amsterdam, Los Angeles, Johannesburg, and Singapore.
The main functions of these 13 overseas offices are to

* carry out overseas marketing

144 Tourism Operations and Management

Table 6.1 India Tourism overseas offices

Sydney (Australia) Dubai—Regional Office

Level 5, 135 King Street, Glasshouse Post Box 12856, NASA Building,
Shopping Complex, Sydney, Al Maktoum Road, UAE.
New South Wales - 2000. Phone : +971-4-2274848, 2274199.
Phone : 61-2-92219555, Fax : +971-4-2274013,
Fax > 61-2-92219777, E-mail : [email protected]
E-mail : [email protected] London (UK)
Toronto (Canada) London WIS 3LH, U.K.
60, Bloor Street, West Suite 1003, Phone : +44-207-4373677(Gen.)
Toronto, M4 W3, B8,Canada. +44-207-7346613 (Direct line).
Phone : +1-416-962-3787/3788, Fax : +44-207-4941048,
Fax : +1-416-962-6279, E-mail : [email protected]
E-mail : [email protected] Los Angeles (USA)
Paris (France) 3550 Wilshire Boulevard, Suit 204,
11-13, Bis Boulevard Haussmann, Los Angeles, California 90010 2485 USA.
F-75009 Paris, France. Phone : +1-213-380-8855.
Phone : +331-45233045, Fax ; +1-213-380-6111,
Fax : +331-45233345, E-mail : [email protected]
E-mail : [email protected] Johannesburg (South Africa)
Frankfurt (Germany)—Regional Office P 0 Box: 412452
Basler Strasse 48, D-60329, Craig Hall 2024, Johannesburg-2000
Frankfurt, AM-MAIN 1, Federal Tel : +27-11-3250880
Republic of Germany. Fax: +27-11-3250882
Phone : +49-69-2429490, E-mail : [email protected]
Fax : +49-69-24294977, Singapore
E-mail : [email protected]
20 Kramat Lane, #01-01A United House
Milan (Italy) 228773 Singapore
Via-Albricci 9, Singapore
Milan 20122, Italy. Tel >, +65 6235 3800
Phone : +39-02-8053506. Fax > +65 6235 8677
Fax : +39-02-72021681, E-mail : [email protected]
E-mail : [email protected] New York (USA)—Regional Office
Amsterdam (Netherlands) 1270 Avenue of Americas
Rokin 9-15, 1012 KK Amsterdam. Suite 1808, 18" floor,
Phone : +31-20-6208991, New York - 10020, USA
Fax : +31-20-6383059, Tel : + 1 212-586-4901/4902/4903
E-mail : [email protected] Fax : +1 212-582-3274
[email protected] E-mail : [email protected]
Tokyo (Japan)—Regional Office
Art MastersBuilding, 6-5-12 Ginza,
Chuo-Ku-Tokyo 104-0061, Japan.
Phone : +81-3-3571-5062/63,
+81-3-3571-5196/97,

Sone
Fax > +81-3-3571-5235,
E-mail : [email protected]
 Tourism Organizations 145

* position India as a preferred tourism destination

* promote various Indian tourism products
The overseas offices are in constant touch with tourists, travel
intermediaries, and the media to promote tourism in India.
The function of India Tourism, both organizational and promotional,
is performed by the following seven divisions:
Planning and programming
Publicity and conference
‘Travel trade and hospitality
Accommodation
Supplementary accommodation and wildlife
Market research
ee
Meee
Administration

Functions/activities of India Tourism offices in India

The function/activities performed by India Tourism offices are as follows:
¢ Collection, compilation, and dissemination of tourist information in
India and abroad, and attending to enquiries of international tourists,
tour operators, and members of the travel industry such as airlines,
steamship companies, and hotels.
¢ Cooperation with international travel and tourist organizations at
government and non-government levels.
¢ Development of tourist facilities of interest to international tourists.
¢ Publicity at home and abroad with the object of creating an overall
awareness of the importance of tourism.
¢ Simplification of frontier formalities in respect of international tourists.
¢ Regulation of activities of the various segments of the travel trade
such as hotels, youth hostels, travel agents, wildlife, guides, etc. catering
to tourist needs.
¢ Compilation of statistics and market research on international tourist
traffic to India and their utilization for more effective tourist
promotion.

As part of its marketing/publicity activities, India Tourism, Ministry

of Tourism brings out brochures, leaflets, maps, films, CDs, etc. on various
topics. In the case of the destination folders, the leaflet/folder/brochure
gives the information about the place or the destination with various
facets of the facilities available, places of sightseeing around the
destination, important telephone numbers, and the contact points of India
146 Tourism Operations and Management

Tourism offices. Similarly, the films deal with the subject in its entirety
covering all destinations of the country.
Following are the various types of publicity material produced by
India Tourism.
e The ‘Incredible India’ theme brochures
¢ Destination leaflets
¢ Heritage destination leaflets
e North East brochures
¢ Maps
e Films
e CDs
As the organization representing the central government, India
Tourism plays an important role in development of tourism in India and
promoting India as a tourist destination in overseas market.

India Tourism Development Corporation

ae
ne Tuten Onveen Coporaior inden
i sit tet
Teena LonrismeDevelepment Comporaiion
(ITDC) is the second most important organization
after India Tourism. It works as a public sector
organization. The main purpose of ITDC is to promote India as a tourist
destination. This organization came into existence because the private
sectors in India were hesitant to invest in tourism infrastructure as the
profitability was doubtful. Although ITDC is a public sector organization,
it works on a commercial level.
The organization came into existence in October 1966 by merging
the Hotel Corporation of India Ltd, the India Tourism Corporation Ltd,
and the India Tourism Transport Undertaking Ltd. The main objectives
and functions of the corporation are to
¢ construct, take over, and manage existing hotels and to market hotels,
beach resorts, travellers’ lodges, and restaurants;
¢ provide transport, entertainment, duty-free shopping, and convention
services;
¢ produce, distribute, and sell tourist publicity material;
e render consultancy-cum-managerial services in India and abroad;
¢ work as full-fledged money changers (FFMC), restricted money
changers, etc; and
* provide innovative, dependable, and value for money solutions to
the needs of tourism development and engineering industry, including
consultancy and implementation of projects.
 Tourism Organizations 147

ITDC, as the name suggests, is aimed at setting up a sound base for

the development of tourism infrastructure. It has been the prime mover
in the progressive development, promotion, and expansion of tourism
in the country. ITDC works in close cooperation with India Tourism and
the Central Ministry of Tourism.
“The Ashok’ is the brand name of ITDC’s products and services. The
Ashok International Trade Division of ITDC offers world-class duty-
free shopping facilities to international travellers at its 38 outlets, earning
crucial foreign exchange for the country and showcasing Indian products
to the world. The Ashok Travels and Tours (ATT) handles work relating
to domestic and international ticketing, hotel booking and tour packages,
car and coach rentals, money changing services, money transfer services,
overseas insurance, and organizing exhibitions. The Ashok Hospitality
and Tourism Management, New Delhi, imparts training and education
in the field of tourism and hospitality. The Ashok Reservation and
Marketing Services (ARMS) division of ITDC, which is mainly
responsible for marketing of Ashok Group of Hotels, participates in
national and international events such as ITB Berlin to ensure direct
interaction with foreign tour operators, to promote various services of
ITDC. Besides this, ITDC is also managing a hotel at Bharatpur and a
restaurant at Kosi on behalf of India Tourism. In addition, it manages
catering services at Western Court, Vigyan Bhawan, Hyderabad House,
and the National Media Press Centre at Shastri Bhawan, New Delhi.
Presently, ITDC has a network of eight Ashok Group of Hotels, six
joint venture hotels, two restaurants (including one airport restaurant),
12 transport units, one tourist service station, duty-free shops at
international, as well as domestic customs airports, one tax-free outlet,
one sound and light show, and four catering outlets.
In a nutshell, the achievements of ITDC are—promoting the largest
hotel chain in India and providing all tourist services, i.e. accommodation,
catering, transport, in-house travel agency, duty free shopping,
entertainment, publicity, consultancy, etc. under a single window. It also
offers consultancy services in the tourism field both for private as well as
public sector.

State Tourism Development Corporation

India is famous for its variety of attractions, which are spread over its
different states. India Tourism and Central Government Tourism
Department looks after all this in general.
148 Tourism Operations and Management

ITDC is an autonomous body whose main function is commercial

part of promoting tourism in the country. But for the proper development
of the destination and its promotion as a tourist attraction, almost all the
states and union territories have their own tourism corporations. State
tourism development corporations (STDCs) concentrate largely on the
domestic tourists. For this, STDCs are involved in construction of low-
income rest houses, development of tourist centres, publicity, guide
provision and arrangement of sightseeing tours, establishment of art
galleries, and provision of shopping and wayside amenities to name a
few.
STDCs have their information centres located at entry points like
railway stations, airports and bus stands to facilitate the incoming tourists.
The main functions of STDCs are listed in Fig. 6.4.

Operation of
hotels,
restaurants
Provision Organize
ue and
waysice conduct tours
amenities

Provide Establish
shopping ———S STDC SS and
facilities manage transport

sees. spa Provide and

Establishment
conduct
of
art galleries entertainment
programmes
Production
and
distribution of
publicity material

Fig. 6.4 Main functions of STDCs

 Tourism Organizations 149

Maharashtra Tourism Development Corporation

eRe AOR
The Maharashtra Tourism Development Corporation (MTDC) is an
example of an STDC. It has its main office at Mumbai, and regional
offices at Pune, Ratnagiri, Nashik, Nagpur, Amravati, and Aurangabad.
MTDC works in the following ways:
¢ Itlooks after the construction of new resorts or public amenities related
to tourism.
¢ It supervises the existing properties regarding their occupancy,
housekeeping, suggestions, and complaints from the tourists.
¢ It updates the product from time to time.
¢ It advertises the activities in the media to create awareness about the
product.
¢ It organizes fairs and festivals at various places of historical importance
to promote tourism and culture.
¢ Itintroduced the Deccan Odyssey, a tourist train, to showcase a variety
of attractions in Maharashtra.

Tourism Finance Corporation of India

ge Tourism Finance Corporation of indiattd, lhe Tourism Finance Corporation of India (TFCI)
Mhastowrewsrex was formed by the Government of India after
the recommendation of the National Committee on Tourism. TFCI was
sponsored by IF CI Ltd, and other all India financial/investment institutes.
This is a separate all India institute that caters to the needs of tourism
and related projects. TFCI became operational from 1 February 1989.
TFCYI’s registered office is situated in IFCI Towers, New Delhi. It holds
shares with IFCI, State Bank of India, Canara Bank, Bank of India, Life
Insurance Corporation of India, National Insurance Co Ltd, etc.

Objectives
The main objective of TFCI is to provide financial assistance to various
enterprises who are setting up and developing tourism-related activities
and facilities. These include hotels, restaurants, holiday resorts,
amusement parks, entertainment complexes, tourist emporia, convention
centres, transport operators, and travel and tour operating agencies. TFCI
coordinates and forms guidelines and policies to finance them. It organizes
seminars, and participates in tourism-related activities organized by the
Ministry of Tourism and by other travel-related organizations.
150 Tourism Operations and Management

TFCI provides all forms of financial assistance for new ventures,

expansion, diversification of projects in tourism industry, and other related
activities. It provides assistance in the form of
e loans
¢ equipment
e finance and leasing
¢ underwriting of public issues of shares/debentures and direct
subscription of such securities, etc.

Activities

The activities centre on tourism promotion in India. It is in the form of

¢ financial assistance for setting up or development of tourism related
activities
¢ tourist-flow survey
¢ facilities and services for tourists
* preparation of tourism master plans
¢ planning for amusement/nature parks
¢ undertaking environmental/carrying capacity studies
In a nutshell, TFCI provides financial assistance for various tourism-
related activities such as vehicle purchase for tour operators, office
equipment, equipment for adventure sports, and working capital for the
industry. TFCI provides finance to the private and public sector also.

The Archaeological Survey of India

mcebitiaay
g
The Archaeological Survey of India (ASI), under the Ministry of Culture,
is the premier organization for the archaeological researches and the
protection of the cultural heritage of the nation.
The objective of the ASI is to maintain the ancient monuments,
archaeological sites, and remains of national importance. Besides this, it
regulates all archaeological activities in the country. For the maintenance
of ancient monuments and archaeological sites and remains of national
importance, the entire country is divided into 24 Circles.
The AST has a large work force of trained archaeologists, conservators,
epigraphists, architects, and scientists for conducting archaeological
research through its circles, museums, excavation branches, prehistory
branch, epigraphy branches, science branch, horticulture branch, building
survey project, temple survey projects, and underwater archaeology wing.
 Tourism Organizations 151

There are at present more than 3650 ancient monuments and

archaeological sites and remains of national importance. These
monuments belong to different periods, ranging from the prehistoric
period to the colonial period and are located in different geographical
settings. They include temples, mosques, tombs, churches, cemeteries,
forts, palaces, step-wells, rock-cut caves, and secular architecture, as well
as ancient mounds and sites, which represent the remains of ancient
habitation.
These monuments and sites are maintained and preserved through
the various circles of the ASI spread all over the country. The circles
look after the research on these monuments and conservation activities;
the science branch, with its headquarters at Dehradun, carries out
chemical preservation, and the horticulture branch, with its headquarters
at Agra, is entrusted with laying out gardens and environmental
development.

PRIVATE SECTOR ORGANIZATIONS IN INDIA

There are several private sector organizations operationg in the field of
tourism in India. Some of them are discussed in the following section.

Travel Agents Association of India

The Travel Agents Association of India (TAAI) was formed in the year
1951 by 12 leading travel agents who felt the need to create an association,
to regulate the working of the travel industry in an organized manner,
based on sound business principles.

Purpose
The primary purpose of TAAI is to protect the interest of its members.
TAAI promotes the orderly growth and development of tourism. It also
safeguards the rights of the travellers by preventing exploitation by
unscrupulous and unreliable operators.
The TAAI symbol is a guarantee for reliable and professional service.
TAAT has been recognized as the ‘voice of travel and tourism’ in India as
it represents all that is professional, ethical, and dynamic in the nation’s
travel-related activity. It is a professional body which coordinates different
sectors of the tourism industry.
It is a non-political, non-commercial, and non-profit making
organization.
152 Tourism Operations and Management

Objective
TAAI aims at the development of travel and tourism in India, by
constantly improving the standards of service and professionalism in the
industry, so as to cater to the needs of the travellers and tourists, within
India and overseas. TAAI is also engaged in promoting mutual
cooperation among TAAI members and different segments of the travel
and tourism industry, by contributing to the sound progress and growth
of the industry as a whole.
TAAI aims to safeguard the interest of the travelling public and
maintain high ethical standards within the travel trade.

Activities
The activities of TAAI are as follows:
¢ TAAI functions as a powerful platform for exchange of thought and
experiences.
¢ Ithelps to promote and maintain the growth of travel and tourism in
India.
¢ It organizes seminars and conventions, and educates the members
about upcoming trends in the industry.
¢ It maintains close contact with world tourism bodies and represents
India for matters affecting the travel and tourism industry.
¢ It offers membership under different categories through which it
develops better understanding among the different segments of the
travel industry.
e It acts as an information dissemination centre for its members.

Membership
TAAI offers different categories of membership. They are as follows:
Active members A TAAI approved head office of a travel agent
providing comprehensive services.
Associate members Branch office locations of an active member.
Allied members Organizations engaged in allied business, i.e. various
segments of the travel and tourism industry such as excursion agents,
tour operators, hoteliers, airlines, general sales agents (GSA) of airlines,
visa handling agents, travel writers and computer reservation systems
(CRS), companies providing services to airlines and agents.
Government members Central and state government departments, and
public sector organizations.
 Tourism Organizations 153

Non-resident members Overseas travel agents, tour operators, hotels, etc.

Indian Association of Tour Operators

The Indian Association of Tour Operators ([ATO) was established in the
MATS WE
MENBER
year 1981.
Purpose
IATO was established to promote international understanding and
goodwill. It is a joint forum of tour operators which promotes and helps
the development of tourism in India. For promotion it organizes
discussions and meetings with other tourism-related agencies.

Objectives
The main objectives of IATO are as follows:

e It aims to promote national integration, international welfare, and

goodwill.
¢ It helps to promote, encourage, and assist in the development of
tourism throughout the country.
¢ It communicates with the Chamber of Commerce, mercantile and
public bodies in India, government departments, IATA, and various
foreign associations, for the interests of travel trade and nominates
members to act on them.
e It aims to setup and maintain high ethical standards in the tourism
industry.
¢ It aims to encourage and promote friendly feelings among the tour
operators and travel agents.
¢ It protects the interests of the members from malpractices of foreign
tour operators.
e It undertakes activities which the members cannot undertake
individually.
e It promotes equal opportunities for all visitors to enjoy tourism and
travel, without distinction of race, creed, colour, and nationality.
e It organizes tours to foreign countries with the help of airlines and
Government of India’s tourism offices and other organizations.
e It conducts and helps in seminars, group discussions, courses of
studies, and cultural meetings.
¢ It assists students in the field of development of tourism through
scholarship, to pursue higher education, study, and research.
¢ Jt collects information and publishes it for the benefit of its members.
154 Tourism Operations and Management

Membership
[ATO offers different categories of membership. These are as follows:
Active members This membership is given to any company or firm in
India, recognized by Ministry of Tourism as a travel agent/tour operator
for at least two years. The main activity of the company should be tourism
promotion and foreign exchange earning.
Associate members This membership is given to any other office of an
active or allied member.
Allied members This category of membership is for the firm or company
engaged or associated with tourism industry such as carrier companies,
hoteliers, restaurateurs, excursion agents, transport contractors, shipping
companies, state tourism corporations, trade publications, etc.
International (allied) members Any international firm engaged with
tourism in India.
Honorary members This is offered to the persons who are Hall of Fame
awardees and the persons who have rendered services to tourism in
national or international field.
The IATO publishes a newsletter called JATO Imprint to update its
members on developments in tourism and achievements of its members.
It is also involved in taking promotional tours abroad in collaboration
with Air India Ltd, the flagship carrier of our country.

Federation of Hotel and Restaurant Association of India

The Federation of Hotel and Restaurant Association of India (FHRAI) is
an apex body of four regional associations, representing the hospitality
industry. FHRAI was established in the year 1954 and incorporated as a
company under the Indian Companies Act in 1955. It was formed by the
Hotel and Restaurant Association (HRA) of North India, New Delhi;
HRA of Eastern India, Kolkata; HRA of Western India, Mumbai; and
South India Hotels and Restaurants Association, Chennai. FHRAI is
sponsored by these four regional associations. FHRAI is committed to
provide and protect the interest of the hospitality industry by giving
concessions to the industry.
The FHRAT is a member of the International Hotel Association (IHA).
Its head office is the Federation Secretariat in New Delhi. The office
bearers are a secretary general, joint secretary, deputy secretary, and
other staff.
 Tourism Organizations 155

It provides a link between the hospitality industry, political leadership,

academicians, international associations, and stake holders. It also helps
the hospitality industry to grow, prosper and keep pace with the
development of the international scenario.
FHRAT has more than 3300 members. They are 2052 hotels, 1016
restaurants, 105 associate members, and four regional associations. It
employs more than fifteen million direct employees. It also has a
hospitality management institute under it, the FHRAI Institute of
Hospitality Management.

Objectives
The objectives of FHRAI are to

e unite the four regional associations and work towards encouraging,

promoting, and protecting by lawful means the interest of the hotel
and restaurant industry and raising the standards of the industry both
at home and abroad;
¢ consider policies, guidelines, legislations, by-laws, and regulations
that affect the industry and discuss with the government authority
and initiate, support, or oppose by lawful means such legislation or
regulation by various means;
¢ advise and inform members about national/international matters
pertaining to the industry and disseminate statistical and commercial
information through surveys and research;
* print, publish, and circulate, papers, periodicals, books, and other
literature, conducive to advance the interests of the industry,
¢ assist in affording training facilities for the hospitality personnel and
for promoting and running a hotel institute; and
¢ convene national and international conferences in the interest of the
hospitality industry and organize meetings to encourage friendship
between members, and discuss questions of current importance.

Activities
The activities of FHRAI are
e dissemination of information to the members;
¢ organizing conventions and seminars which are an ideal forum to
exchange experiences and ideas;
¢ conducting research on the hotel and restaurant industry and updating
members on the latest developments,
156 Tourism Operations and Management

¢ training human resource in different spheres of the hotel and

restaurant activities; and
¢ conducting regular professional development programmes to develop
and update the knowledge and skills of hotel professionals.

Membership
The FHRAI offers different categories of membership which are as
follows:
The FHRAI hotel membership This is offered to a hotel who is a member
of one of the regional associations. The hotel should have at least ten
rooms which should be functional, and a restaurant in the hotel is
mandatory.
The FHRAI restaurant membership The restaurant, seeking the
membership, must be operational and must be a member of one of the
regional associations. It should have a minimum of 25 covers.
The FHRAI associate membership _ It is offered to companies and firms.
The companies or firms must be a member of a regional association. It
should be associated with the hospitality industry. Institutes of hotel
management can avail of this membership.
The federation works in close coordination with the government
keeping the government informed about the problems faced by the hotel
and restaurant sectors. This has helped the industry through tax reliefs
and fiscal incentives, for the hotel industry. The FHRAI hosts an annual
four days All India Hotel and Restaurant Convention, in which state and
union government representatives are invited to participate in discussions
pertaining to problems and their solutions, developmental plans, and
promotional activities.

FHRAI Institute of Hospitality Management

The FHRAI Institute of Hospitality Management (IHM) was established
in the FHRAIT’s golden jubilee year, 2005, and today offers undergraduate
and postgraduate degree/diploma programmes in hospitality
management, for top, middle, and entry level professionals under one
roof. A new three year graduate programme in hospitality, catering and
tourism with the Sikkim and Manipal University, a one year programme
in various hospitality operations, and a four-year international programme
in hospitality and catering with the EHL, Switzerland are being offered
at present.
 Tourism Organizations 157

Formulate
tourism
policy ,
Forum
for Sustainable
discussion development

Protect interest Research

of and
members racists aon travel statistics

Tourism
———e ee
Laas side —

ca ae publications
‘care

Destination 7
marketing : sey
and -
promotion providers

Facilitate =panees pb
networking alte
tourism industry

Fig. 6.5 Activities undertaken by various tourism organizations

The Rural Bharat Certification Scheme is a unique training programme,

provided to uneducated youth from villages and the remote areas of the
country, who are trained to become globally marketable; corporate
culture is inculcated in them through FHRAI THM.
The FHRAI has formed an educational trust and publishes the
bimonthly FHRAI magazine.

NON-GOVERNMENT ORGANIZATIONS
Non-government organizations (NGOs) play an important role in the
socio-economic development of the nation. These organizations are
158 Tourism Operations and Management

formed when individuals or groups of individuals perceive an idea and

wish to achieve certain objectives or goals, i.e. they are formed with a
specific purpose which with respect to tourism may include issues such
as environmental conservation, protection of forests, water conservation,
etc. in order to protect the environment for the future generation. They
point out the imbalances in development along with the people’s
perceptions of that development. They help the local community realize
whether the resources and assets pertaining to tourism have been correctly
used or misused. They also point out the direction in which tourism
development should take place.
The central government formulates the tourism policy along with the
political party in power. This policy needs to be implemented by the
various state governments without taking into consideration the major
differences in terms of geographical, cultural, economic, and social
characteristics in each state. Government directives which can affect the
entire nation need to be discussed to review the consequences which the
host population may have to face. They need to be approved before
they are enforced. In this context, the NGOs play an important role and
act as mediators and facilitators.
Tourism policies may identify beaches, hill stations, religious sites,
etc. as potential tourist spots, but unilateral tourism policies, which are
imposed, can affect the local people at the destination, and may deprive
them of their traditional income generation methods. At the same time
such polices may destroy the natural treasures of the seashores and forests.
NGOs help the tourism development by ensuring that the problems and
solutions are looked at not only from the policy makers’ point of view
but also from the locals’ viewpoint who bear the brunt of such unilateral
decisions.
Many NGOs work dedicatedly towards protecting the environment,
such as the Kerala Sastra Sahitya Samiti (KSSP), which initiated a public
campaign against the ‘Silent Valley’ project that was about to destroy a
large forest. The Orchid Hotel in Mumbai, which is Asia’s first certified
five star ecotel (eco-friendly hotel), promotes eco-friendly practices and
equations, and was established for carrying out research, training, and
promotion of holistic tourism policies. It questions the real benefits of
tourism to the host communities and studies the social, cultural, and
economic impacts of tourism. Its aim is to minimize the negative impacts
of mass tourism.
 Tourism Organizations 159

Problems Faced by NGOs

Voluntary organizations that come forward to assist the locals in solving
certain issues are likely to face certain problems such as:
* suspicion towards the NGOs’ motive to work; locals feel that such
organizations must be having their own vested interests;
¢ limited funds to carry out work; and
¢ indifference shown by the locals towards the NGOs, often dampens
their interest.
NGOs thus play a vital and challenging role in tourism development
by acting as mediators and facilitators between the local population and
the policy decision makers. In spite of the problems faced by them, they
work for saving the planet.

OTHER IMPORTANT TOURISM ORGANIZATIONS

Some other international and Indian tourism organization are discussed
as follows.

World Travel and Tourism Council (WTTC)

WTTC is a high-level private sector organization. The membership
comprises Chief Executives of multinational accommodation companies,
catering, cruises, entertainment, recreation, transportation, and other
travel related companies.

International Hotel and Restaurant Association (IH&RA)

IH&RA represents the interest of the world’s hotels and restaurants.

International Airline Passenger Association (IAPA)

This association represents the views of passengers in issues regarding
aviation.

International Congress & Convention Association (ICCA)

This association specializes in managing international conferences and
events, and trains professionals at all levels through its academy which
has been specially founded as a training organization.

International Civil Aviation Organization (ICAO)

It is a specialized agency of the United Nations with a common purpose
of promoting civil aviation on a global scale.
160 Tourism Operations and Management

Travel Agents Federation of India (TAFI)

This organization’s membership includes tour operators, non-IATA
agents, hotels, taxi operators, foreign exchange agents, GSA (general
sales agents), and GDS (global distribution systems).

IATA Agents Association of India (IAAI)

The only national association representing IATA’s accredited travel agents
in India with membership limited to them.

Indian Tourism Infrastructure Ltd (ITIL)

It is anewly formed tourism infrastructure company looking after tourism
infrastructure.

Poona Hoteliers Association (PHA)

This is a local association of hotels in Pune and its members include
luxury as well as mid-sized hotels. It is affiliated to the Hotel and
Restaurant Association, Western India (HRA WI).

Indian Railway Catering and Tourism Corporation Limited (IRCTC)

This is a Government of India enterprise, which is responsible for catering
at the railway stations and in the pantry-cars on the trains. Other functions
performed by the corporation are e-ticketing, tourist trains, booking of
cabs, hotels, various tour packages and loyalty programmes for the
travellers of the Indian Railways network.
This chapter shows us that the number of organizations working for
the betterment of tourism as a whole as well as the tourism industry is as
vast as the number of activities undertaken by them. Organizations are
actively working to create awareness about our environment and its
conservation at all levels, keeping the negative impacts of tourism in
mind and making efforts to minimize them.

SUMMARY
Tourism organizations have been formed to plan, develop, and monitor all
tourism-related activities around the globe. They play an important role in
marketing destinations and managing a country’s tourism industry. Unplanned
tourism activities can have a detrimental effect on the destination. These
organizations help in promoting sustainable tourism development.
 Tourism Organizations 161

Many tourism organizations exist in both the private as well as public sectors,
at the international, national, state, and local level. Tourism organizations are
essential. The UNWTO is a specialized agency of the United Nations and is the
leading organization in the field of tourism. It plays a central and decisive role
in promoting the development of responsible, sustainable, and universally
accessible tourism. It performs many activities. Many other organizations such
as ASTA, PATA, UFTAA, etc. work on an international level. National organizations
such as TAAI, FHRAI, and TFCI, which feel the need to protect the members and
regulate the working of their sectors, have formed associations. TFCI provides
financial assistance to various enterprises that are setting up and developing
tourism-related activities and facilities.
IATA is one of the oldest air-transport organizations formed by a group of
airlines which works to promote safe, reliable, secure, and economical air services
for the benefit of all air travellers.
Government organizations working for tourism in India are India Tourism,
ITDC, and STDCs. These organizations have a network of offices which promote
various tourism products in India and abroad. Non-government organizations
view tourism activities in terms of benefits to the locals and the environment.
They discuss the policy decisions which the government plans to implement and
point out the pros and cons of such decisions. Organizations, such as the ASI
and the NGOs, help in preserving the national and cultural environment of our
country.

KEY TERMS
Carrier Any public transportation company such as an airline, ship, rail, bus, etc.
Clients The individuals or organizations who are customers of a travel agency.
Conference A meeting of people for discussing formal matters which are of
common interest. It involves planning, solving problems, etc.
Congress These are usually general sessions of delegates belonging to a particular
organization or a body engaged in special studies.
Customer Here it refers to the consumer of tourism services; a person who
purchases and/or enjoys the tourism services. A customer becomes a passenger
when he boards any means of transport. Also referred to as clients.
Infrastructure These include facilities such as roads, railways, airports,
electricity, drainage systems, water supply, buildings, etc. at the destination.
Package A prepaid travel plan sold at a fixed price which includes constituents
such as transport, accommodation, meals, transfers, sightseeing, etc. The
price of the package is lower than the price of its individual components
taken together.
162 Tourism Operations and Management

Private sector Entrepreneurs or business houses, which provide facilities and

services such as hotels, restaurants, transport, etc., with a main motive of
making profit on their investment. Includes large and small operators like
MNC hotels, travel agents, tour operators, etc.
Promotion All activities such as advertising, publicity, personal selling, and
public relations which are carried out to enhance sales.
Public sector Public sector or the government, whose primary role is governance,
enactment, and implementation of policies and regulations, and in the context
of tourism, providing basic infrastructure, promoting and marketing
destinations, providing and maintaining attractions and monuments, etc.
Travel agent An individual or a firm who is authorized by the airlines, hotels,
etc. to ennance the sale of all travel related services.
Tourist board An office maintained by a government to promote tourism in a
particular area.
Tourist market The sum of actual and potential buyers for a tourism product or
service in a specified geographical location, at a given point of time.
Tour operator A company or a firm which designs tour packages and makes
them available to customers through travel agents.
Unethical Unprincipled/wrong practices followed in the industry.

CONCEPT REVIEW QUESTIONS

Explain the need for organizations in the tourism industry.
How does IATA help the airline industry?
Explain the role of UNWTO in tourism promotion.
Explain how STDCs help to promote tourism in India.
PP
WDY
mh How does the organization PATA benefit its members?
6. What do the following abbreviations stand for?
(a) UNDP (b) SIHRA (c) IUOTO (d) ICCA
(e) IRU (f) IRCTC
7. Fill in the blanks:
(a) _ is the annual event of PATA.
b) The head office of FHRAI is located in
c) The monthly magazine of ASTA is the
d) The headquarters of UNWTO is located at
e) looks after travel agents in India.
f) is the newsletter of IATO.
g) provides financial assistance to various
enterprises developing tourism-related activities.
 Tourism Organizations 163

CRITICAL THINKING QUESTION

What activities, do you feel, NGOs should take up in your city pertaining to
tourism development?

PROJECT/ASSIGNMENT
Visit the STDC office in your state and find out which are the ongoing activities.
Collect handouts and brochures and prepare a detailed report.

REFERENCES
(Note: All websites mentioned below were accessed between 20 June 2008 and
12 July 2008.)
Bhatia, A.K. 2002, International Toursm, Sterling Publishers Private Ltd, New
Delhi.
Gupta, S.P., K. Lal, and M. Bhattacharya 2002, Cultural Tourism in India,
Indraprastha Museum of Art and Archeology, New Delhi.
IGNOU 1994, Schools of Social Sciences TS-1 Foundation Course in Tourism, New
Delhi.
IGNOU 1994, Schools of Social Sciences TS-2 Tourism Development: Products,
Operations and Case Studies, New Delhi.
IGNOU 1994, Schools of Social Sciences TS-6 Tourism Marketing, New Delhi.
IATA, Foundation, January 2004, International Travel and Tourism Training
Programme, Montreal.
IATA Book—Module one 2004 IATA Training Institute Montreal.
http://en.wikipedia.org/wiki/world_Tourism_organisation
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www. IATA.org
www.asta.org
www.uftaa.org
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www.maharashtratourism.gov.in
www.incredibleindia.org
www.tourisminindia.com
www.theashokgroup.com
 The Travel Agent and the
Tour Operator

Learning Objectives
After reading this chapter you should be able to:
explain the need for intermediaries in the tourism industry
define the terms travel agent and tour operator
describe how the distribution system in tourism functions
describe the functions performed by a travel agency and a tour operator
differentiate between a travel agent and a tour operator
appreciate the liaison between the travel agents/tour operators and the travel suppliers
understand the contents of a package tour
define the role of guides and escorts
know the various sources of income for a travel agency

INTRODUCTION
s we have read in the earlier chapters, tourists require a wide
range of tourism-related services, ranging from assistance in
procuring a passport, visa, airline tickets, accommodation,
een about the destinations and attractions, local transport, and
 The Travel Agent and the Tour Operator 165

other services. Tourism suppliers or the primary and secondary

constituents of the tourism industry need to approach their potential
customers and meet their needs effectively and efficiently. However, this
task is not so simple because of the vast geographical distance between
the suppliers and the consumers, as consumers are spread all over the
globe. The task of the intermediary is to link the suppliers of tourism
services to the consumers so that the demands of both the suppliers and
the consumers are fulfilled. This link in the tourism system is the
intermediary, i.e. the travel agent or tour operator, and it forms the
primary means through which the tourism product is sold to the consumer
or tourist. They form the channel of distribution or the place from where
the tourism offerings are made available to the consumer. Their role is to
bring the consumers or buyers and the suppliers or sellers together.
Distribution plays an important link in the tourism system, linking tourism
supply and demand. Tourism offerings have been traditionally distributed
either directly or indirectly through the travel agents and the tour
operators (see Fig. 7.1). However, recent technological developments have
revolutionized the distribution channels and today consumers are dealing
directly with the suppliers to get the best deals. We will read about the influence
of information and communication technology later in Chapter 16.
Travel agents; either working for a travel agency or individuals working
on their own; assist their clients in planning their trips, planning the tour
itineraries, making reservations for airlines, hotels, and other services.
They act as intermediaries between the customers and the principal
suppliers. They sell a variety of travel products and services and help
their clients in turning their dreams into reality.

Principal Suppliers

Customer Travel agent General sales agent (GSA) Tour operator

Customer Travel agent Travel agent

Customer Customer

Fig. 7.1 Distribution channels used by suppliers

(The longer the distribution channel the higher the cost of the tourism product.)
166 Tourism Operations and Management

The term ‘travel agent’ was coined in the early years of the eighteenth
century. Travel in the old days was very simple with no travel formalities
that exist today. The different modes of transport available today were
also not present in those times. People were more motivated to travel
only after the transportation systems such as railroads developed and
organized travel came into picture. The rising income due to the
industrialization and urbanization is another factor that has helped in
the growth of organized travel.
The development of organized travel can be associated with Thomas
Cook, the founder of Thomas Cook Group Limited, who was not only
the first organized travel agent in the world but also the inventor of the
travel and tourism business as it is today. Thomas Cook, as discussed in
Chapter 2, persuaded a railway company to carry passengers at a very
cheap fare, to attend a quarterly delegate meeting from Leicester to
Loughborough in England. His idea was put into operation and around
570 travellers travelled by the Midland Counties Railway at a specially
reduced fare. After this success, Thomas Cook organized excursions to
various other places. In 1843, around 3000 school children were taken
on a trip from Leicester to Derby in England, which was supposed to be
the largest group of the time.
Much has changed on the tourism scenario since Thomas Cook
chartered a train at a reduced fare. The introduction of jet travel has
given a boost to the business of travel agencies. The improved living
standards and the improvements in technology and transportation system
have also motivated people to travel. Earlier, the travel agents were mainly
into arranging some forms of transport reservations for tourists. But today,
they have to perform many functions. People are travelling in large
numbers both in their own countries as well as to foreign destinations.
This has resulted in the growth of travel agencies all over the world.
Due to hectic life schedules, tourists today prefer to book their travel
arrangements through a travel agent.

THE TRAVEL AGENT

Travel agents act as intermediaries serving between the varicus service
providers and travel consumers. They sell and may, at times, market the
products and services provided by the suppliers such as hotels, transport
operators, airlines, railways, cruise operators, tour operators, etc. The
travel agents play an important role in the development and promotion
of travel sales. They put together all the components of the tourism
product and sell them to the tourist.
 The Travel Agent and the Tour Operator 167

The travel agent thus organizes the travel for the consumer. Travel
agents are also referred to as ‘travel consultants’, ‘travel counsellors’, and
sometimes even ‘tour operators’. Travel agents serve as a link between
the travel suppliers and the tourists. Hence, a travel agency is like a retail
store, with a uniqueness; that it serves on behalf of both the suppliers
and the consumers. For example, a client walks into a travel agency for
booking a tour. The travel agency after getting an initial booking amount
from the client will book the air tickets/rail tickets, arrange for a pick-up
from the airport/railway station, make reservation at the hotel, book a
vehicle for sightseeing, etc. Thus, the travel agent has not only served
the tourist but also given business to the airlines/railways, transport
operator, hotel, etc. Each and every tourist does not have the time to
book and arrange for the travel and the suppliers also cannot get in touch
with every potential customer. That is why the services of a travel agent
are considered important (see Table 7.1).
Table 7.1 Benefits of intermediaries

Benefits to suppliers Benefits to customers

Financial: Saves cost of setting up Convenience: All travel arrangements are

office and employing sales personnel organized under one roof by an expert.
to deal with customers. Travel agents Amount of effort spent making bookings
collect their own payments. with different suppliers is reduced.
Retail outlets in different cities are Provide expert knowledge: Intermediaries
not required. have thorough knowledge about tourism
products/destinations, travel formalities,
etc. and can advice customers accordingly.
Minimizes risk: Intermediaries Saves money: Tour operators get hotel
increase the number of distribution rooms, airline seats, etc. at a discounted
channels and reduce the supplier's rate because they purchase in bulk and in
risk of loss of revenue due to unsold advance.
rooms, seats, etc.
Bulk purchasing by tour operators They offer packages at a cost lower than
ensures minimum occupancy levels what the consumer would pay if he were
in hotels, number of seats booked to make all arrangements on his own.
on a flight, etc.
Greater variety and choice, latest
information and brochures on all products
and services is available.
Minimizes risks and uncertainties about
quality product as intermediaries are well
informed and can recommend good
products.
168 Tourism Operations and Management

Definition
A travel agency may be an individual, a business firm, or company which
acts as an intermediary in the sales and promotion of different travel-
related services, such as accommodation, airlines, railways, road transport,
cruises, etc. and earns commission received on selling services to its clients
(see Fig. 7.2).
A travel agency can also be referred to as a retail travel agency since
it sells the various services offered by the travel suppliers directly to its
customers.

TYPES OF TRAVEL AGENCIES

In the earlier days travel was mainly by sea and railways; tickets were
sold directly at the offices of the steamship companies and the railway
stations. But when the airlines and the transport operators started
operating, they were unable to earn profit, as they could not sell enough
tickets through their own offices. The airlines, therefore, were forced to
identify sales outlets and thus started the concept of retail travel agencies.
To boost their sales, the airlines offered higher commission to the travel
agent.

Airlines
(domestic and
international
air tickets)

Hotel | Tour operator

Travel
Agency

Transport ihe anseep

operator _ Tourist
(e.g. car, (individual/
group)
coach)

Cruises

Fig. 7.2 Principal suppliers for a travel agency

 The Travel Agent and the Tour Operator 169

Retail Travel Agency

A retail travel agency is one which sells the different travel-related services
directly to its clients on behalf of the principal service providers/suppliers,
i.e. hotels, airlines, cruises, railways, coach operators, etc. and in return
earns a commission from them. The retail travel agency may add a mark
up cost on these travel services. Thus, it earns its income from the
commission earned from suppliers as well as from the mark up.

Definition
According to Airlines Reporting Corporation (1987), ‘a retail travel agency
is defined as a business that performs the basic functions of quoting fares
and rates, books seats for airlines, railways, coaches, makes reservations
for hotels, arranges for passport, visa, and other documentation services,
and acts on behalf of the tourism vendors’.
The services performed bya retail travel agency are as follows:
e preparation of tour itineraries
¢ transportation—air, rail, and road
¢ accommodation
e insurance services
e foreign exchange
¢ travel documentation
e special interest tours.

Wholesale Travel Agency

A wholesale travel agency plans, organizes, develops, and sells package
tours through a network of travel agencies or directly to the clients if it
operates as a retail travel agency. Some travel agencies operate as both
retail as well as wholesale travel agency, for example, Thomas Cook,
Travel Corporation of India, etc.
The wholesale travel agency purchases the various travel products
and services in bulk from the principal suppliers and sells to the retail
travel agency or to the clients directly. Thus, the wholesale travel agency
acts as a medium or a link between the principal suppliers and the retail
travel agency.

Definition
A wholesale travel agency is one which assembles the different
components of travel and forms a package to suit the needs of tourists. A
170 Tourism Operations and Management

wholesale travel agency thus designs package tours and sells them under
its agency’s name.

Features
The features of a wholesale travel agency are as follows:
e Itserves as a link between the principal travel suppliers and the retail
travel agency.
¢ It negotiates with the travel suppliers for best possible rates on bulk
booking.
¢ It assembles the various travel components such as hotel, airlines,
rail, and ground transport to form a package tour.
¢ It conducts research to know the changing preferences of tourists.
¢ It markets and promotes its products through advertising, etc. to
increase sales volume.
There are many ways in which travel agencies can be further classified.
Travel agencies are generally classified as follows:

Full Service Agency

A full service agency organizes and handles all types of tours for leisure,
free individual travellers (FITs), group individual travellers (GITs),
corporate travellers, etc. for inbound, outbound, and domestic
destinations. Individual departments work on the different functions of
travel agency, for example, leisure department, inbound department,
outbound department, trade fairs, accounts, etc.

Commercial Agency
Commercial agencies are specialized for meeting the requirements of
corporate travellers. Such agencies are mainly located at the business
centres and cater only to the business travellers. Walk-in or individual
travellers are not served by these agencies. The airline, hotel, car/coach,
documentation, etc. are all looked after by the trained staff.

Implant Agency
It is a branch office of a full-fledged travel agency/tour operat
or
functioning on the premises of a corporate office. It handles all the
travel
arrangements of the corporate office.
 The Travel Agent and the Tour Operator 171

asle 7.2 Different bases for classification of travel agencies

Services offered Generalist travel agent—Offers a wide range of services for all types of leisure and
business travel.
Specialist travel agent—Sells only special products to niche markets.
Geographic presence Multiples—Large organizations with many retail outlets in major cities.
Miniples—Number of branches located in a particular region.
Independents—Generally small family-run agencies which are not part of any
travel agency chain.
Purpose Leisure travel agents—Deal with all travel arrangements for the leisure travellers.
Business travel agents—Offer services to business travellers. Some corporate travel
agencies are housed within the company.
Type Traditional travel agents—They include all of the above types of electronic travel
agents or online travel agents (OTA)—allow consumers to access information and
make online bookings.

Special Interest Travel Agency

Specializes in creating tour programs for special interest groups, such as
adventure, wildlife, religious, etc. For example, Pug Marks, Pune.

E-travel Agents or Online Travel Agents (OTA)

Also known as virtual/online travel agents (VTA’s) or e-retailers, they
are the new generation travel agents such as MakeMyTrip.com, Yatra.com,
ezeegol.com, Travelguru.com, and lastminute.com. These web portals
allow consumers to access information and make online bookings.
Chapter 16 elaborates the concept further.
There are many ways in which travel agencies can be classified. They
may also be classified as given in Table 7.2.

-UNCTIONS OF A TRAVEL AGENCY

The travel agency being an intermediary has an active role in providing
quality services to the tourists (see Exhibit 7.1).
The travel agency performs a number of functions such as:
1. Providing travel-related information
Planning tour itineraries
Liaisoning with the tourism suppliers/vendors
Tour costing
Ticketing—domestic/international
pclaeReservations
ae
Sah
oO
172 Tourism Operations and Management

Exhibit 7.1 Role of the travel agency in the tourism industry

r
e Travel agents play an important role in promoting and developing any new tourist
destination.
e They have contributed significantly to the growth of domestic, inbound, and
outbound tournsm.
e Foreign exchange earnings from inbound tourists have boosted the economy of
the country.
e More than 70 per cent of tourist traffic is generated by the travel agents.
e The travel agents give around 60-80 per cent business to the airlines.
e The travel agency serves as a convenient location for the tourists in meeting and
purchasing their travel requirements.
e It also helps in providing ancillary services such as passport, visa, insurance,
foreign exchange, etc.
e The travel agent, while selling travel products, promotes tourism in the country.
e Domestic tourism not only helps in revenue earnings but is also important for
he national integration. Tourism is also promoted within the country.

7. Documentation
8. Settlement of accounts
9. Trade fairs/business tours/meetings, incentives, conferences, and
exhibitions (MICE)
10. Foreign exchange (Forex)
Figure 7.3 shows the various departments in a large-scale travel agency.

Providing Travel-related Information

This is one of the most important and basic functions of a travel agency.
The tour professionals should have detailed knowledge of the tourist
destinations, distance from the airport/railway station, different categories
of hotels and the services provided by them, etc. The staff should be
fluent in the local language, English, and foreign languages, if dealing
with foreign countries.

Planning Tour Itineraries

The tour professionals after receiving the client’s preference of destinations
to be visited, his/her approximate date of travel and duration, the mode
of transport, hotels, etc. has to plan the itinerary to suit the client’s needs.
The itinerary is a tour programme in sequential order which is designed
day wise to identify the origin points, destinations en route points, hotel,
meals, mode of transport, sightseeing, car/coach and other relevant details
related to the tour. Chapter 10 discusses the concept in detail.
173

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The Travel Agent and the Tour Operator

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174 Tourism Operations and Management

Some travel agencies and tour operators design their own tour
programmes and sell them as tour packages.

Liaisoning with Tourism Suppliers/Vendors

The tourism suppliers are the airlines, railways, hotels, transport operators,
cruise companies, tour operators, insurance companies, etc. The travel
agents, before selling any form of travel product to their clients, have to
contact these service providers for selling products on their behalf. The
travel agents have to negotiate for the best possible rates from the service
providers. The suppliers give a certain amount of fixed percentage as
commission to the travel agents for selling their products. Some service
providers also give net rate as per their relationship and business with
the travel agents. The travel agents usually make an agreement or contract
with the tourism suppliers in this regard. The commission structure, period
of contract, and terms and conditions are mentioned in the agreement.

Tour Costing
After planning the tour and negotiation for rates with principal suppliers,
the next job of the travel agent is to do the tour costing. The tour costing
is done for both the inclusive tours (package tours) and individual tours.
The tour costs are worked out on per person basis which include the
hotel, meals, transfers, sightseeing by car/coach, guide fees, and airfares.

Ticketing
This is one of the most common functions of a travel agency. The travel
department of a travel agency has two sub departments—domestic
ticketing and international ticketing.
The executives at the travel desk should be aware of the flight schedules
of various airlines, the air fare applicable for the journey, special fares,
discounted fares, night fares, classes of travel, the booking and cancellation
rules, the city/airport codes, reservation codes, special services, etc. The
changes that occur from time to time, in international as well as domestic
air schedules and the sudden additions/suspensions of new flights and
airlines, make the travel executive’s job very challenging. Thus an up-to-
date knowledge of the schedules of various airlines is very important.
The computer reservation system (CRS) is commonly used for making
the airline bookings. The travel executives should also be familiar with
the different global distribution systems (GDSs) such as Amadeus, Galileo,
and Sabre (refer to Chapter 16).
 The Travel Agent and the Tour Operator 175

Settlement of Accounts
Settlement of accounts with the tourism suppliers is one of the major
functions of a travel agency. The executives working in the accounts
department should be familiar with and have thorough knowledge of
foreign currencies, their cross value, exchange regulations, etc.

Documentation
This department helps its clients in providing facilitation services such as
passport, visa, health certificates, insurance, customs regulations,
immigration and permits required for restricted areas, baggage allowed,
etc. for travelling abroad. Chapter 8 elaborates the concept further.

Business Tours/Trade Fairs

Apart from handling the leisure tourists and arranging domestic, inbound,
and outbound tours, another major and much-in-demand job for the
travel agent is the handling of business tours.
The travel agent has to meet the different demands of the business
tourists. The business tourists may visit a particular destination for various
reasons pertaining to their work such as to attend a business meeting,
conference, convention, travel fair, selling products, meeting clients, etc.
The travel agent has to work in coordination with the internal departments
such as ticketing and documentation for the air booking and for arranging
services such as passport, visa, insurance, etc. The travel agent has to
arrange venues for meetings, conventions, and exhibitions; transport,
accommodation, and sightseeing facilities, required at these venues and
business centre facilities such as fax machines, laptops, video conferencing,
etc.

Reservation
The travel agent after getting confirmation and initial payment from the
clients has to book airline seats, hotel rooms, transport arrangement, and
other services as per the requirements of the client. The tour professional
should thus be familiar with the terms and abbreviations used for
reservation procedure for airlines and hotels. The phonetic alphabet is
preferably used for making reservations on telephone (refer to Chapter 13).
Once the booking has been confirmed and payments made, the confirmed
tickets, itinerary, and travel vouchers have to be handed over to the client.
176 Tourism Operations and Management

Forex

Providing foreign currency, travellers’ cheques, etc. to tourists and getting

it endorsed on the passport is yet another important function performed
by the travel agencies. This saves the tourist the trouble of visiting a
bank or an exchange bureau.

SETTING UP A TRAVEL AGENCY

A lot of planning goes into starting and setting up of a travel agency. Any
kind of business is risky and the person involved should have proper
knowledge of the product he/she is selling. Similarly, for a travel agency
business, the person should have good product knowledge and
presentation skills. He/she should be clear about the product which he/
she wishes to sell. For example, whether the travel agency wants to handle
domestic tours, inbound tours, outbound tours, or all of these, has to be
decided in advance. This has to be decided by the travel agent at the
initial planning stage. The staff to be employed should be trained properly
to handle the queries asked by tourists. Qualified and trained staff should
be hired by the employer to handle the clients.

Requirements of a Travel Agency

The travel agency can be successful if it meets the following minimum
requirements:
¢ enough finance to run the business;
¢ acentrally located premises or near a business centre;
¢ qualified and trained staff;
e approvals from government and other organizations, such as India
Tourism Office, Ministry of Tourism, IATA, and TAAI; and
¢ authorization to sell on behalf of principal suppliers, such as hotels,
transport operators, etc.

Infrastructure, location, and adequate finance

For a setting up travel agency, the financial requirements are not very
high. Investments are mostly needed for the following areas:
¢ buying or hiring of space for office
¢ furniture
¢ computers
¢ laptop
* telephones, fax machine, photocopying machine, etc.
 The Travel Agent and the Tour Operator 177

¢ office stationery
* promotional material (brochures, etc.)
e salary for the employees

While setting up the travel agency, proper thought needs to be given

to the location of the travel agency. It should be near a business or
industrial area, centrally located, or in areas where there is demand for
travel. Hence, some research should be done on this.

Approvals by concerned organizations

A travel agency should have the necessary approvals from the concerned
organizations. For example, if the agency is into selling air tickets, it has
to get approval from International Air Transport Association (IATA),
which is the world organization of scheduled airlines. Commission is
paid only to the approved travel agents by the airlines. The travel agency
has to submit the application form along with other required documents.
The travel agency has to fulfill the following conditions:
e ability to generate and procure air passenger transportation;
e adequate financial status;
e location of the travel agency near to business area; and
¢ qualified and experienced staff.
IATA gives an approval only after an inspection by the concerned
authorities. The travel agency should also have recognition from India
Tourism Office, Ministry of Tourism, and licences from the industry
suppliers such as airlines, Reserve Bank of India, Passport Office, and
recognition from the hotels. This is essential for earning commission from
the suppliers. The travel agency should be registered under the Shops
and Establishment Act.

SOURCES OF INCOME FOR A TRAVEL AGENCY

The travel agency and tour operator’s main source of income is from the
commission, which they get from the various travel service providers.
The travel agency sells the airline seats, railway seats, hotel rooms, cruise
packages, car rental services, etc. and in return are paid a commission
for each travel product sold by them for the respective airlines, railways,
hotels, cruise line companies, transport operators, and tour operators
(see Fig. 7.4). The commission structure differs from supplier to supplier
and also as per the business given by the travel agency and tour operator
to these service providers. It ranges from five per cent to 20 per cent.
178 Tourism Operations and Management

Airlines
(international
and domestic)

: Hotel
Railways bookings

Sources of
Income

Package Transport
tours operators

Cruise
companies

Fig. 7.4 A travel agency earns revenue from these principals

Commission on selling their products to the clients

The industry suppliers pay these approved agents a commission on the
services sold on their behalf. The commission is usually a fixed percentage
of the sales prices of the service or the product sold, and is paid to the
travel agent/tour operator after the sale of the service or product. The
commission is deducted from the final payment and the balance is
forwarded to the principal. For example, a client purchases a tour worth
Rs 20,000. If the commission for that tour is 10 per cent for the tour
operator then the travel agent will retain Rs 2000 and forward the tour
operator the net amount of Rs 18,000.
Some service providers such as airlines give commission only to
officially appointed travel agencies. Officially approved agencies are those
agencies which are approved by IATA. To be an IATA approved agency
it is necessary that the staff working in the agency is IATA qualified.
Non-IATA accredited agents work as subagents for IATA accredited
agents and earn a commission of around 4.5 per cent of the basic fare.
Commission received from principal suppliers is shared by non-appointed
or non-IATA travel agents who obtain tickets from LATA appointed travel
agents. Such commission is called split commission or shared commissio
n,
 The Travel Agent and the Tour Operator 179

Incentives or overrides
In addition to the commission, some service providers may pay incentives
to the travel agents who have given large amount of business in terms of
sales volume to them. These incentives are referred to as overrides or
bonuses.
The commissions given by the principal suppliers are normally fixed,
but some suppliers offer the agency an override, i.e. higher the sales,
higher will be the commission rate. Sometimes a part of this commission
may be passed on to the customer as a discount rate.

Service charges
Service charges are another source of revenue to travel agents which are
charged for services rendered to the clients. For instance, for getting a
passport or a visa the travel agency charges the client as they do not
receive any commission on selling these services. Some service providers
may give the travel agent very less commission which is insufficient to
cover the expenses of the travel agency. In such cases the travel agent
charges the client for services rendered. The service charges differ from
travel agency to travel agency and on the nature of service provided.
Apart from the commission and service charges, the agency gets
additional income from other sources. They are as follows:
Mark up on tours
A travel agent buys the travel products from the principal suppliers in
large volume, at a net rate or discounted rate, and creates his/her own
package tour. The travel agent tries to get the best prices for each
component of the package tour and then adds a mark up to the tour cost
for selling it to the clients directly or through other travel agents.
Wholesale fee
Some wholesalers may not pay the usual 10 per cent commission to the
travel agents for selling their tours. Instead, they will pay a flat fee for
each reservation made.

Representation fee
The tour operators or airlines may not have their branch offices in all
cities of the country or world. In this case, the tour operator or the airline
may appoint a general sales agent (GSA), who could be a travel agent, to
handle their business in these cities, so as to generate higher sales. The
GSA will handle the services of the tour operator or principal service
180 Tourism Operations and Management

provider to promote the sales. The tour operator will pay a fixed fee or
commission and a budget for advertising and promoting their product to
the GSA.

THE TOUR OPERATOR

The roles and functions of a tour operator are different to that of a travel
agency. A travel agency may work as or offer the services of a tour
operator.
Tour operators are professionals who should have all the required
skills, expertise, and knowledge of organizing travel. The tour operator
assembles all the different components of travel and sells it as a package
tour, to and from a destination, with complete ground arrangements.
Most of the tour operators have their own fleet of vehicles to cater to the
transport segment. The tour operator offers different kinds of package
tours as per the requirements of individual travellers, groups, retail travel
agencies, business firms, etc. These package tours may be escorted or
unescorted as per the need.
Planning and organizing package tours is a time consuming process.
Many tourists and individual travel agencies do not want to bother
themselves with planning, booking the airline, and hotel rooms, etc. They
want this to be arranged by someone else. This demand has thus led to
the origin of package tours. The tour operator sells the package tours as
per the interests and needs of the tourists. The tour costs of these package
tours are different for different class of tourists, as per their budget. The
package tours include the transportation (air, rail, or road), accommodation,
tour escort/guide, etc. The individual who puts together all these different
services into a package is called a tour operator.
To be more precise, a tour operator is an individual who provides
information, and plans and organizes the travel with various service
providers to create a package tour. The tour operator also ensures that
the tour runs smoothly without any hassles. A tour operator is sometimes
also referred to as a tour consultant or a tour coordinator.

Definition
“Tour operator is one who has the responsibility of putting the tour
ingredients together, marketing it, making reservations, handling all
financial and accounting aspects, and selecting as well as managing tour
managers’ (Poynter 1993). :
Responsibilities of a tour operator include the following:
 The Travel Agent and the Tour Operator 181

¢ Providing information of the tourist destinations, different kinds of

accommodation available, transport facilities, any entertainment, etc.
e Planning the tour effectively.
¢ Coordinating and liaisoning with the service providers or principal
suppliers.
* Monitoring the entire operation of the tour. In case of any problem,
providing some alternative arrangements with least inconvenience
to the tourist.

TYPES OF TOUR OPERATORS

A tour operator specializes in the planning and organizing of prepaid,
preplanned tours and sells these directly either to the tourists or to the
retail travel agency. The tour operator may target market some specific
areas to sell the tours. The tour operator may be international, domestic,
or specialized in a region or continent. Some tour operators cater to
international as well as domestic markets. The tour operator can be an
individual/independent tour operator or a travel agency functioning as
both.
Tour operators are broadly classified into the following as per the
functions performed.

Inbound Tour Operator

Inbound tour operators operate and handle the inbound tourists coming
into the country from overseas. The tourists are provided various services
right from their arrival such as airport transfers, accommodation, car/
coach for sightseeing, entertainment, etc. till their departure. The inbound
tour operators get their business either directly from individual inbound
tourists or through the foreign tour operators. The inbound tour operator
helps in boosting the economy of the host country by contributing to the
valuable foreign exchange earnings.

Outbound Tour Operator

Outbound tour operators operate tours to foreign countries, which can
be either to a single country or for more than one country. The tour
operators design and market package tours for outbound tourists for a
specific predefined period. All the necessary arrangements for
documentation such as passport, visa, insurance, etc. are also taken care
of by the outbound tour operators. These operators work in coordination
182 Tourism Operations and Management

with the foreign tour operators for the accommodation, transfers, ground
arrangements, sightseeing, etc.

Domestic Tour Operator

Domestic tour operators conduct tours within the country and cater to
the needs of individual and group travellers. The domestic tour segment
has witnessed a phenomenal growth in the recent years as many large
tour companies have entered the market. For example, Thomas Cook,
Cox & Kings, Kesari Tours, etc.

PACKAGE TOURS
The various components of travel, such as accommodation, transportation
(air, water, rail, and road), attractions, etc. are combined and sold as a
package tour to the tourist by the tour operators and travel agents. A
package tour is thus a single product which is planned, organized,
combined, and sold as an ‘all inclusive tour’ at a specified price by the
tour operators.
Package tours are in use since the 1600s. Thomas Bennet organized
the first inclusive tour in the year 1821. He set up his business as a tour
operator in 1850 and made the first individual tour itinerary and booked
the hotel and other arrangements. But the credit for the concept of package
tours goes to Thomas Cook. In 1855, Cook planned and organized all
the different components of a tour package and sold it as an inclusive
tour to the tourists. After the success of his tour, other travel agents and
tour operators also started operating similar tours to other tourist
destinations.

Definition
A tour package is a total tourism product which is planned and operated
for either independent travellers or for groups, to a single destination or
to multiple destinations. It consists of air travel (generally) and land
arrangement segments for a specified number of days, with a set of tangible
and intangible features for a set price.
A package tour is thus a programme which is organized for an
individual or for group travellers having all the necessary tour ingredients
such as accommodation, transportation, sightseeing, and also, if required,
guides/escorts, entertainment, etc.
Different people have given different definitions, as tour package is a
broad concept.
 The Travel Agent and the Tour Operator 183

Holloway (1992) defines the tour package as, ‘A tour package is a total
tourism product as it generally consists of transport from the generating
area to the destination, accommodation at the destination and possibly
some other recreational or business tourist services.’
‘A tour package is an advertised journey including specific features,
arranged and promoted with tour literature by a tour operator and paid
for in full by the tourists before starting on the tour.’ (Gregory 1985).
A package tour is thus a product which is planned, organized, operated,
and sold at a set price to individual tourists or groups, to a single or
multiple destinations, usually involving air travel, accommodation, and
land arrangements for the number of days specified.
Some experts have defined package tours based on
1. Destinations and
2. Interests of the tourists

Destinations
The destinations are further classified into single country, area tour, single
city tour, and two city tour.
Single country package tours Organized for only one country, for
example, China.
Area tour package tours 9Organized for visiting more than one country,
belonging to a common area. For example, tours to the South-East Asian
countries such as Singapore, Thailand, and Malaysia; and tours to Europe
and America.
Single city tour package tour Organized for only a single city, for
example, Aurangabad, Hyderabad, etc.
Two city tour package tour Organized for two cities. For example, Delhi—
Agra tour, Jodhpur—Udaipur tour, etc.

Interests

Some package tours are designed and organized as per the different needs
and interests of the tourists. Tourists may visit certain destinations for
different purposes including
¢ cultural sites/historical sites such as Taj Mahal, Agra; Lake Palace,
Udaipur; and Pushkar Fair, Pushkar
¢ special interest tours, for example, rail tours, such as Kalka—Shimla
toy train, Palace on Wheels, etc.
184 Toursm Operations and Management

e adventure tours designed for adventure activities such as trekking,

mountaineering, wildlife sanctuaries, hang gliding, paragliding, etc.
¢ sports tours, for example, Olympics, golf tours, car racing, cricket,
football, etc.

Advantages
Advantages of package tours are as follows:
e Package tours save time, as the tour operator plans and organizes the
travel details with the principal travel suppliers, for the tourist.
e Unnecessary correspondence is also reduced.
¢ They work out to be cheaper than the other tours.

Disadvantages
Disadvantages of package tours are as follows:
¢ Package tours are planned well in advance and do not have personal
choice of destinations for the tourist.
¢ The tourist cannot change the itinerary as per his/her choice as it is
already preplanned and prepaid.
* Some tourists may not be interested in visiting all the places mentioned
in the package tour.

Components of a Package Tour

A package tour consists of the following components/elements:
¢ accommodation
¢ travel by airline/railway
¢ transfers to and from airport/railway, and hotels
° sightseeing
¢ guide/escort
The above components can be broadly classified into two parts:
1. Travel arrangements
2. Ground/land arrangements
Travel arrangements
Travel is related mainly to the air transportation in the tour itinerary.
The tour operator negotiates with the airlines for group bookings and
also bulk purchase, and combines it with the land arrangements to sell
it
as a package tour. Some tour operators also coordinate with air charters
,
which work out to be cheaper than the regular scheduled airlines.
Air
travel is one of the core elements for the inbound and outbound tour
package.
 The Travel Agent and the Tour Operator 185

Ground/land arrangements
It includes the transfers, i.e. pick-up and drop from the airport/railway
station and the hotel, accommodation, meals, car/coach for sightseeing,
guides/tour escorts, entertainment, shopping, and other special
requirements or services for the tourist. Ground arrangements are looked
after by the ground handlers.
Ground handlers are agents that work on behalf of international and
domestic tour operators, travel agents, and principals. They look after all
ground arrangements, once the tourists reach the destination, such as
transfers from airport to hotel, booking of hotel, car rentals, excursions,
entry tickets for attractions and activities, restaurant bookings, shopping,
etc. The tour operators coordinate and negotiate with the hotels and
transport operators for discounts or special rates.

TYPES OF PACKAGE TOURS

Tour operators nowadays offer a wide variety of tour packages as per the
needs of the tourists. These are discussed as follows:

Independent Tours
Independent tours are specially designed or tailor-made as per the
requirements of the individual tourist. Such tours are not published in
the company’s tour brochure. The travel agent/tour operator combines
all the travel and land arrangements and coordinates with the principal
suppliers for special or net rates. A mark up is usually added to the price
to cover his/her expenses. Such tours are also known as foreign
independent tours (FITs) and domestic independent tours (DITs),
depending on the location of the destination of the package tour.

Inclusive Tours
For inclusive tours, the tour operator purchases all the different
components of the tour package in bulk from the principal suppliers at a
special or group rate. The package is advertised, and sold to the tourists
at an inclusive price by the tour operator. The inclusive tours work out to
be cheaper than the independent tours for the tourists, as the tour operator
gets it at a group rate. However, the tour members have to travel in a
group for the entire tour.
Sometimes tour operators incur a loss for inclusive tours if they are
unable to sell the required seats and rooms, which are usually purchased
one year in advance from the suppliers.
186 Tourism Operations and Management

Escorted Tours
The tours which include the tour escorts or group leaders are known as
escorted tours. The tour escort is present right from the commencement
of the journey upto the return of the tour. The tour escort assists the
travellers throughout the entire tour. His/her function is to receive the
tour members at the airport/railway station and help them through
customs clearance and other airport formalities both at the time of arrival
and departure. Such tours are also known as conducted tours or hosted tours.

Business Tours
The business tours are specially designed and packaged as per the
requirements of the clients. People travel for business for various reasons
and for varying durations. The tour operator arranges the
accommodation, facilities/services required, transport, and sightseeing
as per the schedule of the business visit. Some tour operators also arrange
conference tours and incentive tours.
Conference tours require special skills, as special arrangements have
to be made for such tours. The tour operator has to look after the
conference arrangements right from the initial stage of organizing,
selecting the venue, marketing the conference, booking of accommodation
and transport, secretarial services, conference equipments, conference
facilitation such as registrations, interpreters, special events, entertainment,
local sightseeing, and other facilities.
More recently, incentive tours have also appeared and companies are
offering incentives to their dealers or employees in the form of additional
payments, gifts or some kind of a holiday. The incentive tours are very
popular and are usually of shorter duration. Such tours are a motivational
factor for the employees and the dealers. The tour operators have to pay
attention to details such as size of the group, the cuisine preferred, gifts,
theme parties, baggage handling, etc. The size of the group for incentive
tours varies from one company to another.

GUIDES AND ESCORTS

Guides and escorts have gained importance ever since tourism has been
recognized as a great economic activity. Guiding and escorting tours are
now being considered as highly professional business activities. Special
skills and qualities are required by the guides and escorts if they are to be
successful in this field.
 The Travel Agent and the Tour Operator 187

Guides
A guide serves as a public relations representative for his/her particular
site, city, region, and country. A guide should therefore be knowledgeable
about history, geography, sociocultural practices, etc. related to his/her
area of concern, so as to inform the tourists accordingly. In India, the
India Tourism Office, Ministry of Tourism regularly conducts courses to
train new guides. The guides are given licences and are approved by the
Ministry of Tourism to work as freelancers. The fees are decided upon
by the India Tourism Office depending on half day, full day, or overnight
charges and also for foreign languages as required.

Definition
‘A professional guide is in varying degrees a business person—often
freelance, sometimes an employee; a travel industry representative; a public
relations representative for his or her site, city, region, and country—as
well as an educator, an entertainer, and a public speaker, among other
roles.’ (Kathleen Lingle Pond, The Professional Guide, New York 1993).

Location guides
In India location guides can be categorized into the following different
categories depending upon the locations.
Monument guides The monument guides are specialized in describing
the history of the monumental heritage of India. The monument guides
should have proper historical knowledge of the monument and the region
so as to describe the same to the tourist. They should be aware of all
historical facts of the monuments like the date and time taken for
construction, the architect, and the purpose of constructing the monument.
The guides should be able to make the entire particulars interesting to
the tourists in the form of fables and anecdotes.
Museum guides The museum guides should have knowledge about the
various artifacts/exhibits displayed at the museum. They should know
the area of interest of the tourists. This will help the guides in deciding to
curtail or extend the time spent in visiting the museum. The tourists
might also appreciate the varieties and the artistic merits of the artifacts,
in which case more time should be spent in the museum.
Wildlife guides The guides located at wildlife sanctuaries should be
familiar with wildlife tourism. Many tourists visiting any wildlife reserve
are at times not familiar with the wildlife they are visiting and thus it
188 Tourism Operations and Management

becomes important for these guides to instruct them and give proper
information.

City guides
The city guides should be able to profile the tourists visiting the city and
their purpose of travel. The city guides should be aware of the opening
and closing timings of the tourist attractions and also on which particular
day the attractions are closed. They should pay detailed and careful
attention on the commentary of the tour. The guide should see that the
tour does not physically tire the tourists. There should be enough and
adequate stops during the tour along with sufficient time for shopping.

Skills required for guiding

Leadership A tour guide should have good leadership qualities such as
decision making, flexibility, enthusiasm, confidence, sensitivity, and
should have a good sense of humor.
Factual knowledge The guide should have knowledge about the
topography, geography, history, culture, religion, folk art, folklore,
economy, etc. related to the city, region, state, or country.
Presentation skills The guide should have good presentation skills such
as a Clear voice and good body language. The voice should be lively and
the guide should be able to explain the site in simple language.
Grooming Personal hygiene, positive attitude, good manners, and
politeness are the other qualities which are desirable in guides and escorts.

Escorts

An escort has to accompany the tourists right from commencement till

the end of the tour. He/she has to perform the role of a tour leader or a
tour manager. The escort may accompany the tourists to historical sites,
rural areas, pilgrimage places, shopping, museums, etc. The escort has
also to look after the facilitation of the tour such as the check-in formalities,
customs clearances, etc. The escorts have to take care of the tourists,
throughout the tour and at the destination.
The tour escort has to plan the tour properly with a schedule of events
and live the tour day by day. He/she has to be prepared with alternative
arrangements incase of any unforeseen circumstances due to weather,
transport strike, accident, etc. The tour escort should be well prepared in
advance with all the travel arrangements such as checklists, tour itinerary,
 The Travel Agent and the Tour Operator 189

commentary of tour, and travel tips. The tour escort should also be able
to handle the tour in case of special unforeseen situations. Some frequently
encountered problems during a tour which may arise are loss of money,
loss of passport, sickness of any tour member, missing tour members,
etc. The tour escort should be able to handle the tour members in an
effective way and advise them accordingly so that time schedules are
maintained and there are no missed trains or flights.
The travel agent and the tour operator, thus form the two main
intermediaries in the tourism distribution chain. They play a vital role in
not only providing various services to the traveller, but also in promoting
destinations and in the overall growth of the tourism industry. Guides
and escorts at the destination or accompanying the group, are an essential
part of the tourism experience. Intermediaries thus form a vital link
between the tourism supply and demand in the tourism system. Tour
operators and travel agents too have to keep pace with the technological
advances and changing scenario of the tourism industry and offer value
added services and professional services.

)UMMARY
Travel agents and tour operators are the main intermediaries in the tourism
industry, serving both the suppliers of tourism products and services as well as
the tourists or customers. Principal suppliers, such as hotels, airlines, transporters,
etc. need a distribution channel so that their products reach the customers.
Because of the perishable and intangible nature of the tourism products they
play a very important role in ensuring that the products produced by the suppliers,
are consumed.
A travel agency is a retail outlet for the promotion and purchase of different
travel-related services. A tour operator is a person who assembles all the different
components of travel and sells it as a package tour to and from a destination
with complete ground arrangements. These package tours may be escorted or
unescorted depending on the needs of the customer. Travel agents perform
many functions such as providing travel information, planning itineraries,
ticketing, reservations, documentation, tour costing, and Forex- and MICE-related
services. Their source of income is mainly from commissions received from the
various suppliers and service charges from the customer. They are a vital link
between suppliers and customers. They offer a wide variety of tours to suit the
needs of tourists both for independent and group tours.
190 Tourism Operations and Management

KEY TERMS
Commission A payment made by a supplier to an agent for services rendered.
It is generally calculated as a percentage of the value of the transaction and
percentage varies between products and services and differs from one country
to another.
General sales agent (GSA) An agent generally appointed by an airline or other
principal in a particular territory to look after inquiries, reservations, ticketing,
and promotional campaigns for the airline or other principals. Also called
sole agent.
Ground handlers Agents who work on behalf of tour operators, travel agents,
and principals and look after all arrangements once tourists reach their
destination.
Hotel voucher Coupon issued by a tour operator or travel agent to the tourist,
which covers prepaid elements of a trip like accommodation and meals. It is
surrendered by the tourist on arrival at the hotel, which later claims payment
from the issuing authority.
Intermediary An intermediary in tourism is any third party or organization between
the supplier and customer who facilitates the purchase of the tourism product.
Mark up The extra amount added to the per person cost of a tour to get the final
cost and one of the main source of income for travel agents and tour operators.
Miscellaneous charges order (MCO) An all purpose voucher issued by an airline
and drawn on any organization such as accommodation, food and beverage,
sightseeing, transfers, etc. which is willing to accept it in prepayment for
services or charges.
Overriding commission An additional commission paid by a principal such as
an airline or a tour operator, to a travel agent asa bonus or an incentive to
generate high sales.
Principal A provider of travel-related products and services.
Tour operator or tour wholesaler Tour operator or tour wholesaler is a person
or organization who buys individual travel services in bulk from principal
suppliers and combines them into a package tour which is sold to travellers
directly or through travel agents.
Transfer Transport service for arriving and departing passengers to take them
from one transport terminal to another or to hotels, usually free between
airport terminals, as a hotel courtesy service or as part of an inclusive tour.
Travel agent An intermediary between the principals and the customer who
sells travel services and provides travel-related information. Its main function
is that of a retailer for principal suppliers and customers.
Travel voucher An all purpose voucher issued by a tour operator to cover the
prepaid elements of a package tour such as meals, local transport, entrance
fees for attractions, etc. It is given to the ground handling agent.
 The Travel Agent and the Tour Operator 191

CONCEPT REVIEW QUESTIONS

Define travel agency and tour operator.
Mention the different types of travel agencies and tour operators.
What are the different kinds of package tours?
Briefly describe the functions of a travel agency.
Explain the role of guides and escorts.
Give the sources of income of a travel agency.
Describe the role of travel agency in tourism industry.
WNY What are the minimum
HR
CONAN requirements for setting up a travel agency?

PROJECT/ASSIGNMENT
Visit an IATA approved travel agency in your city and study the different
departments and their functions and prepare a detailed report.

REFERENCES
Bhatia, A. K. 1997, Tourism Management and Marketing: The Business of Travel
Agency Operations, First Edition, Sterling Publishers, New Delhi.
George, R. 2007, Managing Tourism in South Afnca, Oxford University Press
Southern Africa, Cape Town.
Gregory, A. 1985, The Travel Agent: Dealers in Dreams, Fourth Edition, The
Prentice Hall International Ltd, USA.
Holloway, Christopher J. 1992, The Business of Tourism, Third Edition, Pitman
Publishing, London.
Kamra, K.K. and Mohinder Chand 2002, Basics of Tourism Theory, Operation and
Practice, First Edition, Kanishka Publishers, New Delhi.
Keyser, H. 2002, Tourism Development, Oxford University Press Southern Africa,
Cape Town.
Middleton, V.T.C. 1994, Marketing in Travel and Tourism, Butterworth
Heinemann, Oxford.
IGNOU 1994, Schools of Social Sciences TS-1 Foundation Course in Tounsm, New
Delhi.
IGNOU 1994, Schools of Social Sciences TS-2 Tourism Development: Products,
Operations and Case Studies, New Delhi.
IGNOU 2003, Schools of Social Sciences MTM 13 Tourism Operations, New Delhi.
Negi, J. 1998, Travel Agency and Tour Operation, Concept and Principles, First
Edition, Kanishka Publishers, New Delhi.
Poynter, James M. 1993, Tour Design, Marketing and Management, Prentice Hall,
London.
 Travel Formalities and
Regulations

Learning Objectives
After reading this chapter you should be able to:
understand why travel documents and regulations are necessary
e know the different types of travel documents and understand the travel they are required for
e know how to fill application forms for obtaining various documents
¢ understand the procedure to be followed for obtaining the various documents
¢ understand the significance of laying down different travel regulations

INTRODUCTION

any rules and regulations affect tourism both directly and

indirectly and tourism professionals should be aware of the
latest rules and travel formalities which need to be completed
before undertaking any outbound travel. All travellers are governed by
the rules and regulations which are in force in the country which is being
visited.
Travel regulations are necessary for the security of the country being
visited. They protect the country from the entry of illegal migrants,
 Travel Formalities and Regulations 193

terrorists, and criminals, and illegal traffic of banned goods such as

narcotics and drugs, animal hides, explosives, arms, etc.
Certain formalities need to be completed by tourists before they can
leave their country or enter another country. This is in the interest of the
tourist as well as the country being visited. These formalities are in the
form of official documents and endorsements which need to be procured
well in advance. Completing the necessary formalities in the form of
obtaining a valid passport or getting a visa should be completed before
finalizing other details of travel, as these processes are time consuming
and may take a couple of weeks. Without the requisite documents, travel
is not possible abroad. Generally there is no restriction on Indian and
foreign nationals visiting any state in India except for the border states
and islands, for which a special entry permit is required.
Most travel formalities are compulsory while others are desirable. The
travel agent should discuss the benefits of completing all formalities before
the client embarks on a trip. Travel formalities which need to be completed
before undertaking any travel abroad are as follows:
1. Passport
. Visa
. Compulsory vaccinations
. Travel insurance
& . Foreign exchange
bw
&w
a
6. Restricted area permits
Tourists should be familiarized with customs regulations, baggage
allowed, and goods permitted to be carried in their hand baggage to
avoid offloading of items at the airport.

PASSPORT
A passport is an official document issued by a competent public authority
of a country to its nationals, to help the holder to cross any border or
port of the country, without any hindrance or delay. It is issued only
when the government does not have any objection for the person to
leave his country. It is also a document of the highest legal order.
The passport is issued in the name of the country, i.e. the president/
chancellor/king, etc. It is a booklet issued to the holder by the Ministry
of External Affairs with the help of the Ministry of Home Affairs. The
passport is the holder’s international identity which shows the holder’s
national status in the world.
194 Tourism Operations and Management

Every passenger going abroad must possess a passport or other official

documents of identity. These documents establish the bearer’s identity
and nationality and authorize them to travel outside their own country.
It is a permission to pass the port.
To be valid for international travel, a passport must be used within the
period of validity specified on it. It contains a photograph of the holder,
and bear endorsements and visas/tourist permits required for the journey.
It is on the basis of this document with its endorsements that a national
of a country is permitted to leave his/her country for a certain period of
time, for an entry into a foreign land for various purposes. It does not ask
for religion, caste, or creed but only for the place of origin of the individual.
Passports usually indicate the countries for which they are valid, or
that they are valid for all countries. If a passport is valid for most countries,
excepting a few, the latter will be listed separately.
The public authorities competent to issue passports and other
documents of identification vary from one country to another. Outside
the country of residence, these documents can be issued by the
diplomatic or consular offices representing the country concerned. Any
citizen of the country can apply for a passport and if the government
has no objection to issue him/her the same, then the External Affairs
Ministry will issue him/her a passport. To apply for a passport, the
holder must be enjoying the citizenship of the country whose passport
has been applied for.

Citizenship
The Oxford dictionary defines the term citizen as ‘a member of a state or
Commonwealth, either native or naturalized’ or ‘an inhabitant of a city’
or ‘a free man of a city’. A person can get only one citizenship and can
hold only one passport at a time. However, some countries nowadays
are offering dual citizenship, for example, India.
Citizenship can be awarded to a person on the basis of the following
six conditions:
By birth By being born in a particular nation or a country, a person is
entitled to receive that country’s citizenship. For example, if Mrs X, who
is an Indian citizen, gives birth to a child in the USA, then the child
would automatically get American citizenship.
Through parents One can get the citizenship of parents by natural course.
 Travel Formalities and Regulations 195

By normalization or by application If a person is settled in a particular

country for many years and then wishes to have citizenship of that country,
he/she would receive citizenship, only after fulfillment of all government
procedures. For example, a person enters the USA on a student visa and
continues his/her studies. After his/her stay in the USA for 10 years, he/
she applies for a green card and then applies for a citizenship.
Political asylum Political asylum is given only in extraordinary
situations, especially to those who have become victims of political/social
problems. For example, during the Fascist regime many Jews fled from
Germany and took shelter in the USA and were given political asylum.
Salman Rushdie, a famous writer has been given political asylum by the
UK. Even Bangladeshi writer Taslima Nasreen is under political asylum
in India. As these people’s lives are in danger in their respective countries,
they are being given political asylum by other countries.
Through marriage If one of the spouses holds a different citizenship
then if the other spouse wishes, he/she can get the spouse’s citizenship.
For example, Mr. X from India goes to the USA and then marries Ms. Y,
who is an American citizen, then if Mr. X wishes he could get American
citizenship or vice versa.
Citizenship by honour or invitation This is given only to very
extraordinary persons. For example, when Neil Armstrong returned from
the Moon, many countries honoured him by giving their citizenship.

Definition
A passport can be defined as an official document which is issued by a
government or competent public authority, identifying a traveller as a
citizen or a national of a country, giving particulars about him/her (with
his/her photograph), and recognizing his/her right to return to that
country. The word passport has originated from the French meaning,
passer, i.e. to pass through any port, or harbour.
Apart from bearing details of the national identity of the passport
holder, the passport generally requests that he/she be allowed to pass
the port (border) freely without any hindrance and that he/she should be
given protection and assistance, when necessary. A passport entitles or
authorizes a citizen or national to leave a country and the right to return
to it.
196 Tourism Operations and Management

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Fig 8.1 A passport is used as a proof of identity

Figure 8.1 shows the identity of a passport holder. A passport can be

used as the following:
e means of access to another country
¢ means of identification (nationality)
e evidence of legal entry into another country.
Some countries still allow joint passports. That means that two or more
people travelling together can hold a single joint passport. Spouses and/
or their children may obtain a joint passport. The passport holder may
also travel using the passport without being accompanied by those who
are included on the passport, provided that they remain at their country
of residence.
All passports generally bear the following information of the passport
holder, which may vary from country to country.
¢ Family name/surname e Given name
 Travel Formalities and Regulations 197

¢ Nationality e Date of birth

¢ Place of birth e Gender
¢ Date of issue e Place of issue
¢ Holder’s signature e Holder’s photograph
¢ Name of father/legal guardian e Name of mother
e Name of spouse e Address
¢ Validity period (expiry date) ¢ Children
e Endorsement ¢ Validity for certain countries
¢ Emigration status as well as restrictions to
travel to others

Types of Passport
Three types of passports are currently issued in India. They are as follows:
Ordinary or normal passport This dark blue coloured passport is issued
to any ordinary citizen of India.
Official passport This white/grey coloured passport is issued to
government officials or other persons travelling on government missions.
The request to issue such a passport has to be made by the concerned
person’s department along with personal information of the applicant.
Diplomatic consular passport This red coloured passport is issued to
persons holding diplomatic or consular status as per international law
and custom.
Although most people will travel with a passport, it should be noted
that other travel documents can also be used in lieu of a passport. These
documents are valid only for limited countries and purposes. Therefore,
it is always necessary to check carefully whether such documents are
recognized by the country of the passenger’s destination and transit, even
if such documents bear an endorsement for such countries. The travel
agent should contact the issuing authority to check that it can be used for
any travel arrangements being organized by him.

Other Documents Required to Pass a Port

The following are special kinds of documents, issued in special
circumstances that can be used instead of a passport.

Bona fide certificate Issued to domiciles for travel to Nepal or Bhutan.

Pilgrim pass This is issued by the Hajj Committee for Hajj, Umma,
and Zirat pilgrims. Every year approximately 21,000 such passes are issued
by the Hajj Committee. Every state of India has a quota for such passes.
198 Tourism Operations and Management

d to those seamen
Continuous discharge certificate (CDC) It is issue
by the directorate
who have to join on duty or go off duty. It is issued
general of shipping.
For example,
Military I-cards These are issued to defence personnel.
for goodwill visits of naval ships.
oned
The status of the passport is much higher than the above menti
of any type
papers. The basic difference in this is that, while the holder
ents
of passport can travel anywhere and for any purpose, the docum
ic
mentioned above are special documents which are issued for specif
travel only.

Responsibility of Travel Agent

It is the responsibility of the travel agent to ensure that the passport is
valid for
e the country to which the client is travelling and
e the period of time for which the client intends visiting a country.

A passport is normally issued for 10 years and is usually valid for all
countries of the world. If the passport is not valid in a specific country it
is mentioned in the passport. However, the agent can also get detailed
information in the Travel Information Manual (TIM).
An agent may be confronted with several passports from various
countries and should always check the validity because it may vary. The
expiry date of the passport is very important, and can be located in
different places within the passport according to the country of issue. It
must never be assumed that all passports are the same as those issued in
one’s country, and the validity of the passport should be checked with
regard to which countries it covers, and that it has not, or will not, expire
during the course of travel. It should be noted that some countries demand
that a passport has a minimum validity available after the client intends
to leave a country. Therefore, this also needs to be checked. For example,
India requires six months validity. The agent on checking ‘!)> passport
should be able to determine the client’s nationality. A person is considered
to be of the nationality of the passport he/she is travelling on, regardless
of where he/she was born or if he/she holds dual citizenship. In this
regard, it is wise to ensure that a client who has dual nationality travels
on the passport which the agent has actually seen.
 Travel Formalities and Regulations 199

The travel agent should carefully check all travel arrangements and
intentions of those travelling on a joint passport to see that they intend to
stay together. The agent should recommend separate passports if he feels
that a family may split.
The agent should also check if the child included on a joint passport
qualifies for such passport. Some countries will only allow children less
than 16 years of age to be included. A child over 16 years of age or those
turning 16 during the intended travel will require a separate passport.
The joint passport will have to be returned to cancel the child’s name
from that passport before a separate passport is issued.
The travel agent should always inform the passport holder or his/her
client the following:
1. The passport is a valuable document. It should always be either
in a person’s own custody or in the custody of a person duly
authorized by him/her. It must not be altered or mutilated in any
way (see Example 8.1). If lost or destroyed it should be imme-
diately reported to the nearest Indian Mission and to the local
police.
2. It is an offence under the Indian Passports Act 1967 to give false
information in the application. Passport facilities can be denied
on grounds of suppression of factual information, submission of
false particulars, willful damage of passport, and for making
unauthorized changes in the passport.
3. A photocopy of the passport should be kept in a safe place.
Without this, relevant issuance of a duplicate passport in case of
loss/damage/theft may be delayed.
4, The expiry date of the passport should be checked on receiving it
for the first time and one should remember to get the passport
renewed well in advance of the expiry date.

Example 8.1
On an Air India flight, a passenger travelling from Dubai to Trivandrum decided
to take a dessert—gulab jamun—served on the flight to him, home. He put the
sweet in a plastic bag and put the bag in his pouch. On arrival, to his dismay,
he found that the sugar syrup had got into his passport. One must remember
that a passport is an identity. One should keep it safe and away from food and
drink.
200 Tourism Operations and Management

If the passport is lost/stolen locally, the passport holder should inform

the nearest police station, register a complaint and then inform the
passport office.
While travelling abroad if a passport is lost then the holder should
take the following steps:
e inform the embassy immediately;
¢ register a police complaint and inform the issuing passport office;
and
¢ obtain acertificate or travel document from the consulate which would
enable the holder to travel.
One should remember the exact name that has been mentioned in
the passport and the method of writing the name should not be changed.
In the countries where India does not have an embassy, one needs to
enquire about the embassy, through which the citizens of India are being
looked after. Normally, it is the British High Commission who takes care
of the Indians in absence of Indian Embassy, as India is a member of the
Commonwealth.

Documents Required while Applying for a Passport

Applicants can apply for a passport through online registration and get
printouts of the application form. Apart from this, they can submit the
form directly in the respective passport office/district passport centres/
speed post centres. A sample passport application form is enclosed in
Appendix 8.1.
Along with the application form, one needs to submit the following:
Photographs Three recent passportsize photographs in colour showing
frontal view of full face are required. Black and white photographs,
photographs with coloured or dark glasses or in uniform, polaroid prints,
or computer prints are not accepted.
Address proof Photocopies of the first and last page of the ration card,
election card, telephone bill, electricity bill, bank account statement,
certificate from employer of a reputed company on the official letter
head, gas connection bill, or water bill, that bear the applicant’s address
details.
Date of birth proof Photocopies of the birth certificate or school leaving
certificate.
Citizenship document This is required if the applicant is a citizen of
India by registration or naturalization.
 Travel Formalities and Regulations 201

Identity certificate Government, public sector, and employees of

statutory bodies should submit their identity certificate in original.
No objection certificate This should be submitted in original, if the
person applying is a government employee.
Affidavit/marriage certificate For change of name on passport after
marriage.
Letter of authority Required for travel agents.
Supporting documents These are needed as a proof for Emigration
Clearance Not Required (ECNR) status.
In case of minors, copies of the parents’ passports, and a consent letter
from both parents are required.

Various Services Offered by the Passport Office

The passport office offers the following services on payment of fixed fee.

1. New passport, thirty six pages (also for renewal after expiry of
ten years)
2. New passport jumbo, sixty pages (also for renewal after expiry of
ten years)
3. New passport for minor children (under 18 years of age), five
years’ validity
4. Additional booklet, thirty six pages
5. Additional booklet jumbo, sixty pages
6. Duplicate passport (in lieu of lost/damaged passport)
7. Change of name—maiden to married, or otherwise (issue of a
new passport booklet)
8. Extension of short validity passports (in lieu of lost/damaged
passport)
9. Emergency travel document
10. Renewal of emergency travel document
11. Identity certificate
12. Renewal of identity certificate
13. Endorsement on identity certificate
14. Issue of duplicate identity certificate
15. Tatkaal scheme (out of turn passport issue)
Relevant documents should be submitted for the above passport
services as per the guidelines available with the passport office.
202 Tourism Operations and Management

New passport or renewal after 10 years

Passports are valid for 10 years. The application for a new passport has
to be made when the applicant’s old passport has completed 10 years. It
can also be renewed one year before the expiry of the passport. This
service can be rendered on passports only up to a total of 10 years, which
is the prescribed life of an Indian passport booklet, after which the validity
cannot be extended on the same booklet, and therefore a new booklet
needs to be issued and applied for. Also, in case of possession of a duplicate
passport, 10 years have to be counted from the date of issue of the original
passport, in lieu of which the duplicate passport has been issued.
The application needs to be made on the application form for an
Indian passport. Other requirements are as follows:
1. Old passport (in original)
2. Passport size photographs showing frontal view of full face
3. Photocopy of the first four and last four pages of the old passport,
including ECR/ECNR page
4. Pages indicating visa

Duplicate passports (in lieu of lost/damaged passports)

The applications for duplicate passport are not accepted by post and
neither are the passports dispatched by post. The applicant has to go in
person for filing the application for a duplicate passport. Exceptions can
be made with prior approval of the passport officer or the consular officer
only under special circumstances.
The application form should be submitted along with the following
documents:
. Copy of police report or complaint number with date
. Photographs
. Copy of personal verification form in ‘prescribed proforma’
. Required fee
In case of a student, a letter from the school/ college is required
. Photocopy of the previous (lost) passport
. Photocopy of driving licence/a letter by the employer, if applicable
. Address proof
. An application on a plain paper giving reasons for the loss of
AA
WN
OOW
passport.

It is important to furnish full, accurate, and truthful information on

the form. Misrepresentation of facts may entail denial of passport facilities.
 Travel Formalities and Regulations 203

Applications which are received with incomplete details are not processed
by the passport office. A duplicate passport may not be issued for the
second loss/damage of passport. People who habitually lose their
passports are subjected to enquiry.
It normally takes three months in completing the process and duplicate
passports are issued only on receipt of clearance from the concerned
authorities. In case the passport is required urgently for personal or
business travel, a special request can be made to the passport officer or
the consular officer for a one year validity passport.

Change of name
The change of name service is restricted to change of name in the passport.
For change of name a new booklet is issued and the old booklet cancelled
and returned to the applicant. Application has to be made in the
application form for new passport. Photographs have to be submitted
and a fee as applicable is charged.
In case of change from maiden name to married name, substitution of
father’s name with the husband’s name, or in case of divorcees applying
for change of name or for substitution of husband’s name with father’s
name in existing passport, the following documents have to be submitted.
1. Original passport
2. Attested copy of the marriage certificate along with original or
copy of the divorce deed duly authenticated by court along with
the original as applicable
3. Husband’s passport
4. In case of remarried ladies (married ladies applying for change of
name/husband’s name in case of remarriage after divorce or death
of husband), divorce deed or death certificate as the case may be
in respect of her first husband
In all other cases, change of name is to be advertised in a daily
newspaper (circulation in the area of permanent and present residence);
submission of original newspaper clippings; and an affidavit on change
of name, duly notarized in the prescribed proforma has to be submitted
in addition to the above.

Tatkaal scheme (out of turn issuing of passport)

If an applicant desires to obtain his/her passport under the tatkaal scheme,
a verification certificate and standard affidavit should be submitted along
204 Tourism Operations and Management

with the tatkaal fee. No proof of urgency is required for out-of-turn issue
of passport. Post police verification is done for all passports issued under
this scheme.
A passport may also be obtained on submission of only three
documents provided. A photo identity document, at least one identity
proof such as ration card, pan card, etc. as well as a standard affidavit on
non-judicial stamp paper duly attested by a notary are required.
The charges for a fresh passport are as follows:
| Days Tatkaal charges (Rs) Passport fee (Rs)

1-7 1500.00 1000.00

8-14 1000.00 1000.00

VISA
Visa (visitors intended stay abroad) is a permit which allows a citizen of
one country to enter into another country for a designated period and
for a specific purpose. The visa is issued in the form of an endorsement
or rubber stamp on a passport. Therefore, it is necessary to submit the
passport at the time when the visa is applied for. Some countries do not
stamp visas into the passport, but issue them in loose form. In this case,
no record appears in the passport.
A visa is normally obtained from the embassies and consulates of the
country to where travel is intended. If there is no representative in the
country to issue a visa, it may be essential to send the passport abroad in
order to obtain it. In this case, the applicant should have legal status in
the country from which he/she applies. If the person who requires the
visa is not a resident or citizen of the country, then it may be necessary
for that person to obtain the visa on arrival.
For some countries it is essential that the citizens of other designated
countries obtain a visa prior to arrival in their country. In some countries,
such as Hong Kong, Malaysia, and Mauritius, the visa can be obtained
on arrival in the country.
The travel agents should check the citizenship of their clients and the
visa requirements for the countries they intend to travel.

Definition
‘A visa is an entry made by a consular official of a government in a
passport or other travel document, which indicates that the bearer has
 Travel Formalities and Regulations 205

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Fig 8.2 Visa stamped before departure for Singapore

been granted permission to enter or re-enter the country concerned. It

generally mentions the authorized length of stay, the period of validity
and the number of times a person is allowed entry (single or multiple
entry), during that period.’
Visas are issued for single entry or multiple entries. A single entry
visa will not be valid if it has been used once, even when the validity
date has not expired. In the case of multiple entry visas, its validity expires
on the date of its expiry. The date of the entry stamp is imprinted on the
passport when a person arrives in the country concerned (see Fig. 8.2).
This stamp can be placed on the page bearing the visa or on another
page. It shows that the visa has been used.
Entry is normally granted to a foreigner after the visa has been issued.
However, the final decision regarding entry into any country rests with
the immigration officials at the entry point. They may deny entry to any
visitor (see Example 8.2).
206 Tourism Operations and Management

Example 8.2

A fellow passenger on-board was quite excited as he was flying for the first
time. He was going from Mumbai to Singapore. On arrival at Singapore, when
the immigration official asked him the purpose of his visit, he confessed that
he had come to see the city for two/three days and would buy a dozen cell
phones, a few cameras to cover his expenses and go back. He was refused entry
on the spot, his visa was cancelled and he was sent back on the first available
flight.

The visa system is important as it helps the immigration officials in

keeping a tab on the number of visitors that are likely to travel to and
from a country. The visa regulations are usually the bilateral agreement
between two countries.
Visas are also required for children. If a child travels on an adult
passport, the visa in that passport must mention that it is valid for both
the child as well as the adult concerned.

Travel Information Manual

The travel agents should keep themselves updated and give accurate
information to their clients. This information is available in the Travel
Information Manual (TIM). The main purpose of TIM is to provide
airlines, their agents, and other businesses in the travel industry with up
to date, official information on government travel regulations. It is
published in English by the IATA Netherlands Data Publications in a
book form, every month and can also be accessed via the computer
reservation system (CRS). TIM is updated each month and provides a
valuable source of information regarding government requirements for
international air travel to more than 200 countries worldwide. It contains
detailed information related to passports, visas, health, airport tax,
customs, and currency.
Information regarding checking of documents at the time of departure,
while in transit and on arrival at the destination is given in TIM for each
country, as rules differ from one country to another for all essential
documents and procedures.
An agent should never assume that a traveller, regardless of how well
travelled he/she may be, knows all the regulations. Example 8.3 and
Example 8.4 give some important information to a traveller.
 Travel Formalities and Regulations 207

Example 8.3
This may sound weird, but it is true. An Air India flight from Kuwait which was
going to Mumbai was re-routed via Chennai. About six passengers requested
that as they planned to go to Chennai by train after reaching Mumbai, they
should be allowed to deplane at Chennai. They also did not have any check-in
baggage.
So what was the hurdle? Well, the fare between Kuwait to Chennai was
Rs 4500 more than the Kuwait-Mumbai fare and they would be required to pay
the difference if they wanted to get off at Chennai.
Fares depend on point to point destination and convenience.

Example 8.4
If you are planning a flight from Mumbai to Singapore and have an onward
connection to Australia, book your ticket as Mumbai-—Australia.
In case your initial flight from BOM-SIN (Mumbai-Singapore) is delayed,
then getting you a timely connection, food, and hotel accommodation becomes
the airline’s responsibility.

Most of the travel agencies offer a visa service, and charge a fee for
this. The agent must first find out the nationality of the client by checking
the passport on which he/she intends to travel. Once the nationality has
been identified, the agent must then look at the visa regulations which
can be checked from TIM. TIM relates to air travel and if a client is
travelling by land, different regulations may apply. The agent should
check the complete passport and see what other visas are contained in it.
Many countries have strict rules regarding some of the ‘controversial
areas’ because of racial or political unrest. The travel agent should concern
himself/herself with visas for business or tourist purpose. Clients who
want to travel abroad with the aim of settling there or immigrating should
be referred to the country concerned which will have the necessary related
rules and regulations. A tourist’s visa is stamped in the passport on arrival
at a country (see Fig. 8.3).
When the agent has obtained a visa on behalf of a client, it is the
responsibility of the travel agent to check that the visa has been issued
correctly along with its validity and as per the client’s requirements. The
visas will indicate the number of entries permitted, the validity period
and the maximum period that a client can stay in the country. If the visa
208 Tourism Operations and Management
=

| ie << “ce : ~
: eee en oe "
en ‘ - atta t oo a 27 J
i> be? for fouriean days from date ¢
| Ro at Bases entry as shown below
|
if
i 3 ; 7
om :
A A caaes cee hes

Fig 8.3. Visa stamped on arrival in Hong Kong

Exhibit 8.1

Some important facts regarding visas

Visa and immigration laws vary from one country to another.
¢ One must check the validity and correctness of the visa stamp before
embarking on the journey.
e Having a visa does not guarantee an entry to the host country. The border-
crossing authorities take the final decision to allow entry and may even cancel
a visa if they are not satisfied with the visa status.
e Entering a country without a valid visa or visa exemption may result in
detention and deportation.
e After entering the country, the validity period of a visa can often be extended
for a fee at the discretion of the immigration authorities.
¢ The validity of a visa is not the same as the authorized period of stay in the
issuing country. For example, if a visa has been issued on 1 January 2008 and
expires on 30 March 2008 (authorized period of stay 90 days), then the 90 day
authorized stay starts from the date of arrival which has to be between
1 January and 30 March 2008. If the person reaches on 1 March, he/she could
stay in the issuing country until 30 May 2008.
e Asingle entry visa gets cancelled as soon as the holder enters the issuing
country. For example, a single entry visa may be granted for six months, but if

is in a foreign language or is not clear, then the agent should check with
the authorities concerned, if the client has any queries. Exhibit 8.1 shows
some important facts regarding visas.
 Travel Formalities and Regulations 209

Types of Visas
Visas are also referred to as permits by some countries. There are many
types of visas and different countries may call these by different names.
Table 8.1 briefly describes the different types of visas, some of which
are discussed further in detail.

Table 8.1 Types of visas

Type of Visa Description

Transit visa Usually valid for three days or less, for passing through the country to a third
destination.
Tourist visa For a limited period for leisure travel, no business activities allowed. Some countries
do not issue tourist visas. Saudi Arabia introduced tourist visas only in 2004 but
issues pilgrimage visas for Hajj pilgrims.
Business visa For engaging in commerce in the country. A work visa is required for permanent
employment.
Temporary worker For approved employment in the host country. Generally more difficult to obtain
visa but valid for a longer period of time than a business visa. Examples of such visas are
H-1B and L-1 visas in the USA.
On-arrival visa Granted immediately on entering a country at the airport or border control post. This
is different from not requiring a visa at all. Visa is in the form of an entrance fee and
is required before they can pass immigration.
Spousal visa Granted to the spouse of a resident or citizen of a given country, to enable the couple
to settle in that country. Examples include the EEA family permit of the UK.
Student visa Allows its holder to study at an institution of higher learning in the country of issue.
However, some countries such as Algeria, issue tourist visas to students.
Working holiday For individuals travelling between nations offering a working holiday programme,
visa allowing young people to undertake temporary work while travelling.
Diplomatic visa Sometimes called an official visa, it is available exclusively to diplomatic passport
holders. It confers the diplomatic status on its holder.
Courtesy visa Issued to representatives of foreign governments or international organizations who
do not qualify for diplomatic status but do merit expedited, courteous treatment.
A courtesy visa does not normally confer privileges or immunities.
Journalist visa Some countries, such as Cuba, Iran, North Korea, Saudi Arabia, Zimbabwe, and the
USA, insist that journalists when travelling for their respective news organizations
have a valid visa.
Fiancee visa Granted for a limited period prior to marriage based on a proven relationship with a
citizen of the destination country. For example, an Indian woman who wishes to
marry an American man would obtain a fiancee visa (K-1 visa) to allow her to enter
the USA.
Immigrant visa Granted to those intending to migrate to the issuing country. They are usually issued
for a single journey as the holder may be issued a permanent resident identification
card permitting him unlimited entry in the issuing country.
210 Tourism Operations and Management

Entry/visitor visa
business
This is also referred to as entry visa, entry permit, tourist visa,
visa, travel pass, etc. This visa allows a foreign national the right to enter
the country for a short stay.
the
The conditions regarding the entry visa normally require that
traveller should possess sufficient funds for the duration of stay and proof
of prepaid onward travel. It is the agent’s duty to check and advise the
traveller accordingly.
The validity of an entry visa 1s for six months to five years stay with
multiple entries. The USA issues a visa for up to 10 years.

Transit visa

It authorizes the holder the right to temporarily enter into another country
for the purpose of making travel connections, onward to a third country.
This is normally required for people travelling through a country to
another, in some cases even when continuing their journey on the same
flight. The regulations vary from country to country and these should be
checked in TIM. For example, some countries may demand that
passengers, who transit within eight hours, do not need a visa, whereas
some countries may require a passenger to obtain a transit visa even if
they arrive and leave, all within a four-hour period.
If the time permitted is hardly sufficient to allow flights to connect,
then it is probably wise to obtain an alternative visa that would allow for
unforeseen circumstances such as flight delay or cancellation, especially
as this can sometimes require an overnight stay.
Without a proper visa, a client can be put under supervision by the
immigration authorities if the transit visa expires, and the majority of
passengers find this uncomfortable. The best thing is to explain the
situation to a client and allow him/her the choice of a transit visa or
some other type of visa which allows a stay if necessary. As the cost will
probably be more to obtain a visitor’s visa, some passengers may prefer
to take the risk. The validity is usually for 15 days only.

Transit without visa

A transit visa is not normally required for a passenger (except as specified)

who has to spend a few hours in the transit zone of the airport to change
flights. This exemption will come under the heading transit without visa
(TWOV). Many countries have certain agreements which will allow the
citizens of other countries to transit their country without tne need to
obtain a visa.
 Travel Formalities and Regulations 211

The period of validity of a TWOV will vary from one country to

another.
In certain cases, transit passengers are permitted to leave the airport
for a short period, for example, 24, 48, or 72 hours, provided they hold
tickets with confirmation and other reservations for onward or return
travel. For example, at the Changi Airport, Singapore, short city tours
are arranged by shuttle bus for transit passengers to see Singapore instead
of waiting in the transit lounge. Similar facilities are also available at
other airports, for example, at the Schiphol Airport, Amsterdam.

Re-entry permits
Where necessary, these permits allow travellers to return to their country
of domicile.

Exit visa

Exit visa gives the right to a traveller to leave a country. These permits or
visas may be necessary for citizens to leave their own country of domicile.
Exit visa may be required by foreign nationals to leave a country through
which they had been travelling, or by expatriates.

Schengen visa
The Schengen states comprise Austria, Belgium, Denmark, Finland,
France, Germany, Greece, Iceland, Italy, Luxembourg, Netherlands,
Norway, Portugal, Spain, and Sweden. The Schengen is an agreement
between these member states of the European Union (EU), to remove
immigration controls for travel within and between these countries. This
borderless region is known as Schengen Area. The Schengen Agreement
was created on 26 March 1995. There are four types of Schengen visas:
Type A: Airport transit visa This is required for those nationals who
cannot use the TWOV facility at all, as they are in direct transit in a
Schengen country when arriving and are departing from/to non-Schengen
countries. The passengers in general, cannot leave the airport.
Type B: Transit visa This is required for passengers who are making a
transit in the Schengen territory, exceeding the allowed transit time, and
for passengers who are transiting in more than one Schengen country.
Type C: Short period visa (Maximum three months) This is the common
Schengen visa, issued by any one of the fifteen states and is valid for all
others.
212 Tourism Operations and Management

Type D: Long period national visa This visa is issued in case of a longer
period or for other special cases which is issued by an individual Schengen
state on a national basis. This particular visa is valid for the country of
issue only.
When applying for either a Type B or Type C visa for visiting/transiting
for only one Schengen state, then an application should be made at the
consulate or the embassy of that country. When the passenger has to
apply for several Schengen states, the application should be made at the
consulate or the embassy of the country which is the main destination of
visit. In case of application of several Schengen states and not having a
main destination, the application has to be made at the consulate or
embassy of the country which is the first point of entry into the Schengen
states. If the above regulations while applying are not complied with,
then there is a possibility of refusal of entry and also investigation by the
immigration officers.

Requirements for Visas

Many travel agents offer visa services to their customers. A fee is normally
charged for this service. The procedure for applying for a visa is usually
same when the travel agent applies on his client’s behalf and also when
the client applies directly. Visa forwarding services (VFS) is an organi-
zation available in major cities in India for the convenience of travellers.
VFS provides its services with the official approval of the government of
the country for which a visa is required. VFS fee has government approval.
The VFS is a completely different organization operating under Indian
law and is not an agent of the government. It is not mandatory to go
through VFS and the visas may be obtained directly by applying for the
same through the embassy, high commission, or the consulate; or through
a travel agent.
Given below are the general requirements of documents, applicable
for obtaining a visa.
1. Original passport valid for minimum six months from the expiry
of the visa
2. Latest passport size photographs (as per the requirement of the
country of travel)
3. Visa form duly filled and signed as per the signature in the passport
by the applicant
4. Overseas mediclaim policy valid for the total period of travel
 Travel Formalities and Regulations 213

5. Foreign exchange, to be endorsed in the passport, or a copy of an

international credit card
6. Covering letter on company letterhead mentioning the applicant’s
name, designation, purpose, and duration of visit (for business
purpose)
7. Covering letter from the applicant stating purpose and duration
of visit (for tourism purpose)
8. For partnership companies, partnership deed to be enclosed
9. For Pvt Ltd Co, the memorandum and articles of association
10. Original income tax papers for last three years
11. Original bank passbook/bank account statement for minimum
three months
12. Property papers
13. Fixed deposit certificates
14. No objection certificate if working in a government organization
15. Form 16A, salary slip, or TDS for salaried persons
16. If retired then retirement letter and/or pension proof
17. Marriage certificate, wedding card, or photograph of marriage
for newly wedded couples
18. No objection certificate from parents if a minor accompanying
other than parents
19. Bona fide certificate/identity card from the school if students
20. ECNR status
21. No objection certificate letter from husband/father for ladies
travelling alone
Fee as applicable needs to be paid. If a person is travelling for the first
time, consulate may insist for personal interview. The visa regulations
differ from country to country. These should be checked by the travel
agent from the embassy/consulate.

Visa Refusal
An applicant may be denied a visa if he/she

e has committed fraud or misrepresentation in the application,

e does not have a legitimate reason for the journey;
e does not have lodging in the destination country,
e has no visible means of sustenance;
e has not arranged his/her transportation;
e does not have a valid health/travel insurance for the destination and
the duration of stay;
214 Tourism Operations and Management

¢ has a criminal record or has criminal charges pending;

¢ is considered to be a security risk,
e has had his/her prior visa applications rejected;
¢ isacitizen of a country with whom the host country does not have an
amicable relation;
¢ has previous immigration violations;
e has a communicable disease such as tuberculosis; and
¢ is in an advanced stage of pregnancy (see Example 8.5).

Example 8.5
A family of three was denied entry to the USA at Chicago airport, as the lady
was seven months pregnant and the immigration officer suspected that she had
come to the USA to her sister-in-law’s place to deliver her baby and get American
citizenship for the child. She had not declared that she was pregnant when she
had applied for a visa a month ago in India.

The visa requirements for some major countries are given in Appendix
Sra.

HEALTH REGULATIONS FOR INTERNATIONAL TRAVEL

The World Health Organization (WHO) prepares and reviews the
international sanitary regulations and proposes measures to prevent the
spread of epidemic throughout the world. As per the WHO norms,
vaccination of persons who arrive from infected areas, against certain
diseases such as plague, cholera, yellow fever, hepatitis etc. is compulsory.
A valid immunization certificate as approved by WHO should be
completed and signed by a competent authority.
Travellers should acquaint themselves with the health regulations in
force for the country of origin, country of transit, and the destinations
they propose to visit, to avoid inconvenience. The travel agents should
advise the travellers on the vaccinations and preventive health precautions
to be undertaken while travelling. A sample health questionnaire format
is enclosed as Appendix 8.3.
The WHO collects and publishes the health requirements of individual
countries in the form of a booklet called ‘International Travel and Health’.
TIM can also be used as a source of reference on health as it describes
exactly what is required at the airports. The Official Airline Guide (OAG)
 Travel Formalities and Regulations 215

Health Supplement Guide, which is published quarterly by OAG

worldwide, also gives information on passports, visas, and vaccinations
that are necessary or recommended.
The required vaccinations can be given by a family doctor or an official
health authority as per the regulations, which are in force in the country
of departure, and the destination country. A health certificate is given by
the doctor to the travellers when they receive the compulsory
vaccinations. Other vaccinations, which are not compulsory, do not need
a health certificate. But these may be recommended for travel to certain
countries, such as the tropical regions of Africa and South America.

Compulsory Vaccinations
There are two types of immunizations, which are compulsory and
recommended. The compulsory vaccinations are required only by certain
countries. Some countries may recommend certain immunizations,
especially when the travellers normally travel outside the urban areas.
The travellers should therefore be advised to obtain a health certificate,
proving that they have been vaccinated for a specified infectious disease
(either yellow fever or cholera). If they are not able to produce the same,
they could be deported back out of the country or they could be detained
and kept in quarantine.
An internationally recognized certificate is generally required by
travellers if they have to be vaccinated against certain diseases. The
certificate has to be produced by the traveller at the point of entry into
the country.
The WHO international certificate of vaccination can usually be
obtained from health clinics, doctors, and health authorities. In order for
the certificate of vaccination to be valid, it must bear the name of
vaccination, the date, and should be signed by the concerned authorities
in the country of issue. Cholera and yellow fever are the only vaccinations
which are normally required for travelling to certain countries.
When yellow fever and cholera vaccinations are taken together they
require up to twenty days to become effective. Yellow fever vaccinations
are valid for ten years, beginning ten days after the vaccination, whereas
cholera vaccinations are valid for six months, beginning six days after
the first injection. Travellers should therefore plan their vaccinations
accordingly. Some vaccinations can be obtained up to a month before
departing on a trip abroad. Travellers should thus keep a record of their
216 Tourism Operations and Management

vaccinations along with the date as the period of protection offered by

vaccinations differs widely.
Travellers should also be advised to take out travel insurance before
they embark. Medical insurance companies provide coverage for certain
expenditure incurred on accidents, medical treatment, etc. In certain
countries medical insurance is compulsory.

SPECIAL PERMITS FOR RESTRICTED AREAS

Domestic and foreign tourists normally do not have restrictions for
movement within India. But a special entry permit is required for tourists
for the border states and the islands of Andaman, Nicobar and
Lakshadweep. In some areas, only foreigners are required to obtain a
permit. This permit is valid for fifteen days only and should be applied
for at least two weeks in advance. This permit can be issued by either the
Ministry of Home Affairs or the Foreigners Regional Registration Offices
(FRRO), located in New Delhi, Mumbai, Chennai, and Kolkata, or the
Indian Diplomatic Missions abroad.
The tourist groups should consist of four to 20 people. Special permits
are required for the following areas:

Assam

Kaziranga National Park, Manas National Park, Guwahati, and Kamakhya

temple. Permits are issued for a stay of 10 days to those travelling in
groups.

Meghalaya
Shillong. Permits are issued for a stay of seven days to those travelling in
groups.

West Bengal
1. Darjeeling and adjoining areas (Tiger Hill, Lebong Race Course,
Jorabunglow, Ghoom, and Kurseong). Permits are issued (also
by Home Department of West Bengal) for a stay of 15 days to
those travelling individually or in groups.
2. Sandakphu and Phalut areas in Darjeeling and wildlife sanctuaries
at Mahananda and Simchal, and Jaldapara, Chapramari and
Goruari in Jalpaiguri district. Permits are issued for a stay of seven
days only to those travelling in groups (protected area).
 Travel Formalities and Regulations 217

Sikkim (protected area)

1. Gangtok, Rumtek, and Phodang. Permits for seven days are issued
to those travelling individually or in groups.
2. Zongry and West Sikkim. A 15-day permit is issued to groups
coming for trekking.
3. Pomayangtse. A two-day permit is issued to groups coming for
trekking. Permits are issued only by the Ministry of Home Affairs.

Manipur (protected area)

Imphal, Loktak Lake, Moirang, INA Memorial, Kaibil Deer Sanctuary,
Waillye Lake, and Konyom War Memorial. Permits for three days are
issued to groups only and exclusively by the Ministry of Home Affairs.

Andaman and Nicobar Islands

1. Municipal area of Port Blair and Havelock Island. Permits for 15
days and night visits are issued to those travelling individually or
in groups.
2. Jolly Buoy, South and North Cinque, Red Skin, and Neil. Permits
for day visits only are issued to those travelling in groups. Permits
are also issued by the immigration officer at Port Blair.

Lakshadweep
Bangaram, Suheli, and Tilkam Islands. Permits for a stay of seven days
are issued to those travelling in groups only, by the Ministry of Home
Affairs and the administrator of Lakshadweep.

CUSTOMS REGULATIONS
In the olden days, a trader was free to bring in goods and exchange them
for local products which he could take back to his country. In the medieval
and later ages, however, the traveller had to undergo a customs check
and a duty was imposed which differed from country to country. In the
nineteenth century, many countries formulated their frontier regulations
due to the increasing number of travellers.
World Wars I and II witnessed an even larger number of people
crossing their national borders. The customs checks became stricter and
the collection of duty helped the countries to earn revenue. The tourist
was treated like any other visitor by the customs authorities even when
his motive was not for trade, employment, or permanent stay. The
218 Tourism Operations and Management

situation improved a little in the post-war period, but the tourist still had
to undergo the customs checks and duties. In 1949, a multilateral
convention was signed by nine European nations to grant special facilities
to tourists from their countries under the UN Economic Commission for
Europe, one of the ECOSOC subordinate commissions. Due to the
success of this convention, ECOSOC convened in 1954, the General
Customs Conference in New York. Two conventions were adopted as a
result of this conference which were the ‘1954 Convention Concerning
Customs Facilities for Touring’ and the ‘Customs Convention of the
Temporary Importation of Private Road Vehicles (1954)’.
The conventions agreed that a tourist was entitled to bring in his
‘personal effects’ which should be allowed free and treated as a duty-free
allowance, provided, none of the items listed in personal effects was
supposed to be used for commercial purposes. The personal effects were
listed and included one still camera, a movie camera, one portable
gramophone, one sound recorder, one radio set, a portable typewriter,
sports equipment, fixed quantities of cigarettes, cigars, or tobacco, a bottle
of wine, and a quarter litre of spirits and perfume. The 1963 International
Tourism and Travel Conference, however, recommended mote liberalization
of the above allowance.
Many countries have now established their own individual frontier
regulations. The regulations of each country can be obtained from the
travel agents, information offices of governments, public carriers, TIM,
etc.
Customs regulations relate to the rules and regulations of the transport
of articles and species from one country to another. The import and
export of certain articles are prohibited and the rules differ in each country.
A duty has to be paid if the traveller exceeds the limit for permitted
items. This duty collected by the customs officials is a source of revenue
for the country. Most countries allow concessions on certain items.

Clearance of Incoming Passengers

For the purpose of customs clearance of incoming passengers, a two
channel system is adopted by the customs officials. They are
1. Green channel for passengers not having any dutiable goods
2. Red channel for passengers having dutiable goods
However, all the passengers have to file correct declaration of their
baggage. The passengers at the green channel have to deposit the customs
 Travel Formalities and Regulations 219

portion of the disembarkation card with the customs official at the gate
before leaving the terminal. Foreign exchange/currency also has to be
declared before the customs officers in the following two cases:
1. Where the value of foreign currency notes exceed USD 5000 or
equivalent
2. Where the aggregate value of foreign exchange including currency
exceeds USD 10,000 or equivalent

If passengers walk through the green channel with dutiable/prohibited

goods they are liable to prosecution/penalty, and confiscation of goods.
Trafficking of narcotics and psychotropic substances is a serious offence
and is punishable with imprisonment.
Table 8.2 shows articles which are allowed duty free. A tourist arriving
in India shall be allowed clearance of duty-free articles in his/her bona
fide baggage to the extent as mentioned below.

Table 8.2 Articles allowed free of duty for tourists

Type of tourist Articles allowed free of duay

1. Tourists of Indian (i) Used personal effects and travel souvenirs, if:
origin other than (a) These goods are for personal use of the tourist.
those coming from (b) These goods, other than those consumed
Pakistan by land during the stay in India, are re-exported when
route the tourist leaves India for a foreign
destination.
(ii) Up to Rs 25,000 worth of goods is duty-free
allowances applicable to Indian residents.
2. Tourists of foreign (i) Used personal effects and travel souvenirs, if:
origin other than (a) These goods are for personal use of the tourist.
those of Nepalese (b) These goods, other than those consumed
origin coming from during the stay in India, are re-exported when
Nepal or of Bhutanese the tourist leaves India for a foreign
origin coming from destination.
Bhutan or of Pakistani (ii) Articles up to a value of Rs 8000 (Rs 2500 for
origin coming from tourists of Indian origin) for making gifs.
Pakistan.
3. Tourists of Nepalese No free allowance.
origin coming from
Nepal or of Bhutanese
origin coming from
Bhutan.
Contd
220 Tourism Operations and Management

Table 8.2 Contd

Type of tourist Articles allowed free of duty

4. Tourists of Pakistani (i) Used personal effects and travel souvenirs, if:
origin or foreign (a) These goods are for personal use of the tourist.
tourists coming from (b) These goods, other than those consumed
Pakistan or tourists of during the stay in India, are re-exported when
Indian origin coming the tourist leaves India for a foreign
from Pakistan by land destination.
route (ii) Articles up to a value of Rs 6000 for making gifts.

In the context of baggage rules for tourists, personal effects would

include the following:
iV, Personal jewellery
Hy One camera, with film rolls not exceeding 20
3. One video camera/camcorder with accessories and with video
cassettes not exceeding 12
One pair of binoculars
One portable colour television (not exceeding fifteen centimetres
in size)
One music system including compact disc player
One portable typewriter
One perambulator
One tent and other camping equipment
One computer (laptop/notebook)
. One electronic diary
. One portable wireless receiving set (transistor radio)
. Professional equipment, instruments and apparatus or appliances
including professional audio/video equipments
. Sports equipments such as one fishing outfit, one sporting fire
arm with fifty cartridges, one non-powered bicycle, one canoe or
ranges less than 51 metres long, one pair of skids, two tennis
rackets, one golf set (14 pieces, with a dozen golf balls).
1D: One cell phone
Tourists, whether of foreign or Indian origin, are allowed the following
items duty free but within their free allowance
Alcoholic drinks/cigarettes (as baggage)
(a) Fifty cigars, 200 cigarettes, or 250 grams of tobacco.
(b) Alcoholic liquor or wine up to two litres each.
 Travel Formalities and Regulations 221

Gold Any passenger of Indian origin or a passenger holding a valid

passport, issued under the Passport Act 1967 (who is coming to India
after a period of not less than six months’ stay abroad), can import gold,
to be carried as baggage. The duty has to be paid in convertible foreign
currency. The weight of gold (including ornaments) should not exceed
10 kilograms per passenger. Ornaments studded with stones and pearls
are not allowed to be imported.
Silver Any passenger of Indian origin (even if a foreign national) holding
a valid passport issued under the Passport Act 1967 can import silver.
The weight of silver (including ornaments) should not exceed the quantity
of 100 kilograms per passenger.
The passenger has to obtain the permitted quantity of silver and gold
from customs bonded warehouse of the State Bank of India and the
Mineral and Metals Trading Corporation. A declaration has to be filed
in the prescribed form before the customs officer at the time of arrival in
India stating the passenger’s intention to obtain the silver from the customs
bonded warehouse and pay the duty before clearance.
One laptop computer (notebook computer) over and above the free
passenger allowances is also allowed duty free if imported by any
passenger of the age of 18 years and above. The free allowance cannot
be pooled with the free allowance of any other passenger.

Foreign exchange/currency
Any person can bring into India, from a place outside India, foreign
exchange, without any limit. However, declaration of foreign exchange/
currency is required to be made in the prescribed currency declaration
form in the following cases:
1. Where the value of foreign currency notes exceeds USD 5000 or
equivalent
2. Where the aggregate value of foreign exchange, in the form of
currency notes, bank notes, travellers’ cheques, etc. exceeds USD
10,000, or equivalent

Indian currency
Import of Indian currency is prohibited. However, in the case of
passengers normally resident of India who are returning from a visit
abroad, import of Indian currency up to Rs 5000 is allowed.
222 Tourism Operations and Management

Firearms

Import of firearms is strictly prohibited. Import of cartridges in excess of

fifty, is also prohibited.

Import of pet animals

Domestic pets such as dogs, cats, birds, etc. are permitted to be imported.
Import of pets, dogs and cats, is allowed only up to two numbers per
passenger, at one time, subject to production of required health certificate
from country of origin and an examination of the said pets by the
concerned quarantine officer.

Outgoing Passengers
All the passengers leaving India by air are subject to clearance by customs
authorities. Only bona fide baggage is allowed to be cleared by passengers.
There is a procedure prescribed whereby the passengers leaving India
can take the export certificate for the various high value items as well as
jewellery from the customs authorities. They are required to enter the
costly items on a tourist baggage re-export (TBRE) form. Such an export
certificate comes handy while bringing back the things to India so that
no duty is charged on such goods exported by the passenger. This form
is filled by incoming tourists as well, which ensures that the costly articles
are taken back on departure. Sample customs declaration form is enclosed
as Appendix 8.4.
Tourists should also note the following rules while travelling.
e Export of most species of wild animals and articles made from wild
flora and fauna such as ivory, musk, corals, reptile skins, furs, shahtoos,
etc. is prohibited.
* Trafficking of narcotic drugs and psychotropic substances is
prohibited.
¢ Export of Indian currency is strictly prohibited. However, Indian
residents when they go abroad are allowed to take with them Indian
currency not exceeding Rs 5000. Carrying Indian currency notes in
the denominations of Rs 500 and Rs 1000 to Nepal is prohibited.
* Tourists while leaving India are allowed to take with them foreign
currency not exceeding an amount brought in by them at the time of
their arrival in India. As no declaration is required to be made for
bringing in foreign exchange/currency, which does not exceed USD
10,000, or its equivalent, tourists can take, foreign exchange/ currency
 Travel Formalities and Regulations 223

not exceeding the above amount, out of India with them at the time
of their departure. The export of foreign currency is otherwise
prohibited.

Basic Travel Quota

Under the basic travel quota (BTQ) scheme, resident Indian citizens are
permitted to purchase foreign exchange up to USD 5000, or its equivalent,
for undertaking in a calendar year, one or more private visits to any
country abroad (except Nepal and Bhutan). The foreign exchange can
be purchased directly from any branch of an authorized dealer or from a
full-fledged money-changer (FFMC).
Travel under BTQ can be combined with visits for business,
conference, seminar, training, study tour, Hajj pilgrimage, and
employment. Persons emigrating from India and drawing foreign
exchange for that purpose cannot, however, draw additional exchange
under BTQ.

EMIGRATION AND IMMIGRATION

The procedure for going out of the country is called emigration. The
procedure followed while entering a particular country is called
immigration. The prime duty of the immigration department is to check
whether the person is holding the correct documents such as passport,
health documents, visas, etc. Police personnel do the immigration check.
Except for Pakistan and Bangladesh, one must have immigration clearance.
Sample departure and arrival forms which tourists have to fill before going
out of the country (departure) or while entering a country (arrival) are
enclosed as Appendix 8.5.
Emigration check is carried out at the office of protectorate of emigrants
(POE) in India. Hence before one leaves the country it is necessary to
have the emigration check suspended. If not, one will not be allowed to
leave the country. Emigration check is not required for graduates, minors,
income tax payers, doctors, or for females whose husbands are employed
on ships, etc. ECNR is stamped on their passport.
Often people go out of the country and have no means of livelihood
and are cheated abroad. The office of the POE is established so that
these people are protected and do not fall prey to cheating. Therefore, a
return ticket is required to suspend emigration check.
224 Tourism Operations and Management

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The duty performed by the airport emigration is different from that of

the emigration protectorate. The personnel at airport authority, who do
the emigration check, are the police officials. They check for convicts,
fraud cases, etc. The procedure is the same all over the world.
But if one has an airport emigration check but no POE office
emigration check suspended, one will not be able to travel.
In the case of an emergency, where the office is closed and one needs
to travel immediately, for example, in case of serious illness, then one
can approach the assistant commissioner emigration or DCP emigration
and convince them of the emergency. If the authority is convinced of the
case being genuine, onewill be allowed to travel. The airlines staff does
not require emigration check. Figure 8.4 shows emigration check required
(ECR) stamped on a passport.

TAXES PAID BY TRAVELLERS

Travellers have to pay several taxes which are discussed
as follows:
 Travel Formalities and Regulations 225

Airport Taxes
All airport taxes are generally included in the cost of the ticket and are
not to be paid separately. Example 8.6 shows the total fare of a passenger
flying from Mumbai to New York and back to Mumbai, via London.

Example 8.6

| Break up of cost of ticket INR

The basic fare from Mumbai to New York via London 31,390
Mumbai airport departure tax 225
London airport tax 3,198
(This is charged as the passenger is transiting through London and
using the airport facility)
US tax immigration 1,300
YC tax (customs) 233
XY tax (federal inspection fee) 296
XA tax (animal and plant health inspection services (APHIS user fee) 7a
AY tax 106
YQ tax (fuel surcharge) 18,906
XF tax (US tax for pollution and congestion) 190
Total cost of ticket Rs. 56,055

Discounts, if any, by the travel agent can only be given on the basic
fare. All taxes have to be paid in full. If there is a hike in the fare for any
reason such as hike in fuel prices, this fare hike is applicable only for
blocked tickets and not for tickets which are already issued.

Taxes charged by the Indian Government

Travel taxes charged by the Indian Government are given below.
1. Inland Air Travel tax (IN) in India is 15 percent of basic fare
amount and is applicable for all cases of purely domestic tickets
when payment is made in INR.
2. Foreign travel tax (FT) for passengers departing on international
flights of INR 500.
3. Passenger service fee (WO) of INR 200. For tickets issued outside
India passenger service fee of USD 5 will be collected per
departure.
226 Tourism Operations and Management

Port Taxes
Port charges are the taxes charged to the cruise liners using the port to be
docked, to avoid congestion. The amount charged depends for how long
the ship will be docked. These charges are collected by the travel agent
when the traveller pays for the cruise in full.
Example 8.7 shows port charges in the USA.

Example 8.7

Taxes for a cruise from Los Angeles to Cabo San Lucas to Mazatlan to Puerto
Vallartra and back to Los Angeles.
Port taxes : USD 160
Gratuity : USD 75
Fuel Surcharge ; USD 49
USD 282
Charges are USD 350 for up to 4 days + USD 6 per night per electrical outlet.

Some of the other taxes levied are: luxury tax on room tariffs—up to 10
per cent on Rs 1200 and above, and four per cent on Rs 200-Rs 1199,
service tax, excise, customs, local levies, etc. Chapter 14 provides additional
information on different types of taxes.
Tax structure differs widely from one country to another. For example,
in Hong Kong, fine dining restaurants add seven per cent as gratuity to
the restaurant bill if there are more than six people at a table.

TRAVEL INSURANCE
Tourists going abroad need to insure themselves against any sudden and
unexpected mishap, such as sickness, accident, or death, which may arise
when the insured person is outside his country of origin. This is especially
true for tourists visiting countries such as the USA, Europe, and Australia,
where medical expenses are so steep that they can lead one to bankruptcy.
Travel insurance is needed even if one already has life insurance
policies. Travel insurance or overseas mediclaim insurance policy is not
a general health insurance policy, but is an insurance against any untoward
incident pertaining to the health and well-being of a person which requires
prompt medical attention. Apart from impairment of health it may also
cover any one or all of the following clauses depending on the insurance
company and the insurance plan selected.
 Travel Formalities and Regulations 227

¢ medical expenses cover ¢ dental treatment

¢ total loss of checked in baggage ¢ delay of checked in baggage
¢ loss of passport ¢ personal liability
* personal accident ¢ hijack distress allowance
¢ financial emergency assistance ¢ fire and allied perils (home
¢ burglary (home contents) building and contents)
¢ missed connections e — trip cancellation and interruption
¢ bounced bookings of hotels travel delay
and airlines
Insurance companies offer various plans for travel to different destina-
tions. Most insurance companies offer a comprehensive travel insurance
specially designed for travellers, which covers the most likely contin-
gencies that may occur. The insurance premium which needs to be paid
by the traveller depends on the following criteria:
e destination e duration of journey
¢ purpose of visit ¢ age of the traveller
(business/holiday) ¢ number of clauses/benefits
* present state of health opted for
The average traveller is unaware of the costs which could be incurred
or the discomfort that would be caused if one does not have a
comprehensive travel insurance. It is the travel agent’s duty to advise
travellers of the unforeseen risks involved. They should ensure that
travellers are given complete information and guidance in selecting the
insurance plan, at the same time highlighting the benefits of the particular
plan and what all it covers.
The following clauses are usually included in most policies. .

Medical expenses cover

¢ This clause covers expenses incurred for availing immediate medical
assistance required on account of any illness or injury sustained or
contracted whilst on a trip abroad but not exceeding the sum insured
for. The policy will normally cover all reasonable medical, surgical,
hospital, and nursing fees incurred overseas, as a result of bodily
injury, illness, or disease, to relieve pain.
¢ Related expenses cover travel and accommodation expenses for
another person, to escort the client or patient home, or, in the event
of death, to cover the cost of returning the body or ashes home.
228 Tourism Operations and Management

* Careful attention needs to be paid to exclusions because some policies

do not cover pre-existing illnesses whilst others will cover them,
provided a doctor’s certificate of fitness to travel is issued.
¢ Other exclusions can relate to the age of the client or pregnancy, to
name a few.
¢ ‘Travellers may be concerned not only with medical attention in
specific diseases at the destination, but also for pre-existing health
problems. Private medical insurance companies are generally used
to provide coverage for such expenditure.
¢ In commercial contracts, difficulties may arise due to the exclusion
of pre-existing medical conditions, or insurance may not be available
to senior citizens who are in the high risk category.
« Lack of medical insurance can be an obstacle to the movement of
both international and domestic travellers.
The insurer will pay or reimburse the costs to the insured during the
policy period as per the guidelines mentioned in the policy. Sample
insurance claim form is enclosed in Appendix 8.6.

Dental treatment

This clause covers expenses incurred on acute anaesthetic treatment ofa

natural tooth or teeth during a trip abroad but not exceeding the sum
insured for.

Total loss of checked-in baggage

This clause covers the total loss of checked-in baggage on a trip abroad.
The payment for this benefit will be limited to the travel destinations
specified in the main travel ticket purchased from the Republic of India
and return trip back to India during the trip abroad. All halts and via
destinations included in this main travel ticket will also be considered for
payment under this benefit.

Delay of checked-in baggage

This clause covers the temporary delay of checked-in baggage being
transported during a trip abroad. The payment for this benefit will be
limited to the travel destinations specified in the main travel ticket from
India and return trip back to India during the trip abroad. All halts and
via destinations included in this main travel ticket will also be considered
for payment under this benefit.
 Travel Formalities and Regulations 229

This includes costs of necessary emergency purchases of toiletries,

medication, and clothing in the event of the insured suffering temporary
delay of his/her checked-in baggage while being transported during the
trip. However, the delay of checked-in baggage should be more than
12 hours from the actual arrival time of the common carrier at the
destination and relate to delivery of baggage that has been checked in by
the common carrier. Receipts for the necessary emergency purchases of
toiletries, medication, and clothing that the traveller needed to buy should
be submitted along with the claim.

Loss of passport
This clause covers the loss of passport during a trip abroad but not
exceeding the sum insured for the coverage. In the event that the passport
belonging to the insured is lost, the company will reimburse the insured
for actual expenses necessarily and reasonably incurred in connection
with obtaining a duplicate or fresh passport.
No payment will be made under this benefit in connection with or in
respect of any expenses whatsoever incurred by the insured for the
following reasons:
¢ The loss of the passport is due to a delay, confiscation, or detention
by the customs, police, or public authorities.
¢ The loss is due to theft, unless it has been reported to the police
authorities within 24 hours of the insured becoming aware of the
theft and a written police report being obtained in that regard.
¢ The loss is due to carelessness on part of the traveller.

Personal liability
This clause covers the insured in the event if the insured becomes legally
liable to a third party under statutory liability provisions in private law
for an incident which results in death, injury, or damage to the health of
such third party, or damage to their properties.

Personal accident
This clause covers the insured for personal accident suffered during a
trip abroad. An accident is considered to have occurred if

¢ the insured suffers involuntary damage to his/her person as a result

of an event that suddenly acts on his/her body from outside; and
230 Tourism Operations and Management

¢ due to excessive exertion, a joint is dislocated or muscles, ligaments,

or tendons are strained or torn.

If the insured meets with an accident, which leads to death or

disablement of the insured, the company will provide insurance coverage
to the insured for
e death of insured
¢ permanent disablement of the insured

However, it does not cover the following:

¢« Accidents due to mental disorders or disturbances of consciousness,
strokes, fits, or convulsions which affect the entire body and
pathological disturbances caused by the mental reaction to the
same.
¢ Damage to health caused by curative measures, radiation, infection,
and poisoning, except where these arise from an accident.

Hijack distress allowance

This clause covers compensation in the event of hijack of a common
carrier in which the insured is travelling ona trip abroad.
However, the following are not included.
¢ Expenses incurred in the first 12 hours of the hijacking.
¢ Any incident where the insured is suspected to be either the principal
or an accessory in the hijacking.
* Any change in the regular routes of travel/journey of the common
carrier due to traffic, weather, fuel shortage, and technical snag or
security reasons.

Financial emergency assistance

This clause covers compensation of the insured in the event of a financial
emergency arising due to theft, mugging, robbery, or dacoity of the funds
of the insured. ‘Financial emergency’ means a situation wherein the
insured loses all or a substantial amount of his/her travel funds due to
theft, robbery, mugging, or dacoity, such that there is a detrimental effect
on his/her travel plans.
It does not cover a shortage or loss of funds due to currency fluctuation,
errors, Omissions, exchange loss, or depreciation in value. This includes
any loss not reported to the police authorities having jurisdiction at the
 Travel Formalities and Regulations 231

place of loss within 24 hours of the occurrence of the incident and a

written report being obtained for the same.

Fire and allied perils (home building and contents)

This clause covers the home or any part of the property where the traveller
is residing abroad. One receives compensation if after payment of the
premium the property insured described in the said schedule or any part
of such property is destroyed or damaged by any of the perils, such as
fire, lightning, explosion/implosion, damage caused by aircraft, riots,
strikes, and other malicious damage excluding direct or indirect loss or
damage by an act of terrorism.
This clause excludes loss, damage, cost, or expense of whatsoever
nature directly or indirectly caused by, resulting from, or in connection
with any acts of terrorism or natural calamities such as storms, cyclones,
typhoons, tornados, and floods.

Burglary (home contents)

This clause covers compensation for any loss or damage sustained by
the insured during the stay abroad caused by burglary and/or attempted
burglary, to the contents of insured’s dwelling.

Trip cancellation and interruption

This clause covers compensation if a trip is delayed, cancelled, or
interrupted due to any of the following reasons:

¢ unforeseen serious illness, injury, or death of the insured or insured’s

family member,
¢ termination of employment or layoff, affecting the insured or the
travelling companion(s) of the insured;
e inclement weather conditions causing delay or cancellation of the
trip;
¢ any fire, flood, vandalism, burglary, or natural disaster, making the
insured’s intended place of occupancy, at the destination,
uninhabitable;
e abduction or quarantine of the insured;
e the insured or a travelling companion being the victim of a felonious
assault within ten days prior to the departure date; and
¢ aterrorist incident in a city/destination listed on the insured’s itinerary
within 30 days of the insured’s scheduled arrival.
232 Tourism Operations and Management

Missed connections

This clause covers compensation in the event that inclement weather

causes cancellation or a delay of all regularly scheduled airline flights on
which the insured is or would be travelling, for three to twelve hours
from the scheduled departure time.
This clause covers the following:

e Additional transportation costs to join the trip (must be same class of

original tickets purchased).
¢ Reasonable accommodations and meals up to USD 50 per day.
¢ Non-refundable, unused portion of the prepaid expenses as long as
the expense is supported by a proof of purchase and is not
reimbursable by another source; the common carrier must certify
the delay of the regularly scheduled airline flight.

Travel delay
This clause agrees to reimburse the insured for the reasonable additional
expenses, incurred by the insured up to USD 100 per day, if the insured’s
trip is delayed for more than six hours from the scheduled time until
travel becomes possible. Incurred expenses must be accompanied by
supporting receipts. This benefit is payable for only one delay per insured
per trip on account of the unforeseen reasons mentioned in trip cancellation
and interruption clause as well as delay by the common carrier, lost or
stolen passport, travel documents, or money.

Bounced bookings of hotel and airlines

This clause agrees to reimburse the insured if the hotel booking/airline
ticket bounces due to over booking. To claim this benefit under non-
availability of accommodation on account of over booking by the hotels
or airlines, the insured should have reconfirmed the booking in advance
and should have written proof of the same. Wait listed booking will not
be compensated for. The compensation will be reimbursed for reasonable
additional cost incurred in staying at a similar hotel or buying a new
ticket, less the refund/compensation given by the airline or hotel.

Some general conditions

Travel insurance applies to sea/cruise travel as well. However there are
age restrictions that apply. Minimum age of the insured should be six
months and maximum age should be 70 years. The maximum number
 Travel Formalities and Regulations 233

of travel days in a travel insurance policy is 180 days and some companies
may extend the same for an additional period of 180 days, maximum.
The policy comes into effect from the commencement of the trip or
when the traveller boards the carrier.
Most policies do not cover potentially dangerous sports such as
mountaineering, skiing, underwater sports, etc. Professional and
semiprofessional sportsmen may need to pay an additional premium.

Refund of premium
Some amount may be refunded after deducting cancellation charges, if
the policy is terminated at an earlier date because the insured returns
back to India. However, this is applicable only if the number of days for
which refund is asked is minimum 30.
The travel agent should advise the tourist to preserve original tickets
and boarding passes as well as original bills and vouchers, reports,
prescriptions, etc. In the event of any unforeseen circumstances, these
documents will need to be submitted for claiming settlement. The helpline
numbers (toll free) and fax, and e-mail identity of the party to be contacted
in an emergency should be noted. The travellers should ensure that they
carry the insurance policy as well as claim form along with them, and
have emergency numbers handy.
Careful attention needs to be paid to exclusions and travellers should
familiarize themselves with the policy document by reading it before
departing on their trip. Exclusions may relate to pre-existing illnesses,
state of health, age, pregnancy, etc. Each clause covered is likely to have
some exclusion. Once again the travel agent must ensure that the
maximum contingencies are included in the policy, and advise the
traveller accordingly.
Travel involves certain formalities which must be completed before
one sets course on a journey if it is to be smooth and hassle free. Without
the necessary official documents and endorsements, as well as desirable
formalities like travel insurance and prophylactic medication, which need
to be completed, one must not venture crossing borders and ports.
Tourism professionals should be up-to-date with the latest rules and
regulations in force and should be aware that some of the procedures are
time consuming. The regulations vary from one country to another and
are framed keeping the interests of the country and the tourist in mind.
They need to be completed by the tourist before they can leave their
own country or enter another country.
234 Tourism Operations and Management

SUMMARY
Travel formalities are regulations which are necessary both in the interest of the
tourist and of the country being visited. They affect tourism both directly and
indirectly. Certain formalities need to be completed by tourists before they
leave their own country and some regulations come into force en route. They
include possessing a valid passport which shows the holder's national status
and allows the person to pass the port or border without any hindrance, entitles
a person to seek assistance in a foreign country and gives a person the right to
return to his country. It contains personal information and is used for
identification.
A visa is a permit which allows a citizen of one country to enter into another
country. It is issued by embassies and consulates of the countries to which
travel is sought. It may be endorsed on the passport, issued separately, or
given on arrival into a country.
Health regulations are in force to protect the health of the tourist and prevent
the spread of communicable diseases. Special permits are issued to travel to the
border states of India. These permits are generally valid for up to 15 days.
Customs checks are enforced at all entry/exit points and customs duty is
charged on goods as per rules. Forex rules need to be followed which includes
foreign exchange to be carried, spent, or kept in one’s custody after the trip.
Duty-free shops at ports, offer a wide array of gifts and goods which are available
at a rate lower than the local market.
The travel agent should advise customers to get travel insurance before
undertaking a foreign tour because of exorbitant medical expenses charged
abroad. Travel insurance covers many benefits in addition to health or medical
insurance and covers unforeseen risks which may occur during the trip.
It is the duty of the travel agent to ensure that the traveller has all required
valid documents before setting off on a trip abroad. If the necessary documents
and immunizations are not in order, it may result in delay or cancellation of the
trip.

KEY TERMS
Agent A person authorized to act on behalf of another. For example, a travel
agent is authorized by the providers of services such as airlines, car rentals,
tour operators, hotels, etc. to sell travel-related services on their behalf.
Air travel Travel by an airline/aircraft for the purpose of flying therein, as a
passenger.
Checked-in baggage Baggage handed over by the traveller and accepted by an
international carrier, in the same carrier as the traveller, for which a baggage
receipt has been issued.
 Travel Formalities and Regulations 235

Consulates Office of embassies and high commissions located in major cities

of a country to make visa and other services easily available.
Contingencies Something unforeseen that may occur.
Cruise Travel by a ship specially designed for leisure travel.
Customs Important security check of the government located at entry points
such as airports, seaports, and border posts, to prevent illegal trafficking of
goods and other items.
Duty-free shops Shops located at air, sea, and bus terminals, selling goods
such as jewellery, watches, liquor, perfumes, chocolates, etc. which are
exempted from local excise, hence are lower in cost than the local market.
Emigration Going out of a country.
Immigration Coming into a country.
Indemnifies Protects against penalties incurred by one’s actions, compensation
for injury.
Insurance policy Written contract between the client and the insurance company,
which dictates the terms of the insurance. Must be signed by both the
insurance company (insurer) and the person who is being covered (insured)
to be valid.
Insured The individual whose name specifically appears as such in the policy.
Passport An official document required to travel outside the country which
proclaims the citizenship of the holder.
Period of insurance With reference to the single-trip policy, the period from
commencement of insurance cover to the end of the insurance cover or
actual trip duration, whichever is less.
Physician A person who is qualified to practice medicine, a surgeon, or an
anaesthetist, and has a valid licence issued by the appropriate authority for
the same, provided that this person is not a member of the insured’s family.
Pre-existing condition Chronic illnesses or ailments and consequences of such
illnesses or ailments, existing or known to exist at the commencement of
the period of insurance or for which medical advice has been sought in the
last six months.

CONCEPT REVIEW QUESTIONS

Define the term passport. List the different types of passports.
Mention the documents required while applying for a new passport.
What is visa? Explain the different types of visas.
What are restricted and protected areas?
Explain the need for travel regulations in the tourism industry.
Name some insurance companies which offer travel insurance.
Why is it advisable to have travel insurance while going abroad?
RP
DY
KRW What is basic travel quota scheme?
CONDO
236 Tourism Operations and Management

9. Why is emigration check required?

10. List the duty-free allowances for tourists.
11. What are the baggage rules for tourists?
12. Describe health regulations and explain why they need to be enforced.

CRITICAL THINKING QUESTION

A student has gone to the USA for training abroad on a four month student visa
(J-1 visa). The training did not commence as scheduled but was delayed by a
fortnight. The student needs to complete four months training as part of the
curriculum. Explain the procedure to be followed for the extension of his/her
visa.

PROJECT/ASSIGNMENT
Visit the passport office and apply for a passport for yourself or your friend and
list the documents required, procedure to be followed, and time duration required
for the same.

REFERENCES
Bhatia, A.K. 2001, International Tourism Management, Sterling Publishers Private
Ltd, New Delhi.
IATA - International Travel Agents Training Programme 1997, Standard Course,
Introduction to Tourism, TATA, Montreal.
IATA - International Travel and Tourism Training Programme 2004, Travel
Formalities, Aviation Training and Development Institute, Montreal.
IATA/UFTAA Training Issue 2006, Travel Information Manual IATA, Netherlands.
IGNOU School of Social Sciences 1994, TS 1 Foundation Course in Tourism IGNOU,
New Delhi.
Kaul, R.N. 1985, Dynamics of Tourism: A Trilogy, Vol. I—The Phenomenon, Sterling
Publishers Private Ltd, New Dethi.
www.tourindia.com, accessed between 4 April 2008 and 15 July 2008.
www.tourismofindia.com, accessed between 4 April 2008 and 15 July 2008.
www.passport.gov.in, accessed between 4 April 2008 and 15 July 2008.
www.cbec.gov.in, accessed between 4 April 2008 and 15 July 2008.
www.usavisa.com, accessed between 4 April 2008 and 15 July 2008.
www.ukvisaservices.co.uk, accessed between 4 April 2008 and 15 July 2008.
www.mychinavisa.com, accessed between 4 April 2008 and 15 July 2008.
www.iata.org, accessed between 4 April 2008 and 15 July 2008.
www.path2usa.com, accessed on 6 February 2009.
 Travel Formalities and Regulations 237

APPENDIX 8.1

Format for Passport Application

Government of India
Ministry of External Affairs a Pee Ne aiad
Passport Application Form (No.1) unsigned recent
(For New / Re-issue/ Replacement of Lost/Damaged Passport) colour
(Please tick the required category) photograph.
- Size: 3.5 X% 3.3 cm
Signature
OR
oe ssaottioanoedorcndaoniicavohecch steam
Thumb Impression

Please read the Passport Information Booklet carefully before filling the form, in CAPITAL
LETTERS in blue’ black ball point pen only:
(CAUTION: Please furnish correct information. Furnishing of incorrect information would attract
penal provisions as prescribed under the Passports Act, 1967). Please produce your original
_documents at the time of submission of the form.
For official use only
Te RMA NSEUNAPIUEY can occ yia cnc DePaune hu Roddie Rindamom mR Ree Police Verification required tVes/No) ECR / &OmR

i Signature of Checking Offic: i

Fee Amount Rs Cash /D.D Bank Code D.D No. Date of Issue of DD
eked . ii ee fk esFN OOM) Wa FO PeOS Ha PP &Os eB
1. Name-of applicant |as = should appear in the oe ' CUnitials 2 not allowed) |
Surname Za: | i
| Given Name = | i 2 af
iwith dow urmentary i | foc. of 1 oe | i ae.
'
os 4] i cart aa ste | oe
2. In case of change of name/surname 4 marriage or otherwise with documentary proof), please maiecate
the previous name/surname in full
a ae | ae
a 5 * & ee +
; 4 ‘ 4 +wer +
amet
ods 4 + $ 4 &

i & Be oevl 5 Been i i

3. Sex
Male ~~ Femate Others

4. Date of Bith: DDL] ]mMmM(_JIL] vyyy CICICIC)

(with documentary proof)
In words.
S. :Place ofi Birth:
Rois Village
a /Town, District,
rte , State, Country cea) Documentary Proof)
i 7 ‘ a eee | Tactaget sy Sg Ma (Sa MN LyOk! aris Bie
a +ae H ae 2 + 4 - nh H hier ‘ me fom he e 4 O ret + ' : :
i et es Se e Lad ae A e |
6. Father/I egal Guardian’ sF ull Name (including surname, if any): (Initials not LL haha) Sn
i et
3 z
(Pe ‘ie +. S|
eae 6
af i ee ee ea
+ + 4 = Peeve) | ene } N & 4 H i i, i

Mother’ s F surname, ifany): (h

‘ull Name (including + a ved) mae
ff ' i i ]
; | i j ': ae es e Se [a moped j i
= i eS a a ee i Funk ae ae)
at maried,EcullName
a of wife/husband
= (including surname,
Si dresilelannntubabac: ifMe ony): (initials
‘asic not Wis
a Ga allowed)
te

i i : i | | | j | \
238 Tourism Operations and Management

8a if eimeceidow/ widower, Please indicate the category with documentary proct:

hed ae Wl PS SY eH ad Aboo
9. Current Residential Address (where staying presently), Residing since ............. 60... ec cn eet en eee cneens
(in case of students, please see Section Ill of Passport! Information Booklet) aa ae Ee
Bevee 7 (i th is ahs
feat ee Coe ane SleeUcn Ses Cart fees Ses Sees eee Seed Ls Uencd Sot eens hocmetes Wire Ect Med ie : : A '

élephone No. ef ee - Mobile No.

Se [4 le ianaa oo ome Fee cL rt TL a

9 (a) If you have been resident at your current address for less than one year, please furnish other addresses
of your residence during the last one year.
EPO hoo cmdtnn we Gs Ree
An AP siya Oe

10. ereaarent Atieas writh PIN aus (if the permanent address is same aspee present Peniiede write “Same”
ont,
| a Ace oe os Se eel i die ial Aad

}i +
i i i
+ reer+4
iar
HH
They a en Rem
[ aoe
eae
ct
11. Details of latest held/existing Ordinary / Diplomatic / Official passport(s):
(i) Pasenort OP ice PUCINGs oo. 4 ss wdc osc cemeinnsseesf Passports VINOz.. 2c cemer wee ran | ee ae
(1) Daicratid Plate ot 1SsiBes occ Joovads acy crane euoviaen (LDL OL BEXIEY ee ce ne ele oad Fe eee
(iit) In case passport was applied for and not issued, please give File No. & Date ........00000.. ccc
{iv} Ilias your passport(s) ever been lost / damaged (if so attach FIR and give details)

11. (a) If you have returned to India on Emergency Certificate (EC) or were ever deported or repatriated,
please furnish detarls:
EC No., date and place of issue & attach seizure memo in original
Place & Country from where deported / repatriated and reason thereof:

12. Other Details:

a) Educational Qualifications
 Travel Formalities and Regulations 239

13. Are you working in Central Government/ State Govt/ PSU/ Statutory Bodies (Y )es/ (No
if “Yes’ attach Identity Certificate (As per Annexure “B” of Passport Information booklet).
Id. Are you a citizen of India by: (B)irth/(D)escent/(R )egistration/(N Jaturalisation; . 0 0 0.0 0000000 ccc
If you have ever possessed any other citizenship, please indicate previous citizenship .....................
1S. “Emigration Check Not Required” status? Yes/No .....................
(Please note that all 10 and above qualified applicants are eligible for ECNR status.)
If yes, mention the eligible category (see Section I] of Passport Information Booklet) and enclose copy
of relevant certificate/document __ Wameen (ae as Sa}
1 tad x7

16. In case of minors (applicant below the age of 18), if EITHER of the parents hold a Valid Indian
Passport or has applied for it give the following details. Please see and fill up attached Annexure-I1,
Passport’ File No. Date & Place of Issue/ Application
Mother
Father

17. (a) Have you at any time during the period of Five years immediately preceding the date of this
application been convicted by a court in India for any criminal offence & sentenced to imprisonment
for two years or more? If so, give name of the court, case number and relevant sections of Law.
(Attach copy of judgement)

(b) Are any criminal proceedings pending against you before a court in India? If so, give name of court,
case number and relevant sections of Law.

(c) If answer at (b) is (Yes, please furnish No Objection Certificate from competent court for grant of
Passport.

(d) Have vou been ever refused/denied passport? If yes, give details:

18. Particulars of person to be intimated in the event of death or accident:

LO ae Ree MERE ee MEGA Octane SEE = COE OO eee ee re ON eee eee ere
Peete termes) Vs ire eee pido acadish oc mein aioe nite ena ae ae Oe PON A OO Me POURS ES KANG NAT CRN E RUA ERS

GQ)
240 Tourism Operations and Management

19. Self Declaration:

I owe allegiance to the sovereignty, unity & integrity of India, and have not voluntarily
acquired citizenship or travel documents of any other country. I have not lost, surrendered or been deprived
of citizenship of India. The information given by me in this form and enclosures is true and | am solely
responsible for its accuracy. | am aware that it is an offence under the Passports Act, 1967 to furnish any
false information or to suppress any material information with a view to obtaining a passport or any other
travel] document.
1 further declare that I have no other passport/ travel document.

(Signature/Thumb Impression of Applicant)

2 ee are ener (Left Hand Thumb Impression if male and Right
Hand Thumb Impression if fernale)
Place ........

20. Enclosures:

1 Pract of ciate oF birth eo cee tec je 2 Proot of Residence iis... ccc 5 i oie eee ante tes

3 Educational Qualifications ...........--....-....-- 4 soot teeter tik ie ee aR es ee

eT eee re RO Pa 8 eg Bian Mee net MRM elt, Ree, MERE ee Tee We Wee HeMeree? Empat et ya) eh, ee: Siler See

(For Official Use Only)

Checked by Name Signature/date

Granted by Name Signature/date

Scanned by Name Signature/date

Dispatched by Name Signature/date

(4)
 Travel Formalities and Regulations 241

Paste your
cross signed
PERSONAL PARTICULARS FORM recent colour
(in Duplicate) photograph,
size 3.S*3.5 em
1. Full name (Initials not allowed)

a AMER TIVERAE 2 PRIAIC fF CUO ol coctuiten ues nee eek anas cee
(a) Has the applicant ever changed name?
ADEs EEE ORR IRENA CIES. hrs) ei ccaer bina Sad ournid be Sages oiesavoh NW so Neen Oe the ca vena var vavees inet
Ne MLC RLEN COL ESINEN Gseee ty. oii a eee v tonne Se RASS COs CPLA ESES
EDL, rere een sect tac dale Sere rae vas oO EL OR ati
PAL SERUR
NEN oir ere Meee Te aris kay re RAR sions Une nthe a RANA tee teeRG iesbem tesk Tha eau bubated dee rocuenal
Bin, SEEDPUT OS oa) SieBea ete rc Aho oe ROP I RNR OR Ci cial Ws haope piel bal ee ie carerica ByWt SR a Re ee MEI
(Surname) (Name)
SANDS LO) osRee ga GG RO CLR REEAS Rt SNR, AB ire cn 9a hy ean EEN ORM a ANP Ae ROR CTERNLSM CRP fh GA rien 8
(Surname) (Name)
ope REC
aoea Ura 3 te eaepryeen MO a ry degele weet ee NM PS lure ARSHuysheescin Cite RAS Ear 9 5 RN ee ee :
(Surname) (Name)
& a) Permanent Address & Tel. No. &(b) Present Residential Address & Tel. No, along with
along with Police Station Police Station and residing since

9. If you have not been resident at the address given at COLUMN &(b) continuously for the last one year.
please furnish other address(es) with duration(s) resided (Please furnish an additional set of P P Forms
for each address with Police station.
PRON. hence Sian SE ODE Ser whet, Wet eoe be EOPORIE, © eer eee nes sau To

for the applicant.

(1) Name, Address & Tel. No. (2) Name, Address & Tel. No.

11. Citizenship of India by: Birth EJ Descent Ua Registration Le Naturalization CJ

12. Furnish details of previous passport / trave! document, if any:
(i) Passport/Travel document No: ........ 0.220.012. ee ee seee (ai) Dated: Place GG ss8ue ok secon nce cn catenansee

For Police Use Only Signature or Thumb lmpression of the applicant

(Left Hand T.1, if male and Right Hand T.1. if female)

Recommended Passport: YES/NO

(5S)
242 Tourism Operations and Management

APPENDIX 8.2

Visa Requirements for Some Popular Destinations

Australia
Tourist visa

Valid Passport
Application form duly filled
Photographs (as per requirement)
Covering letter, from the applicant stating the purpose of tourism, and the
intended duration of visit
Foreign exchange, to be endorsed in the passport/copy of the international
credit card
Photocopies of income tax papers of last three years
Personalized bank statement for the last three months
Employers leave certificate (leave sanction from employer)
In case of children, leave certificate from school must
Sponsorship required if visiting relatives, fee as applicable

Business visa

Valid passport for six months

Visa form duly filled and signed, as per the signature in the passport,
by the applicant
Photographs (as per requirement)
Covering letter on company letterhead mentioning the applicants name,
designation, purpose and duration of visit
Foreign exchange, to be endorsed in the passport/copy of the international
credit card
e Invitation from the Australian party/company
e Personalized bank statement for last three months
e Photocopies of income tax papers of last three years
e Validity of the visa to be decided by the embassy

Fee
As applicable, by draft, in favour of ‘Australian High Commission’, New Delhi.
Health insurance must, if above seventy years. (All passengers above seventy
years of age are required to undergo medical tests.)
Time taken seven to nine days
 Travel Formalities and Regulations 243

Transit visa

Valid passport ¢ Application forms

Four photographs ¢ Covering letter
Confirmed return ticket ¢ Onward visa.
Fee Nil
Time taken Five to seven days

China
Tourist visa

Valid passport
Visa form duly filled and signed, as per the signature in the passport,
by the applicant
Two coloured photographs 35mm x 45mm (white background with 80 per
cent of face showing clearly)
Covering letter, from the applicant stating the purpose and intended duration
of the visit
Foreign exchange, to be endorsed in the passport/copy of the international
credit card.
Hotel booking confirmation from China itself with original round seal, address
and telephone number on hotel letterhead.
Bank statements for last six months showing minimum closing balance of
Rs.1,50,000 duly stamped or original passbook.
Last three years’ income tax papers
Fee as applicable

Business visa

Valid passport
Visa form duly filled and signed, as per the signature in the passport,
by the applicant
Two coloured photographs 35mm x 45mm (white background with 80 per
cent of face showing clearly)
Covering letter on company letterhead mentioning the applicants name,
designation, purpose and duration of visit
Foreign exchange, to be endorsed in the passport/copy of the international
credit card
Invitation from the Chinese party/company
Last three years’ income tax papers
Fee as applicable payable by draft in favour of Consulate General of China,
Mumbai
Time taken Four to six working days
Ma
244 na
Tourism Operations and gement
France

Tourist visa

Valid passport
Visa form duly filled and signed, as per the signature in the passport, by
the applicant
Two coloured photographs 35mm x 45mm (white background with eighty
per cent of face showing clearly)
Covering letter, from the applicant stating the purpose and intended duration
of the visit
Confirmed return ticket
Foreign exchange to be endorsed in the passport/copy of the international
credit card
Passenger’s contact details
Proof of hotel confirmation from France (with address and contact details)
Original insurance papers
Copy of income tax papers
Photocopy of the passport’s first page, air ticket, and insurance
Fee As applicable

Business visa

Valid passport
Visa form duly filled and signed, as per the signature in the passport, by the
applicant
Two coloured photographs 35mm x 45mm (white background with 80 per
cent of face showing clearly)
Covering letter on company letterhead mentioning the applicant’s name,
designation, purpose and duration of visit
Confirmed return ticket
Invitation from French company
Proof of hotel booking (with address and contact details)
Foreign exchange, to be endorsed in the passport/copy of the international
credit card
Original insurance (only TATA, BAJAJ or ICICI, or any other insurance that
has the ‘Repatriation Column’ duly filled and highlighted)
Photocopy of the passport’s first page, air ticket, and insurance
Fee As applicable, by draft
Time taken Minimum three working days
Please note all the passengers will have to come to Mumbai for finger printing
at the French consulate.
 Travel Formalities and Regulations 245

Germany
Tourist visa

Valid passport
Visa form duly filled and signed, as per the signature in the passport, by the
applicant.
Covering letter, from the applicant stating the purpose and intended duration
of the visit
Photograph (as per requirement)
Leave letter from employer
Confirmed return air ticket
Hotel confirmation
Foreign exchange, to be endorsed in the passport/copy of the international
credit card
If employed, salary slips for last three months or Form 16A.
Original income tax papers (for last three years)
If any fnend/relative in Germany, required original sponsorship declaration
with invitee passport copies
Medical policy with photocopy
Time taken Three working days

Business visa

Valid passport
Visa form duly filled and signed, as per the signature in the passport, by the
applicant
Photograph (as per requirement)
Covering letter on company letterhead mentioning the applicant's name,
designation, purpose, and duration of visit
Invitation letter from Germany
Confirmed return air ticket
Foreign exchange, to be endorsed in the passport / copy of the international
credit card
If employed, salary slips for last three months or Form 16A
Original income tax papers (for last three years)
Medical policy
Fee As applicable
Time taken Three days
A passenger travelling for the first time, needs to come in person, by taking
an appointment.
246 Tourism Operations and Management

Japan
Tourist visa

Valid passport
Visa form duly filled and signed, as per the signature in the passport, by the
applicant.
One photograph
Covering letter, from the applicant stating the purpose and intended duration
of the visit
Proof of hotel confirmation
Confirmed return air ticket
Foreign exchange, to be endorsed in the passport/copy of the international
credit card
Income tax papers

Business visa

Valid passport
Visa form duly filled and signed, as per the signature in the passport, by the
applicant
One photograph
Covering letter on company letterhead mentioning the applicants name,
designation, purpose and intended duration of the visit
Original invitation is must
Confirmed return ticket
Foreign exchange, to be endorsed in the passport/copy of the international
credit card
Income tax papers
Salary slip
Fee As applicable, by draft
Time taken Three days

Malaysia
Tourist visa

Valid passport
Visa form duly filled and signed, as per the signature in the passport, by the
applicant
Two photographs
Covering letter, from the applicant stating the pumOse and intended duration
of the visit
 Travel Formalities and Regulations 247

e Foreign exchange, to be endorsed in the passport / copy of the international

credit card
¢ Confirmed return air ticket
¢ Hotel confirmation or tour itinerary
Fee As applicable by draft favouring Consulate General of Malaysia

Business visa

e Valid passport
e Visa form duly filled and signed, as per the signature in the passport, by the
applicant
¢ Two photographs (as per requirement)
¢ Covering letter on company letterhead mentioning the applicant’s name,
designation, purpose, and duration of visit
e Confirmed return ticket
¢ Foreign exchange, to be endorsed in the passport/copy of the international
credit card
e Invitation to be faxed directly to the embassy by the inviting party in
Malaysia and copy to travel agent with documents
Fee As applicable, through draft favouring Consulate General of Malaysia
Time taken Seven days

Mauritius
Indian nationals can get a visa on arrival for fifteen days.
Tourist and business visa
e Valid passport
e Visa form duly filled and signed, as per the signature in the passport, by the
applicant
¢ Two photographs (as per requirement)
e Covering letter on company letterhead mentioning the applicant's name,
designation, purpose, and duration of visit
© Covering letter, from the applicant stating the purpose and intended duration
of the visit
e Confirmed return air ticket
e Exchange endorsement (minimum of USD 500 along with original exchange
endorsement receipt) or
e Copy of an international credit card, along with original credit card and
credit card statement for last six months
e Hotel confirmation only from the hotel in Mauritius on their letter head,
including the name of the passenger and the intended check-in and cneck-
248 Tourism Operations and Management

out dates (e-mail confirmation and travel agent’s confirmations not accepted
any more)
Original income tax papers (for last three years)
Original bank passbook/bank account statement for minimum three months
Fee As applicable
Time Taken Three days

New Zealand
Tourist visa

Valid passport
Visa form duly filled and signed, as per the signature in the passport, by the
applicant
One photograph (as per requirement)
Covering letter, from the applicant stating the purpose and intended duration
of the visit
Foreign exchange, to be endorsed in the passport/copy of the international
credit card
Complete family detailson letterhead
Bank account statement for the last three months
Income tax documents for the last three years
Fee As applicable

Business visa

Valid passport
Visa form duly filled and signed, as per the signature in the passport, by the
applicant
Photograph (as per requirement)
Covering letter on company letterhead mentioning the applicant’s name,
designation, purpose, and duration of visit
Invitation from New Zealand
Foreign exchange, to be endorsed in the passport/copy of the international
credit card
Original income tax papers (for last three years)
Original bank passbook/bank statement for minimum three months

Fee As applicable, by demand draft

 Travel Formalities and Regulations 249

South Africa
Tourist visa

Valid passport
Visa form duly filled and signed, as per the signature in the passport, by the
applicant
Two photographs (as per requirement)
Covering letter, from the applicant stating the purpose and intended duration
of the visit
Proof of hotel confirmation, or sponsorship from South Africa (original
affidavit B1 1355 from the sponsor in South Africa), and copy ofidentification
documents/passport attested by foreign police, same day, when the affidavit
is issued, along with the bank account statement of the sponsor
Day-to-day itinerary
Confirmed return air ticket
Income tax papers
Foreign exchange, to be endorsed in the passport/copy of the international
credit card
Leave letter
If employed, salary slips for last three months or Form 16A
Health requirement—also for transit passengers not leaving the airport—
vaccination against yellow fever. Malaria prophylaxis is recommended.

Business visa

Valid passport
Visa form duly filled and signed, as per the signature in the passport, by the
applicant.
Two photographs (as per requirement)
Covering letter in detail, mentioning the duration of visit
Recommendation letter from the Chamber of Commerce
Invitation from a South African party/company
Proof of hotel confirmation
Confirmed return air ticket
Credit card copy or endorsement copy
Income tax papers
Health requirement—also for transit passengers not leaving the airport—
vaccination against yellow fever. Malaria prophylaxis is recommended.

Fee As applicable
Time taken Ten days
250 Tourism Operations and Management

Singapore
Tourist visa

Valid passport
Visa form duly filled and signed, as per the signature in the passport, by the
applicant
Two photographs (as per requirement)
Covering letter, from the applicant stating the purpose and intended duration
of the visit
Confirmed return air ticket
Foreign exchange, to be endorsed in the passport/copy of the international
credit card
Original Income tax papers (last three years)
Original bank passbook/bank account statement for minimum three months
Fee As applicable, by draft

Business visa

Valid passport
Visa form duly filled and signed, as per the signature in the passport, by the
applicant
Two photographs (as per requirement)
Covering letter on company letterhead mentioning the applicant's name,
designation, purpose, and duration of visit
Confirmed return air ticket
Foreign exchange, to be endorsed in the passport/copy of the international
credit card
Invitation from Singapore
Income tax papers
Original bank passbook/bank account statement for minimum three months
Fee As applicable
Time taken Three days

Switzerland
Tourist visa

Valid passport
Visa form duly filled and signed, as per the signature in the passport, by the
applicant
Photograph
Foreign exchange, to be endorsed in the passport/copy of the international
credit card
 Travel Formalities and Regulations 251

Covering letter mentioning the applicant's name, designation, purpose, and

duration of visit.
Confirmed return air ticket
Hotel confirmation
Detailed tour itinerary
Overseas mediclaim policy
If employed, NOC from employer and leave letter.
Evidence of financial status which includes letter from employer (NOC
certificate), pay slips, original income tax returns for last three years, original
bank passbooks/account statements for last six months.
Fee As applicable

Business visa

Valid passport
Visa form duly filled and signed, as per the signature in the passport, by the
applicant
Photograph
Covering letter from employer on company letterhead stating -the applicant's
position, length of service, whether applicant is registered for tax, reason
for visit, whether expenses are being covered by company, etc.
Invitation letter directly faxed to the consulate from Switzerland and one
copy with the application
Foreign exchange, to be endorsed in the passport/copy of the international
credit card
Confirmed return air ticket
If employed, salary slips for last three months or Form 16A
Overseas mediclaim policy
Consulate may insist for personal interview in some cases
Fee As applicable, through a demand draft, in favour of the Consulate
General of Switzerland, Mumbai
Time taken Forty-eight hours.

Thailand
Tourist visa

Valid passport
Visa form duly filled and signed, as per the signature in the passport, by the
applicant
Two photographs (as per requirement, on white background)
Covering letter, from the applicant stating the purpose and intended duration
of the visit
252 Tourism Operations and Management

Confirmed return air ticket

Foreign exchange, to be endorsed in the passport/copy of the international
credit card

Business visa

Valid passport
Visa form duly filled and signed, as per the signature in the passport, by the
applicant
Two photographs (as per requirement, on white background)
Covering letter on company letterhead mentioning the applicant’s name,
designation, purpose, and duration of visit
Invitation from Thailand
Foreign exchange, to be endorsed in the passport/copy of the international
credit card
Confirmed return air ticket
Fee As applicable, through a demand draft, from a nationalized bank
favouring ‘Royal Thai Consulate General’, Mumbai
Time taken Two days

UAE
Business/tourist visa
Indian nationals intending to visit the UAE must obtain a ‘No Objection
Certificate’ (NOC) through their sponsor in the UAE
The sponsor must submit passport details to the Immigration Directorate
for the Immigration Directorate to issue the visa.
Processing time required for the above formalities is approximately fifteen
days
Visa is faxed to the traveller and must be carried by passenger.
No passenger is allowed to board the flight without the NOC.
Visa is valid for thirty days
Visa fees is paid by the sponsor while applying for the clearance
Incase of tourists, the invitation is valid only within blood relations i.e.
husband/wife, parents/children. Invitee must send copy of the labour
contract attested by Emirates Visa Section.
Time taken Four days

UK
Tourist visa

Valid passport
 Travel Formalities and Regulations 253

e Visa form duly filled and signed, as per the signature in the passport, by the
applicant
¢ Two photographs (passport size, white background, without border)
¢ Covering letter, from the applicant stating the purpose and intended duration
of the visit
Sponsorship declaration
Bank account statement, last three months
Income tax documents, last three years
Photocopy of the passport’s first page
Foreign exchange, to be endorsed in the passport/copy of the international
credit card
e Leave letter from employer
¢ Hotel confirmation

Business visa

e Valid passport
e Visa form duly filled and signed, as per the signature in the passport, by the
applicant.
¢ Two photographs (passport size, white background, without border)
e Covering letter on company letterhead mentioning the applicant’s name,
designation, purpose, and duration of visit
Invitation letter from the UK
Bank account statement, last three months
Income tax documents, last three years
Photocopy of the passport’s first page
Foreign exchange, to be endorsed in the passport/copy of the international
credit card
¢ Original bank passbook/bank account statement for minimum three months
e If employed, salary slips for last three months or Form 16A
Fee As applicable
Time taken Two days
Note: As per the new rules all visa applications have to be submitted at the
VFS centers only.
e All documents to be in original
e Consulate may insist for personal interview
e Should be accompanied by an authority letter for collection of passport

USA

Business visa

¢ One visa form, copies allowed (clear photocopy), duly filled and signed as
per the signature in the passport by the applicant.
254 Tourism Operations and Management

One recent photograph (as per requirement)

Valid passport
Covering letter on company letterhead mentioning the applicant’s name,
designation, purpose, and duration of visit.
Invitation letter from the USA
If employed, salary slip for last three months or Form 16A required
Tax papers and company papers are required, if self employed
Foreign exchange, to be endorsed in the passport/copy of the international
credit card
Passenger has to go for personal interview

Tourist visa

One visa form—copies allowed (clear photocopy) duly filled and signed, as
per the signature in the passport, by the applicant.
One recent photograph (50 mm x 50 mm) (milky white background)
Letter from the applicant stating the purpose and duration of the visit
Employer's certificate. Leave letter from employer if employed
If joining any tour, require tour confirmation
Affidavit-in-support attested by US Justice of Immigration
If employed, salary slip for last three months or Form 16A required
Tax papers and company papers are required, if self employed
If invited by relatives or friends, sponsorship declaration
Passport copies
For partnership companies, partnership deed to be enclosed
Foreign exchange, to be endorsed in the passport/copy of the international
credit card
Original income tax papers (for last three years)
Original bank passbook/bank account statement for minimum three months
Fixed deposit certificates
Property papers
Passenger has to go for personal interview
Fee As applicable
Time Taken Two days
 Travel Formalities and Regulations 255

APPENDIX 8.3

Health Questionnaire

BAZEA (BBRB)
(HEALTH QUESTIONNAIRE)
S At Ol SY CuSiig
= AOA)
Arrival Date Oe eee
AISP-SPS7|-A AALS ALS (AOA ALE RF] BS, )
Vessel Flight TrainCar No. :
ZIG S (RAB) Seat No. :
44 29(RE#) 2 G1 SS StH & mn
Name in full : Passport No. GF Rae):
=| (1 (SR) ‘=<t( 3) O4(4z) 4 24 (ERR)
Nationality : Male _ Female Age
SR FRR Hers SaaS
Contact address in Korea. Cie aa eee ee

BHF 102) Selo] AAMAS IA60l SAAS. GARB ATKSASRA Bim)

Piease list the countries where you have stayed during the past 10 days before arrival.

HH 102! Sto Oleh SAO] LAA YE ae OH tetoll MV, HAS GOL FAA.
+ EZ PORN FEM, aBALTE
AR AT )
Please check a mark °v,. if you have or have es any of the following symptoms
during the past 10 days before arrival.

| 44 AH BS) =P (At) led “|S (ARI) ) Sebed (CBA At)

Diarrhea Vomiting Abdominal pain Fever

JLB (RRR) _) SSC CH OPOR ERE) (] #2 S&S (Ree)

Cough Difficulty breathing Shortness of breath

AAA wM Shite Ears HSwae Ail & Oh ? ACH AISZs SB MIZ9%9] AoW CIA 14
OP GEL] Ls te = yOUres OFSEe| B = A{wee &< bes a MSc.

if you make a foe,gukernorit concerning your health or fail to fill out the Health
Questionnaire, a sentence of up to one year of imprisonment or up to 5
milfion won in ae a accordance with Articles 9 and 39 of the Quarantine Act.
Ht PE Bi EIS
MOS, TIBIA
MRR BH + NOME, SRF
— UL
Oyun 500 7 AF aD.
ChHetels SACARBASAAA(ABERM Bx) eA eA)
incheon Airport National Quarantine Station
Republic of Korea as
Pa Gogh)
256 Tourism Operations and Management

APPENDIX 8.4

Customs Declaration Form

U.S. Customs and Border Protection Welcomes You to the United States
US. Customs and Border Protection is responsible Jor protecting the United
Stares againse the egal importation of prohibited items. CBP officers have ve
authority t© question you and to examine you and your personal property. if
yeu are one of the travelers selected for an examination, you will be treated in a
FORM APPROVED courteous, professional, and dignified manser. CBP Supervisors and Passenger
18 CPR 122.27, 148.12, 1460.99, 16880148111, G8, CER 5316 OMB ND. 1850-0009 Service Representarives are available to answer your questions. Comment tards
Bach arriving traveleror responsible family member must provide the following ate available to compliment or provide feedback,
information (only ONE written declaration per family is required): Important Information
Family Name US. Residents — Declare all articles that you have acquired abroad and are
Birst Givens Middle bringing inte the United Srates.
Visitars (Non-Residents) — Declare the value of all articles thar will remain in
Birth date Day Month Year the United States.
Number ofFamily members traveling with you Declare all articles on this declaration form and show the value in U.S, dollar
Far gifts, please indicate the retail value.
fa) U.S. Street Address (hotel name/destination) Duty — CBP officers will determine duty. U.S, residents are nuraally entitled
to a duty-free exemption af $800 an items accompanying them. Visitors (non~
residents} are mens entitled to an exemption of $100. Dury will he assessed at
{b) City ic) Stare the current rate on the first $1,000 above the exernpuan.
Fassport issued by (country) Agricultural and Wildlife Products — To preveat the carry of dangerans
agricaltara) pests and prohibited wildlife, the following are restricted: Preis,
Se vegetables, plants, plant products, sail, meat, meat products, birds, snails, and
other live animals or animal products. Failure to declare such items to a Castors
Country of Residence and Barder Protection Officer/Castoms and Border Protection Agriculture
& Countries visited on this Spevtalist/Fish and Wildhfe Inspector can resalt i penalties and the items may
he subject to sercere,
trip prior ta US, arrival Controlled substances, obscene articles, and toxic substances are generally
0. Aarline/Plight No. or Vessel Name prohibited entry.
Thank You, and Welcasne to the United States
10. The primary purpose of this trip is business: es No The transportation of currency or monetary instFements, regardies of the
Ho Tam (We are) bringiag | Ky anmunt, is legal. However, if you bring in to or take out of the United Sones
{@) fruns, vegetables, plants, seeds, food, insects: Ves No more than $1,006 CUS. or foreign equivalent, or a combination of twth), you are
sequired by law te Ble a report on PinCkN 108 (formerly Customs Form 4790)
(Gb meats, agunals, animal Awildlite ponducts: Yes in with LS, Customs oad Border Protection. Monerary instruments inchide coin,
currency, travelers checks and hearer instruments such as personel or cashiers
fe) disease avers, cell culures, snails: Yo No
cheeks and stocks and bonds. Hf vem have someone else carry the currency oF
id} soil or have been on a farm/ranch/pastnre: Yes ine monetary instrument for you, you must also file a report an FinCfhos 105. Pathere
ti file the cequired repart or failure te report the fon amonar that you are carrying
id. thave (We hove} been in close proximity of may lad pe the seizure of ad the currency or monetary inseraments, and may sub
Goch as touching or handling) livestock: Yes No vom t civil penalties and/or criminal prosecution. SIGN ON TELE OPPOSITE
13. [am (\WVe are) carrying currency or monetary SUJE OF THIS FORM AFTER YOU HAVE READ THE IMPORTANT
instruments over $10,000 U.S. of furnign equivalent: Yes No INFORMATION ABOVE AND MADE A TRUTHFUL DECLARATION.
isee definition of monetary instruments.on reverse) : Description of Articles cee
{List may continue on another CBP Form 80598) Vatue Use Only
1S, 1 hove (We have) commercial merchandise: Se Ne
(articles for sale, sanyples used fur soliciting orders,
or goods that are not considered persunal effects)
1h. Residents — the total value of all goods, including comumrcis!
werchandise Uwe have purchased or acquired abroad, Gnehihay
gifts Jar someone else, fay not tems mailed ta the US) aad am fare
springing to the US. is: $
Visitors ~ the total value of all articles thar will remain in che U.S,
including comercial merchandise i $
Read the instructions on the back of this form. Space is provided to list all che
iteres you must declare. Total
| HAVE READ THE IMPORTANT INFORMATION
ON THE REVERSE SIDE | PAPERS MORK REDUCTION ACT NOTICE Ths Papenatek Reduction Actsaysws oak yonehycwe atenatant theHornig,
‘THIS FORM AND HAVE MADE ATRUTHFUL DECLARATION ee Sater we NR GON Cand whether youshae fo Ye 8 a0 The information collected on hs tear & coasted i cary aulDw Castors:
Agreutnans ant currency hiews oftheLinted States CBS mouires theitormation an ea (emt koneues iatWaelen ee cometang

For Official Use Only

Atanagemsnt andBudget, Paperwork Reduction Pret ORS)OCR) Wastingien DC
RSOS TitsFORMAMAYHOTGEREPRODUCED ¥HTHGUT APPROVAL FROMTHECBPPOMS HAAAGER.
CBP Form 60598 (OG?) GaQ U.S. GOVERNMENT PRINTING OFFICE: 2007-770-0RseeT12 «CBP Form 80598 (10/07)
 Travel Formalities and Regulations 257

APPENDIX 8.5

Arrival and Departure Forms

- “GOVERNMENT OF INDIA | arate ia

ARRIVAL CARD
fRutes § & 16 of Registration of Foreigners Res) AP 7? 062 52 7 6
=| ie mearemtthas
cotton eom pee
Leave a box tdank for space.
: : TCT
serthasrorins
18 esc(as in passport) Leave one box blankaf
after every parofWissoning
|
paamees sea tet

tb. Sex (put ¥ * in box) Se a ee

2 Nationality
neces
Male Female |
3a. Passport Number
Sani ie Sin nia tiie tameat ami etn

| Incredible !ndia Bf ks i te
Fa ent ons e
Asean 3 iS evenisstton | Sorecer!

{ Welcome to India 4 Date of birth (DDAMM/YY) 5. Countries visited in last tars

6
| Important Web Sites
Minmstry af Home Affuars «mfa nics 2 Bureau of lemagration xen unveigrafeanindaa me in . sina ‘ Rrcned
3. Amports Authority of India www airpertsine a 4 Central Board of bxcise & Customs Sate of (DDIMEAYY) 4
www chee gow in S Mimetry of Tourism wiew inoroditleindia ary in, ww faurtem nie i & a 2 [Boe {pps wy) * Egos Number s be pees Boe

IMPORTANT INSTRUCTIONS RUA ES Ae ea be ee ee

|| A. [tis obligatory for disembarking passengers to declare details of plants (plant maternal sn their To be filled in by foreigners anty
i beans om arrival in India
re A ALS | Ta. Visa Number Th. Date of expiry (DO/MM/YY)
1. If you are entering fa on a stadent, Employment, Research, Medical or Missionary VISA, which 1s i 7 i ia Salis is eae oles wT
valid for snore than 180 days, you are requited te register with che Foreigners Registration Officer under — jf 4 3 i
whose jursdiction you propase to stay, This should be done within 14 days of amival in India, irrespecs Hf 8 Purpose af sit (putv ®2pproprite box)
tive of your actual perwd of stay. H : ~~
2. Foreigners visiting india on any other category of Jong term VISA that i valid fir mere then 180 Toute thisioien “Gaps ae eemploytouet FRocation Cocos “Boxee NncicalTantment Higgs “Som —_“Sbeas
days, are not required to register themselves if their acteal stay does not exceed 186 days on cat!
visit Tf wah a foreigner intends w stay in India for more than 180 dave dunny a pertioular visu,
9 Address in india immigration Stamp
he/she should get regestered within 180 days of arival in India,
3. The foliowmg categones of forergn nationals are exempt from regestrahion
(a) Those wsiting India on any short term VISA Le. valid for 180 days ar loss.
ib) Children below if years of age. firrespoctive of arty type of VISA)
ic} Holding VISA for Overseas Citizen of India (OCT)
4 Pukistan nationals are required to register within 24 hours of their arnval in india, Atghanistan
nathionais are reguared to register within 7 days of thei arrival w facia
©. UNFe ION SABDING CUSTOM
ihan Castoms requires you to declare goods in cxcess of the free allowanve, prohibited or revtrwand
goods & corumercial goods at Red Channel counter, Expon or lmpen ot Naroote drags, Wildlife
(fp ee em me ene ee CUS TOMS ee
rr ee ne ee te
and it products and commerctal goods and arms & explosives are prohibited * restneted. Attempt ia
export of umport these goods can lead to penal consequences, inchading arrest i ON ARRIVAL HANO OVER THIS PART OF THE CARD TO THE CUSTOMS
2 Free allowance for waits of Indian ongin is nonnalty Rs.25000:- per passenger, inchwhng two litres OFFICER IN INDIA WHILE LEAVING THE AIRPORT / CHECKPOST
of whisky ( wine and 206 nes cagareties. However, this free allowance & lower for passengers t Name in full
arriving from Nepal, Bhutan, Myanmar and China and for childrea less than 10 year of age One
Laptgs computer unported as baggage is allowed duty tree lor a9 adull passenger. 2 Flagnt No —— = ae rs Pe De.
%_All toursts can import used peronal cflecty «g Laptop, Palmtop Computer, reasonable jewellery. 3 No af checked in baggage is} 4 New. of hand baggage fa)
free of duty if they are to re-export these iterns at the time of departure Tourists of foreign origin
5. Total value of dutatie goods aneUs acnhag! Seas ee, RE AO eR ons
can alse anport duty free gifts and souvenirs worth Ra. 8000)-
4. Passengers should declare foreign currency ws: the currency declaration form if currency raves, bank &. (a) Ane you carrying any planbs/spedsifruitsfowers ‘vegetables! bulbs! other
notes of TC's are in excess of USS 10,0060 or equivatent. In case of currency notes only dese are planting materiais ? Yee/No
be declared if the same are in excess of USS 5,000 or equivalent (b) Are you carrying any meat & meat Products/dairy productsitive or omamental
| 5. In case your baggage is mishandled (lost) on amival, please ensure that you have obtained the | fishipoultryfpeultry products 7 YewNo
i Customs endorsement about the unavailed free allowance, Ip case of any difficulty ar complain,
| please contact the Customs officer on duty at the Baggage Reclaim Area Signature of the passenger Se AR a ee eee
H 6.i For planed intiemanian pines coat stone SNe
258 Tourism Operations and Management

DEPARTURE CARD

DC6 6276286
Ere Tee Ve
DEPARTURE CARD every part of the name/initial
4a. Name as in passport) Leave one box blank after
Rules $ & 16 of Registration of Foreigners Rules

1b. Sex (put” ¥ ‘in box) 2. Nationality

Male Female

3. Date of birth (DD/MMIYY)

4a, Passport Number _ 4b. Date of issue (OD/MMIYY)

Sa. Date of boarding (DD/MMYY) 5b. Flight Number

8c. Port of final destination

6. Occupation (put ¥ in appropriate box)

Shei Lawyer Gowernmant Spurte Person Other

a Za taeuness Emlyn
box)
7. Purpose of visit - for indian nationals only (put ¥ in aporopriate
Incredible !ndia
Busines Trav Ofticist Eregscoprreant Ecearatons
Toners

Contasenvee Sica Medinal Treatnent Pigimage Spent Other

WISH YOU A HAPPY JOURNEY

8. Address in india
important Web Sites

+. Ministry of Home Affairs - mia.nic.in

2. Bureau of Immigration —www immizradionindia.nic.in
3, Airports Authority of India ~ seww.cirportsindia.
org in
Telephones sumber
|
i\ i
. Central Board of Excise & Customs ~- wuow. chee. gov in : i
Minisiry of Tourism - www incredibleindia org.in i }
| '
~ Wi LOUPESIIHC I
! i
 Travel Formalities and Regulations 259

APPENDIX 8.6

Travel Insurance Form

F. No. OMP Proposal (New) w.e.f. 1.11.2003

The New India Assurance Company Limited

Regd. & Head Office : 87, Mahatama Gandhi Road, Fort, Mumbai - 400 001.
Regional Office : Sharda Centre, 2nd Floor, Behind Nal Stop, Karve Road, Pune 411 004.
PROPOSAL FORM FOR OVERSEAS MEDICLAIM POLICY
(Business & Holiday)
(To be submitted in Original with 2 copies)
(Available to persons in the age group of 6 months to 70 years)

IMPORTANT
PLEASE MAKE SURE YOU READ AND FULLY UNDERSTAND THIS DOCUMENT BEFORE YOU TRAVEL FROM THE REPUBLIC OF INDIA

FAILURE TO FOLLOW THE INSTRUCTION GIVEN COULD RESULT IN REJECTION OF ANY CLAIM THAT MIGHT BE MADE
THE OVERSEAS MEDICLAIM POLICY PROVIDES INDEMNITY FOR EXPENSES NECESSARILY INCURRED FOR IMMEDIATE TREATMENT
OF ILLNESS, DISEASES CONTRACTED OR INJURY FIRST SUSTAINED (DURING THE PERIOD OF INSURANCE OF OVERSEAS TRAVEL
SUBJECT TO POLICY TERMS AND CONDITIONS).

POLICY ALSO OFFERS PERSONAL ACCIDENT COVER

UNDER SELECTED PLANS, FOLLOWING ADD ON COVERS ARE OFFERED: -

@ TOTAL LOSS OF CHECKED IN BAGGAGE
@® DELAY OF CHECKED IN BAGGAGE
@ (OSS OF PASSPORT
® PERSONAL LIABILITY
IN THE ABSENCE OF MEDICAL REPORTS AS SPECIFIED IN ITEM 11 (B) SUM INSURED WILL STAND REDUCED TO AN EQUIVALENT
AMOUNT OF US$ 10,000 IN RESPECT OF MEDICAL EXPENSES INCURRED THROUGH ILLNESS OR DISEASE ONLY SUBJECT TO
EXCLUSION OF PRE-EXISTING DISEASE

THE ATTENTION OF THE PROPOSER 1S DRAWN TO ITEM IT (MEDICAL HISTORY) OF THE PROPOSAL FORM ESPECIALLY IN RELATION
JO PREVIOUS TREATMENT FOR ILLNESS OR DISEASE SUCH AS RENAL DISORDERS OR DISEASES, CEREBRAL OR VASCULAR STROKES,
HEART AILMENT OF ANY KIND, MALIGNANCY, TUBERCULOSIS, ENCEPHALITIS, NEUROLOGICAL DISORDERS, GALL BLADDER
DISORDER, ARTHRITIS REQUIRING SURGERY AND IF ANY TREATMENT HAS BEEN RECEIVED FOR ANY OF THE ABOVE DISORDERS
AT ANY TIME IN THE PAST, SUCH TREATMENT MUST BE DISCLOSED TO THE POLICY ISSUING OFFICE
NEITHER THE INSURERS NOR CLAIMS SETTLING AGENTS SHALL BE RESPONSIBLE FOR THE AVAILABILITY, QUALITY OR RESULTS OF
ANY MEDICAL TREATMENT OR THE FAILURE OF THE INSURED TO OBTAIN MEDICAL TREATMENT
THE PROPOSAL FORM SHOULD BE COMPLETED TO THE BEST OF YOUR KNOWLEDGE AND BELIEF, AND ALL MATERIAL FACTS
SHOULD BE DISCLOSED. FAILURE TO DO SO MAY NULLIFY COVER UNDER THE POLICY ISSUED.

NOTE: Plan A- 1 & A- 2 (Worldwide travel excluding USA / Canada)

Plan B- 1 & B - 2 (Worldwide travel including USA / Canada)
Pian E- 1& & - 2 ( Corporate Frequent Travel to all destinations including USA / Canada)
Pian K (For travel to Asian countries - Japan not included)

Madcical Reporis are required

A) Trip is for period over 60 days and if
8) insured person if over 60 yrs of age visiting USA/Canada
b} insured is over 70 yrs of age and visiting countnes other than USA/Canada.
B} Proposal reveals that insured had suffered from / suffering from any illness / disease.

the Proposal Form should be accompanied with 1) ECG printout with report and 2) Fasting blood Sugar and Urine Sugar. Urine Stnp Test Report
or any other medical report required by the company etc. along with the attached questionnaire II (B) to be completed and signed by the Doctor with
minimurn M.D. qualification conducting the test. In the absence of such medical tests and reports due to a shortage of time betore travel, cover may
still be granted subject to a satisfactory proposal form but the sum insured under policy, in respect of expenses incurred for the treatment of illness
or disease shall be restricted to US $ 10,000 only, which shall not cover the cost of Medical treatment for pre-eusting disease. In case of accident
however the full sum insured benefit would be available.

Ganesh - $0 gets x S00 Pads -O NO 406 - 04/2006

260 Tourism Operations and Management

I. GENERAL INFORMATION
1. NAME OF THE PROPOSER : MR. / MRS. / MISS, / MASTER
(IN BLOCK LETTERS) AS STATED IN THE PASSPORT.
2 HOME ADDRESS & TELEPHONE NO.
3 PROPOSER’S ACTUAL OCCUPATION
(Specify)
4 OFFICE ADDRESS
TELEPHONE NO/FAX NO/E-MAIL ADDRESS
AGE (IN COMPLETED YEARS) : DATE OF BIRTH

PASSPORT NO.
DATE OF EXPIRY &
NAME OF PASSPORT ISSUING AUTHORITY
8 PLAN OPTED FOR ey | A-2 B-1 B-2 E-1 E-2 K

a Ee
ees

hg Spgasaan Gees
(Please tick relevant plan)
ees 0ERE feGRO LG
(BUSINESS / HOLIDAY TRAVEL)

10. PROPOSED DATE OF DEPARTURE FROM ‘ DAY MONTH YEAR

REPUBLIC OF INDIA i.e. FIRST DAY OF INSURANCE
11. INSURANCE REQUIRED FOR
(Number of days)
NB. }. In case of any extension of stay abroad, requiring extension of policy period, approval of issuing office has to be obtained & appropriate
premium paid before expiry of policy. Request for such extension should be supported with a declaration of good health
2. In case of early return partial refund of premium will be permitted if the original cover is for minimum period of 60 days and unexpired
penod is not less than 14 days and also if no claim is lodged under the policy.
12. COUNTRIES TO BE VISITED
(State approximate number of days at each place)
13. NAME, REGISTRATION NO., ADDRESS &
TELEPHONE NO. OF FAMILY PHYSICIAN
11. MEDICAL HISTORY.
(A) TO BE COMPLETED BY THE PROPOSER
PLEASE ANSWER THE FOLLOWING QUESTIONS WITH ‘YES’ OR ‘NO’ (A DASH IS NOT SUFFICIENT) AND GIVE FULL DETAILS -
1 Are you in good health and free from Physical and mental disease or infirmity.
2 Have you ever suffered from any illness or disease upto the date of making this proposal.
3 Do you have any physical defect or deformity.
4 Have you ever bean admitted to any hospital/nursing
home/clinic for treatment or observation.”

5 Have you suffered from any iliness / disease or had ar accident

in the 12 months preceding the first day of insurance.
6 lf the answer is ‘yes’ to any of the foregoing questions please give full details as under :

Date on which first

treatment taken
 Travel Formalities and Regulations 261
3
rf a) Have you any intention of engaging in professional sports?
b) If so, give details. cea tanatiiasnle eicuoceae

8. Please give details of any knowledge of any positive existence of any ailment, sickness or injury which may require medical
attention whist on tour abroad.

| HEREBY DECLARE THAT

| i will not be travelling against the advice of a physician
2 lam not on the waiting list of any medical treatment.
3. | will not be travelling for the purpose of obtaining medical treatment.
4. | have not received a terminal prognosis for a medical condition before this day.

Assignment:
San eee RO 2 Sn a he a Hntutim_iw, do hereby assign the monies payable under the
phason pplope eisaaiuSat hsia aE tase ei otmuimummnnwinaiom Policy inthe event of my death to my
Pars saa aol ei em ee oePee: a eS Tn feek me (relation te the msured

BVSE Eee 7 DUS. FRU a nnn PR carats ios en cineeaanaiieee | AUTIOT aCe natrns:, her rmcelnt
shall be sufficient discharge to the company.
| further deciare that and warrant that the above statements are true and complete. | consent to the insurens seeking medical information
from any doctor who has at any time attended concerning anything which affects my physical or mental health, and | authonze the giving
of such information to Cons Intemational and / or their programme medical advisers. | agree that this praposal shall form the basis of the
contract should the insurance be effected.
lam willing to accept the policy, subject to the terms, exceptions and conditions prescribed therein.

Signature of Proposer Caer oe.

Day Month Yoar

Piace

B) TO BE COMPLETED BY THE DOCTOR [To be completed by M. D. only]

1 a) History
b) Any past history of disease, operation, accidents, investigation etc.
c) General Examination.
d) Systemic Examination.
2. Electrocardiography
a) Does the attached Electrocardiogram in your professional opinion show
any abnormalities if so, please describe ©
b) Does the abnormality represent a current illness or disease which
may possibly require medical treatment during proposer's forthcoming trip?

¢) Does the Proposer now or did he/she in the past, require medication for this abnormality?

d) Please describe any treatment taken by Proposer in the past or being taken at present

8) Do you recommend Stress Test? If so please obtain the report on such test

3. Does the Blood / Urine Strip Test show any sugar ?

4 Do you consider that Proposer is fit to travel anywhere abroad, due account being taken of the stress of ai travel adversely affecting
his health/medical condition?
Signature of the Doctor
Name of the Doctor
Qualification
Address

Telephone No
 Airline Geography

Learning Objectives
After reading this chapter you should be able to:
understand the meaning and importance of airline geography
know the various city and airport codes
understand different time zones in the world
appreciate the role of IATA in airline traffic facilitation
know the various abbreviations used in the travel industry
identify the currencies of various countries

INTRODUCTION
\he advancement in technology has resulted in many
developments, one of them being the development of transport.
Like the other modes of transport, air transport too developed
after the Industrial Revolution. Travel has become swifter and now people
can travel thousands of kilometres and reach far-off destinations on the
other side of the globe on the same day.
Travel for leisure or business is popular and tourists visit various
places all over the world. The mode of transportation they select varies
according to the availability and need, but for a long distance journey
the preferred mode is always air transport.
 Airline Geography 263

Tourists prefer to travel by air for the following reasons:

¢ they have disposable income;
¢ itis the fastest mode of transport;
¢ they need to travel at short notice for business-related work; and
¢ air travel has become affordable with the introduction of low cost
carriers.
Planning an air travel itinerary requires an understanding of world
geography, the continents and oceans, world time zones, knowledge of
airlines which ply on different routes, their codes and countries, cities,
airports and their codes.
Airline geography covers the study of world, which is served by various
airlines. It is the study of various tourist destinations around the globe
which are linked by air, their routes, airports, airlines, city, and country
codes. All places in the world are not tourist destinations. We have already
read in Chapter | that a destination is a location that a traveller chooses
to visit because it has various factors such as accessibility, attractions,
activities, etc. which appeal to the traveller.
This chapter introduces the reader to the three [ATA Traffic Conference
areas of the world. It covers the various countries and cities which are
linked by air, their codes, major international and domestic airports and
their codes and airlines which ply on these routes. Tourism professionals
need to know world geography and airline geography to enable them to
plan itineraries. They need to know the location of the destination, which
Traffic Conference (TC) area the city is located in, the connecting points,
so that they can avoid unnecessary backtracking and choose the shortest
route to save both time and money.
Airline geography is based on international standards, which need to
be followed worldwide. These standards are set by IATA and have been
created by International Standards Organization (ISO), based in Geneva,
Switzerland. Codes for countries, cities, airlines, and airports have been
created to simplify the procedures for selling and booking travel
arrangements. These codes are universally accepted and are used in the
travel industry.

PHYSICAL GEOGRAPHY
Before we study airline geography, let us revise some basic concepts
related to geography so that we understand major airline routes, world
time zones, and time differences better. Physical geography refers to the
264 Tourism Operations and Management

world’s natural terrains or features. Land masses and water bodies are
important in dictating the variety of the tourist product which can be
offered at the destination. The major land masses or continents cover 29
per cent of the earth’s surface. The seven continents are Europe, Asia,
Africa, North America, South America, Australia, and Antarctica. The
subcontinents are Central America, Australasia and the Pacific Islands,
and the Middle East.
The four major oceans which cover 71 per cent of the earth’s surface
are the Pacific Ocean, Atlantic Ocean, Indian Ocean, and Arctic Ocean.
The Pacific Ocean is the largest ocean.
Locating continents, countries, major tourist cities, and various water
bodies on a map is a prerequisite to the study of travel and tourism.
A strong link exists between tourism and geography as the natural
attractions and uniqueness of a destination is very often related to its
geographic locations.
Geography is study of the earth and the factors that make the earth
unique as well as the changes on the earth’s surface brought about by the
movement ofpeople. Tourists need to travel to different destinations and
geography has helped to simplify the process of measuring and indicating
locations on the earth. A simple way to locate a place on the map is by
using the imaginary lines of latitude and longitude.
The parallel lines which extend east to west on both sides of the equator
are the latitude. The latitude tells us how far north or south of the equator,
a given place is located. It is measured from the equator to the pole, the
equator being zero degrees and the pole being 90 degrees.
The equator divides the world into two hemispheres.
1. The northern hemisphere or north latitude
2. The southern hemisphere or south latitude

Vertical lines called meridians, extending from the North Pole to the
South Pole, intersect the parallels of latitude. They measure longitude
and are not parallel to each other as they converge at the two poles.
One meridian is taken as the point of reference and is called the Prime
Meridian. The Prime Meridian runs through Greenwich, London.
The equator divides the world into two hemispheres—northern and
southern, while the Prime Meridian divides the world into eastern and
western divisions.
To understand world time zones, standard clock time, and the
International Date Line, it is essential that all tourism professionals should
 Airline Geography 265

be familiar with the basic concepts of geography as well as the major

countries on the world map, before they begin reading this chapter.
They should refer to the Oxford Student Atlas for India 2004, page 5
and page 109 to clarify concepts if necessary.

WORLD TIME ZONES

The earth rotates on its axis from west to east and takes one complete
day or 24 hours to complete the rotation. While half of the earth is lit by
the rays of the sun and has daytime, the other half is plunged into darkness
and experiences night.
Our conventional clock has 12 one hourly markings on it to which we
add a.m. or p.m. to denote day or night. We tell the time using this clock.
However, while preparing travel itineraries, this method is confusing
and misleading because when it is daytime in one part of the globe, it
may be nighttime in another area.
To remove confusion over a.m. and p.m. and to simplify the process
of calculating elapsed travel times, the travel industry uses the 24-hour
time clock.
In the 24-hour clock, each day begins at 00:00 hours, i.e. at midnight
and progresses through each hour of the day from 01:00 hours or 01:00
am to 23:00 hours or 11:00 p.m.
The decision to create standardized time zones dividing the world
into 24 time zones was taken in 1884 by the major nations of the world.
Imagine the planet earth as an orange, which has 24 equal sized
segments. Each of the 24 vertical lines formed by the segments are the
meridians or lines of longitude and each segment represents a time zone
of one hour out of 24 hours measuring fifteen degrees. Since the earth is
circular it has 360° of longitude (15° x 24 hours = 360°). When we travel
from one zone to another, we have moved by one hour.
The world is now divided into 24 time zones, which begin with the
Prime Meridian that we have read about earlier in this chapter, which
is an imaginary line which passes through Greenwich, England and
connects the North and South poles. The time at Greenwich and all
other countries in this zone is called the Greenwich Mean Time (GMT)
or the Universal Time Coordinated (UTC). The Greenwich Meridian or
the Prime Meridian marks the starting point of every time zone in the
world. The Prime Meridian is a fixed point and considered as zero (0°)
degree. The time in other zones can be expressed by referring to the
Man
266 Tourism Operations andagement
| West GMT East
| ats Gs) aa) oa) asl
-12 -11 -10 -9 =Q=7 “my py ey al aay NG) taf

Hours 1200

Fig. 9.1 Greenwich Mean Time

Greenwich Mean Time (GMT). The signs + (for plus) and - (for minus)
are used (see Fig. 9.1) as follows:
GMT + 3 =3 hours ahead of GMT
GMT - 3 =3 hours behind GMT
These signs can be used for up to +12 or -12 hours.

The Scale of Hours

If we take a look at the time zones of the world and look at the map of
India, we find that Mumbai is GMT +5 while Kolkata is GMT +6. This
system needs to be adapted so that the local time is the same within
national boundaries or groups of islands and India has adopted a uniform
time zone of +5.30. The Standard Clock Time or Standard Time in India
or Indian Standard Time (IST) is fixed and is the same whether you are
in Gujarat or in the northeastern town of Shillong.

Daylight Saving Time

In some countries the Standard Time is modified during summer and is
an hour or a fraction of an hour earlier. This is called daylight saving
time (DST). For example, the standard clock time in New Zealand is +12
and DST is +13, sometime during the period October to March, which is
summer time in New Zealand. The DST date may vary from year to
year.
Time charts are published in all major airline guides. The complete
Official Airline Guide (OAG) International Time Calculator lists the
standard time in relation to GMT and DST in countries where it is
applicable together with the specific period of the year.
If we know the date and time in one country, we can easily calculate
what the date and time will be in another country at that moment.
 Airline Geography 267

Example 9.1
Using the scale of hours, one can find out what the local time in New Delhi,
India is, when it is 12:00 hours GMT.
In India the standard time is GMT +5.30 all year round. This means that the
local time is 5 4 hours ahead of GMT. The local time in New Delhi is 17:30 hours
when GMT is 12:00 hours.
GMT is necessary to calculate the time duration of a flight and to know the
date and local time of departure of a flight and date and time of arrival. The
GMT tells us the time difference between two cities.

Example 9.2
One can calculate the flying time for a British Airways flight from Mumbai to
London from the particulars given below.

Date Place Local GMT GMT Time Flying

Time and Date Time
01.05.2008 Mumbai Departure 01:00 +5.30
01.05.2008 London Arrival 07:00 +1

Local time of different countries in different time zones, needs to be converted

to a common time. The GMT time and date for both countries needs to be
calculated.
In Mumbai the local time is 5.30 hours ahead of the GMT. This means that
the GMT time is 5.30 hours behind the local time at Mumbai. GMT time at
Mumbai would be 01:00 minus 05.30 which is equal to 19.30 hours of the
previous day, i.e. 30.04.2008.
GMT time at London would be one hour before the local time, i.e. 07:00
minus 01:00 which is equal to 06:00 hours on the same date.
Flying time is the time between 19:30 on 30.04.2008 and 06:00 on
01.05.2008.
The flying time between Mumbai and London is 10 hours 30 minutes.

Date Place Local GMT GMTTime Flying

Time and Date Time
01.05.2008 Mumbai 01:00 +5.30 19:30 hours,
(Departure) date 30.04.2008
01.05.2008 London (Arrival) 07:00 +1 06:00 hours, 10 hours
date 01.05.08 30 minutes
268 Tourism Operations and Management

Multi-time Zone Countries

These countries have different time zones within the country, inspite of
having the same national boundary. For example, USA has five time
zones ranging from —5 at Indiana to —10 at Alaska, and in Australia the
time zones range from +8 in Western Australia to +10.30 at Lord Howe
Island.

INTERNATIONAL DATE LINE

World time is calculated in relation to the longitudinal location of a place.
While the Prime Meridian passes through Greenwich, another meridian,
which is located 180 degrees east of Greenwich or 180 degrees west of
Greenwich, both being the same meridian is of importance. This meridian
marks the change of day and is referred to as the International Date Line
(see Fig. 9.2).
The International Date Line is an imaginary line running from North
Pole to South Pole through the Pacific Ocean, with the date differing in
the east and west, the east of the line being one day earlier. For example,
if it is the 15 July in the USA, it will be 16 July in India.
Because of the International Date Line, if it is Sunday in San Francisco,
California, it would be Monday in Sydney, Australia. Similarly if a tourist
from India takes a flight to Texas, USA on 19 June 2008 early in the
morning and the flight duration with halts is approximately 21 hours,
he/she still reaches USA on 19 June around lunch time, saving nearly
one day, because of the International Date Line.
Travellers may either gain a day or lose a day when they cross the
International Date line. This is of particular importance to the business
traveller who usually needs to arrive on a working day during normal
working hours. Passengers, who travel long distance by air, often complain
of jet lag because of the change in time zones. Often a full night’s sleep is
lost, because there is no nighttime, only daylight for over 24 hours.

The earth rotates from west to east

West
International
Today/tomorrow Date'line Yesterday/today East
| GMT GMT

+1 42 +3 +4 #45 +6 +7 «+8 «+9 «+410 +11 +12

Fig. 9.2 International Date Line

 Airline Geography 269

After the journey, travellers may feel tired and drowsy during the day
because their body clock is telling them it is midnight and time to get
some rest, while the sun may be shining outside.
When travellers take long flights and cross multiple time zones in a
short time span, they often experience tiredness, drowsiness, and fatigue.
This feeling is called jet lag and occurs because the traveller’s internal
body clock is not sure whether it is day or night. Travellers may take a
couple of days to return to normalcy.
While planning itineraries and specially while booking airline tickets,
tourism professionals should know the following:
¢ The GMT should be used while calculating the time difference
between two cities and that the International Date Line cannot be
crossed while making calculations.
e The arrival and departure time mentioned in airline timetables is
always the local time of that destination.
e Airline schedules are always published in the local time with the
time variation from GMT of each city clearly specified.
e The complete OAG International Time Calculator lists all countries,
its standard time in relation to GMT, DST if applicable as well as
DST period.
¢ The elapsed travel time or the transport time is the total travelling
time and covers the exact time in hours and minutes from the time of
departure at the airport of origin, the transit time if any, till the time
of arrival at the airport of the final destination.

Example 9.3
Air India Limited has introduced non-stop flights from Mumbai to New York. Let
us study the airline timetable in terms of the International Date Line.
Air India Limited—Aircraft Boeing 777-200 LR (long range) Non-stop flight
from Mumbai to New York City, John F. Kennedy Airport

Flight AI 141 BOM - NYC(JFK)

Departure - Mumbai (BOM) 00:45 15 June 2008
Arrival - New York (JFK) 07:10 15 June 2008

The time difference between India and New York is 9:30 hours.
When it is 07:10 hours in New York it is 16:40 hours in India.
Transport time or elapsed travel time is 15:55 hours.
270 Tourism Operations and Management

On the return journey, the flying time or the transport time is shorter as
flying time depends on wind speed and route. Going westwards takes longer
time than going eastwards.

Flight AI 140 NYC (JFK) - BOM

Departure - New York (JFK) 21:30 16 June 2008
Arrival - Mumbai (BOM) 22S 17 June 2008

Transport time in this case is shorter because of wind speed and is 15:15
hours. But if you look at the dates you will see that the person has been
travelling for more than 24 hours and has lost a day in travelling, while in
the flight to New York a day is gained.

Although each airline has its own timetables and information booklets,
travel agents prefer to use a single international guide which includes the
flight schedules of all airlines. The OAG World Airways Guide comes in
two volumes and is simpler to refer to as compared to referring to the
vast number of individual airlines timetables. It has a wide coverage and
is easily available.

TATA AREAS OF THE WORLD

IATA, as we have already studied in Chapter 6, is an organization, which

works for the airlines and its major role is in traffic facilitation. It helps
airlines in making interline arrangements, standardizes different forms
and procedures and passenger, baggage and cargo handling agreements,
reservation codes, and other related matters. All procedures are computer-
ized. This makes the exchange of traffic between various airlines easier
and faster. It helps member airlines in negotiating fares.
IATA has divided the world into three areas or Traffic Conferences
for the process of establishing fares and tariff related rules. Airlines which
operate in and out of these areas or via these areas belong to that
conference. The Traffic Conferences or Areas are as follows:
TC 1—North America, Central America, Caribbean Area, and South
America
TC 2—Europe, Africa, and Middle East—including Iran
TC 3—Asia, Australia, and South Pacific islands
IATA’s Traffic Conferences or Areas are not necessarily the same as
continents. For the purpose of fare construction, countries located in one
 Airline Geography 271

continent may be classified in another area. For example, Asia is included

in TC 3 but Iran is included in TC 2.

Major Airline Routes

Airline routes depend on the airline, the direction of travel, and the
network of airlines with their hubs. Normally airlines touch their hub
(country to which the airline belongs) before proceeding to the destination.
For example, Air France has its hub in Paris and British Airways has its
hub in London. A British Airways flight from Mumbai to New York will
fly via London.
Some airlines have more than one hub, for example, Delta Airlines
has a hub in Atlanta, New York, and Salt Lake City while United Airlines
have hubs in Chicago and Washington.
Air fares depend on many factors such as the route of the airline, the
volume of traffic and the demand, the class of travel and the type of fare
which is denoted by an alphabet. An economy or Y fare from Los Angeles
to Singapore via the Pacific Ocean would be lower than the fare paid for
travel if the plane flies via the Atlantic Ocean. Airlines operate on a
number of different routes. For example, airlines may fly transiting the
Atlantic Ocean (Trans Atlantic), transiting the Pacific Ocean (Trans Pacific),
crossing both the Atlantic and Pacific Ocean or Round The World (RTW),
in the Western Hemisphere (WH) or in the Eastern Hemisphere (EH).
The flight route is represented by Global Indicators which are related to
the traffic conference numbers. Global Indicators indicate the direction
of travel on the globe. For example, Global Indicator WH refers to flight
routes in area TC 1 which is in the WH, Global Indicator EH refers to
flight routes in area TC 2 and TC 3 which is in the Eastern Hemisphere
(EH). Other Global Indicators are SA via South Atlantic, AP via Atlantic
and Pacific Oceans, TS or Trans Siberian etc. To understand airline routes
and global indicators, knowing world geography is essential.

Some examples of Global Indicators

¢ A flight from Chicago to Buenos Aires via Panama City by United
Airlines would be flying within area TC 1 or the Western Hemisphere
and the Global Indicator (GI) would be WH.
e TCland TC 2 or travel between area | and 2 via Atlantic Ocean, for
example, a British Airways flight from Mumbai to Los Angeles via
London would be represented by GI: AT.
272 Tourism Operations and Management

for
© TC3and TC 1 or travel between area 3 and | via Pacific Ocean,
example, a Singapore Airlines flight from Mumbai to Los Angeles
via Singapore transiting the Pacific Ocean would have a GI: PA.

CODES IN TOURISM
While preparing travel itineraries and booking tickets, tourism
professionals need to be familiar with not only the TC areas of the world,
the location of destinations and local time calculation, but also need
information about city, airport, and currency codes. Each city having an
airport is given a three letter ISO code. These codes are universal codes
and are followed for airfare calculation, booking tickets, in itinerary
planning, etc. For example, DEL is the city code for New Delhi and
ORD is the airport code for Chicago-O’Hare Airport (see Table 9.1).
In case a city has more than one airport, each airport is referred to by
a different code. These codes are also used on luggage tags and helps
baggage handlers at the airport to load the luggage on to the correct
flight.
Three-letter city and airport codes used in airlines industry are given
in Appendix 9.1. City codes, airport names and codes of India are given
in Appendix 9.2. The capital city is marked with an asterisk. The city
with more than one airport has more than one code. Some examples of
city and airport codes are listed in Table 9.1.
Table 9.1 Some city and airport codes

Country City City Airport Airport

Code Name Code
France Paris* PAR Charles de Gaulle CDG ti
Orly ORY
Germany Berlin* BER Tegel TXL
Tempelhof THF
Schoenenfeld SXF
Italy Rome* ROM Leonardo Da Vinci FCO
(Fiumicino)
Milan MIL Linate LIN
Malpensa MXP
Naples NAP
Venice VCE
United London* LON Heathrow LHR
Kingdom Gatwick LGW
Contd
 Airline Geography 273

Table 9.1 Contd

ae
Country City City Airport Airport
Code Name Code
Edinburgh EDI
China Beijing BJS Beijing Capital PEK
Shanghai SHA
Hong Kong HKG
(SAR)
Guangzhou CAN
India Delhi DEL Indira Gandhi
International
Mumbai BOM CSM
International
Japan Tokyo TYO Narita NRT
Haneda HND
Osaka OSA
Singapore Singapore SIN Changi
Turkey Ankara ANK Esenboga ESB
USA New York NYC John F Kennedy JFK
La Guardia LGA
Newark EWR
Chicago CHI O'Hare ORD
Washington WAS Dulles IAD
DC International
R. Reagan DCA
National

Airline Codes
Like the city codes and airport codes, every airline in the world has a
unique identifying code. The IATA has assigned two-character alpha
codes. These codes are also called the carrier code.
These codes are standard codes and are recognized throughout the
aviation and related industries. For example, the code for Air India Ltd
is AI and the code for Continental Airlines is CO. The list of airlines and
their codes are given in Appendix 9.3.

Country Codes
Every country in the world has been given a two character code by IATA.
These codes are standard and are recognized throughout the world. Some
examples are given below (see Table 9.2). The remaining codes are given
in Appendix 9.3.
274 Tourism Operations and Management

Table 9.2 Some country codes

Country Country codes

Afghanistan AF
Canada CA
Denmark DK
India IN
Malaysia MY
Thailand TH |

Table 9.3 Currency codes of a few countries

Country Currency Code Symbol

Australia Australian Dollar AUD $

Austria European Euro EUR c
Bahamas Bahamian Dollar BSD B$
Hong Kong Hong Kong Dollar HKD HK$
Hungary Hungarian Forint HUF Ft
Iceland Icelandic Krona ISK kr
India Indian Rupee INR Rs
Indonesia Indonesian Rupiah IDR Rp
Thailand Thai Baht THB
Turkey Turkish New Lira TRY YTL
UAE UAE Dirham AED
UK British Pound GBP fe
Ee USA US Dollar USD US$

Currency Codes
The form of currency used in different countries of the world varies and
travel professionals need to know the local currency used at different
destinations as well as its exchange rate. The exchange rate varies from
day to day. Each country has a currency code which is based on its country
code and the first digit of its currency. For example, the country code for
India is IN and the first digit of its currency the Rupee is R, so its currency
code is INR (see Table 9.3). The remaining currencies and their codes
are given in Appendix 9.5. The USD is the most easily exchangeable
currency. All countries in the European Union with the exception of
three, use the euro as their sole currency, so as to simplify business
transactions not only in Europe, but also outside.
Currency codes simplify the process of identifying currencies from
different countries.
 Airline Geography 275

Important Abbreviations
Many short forms or abbreviations are used by airlines on the ticket, in
their timetables and on Miscellaneous Charges Order (MCO), etc. Travel
professionals should be familiar with these abbreviations. Some of the
commonly used abbreviations are listed in Table 9.4.
For smooth operations of air traffic worldwide, certain international
standards need to be followed. The codes created for countries, cities,
airports, airlines, currency, etc. which we have just read are universally
accepted and used. Knowledge of airline geography will help tourism
professionals to locate destinations, select connecting points, choose
shortest routes, understand world time zones and International Date Line,
and understand codes, all of which are essential while planning itineraries.

Table 9.4 Some important abbreviations

Abbreviation Expanded form Abbreviation Expanded form

ACK Acknowledge AGT Agent
ALTL Alternative BRD Boarding
BSP Billing and settlement plan CHD Child
CHTR Charter CRS Computerized reservation system
DEP Departure DGT Digit
EMA Extra mileage allowance EMS Excess mileage surcharge
ETA Estimated time of arrival ETD Estimated time of departure
EQP Equipment (type of aircraft) FIT Free independent traveller
FLT Flight FM From (departure city)
END Endorsement FRQ Frequency (days of operation)
GIT Group inclusive tour GSA General sales agent
INTL International ISD Issued
MCO Miscellaneous charges order MPM Maximum permitted mileage
NUC Neutral unit of construction OAG Official airline guide
OW One way PNR Passenger name record
PTA Prepaid ticket advice RES Reservation
RFD Refund RER Re-routable
REP Representative RR Reconfirmed
SKED Schedule ST Stops (number of stops)
TIM Travel information manual TKT Ticket
TO To (arrival city) TRS Travel-related services
VLD Valid XX Cancel request
276 Tourism Operations and Management

SUMMARY
A knowledge of world geography is essential to locate destinations around the
globe and to plan travel itineraries. Airline geography is very important in
tourism, especially for the purpose of traffic facilitation and fare construction.
IATA has divided the world into three Traffic Conference areas.
IATA codes are an integral part of the travel industry, and essential for the
identification of an airline or a logistics company, its destinations and its traffic
documents. Every airline in the world has a unique two digit identifying code
assigned by IATA also called carrier code. These codes are standard and recognized
throughout the aviation and related industries.
irline codes are required for passengers, baggage and cargo, for export
declarations, departure reports, impending arrival reports, etc. Apart from the
airline codes, country codes, city and airport codes, currency codes, other common
terms and their abbreviations should also be known.

KEY TERMS
Daylight saving time A particular time of the year in some regions of the
world when clocks are set forward by one-two hours to extend daylight into
evening hours.
Elapsed travel time Actual time spent travelling from one destination to another.
Also called transport time.
Greenwich mean time (GMT) The time at Greenwich, London which is used as
a reference to calculate time anywhere in the world.
International Date Line An imaginary line or meridian that runs through the
Pacific Ocean and is both 12 hours ahead of and 12 hours behind GMT and
marks the change of day.
Official Airlines Guide (OAG) A guide which lists the schedule of many different
carriers showing connections of up to three segments. It also contains
information on carriers, baggage allowance, excess baggage charges, fares
and taxes.
Prime Meridian It is the imaginary line that connects the North and South Pole
and runs through Greenwich, London. The Prime Meridian is taken as
the
reference line for calculating time zones.
Universal Time Coordinated (UTC) Another term used in place of GMT.
Segment Segment is a portion or section of an itinerary and includes
travel
from one point to another. Itineraries have air segment, surface
segment,
outbound segment, and return segment.
Timetable Flight schedules which are Specific for a carrier
and which each
carrier publishes on its own.
 Airline Geography 277

CONCEPT REVIEW QUESTIONS

List the continents in the world.
What do you understand by the terms longitude and latitude?
Explain the concept of ‘Prime Meridian’ and ‘International Date Line’.
What is a multi-zone country? Name any three multi-zone countries?
KR
mm
Pe
WP What is the three-letter code for the John F. Kennedy Airport located in
New York City?
(a) ORD (b) LGA (c) JFK (d) NYC
6. What is the three-letter code for the Heathrow airport in London?
(a) LHR (b) EDI (c) LGW
7. What is the three-letter code of the airport Narita in Tokyo?
(a) OSA (b) NRT (c) HND
8. What is the three-letter code for the following cities?
(a) Singapore (b) Pretoria (c) Cairo (d) Amsterdam
(e) Brasilia (f) Canberra (g) Nice
9. Give the country codes for the following countries:
(a) New Zealand (b) Japan (c) Thailand (d) the UK
(e) South Africa
10. Give the carrier codes for the following Airlines:
(a) Alitalia (b) Air Canada (c) Mexicana (d) Egyptair
(e) Air India Limited

REFERENCES
Foster, L.D. 1994, First Class: An Introduction to Travel And Tounsm, McGraw-
Hill Book Co, Singapore.
IATA, Foundation, January 2004, International Travel and Tourism Training
Programme, Montreal.
IATA, 2007, International Travel and Toursm Training Programme. Training text
book. M1.12. Airfares and Ticketing 1.5.8 Edition, Montreal.
IGNOU, TS-3, 1999, Management In Tourism, Block-6. IGNOU School of Health
Sciences, New Delhi.
Lloyd E. Hudman and Richard H. Jackson, 1999, Geography of Travel & Tourism,
Third Edition, Delmar Publishers, USA.
Oxford Student Atlas for India, 2004, Oxford University Press, New Delhi.
http//www. asiaroom.com, accessed on 01 December 2008
http://en.wikipedia.org/wiki/Category:Airports_in_Karnataka
278 Tourism Operations and Management

http://en.wikipedia.org/wiki/Bagdogra_Air_Force_Base
http://en.wikipedia.org/wiki/Rudra_Mata_Airport
http:aai.aero/allAirports/dimapur_general_info.jsp
http:aai.aero/allAirports/agartala_generalinfo.jsp
www. airlinecodes.co.uk, accessed on 01 December 2008.
www. hotelstravel.com, accessed on 01 December 2008.
www. iata_codes.htm, accessed on 01 December 2008
www. onebag.com, accessed on 01 December 2008
www. indianairlines.in, accessed on 01 December 2008
www.bharatonline.com/uttar-pradesh/travel-tips/up-airports.html
www.bharatonline.com/andhra-pradesh/travel-tips/airports.html
www.bharatonline.com/gujarat/travel-tips/airports.html
www.bharatonline.com/maharashtra/travel-tips/airports.html
www.ourairports.com/countries/IN/MM/airports.html
www.iloveindia.com/indian-airports/guwahati-airport.html
www.flights. headlinesindia.com/rajasthan.html
www.mapsofindia.com/ludhiana/airport.html
 Airline Geography 279

APPENDIX 9.1

City Codes, Airport Names and Codes of Different Countries

Note: Some cities have more than one airport, hence more than one code. If no
airport name is mentioned, it means that the city and airport name are the
same, and they have the same code.

Country City Airport name City code/ Airport Airport

Airport code name code

Europe

Albania Tirana Rinas Mother Teresa TIA

Armenia Yerevsan Zvartnots EVN
Azerbaijan Baku BAK
Austria Vienna Schwechat International VIE
Belarus Minsk Minsk International MSQ
Belgium Brussels Brussels International BRU
Bosnia Sarajevo Sarajevo SJJ
Bulgaria Sofia Sofia SOF
Croatia Zagreb Pleso ZAG
Cyprus Nicosia* Nicosia Intl. NIC
Larnaca Larnaca LCA
Czech Rep Prague Ruzyne International PRG
Denmark Copenhagen Kastrup CPH
Estonia Tallinn Ulemiste TEL
Finland Helsinki HEL
France Paris PAR Charles de Gaulle CDG
Orly ORY
Marseille Marseille Provence MRS
Bordeaux Méngnac BOD
Nice Cote D’azur Intl. NCE
Lyon Bron LYN
Germany Berlin Berlin Metropolitan Area BER Tegel TXL
Tempelhof Wally
Schoenenfeld SXF
Frankfurt Frankfurt Intl. FRA
Hamburg HAM
Dusseldorf Diisseldorf Intl. DUS
Munich Franz-Josef-Strauss MUC
Cologne Cologne/Bonn CGN

Contd
280 eee
N
Se
Tourism ee
Operations
eee ON and
A Management
UL ie S SS

Appendix 9.1 Contd

Country City Airport name City code/ Airport Airport

Airport code hame code

Bonn BNG
Stuttgart Stuttgart Echterdingen STR
Greece Athens Eleftherios Venizelos ATH
Hungary Budapest Ferihegy BUD
Iceland Reykjavik Keflavik RKV Keflavik KEF
Ireland Dublin Dublin Airport DUB
Italy Rome* ROM Leonardo Da Vinci FCO
(Fiumicio)
Milan MIL Linate LIN
Malpensa MXP
Naples NAP
Venice Marco Polo VCE
Latvia Riga Riga Intl. RIX
Lithuania Vilnius Vilnius VNO
Luxembourg Luxembourg Findel LUX
Moldova Kishinev Kishinev KIV
Maita Valletta MLA
Netherlands Amsterdam* Schiphol AMS
Rotterdam Rotterdam Zestienhoven RTM
Bergen BGO
Norway Oslo Oslo OSL
Poland Warsaw Frederic Chopin WAW
Portugal Lisbon Portela LIS
Porto Francisco Sa Carneiro OPO
Funchal Madeira FNC
Romania Bucharest* BUH Otopeni OTP
Russian Moscow* MOW Sheremetyevo SVO
Federation St Petersburg LED
(West of the Urals)
Spain Madrid* MAD
Barcelona EL Prat De Llobregat BCN
Laspalmas LPA
Sweden Stockholm STO
Gottenburg Landvetter GOT Arlanda ARN
Switzerland Berne* Belp BRN
Zurich Zurich intl. ZRH
Geneva Geneva airport GVA
Turkey Istanbul IST
Ankara ANK

Contd
 Airline Geography 281

Appendix 9.1 Contd

Airport name City code/ Airport Airport

Airport code name code
UK London* LON Heathrow LHR
Gatwick LGW
Edinburgh Edinburgh airport EDI
Ukraine Kiev IVE
Yugoslavia Belarus BEG

Africa

Algeria Algiers ALG

Angola Luanda LAD
Botswana Gaberone Gaberone-Seretse Khama GBE
Cameroon Yaounde YAO
Douala DLA
Congo Brazzaville Brazzaville Maya-Maya BZV
Cote d’lvoire Yamoussoukro ASK
Abidjan ABJ
Djibouti Djibouti JIB
Egypt Cairo Cairo Intl. CAI
Ethiopia Addis Ababa ADD
Gabon Libreville Leon M’Ba Intl. LBV
Ghana Accra ACC
Kenya Nairobi NBO
Mombasa MBA
Liberia Monrovia MLW
Libya Tripoli TIP
Mauritius Port Louis Sir Seewoosagur MRU
Ramgoolam Intl.
Morocco Rabat RBA
Casablanca CAS
Mozambique Maputo Maputo Intl. MPM
Namibia Windhoek Hosea Kutako Intl. WDH
Nigeria Abuja ABV
Lagos LOS
Rwanda Kigali KGL
Senegal Dakar DKR
Seychelles Victoria Seychelles Intl. SEZ
Sierra Leone Freetown FNA
South Africa Pretoria PRY
Cape Town Cape Town Intl. CEL
Johannesburg Johannesburg/Tambo Intl. JNB
Contd
282 Tourism Operations and Management

Appendix 9.1 Contd

Country City Airport name City code/ Airport Airport

Airport code name code

Sudan Khartoum KRT

Tanzania Dodoma DOD
Dar es Salaam DAR
Tunisia Tunis TUN
Uganda Entebbe EBB
Zambia Lusaka Lusaka Intl. LUN
Zimbabwe Harare Harare Intl. HRE

Asia

Afghanistan Kabul KBL

Bahrain Manama BAH
Bangladesh Dhaka Zia Intl. DAC
Brunei Bandar Seri Brunei BWN
Darussalam Begawan Darussalam
Cambodia Phnom Penh Pochentong PNH
China Beijing BJS Beijing PEK
Shanghai Hongqiao SHA Capital
Hong Kong (SAR) Hong kong HKG
Guangzhou Baiyun CAN
Chinese Taipei Taipei Taoyuan Intl. TPE
India Bangalore Bangalore BLR
Delhi Indira Gandhi Intl. DEL
Mumbai C.S. Intl. Airport BOM
Chennai Meenambakkam Airport MAA
Kolkota Netaji S.C.B. Intl. CCU
Indonesia Jakarta JKT
Tran Tehran THR
Iraq Baghdad BGW
Israel Jerusalem JRS
Tel Aviv TLV
Japan Tokyo TYO Narita NRT
Haneda HND
Osaka OSA
Jordan Amman AMM
Korea South Seoul SEL
Korea North Pyongyang Sunan FNJ
Kuwait Kuwait KWI
Lebanon Beirut BEY

Contd
 Airline Geography 283

Appendix 9.1 Contd

pies City Airport name City code/ Airport Airport

Airport code name code
Malaysia Kuala Lumpur Kuala Lumpur Intl. KUL
Mongolia Ulaan Baatar ULN
Myanmar Yangon RGN
Nepal Kathmandu Tnbhuvan KTM
Oman Muscat MCT
Pakistan Islamabad Islamabad Intl. ISB
Karachi Quaid-E-Azam Intl. KHI
Lahore Lahore LHE
Philippines Manila Ninoy Aquino Intl. MNL
Qatar Doha DOH
Russian
Federation
(East of the Urals) Khabarovsk KHV
Saudi Arabia Riyadh RUH
Jeddah JED
Deharan DHA
Singapore Singapore Changi SIN
Sri Lanka Colombo CMB
Syna Damascus DAM
Thailand Bangkok Bangkok BKK
Turkey Ankara ANK Esenboga ESB
UAE Abu Dhabi AUH
Dubai DXB
Sharjah SHJ
Vietnam Hanoi Noibai HAN
Yemen Sanaa SAH
Aden ADE

Australia and Pacific Islands

Australia Adelaide Adelaide Intl. ADL

Brisbane Brisbane Intl. BNE
Canberra Canberra Intl. CBR
Darwin Darwin Intl. DRW
Sydney Sydney Intl. SYD
Melbourne Tullamarine Airport MEL
Perth Perth Airport PER
Fiji Suva SUV
Nadi NAN

Contd
284 Tourism Operations and Management

Appendix 9.1 Contd

Country City Airport name City code/ Airport Airport

Airport code name code
“French Polynesia Papeete PPT
| New Zealand Wellington Wellington WLG
Auckland Auckland Intl. AKL
Christchurch Christchurch CHC
Papua New Guinea Port Moresby POM
Solomon island Honiara HIR

North America

Canada Calgary Calgary International YYC

Edmonton Edmonton Intl. YEG
Ottawa Macdonald-Cartier Intl. YOW
Montreal YMQ Mirabel YMX
Dorval YUL
Toronto YTO Pearson Intl. YYZ
Vancouver Vancouver International YVR
Winnipeg Winnipeg International YWG
Greenland Nuuk GOH
| USA Atlanta Hartsfield-Jackson ATL
Atlanta Intl.
Anchorage Anchorage International ANC
Boston Logan International BOS
Chicago CHI O'Hare ORD
Cincinnati Cincinnati/Northern
Kentucky International CVG
Cleveland Cleveland Hopkins
International CLE
Dallas Dallas/Fort Worth
International Airport DFW
Detroit DTT Wayne County DTW
Houston Houston George Bush
Intercontinental HOU
Los Angeles Los Angeles International LAX
Miami Miami International MIA
Minneapolis Minneapolis/St. Paul
International MSP
New York NYC John F Kennedy JFK
La Guardia LGA
Newark EWR

Contd
 Airline Geography 285

Appendix 9.1 Contd

Country City Airport name City code/ Airport Airport

Airport code name code
Orlando ORL
Philadelphia Philadelphia International PHL
St. Louis St. Louis Lambert
International STE
San Francisco San Francisco
International SFO
Seattle Seattle-Tacoma Intl. SEA
Washington Dulles
D.C. WAS International IAD
R. Reagan
National DCA
Hawaii island Honolulu Honolulu International HNL

Central America

Bahamas Nassau Nassau Intl. NAS

Freeport Grand Bahama Intl. FPO
Barbados Bridgetown BGI
Belize Belmopan BZE
Costa Rica San Jose SJO
Cuba Havana HAV
Guatemala Guatemala City GUA
Haiti Port au Prince PAP
Honduras Tegucigalpa TGU
Jamaica Kingston KIN
Mexico Mexico City Internacional Benito Juarez MEX
Acapulco General Juan N Alvarez ACA
Guadalajara Intl. GDL
Netherlands
Antilles Curacao CUR
Nicaragua Managua MGA
Panama Panama City PTY
Trinidad &
Tobago Port of Spain POS

South America

Argentina Buenos Aires BUE

Bolivia La Paz LPB

Contd
286 Tourism Operations and Management

Appendix 9.1 Contd

Country City Airport name City code/ Airport Airport

Airport code name code
paletesa onscow l|

Brazil Brasilia Presidente Juscelino

Kubitschek BSB
Manaus Guararapes Intl. MAO
Recife RCE
Rio de Janeiro RIO Galeao GIG
Sao Paulo SAO Guarulhos GRU
Congonhas CGH
Viracopos VCP
Chile Santiago de
Chile SCL
Colombia Bogota BOG
Barranquila BAQ
Ecuador Quito UIO
French
Guiana Cayenne CAY
Paraguay Asuncion ASU
Lima Jorge Chavez Intl. LIM
Paramaribo PBM
Uruguay Montevideo MVD
Venezuela Caracas Simon Bolivar Intl. CCS
Maracaibo La Chinita MAR
 Airline Geography 287

APPENDIX 9.2

City Codes, Airport Names and Codes of India

City State/ Airport Airport
Region Code
Agartala Tripura Agartala Singerbhil IXA
Agra Uttar Pradesh Agra Airport AGR
Ahmedabad Gujarat Ahmedabad Airport AMD
Allahabad Uttar Pradesh Allahabad Bamrauli IXD
Amritsar Punjab Amritsar Raja Sansi Airport ATQ
Aurangabad Maharashtra Chikalthan IXU
Bagdogra Sikkim Bagdogra Airport IXB
Bangalore Karnataka Bangalore Airport BLR
Bhavnagar Gujarat Bhavnagar Civil Airport BHU
Bhopal Madhya Pradesh Bhopal Airport BHO
Bhubaneswar Orissa Bhubaneswar Airport BBI
Bhuj Gujarat Bhuj Rudra Mata Airport BHJ
Calcutta (Kolkata) | West Bengal Netaji S C Bose
International Airport CCU
Chandigarh Chandigarh Chandigarh Airport IXC
Chennai(Madras) Tamil Nadu Meenambakkam Airport MAA
Cochin Kerala Cochin Airport COK
Coimbatore Coimbatore Coimbatore Peelamedu Airport CIB
Daman Daman Daman Airport NMB
Dehradun Uttarakhand Dehradun Grant Airport DED
Dibrugarh Assam Dibrugarh Airport DIB
Dimapur Nagaland Dimapur Airport DMU
Diu Daman and Diu Diu Airport DIU
Guwahati Assam Lokpriya Gopinath
Bordoloi International
Airport GAU
Goa Goa Dabolim Airport GOI
Gwalior Madhya Pradesh Gwalior Airport GWL
Hubli Karnataka Hubli Airport HBX
Hyderabad Andhra Pradesh Begumpet Airport HYD
Imphal Manipur Imphal Municipal Airport IMF
Indore Madhya Pradesh Indore Airport IDR
Jaipur Rajasthan Jaipur Airport JAI
Jammu Jammu & Kashmir Jammu Airport IXJ
Jamnagar Gujarat Govardhan Airport JGA

Contd
288 Tourism Operations and Management

Appendix 9.2 Contd

City State/ Airport Airport

Region Code 4
Jamshedpur Jharkhand Jamshedpur Sonani Airport IXW
Jodhpur Rajasthan Jodhpur Airport JDH
Jorhat Assam Rowriah Airport JRH
Kanpur Uttar Pradesh Kanpur Airport KNU
Khajuraho Madhya Pradesh Khajuraho Airport HJR
Kozhikode (Calicut) Kerala Kozhikode Airport CCI
Leh Jammu & Kashmir Leh Airport IXL
Lucknow Utter Pradesh Amausi Airport LKO
Ludhiana Punjab Ludhiana Sahnewal LUH
Madurai Tamil Nadu Madurai Airport IXM
Mangalore Karnataka Mangalore Bajpe Airport IXE
Mumbai (Bombay) Maharashtra C S International Airport BOM
Nagpur Maharashtra Sonegaon Airport NAG
Nanded Maharashtra Nanded Airport NDC
Nashik Maharashtra Gandhi Nagar Airport ISK
New Delhi Delhi Indira Gandhi
International Airport DEL
Patna Bihar Patna Airport PAT
Pondicherry Union Territory (UT) Pondicherry Airport PNY
Poona (Pune) Maharashtra Lohegaon Airport PNQ
Porbandar Gujarat Porbandar Airport PBD
Port Blair Andaman and
Nicobar Islands Port Blair Airport IXZ
Puttaparthi Andhra Pradesh Puttaparthi Airport PUT
Rae Bareli Uttar Pradesh Rae Bareli Airport BEK
Rajkot Gujarat Rajkot Airport RAJ
Ranchi Jharkhand Ranchi Airport IXR
Shillong Meghalaya Shillong Barapani Airport SHL
Silchar Assam Kumbirgram Airport IXS
Srinagar Jammu & Kashmir — Srinagar Airport SXR
Surat Gujrat Surat Airport STV
Tezpur Assam Tezpur Airport TEZ
Tiruchirapally Tamil Nadu Tiruchirapalli Airport TRZ
Tirupati Andhra Pradesh Tirupati Airport TIR
Trivandrum Kerala Trivandrum International
Airport TRV
Udaipur Rajasthan Udaipur Airport UDR
Vadodara Gujarat Vadodara Airport BDQ
Varanasi Uttar Pradesh Babatpur Airport VNS
Vijayawada Andhra Pradesh Vijayawada Airport VGA
 Airline Geography 289

APPENDIX 9.3

Airlines Codes
Airlines Location Airline
Codes

AbronneeRussian Airlines Russian federation SU

Aerolineas Argentinas Argentina AR
Air Canada Canada AC
Air China China CA
Air France France AF
Air Holland Netherlands GG
Air New Zealand New Zealand NZ
Air India Ltd India Al
Alitalia Italy AZ
All Nippon Airways Japan NH
American Airlines USA AA
Austrian Airlines Austria 05
BMI British Midland UK BD
British Airways UK BA
Canadian Airlines International Canada CP
Cathay Pacific Hong Kong SAR China (x
Crossair Switzerland LS
Continental Airlines USA CO
Delta Airlines USA DL
Dragonair China KA
Egyptair egypt MS
El Al Israel LY
Emirates UAE EK
Etihad Airways UAE EY
Finnair Finland AY
Garuda Indonesia Indonesia GA
Gulf air Bahrain GF
Iberia Spain IB
Indian Airlines India IC
Japan Airlines Japan JL
Jet Airways India 9W
Korean Airlines Korea KE
KLM Netherlands KL
KLM UK UK UK
Lufthansa Germany LH

Contd
290 Tourism Operations and Management

Appendix 9.3 Contd

Airlines Location Airline

Codes

Malaysia Airline Malaysia MH

Mexicana Mexico MX
New England Airlines USA EJ
Northwest Airlines USA NW
Olympic Airways Greece OA
Pakistan International Airlines Pakistan PK
Qantas Australia QF
Royal Air Maroc Morocco AT
Ryanair Ireland FR
Sabena Belgium SN
Sahara Airlines India $2
SAS Sweden SK
Saudi Arabian Airlines Saudi Arabia SV
Singapore Airlines Singapore SQ
Spanair Spain JK
Swissair Switzerland SR
TACA El Salvador TA
TAP—Air Portugal Portugal TP
Thai Airways Thailand TG
United Airlines USA UA
Varig Brazil RG
Virgin Atlantic Airways UK VS
 Airline Geography 291

APPENDIX 9.4

Country Codes
Country Name ISO 2- Country Name ISO 2-
alpha code alpha code
Afghanistan AF Albania AL
Algeria DZ Andorra AD
Angola AO Antigua and Barbuda AG
Argentina AR Armenia AM
Australia AU Austria AT
Azerbaijan AZ Bahamas BS
Bahrain BH Bangladesh BD
Belarus BY Belgium BE
Belize BZ Benin BJ
Bhutan BT Bolivia BO
Bosnia and Herzegovina BA Botswana BW
Brazil BR Brunei Darussalam BN
Bulgaria BG Cambodia KH
Cameroon CM Canada CA
Chad TD Chile CL
China CN Colombia CO
Comoros KM Costa Rica CR
Croatia HR Cuba CU
Cyprus CY Czech Republic 4
Denmark DK Djibouti DJ
Ecuador EC Egypt EG
Equatorial Guinea GQ Estonia EE
Fiji FJ Finland Fl
France FR Gabon GA
Gambia, The GM Georgia GE
Germany DE Ghana GH
Greece GR Grenada GD
Guatemala GT Guinea GN
Guyana GY Haiti HT
Honduras HN Hungary HU
Iceland IS India IN
Indonesia ID Iran IR
Iraq 1Q Ireland IE
Israel TE Italy IT
Jamaica JM Japan JP
Jordan JO Kenya KE
Korea north KP Korea KR
Kuwait KW Lebanon LB
Contd
292 Tourism Operations and Management

Appendix 9.4 Contd

Country Name ISO 2- Country Name ISO 2-

alpha code alpha code

Liberia LR Libya LY,

Luxembourg LU Macedonia MK
Madagascar MG Malawi MW
Malaysia MY Maldives MV
Mali ML Malta MT
Marshall Islands MH Martinique MQ
Mauritania MR Mauritius MU
Mayotte YT Mexico MX
Micronesia FM Moldova MD
Monaco MC Mongolia MN
Montenegro ME Montserrat MS
Morocco MA Mozambique MZ
Myanmar MM Namibia NA
Nepal NP Netherlands NL
New Zealand NZ Nicaragua NI
Niger NE Nigeria NG
Norway NO Oman OM
Pakistan PK Panama PA
Papua New Guinea PG Paraguay PY
Peru PE Philippines PH
Poland ale Portugal as
Puerto Rico PR Qatar QA
Romania RO Russian Federation RU
Rwanda RW Sao Tome and Principe Sti
Saudi Arabia SA Senegal SN
Serbia RS Seychelles Sc
Sierra Leone SL Singapore SG
Somalia SO South Africa ZA
Spain ES Sri Lanka LK
Sudan SD Suriname SR
Swaziland SZ Sweden SE
Switzerland CH Taiwan TW
Tajikistan TJ Tanzania WZ
Thailand TH Tonga TO
Trinidad and Tobago it. Tunisia TN
Turkey TR Turkmenistan ™
Uganda UG Ukraine UA
UAE AE UK GB
USA US Uruguay UY
Uzbekistan UZ Vatican City VA
Venezuela VE Vietnam VN
Yemen XE Zambia ZM
Zimbabwe ZW
 Airline Geography 293

APPENDIX 9.5

Currency Codes
|Country Currency Code Symbol
Afghanistan Afghan Afghani AFN
Argentina Argentine Peso ARS
Armenia Armenian Dram AMD
Australia Australian Dollar AUD $
Austria European Euro EUR &
Azerbaijan Azerbaijani Manat AZN
Bahamas Bahamian Dollar BSD B$
Bahrain Bahraini Dinar BHD
Bangladesh Bangladeshi Taka BDT
Belarus Belarusian Ruble BYR Br
Belgium European Euro EUR €
Belize Belize Dollar BZD BZ$
Bhutan Bhutanese Ngultrum BIN Nu.
Bolivia Bolivian Boliviano BOB Bs.
Brazil Brazilian Real BRL R$
Cambodia Cambodian Riel KHR
Canada Canadian Dollar CAD $
Central African Republic Central African CFA Franc XAF CFA
Chile Chilean Peso CLP $
China Chinese Yuan Renminbi CNY ¥
Colombia Colombian Peso COP Col$
Congo Central African CFA franc XAF CFA
Croatia Croatian Kuna HRK kn
Cuba Cuban Peso CUC $
Cyprus European Euro EUR €
Czech Republic Czech Koruna CZK Kc
Denmark Danish Krone DKK Kr
Egypt Egyptian Pound EGP £
Ethiopia Ethiopian Birr ETB Br
Fiji Fijian Dollar FJD FU$
Finland European Euro EUR E
France European Euro EUR S
Germany European Euro EUR c
Greece European Euro EUR €
Guatemala Guatemalan Quetzal GTQ Q
Honduras Honduran Lempira HNL L
Hong Kong Hong Kong Dollar HKD HK$
294 Tourism Operations and Management

Appendix 9.5 Contd

Country Currency Code Symbol

Hungary Hungarian Forint HUF Ft
Iceland Icelandic Krona ISK kr
India Indian Rupee INR Rs
Indonesia Indonesian Rupiah IDR Rp
Iran Iranian Rial IRR
Iraq Iraqi Dinar 1QD
Israel Israeli New Shekel ILS
Italy European Euro EUR €
Jamaica Jamaican Dollar JMD J$
Japan Japanese Yen JPY ¥
Jordan Jordanian Dinar JOD
Kenya Kenyan shilling KES KSh
Korea, North North Korean Won KPW W
Korea, South South Korean Won KRW W
Kuwait Kuwaiti Dinar KWD
Luxembourg European Euro EUR €
Malaysia Malaysian Ringgit MYR RM
Maldives Maldivian Rufiyaa MVR Rf
Mali West African CFA Franc XOF CFA
Mauritius Mauritian Rupee MUR Rs
Mexico Mexican Peso MXN $
Moldova Moldovan Leu MDL
Myanmar Myanmar Kyat MMK K
Namibia Namibian Dollar NAD N$
Nepal Nepalese Rupee NPR NRs
Netherlands European Euro EUR ©
New Zealand New Zealand Dollar NZD NZ$
Norway Norwegian Krone NOK kr
Oman Omani Rial OMR
Pakistan Pakistani Rupee PKR Rs.
Peru Peruvian Nuevo Sol PEN Sia
Philippines Philippine Peso PHP
Poland Polish Zloty PLN
Portugal European Euro EUR 2
Qatar Qatan Riyal QAR QR
Russia Russian Ruble RUB R
Saudi Arabia Saudi Riyal SAR SR
Seychelles Seychelles Rupee SCR SR
Singapore Singapore Dollar SGD S$
 Airline Geography 295

Appendix 9.5 Contd

Country Currency Code Symbol

South Africa South African Rand ZAR R
Spain European Euro EUR €
Sri Lanka Sri Lankan Rupee LKR SL Rs
Sudan Sudanese Pound SDG
Sweden Swedish Krona SEK kr
Switzerland Swiss Franc CHF Ae
Syria Syrian Pound SYP
Tanzania Tanzanian Shilling TZS
Thailand Thai Baht THB B
Turkey Turkish New Lira TRY vail
Ukraine Ukrainian Hryvnia UAH
UAE UAE Dirham AED
UK British Pound GBP if
USA US Dollar USD US$
Uruguay Uruguayan Peso UYU $U
Venezuela Venezuelan Bolivar VEB Bs
Vietnam Vietnamese Dong VND b
Yemen Yemeni Rial YER
Zambia Zambian Kwacha ZMK ZK
Zimbabwe Zimbabwean Dollar ZWD Z$
 Itinerary Planning

Learning objectives
After reading this chapter you should be able to:
understand how an itinerary is planned and organized
know what all the itinerary should include
® explain what all information is required while planning an
itinerary
understand how tour costs are calculated
appreciate how the travel agents and tour Operators
earn their profit
¢ know how to work on a costing sheet, using information
and different costs

INTRODUCTION

tinerary planning, as we have read in Chapter

7, is one of the major
functions and day-to-day activities of a travel agenc
y. The travel
agency may sell ready-made tour packages or desig
n tailor-made
customized tour itineraries for their clients
as per their requirements.
Detailed thought and careful planning is needed
while preparing a tour
itinerary. Itinerary planning involves a lot
of work. Even though the
proposed route may be familiar to the tour
professional or the tour
packages offered are a repeat of previous years
, there are still many small
things which need to be reviewed. Some
tour operators may add value
 Itinerary Planning 297

by including new destinations or offer some new facility or entertainment

to make the tour programme more attractive, appealing, and competitive
than the others. While planning the tour itinerary, the tour professional
should also consider the political situation, in terms of strikes, terrorism,
etc. related to the intended destination of visit.
Many tour operators have their own escorted tour programmes. These
tours are prepackaged. Few alterations are made every year as per the
changing likes and dislikes of the tourists. The tour planner should know
the success rate of such tours and how popular they are in the market.
Feedback can be taken from the past clients, colleagues, or managers
regarding the tour. The tour planner while preparing the itinerary should
be able to live the tour day by day, considering all important parameters
of itinerary. Special events such as fairs, festivals can also be considered
while planning the tour itinerary depending on the clients and their
preferences. For example, the Republic day, Pune festival, Pushkar fair,
Kumbh mela. These events showcase the culture of the tourist places.
Tour planners can also add events on their own. These events must be
suitably balanced against time, cost, the target tourists, etc. For example,
senior citizens would prefer to have a relaxed tour instead of rock
concerts, etc.
The tourist professional or consultant should be aware of and have
sound knowledge of the destination, its geography, and the places to be
visited by his/her clients. Apart from the various travel guidebooks,
brochures, journals, and periodicals available, the national, regional, and
state level tourism boards are also a good source of information. These
tourism offices offer information on the history, culture, transport, tourist
attractions, accommodation, museums, special events, fairs and festivals,
etc. of a particular city or country. The various travel organizations, such
as UNWTO, ASTA, IATA, etc. are also a good source of information to
the professional travel agent. The Internet where one can get information
within seconds at the click of the mouse, offers various search options
like Google Search, etc. A tourist or anybody can get access to information
on any topic or place on the Internet.

DEFINITION
The term ‘itinerary’ may be defined as the linking of all the journey
points in a traveller’s journey, i.e. from the origin point, and in between
stopping points for sightseeing at the destinations and back to the point
of origin, which may not always be the case.
298 Tourism Operations and Management —_ =
Thus, the term itinerary is used to identify the origin, destination, and
all the halts in a traveller’s journey.
Each particular portion of an itinerary can be termed as a segment. |
For example, for the Golden Triangle sector Delhi-Agra-—Jaipur—Delhi, |
the itinerary would consist of the following segments:
1. Delhi-Agra
2. Agra—Jaipur
3. Jaipur—Delhi

Depending on the mode of transportation between the journey points, |

these segments can be termed as air segment and surface segment. An
air segment is one, which has air travel as its mode of transport. Similarly, ©
a surface segment is one, which has land travel such as railway or road
for its mode of transportation.
In an air segment, the departure city or airport is termed as the boarding
point or departure point, whereas the city of arrival or airport is termed
as off point or arrival point. Together, the boarding point and departure
point are termed as city pair. For example, Mumbai—Delhi, Pune—Goa, |
and Jaipur—Udaipur.
For an outbound travel such as Mumbai-New York—Mumbai,
Mumbai-New York will be the outbound segment and New York-
Mumbai the return segment (inbound segment). |
If an itinerary has a flight connection, for example, a tourist travels
from Mumbai to London via Dubai but on his/her return journey he/
she uses a direct flight from London to Mumbai, then his itinerary will
have the following segments:
1. Mumbai—Dubai
2. Dubai—London
3. London—Mumbai

_ In this particular case, if the tourist has to change his flight at Dubai,
then Dubai is considered as the connecting point, whereas London is the’
stopover point. A connecting point is thus a point where there is change
of aircraft. A stopover point is one which is not a connecting point.
In an itinerary, the origin point is the first departure or boarding point
whereas the destination point is the point of stopover.
A one-way itinerary is one where the passenger does not return to the
point of origin, for example, Mumbai—Dubai.
 Itinerary Planning 299

A circle trip is one where the passenger returns to the point of origin.
Example, Mumbai-Dubai-Mumbai.
An air segment will also have a non-stop, direct, or a connecting flight.
A non-stop flight is a flight that does not have any stops between the
origin point and the passenger’s intended destination. In a direct flight,
the passenger is not required to change any aircraft. However, the direct
flights may have to make any number of stops. When two or more aircrafts
are used between the origin point and the destination point, then the
flights are known as connecting flights.
While planning a tailor-made customized tour itinerary, the travel
agent should find out certain minute and vital details about the client’s
travel. Without these details an itinerary cannot be planned.

BASIC INFORMATION
The following information is required from the client by the travel agent
to plan a tour itinerary.
1. Approximate dates or month of travel of the client
2. Total number of people travelling
3. Mode of travel along with the class
4. Class of hotel and type of local transport
5. The budget of the client
6. Any extra services required

Approximate Dates or Month of Travel

This information is required because during the tourist season and school
vacations, most tourist places are packed to their capacity. Sometimes
the hotels are also booked well in advance by the large tour operators.
Getting air and train reservations are also difficult during the peak season
time. For example, the months of December and January being high
season in Goa, tourists may have to stay in their vehicles or at the beaches
because of unavailability of rooms. For the summer season, people flock
to the Himalayan states of Jammu and Kashmir, Uttarakhand, and
Himachal Pradesh to escape from the hot climate in the plains.
After getting this basic information, the travel agent can accordingly
recommend to his/her clients the places he/she intends to visit. Other
alternatives can also be suggested to the client if there is non availability
of rooms or transport Services.
300 Tourism Operations and Management

Total Number of People Travelling

This information is useful for booking the hotel and transport
arrangements. In the case of a group of 15 or more passengers, the group
can avail discount in the tariff. Hotels offer discounts to groups depending
on the group sizes. The tour leader is given free accommodation and
other services by the tour operator.
The other important information needed is whether any children are
travelling with the passenger. The hotels charge a substantial amount
depending on the age of the child. Children below five years are usually
not charged anything by the hotels. Children between five to 12 years of
age have to pay certain charges for an extra bed, if it is needed. However,
every hotel has its own policy on the tariff of the hotel. If an extra bed
has to be provided in a double room, the costing of the tour has to be
done on triple occupancy basis. Thus, such minute details are necessary
while planning the itinerary. Even the transport arrangements needed
for sightseeing will depend on the size of the group travelling. For example,
two to four people will need a car, six to eight people will need a Toyota
Qualis or a van, a 14-seater mini bus will be required for a group size of
14 and a larger 35-seater bus or 55-seater bus for a larger group, depending
on the group size.

Mode of Travel Along With the Class

There are various modes of travel available and the client’s preference is
of utmost importance. Some tourists might want to save on travel time
while some might be high spending luxury tourists and prefer first or
business class seats and travel by air. There are tourists who would want
to enjoy the scenic beauty of the countryside and travel by rail or road
while some tourists are budget conscious and will opt for a second-class
train ticket or a semi-deluxe coach.
Sometimes, the tourist may prefer the privacy of a chauffeur driven
car for sightseeing at tourist places or he might arrange it on his own.
Such details are needed while costing of the tour.

Class of Hotel and Type of Local Transport

Tourists have a wide variety of choice of hotels to choose from depending |
on their budget. The luxury tourists might opt for five star hotels whereas _
the cost conscious tourists will prefer a standard budget hotel. Knowledge
of all the different types of accommodation and local transport available
is thus necessary for the tourism professional.
 Itinerary Planning 301

The Budget of the Client

This information is needed so as to find out the tour cost of the itinerary.
For a high budget tourist, options of five star or four star hotel along with
airline transport and a luxury car for sightseeing can be given. A middle
class tourist can be given the option of a three star hotel, train journey,
and an ordinary car for sightseeing. Whereas a budget conscious tourist
can be suggested a two star or one star hotel, train journey, and bus for
sightseeing.

Any Extra Services

Extra services such as a guide, an escort, and additional facilities such as
entertainment will definitely add to the tour cost of the itinerary and so
will a visit to additional tourist attractions in the vicinity.

PLANNING THE ITINERARY

After receiving confirmation from your potential client, identifying the
destinations to be visited, number of people travelling, budget of the
client, and booking the air and ground transport segments, the next job
is to plan the tour itinerary. While planning an itinerary, the route has to
be established first. The distances in kilometres between the tourist cities
and the places of attractions, the approximate time taken for travelling
and visiting the sightseeing places should also be considered. The name
of the hotel booked for the client along with specification of meals, if
any, and the day-to-day activities to be recommended have to be
mentioned in the tour itinerary.

Route Map and Routing of Itinerary

The tour professional or travel agent should have a clear picture of the
exact route to be followed whether it is by air, rail, or road for the client’s
itinerary.
An atlas, road maps, maps of individual states, cities and countries,
come in handy while planning and explaining the itineraries to the clients.
Railway and airline route maps and timetables are also available which
can be of help to the travel agent.
Routing is very important while planning a tour itinerary. For road
travel the journey should be scenic. The itinerary should be practical.
Backtracking, doubling back, or routing the client in circles should be
avoided, unless it is necessary.
302 Tourism Operations and Management

In case of business tourists, their meeting plans should be considered,

as the itinerary has to be planned according to their requirements.
Thus, the itinerary should be carefully planned and detailed out as
per the client’s requirements.

Pacing the Itinerary

The tour itinerary plan should be paced as per the client’s requirement.
The client’s age and health should be considered while chalking out the
itinerary. Senior citizens or old people cannot travel at a stretch for a
long duration. They will prefer a relaxed tour itinerary with less walking.
Similar is the case if a family is travelling with small children or for tourists
with some physical disability. The assumption that younger people can
travel at a faster pace is not always true and thus each and every client
has to be considered on an individual basis depending upon their
requirement and need to travel.
Thus, while planning the itinerary, the limitations of passengers’
endurance have to be thought of. The pacing of the tour should not be
too slow or too fast. To keep the itinerary moving, the pace of the itinerary
should not be too fast because of which the clients are pushed continuously
and become tired and irritated. This might make their trip less enjoyable.
The tour should be reasonably planned with half day and full day
sightseeing, and with some two or three overnight stays.

Interests of Tourists
This is one important way to add more value to the tour itinerary. The
client’s interests or liking can be matched with the corresponding activities
and attractions of the tour itinerary. The tour professional should thus
talk to their clients to know their interests. Recreational activities,
educational activities, fun, games, entertainment, dance shows, cultural
shows, plays, etc. can be added to the basic itinerary as per the interest of
the client. Determining and matching the interests of clients requires
thorough knowledge about the destination, as well as practice and
expertise in planning of itineraries.

Details to be Considered
Certain minute details are important while planning the tour itinerary.
Even when you plan an attractive detailed itinerary and miss
out on a
small point, the entire tour of the passenger may be a failure. One of the
 Itinerary Planning 303

most important things to do is to check whether the sightseeing place or

tourist attraction is open on that particular day when your client arrives,
for example, the Taj Mahal, Agra is closed on Fridays. Also, all ground
arrangements and air travel should be reconfirmed. Similarly, you should
inform your clients regarding the check-in formalities at the airport, the
amount of baggage to be carried and the kind of clothing, etc. suitable at
the destination.

Energy Level of Tourists

The energy level of the client and the energy level needed for the tour
itinerary should be matched for a successful trip. This can be done by
knowing what kind of holiday or travel experience the traveller is exactly
looking for. At some tourist attractions, particularly hill stations such as
Shimla and Manali, large vehicles are difficult to drive. The tourists might
have to walk for some kilometres to reach these attractions. Thus, the
tour professional should know how much walking is required for certain
tourist attractions. Older people or a family with small children may face
difficulties in such situations.
Some tourists might prefer a quiet vacation near the beach or at a hill
resort. Thus, the tour professional should be able to judge the energy
level of the client and then match it with the itinerary.

Shopping
Many tourist cities are famous for some special things to shop for. Tourists
want to carry mementos or souvenirs, purchase gifts for family and friends
from the places they have visited. The travel agent should always keep
some free time for shopping or leisure in the tour itinerary. For example,
Rajasthan is famous for tie and dye fabrics, morjaris, and kundan jewellery
while Aurangabad for Paithani sarees and Himroo shawls.
Many tour agents and tour operators lure tourists by highlighting
shopping in their advertisements or brochures. For example, the Dubai
festival, Malaysia festival, etc.

Climate
Climate plays an important role while recommending a travel destination
to tourists. Not all tourists are aware of the climatic conditions of tourist
places. It is the job of the travel agent to inform the tourists accordingly
as to what essential clothing and accessories should be carried for the
304 Tourism Operations and Management
hilly and snowy
trip. Tourists should not be recommended to travel to
rous if there are land-
areas during the rainy season, as it may be dange
sometimes get
slides, flooding, and road blockage. The flights also may
cancelled or delayed due to bad weather conditions.
for good climatic
Tourists always prefer to escape to places famous
Himalayas, or the
conditions. In the summer season the hill stations,
destinations.
cooler places in the plains are the most sought after

RESOURCES FOR PLANNING ITINERARIES

Planning of tour itineraries requires expertise and knowledge of the travel
destinations. As the tour professional cannot visit each and every tourist
destination, the following resources (see figure 10.1) can be of help while
planning itineraries.

Government
Internet tourist

Oe
offices

Brochures Travel
of hotels, guidebooks
tour operators

Resources for
Planning
ee Itineraries =
=|~-———__ ____
Tourist Journals
organizations

Timetables
of airlines, Periodicals
railways

Magazines

Figure 10.1 Resources required for planning itineraries

 Itinerary Planning 305

Feedback from clients

Clients feedback, whether positive or negative are a valuable source of
information. Usually, a feedback form is given to the client before the
tour, which has to be mailed to the travel agent after completion of the
tour. The travel agent can also call up their clients and find out how their
tour was.
Apart from your clients, your friends, relatives, and colleagues can
also be a good source of information regarding the tourist destinations.

Government tourist offices

The national and state government tourist offices offer useful information
to the tourist, and tour professionals. The information ranges from the
history, geography, culture, hotels, tourist attractions, museums, fairs and
festivals, special events, mode of transport available, etc. Brochures,
folders, pamphlets, posters, CDs are made available at these tourist offices.

Travel guidebooks
Travel guidebooks are available at the various bookstores. These
guidebooks contain important travel information for the tourist and the
tour professionals. For example, Lonely Planet.

Magazines, Journals, and Periodicals

These are also important sources of information regarding travel. For
example, Outlook Traveller, National Geographic, etc.

Tourist organizations
The tourist organizations are also an important source of information for
the professional travel agent For example, International Air Transport
Association, Cruise Line International Association, American Society of
Travel Agents Association, Trave! Agents Association of India, etc.
These tourist organizations publish their regular newsletter, journals,
etc. for the travel industry.

Brochures of hotels and tour operators

Hotels publish their yearly tariff along with other details of various services
and amenities offered in the hotel. The tariff details are of help while
doing the costing of the hotel. Many tour operators also publish their
brochures with the tour programmes.
306 Tourism Operations and Management

Exhibit 10.1 Basic steps to be followed while planning an itinerary

When planning any itinerary, the tour professional should always try to follow
the following steps:
1. Determine the places the tourist intends to visit and the number of days required
at these destinations.
Establish the sequence of the tourist destinations the tourist intends to visit.
The cities should be linked so as to avoid doubling back and zigzag.
The political situation of the city, state or country should also be considered.
mm
PP
&
W The geographical limitations of a particular place and the practicality of the
transport options are also important for planning the itinerary.
6. Convenient and quickest mode of transportation should be planned and proper
connections should be made for air/sea/rail or road.
7. When planning air itineraries, preference to lowest fares should be considered.
Alternative or optional itineraries or suggestions can always be given in case
the clients change their mind.
9. The itinerary should be planned as per a format, which can be used always.
10. The initial information and notes taken while discussing with the client should
be retained as they are of help while planning the itinerary.

Internet

The Internet is the most useful source of information which can be

accessed within seconds at the click of the mouse.

Timetables
Many airlines publish their regular schedule along with the air tariff every
month. The railways also publish their yearly timetable with all details.
The Indian Railways publish Trains At a Glance.
Other examples are Official Airline Guide (OAG), Passenger Air Tariff,
Indian Airlines Timetable, etc.

COSTING OF A TOUR
After planning the itinerary, the next important thing is to calculate the
tour cost of the itinerary. For the costing the essential requirements are
the tariff details of the hotel, meals, airline/ train, ground transport cost
which can be a car or coach depending on the group size of the passengers,
if any guide/escort has been taken into account, or any extra services
such as camel ride, elephant ride, entertainment, etc. The entire cost of
the travel is then shared between the number of passengers travelling
 Itinerary Planning 307

together to find out the per person tour cost on twin sharing or triple
sharing basis by the travel agent.
For any kind of tour whether it is a prepackaged tour or specially
designed tour, the tour planner has to keep some profit for the travel
agent. The tour planner has to consider the currency rates and fluctuations
for the convenience of the tourists. Because if the dollar drops against
major foreign currencies, it may deter the tourists who travel for shopping
and other reasons from undertaking the tour. The tour planner can always
suggest to their clients how they could utilize their free time or leisure
time and give information on restaurants and entertainment. The tour
price quoted to passengers has to be competitive in the market, and if
the cost is higher than the price of other competitors, it should be
justifiable.
The standard items which are included in the costing of a tour are
* cost of accommodations
¢ cost of meais
* cost of transportation (air/rail/road/water)
* entrance fees, local guides, porterage (transfer of luggage by airport,
railway, hotel porters), and airport taxes
¢ miscellaneous fees such as entertainment or any extra service to be
provided to the client
¢ mark up

Hotel
The travel agent should be aware of the various hotels available at the
tourist destinations. He/she should keep himself/herself updated on the
different category of hotels, types of rooms, tariff plans, extra bed charges,
taxes, meal rates, etc. There are different tariff plans as per the season i.e.
regular, season, off-season, and weekend tariff. Some hotels offer special
rates to corporates. Discounted rates are given to groups depending on
the size of the group.
After determining the route of the itinerary the travel agent’s next
important task is to contact the hotels at the destinations to check the
availability of rooms for the anticipated number of guests. The tour
planner should know the exact number of people travelling, so as to
calculate the cost of the accommodation.
For example, there are 14 people travelling to Rajasthan for eight
days. The travel agent contacts the hotel for the best possible and
308 Tourism Operations and Management

competitive rate. The hotel offers the travel agent a net price of Rs 1800
for a double room on continental plan (i.e. room + breakfast). The travel
agent may contact the chain hotels, for example, ‘Taj, Oberoi, etc. and
use only their hotels or the hotels with which he has a regular contact
and good relationship. The travel agent has to also consider the location
and facilities offered at the hotel for the tour.
The hotel may give the net price on an individual basis, i.e. per person
rate or on room basis. When the net price is given on a room basis, the
cost per person has to be calculated by dividing the room cost by the
number of occupants. For example, for two people staying in one double
room, Rs 900 will be the per person cost. If a third person is sharing the
room, i.e. triple occupancy then the cost of extra bed is added to the cost
of double room. Example, Rs 300 (extra bed) + Rs 1800 (double room)
= Rs 2100. This figure is divided by 3. Thus, the cost per person will be
Rs 700 on triple occupancy.

Meals
Some hotels usually, give a net rate, which is inclusive of all meals for
large groups. Some have the tariff inclusive of meals, for example, only
breakfast, i.e. continental plan (CP), or breakfast and any one meal ie.
modified american plan (MAP), or all meals—american plan (AP), or it
can be only room and no meals european plan (EP). The hotels may also
publish their meal plans along with the room tariff in their brochure. If
the meal plan is not included in the tariff the guest can have meals as per
the ‘a la carte’ menu and pay their own bills.
The travel agents usually do not include lunch in the tour cost as the
guest might be out for sightseeing. Many tourists prefer a light lunch or
may like to choose their own restaurants. While doing the costing, the
meal cost also has to be taken into account as per the requirement of
the guest.

Airlines
Knowledge of different airlines along with the airfares, air schedules, in-
flight services, meals, different classes, taxes, etc. are important for the
travel agent.
The tour cost may include the airfares for different sectors as required
in the itinerary or it can be given separately as airfare supplement per
person.
 Itinerary Planning 309

Railways
The travel agent should also be familiar with the train names, routes,
schedules, and fares of major trains for well-known tourist destinations.
The Indian Railways nowadays allows passengers to make reservations
ninety days prior to their date of travel. The Tatkal Seva is also useful for
making reservations five days prior to travelling (see Chapter 5).
If there are any train journeys in the itinerary the cost can be given as
a separate supplement or it may be included in the tour cost.

Road Transport
Road transport is essential to reach the destination from the airport/
railway station to have the pick-up and drop facility to the hotel, visiting
the places of attractions, or for sightseeing at the destination. The tour
professional should know the approximate time taken to reach the next
tourist destination and for visiting places of attractions. The exact
kilometres to be covered and average time taken are important while
planning the itinerary. The distance has to be calculated with accuracy
considering the journey and the local terrain of that area. For example, a
plain area can be covered at an average speed of 40 kilometres per hour
while a hilly area might be covered at a speed of 20-25 kilometres per
hour depending on the vehicle used for travelling and the road condition.
If the tour planner schedules an eight hour road travel between Delhi
and Shimla, he/she will have to make sure that the clients arrive in time
for meals. He/she will also have to check whether it is certain that the
time taken will be exact considering the stops en route for tea, lunch or
en route sightseeing and shopping. The tour planner should not plan a
hectic schedule for the passengers. Too much travel on a single day should
be avoided. The limitations of passenger endurance should be kept in
mind while planning the tour itinerary. The tour should be well paced so
that travellers are not continuously pushed and tired while sightseeing.
For calculating the cost of the vehicle for the entire tour the travel
agent has to contact the supplier, i.e. the transport operator. For example,
if the travel agent is based in Mumbai and he/she contacts his/her transport
agent at Jaipur to give him/her the best competitive rate for a 14-seater
mini bus for an eight days tour, which comprises of two nights at Jaipur,
two nights at Jodhpur, two nights at Jaisalmer, two nights at Jodhpur,
and one night at Udaipur. The transporter gives a net rate of Rs 20,000
for the entire eight days inclusive of the driver’s charges, parking, toll
310 Tourism Operations and Management

taxes, etc. The average kilometres covered in a day is 300 kilometres.

Thus, the client has to pay for the extra kilometres or other sightseeing,
which may be Rs 13 per kilometre for non-AC mini bus and Rs 16 for an
AC vehicle.

Cruises
Many tour operators sell cruise packages of three to five days and more.
Tourists nowadays are also opting for cruise holidays. The tour
professionals should therefore be updated on the different categories of
rooms, cabins, on board facilities, tariff and other details associated with
cruises.
The travel agent can give the cost of the cruise as a supplement cost.

Local Guide/Escort
In India, there are English speaking and foreign language speaking
licenced guides provided by the India Tourism offices. Similarly, there
are local guides who are also authorized to explain the monuments or
other sightseeing places. The travel agent should have a list of approved
guides with their contact numbers and address available at the tourist
destinations. The fee charged by the guides are for half day and full day
and also night charges if any. The travel agent thus while doing the costing
of the tour has to include the guide charges as applicable. Escorts are
provided by the tour operator for the entire tour. For finding the per
person cost, the total guide charges have to be divided by the number of
people travelling. The expenses of the tour escort have also to be added
to the tour cost.

Miscellaneous
If any entertainment has to be provided to the group, for example, a
cultural show in the evening at the hotel or a desert safari with some
touch of culture and entertainment, then the cost of this should also be
included in the tour cost.
The charges for porterage may or may not be included in the tour
cost. It can be given as supplement charge also depending on the
preference of the tourist.
There may be other costs also, such as airport taxes, toll taxes, entrance
fee for places of attractions including museums, historical forts, palaces,
churches, etc. and similar other charges. These costs can be given as
supplement cost.
 Itinerary Planning 311

Mark Up
Finally the mark up which is the main source of income for the travel
agent has to be added to the per person cost of the tour to get the final
tour cost. The mark up may vary from one travel agent to another.
Everybody in business wants to make a profit. The travel agents’ main
source of income is the commission which they receive from their various
service providers, i.e. airlines, hotels, transport operators, etc. Hotels and
transporters normally give a 10 per cent commission to the travel agents.
The range of commission depends on the volume of business, which the
travel agents give to these service providers. This commission is sometimes
further shared by the sub travel agents also. The travel agents have to
also bear the costs of office rent, salary of employees, electricity, telephone
bills, Internet, etc. The amount of commission which the travel agents
get is very low and inadequate for the agency to survive. Thus, in order
to earn a profit the travel agents and tour operators add a mark up to the
total cost of the tour before quoting it to the client. The mark up is the
extra amount, which the travel agents can keep as their income. Some
travel agents refer to it as service charges also. The mark up should not
be too high as the business may be lost to the competitor and at the same
time it should not be too low. The amount added to the tour cost as mark
up is usually decided by the seniors or the management of the travel
agency. The mark up is usually expressed as a percentage of the total
cost price and ranges from seven to 15 per cent.
Many travel agents, tour operators, airlines, etc. while working on the
cost of package tours negotiate with the suppliers such as hotels for
discounted rates if they are able to give more business to the hotel. During
off season many hotels offer discounted rates. In this way the travel agents’
margin can be increased without increasing the price at which they sell
to the clients.
While working at the travel desk and preparing itineraries and
calculating the tour cost, the tour professional should be aware of the
technical terms such as net rate and gross rate.

Net rate

It is the price which is charged by the supplier and has to be paid by the
travel agent to the supplier. The travel agent is free to add any amount of
mark up to it before quoting it to the client. This net rate is confidential
between the supplier and the travel agent. The client should not have
312 Tourism Operations and Management

any idea of the extent of mark up. The supplier can give different net
rates to different travel agents depending on the volume of business and
personal relations.

Gross rate
It is quoted by the supplier to the travel agent and includes commission
(expressed as a percentage of the gross rate). The commission differs
from supplier to supplier on the amount of business the travel agent
gives to the supplier. Normally, hotels give 10 per cent commission to
the travel agent.

Profit
It is not similar to mark up. It is the amount which the travel agent gets at
the end of the tour after paying the bills to the suppliers. Profit usually
includes the commission earned from the suppliers with mark up added
to it. Profit is also calculated on yearly basis.

Margin
It is similar to mark up in some ways. Mark up is expressed as a percentage
whereas margin is the amount expressed in money.

CALCULATION OF A TOUR COST

Let us see with examples as to how an independent tour company, a
travel agency, and an individual organizing a tour might determine their
costs. .

Example 10.1
A client Mr. Sharma approaches the executive at the travel desk for a seven
nights/eight days tour to Kerala. Mr Sharma gives all the required information
as stated below.
1. Name of passenger Mr Suresh Sharma
2. Number of people 2
3. Date of travel 2 May 2009
4. Mode of travel BOM - COK, TRV - BOM by air and a non-AC
Indica car for sightseeing
5. Hotel Luxury hotel =
 Itinerary Planning 313

The travel agent after determining the route of the itinerary will first find
out the availability of seats on the airlines and then check if the hotels are also
available for the same dates. Alternative airlines and hotels can be given as
options if unavailable for the required dates. Similarly ground arrangements
also have to be arranged for those days. The confirmation of all these bookings
should always be in writing from the suppliers to be on the safer side in case of
any error. The travel agent also has to decide on the inclusion of meals if any,
entrance fee, porterage, miscellaneous fee, etc.

Costing sheet
Name: Mr. Sharma x 2 Tour: Kerala

Tariff | Transportation
Day Date Place Hotel ITNY
SGL DBL FOOD; TRSF S.S.
1 2May09 _~ Kochi Taj Malabar 4500 cP
2 3May09 Munnar Copper Castle 2800 EP
3. 4May09 Munnar Copper Castle 2800 EP
4 5May09 _~ Thekkady Spice Village 5800 AP
5 6May09 Kumarakom Coconut Lagoon 6200 AP
6 7May09 _~ Kovalam Le Meridian 5200 CP
7 8May09 ~~ Kovalam Le Meridian 5200 CE.
=32,500/2
16,250 PP

Transport
AC Indica: 13,000 + 10% = 14,300/2 = 7150 PP
Non-AC 12000 + 10% = 13,200/2 = 6600 PP
AC supplement: 7150 - 6600 = 550 PP

Airfare:
BOM — COK: 5200 PP
TRV — BOM: 6000 PP
Total: 11,200 PP

Hotel 16,250
Food
Transport 6600
Agent’s comm.
Mark up 3500
Miscellaneous 300
Total 26,650
Cost to be quoted to passenger = Rs.26,650
314 Tourism Operations and Management
Nee

Abbreviations Abbreviations
‘PP Per person CP Continental plan
EP European plan AP American plan
SGL Single room DBL Double room
TRSF Transfers TRPL Triple
ITNY Itinerary So Sightseeing
AC Air-conditioned

As per the calculation on the given costing sheet, the tariff of the hotel is
noted in the column provided for double room. The meals provided in this tariff
are also mentioned. The tour professional has to check the luxury and other
taxes on room and meals and add it to the room tariff. To find out the per
person rate the total of all the hotels is divided by 2. In Mr Sharma’s case, the
total for hotel is Rs 32,500. After dividing it by 2 the cost per person comes to
Rs 16,250.
The non-AC Indica car is provided by a local transporter based in Kochi. He
gives a net rate of Rs 13,000 for an air-conditioned, Indica car and Rs 12,000
for a non-air conditioned car. The travel agent adds 10 per cent to this rate and
divides it by 2 to find the per person cost for vehicle. The AC supplement is also
calculated which comes to Rs 550.
The airfare for Mumbai-Kochi and Trivandrum-Mumbai are added. The cost
of airfare comes to Rs 11,200 per person.
Mark up of Rs 3500 and for welcome drink and chocolates/flowers Rs. 300
can be put under miscellaneous.
Thus after totaling the hotel, transport, mark up, and miscellaneous rates
the total tour cost comes to Rs 26,650 per person. This tour cost to be quoted
to passenger can be rounded up.

Kerala tour itinera ry for Mr Sharma

Date Programme
2 May 09 (Saturday) Departure from Mumbai by 9W 333 at 08:30 hours. On arrival at Kochi,
pick up from the airport by a non-AC Indica car. Check in into hotel Taj
Malabar. Visit Jewish Synagogue, old fort, Chinese fishing net, Bolghatty
palace, Wellington Island. Dinner and overnight stay at Kochi.
3 May 09 (Sunday) After breakfast departure for Munnar (140 kms-4 hours) on arrival check in
into hotel Copper Castle. Evening at leisure. Overnight at Munnar.
4 May 09 (Monday) Morning local sight seeing of Munnar. Visit Echo point, Mattupetty dam,
Devikulam, Indo-Swiss dairy farm, Eravikulam National Park, Rajamalai.
Overnight at Munnar.

Contd
 Itinerary Planning 315

Contd

Date Programme

5 May 09 (Tuesday) Morning departure for Thekkady (110 kms-4 hours). On arrival check in into
Hotel Spice Village. After lunch visit spice plantation and tea factory. Evening
at Leisure. Dinner and overnight at Thekkady.
6 May 09 (Wednesday) After breakfast enjoy boat ride in Periyar lake. Visit Periyar wild life sanctuary.
Proceed to Kumarakom (160 kms 4-5 hours). On arrival check in into hotel
Coconut lagoon. Enjoy backwater cruise at Vembanad lake. Dinner and
overnight at Kumarakom.
7 May 09 After breakfast visit bird sanctuary. Departure to Kovalam (5 hours). On
arrival check in into hotel Le Meridian. Evening relax at the beach. Dinner
and overnight at Kovalam.
8 May 09 After breakfast proceed for Thiruvananthapuram local sightseeing. Visit
Padmanabhaswamy temple, Palace, Napier museum, Art gallery, Handicraft
Institute. Overnight at Kovalam.
9 May 09 After breakfast departure for Mumbai by 9W 315 at 12:30 hours.

Tour Cost: Rs. 26,650 per person on twin sharing basis.

Tour cost includes

accommodation on twin sharing basis

all currently applicable taxes
all transfers and sightseeing by non-AC Indica car
parking at the airport
breakfast at Kochi and Kovalam.
all meals at Thekkady and Kumarakom
Tour cost does not include

airfare
entrance fee
porterage at airport
any personal services such as tips, laundry, etc.
meals at Munnar and lunch and dinner at Kochi and Kovalam

Supplement cost
AC supplement Rs 550 per person.
airfare supplement for
(a) Mumbai-Kochi: Rs 5200 per person
(b) Thiruvanathapuram-Mumbai: Rs 6000 per person
316 Tourism Operations and Management

Example 10.2
Costing for USD passenger
Mr and Mrs Jayant Sidhaye, an NRI couple has approached XYZ travel agency for
a Golden Triangle Tour. They will be accompanied by Mr Sidhaye’s foreign friends,
who are two couples with one child of 12 years. So, in this particular case, they
will require three double rooms with one extra bed in one of the rooms for the
child. As Mr Sidhaye is an Indian, his costing will be based on INR rates, whereas
for his foreign friends, USD rates have to be applied.
As per the costing sheet, the tour operator will have to make separate columns
for an extra bed and double room, to calculate rates for triple occupancy and
double occupancy. A separate column should be given for INR rates and food.
After filling the amount in the respective columns the total is added. To find
out the triple occupancy rate, the charges of double room and extra bed are
added, i.e. 145 USD + 511 USD = 656 USD. The amount is divided by 3 which
comes to 218.66 which is rounded up to 219 USD per person on triple sharing
basis. The per person rate on double occupancy is 511/2= 256 USD per person.
For INR, it is 17,066/2 = 8533 per person. The meal coupons are given in INR.
If we want the rate in USD it has to be divided by the current dollar rate.
Suppose it is Rs. 42.50. Then it comes to 59 USD per person for meal coupons.
The transport rates are calculated as per the rates provided for Qualis and
Tempo traveller by the transport operator for the sightseeing and transfers. The
guide charges are also added for half day and full day sightseeing accordingly.
A 10 per cent commission is added on the transport and guide, as these are net
rates. The USD rate is calculated @Rs 42.50. The train fare is taken as Rs 600 PP
and USD 15. The total entrance fees and airfare are given as supplements to
the client.
Costing Sheet
Name: Mr Jayant Sidhaye and Mr Ian Garett Tour: Golden Triangle
Tariff
Day Date Place Hotel Extra bed DBL Food INR ITNY
2009 USD USD INR DBL
1 17 Dec Delhi Oberoi Maidens 37 134 500 4288
2 18Dec Dethi Oberoi Maidens 37 134 500 4288
3. 19Dec Agra The Trident, Agra raze 79 500 2730
4 20Dec Jaipur The Trident, Jaipur 22 82 500 2880
5 21Dec Jaipur The Trident, Jaipur 22 82 500 2880
145+511 511/2 2500@ 17066/2
=656/3 =255.5 42.50 =Rs. 8533
=256$ =2500/
=218.66 PP on DBL 42.50 PP
=59 USD
=219 PP on TRPL
 Itinerary Planning 317

Airfare

USD INR

Adult Child
BOM-DEL 181 91 5705
JAI-BOM 161 81 4667

USD INR

Dbl Trpl
Hotel 256 219 8533
Food (Meal Coupons) 59 59 2500
Tran. (Non AC Tempo) 72 he 2995
Gifts 6 6 250
Mark up 70 70 3000
Guide al alta 428
Total 474 437 17,706

Cost to be quoted to passenger = 474 USD per person on double sharing

= 437 USD per person on triple sharing
= Rs 17,750 on double occupancy

Transport costing

Qualis Tempo Guide

Non-AC AC Non-AC AC
Delhi Arr. trsf 3800 3800 4300 4800 495
Day 01 _~— Parking
Half day s/s parking
Day 02 ‘Full day s/s parking 618
Day 03 ~—Dep trsf to stn. parking
Agra Arr. Trsf. parking 6945 8245 7945 9245 495
5/6 of Agra
Day 04 _—sTrsf to Jai via F. Sikni
F, Sikri parking
Jaipur
Day 05 ~—‘Full day s/s 1355 1810
Elephant nde 900 900 2995 3745 618
Parking 50 50
Day 06 _—ODep trsf 640 935
Parking 50 50
Total 13740 15790 15240 17790 2721
Contd
318 Tourism Operations and Management

Transport costing Contd

Qualis Tempo Guide

ee Non-AC AC Non-AC AC

+10% +10% +10% +10% +10%

=15114/7 =17369/7. -=16764/7 ==19569/7 =2994/7
=I Onleste =2482 P.P. = 230 5m 2796 P.P. 427.77 = 428
@42.50 @42.50 @42.50 @42.50 @42.50
= Oso) =e =11{0)(0)7/
=51$ =59$ =57$ =11$ =11$
Train fare:
600 PP +15 +15 +15 +15
@42.50
= 15 USD
Total =66$ =/4 =I//7 =81

Example 10.3
Itinerary for the Golden Triangle tour
The Golden Triangle is a luxury tour offered by XYZ travel agent for five nights/
six days to Delhi-Agra-Jaipur. It covers places of historical interest and the
world famous monument of love, the Taj Mahal by moonlight.

Day Distance Time Activity Overnight Highlight of

or Drive the Day
1 Air 0805 Arrival Delhi by Delhi Welcome Drink
Mumbai - Delhi (2 hrs) hrs 9w 333 0805/1000. Oberoi Maidens upon arrival.
1000 Meet and greet by travel Chocolates and
Hrs agent representative. flowers in the
Transfer to the hotel by a room. Half day
non-AC Tempo Traveller, local sightseeing
Welcome drink at the time of Old Dethi.
of check-in. Chocolates
and flowers in the room.
Afternoon local sight
-seeing of Old Delhi.
Overnight at the hotel.
2 1100 Breakfast at the hotel. Delhi Half day sight
Delhi Hrs Oberoi Maidens -seeing of
Half day sightseeing New Delhi.
of New Delhi by.a non-AC
Tempo traveller.
Contd
 Itinerary Planning 319

Contd
Day Distance Time Activity Overnight Highlight of
or Drive the Day
PM Overnight at the hotel.
Breakfast at the hotel.
3 Rail 0630 Transfer to railway station Agra Welcome Drink
Agra 2hrs hrs by a non-AC tempo traveller = The Trident upon arrival.
0830 to board Shatabdi Express Chocolates and
hrs to Agra at 0630 hrs. flowers in the
Arrival Agra at 0830 hrs. room. City tour
Transfer to hotel by a and visit the
non-AC Tempo traveller. magnificent Taj.
Welcome drink at the time
of check-in. Chocolates and
flowers in the room.
Traditional Indian Welcome.
PM Evening visit Taj by moonlight
(Upto 7.30 p.m.)
O/n at hotel.
4 232 0800 Breakfast at the hotel Jaipur Welcome Drink
Agra - Jaipur kms hrs The Trident upon arrival.
5 hrs 0930 Drive to Jaipur via Chocolates and
hrs Fathepur Sikri by a non-AC flowers in the
Tempo traveller, Welcome room. Enjoy
drink at the time of Check-in. the drive to
Chocolates and flowers in the Fatehpur Sikri.
room. Rest of the day at
leisure. Overnight at the hotel.
5 0800 Breakfast at the hotel. Jaipur Amber Fort with
Jaipur hrs The Trident elephant nde to
0930 A.M. visit Amber Fort with the fort, Sheesh
hrs elephant ride to the fort. Mahal and city
1430 Afternoon, half-day city tour tour of Jaipur
hrs of Jaipur by a non-AC tempo including the
traveller. Shopping. Hawa Mahal,
Overnight at the hotel. Jantar Mantar,
the museum etc.
Shop for
semiprecious
stones and fabric.
6 Air 342 Breakfast at the hotel. Take back happy
Tour ends hours 0720 Transfer to Jaipur airport memories along
hrs for flight to Mumbai by with a souvenir
CD 7471 0720/1050 hrs. gift and photo CD.
1050 hrs
320 Tourism Operations and Management

Tour cost

474 USD per person on twin sharing basis

437 USD per person on triple sharing basis
Rs 17,750 per person on twin sharing basis
Tour cost includes

accommodation on twin sharing basis.

all currently applicable taxes.
all transfers and sightseeing by a non-AC Tempo Traveller.
meal coupons worth Rs 500 per person per day
rail fare Delhi-Agra by Shatabdi Express air-conditioned chair car.
elephant ride at the Amber Fort, Jaipur
parking at airport and railway station
english speaking guide.

Exclusive highlights of the tour

traditional Indian welcome
welcome drink upon arrival
chocolates and flowers in the room
elephant ride at the Amber Fort
souvenir gift on departure
a photo CD upon return in receipt of one tour photograph and feedback
letter from client
Tour cost does not include

airfare
entrances
porterage at airport or railway station
any personal services such as tips, laundry, etc
Supplement cost
AC Supplement cost USD 9 per person and for INR Rs 401 per person on twin
sharing basis
entrance Supplement USD 99 per person and for Rs 373 on twin sharing
basis.
airfare Supplement for
(a) Bombay-Delhi 9W 333 0805/1000
Adult USD 181 per person and for INR: Rs 5705 per person.
Child USD 91 per child
 Itinerary Planning 321

(b) Jaipur-Bombay CD 7471 0720/1050

adult USD 161 per person and for INR: Rs 4667 per person.
child USD 81 per child
Note: Entrances at the sightseeing places
Delhi Red Fort, Qutub Minar, Humayun’s Tomb, and Jantar Mantar: USD 35 per
person and INR Rs 53
Agra Taj Mahal, Sikandra, Agra Fort, Itmad-ud-daulah and Fatehpur Sikri:
USD 58 per person and for INR: Rs 85
Jaipur City Palace, Observatory, Museum and Amber Fort: USD 6 and for INR:
RSo250
Note:

e The tempo traveller is available as per the sightseeing places mentioned at

Agra and Jaipur and for Delhi it is for one half day and one full day (minimum
kilometres 200 avg. per day).
e Agra can be visited for half day sightseeing for four hours in the evening.
e The hotels at all the places are centrally air-conditioned.
e Information on Son et Lumiere show: It is held at Red Fort. There are 2
shows, i.e. 0700 p.m. to 0800 p.m. in Hindi and 0830 to 0930 p.m. in
English.

Example 10.4
Itinerary for one-day Pune Darshan city tour (01 day)
This itinerary is of a day trip to the places of interest in Pune by bus and is
available everyday.
Day 1: Departure from Deccan Bus Stand, Railway Station, Pune at 0900 a.m.
by M.T.D.C. semi luxury bus for Pune Darshan city tour. Visit Chaturshrungi Devi
temple, Pune University, Pataleshwar temple, tribal museum, Raja Kelkar museum,
Shaniwarwada, Parvati, Aga Khan Palace, Shinde’s Chhatri, Katraj Snake Park,
and Saras Baug. Tour ends in the evening.

Example 10.5
Itinerary for Romantic Escapade in Goa three nights/four days (for
honeymoon couple)
This is a special luxury package offered by XYZ Travels for newly married
couples to spend their honeymoon in Goa which is one of the most romantic
places.
322 Tourism Operations and Management

Overnight
Day Activity/Programme
LE
Arrival Goa by air. Meet and greet by XYZ Goa
1
representative. Transfer to the hotel by a The Marriott
Mumbai
non-AC Indica car. Check-in at hotel.
Champagne and cute heart shaped chocolates
in the room. Rest of the day at leisure. A candle
light dinner in the room and overnight at the hotel.
2 Breakfast at the hotel at Palmaeri restaurant. Goa
Goa Half day sightseeing. Visit Bom Jesus church, The Marriott
beaches of North or South Goa. A relaxing
body massage. Dinner and overnight at the hotel.
3 Breakfast at the hotel in Palmaeri restaurant. Goa
Goa Day at leisure. Dinner at Wan Hao/Simply Fish The Marnott
and overniaht at the hotel.
4 Breakfast at the hotel. Transfer to the airport for
onward journey.

Tour Cost: Rs 15,200 per person.

Tour cost includes

airfare BOM - GOI - BOM

accommodation on twin sharing basis
all currently applicable taxes
breakfast and dinner on all days
a non air-conditioned car for transfers and sightseeing in Goa
Exclusive highlights of the tour
a candle light dinner in the room.
cupid’s Bay view room
champagne and cute heart shaped chocolates in the room
midnight steam and Jacuzzi
souvenir gift on departure courtesy XYZ Travels
Tour cost excludes

any personal services such as tips, laundry, etc.

lunches
entrance fees
guide
porterage at airport
 Itinerary Planning 323

Example 10.6
Tour Itinerary for Fairy Queen
The Fairy Queen is a sixty seater luxury train built in 1855. The Indian Railways
offers a unique two-days all inclusive package tour on the heritage chair car
from New Delhi to Alwar, Rajasthan.

Day 1 Saturday
LAE
See ee
0830 hrs Reporting at the Delhi Cantonment railway station
0900 hrs Fairy Queen departs
1300 hrs Lunch on Board
1500 hrs Arrival Alwar Railway Station
1520 hrs Arrival Sariska by air-conditioned coach
1630 hrs Arrival Hotel Tiger Den (RTDC)
1930 hrs Theme dinner/Night Stay at Hotel

Day 2 Sunday
0630 hrs Jeep safari for Sariska National Park
0930 hrs Return from Sanctuary and breakfast at Hotel
1200 hrs Departure Sariska by air-conditioned coach to Alwar Railway Station
1245 hrs Arrival Alwar Railway Station
1300 hrs Fairy Queen leaves Alwar
1320 hrs Lunch on Board
1600 hrs Light Refreshment on Board
1845 hrs Fairy Queen arrives at Delhi Cantonment Station
eee ee

Special attractions
e Cultural programme and theme dinner, night stay at the Hotel Tiger Den.
e Jeep safari for the Sariska National Park.
Tour cost includes

e all meals
e pickup, drop and sightseeing by air-conditioned coaches
e jungle Safari in open jeeps (05 tourists in each jeep)
Tour does not include

e personal expenses
e entrance fees during sightseeing
e any other item not specified
324 Tourism Operations and Management

Example 10.7

Tour Itinerary for Deccan Odyssey

luxury trains of India
The Deccan Odyssey is the newest and one of the finest
super deluxe train has
with all the modern facilities available on board. This
ys.
been launched by MTDC in association with the Indian Railwa
nights/ eight days of memorable
The itinerary of Deccan Odyssey includes seven
, caves,
visits to many beautiful cities, historical monuments, exotic beaches
pati Shivaji
temples, etc. The train leaves Mumbai on Wednesday from Chhatra
Terminus.
Day 1 Wednesday
Departure in the evening from Chhatrapati Shivaji Terminus (CST) Mumbai
Day 2 Thursday
Morning arrival at Ratnagiri Railway Station. Departure by AC bus for Ratnagiri
town excursion. Visit Thibaw Palace, Bhatye viewpoint, local markets and
Lokmanya Tilak’s memorial. Proceed to Ganapatipule Beach.
Lunch and free time at Ganapatipule beach resort. Noon (Optional): Tuk-Tuk
ride in and around Malgund. Late in the afternoon proceed to Jaigad Jetty for
backwater cruise. Board the bus for Ratnagiri railway station. Board the train.
Dinner on-board.
Day 3 Friday
Morning arrival at the Sindhudurg Nagari Railway station. Departure by AC Bus
to Malvan Jetty. Visit Sindhudurg fort. From jetty proceed to Tarkarli beach
resort. Lunch and free time at Tarkarli beach resort. Enjoy backwater cruise.
Visit Laxmi Narayana temple, lacquer handicrafts, paintings and furniture at the
“Shilpagrama” the art and craft centre at Sawantwadi town. Watch cultural
programme performed by local artist. Late in the evening board the train at
Sawantwadi railway station. Dinner on-board.
Day 4 Saturday
Morning arrival at Karmali, Goa. Board the bus to reach Old Goa. Visit St. Augustine
Church, Basilica of Bom Jesus, Church of St. Francis.Departure to Hotel. Lunch
and Free time on the beach. Evening board the train from Madgaon railway
station. Dinner on-board.
Day 5 Sunday
Morning arrival at Kolhapur City. Board the bus to visit New Palace, Bhawani
Mandap, Mahalaxmi temple, Shalini Palace. Watch cultural programme and visit
handicraft stalls. At noon board the train at Kolhapur station to depart fo
Pune. Lunch on-board. On arrival at Pune board the bus to visit Raja Dinka
Kelkar Museum. Board the train from Pune railway station. Dinner on-board.
 Itinerary Planning 325

Day 6 Monday
Morning arrival at Daulatabad station. Proceed by road to visit Daulatabad,
Ellora caves, a World Heritage site. After lunch visit Bibi-ka-Maqbara. Optional:
Back to train. Free time to shop Paithani, Himroo, Bidriwork from showrooms.
Evening board the train from Aurangabad railway station. Dinner on-board.
Day 7 Tuesday
Morning arrival at Jalgaon railway station. Board the bus to visit Ajanta caves—
World Heritage site. At noon board train at Jalgaon railway station. Proceed to
Nashik. Lunch on-board. On arrival at Nashik Road railway station board the bus
to visit Panchawati Ghat, Kala Ram Temple. Evening board the train at Nashik
railway station. Farewell dinner on-board.
Day 8 Wednesday
Morning—Arnval at CST, Mumbai
Journey ends

Example 10.8
Tour Itinerary for Palace on Wheels
A royal holiday in historic coaches representing the princely states of colourful
Rajasthan. One can board the Palace on Wheels for a week-long luxury cruise
through fascinating Rajasthan. The train leaves New Delhi on Wednesday from
Safdarjung Railway station.
Day 1 Wednesday
New Delhi Tour begins at 09.30 hrs.
After a day tour of New Delhi's India Gate, Lotus Temple, Qutab Minar, and
more sights and lunch at a restaurant the group moves to the station. Reporting
Time 16.00 hrs. Dep. 18.30 hrs.
Departure from Delhi Safdarjung Railway station.
Day 2 Thursday
Jaipur Arrival 03.00 hrs. Departure 19.30 hrs.
Visit Hawa Mahal or the Palace of Winds, Amber Fort with elephant ride.
Lunch at a five star hotel followed by visit to City Palace, Museum and Observatory.
Day 3 Friday
Jaisalmer Arrival 09.00 hrs. Departure 23.45 hrs.
Visit the yellow sandstone fort, Nathmalji-ki-haveli, Patwon-ki-haveli and
Salim Singh-ki-haveli. Shop for fine pattu shawls, mirror work and embroidered
articles, wooden boxes, trinkets, silver jewellery and curios. After lunch on
326 Tourism Operations and Management

board enjoy camel ride on the sand dunes of Sam. Dinner and cultural porgramme
at a Five Star hotel.
Day 4 Saturday
Jodhpur Arrival 07.00 hrs. Departure 15.30 hrs.
Visit Mehrangarh Fort, the grand palaces within—Moti Mahal, Sheesh Mahal,
Phool Mahal, Sileh Khana, and Daulat Khana. Near the fort complex lies Jaswant
Thada, and a group of royal cenotaphs made of white marble. After lunch at a
Palace hotel, return to the Palace on Wheels. Shop for exquisite handicraft
articles including the famous breeches, embroidered shoes, metal curios,
silverware, paintings and tie and dye fabrics while at Jodhpur.
Day 5 Sunday
Sawai Madhopur Arrival 04.00 hrs. Departure 10.30 hrs.
After breakfast visit Ranthambhor National Park, covering an area of 392 sq.
kms. and home to more than 300 species of birds, the tiger, hyena, ratel, jackal
and fox, etc. Upon return to the Palace on Wheels, departure for Chittaurgarh.
Day 5 Sunday
Chittaurgarh Arrival 16.00 hrs. Departure 05.30 hrs (next day). After lunch on
board visit Chittaurgarh Fort. Proceed to Udaipur.
Day 6 Monday
Udaipur Arrival 07:30 hrs. Departure 17.30 hrs.
On arrival at Udaipur, the Lake City, visit marble palaces—the Jag Niwas
(Lake Palace) and the Jag Mandir, near Lake Pichhola. After lunch at a Five Star
Hotel, a visit to the City Palace.
Day 7 Tuesday
Bharatpur Arrival 06.30 hrs. Departure 11.45 hrs.
After breakfast visit the world famous bird sanctuary, Keoladeo Ghana National
Park, the nesting place for thousands of Egrets, Siberian Cranes, migratory Water
Fowl, and other species of birds.
Day 7 Tuesday
Agra Arrival 14.30 hrs. Departure 22.00 hrs.
Visit to Fatehpur Sikri and the world famous Taj Mahal.
After dinner on board and a good night's sleep arrive at Safdarjung Railway
Station at 06.00 hrs. on Wednesday.

Planning itineraries, as we have just read is not a simple task and

requires detailed knowledge about the product as well as details about
the client especially for customized tour itineraries. The tourism
professional should ideally visit the destination and posses first hand
 Itinerary Planning 327

updated information about the tour. The costing of the tour should be
done carefully to cover all heads of expenditure and ensure that the tour
rates are competitive yet profitable to the travel agency.

SUMMARY
Itinerary planning requires detailed and thoughtful planning, as it is one of the
major operations for a travel agent and tour operator handling all kinds of
tours. Besides seeing the customer's likes and dislikes the travel agent and tour
operator also has to consider certain other external factors of a destination
such as the political stability, the climate, etc. while planning any itinerary. The
travel agent and the tour operator should be well versed with all the basic
requirements for making an itinerary. The tour professional should have a sound
knowledge of the geography of the place, the climatic condition, the best season
to visit a particular destination, the duration of stay required at the destination,
the distances in kilometres, different mode of transport available, hotels,
shopping, and any fairs and festivals, etc. All the information required for planning
an itinerary can be gathered from the state tourism offices, guidebooks,
periodicals, journals, national and international tourist organizations, brochures
of tour operators, colleagues, feedback from clients, Internet, etc.
After planning the itinerary, making reservations for hotels and transport,
the next job is costing of the tour. The tour professional has to negotiate with
the suppliers to get the best possible rates. While doing the costing the profit
of the firm should be taken into account. All the basic costs of accommodation,
meals, transport which may be airfare, train fare or car/coach travel depending
on the size of the group, entrance fees, guide fees, miscellaneous charges, mark
up, etc has to be included for costing a tour. The tour cost is given on an
individual basis, i.e. per person cost, which can be on double occupancy or
triple occupancy as per the requirement.

KEY TERMS
A la carte A separate price for each item on the menu.
American plan (AP) Hotel accommodation, which includes three meals in the
room rate.
Bermuda plan (BP) Hotel accommodation with a full American style breakfast
included in the room rate.
Check-in A process at the airport, which includes checking documents, issuing
a boarding pass and accepting baggage and permitting the passenger to go
328 Tourism Operations and Management

to the departure lounge. In the hospitality industry it means greeting and

registering a guest, verifying the method of payment and handing over room
keys.
Check-in time Time at which a passenger should report and register at an
airport terminal. In a hotel it is the time at which the room is ready for
occupancy.
Circle trip A travel plan with stop over which returns to the point of origin by
a different route and does not retrace the route.
Continental breakfast A light breakfast which normally includes beverages such
as tea, coffee, cocoa and milk; bread rolls, butter and preserves such as jam/
marmalade.
Continental plan (CP) Hotel accommodation which includes a continental
breakfast in the room tariff.
Double occupancy A room rate for two adults occupying the same room.
Double room A room with a double bed, suitable for two adults.
English breakfast A heavy breakfast which includes fruit juices, breakfast cereals,
variety of egg preparations, meats, toast, and beverages
European plan (EP) Hotel accommodation in which no meals are included in
the room tariff.
Group inclusive tour (GIT) When a particular number of passengers travel
together they pay a subsidized GIT fare.
Incentive travel A specially designed trip arranged for agents or employees of
a firm along with their spouses as a reward for outstanding performance
Miscellaneous charges order (MCO) Proof of prepayment. A voucher authorizing
specified services to be provided to the person’s named on the voucher or
form.
Modified american plan (MAP) Hotel accommodation in which breakfast and
either lunch or dinner are included in the room tariff.
Off-season rate Highly discounted room rates offered during lean season or a
period of low occupancy.
Package A combination of travel related services such as air transportation,
accommodation, car rental, etc.
Persons approximately (PAX) It means number of people which can fit into a
particular space.
Plan A room rate, which is inclusive of meals.
Rack rate The normal published tariff of the hotel room, which is offered to the
general public, without any discounts.
Room rate The price of a particular room in the hotel based on its location,
size, bedding, amenities, and occupancy.
Single A room rate for one adult staying in the room.
 Itinerary Planning 329

CONCEPT REVIEW QUESTIONS

1. Define itinerary planning.
2. What kind of basic information is required from the clients for planning an
itinerary?
3. What are the benefits of a group tour? How does it work out cheaper than
the regular tours?
4. Give the importance of the information required of the number of people
travelling.
5. Different people have different energy levels. Comment.
6. Give the importance of climate while planning an itinerary.
7. What are the basic steps to be followed while planning any tour itinerary?
8. List the basic items included in the costing of a tour.
9. Explain mark up, net rate, gross rate.
10. Discuss the importance of product knowledge in itinerary planning.
11. What all things should be considered while costing a tour?

PROJECTS/ASSIGNMENTS

1. A school approaches your travel agency for a study tour of 7-8 days for
their students of age group of 13-14 years. How will you go about it?
2. A couple approaches you for a weekend tour. What suggestions will you
give them? Plan an itinerary for the same.
3. Plan an itinerary for a honeymoon couple to a nearby destination for 3-5
days.

REFERENCES
Foster, D.L. 1994. First Class: An Introduction to Travel and Tourism, Second
Edition, McGraw-Hill Book Co, Singapore.
IGNOU, TS-3 - Managerial Practices in Tourism - 1 Block.
Reilly, R.T. 1991. Handbook of Professional Tour Management, Second Edition,
Delmar Publishers Inc, Canada.
 cigs |ER.

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Learning Objectives
After reading this chapter you should be able to:
e understand the concept of tourism product
© understand the nature of tourism product
know the special characteristics of a product in tourism
e differentiate among the terms—tourism product, attraction, and destination
classify the types of tourism product
e differentiate between tangible and intangible products

INTRODUCTION

hen tourists decide to travel to a particular destination, they

look forward to a pleasurable experience in terms of a safe
and comfortable journey, good accommodation and meals,
interesting attractions and leisure activities. These are the expectations
or products, which the tourist is willing to spend money for. All these are
components of the tourism product. Before we define ‘tourism product’
let us understand the meaning of the term ‘product’.
A product in general can be a thing, a place, a person, an event, etc.
which satisfies the needs of the person purchasing the product. The
product which is offered to the consumer must have some need satisfying
 Tourism Product 331

qualities. This product can be exchanged for some value. The value is of
importance for mutual satisfaction for both supplier (producer) as well as
the receiver (consumer) of the products.
The product is always characterized by ‘pull factors’ and it motivates
the consumer to purchase it as it has the ability to satisfy a need of the
consumer. Thus, a product is anything that can be offered to the market
for attention, acquisition, or consumption and is capable of satisfying a
need or want.
The tourism industry is a service industry and provides products which
are nothing but services. The service product refers to an activity or a set
of activities that a marketer offers to perform, resulting in satisfaction of
a need of the customer or the target market.
Products which fulfill or satisfy the customers’ leisure, pleasure, or
business needs at places other than their own place of residence are known
as tourism products.
A tourism product can be either a tangible item, for example, a
comfortable seat in an aircraft or the food served in a restaurant or an
intangible item, for example, the quality of services provided by a cruise
liner or scenic beauty at a hill resort. In general, in almost all the cases,
the tourism product is a combination of both tangible and intangible
items. This combination of different components results in giving the
tourist the total travel experience and satisfaction.
Philip Kotler (Kotler and Keller 2006) defines the concept ‘service’ as
a product from marketing viewpoint. ‘A service is any act or performance
that one party can offer to another that is essentially intangible and does
not result in the ownership of anything. Its production may or may not
be tied to a physical product.’
The product from the tourism industry perspective can be viewed at
two levels. They are as follows:
1. The total product which has a combination of all the service
elements consumed by tourists throughout the entire tour. This
product can be an idea or an expectation.
2. The explicit components of tourism products, such as attractions,
accommodation, transport, and other facilities which are elements
of the total tourist product.

DEFINITION
The product in tourism industry is the complete experience of the tourist
from the time the tourist leaves home till the time he/she returns back.
332 Tourism Operations and Management

The product may be defined as the ‘sum total of physical and psycho-
logical satisfaction it provides to the buyers’.
In the tourism industry, the basic raw material used in the formulation
of a tourism product is the country’s natural beauty, its climate, history,
culture, and the people. The other essential elements are the existing
facilities or the infrastructure, which are necessary for the stay to be
comfortable and it includes water supply, electricity, roads, transport,
communication, services and other ancillary services (refer to Chapter 4).
Thus, we can understand that the tourist/tourism product is the sum
total of a country’s tourist attractions, transport systems, hospitality,
entertainment, and infrastructure which is offered to the tourist, and if
well designed and developed, will result in consumer satisfaction.
Tourism products are nothing but various services offered to the
tourists, and falls under the category of service product (see Fig. 11.1).

Travel
insurance

Guide and Travel agent

escorts ae
tour operator

Transport

Visa and |
passport Attraction Amenities Ba
offices ap xe = ca i
airports
as : ez
Tourism
Product

7/ \s

Custons Catering Accommodation Bank and

sonlced / \ eeasnce
exchange

Tourist Govt and

information private
centres organizations

Fig. 11.1 The tourism product is an amalgamation of a variety of goods and services
Source: Adapted from Jha (1995)
 Tourism Product 333

-HARACTERISTICS OF TOURISM PRODUCTS

Tourism products are mainly service products or services which have

several characteristics like intangibility, inseparability, perishability,
variability, etc. (see Fig. 11.2).
For example, in business tourism, conference planning and
management is a service offered by large hotels and convention centres.
Fairs and festivals are events which are offered for enjoyment only at a
particular time of the year and these are perishable and variable. In India,
cultural attractions in the form of dances and music can be seen and
enjoyed. Other products which tourists consume like wildlife, and flora
and fauna are natural products.

Intangibility
Commodities are tangible products which have physical dimensions and
attributes which can be seen, touched or, tasted while service products

Many
products

Absence Highly unstable

of demand or
ownership seasonality

Dominant :
Tourism infanaibilit
ntangibility
: role of Product
intermediaries

Variability
and no quality Inseparability
control or
standardization

Perishability

Fig 11.2 Distinct characteristics of tourism product

334 Tourism Operations and Management

are intangible and cannot be seen, touched, or measured, but can only
be experienced. The tourism product can be anything like a package
tour, an airline ticket, or a stay in a hotel. The purchase of a package tour
to the Far East is nothing but purchasing an experience or buying a dream
as we cannot show the product we have purchased to our friends.
The timely performance, efficiency of service, getting the baggage
quickly are the intangible items of tourism product. These aspects are
very important for the business travellers who travel frequently. Similarly,
noisy air-conditioners, other guests talking loudly in the restaurant, etc.
are all part of the meal experience which is real but intangible and even
though the tangible aspect, ie. the meal served is good, the overall
experience is poor. The product has both tangible and intangible elements.
Intangibility means the product cannot be directly seen, tasted, felt,
or heard prior to the purchase and consumption. The only tangible item
we get before purchase are the tickets or receipts for payment we have
done. .
And after consumption of the product we have memories of the tour
which are intangible. The tangible items from a tour are in the form of
souvenirs.

Inseparability
Consumer products, for example, a motorcycle manufactured at New
Delhi can be brought to a Mumbai outlet and sold there. In case of tourism
industry the products are mostly services which cannot be separated from
the person or the company that provides it.
This can best be explained by a guide or escort who provides the
services to the tourist. The guide has particular skills which are used
along with the infrastructure such as any monument or place of attraction.
The guide has to go physically with the group to explain the monument.
Here the service is inseparable and the product exists only when the
consumption takes place.
The production and consumption of the product occurs simultaneously
and cannot be separated. The tourist has to go to the site of production
to utilize the product. For example, the courtesy shown by an airhostess
while serving a meal on board can only be experienced in the aircraft by
the passenger and not before or afterwards as the production and
consumption cannot be separated.
 Tourism Product 335

Perishability
Any tangible good or product can be manufactured and stored for a
certain period of time and sold or used at a later date. For example, pens
can be manufactured, stored in the warehouse for few months, and can
be sold when there is a demand.
However, the service product cannot be stored in a warehouse and
sold at a later date. For example, the airline cannot store 100 unsold seats
of a flight scheduled to depart on 12 March 2008 to sell it on 13 March
2008. The unsold seats have no value at all. The service industry faces
such problems due to fluctuating demands, as demand for air travel is
more in mornings and evenings, or in some sectors which are heavily
booked, while in other sectors, seats may remain unsold.
To avoid the loss of unsold products and overcome the losses incurred
due to the perishable nature of the product, the airlines offer last minute
sales or standby rates at drastically reduced rates. These rates indicate
that although they are not getting profit they are minimizing losses and
at least earning some revenue.
It is due to perishability that the hotel industry also offers heavy
discounts along with transport operators especially during off season.

Variability/Heterogeneity
In tourism industry, services are rendered by humans to humans. These
services have a high level of variability, when producer and consumer
interact. The human element makes standardization of the product a
difficult task. The services rendered vary from person to person and
from time to time.
The guide’s or escort’s behaviour may not be consistent every single
day. Family problems, ill health, or stress may affect his/her interest in
the job, concentration in his/her work and ultimately his/her performance.
Good tidings, minimum personal problems, and an interested audience
help in boosting one’s performance. The waiter in a restaurant will not
be uniformly efficient on all days of the week for similar reasons.
To avoid variation in services and to maintain the standards in delivery
of the products, the hotel industry, tour operators, and airlines have
introduced computerized reservation systems (CRS). Such systems
minimize human contact and errors. The tourism service providers also
provide training to their staff who need to directly interact with the tourist.
336 Tourism Operations and Management

Major travel companies who have their branches all over the world,
have developed standard operating procedures (SOPs) to maintain
uniformity in rendering services.

Dominant Role of Intermediaries

In all the industries, manufacturers play a major role in product
components, design, distribution, promotion, and pricing. This is not
the same in the tourism industry. Sale intermediaries such as tour
operators, travel agents, reservation agents, hotel brokers, etc. play a
dominant role. They enjoy a superior position in travel trade. They are
the ones who decide to a large extent which services will be sold and to
whom. They also decide at what time and which types of services are to
be offered as well as pricing policies and promotion strategies.

Absence of Ownership
If you buy a computer, the ownership of the computer is transferred to
you but when you hire a car, you buy the right to be transported to a
predetermined destination at a predetermined price. The tourist or
consumer cannot own the car or the driver of the car. The same is the
case with the hotel industry. The hotel rooms can be used by a tourist
during the hotel stay and the tourist acquires the right to certain benefits
that the seller or hotel offers, but the ownership of the rooms remains
with the hotel.
This can be further explained by a tourist purchasing a ticket of Deccan
Odyssey, the exotic journey showcasing the rich cultural heritage of
Maharashtra, or an aircraft which brings the tourist to the destination.
The ticket allows them to use the services on board which they offer, but
the customers do not own the product.
The tangible product can be bought and ownership can be transferred
to the buyer whereas the tourism product being a service product, services
can be bought for only consumption. The ownership remains with the
person or organization which is providing the service. Kathakali, the
famous dance from Kerala can be enjoyed by viewing it, but the dancer
cannot be owned.

Manufactured by Many Producers

In case of tangible products, one manufacturer produces a total product.
In tourism industry, the tourist product cannot be provided by a single
 Tourism Product 337

enterprise. Each of the components of the tourist product is highly

specialized and when combined together makes the final product.
The hotel industry produces guest nights or hotel rooms, and airlines
fly passengers as their products. The travel agent’s products are the
bookings done on that day and in case of a museum or an archeological
site, the product is measured on the basis of the number of visitors who
visited the site on that day.
But from the tourist’s point of view, the product he/she purchased
was a single product—a Kerala package tour which covers the complete
experience of his/her visit to a destination. The Kerala package tour is a
total product for the tourist.
In other words, to a tourist, tourist product is not an airline seat or a
hotel room or ticket to museum or guide services but it is a combination
of all the above stated services manufactured by different producers which
makes a complete product.
This is peculiar to tourism product and hence requires greater co-
ordination in marketing the product.

Highly Unstable Demand/Seasonal Product

The demand for tourist products depends on many factors such as season,
economy of the destination, political factors, social factors, etc. Except
for the seasonal factor all other factors can be made favourable. Season
is a factor which affects the tourism industry greatly.
Seasonality means the time period when the tourist destination is
frequently visited by tourists which is for a limited period of the year.
Almost all tourist areas have a short season which is called peak season
which often may be as short as three months.
This seasonal usage of the product creates unemployment and also
has an impact on transportation and hospitality services as well as most
other services.
Along with unemployment, investment is greatly affected by
seasonality.
Political unrest and economic instability caused by currency fluctuation
and inflation have an impact on tourism demand but this may be
temporary.
To tackle the problem of seasonality and unstable demand, the sup-
pliers of tourism services have different pricing strategies. For example,
the hotel tariff will be higher in peak season, in mid-season it will be
moderate and in lean or off-season the rates of the product will be very
low, i.e. off-season discounts are offered to combat the problem of
338 Tourism Operations and Management

seasonality. Sometimes the product is also offered in combination with

other products like a package tour.

NATURE OF TOURISM PRODUCT

The nature of tourism product comprises two different types of travel to
the destination. These are non-discretionary and discretionary travel.
In non-discretionary travel, undertaking travel is a must and the
traveller has to travel to a particular destination and does not have much
choice. These are business travellers travelling to attend a conference or
a family travelling to their hometown for a wedding or a funeral, or a
student flying back to college, etc.
Discretionary travel is concerned with choice; the traveller can select
the destination/attraction and time of travelling, for example, to stay at
home and relax, drive to a nearby beach resort, or fly to Malaysia for a
vacation.
Both these travel segments have different needs and wants. For
example, advertisement will affect the discretionary traveller because of
choice.
In both the discretionary and non-discretionary travel, the nature of
tourism product is the purchase of intangible services.

TYPES OF TOURISM PRODUCT

The tourism product which is a combination of tangible and intangible
products can be a thing, an event, or a place which motivates the tourists
towards it.
There are three ways in which tourist products can be classified (see
Fig. 11.3).

Natural, Human-made, and Symbiotic Tourism Products

Natural tourism products are the natural attractions found all over the
world like beaches, deserts, hills, mountains, climate, flora and fauna,
islands, etc. These are nature’s gifts to human beings.
Human-made products include fairs, festivals, cuisine, architecture,
monuments, shopping, etc. Entertainment centres in the form of a theme
park such as Disneyland, USA or the shopping festival at Dubai, etc. are
also created products which offer a wide range of services for pleasure,
leisure, or business.
 Tourism Product 339

Tourism Product Tourism Product

Natural Human-made Symbiotic Event based Site based

(a) Classification based on attractions (b) Classification based on destination

Tourism Product

lent eee ee
Activity based Event based Site based Destination based Packages and Tourism circuit
programmes
(c) Classification based on category of product

Fig. 11.3 The tourist products can be classified in many ways

Symbiotic tourism product does not come under natural or human-

made category. Marine park, flower festival, wildlife sanctuary, water
sports are few examples of tourism products which are combination of
products created by blending natural attractions and built attractions.
The resources are provided by nature which are converted into the
product by humans. But nature remains the core attraction and these are
best examples of a symbiotic association of nature and humans.

Event-based and Site-based Tourism Product

In an event-based product, the event is the core element in the tourism
product, for example, the Goa carnival in Goa, the Khajuraho dance
festival at the Khajurao temples or the World Cup cricket matches are all
event-based tourist products where tourists visit the destinations to attend
the event. These events are seasonal.
In a site-based tourism product, it is the site which motivates the tourist
to visit the place such as the Taj Mahal at Agra, Corbett National Park at
Nainital, river rafting in Karnataka, etc.
Site-based products are open to tourists practically throughout the
year.

Based on Category of Product

Here the products are visualized as a continuous whole or as a series
ranging from a simple activity which may constitute the product to an
340 Tourism Operations and Management

entire circuit. Continuous product are based on activity, event, site, desti-
nation, package, and tourism circuit.

Activity-based
The activity-based tourist product centres around the active participation
of tourists. In adventure sports, for example, paragliding, the tourist has
to undertake the activity.
These activity based products are related to human-made activity and
nature supported activity. Adventure sport is an example of nature
supported activity. Tourists have to visit a souvenir shop to purchase
handicrafts which is an example of human-made activity.

Event-based

There are many events which attract tourists. For some events the places
are fixed such as Elephanta festival, Mumbai and for some the places
vary such as the venue for the Olympic games. Tourists visit such places
as spectators or as participants.

Site-based

Sites also offer attractions. These sites are specific. Museums at New York,
Temples of Hampi, or beaches of Hawaii are all destination specific sites.

Destination-based
Many cities in the world are themselves a tourist attraction. The city
itself may attract tourists specially if they are country capitals or state
capitals, for example, Washington DC, New Delhi, Mumbai, etc. These
cities also offer plenty of other attractions to the tourist.

Packages and programmes

Under this category come the offers which are complimentary and are
offered by service providers. For example, free casino tickets to
participants of a conference. These add-ons increase the attraction of the
tourist product. Programmes are add-ons or optional products offered to
customers. They are always provided with core attractions which make
the product more effective and attractive. For example, post conference
excursion tours. These tours are beneficial to service providers as delegates
get to see new places and in turn spend more money at the attraction.
 Tourism Product 341

Delhi-Jaipur = 261 km
Jaipur-Agra = 228 km
Agra-Delhi = 200 km

JaipurOZOAsgra

Fig. 11.4 The Golden Triangle circuit

Courtesy: Rohit Sanas

Tourism circuit

They are a combination or multiple chain of destinations marketed as

one product. Circuits are always beneficial to tourists as they offer a
variety of attractions which are otherwise not possible to experience.
For example, pilgrimage circuits like the Buddhist circuit and Char Dham
yatra. Char Dham includes Gangotri, Yamunotri, Kedarnath, and
Badrinath as one product. Figure 11.4 shows us the Golden Triangle circuit
in India.
As we see, many types of tourism products are available while many
more are being developed to attract tourists to the destination. It is the
overall quality of the tourism product which determines the tourist
experience and tourism planners should design products keeping tourist
satisfaction in mind. This is a challenging task because of the unique
nature of the tourism product.

SUMMARY
The product in tourism is a service product and refers to an activity or set of
activities that a marketer offers to the customer and results in satisfaction of a
need or want.
342 Tourism Operations and Management

It fulfils the customer's pleasure, leisure, or business needs at places other

than their own place of residence. The tourism product differs from the
manufactured product or goods. Goods or commodities are tangible products
which can be seen or touched while the tourist product is a service product and
has both tangible and intangible elements. The characteristics of tourism products
are perishability, heterogeneity, lack of ownership, dominant role of
intermediaries, intangibility, inseparability, and seasonality. A tourism product
is an amalgamation of a variety of products and services offered by many
producers. The tourism product which is a combination of tangible and intangible
products can be a thing, an event, or a place which motivates the tourist
towards it and can be largely classified as natural and human-made products.

KEY TERMS
Inseparable Cannot be separated from the person responsible for providing
the service.
Intangible Something which cannot be seen, felt, smelt, or tasted but can
only be perceived.
Perishable product A product which has a particular life span after which it
does not have any value. Cannot be stored.
Supplier of services The tourism suppliers which provide services to the
intermediaries like airlines, hotel industry, etc. to sell.
Tangible product The product which can be seen and touched by human beings.
Target market The selected market used to attract potential tourists.

CONCEPT REVIEW QUESTIONS

1. Define tourism product. How is the tourism product different from the
commodity product?
What are the distinct characteristics of a tourism product?
Explain the role of intermediaries in manufacturing the tourism product.
Explain the effect of seasonality on tourism product.
How can you classify tourism products?
PP
W
kK
Am State whether the following sentences are ‘true’ or ‘false’.
(a) Tourists can see the tourism product before the purchase.
(b) The ownership of tourism product is not transferred to the tourist.
(c) The tourist season cannot be extended.
(d) Political situation and economy of the destination do not have any
impact on tourism product.
 Tourism Product 343

CRITICAL THINKING QUESTION

Identify and briefly describe the tangible and intangible aspects of the services
provided by the following:
(a) An airline (b) A fine dining restaurant
(c) A theme park (d) A museum

PROJECTS/ASSIGNMENTS
1. Identity the tourism products available in your city and classify them
based on the category of the product.
2. Prepare a collage of tourism products available in your state.

REFERENCES
Bhatia, A.K. 2001. International Tourism Management, Sterling Publishers Pvt.
Ltd, New Delhi.
Gupta, I.F. and S. Kasbekar 1995, Tournssm Product of India, G.A. Publications,
Indore.
IGNOU Booklets for Tourism Studies and MTM programmes.
Jha, S.M. 1995, Tourism Marketing, Himalaya Publishing House, Mumbai.
Keyser, H. 2002, Tourism development, Oxford University Press Southern Africa,
Cape Town.
Kotler, P. 1996, Marketing for Hospitality and Tourism, Third Edition, Pearson
Education, Delhi.
Kotler, P and K. Keller, 2006, Marketing Management, Tenth Edition, Dorling
Kindersley Publishers, New Delhi.
 S20es
OER
_ { S SS

‘Tourism Marketing

Learning objectives
After reading this chapter you should be able to:
define and explain the terms market, marketing, and selling
explain the concept of marketing and need for market segmentation
understand the need for market research and for forecasting the demand for tourism products
identify the components of the tourism marketing mix
appreciate the characteristics of the tourism product and its effect.on marketing
appreciate the role of FAM tours in tourism promotion
understand the reasons and problems of seasonality in tourism
know how a tour brochure is designed

INTRODUCTION

arketing has been recognized as the most important

management activity in the tourism industry today. Being the
fastest growing industry in the world, the world tourism
arrivals and receipts have shown a steady growth. The number of people
directly employed in this industry as well as the foreign exchange receipts
is on the rise. |
 Tourism Marketing 345

The principal suppliers of tourism products and services, such as

airlines, hotels, car rentals, travel agencies, etc. are growing in number
and there is strong competition amongst them. Their survival and growth
in the tourism industry will depend to a large extent on their marketing
approach.
Countries are competing with each other to market their destinations;
travel agents, and tour operators compete to market package tours; hotels
compete with one another to sell their rooms; and airlines compete with
each other to market their seats (see Fig. 12.1). Competition is seen in all
service sectors like restaurants, transporters, event managers, guides,
escorts, and in all secondary constituents of the service industry. It is
especially important because of the perishable and intangible nature of
the tourism product, and requires a professional approach. Before we
study about the need for tourism marketing, let us understand the meaning
of the term ‘marketing’ and see how it differs from ‘selling’. The terms
marketing and selling are often misunderstood; marketing means much
more than simply selling or promoting a product.
The term market was originally used to describe a physical place where
buyers and sellers gathered to exchange goods and services. To a marketer,
a market is the set of all the actual and potential buyers of a product.
Suppliers of tourism products have realized that their products cannot
attract the buyers in the market or not all the buyers in the same way.
Buyers are too many, widely scattered across the globe, and differ in
their needs.

Globalization—MNCs
Large number of entering the market in
players and highly a big way equipped
competitive market with marketing skills

tase eat
Need for Tourism
Marketing

Interdependent nature
of hospitality and travel Increase in market
industry. Success depends size and customer
on teamwork of tourism expectations
industry team

Fig. 12.1 Some of the reasons why marketing of tourism products is necessary
346 Tourism Operations and Management

Sellers have recognized the need to identify their market segment

and target that market. In this case the seller develops products and
marketing mixes to meet the demands of the selected market segment.
to
For example, Meadowlea developed salt and cholesterol-free spread
meet the demands of people suffering from lifestyle-related diseases.
Target marketing helps sellers to focus their marketing efforts and
promotional campaigns on existing and potential buyers instead of
diluting the effort through mass marketing. Organizations can develop
the right product for each target market.
Suppliers of tourism products and services have realized that to remain
in business they should know what the customer’s needs, wants, and
expectations are. Their business should focus on creating and maintaining
satisfied profitable customers. Customers are attracted and retained if
their needs are met. If their expectations are exceeded, they are overjoyed
and they talk favourably about their experience. This is what tourism
marketing is all about—‘customer satisfaction’ and ‘customer delight’.
Satisfied customers return to the same travel agent, restaurant, hotel,
cruise line, or car rental firm and keep these suppliers in profitable
business. The aim of marketing, therefore, is to know and understand
your customer so well, that the product or service you are selling fits
their requirement perfectly and they buy it without your having to make
much effort to sell the product.

DEFINITION
Tourism marketing is a continuous sequential process in which the
management plans, researches, implements, monitors, and evaluates
activities which have been designed for satisfying the needs and wants of
tourists and for fulfilling their own organizational objectives. Successful
marketing requires that all employees in an organization work towards
the organizational objectives.
The purpose of any business is to create and maintain profitable
customers and the tourism industry is no exception. The main goal of
marketing for tourism is customer satisfaction leading to profit. Therefore
understanding one’s customers is the bottom line.
Since customers have limited resources and many wants, they choose
products which give value for money.
Marketing activity is carried out based on some concepts. These are
discussed as follows:
 Tourism Marketing 347

Production concept
It believes that consumers will prefer products which are easily available
and highly affordable and that the management should focus on
production and distribution channels. Customer satisfaction tends to get
overlooked.

Product concept
It believes that consumers prefer existing products and these need to be
developed further. They look at the present product with blinkers and
overlook the possibility of developing entirely different products.

Selling concept
It believes that unless the organization concentrates on large scale selling
and promotional activities, the consumers will not buy the product. It
focuses on getting the maximum possible sales through increased
advertising and discounts and not on creating a product to satisfy
customers.

Marketing concept
Marketing concept is a recent business philosophy which believes that
organizational goals can be achieved once we determine the needs and
wants of the target market and deliver the service in a more effective and
efficient manner as compared to our competitors. The target market is
the clearly defined group or groups of potential customers chosen for
specific marketing attention.
The marketing concept starts with the needs and wants of the target
customers and coordinates all activities which affect customer satisfaction,
while the selling concept focuses on the seller’s need. It assumes that
customers will not buy enough of the product unless the manufacturer
uses promotional techniques such as advertising and personal selling. It
points out that goods are not bought, they have to be sold.
The marketing concept focuses on the buyer’s need. It assumes that
when a product meets and exceeds customer’s wants, selling is not
necessary, and a product should sell itself without any extra promotional
effort.
Selling aims at profit through sales volume, i.e. more sales more profit,
whereas marketing aims at profit through serving customers’ needs or
demands. Such companies make profit by creating and maintaining
customer satisfaction.
348 Tourism Operations and Management

Societal marketing concept

The latest marketing concept is the societal marketing concept which
keeps the consumer and the society needs, wants, and interests in mind.
It is based on determining the needs, wants, and desires of target markets
and delivering the service product more effectively and efficiently than
its competitors. Apart from meeting or exceeding expectations, the
consumer’s and the society’s well-being in the long run is focused upon.
For example, airlines and hotels are promoting smoke-free international
flights and no smoking floors to reduce the harmful effects of passive
smoking. The Orchid Hotel, Mumbai, an ecotel, has eco-friendly practices
as its unique selling proposition (USP) and also supports eco-friendly
causes. The customers of such hotels are a part of save your planet
programmes and are also willing to pay a premium for their suites.

MARKET SEGMENTATION
In the marketing context, both the existing and prospective customers
for the product are together referred to as the market. For example, hotels
are used by tourists for board and lodging, when they are on a tour.
Although the need may not be there today, it is likely to be there in
future and hence they are prospective customers and part of the marketing
effort is aimed at such prospective customers. However all persons who
need lodging facilities are not prospective customers for five star hotels.
Many tourists travel on a tight budget and the market for five star hotels
is only a part of the total market of hotel users. Such parts are called
segments of the market. .
Apart from lodging, hotels offer many facilities to people such as fine
dining restaurants, health clubs, discotheques, swimming pools, beauty
parlours, etc. Different groups with different needs and expectations
constitute different segments. For example, some schools have contracts
with star category hotels for teaching swimming to children. The segment
using the pool for training are very different from the regular hotel
guests in terms of age, behaviour, hours spent in pool, use of restaurant
facility, etc.
A segment is discreet, identifiable, and distinguished by characteristics
such as purpose, needs, motivation, behaviour, and benefits.
The tourist market may be segmented on the basis of the following
characteristics:
 Tourism Marketing 349

* geography or place of origin of tourists

¢ demographic characteristics
¢ purpose of travel
¢ psychographic characteristics
¢ behavioural characteristics
¢ income, etc.

We have seen that there are various ways to segment a market and the
next step lies in selecting an effective way so that the best segmentation
base or combination of bases is selected. The segmentation base should
be such that all people within a segment are as similar or homogenous as
possible and the segments are as different from each other. The size of
the target market should be large enough and have long term potential.
They should be easy to reach and accurately selected.
There are two distinct sequential steps called market segment analysis
in market segmentation. They are as follows:
1. Dividing the whole market into groups or market segments with
common characteristics by using specific segment bases.
2. Selecting those market segments or target markets that the
organization is best able to serve.
Markets consist of buyers, and buyers differ from one another in more
than one way. They may differ in their wants, resources, buying attitudes,
and practices. Each buyer is unique, but as it is not possible to create
customized products for each buyer, it is necessary to categorize them
into broad classes or segments with similar characteristics.

Need for Market Segmentation

The basic reason for market segmentation is that if we try to appeal to all
potential customers and have an untargeted approach, our efforts are
wasted. This is because there are groups of customers who are just not
interested in buying our services. Table 12.1 shows the basis for
segmentation.
Good marketing means selecting the segments that are most interested
in specific services and aiming the marketing plan at them. The main
reason for segmentation is to direct or focus our efforts and finances in
the most productive way. This can be done by asking the questions who,
what, how, where, and when.
350 Tourism Operations and Management

Table 12.1 Basis for segmentation

Bases Variables Examples

Geographic Region Continents, countries, states, cities

Population density Less than 5000, 5000-20,000,
20,000-50,000, etc.
Development Rural, urban, suburban, slum
Postal code
Demographic Age Under 6, 6-11, 12-19, 20-34, 35-49,
50-64, 65+
Gender Male, Female
Family size 1-2, 3-4, 5+
Occupation Business/service/retired/student/
housewife/unemployed
Education Primary or less, middle school, X Std,
XII Std, graduate, P.G. and above
Nationality Indian/American/British/French
Purpose of travel Leisure Vacation, VFR
Business Sales and marketing, MICE
Other purpose Health, agro, special interest
Psychographic Social status Lower class, middle class, upper
middle class, upper class
Life style and Activities, interests, and opinions of
personality traits self and the world
Behavioural Use frequency and Frequent travellers, non-users,
usage status, brand previous users, regular and potential
loyalty hard core loyals, split loyals, shifting
loyals, switchers
Annual income Income Below 2 lakhs, 2 to 4 lakhs, 4 to 6
lakhs, 6 to 8 lakhs, 8 to 10 lakhs, and
above 10 lakhs per annum

e Who Who is our target market?

e What What are they looking for?
¢ How How should we develop our marketing programme to fit
their needs and wants?
e Where Where do we launch our promotional campaign?
e When When should we promote our services?
After selecting the target market, we are better focused for identifying
the needs and wants of the group.
There is no single way to segment a market and different segmentation
variables have to be tried out. |
 Tourism Marketing 351 \

Selecting Market Segments

Each market segment has different needs and expectations. Different
organizations cater to the needs of different segments and decide which
segments they would like to cater to. A segment is identified on the basis
of the objectives and capabilities of the organization and the organization
will plan and execute all activities keeping the needs, wants, and desires
of this target market in mind. For example, if the hotel is targeting business
tourists, then it should advertise in business magazines, have conference
facilities such as a conference hall and a business centre with latest
audiovisual aids, teleconferencing facilities, secretarial facilities, wi-fi
connectivity, Internet access in all rooms, have multi-cuisine restaurants,
a bar, and a special floor in the hotel reserved for lady executives.
The business tourist looks for a reputed hotel in a good location, a
large table with bright lighting in the business classroom, data ports for a
modem connection, easy to reach electrical points, multiple phones, and
a comfortable chair.
Once an organization has chosen its target market segments, it must
decide on its market positioning.
A product’s position is the place the product occupies in the consumer’s
mind when it is compared with competing products. Today, the consumer
has access to a lot of information and he/she makes a mental note of a
product and a company’s position. The role of the marketer is to plan
the position to give his/her products the greatest advantage in the selected
target markets and then design marketing mixes to create the planned
positions.
Products are positioned based on specific product attributes. For
example, Kerala advertises its backwaters and ayurvedic massages.
Products are also positioned on the wants they fulfill or the benefits they
offer. For example, Sentosa Island Resort advertises itself as a fun place,
while Dubai promotes its image as a shoppers’ paradise. Products can
also be positioned for certain class of users, for example, Singapore
Science Centre has exhibits ideal for students. A product can be positioned
against the competitor’s product highlighting the location as an advantage.
The marketer must select which of the qualities need to be highlighted
to give it the right competitive advantage. Each product should develop
its own USP and promote it. The USP should be visible, of distinct
importance to the buyers, superior, difficult for the competitors to copy,
affordable, and profitable.
352 Tourism Operations and Management

PRODUCT LIFE CYCLE

The product in tourism is a bundle of benefits and satisfaction for the
tourist. What consumers want today may not be the same as what they
expect tomorrow. Consumers’ needs, wants, and expectations are
constantly changing as more competitors are entering the market and
offering added benefits to their products.
Every product has a life cycle through which it progresses and the
length of the life cycle varies from one product to another. The product
life cycle displays five distinct phases in relation to the sales history of
the product.
The product’s life begins with the introduction or launching of the
product in the market and ends when the sales decline or the product
dies at a later stage or at the end of the life cycle.
Figure 12.2 shows the five phases a new product passes through from
inception to decline stage in the product life cycle.

Introduction or launch

When a new product is launched in the market, the consumer needs to

know about the product. This is achieved through promotional campaigns
and advertising. Expenditure on promotions is high as customers are

Sales and
Profits

~Rrofits

Launch Growth Maturing Saturation Decline

Time

Fig. 12.2 Product life cycle

 Tourism Marketing 353

being motivated to try the new product, sales are low as the product is
new in the market, and there are low or no profits.

Growth

In this phase, the product or service starts getting accepted by consumers.

Market acceptance means that both sales and profits show a steep increase.
Promotional expenditures remain high and product image is built. There
may be an increase in the number of distribution channels.

Maturity
This is the stage when the product has been accepted by most of the
target market and is well established in the market place. Many outlets
are selling the product and offering it at a competitive price. At this stage,
product manufacturers look for ways to hold on to their market share.

Saturation

This is the stage when sales and profits have reached their peak or
saturation points and are now stagnant. The product has penetrated the
market place to the maximum degree possible. Technological
advancements and mass production have made it possible to lower the
price and make it available to a larger market. This stage may last for a
couple of years.

Decline
In the last stage, the demand falls and obsolescence sets in. New products
need to be introduced and old products need rejuvenation. Sales are
low, profits decline, advertising expenses are low. This is a critical stage
requiring management decisions on rejuvenating the product or dropping
the product as demand is low.
The lifecycle for tourism products and services is becoming shorter
because of the changing needs and wants and changing life styles of the
consumer as well as the rapid advances in the field of technology. Product
manufacturers as well as marketers need to keep this in mind while
planning the marketing strategy. The stage at which the product is in its
life cycle can help identify opportunities and threats for undertaking
marketing decisions.
Marketers and manufacturers should understand the concept of the
product life cycle as it can be a major factor in successful and profitable
product management and helps marketing managers to plan their
354 Tourism Operations and Management

promotional campaigns more effectively. Promotional costs in the first

stage are high as the new product has to be made visible to the market.
Familiarization tours or FAM tours for travel writers, media persons,
and travel agents are organized at this stage. Profits are highest during
maturity stage and saturation stage and gradually decline. If profit levels
are to be maintained, advertising expenses should be reduced for
sometime, letting the product sell on its own reputation and later on
rejuvenating the product. The product life cycle serves as a guideline for
formulating a marketing strategy and alerts an organization to take
remedial action. The market for the product during the launch stage
would be the segment with high disposable incomes sensitive to value
and status of trying out a new product. At the maturity stage, a wide
market is reached and marketers have the task of highlighting the merits
of the product vis-a-vis the competitor’s products. A decline in sales sends
off a danger signal that the product should be either revitalized or allowed
to die its own death and later replaced. In terms of tourist products, it
means adding move activities or attractions to sites at destinations, or in
a restaurant offering different cuisines and checking out what the
competitors have to offer and their price structure.

THE MARKETING MIX

The marketing mix is one of the fundamental tools in marketing.
Generally the marketing mix comprises the four ‘P’s namely:
1. Product
2. Price
3. Place
4. Promotion

These are the four factors which need to be mixed to enable a business
to achieve its marketing objectives. A product has to be developed and
designed, its price has to be determined, it has to be promoted, and
made available in the target market. Each of these four factors needs
thought and planning by the marketer to match the customer’s
expectations.
The tourism industry being a service industry needs a fifth ‘P’ which
is an integral part of service. The fifth ‘P’ in tourism stands for people,
processes, and physical evidence. Let us see how each ‘P’ is of relevance
in designing the ‘marketing mix’. .
 Tourism Marketing 355

Product
The product/service is one of the four basic elements in the marketing
mix and as we have read earlier in Chapter 11, it can be anything that
can be offered to a market for use or consumption that might satisfy a
need or want. From the tourism point of view, the product covers the
complete tour experience from the origin of the journey till the tourist
returns home. Refer to Chapter 11 for more details about the product in
tourism.

Price
Once the tourism business has identified the product, it must decide on
the price at which it is going to be offered to its customers. The term
price in tourism is what a customer has to pay to obtain the product. The
price in tourism may be hotel tariff, air fare, car rental, guide rate, and
entry fee. For some products such as museums, shopping malls, science
attractions there may be no price at all. Pricing plays a critical role in the
marketing mix and therefore should be set very carefully. Customers
relate price to quality and the nature of the product. Pricing is an art and
a product’s price should be sufficiently low to be perceived as good value
for money to customers, yet high enough to make profit for the business.

Overpricing and under pricing

If the price is too low, the product may be perceived as inferior in quality
and customers may not buy it. If the price is too high, customers have
certain expectations which if not met, lead to dissatisfaction. Marketing
should be aimed at not only customer satisfaction, but also customer
delight, i.e. offering the customer more than what he/she expects.
The success of a tourism business is based on setting the right price.
Competitor’s prices and prices customers are willing to pay should be
determined in advance through market surveys.
Various pricing policies which may be used are as follows:

Market penetration price

This is usually used when a new product is to be introduced in the market.
The price is kept low to attract customers or to undercut competition.

Discount pricing
This pricing policy is widely used in the tourism industry. A discounted
price is offered for certain products, such as airlines offering two for the
356 Tourism Operations and Management

price of one or ‘take your spouse free’, 15 per cent off, or hotels not
charging for children, etc.

Discretionary pricing
Tourism businesses can use their discretion and alter prices by market
segment, time, or place of purchase. For example, lower prices may be
charged during lean season, lower entrance fees at museums for students
or early bird prices for the first 100 bookings.

Competitive pricing
This pricing is based on the prices charged by competitors or the going
rate for the product. For example, car rentals will frequently charge very
similar prices as higher charges would result in losing business to
competitors.

Market-skimming pricing
Exclusive tourism products often adopt high price policies to retain their
brand image, exclusive status and superior quality. Target customers are
willing to pay exorbitant prices for the quality product and service offered
as this is a status symbol. For example, the Palace on Wheels and Deccan
Odyssey are luxury trains-cum-attractions with high charges but are
always booked to capacity and booked one year in advance.
Space tourism scheduled for 2009 is already fully booked.
Large tourism businesses have very complex pricing structures. An
airline company may have many different prices and although all
passengers in the economy section of a given flight are travelling from
the same place of origin to the same destination, they all may have paid
a different price for the similar category seat because of a vast combination
of pricing policies which are in force (refer to Chapter 5).

Place
The place or the distribution channel is another important component
of the marketing mix (see Table 12.2). Because of the perishable nature
of the tourism product, selecting the right distribution channel is critical
for the success of any tourism business. Tourism managers must choose
the right place or distribution channel to ensure that it reaches the target
markets.
Tourism businesses may sell their product directly to customers via
the Internet or indirectly through intermediaries such as travel agents
 Tourism Marketing 357

Table 12.2 Distribution channels in travel and tourism marketing

Distribution Marketing directly Principal suppliers such as hotels, airlines,

channels to customers car rentals, etc.
Marketing through Travel agents, general sales agents,
intermediaries tour wholesaler, speciality intermediaries,
tour operators
Marketing through Telephone, Internet
technology

and tour operators. Intermediaries increase the selling capacity of the

organization by providing sales outlets at places near to the customers.
The choice of intermediaries is important as they are in direct contact
with customers and can influence levels of quality and satisfaction. Large
organizations often use more than one distribution channel for marketing
the product. Read Chapter 7 and Global Distribution Systems (GDS) in
Chapter 16.

Promotion
Promotion is one of the main marketing functions for a tourism business.
Once the product has been designed, developed, attractively priced, and
made available to the target customers through distribution systems, it
needs to be promoted to highlight its USP and let the agents and customers
know how your product is better than your competitor’s product.
All promotional work should be based on the AIDA principle.
A—Attention
I— Interest
D—Desire
A—Action

The attention of the potential customer is sought and interest is created

through colourful pictures and bold letters. Desire is created by offering
a discount with the advertisement and action is triggered off by giving
details of place to contact such as address, timings, directions to reach,
contact numbers, e-mail address, and the website address.
To create awareness about the service product, and to persuade the
customer to purchase the product, what is important is what you
communicate to the target market about the product.
Promotion is vital because of the high level of competition in the
tourism industry and customers need to be motivated or stimulated to
358 Tourism Operations and Management
tools which are
try out a new product. There are a number of different
public
used to promote tourism products. These include advertising,
; personal
relations; publicity; sponsorship; brochures; sales promotions
such as telemarketing, networking,
selling; and direct marketing
tional
exhibitions, and tradeshows. These tools are referred to as the promo
mix elements.
The promotional mix elements include the following:

Advertising
It is a form of communication that appears in the media to inform and
persuade the consumer to buy the product. Advertising is carried out by
a number of media such as newspapers, magazines, journals, brochures,
display boards, radio, television, motion pictures, etc. It appears as space
in a print media or time slot on the radio or television. It requires a
substantial budget if it is to be successful.
The advertiser should know whom the advertisement is meant for,
what thoughts need to be put into the tourist’s mind so that a liking is
developed for the product, i.e. what message needs to be communicated
and which media is to be used as well as when and how often must the
advertisement appear. A full coloured advertisement in glossy print of
high quality gives a tangible dimension to the product.

Public relations
It is defined as the sum total of activities designed to build and maintain
good relations between a tourism company and its public (i.e. customers,
suppliers, government organizations, stakeholders, employees, the press,
and the community). Public relations (PR) or publicity does not need
any budget and is yet the most powerful and valuable promotional tool.
Publicity is generally used for generating awareness, building recognition,
and creating a favourable image. Tourism is a popular topic for the media
to cover and if there is some newsworthy item, it can get good publicity
through the media. When any tourism product is launched, leading
personalities are invited for the inaugural function along with reporters
and journalists. Press releases with major highlights are kept ready and
brochures are distributed. The product gets publicity through write-ups
by the press quoting what others feel about the product, thus giving it
more credibility than advertising.
The Government of India has been promoting the country as a tourist
destination around the world through Jncredible India road shows. These
 Tourism Marketing 359

shows project the great concept of Indianness which celebrates the

diversity of India. Road shows have been staged in Europe, Singapore,
and in Shanghai, China. They include folklore, theatre, traditional dance,
and music depicting the vast potential India has to offer. Incredible India
festivals have been held in London, New York, Singapore, Berlin, and
Beijing.
Negative publicity is also tackled by the India Tourism offices around
the world. The offices are briefed about the current situation so that people
can log-in and clear their doubts. Three such recent incidents were the
Chikungunya epidemic scare, the negative stories published by London
newspapers about a British teenager’s murder in Goa, and the 26/11
terrorist attacks on Mumbai which resulted in the cancellation of bookings.

Personal Selling
This tool is used by travel agents or tour operators while making a
presentation to a customer or a group on various packages, destinations,
hotels, etc. for the purpose of making a sale. Personal selling becomes
effective when the sales person has complete knowledge about the
customer, the product being sold, and the competitors, and has a good
presentation as well as excellent presentation skills.

Sales promotion
These are short term incentives offered to customers to motivate them to
purchase the product or to sales people for achieving certain targets. For
example, the frequent flyers programme offered by airlines to customers
or incentive tours to Singapore/ Malaysia to travel agents for achieving a
given target are some examples of sales promotion.

Networking
It is the art of meeting and maintaining contact with tourism suppliers
and potential customers at social gatherings like events, launches,
meetings, get-togethers, conferences, etc. Networking is an excellent way
of keeping pace with the latest developments in the industry and
promoting tourism products.

Attending travel tradeshows

Trade shows are held annually for suppliers from the travel trade as well
as consumers. These are mega events, for example, the International
Travel Exchange (ITB) in Berlin and the World Travel Market (WTM) in
360 Tourism Operations and Management

London. These are platforms for sharing developments in the travel trade
and can give wide exposure to the delegates as well as the products.

Membership
Membership of tourism organizations helps tourism businesses to network
and also offers discounts for advertising of their products in their
association’s publications.
Many products are available on the Internet and tourism businesses
have felt the need to have their own websites along with distributing the
product through travel agents. Refer to Global Distribution Systems
Chapter 16.

MARKETING OF SERVICES
Services marketing has extended the traditional marketing mix of four
‘P’s to seven ‘P’s and has added people, processes, and physical evidence
to the tourism marketing mix. The components of the extended marketing
mix are interrelated and can be controlled by the tourism professional.
In any service industry, it is the people who deliver the product; the
service or process is quite complex with many minute details which need
to be looked into and the services/product offered can only be evaluated
by consumers at the place of consumption, i.e. physical evidence. People,
processes, and physical evidence are therefore essential components in
managing the quality of the service and creating customer satisfaction.
For example, tourism is a high contact service with different people
being part of the tourism product and being multifaceted there are many
complex service processes involved. Because of the unique characteristics
of the tourism product, physical evidence gives tangibility to the intangible
product.

People
A tourist undertaking a holiday abroad first encounters people from the
point of origin of the journey connected with the trip.
The airline ground staff at the check-in counter, the flight attendants
in the aircraft, their attitude and behaviour, whether they are helpful and
courteous or indifferent and curt will reflect on the image of the airline.
Tourists judge the quality of an airline on the basis of the people they
employ. The time taken for the process of checking in, the wait in long
queues, filling up of forms, and completing formalities, the assistance
 Tourism Marketing 361

from airline staff in filling up forms, etc. will all reflect on the overall
quality of service.

Process

Process includes all procedures, steps, schedules, and activities, etc. which
are followed to carry out any activity. Some processes are compulsory
like filling up an embarkation and disembarkation form, while others
are practised to facilitate easy control over various activities. Some
processes are complex and time consuming and need to be simplified or
else they would have a negative influence on the customers. Many flight
attendants assist passengers on board in filling their disembarkation forms
or fill the same for them.

Physical Evidence
Physical evidence is closely related to the tourism product and since
services are intangible in nature, it is difficult to estimate the level of
satisfaction the tourist would derive from the product. Physical evidence
helps the tourist to judge and select the product from a variety of options.
Since the tourist cannot see, evaluate, or compare products prior to
making a decision whether to purchase the product or not, it is necessary
that the source of information projects an image of what the tourist could
expect by purchasing the product. For example, India Tourism offices
abroad are projecting a grand image of Jncredible India to attract tourists
and convince them that India has a lot to offer.
Physical evidence tries to give tangibility to the intangible service
product, be it the office building, its cleanliness, comfort, and ambience;
uniforms of staff; quality of visiting cards, letterheads, brochures, tickets,
other publications of the tourism industry; prior experiences of tourists
in the form of appreciation letters, etc.

FAMILIARIZATION TOURS
Familiarization (FAM) tours are educational tours and are an excellent
marketing tool for reaching out to travel professionals, journalists, and
trade delegates.
The focus of FAM tours is to apprise, enlighten, and provide first
hand information and real life experience of the tourism product to the
intermediaries who form part of the distribution system, as well as the
opinion makers in tourism. The opinion makers are journalists, travel
362 Tourism Operations and Management

writers, television crew, radio persons, incentive tour operators, outbound

tour operators of other countries, and dignitaries who are capable of
influencing the public.
FAM tours are necessary because of the intangible nature of the tourism
product which cannot be seen, felt, or experienced by the prospective
customer before the purchase. These products are generally purchased
through intermediaries who need to have first hand information to market
the product and FAM tours play a major role in this.
The entire effort of the FAM tour is geared to bring the opinion makers
and suppliers to actually experience what the destination has to offer to
its tourists. They can decide about the merits and demerits of the product
and accordingly inform or influence the prospective buyers through press
releases, write ups in travel magazines, presentations, etc.
The purpose of a FAM tour may vary according to the following two
reasons:
1. The aims of the organization/destination, for example, what
market segment it wants to target.
2. The stage of the product life cycle a product/destination is in, for
example, launch stage, rejuvenated stage, etc.

Need for FAM Tours

There are several reasons why FAM tours are needed. They are discussed
as follows:
Destination promotion and image building Today, every country or
destination wants to increase its tourism earnings and therefore FAM
tours are regularly organized by various service providers to attract
potential tourist generating regions to the destination.
Introducing new products All new tourism products, however strong
they may be, need to be introduced to the right intermediaries, at the
right time, at the right place, at the right price. For example, the Deccan
Odyssey needs to be experienced. No amount of photographs, brochures,
etc. can bring alive the grandeur and pleasure of travelling on board this
luxury train; but if a travel writer, personally experiences it and writes
his views for many readers to read it, then the effect would be dramatic
and the response would be positive.
Damage control FAM tours are an effective tool in dealing with any
negative image situation related to health, safety, and security of tourists.
 Tourism Marketing 363

In such cases, the opinion makers are the specialists from different
fields who visit the destination to study the situation and give their own
account of the facts.
Publicizing events Most destinations are promoting special events to
attract tourists. For example, India Tourism organizes FAM tours covering
events like fairs and festivals to promote these events abroad.
Therefore, one can see the importance of FAM tours in the tourist
products’ promotion, launching, reducing negative impacts, and for
publicizing any special event. FAM trips are made more effective by
including innovative ideas like including an activity programme, welcome
greetings, sending a follow-up mail, etc. All sectors of the industry benefit
from using FAM tours as a promotional strategy. Practically all sectors
are involved in planning and organizing a FAM tour depending on the
tourism product to be marketed. National tourism board offices, airlines,
hotels, archaeological survey department, forest department, restaurants,
etc. both belonging to government or privately owned, are involved in
preparing the itinerary for the tour.

MARKETING RESEARCH
Tourism managers need information about the market or consumers,
the competition, the trade, and the distribution system before undertaking
the marketing plan. Research is the first step in plan preparation, and is
defined as a systematic collection and analysis of data relating to the
marketing of goods and services.
Tourism professionals need to understand which markets they wish to
serve, which products to sell, what prices to charge, which place or
distribution channel to select, and which communication tool to use to
promote the product. Because of the multi-faceted activities in the tourism
industry, tourism professionals need an in depth knowledge of the service’s
marketing mix to enable them to make a viable plan. The marketing
research process is closely linked to the development of an effective
marketing mix.
Market research means to investigate the market, gather information
objectively, understand, analyse and use the details for problem solving
and decision making, i.e. for the betterment of the tourism product. There
is a difference between the terms ‘marketing research’ and ‘market
research’. The term marketing research covers a wider variety of aspects
including research into new products, price, and distribution channels,
publicity, and consumers, whereas market research is concerned with
364 Tourism Operations and Management

the consumers and their behaviour patterns. The main purpose of market
and marketing research is to reduce as much guess work or assumptions
as possible. Research has two main aims—firstly, it minimizes risks when
plans are being made and secondly, it can monitor performance after
implementation of the plan.
Thus, market research is an ongoing continuous process and involves
re-assessment of chosen strategies. Especially in the tourism industry,
research helps to identify opportunities for product development; make
investment decisions for new ventures; and choose locations, themes,
and levels of service required; and arrange for any diversification of
product.
A variety of data is gathered and used by the tourism industry. The
data may include statistical data of tourist profiles like age, gender,
occupation, etc. statistical data on tourist behaviour such as choice of
destination, frequency of holidaying, budget, time spent on vacations;
tourist satisfaction; competition analysis, etc. Market research is thus an
important tool for effective marketing, planning and management of
tourism businesses.

Advantages
Some of the advantages of marketing research are
¢ understanding the customers and the market;
¢ identifying opportunities for product development;
¢ developing an effective marketing mix;
¢ helping in problem solving;
* minimizing risks as guesswork is reduced;
* monitoring performance after plan is implemented; and
e helping in future marketing decisions.

Disadvantages
Some of the disadvantages of marketing research are
* one may not get reliable data;
¢ errors are likely to occur if responses are wrongly interpreted;
¢ the sample size may be too small and may not represent the
population; and
e the choice of sample itself may be incorrect.
The various research methodologies are based on the fact that research
can be quantitative or qualitative. Data may be gathered from primary
or secondary sources. |
 Tourism Marketing 365

Quantitative Research Methodology

This method involves statistical analysis and answers the questions-How
much? and How many? These involve numerical and statistical data to
test a hypothesis or generalization. Some of the main attributes of
quantitative approaches are as follows:

¢ Identical questions and methods of recording are used which make

data compilation easy.
¢ The sample size is quite large and is in consideration of the issue.
¢ Statistical analysis is used for drawing inferences.
¢ Closed questions are asked to facilitate use on computers and give
statistical outputs. ‘Yes’, ‘no’, ‘don’t know’, etc. are used and thus
elaborate judgment is not present.
e It uses scoring/rating scales such as excellent/v. good/good/fair/
satisfactory/poor, etc. A scale of one to 10 is used for rating opinions.

Advantages
Some of the advantages of quantitative research methodology are as follows:
¢ Since the sample sizes are large they represent the population and
hence some judgments can be made easily and confidently.
¢ Data can be easily summarized and analysed using computers.

Disadvantages
Some of the disadvantages of quantitative research methodology are as
follows:

¢ This method is impersonal and does not give subjective information.

e It involves a lot of time and effort as large samples are required to be
gathered.
¢ Poorly framed questions may cause bias and misinterpretation.
¢ The problems of those individuals who have not/will not take partiin
the survey are not highlighted.

Qualitative Research Methodology

It is used to probe ideas, feelings, and attitudes. It answers questions such
as ‘What did you like about the destination’.
Qualitative research is undertaken to provide the basis for designing
quantitative research. Some of the attributes of qualitative research are
as follows:
366 Tourism Operations and Management

¢ It aims at gathering more in depth information by using open ended

questions.
¢ Usually the interviewer tries to initiate people to share their thoughts
on a topic such as—why does a tourist prefer to visit Spain rather
than India.

Advantages
Some of the advantages of qualitative research methodology are as follows:
¢ It provides invaluable information about people, their experiences,
motivations, attitudes, etc.
e Itis more personal in nature.
¢ The purpose of the research is more for understanding and not just
for statistical analysis.

Disadvantages
Some of the disadvantages of qualitative research methodology are as
follows:
e Asasmall number of people are involved, generalizations cannot be
made.
¢ Analysis of qualitative research involves judgments made by the
researchers, thus objectivity may be hampered.
There are other research methodologies such as primary data collection
and secondary data collection.

Primary Data Collection

Primary research or field research is original data generated by new
research carried out in tourist generating market. It involves first hand
information collection. Research techniques include sample surveys,
interviews, and observations. Primary research covers both quantitative
and qualitative data. The population from which information is required
is defined and a statistically valid sample of the population is drawn.
Field research includes sample surveys and motivational research (see
Fig. 12.3). Choosing the samples and developing the questionnaires are
important parts of the research design. Motivational research concentrates
on forecasting the motives behind travel. It gives us an insight into the
attitude of the tourist and what their expectations are. Data can be
collected personally, through mail surveys or telephonic interviews.
 Tourism Marketing 367

Research Data
Collection

Primary source Secondary source

(field research) (desk research)

Sample Motivational
survey research

Fig. 12.3. Classification of data collection methods

Secondary Data Collection

Secondary or desk research is information collected for purposes other
than solving a present problem, i.e. the researcher becomes the secondary
user of the data. Secondary data can be obtained from international
tourism organizations such as UNWTO, IATA, etc. which regularly
publish statistical information, from national organizations, state tourism
boards, trade associations, airlines, hotels, etc. All published sources of
data constitute secondary research. Before undertaking any research, it
is advisable to find out if the information required already exists.

TOURISM FORECASTING
Tourism planners need to predict the demand for the product they are
developing and marketing. Since most markets do not have a stable
demand, accurate forecasting becomes a crucial factor for the success of
any organization.
Forecasting is the art of estimating future demand by anticipating what
buyers are likely to do under a given set of conditions (Kotler 1996).
Tourism managers need to base their decisions on certain assumptions
such as behaviour pattern of customers; competitors’ strategies; past
sales; seasonal variations; erratic events such as heavy monsoons,
recession, etc.
Forecasting helps managers to maximize their profits. Poor forecasting
may lead to overstaffing, understaffing, excess inventories, inefficient
operations, and customer dissatisfaction. Accurate forecasting keeps
suppliers prepared for the anticipated demand for their product. For
example, the Indian Railways runs special trains during the holiday season
to take care of the large number of passengers travelling during vacations.
368 Tourism Operations and Management

Airlines planning their operations in a new sector will want to know the
passenger demand on the route so as to plan the frequency and quality
of their services. Forecasting is required to design the product and
understand the demand for that particular product.
Forecasting can be done for short durations like seasonal forecasting
or for longer periods of one to three years. It is needed to plan, develop,
and operate tourism facilities and services efficiently and profitably, and
is of special significance because of the nature of the services and the
product.

SEASONALITY IN TOURISM
All types and forms of tourism have seasonality as a component. There
are peak seasons, lean seasons, or off seasons for a destination or a tourist
generating market. If one were to analyse tourist arrivals at any destination,
one would observe monthly fluctuations. In case of individual services,
the seasonality concept can be further applied to demonstrate weekly or
hourly fluctuations. There is more rush on weekends and public holidays
in a museum or at a resort. There may be more rush in morning or
evening flights in comparison to afternoon flights. Such analysis is
extremely important from the marketing point of view as it helps in
deciding the marketing mix.
Seasonality refers to variations in the demand for tourism products
which makes it difficult for providers of tourism products and services to
sustain business all year round. Demand for tourism products such as
accommodation, transportation, etc. is seasonal. Tourist resorts experience
a fairly high degree of seasonality, with demand peaking during vacation
periods and in summer months.
Products can be designed, rejuvenated, or dropped as per the seasonal
requirements. Separate prices may be charged for lean seasons along
with a different promotion policy. Manpower requirements would be
higher in peak season and lower in lean season. This may affect
recruitment patterns adopted by the employers. Sometimes even capacity
utilization is affected. Goa is a typical example of seasonality. Seasonality
in tourism does not only mean climate of the seasons of the year.
Seasonality is of different types and the tourists’ seasons emerge because
of different reasons. These are as follows:
Climatic seasonality This is related to the natural climatic seasons in a
year. Tourists move from hot climatic regions towards cooler destinations
in summer months like the hill stations which experience peak season.
 Tourism Marketing 369

Non-climatic attractions Non-climatic attractions or institutionalized

seasonality in tourism emerges out of religious, cultural, ethnic, and social
aspects of human life. Festivals, pilgrimages and fairs, public holidays,
industrial holidays, and school vacations dictate seasons which are decided
by humans.
Social pressure Social pressure or fashion is another aspect which brings
about or affects tourism seasonality. This has been termed as social
seasonality. The rich and famous class of society sets certain trends wherein
it becomes socially necessary to participate, for example, travelling abroad
for honeymoon.
Sporting season This is another aspect which has resulted in tourist
activity. Winter sports such as skiing and water sports such as surfing are
examples of this type. There is a lot of tourist movement during major
sporting events such as the Olympics, cricket World Cup, Commonwealth
Youth Games, etc.
Tradition This also plays a role in seasonality. Many people take holidays
at peak seasons because they have always done so and old habits are
difficult to change, for example, a family plans a holiday when schools
are closed for long durations. Even when children are grown up, the
family still takes a holiday during those months because they are
habituated to taking a break during that time.
Seasonality is an important issue because seasonal fluctuations create
certain problems for both the destination as well as the producers of
tourism services. During the peak season, carrying and serving capacity
is exceeded and there is a shortage of trained labour. The lean or off-
season brings in a different set of problems such as:
(a) a decline in profits,
(b) high maintenance costs and underutilization of infrastructural
facilities;
(c) unemployment; and
(d) shutting down business.
In fact, both off seasons and lean seasons in tourism are always seen
as a problem because of a reduction in the volume of the business and
subsequent reduction in profits. Investors hesitate to invest in business
as the returns on investment are low.

Seasonal Marketing
Both over utilization and under utilization of resources are undesirable
and ideally seasonality should be evenly distributed. This helps in
370 Tourism Operations and Management

preserving the destination at the sametime providing year round

employment in this industry.
Marketing professionals should focus on the following:
¢ Extending the peak season by planning additional attractions and
events before or after peak season.
¢ Organizing events which are not affected by climatic conditions, for
example, indoor events like meetings, conferences, etc. The MICE
industry can help solve the problem of seasonality and benefit both
the providers of services as well as the workers who are unemployed
during off-season by organizing business meetings, conferences, and
conventions. Customers can benefit from off season discounts while
tourism suppliers can keep their business going.
¢ Offering promotional packages during lean season.
¢ Establishing additional seasons after a detailed study of the climate,
culture, and natural attractions. For example, destinations are being
promoted to enjoy the snowfall, get wet in the rain, watch natural
waterfalls, etc.
¢ During off season, for international tourists, domestic tourism should
be promoted. Off-season promotional and pricing campaigns such
as special packages, special fares, price reduction, seasonal discounts,
and extra services should be introduced. Discounted pricing will
attract tourists who otherwise cannot afford the holiday and do not
mind going during off season. However, off-season marketing should
be planned well in advance and the incentives and discounts should
be attractive enough to bring tourists to the destination during lean
season. This will help service providers to continue working through-
out the year and overcome the problems caused by seasonality. In
Goa the monsoon season is gaining popularity and Goa is being
marketed as ‘Goa: Monsoon Magic’. Every hotel and resort is offering
heavy discounts. Although the sea is rough and beaches are deserted,
boat cruises down the river Mandovi still operate. Five star hotels
and resorts become suddenly affordable, charging only half the
seasons’ rate. Traditional festivals such as the Sao Joao festival of
fertility are promoted to attract tourists.

DESIGNING A TOUR BROCHURE

All tourism service providers need some form of printed literature which
gives detailed information about the organization and acts as a booking
mechanism. Printed material may be in the form of a flier, a leaflet, a
 Tourism Marketing 371

post card, a rack brochure, a fact sheet, a multi-page colour brochure, a

map, videos, or DVDs. All this is called collateral material and being the
first point of contact, it is important that they portray the correct image
of your company and product.
Before designing a brochure it is important to know the following.
e The objective of the brochure—Why it is being designed?
e The target market—Who is going to read it?
¢ The place of distribution—Where would they be when they read it?
A brochure is a printed material used for promotion of goods as well
as services. It contains important information and features about a certain
product/service.
From hotels to tour operators, everybody needs to use a brochure. A
good brochure, though expensive to design and create, is a must for
selling the product and also to make the customer aware of the unique
features being offered.
For example, brochures for visitor attractions are designed to enhance
a visitor’s experience by providing complete basic information in a
convenient format. Figure 12.4 depicts a user-friendly map in a visitor
attraction brochure. A brochure describes the attraction, its opening and

'OgnsnoeRE:
9

Fig. 12.4 A well-designed map is informative and useful and is often

preserved after the trip as a memento
Source: www.birdpark.com/sg/visitorinfo/parkmap.html
372 Tourism Operations and Management

road,
closing time, a detailed user friendly map, directions to reach by
rail and the location of various facilities on a map, etc. at the attraction.

Purposes
A brochure in tourism serves several purposes. These are discussed below.

Image building The brochure is the first contact point of the consumer
with the service provider and hence the paper quality, colours, layout,
and photos create an image in the mind of the consumer. Hence while
designing a brochure all these features must be paid attention to.
Tangibility to the intangible A brochure acts as a medium to display
how the actual product would look and its properties, as well as all facilities
and amenities offered by the establishment.
Source of information It provides information that is relevant to a
consumer. Technical specifications, added advantages, etc. can be
highlighted to draw the customer’s attention to the USP.
Positive decision making A brochure motivates a consumer to buy a
certain product or service just by looking at the brochure.

Features which are desirable in a well-designed brochure are as follows:

¢ effective message,
¢ proper font size and legible layout;
¢ quality paper and printing;
¢ clear and appropriately sized photographs,
e relevant information and features; and
¢ any added advantages such as discounts, etc.
The tourism marketer should always remember that—‘A brochure is
an important promotional tool as it acts like a silent sales person for the
company’.
We have read that marketing is much more than a business function
and all tourism professionals should study and interpret the needs and
wants of the target customer. This should be used to design a product-
service combination which will satisfy the customer. It should provide
good value, fulfil the needs, and motivate customers to purchase the
product, at the same time ensuring a profit for the organization. Marketing
is considered the most important management activity in the tourism
industry as its survival and growth depends to a larger extent on the
marketing approach as the number of competitors is vast and because of
the nature of the tourism product. .
 Tourism Marketing 373

SUMMARY
Marketing has been recognized as the most important management activity in
the tourism industry which is growing at a rapid rate. It is especially important
because of the perishable and intangible nature of the tourism product. Suppliers
have realized that to remain in business, they should know what their customers
expect from them. The aim of marketing is to know the customer so well that
the product or service meets their requirement perfectly so they buy it without
the supplier having to make much effort to sell.
Since customers vary in their requirements, marketers need to identify their
market, study their needs, develop a product, and create a marketing mix to
meet the demands of the selected market segment or target market.
The product needs to be advertised and promoted so that the target market
is aware of the newly launched product or revitalized old product. Various
communicational and promotional campaigns can be used. Tourism professionals
rely on brochures to promote their offerings. Before they promote the product
they prefer experiencing the product, so that they have first hand information.
FAM tours are jointly organized by suppliers for travel professionals and the
media to promote and give publicity to the product. Suppliers would benefit
from the publicity as they would get more business.
While marketing of tourism products, the seasonality aspect should be kept
in mind, with an aim to extend the tourist season. This would help conserve the
destination and at the same time solve the problem of unemployment and other
related problems faced during off-season.

KEY TERMS
Advertising A paid form of non-personal tourism product or service by an
identified sponsor.
Allocentric traveller An adventurous traveller who seeks new destinations and
is inquisitive.
Behavioural segmentation Dividing a market into groups on the basis of
consumer's attitude, knowledge, and use or response to a product.
Compost Microbial decomposition of organic matter over a period of time under
moist, warm, aerobic conditions with the formation of manure.
Customers’ needs The gap between what the customers have and what they
would like to have.
Eco-tels These are environment sensitive hotels that use eco-friendly practices
in running the business so as to conserve natural resources, reduce waste,
minimize pollution, and maximize sustainability. Also called ‘green hotels.
374 Tourism Operations and Management
geographic units
Geographic segmentation Dividing a market into separate
, contine nts.
such as neighborhoods, cities, states, regions, nations
groups.
Income segmentation Dividing a market into different income
spend their time, things
Lifestyle Way of living characterized by the way people
the people
they consider important, and what they feel about themselves and
around them, i.e. their activities, interests, and opinions.
Market The set of all actual and potential buyers of a product.
more or
Market segmentation The process of dividing the total market into
characte ristics
less homogenous groups or segments each of which has certain
and product preferences. Segmentation may be done on the basis of age,
gender, income, status, behaviour patterns, etc. The purpose of segmentation
is to identify the target group and direct the marketing efforts on that
particular group thereby reducing promotional costs.
Marketing mix The four elements such as product, price, promotion, and place
of distribution along with people, process, and physical evidence for a service
product.
Marketing research A process of systematically gathering and analyzing
information and data about customers and markets.
Mid-centric traveller Is in between allo-centric and psycho-centric and exhibits
some characteristics of both and forms the bulk of the tourist market.
Opinion makers Leaders and people within a reference group who exert influence
on others because they possess a special personality, knowledge, skills, or
other characteristics.
Physical evidence Tangible clues in the form of promotional material, the
environment of a firm, and its employer who portray the image of the quality
of offering.
Press release A written document used to communicate newsworthy information
to the media.
Primary data Information which is collected for the first time for a specific
purpose.
Psycho-centric traveller Seeks familiar, tried and tested destinations which
are secure and is an unadventurous traveller.
Psychographics Psychological profiles of customers.
Sales promotion Increasing sales volume by giving short term incentives to
motivate a person to purchase a product or service.
Secondary data Information that has already been collected and compiled or
used previously.
Tourism markets Tourist generating areas or countries.
 Tourism Marketing 375

CONCEPT REVIEW QUESTIONS

1. Describe the difference between the marketing concept and selling concept.
Which concept do you feel is ideal for the tourism industry?
2. Why do tourism planners need to undertake market research?
Explain the significance of the following:
(a) Tourism forecasting (b) FAM tours
(c) Tour brochures (d) AIDA
How can the MICE industry help to overcome the problem of seasonality?
What is meant by market segmentation and why is it necessary?
Describe the various stages in a product life cycle?
ps
Or
Ov)
i Explain the promotional mix elements that can be used to promote tourism
offerings.

CRITICAL THINKING QUESTION

1. Why do tourism managers need to understand the tourism consumer's
behaviour patterns?

REFERENCES
George, R. 2007, Managing Tourism in South Africa, Oxford University Press
Southern Africa, Cape Town.
India Today, Tourism Special, May 2008, The Great Indian Holiday, Incredible
India, Living Media India Ltd, Thomson Press India Ltd, Faridabad.
Jha, S.M. 1995, Tourism Marketing, Himalaya Publishing House, Mumbai.
Kotler, P., J. Bowen, and J. Makens 2002, Marketing for Hospitality and
Tourism, Second Edition, Pearson Education (Singapore) Pvt Ltd, Indian
Branch, Delhi.
Medlik, S. 1996, Dictionary of Travel, Tourism and Hospitality, Second Edition,
Butterworth Heinemann, Oxford.
Morrison, A.M. 2002, Hospitality and Travel Marketing, Third Edition, India
Edition, Delmar, Thomson Hearing Inc, Haryana.
Tourism Marketing, TS-6, 1993, IGNOU, New Delhi.
 Customer Service Skills

Learning objectives
After reading this chapter, you should be able to:
understand the importance of the customer to tourism business
know the desirable qualities a tourism professional should possess
differentiate between the terms customer satisfaction and customer delight
demonstrate skills in answering the telephone
appreciate the importance of both verbal and non-verbal communication
know the techniques to be used for selling a product
understand how one should handle difficult customers and situations
appreciate the need for using the phonetic alphabet

INTRODUCTION
‘N ustomer service is the backbone of the tourism industry. It
_involves much more than just giving travel-related information,
/ issuing tickets, and making reservations or providing personal
attention to a customer before, during, or after a travel-related purchase.
Good customer service today does not end with customer satisfaction.
With the increased competition, service providers aim at customer delight.
In this context, customer service could be defined as follows:
 Customer Service Skills 377

‘Customer service is concerned with generating customer emotions

or feelings of happiness and surprise by the way we meet and exceed
their expectations.’
Exceeding customer expectations and surprising them by going out
of one’s way to give that extra service which gets a ‘Wow!’ response from
the customer, is achieving ‘customer delight’.
To be able to achieve this, tourism professionals require the skills to
understand and get along with people, be alert, use refined selling
techniques, know their product and the competition, and have good public
relations.
We have read in Chapter 11 that the tourism product which the
customer purchases is a service product which the customer cannot own
but can only experience. This experience is created when the product is
delivered or consumed and the experience may be a pleasant experience
if the person delivering the product has combined both customer service
skills and technical skills. Customers feel happy and content when their
needs and wants are met and service is beyond their expectations. Let us
differentiate between these three terms, namely—needs, wants, and
expectations.

Needs Human beings have certain basic requirements that are necessary
for life such as food, clothing, shelter, belonging, recognition, etc. which
need to be satisfied. These basic requirements are called needs.
Wants Wants are the forms in which people communicate their needs.
They are influenced by the individual’s personality, society, and his/her
culture.
Expectations Expectations, or what one looks forward to, differ from
person to person depending on the socioeconomic status and past
experiences.
Everybody needs food as a basic requirement for survival, but what
they want as food differs depending upon their food habits. An European
would want fish and chips for dinner while an Indian would want
chappatis, dal, and bhaji. Customers would expect the meal to be served
hot with the requisite accompaniments. If they are served a compli-
mentary beverage and dessert which they did not expect, they would be
delighted.
Customers have different needs and requirements and successful
tourism professionals need to understand their customers well. They need
to know who their customers are and what is it that they want. Just like
378 Tourism Operations and Management

they need to know the product they are selling, they also need to know
who is going to buy the product. Customers differ from one another in
many respects. Some are very budget conscious while others may not
mind spending money on themselves while on vacation. The idea of a
vacation and activities to be undertaken vary vastly from one person to
another and so do food habits and choice of entertainment.
There are basically two types of customers in any business:
1. Internal customers
2. External customers

Internal customers

These customers are those who provide services to the external customers
or guests and include the employees of a tourism organization as well as
the suppliers of goods. If excellent customer service is to be achieved, it
is necessary that each employee in the organization is customer conscious,
irrespective of whether he/she is in direct contact with the guest or not.
Good customer service depends on the team effort of the employees and
timely delivery of supplies. Guest service and satisfaction are an
employee’s primary responsibility. In the service industry it is very
important to satisfy the needs of the internal customer according to his/
her level in the organizational hierarchy, if the needs of the external
customer have to be met.
External customers
The main external customers in the tourism industry are the tourists or
guests who pay for the tourism products or services. While the customer
is the actual purchaser of the tourism product, he/she may not be the
consumer. A tourist buying a package tour is both customer and consumer,
while a corporate travel department which makes travel arrangements
for its employees is the customer of airlines and hotels, and its employees
are the actual consumers.
Customers may be individuals, or groups from social, professional, or
voluntary organizations and associations, travelling for business or leisure.
All these customers approach the travel agent to fulfil certain needs and
wants in terms of transport, accommodation, food and beverage, tickets
or passes for attending special events, etc. These requirements may differ
from customer to customer depending on the purpose of travel as well as
many other factors such as budget, etc. Hence, understanding one’s
customers and their specific needs, wants, and expectations will help
one to serve them better.
 Customer Service Skills 379

IMPORTANCE OF CUSTOMER SATISFACTION

Good customer service is important as it leads to satisfied customers as
well as employees. It is the sign of a professional organization. Happy
customers speak highly about the organization and remain loyal to the
organization. Employees get job satisfaction, appreciation, and rewards
for a job well done in the form of praise from the customers and
employees, service tips, etc. All tourism professionals should realize the
fact that satisfied customers are the best source of advertising for the
travel house. They recommend the travel house to their friends and
relatives, and speak highly about their travel experience. The number of
customers increases as new customers are motivated to try out the product.
Since travel business is entirely dependent upon customers, satisfied
customers keep travel agents in business and contribute in a big way to
their prosperity and reputation.
Customers have certain expectations which are as follows:
¢ recognition (for old customers), remembering names
* up-to-date information
¢ immediate action
* warm sincere welcome
¢ highly knowledgeable staff
¢ assistance at all stages
e full and undivided attention
¢ excellent interpersonal skills
¢ keeping up commitments and promises
* meeting and exceeding their expectations
Satisfied customers feel they are valued and are important to the
organization (see Exhibit 13.1). Their expectations have already been
Exhibit 13.1 - The customer is important

The customer is important

The customer is the most important person in the tourism industry.
Without customers we do not have a business.
Customers choose their travel consultant and they have many options to choose
from.
They select a place which they feel will provide efficient service.
They judge our service depending on how they have been treated.
If they are satisfied they are our best source of advertisement.
If we understand our customers and their needs and requirements, we can serve
them better.
e If our customers are delighted, they come back as repeat customers.
380 Tourism Operations and Management

met or have been exceeded. Customers expect prompt efficient service.

The atmosphere in the travel house should be professional and pleasant
with no noisy arguments or complaints. This is good for the image of the
organization.

CREATING GOOD CUSTOMER RELATIONS

Good customer relations evolve out of employees working together in
coordination and cooperation with each other. Each employee should
be customer conscious even if he/she is not in direct contact with the
customer. Every employee contributes to the total guest service experience
either by directly interacting with the customer or indirectly by working
behind the scene. A successful professional uses both technical skills and
interpersonal skills such as empathy, etiquette, speaking skills, listening
skills, body language, etc. while providing service. Good customer
relations begin with simple things which tourism professionals should be
aware of. The first step in customer interaction begins with creating a
good first impression on the customer.
A good first impression is created by a good personality. You have to
present yourself before you present your product. You are the ambassador
for your travel house. If you are not presentable, it is very likely that you
will not be heard. Always remember that the first impression is the best
and lasting impression and one does not get a second chance to make a
first impression. A good personality means much more than a well
groomed person.

Grooming Standards and Personal Hygiene

Personality is defined as the sum total of the habitual qualities and
behaviour of a person as expressed by physical and mental activities and
attitude. Good grooming is an essential part of one’s personality. Refer
to Table 13.1 for some of the basic grooming standards.
Some of the personal hygiene standards are as follows:
¢ One should make it a point to follow good habits. Bad habits, such as
biting one’s nails or digging one’s nose in front of others should be
avoided.
¢ One should use a good deodorant after bathing and carry a clean
ironed handkerchief.
* Personal hygiene should be observed every day; especially washing
one’s hands well before and after meals and after visiting the toilet is
mandatory. .
 Customer Service Skills 381

Table 13.1 Basic grooming standards

Gentlemen Ladies

Hair Healthy, clean and shampooed, Hair Clean, shampooed, and conditioned.
well trimmed and combed Long hair Tied into a neat bun
Short hair Well brushed, away from forehead and ears.
Beard and If present—well trimmed Make-up Should be light and natural and should
moustache if not, clean shaven highlight your features. Refresh make-up
during the day.
Shirt Clean, well ironed, no missing Jewellery A thin chain, small ear studs, and a simple
buttons, white or light shade bracelet or thin bangles look elegant.
matching tie and trousers Avoid flashy make-up and chunky jewellery.
Trousers Well fitted, well pressed Perfume A fresh, flowery fragrance which is subtle
could be used. Avoid strong overpowering
perfumes.
Shoes Simple design, clean, and Clothes Outfit whether Indian or Western should be
polished. clean, comfortable to wear the whole day
Socks Match with shoes, change daily in pleasing colours and designs which give
an elegant look. Clothing should be modest
and not provocative and ensure that saris
and dupatta’s are pinned in place and tops
are not sleeveless.
Deo Use a deodorant after bathing Deo Use a deodorant after bathing.
Footwear Comfortable well fitted with a moderate
heel which match your outfit. For example,
shoes and natural coloured stockings
match western outfits, while sandals or
slippers are worn with Indian outfits such as
salwar-kameez or sari. A common uniform
designed for all employees with a
name tag gives a professional outlook.
Nails Short, clean, and trimmed Nails Should be well trimmed and filed. Hands
should be manicured and nail polish,
if used, should not be gaudy or chipped.

¢ A balanced diet, adequate sleep, recreation, and exercise are needed

to keep one physically fit and mentally alert. Exercise firms up the
muscles and increases one’s stamina, at the same time helping one to
maintain a good figure and physique.
All the factors enumerated in Table 13.1 contribute not only to our
health and personality, but also to our work efficiency.
382 Tourism Operations and Management

First Impressions
First impressions are formed in the first 30 seconds when you meet a
customer. Since you are representing your company, the impression you
create is that of your company so make sure it is positive and is not the
reason to lose a prospective customer.
The customer judges the travel professional by the images which they
portray about themselves when they first meet their customer. These
images are of three types namely:
1. Visual
DE Voca
3. Verbal

Visual
What the customer sees in terms of your appearance, clothes, posture,
make-up, shoes, etc. speaks volumes about you. Body language, your
reactions, eye contact, gestures, and even a simple handshake sends out
subtle messages. Visual impressions are very strong and sometimes you
may be saying something, but your body language may be revealing an
opposite message. In such cases the customer may feel uncomfortable.
So make sure you greet the customer with a sincere smile and maintain
eye contact but do not stare. A smile can put the customer at ease and
can convey many messages such as—I am happy to see you, you can ask
me questions; I know my job and can help you. Everyone likes to be
greeted with a sincere smile and friendly eye contact.

Vocal
The way you speak and modulate your voice can give an impression of
your interest and professionalism. The tone of your voice can tell whether
you sound interested in hearing what your customer has to say or do you
sound bored or sarcastic. The speed and volume of your speech also
needs to be regulated. Do you speak loudly or is your voice so loud that
the receiver has to be held away from the ear or is your voice too soft
and unclear that they have to strain their ears to hear?
Vocal images are very important, especially when you cannot see the
caller and have to make your impression on the basis of what is heard.

Verbal
The words you use in your conversation are very important. Is your
language grammatically correct? Do you use correct words and
 Customer Service Skills 383

pronunciations? Is your language simple and easy to follow or are you

using slang language and difficult terms? Does the customer comprehend
what you are trying to convey?

Other desirable qualities

To be successful in the service industry, you should also develop the
following qualities:
¢ have a positive attitude
¢ be friendly and courteous
e be creative
¢ be well mannered and polite
¢ maintain a cheerful disposition
¢ build a good personality
¢ be patient and respectful
¢ have good communication skills
¢ be empathetic
¢ always be attentive and alert
¢ work in a quick and efficient manner
e show enthusiasm and be eager to serve
¢ be optimistic
¢ be knowledgeable and well read
¢ display honesty and fairness
¢ have a problem-solving nature
e have a good memory
* use common sense

TELEPHONE SKILLS
The telephone is the most widely used instrument to communicate and
is the first point of contact for most customers. If it is used skillfully, it can
be a very powerful marketing tool as a large percentage of business in
the travel industry is transacted over the telephone.
The tone of your voice and how you speak is very important as the
customer cannot see you. Vocal and verbal images are very important
for any transaction over the telephone. Your voice has to convey all the
messages which your smile or eyes would convey if you were facing
each other. A sincere smile can get reflected in one’s voice and one can
also project one’s personality and attitude through the way one converses
over the telephone.
384 Tourism Operations and Management

The travel professional should also remember that while communicating

via the telephone there is a possibility that certain problems may be
encountered, such as:
e The telephone connection may not always be clear. There may be
disturbances or the battery may be low.
e The customer’s facial expressions cannot be read.
* Customers may get distracted while speaking and attention span may
be low.
Hence, utmost care should be taken while communicating with
customers over the telephone and control your voice so that the message
you send is the one you really want to convey.
While answering telephone calls, the following should be kept in mind.
Ke Answer the phone within three rings. If the phone keeps ringing
unanswered, it suggests that the agency is unprofessional and may
tempt the customer to call another travel agency.
Greet the customer as per the time of the day and identify the
agency and yourself by saying ‘Good morning, Girikand Travels,
this is Neha speaking, how may I assist you?’
An informal way of greeting would be ‘Hi! Melanie speaking,
how may I help you?’
. Listen carefully to what the customer asks and repeat what is said
to check that you have understood correctly. Ask the name of the
caller, so that you can use it to give a personal touch to further
conversation.
Smile while talking and modulate your voice so that you sound
warm, friendly, and professional. Speak clearly and somewhat
slowly and make sure you pronounce words correctly.
. While answering the customer’s queries, be brief and to the point.
Remember, it is the customer who has made the call. Long answers
may confuse the customer and may be irrelevant. If the customer
keeps on talking off the point, then it is better to take control of
the conversation and ask necessary questions to get straight
answers.
If you cannot provide the information needed, inform the
customer that you would be connecting to another department
and would keep the call on hold. Ask the customer whether you
should put the call on hold or whether you should call back. If
the line is busy or the concerned person is unavailable, do not
 Customer Service Skills 385

keep the customer on hold indefinitely. Ask the customer whether

he/she would like to remain on hold or whether you could call
back shortly with the required information. Note down the contact
details of the customer and remember to call back as committed.
7. Make a note of customer’s instructions and repeat what you have
noted. Do not leave instructions to memory as one may miss out
important information. Formats for customer’s enquiries may be
available at some organizations, and note taking is a good habit
and prevents unnecessary complications for future communication.
8. Be courteous and patient with the customer, listen politely, and
do not rush the customer to disconnect.
9. Thank the customer for calling and showing interest in your
agency and if required give a date when you would call back.
Note the same in your dairy.
10. Make sure that you call back on the given date.

PHONETIC ALPHABET
As we have read earlier, in any travel organization, people are likely to
spend a lot of time on the telephone. Often the telephone lines are unclear
and some people’s accent makes understanding what is being said difficult.
Getting a message across is difficult and in such cases you may often
have to dictate or to hear names in the phonetic alphabet. To increase
clarity and reduce confusion, people use the phonetic alphabet (see Table
13.2), wherein each letter of the English alphabet has been given a name.

Table 13.2 Phonetic alphabet

Letter Code Word Letter Code Word

A Alpha N November
B Bravo 0 Oscar
C Charlie P Papa
D Delta Q Quebec
E Echo R Romeo
F Foxtrot S Sierra
G Gold T Tango
H Hotel U Uniform
I India V Victor
J Juliet W Whisky
K Kilo X X-ray
L Lima yi; Yankee
M Mike Z Zulu |
386 Tourism Operations and Management

The names given to each letter have been specially chosen because they
do not sound like anything else and there is little scope for error. Thus,
phonetic alphabet is a means of giving correct information such as client’s
details with a minimum possibility of error.

Example 13.1

The following customer's name and address has to be transmitted correctly:

Neha Roday
Aundh Camp
Pune
Using the phonetic alphabet, the following message will be given over the
telephone.
NEHA—November, Echo, Hotel, Alpha
RODAY—Romeo, Oscar, Delta, Alpha, Yankee
AUNDH—Alpha, Uniform, November, Delta, Hotel
CAMP—Charlie, Alpha, Mike, Papa
PUNE—Papa, Uniform, November, Echo

PRODUCT KNOWLEDGE
Every travel professional should be well versed with the product which
is being sold by his/her organization. Product knowledge goes hand in
hand with good sales and customer service skills. The secret of success as
a travel agent or tour operator depends on how well you know your
product and how much confidence your customers have in your
knowledge, judgment, and ability. In tourism this means that you should
know both the product and service you are providing and the method
by which the service will be provided. All staff working in the travel
agency should have sound knowledge about the product (see table 13.3).
For example, if the product you are selling is a resort in a hill station, you
should have thorough knowledge about the facilities available at the resort
such as number and type of rooms, banquet facilities, recreational
activities, amenities, the altitude of the hill station, climate, wind chill
factor, flora and fauna, etc. Customers have all kinds of queries, hence
product knowledge includes much more than what is printed in the
brochures. It includes general knowledge about the area, its culture,
history, geography, political party in power, local holidays, and days the
market is closed. ;
 Customer Service Skills 387

Table 13.3 Product knowledge

Destination Packages
Main attractions Different package options
Travel documents required Special interest tours
Accommodation Local city tours
Year round climate Excursions
Culture and cuisine
Currency and exchange rate
Safety and security
Communication facilities
Health and other hazards
Political situation

Transport Principal Suppliers

Type of transport Reputation or brand image
Reservation system Financial standing
Route Services offered
Timetables and fares Quality of service
Services offered en route Commission percentage
Connections Reliability
Distance of terminal from city
Baggage restrictions
p= Transfers

To increase product knowledge, the tourism professional can have

easy access to many different sources of information. He/she should only
ensure that the information gathered is current information or has been
updated as the industry is constantly witnessing many changes.
Product knowledge includes detailed information about the following:
1. Destinations
2. Types of transport to reach destination
3. Various tours and packages
4. Principal suppliers

Sources of Information
The most reliable source of information is a tourism professional’s
personal experience. A tourism professional should make it a point to
personally visit certain destinations on their own accord or with FAM
tours. Customers who have returned from a tour and other professionals
from the field can give first hand knowledge of the product. The tourism
388 Tourism Operations and Management
sources and
professional gathers information through various
use. A good
systematically stores and upgrades the information for future
itineraries
quality atlas helps in locating remote places and preparing
and is a bible for the tourism professional.
Other sources of information are as follows:
¢ brochures, guides, news bulletins, and promotional literature
published by principal suppliers, government tourist offices, tourism
ng;
organizations; directories for hotels, restaurants, and shoppi
e internet—websites on travel and tourism;
¢ documentary films, and presentations made by tourism professionals;
° newspapers—reports, articles, and write-ups by travel writers,
¢ television and radio programmes,
¢ posters and advertisements;
° statistics from the tourism ministry; and
e journals and magazines—travel trade magazines, hospitality
magazines, current affairs magazines.

THE SALES PROCESS

Every principal supplier or intermediary is faced with a challenging task
of selling travel related services to the customer, if they are to remain in
business. The number of service providers and the competition is growing
at a rapid pace, giving the customers a number of options to choose
from. Selling the travel product is their basic goal. This makes it necessary
to know their product; understand who their customers are, and what is
it they want. Every customer who calls on a travel agent or tour operator
has different needs and requirements.
Selling means understanding the customer’s specific requirements,
giving them all the information they need, suggesting travel plans, assisting
them in taking a decision, and influencing them to purchase the travel
product.
In a travel agency or tour operating organization the following
interaction takes place stepwise across the counter.
The steps in the selling process are discussed as follows:
Initial contact
Building rapport
Getting the initial information
i Finding
Co out what the customer really wants or qualifying the
prospect .
 Customer Service Skills 389

5. Analysing the information or analysis

6. Recommendations
7. Overcoming objections
8. Getting the commitment or closing the sale
9. Follow-up

Initial Contact
The initial contact is generally made by the buyer who walks into the
travel agency or makes a phone call and begins the conversation by
expressing a need or a desire.
The opening statement may be highly specific and to the point as:
I need a flight ticket from Pune to New Delhi on 7July in the morning.
Or it may be ambiguous as
I need a holiday and would like to leave town for a few days.

Building Rapport
Greet the customer and if in person, give a smile, establish eye contact,
and extend a handshake. If you are on the phone, smile before you speak
to add warmth to your voice. Express your pleasure in meeting them
and if you know them personally, ask about their job, hobbies, etc. Your
greeting should be sincere, to give the customer confidence that he/she
is in the right hands.
When a prospective client walks in, stop any private conversation or
reading and give him individual attention. Listen without interrupting
and concentrate on what is being said. If the telephone rings, ask a
colleague to answer the call or tell the caller that you will call back as
soon as possible.
Apart from establishing rapport, try to gauge their needs and their
level of commitment to travelling.

Getting the Initial Information

After the initial greeting, ask the client to be seated and introduce yourself.
The client will normally tell you his/her name which you must remember
and use in your conversation. Write down the name so that you do not
forget it or call him/her by another name, as this is a sensitive issue.
There are many things you need to know before you can give any advice.
The basic information which is needed includes
390 Tourism Operations and Management

¢ Where is he/she planning to travel?

* When and how would he/she like to travel?
¢ For how many days does he/she plan to stay?
¢ How many people would be travelling?
¢ Is it holiday or business travel?
¢ If purpose is holiday, what are his/her interests?
¢ What are the full names of the travellers?
e What is his/her budget?
e Does he/she require accommodation?

It is important to note down the client’s name, address, telephone

number, and e-mail id.
Since 90 per cent of the sales transactions in a typical travel agency
involve air travel, the class of travel—first class, business, or economy
ticket should be ascertained. The information gathered may be entered
directly into a computer reservation system (CRS) as the client answers
or if answers are complex, it may be written down with a promise to
respond with your recommendations within a stipulated time frame.

Finding Out What the Customer Really Wants

After gathering the initial information, it is necessary to probe deeper to
know the real needs of clients. It is important to check if the destination
the traveller has asked for, really meets his/her needs and is his/her budget
realistic. Getting the initial information and finding out what the customer
really wants are a part of the qualification process also called ‘qualifying
the prospect’.
Qualifying is the process of determining a client’s needs to see whether
you have a product or service to satisfy those needs. Prospects are the
people who call on your organization and express interest in your
products/services. Prospects may or may not become customers. It is
necessary to qualify a prospect as one has to decide whether the person
inquiring about the travel is really serious and whether the prospect has
any potential to use your service. The travel professional then decides
on how much time and effort can be spent on such a prospect, and also
which products and services should be recommended.

Analysing the Information or Analysis

After qualifying the prospect and assessing the needs, the travel agent
analyses the information to prepare a recommendation. —
 Customer Service Skills 391

While analysing the information, focus on cost and convenience and

offer the lowest available price to earn the sale and remain competitive,
unless the client has requested for a particular fare.
Focus on the benefits and features of the product to fulfil the underlying
needs of the client. Focus on facilities like the centrally heated swimming
pool at the resort for youth who are fond of swimming. Benefits or features
include climate, budget, special interests, sightseeing, etc. Physical
constraints if any need to be considered such as travelling with young
children, a physical disability, etc. Analysis provides a useful foundation
for presenting the recommendation.

Recommendations
The agent presents his/her recommendations which he/she feels will
provide the maximum satisfaction within the client’s allotted budget.
Convince the client that you have understood his/her needs and wants
and the product you recommend is best suited to him/her. Do not confuse
the customer with too many options or with irrelevant details. Let the
client participate and keep him/her actively involved and be a part of
the decision process.

Overcoming Objections
Sometimes the customer may not accept your recommendations. Listen
carefully to what your customer is saying so that you can clearly
understand the customer’s problem with your recommendation.
Sometimes the problem may be due to misunderstood communication
on either side, in which case you can keep asking questions till you
understand the customer’s requirements and the customer understands
the proposal which you have recommended. If you still feel your
recommendation will meet the customer’s needs, you may once again
explain its benefits to the customer, discuss the issues raised and tell
him/her that he/she has a point, but highlight the advantages of your
suggestion. If he/she still seems reluctant, make a new recommendation
or modify the original recommendation till your customer seems satisfied.
Tourism professionals should anticipate objections and should be
prepared for them as they are a normal part of the sales process.
Objections are generally requests for more information and indicate that
the customer has not been totally qualified.
392 Tourism Operations and Management

Getting the Commitment or Closing the Sale

After having spent valuable time with the customer and the customer
gives some indication of interest in your recommendations, it is in your
interest to get a commitment and close the sale at the earliest. Closing
the sale means getting the business. Help the customer in making up his/
her mind. Do not just hand over brochures and leave the final decision
to the customer or ask him/her to call back whenever he/she decides.
Give him/her a reason to make a decision like this is peak season and
the best accommodation may not be available later.
The sale may be closed by saying the following:
¢ The deposit for the tour is Rs 5000.
¢ Would you like to pay by cash, cheque, or by card?
e Shall I book executive class or economy?
¢ Tam sure your family will enjoy the tour.
¢ Do you wish to board from Chennai or Mumbai?

If you cannot get a commitment for closing the sale, get a commitment
to talk again or give a commitment saying you will call back on Thursday
to check what the customer has decided. In this way, the sales process
remains open and there is no ambiguity. However if there still seems to
be no commitment, it is best to terminate the sales conversation graciously.
Always remember that if you do not help your customer decide, he/
she will go to your competitor and you will lose the sale.

Follow-up
Follow-up refers to the sales efforts that take place after closing the sale.
It includes the following:
e request for payment;
¢ accept payment and handover airline tickets, hotel vouchers, etc.
° give necessary instructions for time to check-in at the airport, baggage
size, and allowance (checked-in as well as cabin or hand baggage),
reconfirmation procedure for return flight if any, etc.
¢ congratulate your customer on the decision and emphasize any special
offer or discount available;
¢ reassure your customer that you are always there to serve them if they
experience any problem and ask them to call when they return; and
¢ if you do not hear from them, make sure you call and enquire about
their trip; make note of any feedback which needs immediate attention
and incorporate the same in the next tour. |
 Customer Service Skills 393

Let your customers know that you care about them and hope to see
them again as repeat customers.

HANDLING CUSTOMER COMPLAINTS

When people use the services of a travel organizer for undertaking travel
for leisure or business, they have high expectations of the tour. They find
it difficult to accept things going wrong and often confront the first staff
member they find if they have any problem. The complaint may not be
related to you or your job but they still expect you to look into the matter
and resolve the problem, hence it is important that all staff members
know the organization, its products and develop customer service skills.
You cannot tell the customer that you are not aware of this and you
should not pass the buck on to someone else.
Customers may complain for a variety of reasons. The most common
causes for complaints are related to the staff, the equipment, facilities, or
treatment given to the customer. The reasons for some of the complaints
are as follows:
¢ customer does not get a special request which was promised by the
sales executive;
¢ staff misunderstands what the customer says or wants;
¢ front desk staff forgets to pass on a message;
* equipment in the room is not working or is damaged,
* room service is missing;
e linen has not been changed or is soiled;
¢ customer has been kept waiting;
e customer feels he/she is not getting what he/she has been charged
for or promised;
¢ food served is not hot, water is not chilled; and
¢ crockery smells of stale food served earlier.
If you want to achieve customer loyalty, you must listen to the
complaint, treat it as a genuine complaint, be sympathetic, and handle it
as per company policy. Every service personnel should understand that
a complaint is a very important source of information about the quality
of their services or products. It is better to know about the complaint and
regard it as an opportunity for improvement rather than having a
dissatisfied customer who does not complain but silently vows never to
come back to your organization.
394 Tourism Operations and Management

Different reactions are observed from customers who are unhappy

about your product or service. Some are aggressive and speak loudly in
public, while others are timid and keep their grievance to themselves.
Some others remain calm and composed and insist on what they feel are
their rights. Any complaint should be dealt with as per the guidelines
given below.
¢ Listen to the customer’s complaint. Listen patiently and attentively
to what the customer has to say even if he/she is shouting. Do not
interrupt or show any sign of anger, fear, or resentment.
¢ Identify the problem and make a mental note of important facts.
Seek additional information if required but do not appear to doubt
what is said.
e Empathize with the customer, say you are sorry and understand how
the customer feels. Do not be too apologetic and do not argue as
your customer is already annoyed and upset and this will just make
matters worse.
e Thank the customer for bringing the problem to your notice and
appreciate the trouble he/she has taken in informing you.
e Tell him/her that you will look into the matter immediately and inform
the company. Let the customer understand what you and the company
can and will do about the complaint.
¢ Do whatever can be done immediately. Inform the concerned staff
and department about the lapses so that they can ensure there are no
repeat complaints. Keep a record of the complaints and check that
they do not recur.
Customers’ comments are an invaluable source of information and
need to be documented. This information whether in the form of a
complaint or a compliment needs to be filtered back to the appropriate
person or department. Compliments are strong motivators; they boost
ones morale and help in raising service standards and growth of the
organization. Be gracious while accepting compliments and make a
mention of the positive feed back received in weekly staff meetings.
Display such positive letters or comment cards on the notice board.
When dealing with problems, always try and put yourself in the
customer’s shoes. Think how you would like to be treated if you were in
his/her situation. Showing empathy will help you in finding the right
solution.
The tourism professional should always remember that any pro-
blematic situation needs to be tackled right away. If you are unsure about
what to do, ask your superiors and act immediately.
 Customer Service Skills 395

Do not ignore the guest or the complaint hoping it will go away. It will
not. It will cause loss of goodwill and is bound to reappear. You cannot
make excuses or try to justify what has happened as customers are not
interested in excuses, they want results. They want to know that you are
concerned and are looking into the matter.
Tourism professionals should hone their customer service skills if they
wish to remain in competition and do profitable business. The very nature
of the tourism product is such that both technical skills and customer
service skills are necessary for a successful sale. Tourism organizations
should emphasize the importance of customer satisfaction and focus on
grooming and training their staff to develop desirable qualities, knowledge
and personality traits. Excellent interpersonal skills will go a long way in
creating and retaining satisfied and delighted customers.

SUMMARY
The customer is the backbone of the tourism industry because without a customer
to purchase the tourism products, there can be no business at all. Customer
service today aims at much more than just satisfying the consumer of the tourism
product or service, but is concerned with generating feelings of happiness and
delight, which meet and exceed their expectations.
Tourism professionals require people skills. Customers have different needs
and requirements. They come from varied backgrounds. A successful professional
will use both technical and interpersonal skills and begin by creating a good
first impression. The importance of a good personality, immaculate grooming,
physical fitness, and communication skills cannot be underestimated. Good
qualities are an added advantage in the service industry and should be developed.
The importance of these qualities should be highlighted.
Since a large percentage of business is transacted over the telephone, all
calls should be answered professionally. To sell any product, having adequate
product knowledge and knowing from where to gather the latest up-to-date
information is equally vital to the success of any programme. The product will
be purchased by the customer once he/she is satisfied and it is the job of the
travel professionalto recommend a suitable product and close the sale. Qualifying
the prospect to ensure that the customer is interested and has the potential to
travel needs to be ascertained, likewise, overcoming objections and getting a
firm commitment or closing the sale are two important steps.
Customers are likely to have some complaints at sometime during their travel,
which need to be handled with utmost care ensuring that the customer loyalty
is retained.
396 Tourism Operations and Management

KEY TERMS
Body language The personality trait of using facial expressions, gestures, sign
language, and grooming which convey certain messages in a social and
cultural context. ;
First impressio n The first and lasting impressio n that one forms within 30
seconds to five minutes of meeting a person.
Grooming The personality trait of dressing or the external persona which meets
and surpasses the perception, in the social and cultural context of society.
Interpersonal skills Skills involving relations between people, which are required
by all professionals to understand, empathize, and relate to different
customers in order to gain an insight into sub-conscious and conscious
mind of individuals.
Personality The inner and outer contextual meaning of the whole being of an
individual, referring to the perception of the external characteristics, internal
persona, traits, habits, gestures, body language in the social, and cultural
context.
Product knowledge Detailed information about the travel product in terms of
the facilities at the destination, mode of transport available, various packages,
and principal suppliers of various services.
Selling Influencing the customer to buy your product after having given all the
information required for the proposed trip and suggesting a travel plan most
suitable for the customer.

CONCEPT REVIEW QUESTIONS

1. Discuss the physical aspects which one should focus on to portray a pleasing
personality.
2. Explain the importance of product knowledge for all tourism professionals.
3. Explain each of the following phrases in a paragraph.
(a) A complaint is really an opportunity.
(b) The first impression is the last impression.
(c) It is necessary for the sales persons to qualify the prospect.
4, From where can a tourism professional gather latest information about a
destination?
5. Briefly explain the steps involved in the sales process in a travel agency.
6. Why are telephone handling skills of special importance in a travel agency?
7. What are the main causes of customer complaints? List any five and suggest
preventive measures.
 Customer Service Skills 397

CRITICAL THINKING QUESTIONS

1. List the qualities which are desirable in a tourism professional and evaluate
how many of the listed qualities you possess.
2. As an escort for an international tour, explain the procedure you would
follow and steps you would take if a customer complains about the amenities
in the hotel room.

PROJECTS/ASSIGNMENTS
1. Visit any two travel agents who handle outbound packages and ask for
information regarding package tours to Europe. Observe the staff and the
office and write down which of the two agencies you feel is more customer
oriented. Which of the two would you select as your travel consultant. As
a future customer give reasons for your choice.
2. Identify any five star hotel in your area. Call the central reservation number
and request for information on room availability after a fortnight. Ask for
the different types of rooms available and the room rates but do not make
a booking. Keeping telephone handling skills in mind, write down your
observations.

REFERENCES
Andrews, S. 2007, Introduction to Tounsm and Hospitality Industry. Tata McGraw-
Hill, New Delhi.
Baker, S. and J. Huypen 2006, Principles of Hotel Front Office Operations.
Thomson, Australia.
Clark, M. 1996, Interpersonal Skills for Hospitality Management. Thomson,
London.
Davidoff, P.G. and D.S. Davidoff 1996, Sales and Marketing for Travel and Tounsm,
Prentice Hall, New Jersey.
IGNOU Schools of Social Sciences TS-1 Foundation Course in Tourism. 1994,
Tourism Marketing and Communications, Berry Art Press, New Delhi.
International Travel and Tourism Training Programme 2004, IATA Training
Manual—Foundation. IATA Aviation Training and Development Institute,
Montreal, Canada.
Kotler, P., J. Bowen, and J. Makens 2005, Marketing for Hospitality and Toursm,
Third Edition, Pearson Education, Delhi
SATS 1997, South Asia Integrated Tourism Human Resource Development
Programme. Training Manual Entry Level Front Office, Colombo, Sn Lanka,
India Offset Press, New Delhi.
Weaver, D. and M. Opperman 2004, Tourism Management, John Wiley and Sons
Inc.
 Impacts of Tourism

Learning Objectives
After reading this chapter you should be able to:
understand the significance of tourism in the economic development of a nation
explain what is meant by the multiplier effect
understand the problems unregulated tourism can have on the host society
appreciate how tourism can help in preserving culture and environment
realize the need for environmental conservation
understand the role of stakeholders in developing responsible tourism
explain the terms carrying capacity and sustainable tourism development
appreciate the necessity for framing tourism legislations

INTRODUCTION
n the preceding chapters we have already read about the importance
of environment as a foundation for tourism development. We have
also discussed the role tourism plays in economic development of a
nation. However, while promoting tourism development at a destination,
tourism planners should ensure that the fragile environment and attractive
landscapes which are the very basis for tourism are not destroyed through
over-utilization.
 Impacts of Tourism 399

Two possible situations arise between tourism and the environment.

They are as follows:
1. To live in harmony with nature so that tourism is sustained.
2. ‘To exploit the environment and natural landscape by encouraging
excessive number of visitors and building so many facilities that
there is no natural wealth or scenic views left.
The very purpose of visiting the attraction is lost through over-
utilization of the destination for profit maximization. The continued
development of hotels and resorts in strips running parallel to lakes,
waterfalls, and coastlines, is a cause of concern. Ribbon development
results from the desire of every property owner to get a view of the lake,
the waterfall, or the sea. Such properties fetch premium prices and high
profits to the developers at the cost of the environment. Tourism activities
leave their impact on the destination, and if the capacity of the destination
is over-exploited, the attractiveness of the destination or the very reason
for tourists to visit the destination is lost. Pristine beaches, sand dunes,
wetlands, mangroves, coral reefs, and rare species of flora and fauna
which are the very basis for tourism may be destroyed due to the over-
use of a destination. Tourism development, if well planned and managed
can yield steady profit for a long duration provided the environment is
conserved.
A symbiotic relationship between tourism and the environment will
help sustain tourism for the host population as well as the guests or tourists.
It will have the least negative impacts on both the hosts as well as the
environment and will preserve the destination for the future generations.
The responsibility of conserving the destination lies with the tourism
planners.

ECONOMIC IMPACTS
Tourism contributes significantly to the economic development of a nation
and for this reason governments are prepared to invest public funds for
the development of tourism in a country. Public funds are invested in
developing infrastructure such as construction of roads, airports, etc. and
private investors are encouraged to construct hotels, resorts, and
transportation because of the perceived economic benefits of tourism.
India’s GDP has been growing at over eight per cent on an average since
2004 and is expected to touch the nine per cent mark in the coming
years.
400 Tourism Operations and Management

Travel and tourism industry contributes about 5.8 per cent to the Indian
in
GDP. The government is encouraging the private sector to invest
accommodation, entertainment, food and beverage sector, etc. by
providing incentives to the developers of facilities such as tax holidays
and is encouraging public-private partnership (PPP) projects. Tourism
promotion can be a very good tool in boosting economic development
through creating new jobs, and income generation opportunities, earning
a substantial amount of foreign exchange, and development of backward
regions. Certain economic costs have to be incurred if tourism has to
develop as an economic activity. These costs need to be planned and
managed well if the business has to run profitably.
Economic benefits of tourism include
¢ employment generator
e increased tax revenue
e foreign exchange earner
e rural development promoter
° improved infrastructure
e increased gross domestic product

Employment
The tourism industry has tremendous capacity to generate both direct,
indirect, and induced employment. Since it is a highly labour intensive
industry and many jobs involve low-skilled work, it is beneficial to the
vulnerable and unemployed sectors of the local community as formal
education and prior work experience are not mandatory. Jobs created
through tourism are spread across many sectors of the economy such as
hospitality sector, transport sector, retail sector, manufacturing sector,
travel and tour operations, etc.
Hotels, restaurants, airlines, other transport operators, tourist offices,
travel agents, guides, tour operators, etc. provide direct employment to
people at different levels in the organizational structure. Indirect
employment through tourism includes all ancillary service providers such
as florists, taxi drivers, electricians, plumbers, furnishers, etc. Shops and
emporia selling local handicrafts and handloom products provide a
marketing outlet to thousands of craftsmen, weavers, and artisans. A
general increase in tourism at a destination will stimulate growth of
employment in other areas as well. This type of employment is called
induced employment, such as more retail outlets, schools, housing facilities
for employees, etc.
 Impacts of Tourism 401

Many jobs created by tourism are in remote areas where job

opportunities do not exist or are scarce, for example, in hill stations many
families depend on tourism for their livelihood. Local hotels, attractions,
restaurants, transport, etc. provide direct employment to the residents.
Tourism provides a broad spectrum of jobs ranging from highly trained
managers in five star hotels and resorts to waiters, guides transport
workers, artisans, etc.

Tax Revenue
Tourism activities are also an important source of taxation revenue. Many
taxes are hidden, i.e. they are a part of a package or included in the cost
of the airline ticket so that tourists are unaware of such taxes. Tourists
also generate taxation revenue through the purchase of tourism offerings
which are subject to sales tax, service char ge, value added tax (VAT),
etc. Some taxes are ad valorem taxes, i.e. set as a percentage of the price,
while others like airport departure tax and visas are specific amounts.
Tourism generates both direct and indirect revenue for the government.
When people are employed on tourism projects, the government receives
revenue through income tax and VAT on goods purchased. The operation
of tourism establishments contribute to the government’s revenue pool
in many ways such as gambling taxes for running a casino, food licence
for preparing and servicing food, import duties on imported articles,
entry fee at attractions, etc.
Apart from curbing leakages, the economic benefits through tourism
can be further enhanced by the following measures:
1. Increase the amount of money spent by tourists at the destination
by
(a) Providing a greater variety of attractions and activities which
will increase the duration of stay and encourage repeat visits.
(b) Attracting alternative forms of tourism.
(c) Organizing shopping festivals.
2. Local ownership and management of tourism facilities at
destinations through
(a) Bed and breakfast establishments at destinations where there
is a shortage of hotels.
(b) Encouraging agritourism, ecotourism, cultural tourism, rural
tourism and farm stay with local entertainment.
(c) Involving local community in a wide variety of services such
as handicrafts, laundry, gardening, and ayurvedic medications.
402 Tourism Operations and Management

Tourism contributes to government revenue through

¢ airport taxes, fees, and levies
e entrance fee at attractions
¢ hotel and restaurants registration fees and licences; for example, liquor
licence
¢ travel agents and other tourism businesses registration/licence fee
e corporate income tax on profits
¢ import duty on items directly imported for tourism sector, for
example, alcoholic beverages
¢ local taxes like property tax
e personal income tax
¢ parking charges
¢ VAT on goods purchased

Foreign Exchange
Tourism has emerged as one of the largest foreign exchange earning
economic activity in India. Foreign exchange earnings from tourism are
computed by the Reserve Bank of India (RBI) as part of its exercise to
collect balance of payment statistics. Tourism is the only export trade
that earns large amounts of foreign exchange without reducing national
resources and without actually exporting any material skill. Inbound
tourism is the largest source of foreign exchange earnings and tourism
has been rightly called an invisible export.

Rural Development
Tourism creates jobs in the underdeveloped regions and in rural areas.
For example, rural tourism and ecotourism are popular forms of tourism
which generate employment opportunities and prevent the migration of
villagers to the densely populated urban slums. Because of tourism activity
in the region, basic amenities develop and raise the standard of living of
the rural poor.

Improved Infrastructure
Infrastructure is one of the basic requirements for successful tourism at
the destination. Tourism stimulates infrastructural development like good
airports, network of roads, sanitary systems, and water purification plants
etc. which not only benefit the tourists but the hosts as well and improves
their quality of life.
 Impacts of Tourism 403

Gross Domestic Product

International and domestic tourism combined generate up to ten per
cent of the world’s gross domestic product (GDP). This figure varies
from one country to another. In a growing economy, there is an increase
in GDP every year. The GDP reflects economic growth. This, however,
does not mean that the entire population is benefiting from economic
growth, as the distribution of income in developing countries is uneven.
Tourism should aim at economic development, i.e. an improvement in
the socioeconomic status of all people in a given population and not
only a privileged few. To measure economic development we need to
use other indicators which measure longevity, educational attainment
and an acceptable standard of living.
Governments encourage the development of tourism because of the
income it can generate specially in terms of foreign exchange earned.
The income generated by tourism has a positive impact on a country’s
GDP, balance of payments, and government revenue. However some of
these figures may be misleading unless they are corrected for leakages.

Leakages
It refers to the process through which tourism receipts are withdrawn or
leave the destination’s economy. This happens when money is spent on
buying goods and services from another economy or when money is put
into savings. The smaller the economy, the greater the likelihood that
tourism needs have to be imported. If many goods/services used by the
tourism industry need to be imported, tourism is said to have import
leakages. See Table 14.1 for sources of leakages in tourism.
Table 14.1 Leakages in tourism
Cost of imported goods and Food items, alcoholic beverages such as whisky, liquors, wine,
services for tourists flowers, etc.
Cost of capital investments Investment in quality construction material, equipment,
machinery for constructing tourist facilities
Foreign financial commitments International franchises management fees or royalty
Payments to foreign tourism suppliers Foreign airline carriers, tour operators abroad
Tourism development costs Cost of financial incentives provided by the government for
investment in tourism
Training and promotional expenditure Overseas training of officials, promotional costs overseas, travel
expenses for attending trade fairs
Payment incurred for importing goods Currency conversion charges, banking fees, and commissions
Demonstration effect Increase in demand for imported goods by locals
404 Tourism Operations and Management

Leakage is siphoning of income from the income flow of a destination.

Foreign exchange leakages occur when a country uses a large number of
goods and services such as building materials, food and beverages,
machinery and equipment, furnishings and furniture, foreign consultants,
management fees, etc. Other forms of leakages include increased con-
sumption of imported goods because of demonstration effect, costs
incurred by government in providing financial incentives, export of profits
to foreign owners, MNCs, etc. The real earnings from tourism can be
determined only after all leakages, i.e. payments made of parties outside
the country have been adjusted.
Leakages can be curbed by the following measures:
Use of local resources Local raw material, for example, building material
will add to the local flavour of the destination.
Local ownership Local ownership and control of hotels and restaurants
should be encouraged and governments should provide maximum
financial incentives.
Promotion of local foods and beverages Local foods and beverages
prepared under high standards of hygiene and sanitation may be modified
to increase their acceptability.
Conducting local training programmes Inviting trainers from within the
country would help the income to remain within the economy.
Ensuring quality and safety ‘Tourism providers should be more quality
and safety conscious so that tourists are agreeable to trying out local
products and do not demand goods from their home countries.

The Multiplier Effect

Money earned from tourism activity is a major contributor to the national
income of a country. Without considering receipts from domestic tourism,
international tourism receipts alone contribute vast amounts.
New money entering the economy in any form, be it investments,
government grants, remittance from workers abroad or tourist
expenditures—stimulates the economy not once but several times as it
is respent. The flow of money generated from tourist spending or any
source multiplies as it passes through various sections of the economy
because of the multiplier effect.
Let us consider the following example. An international tourist pays a
hotel for his/her accommodation and meals. The hotel uses part of the
money to purchase provisions such as groceries, meat, bread, linen, and
 Impacts of Tourism 405

flowers from the supermarket, bakery, furnishings store, and florist

respectively. Some of the money is used for salaries and wages to staff
and casual labour, some is kept aside for savings, and some used for
payment of property tax. The payment made by the tourist to the hotel
is a direct expenditure, while expenditure by the hotel on daily supplies
is an indirect effect of the original expenditure which the tourist made.
The waiter working in the hotel spends part of his salary on purchasing
provisions, part on house rent; and the additional payment received as
tips for good service on toys for his child and on a special outing for the
family. This shows that as income levels rise due to tourism, some
additional personal money is spent at the destination. These are induced
benefits of tourism.
The bakery will use the money received from the hotel to buy flour,
margarine, and eggs from the wholesale suppliers, on the workers’ wages,
on paying electricity bill, and on taxes. The expenditure made by the
baker is induced expenditure.
If we study each round of expenditure, we see that a proportion of
money goes to the local suppliers, the residents as salaries and wages
and to the government in the form of taxes. Money which is saved or
spent on imported goods will cease to circulate in the economy, loses its
stimulative value and is called a leakage. Leakages are far lower in
economies where businesses supply and support each other and amount
spent on imports is low. The concept of the multiplier is based on the
interdependence of the different industrial sectors of the economy. The
strength of linkages between these different sectors, determines the size
of the impact multiplier. For example, if the linen needed by the hotel is
not available in the furnishings store or is of poor quality, there is no
inter-industrial linkage to increase the positive impact of tourism on the
industry. In such cases, linen will need to be imported and the local
economy will not get the benefit.
If the hotel receives more guests and associated income, the amount
spent by the hotel in the local economy will be more, and will result in a
chain reaction of increased production, income, and expenditure which
will be reflected throughout the economy. Because of the interdependency
of various sectors, any change in tourist’s expenditure will bring about a
change in the economy’s level of production and income.
The size of the tourism multiplier will be determined by the number
and strength of the linkages within the economy as well as the various
sources of leakages. While intersectional linkages maximize the positive
406 Tourism Operations and Management

economic impact, because of the multiplier effect, leakages, lower the

multiplier effect as money is withdrawn from the economy through
imports.
The economic impact can thus be increased by supporting and creating
strong linkages within the tourism industry and minimizing the leakages.
Tourism can also create risks and negative economic impacts at the
local destination such as increased cost of living due to increase in the
prices of essential commodities like food, house rent, etc. Opportunity
costs of tourism in rural areas which is the cost of investing in tourism
instead of traditional farming, also gets affected.
Excessive dependence on tourism may have some risks in case of
emergency situations. Like natural calamities or terrorist attacks in which
case tourists may abandon a destination indefinitely.

ENVIRONMENTAL IMPACT
The environment is a powerful resource for tourism as it plays a major
role in attracting tourists to the destination. Tourism causes both positive
and negative impacts and impacts are greater if the environment is
underdeveloped or fragile. It was only in the mid-1960s after the growth
of mass tourism that people realized that nature is an exhaustible resource
and that tourism and related activities leave their mark on the
environment. Before we study the impact of tourism, let us understand
the meaning of the term ‘environment’. When we refer to the environment
we generally mean the natural or physical features of a landscape. This
includes the four divisions that our planet earth. has been divided into
namely, atmosphere, biosphere, hydrosphere, and lithosphere. Each of
these spheres have their own distinctive characteristics, support various
life forms, and are a distinct part of most tourist attractions. All these
spheres have an interdependent relationship and together create
conditions that are conducive for life to survive and grow on our planet.
The environment thus functions as a live system and any major
disturbance in any one sphere will have a profound effect on and disturb
the delicate balance of the ecosystem.
The term environment has been defined by many individuals. The
simplest definition is ‘the environment is a given set of conditions in
which one lives and is influenced, and in turn influences these set of
conditions’. The environment is composed of different components
namely physical, biological (also called natural components), and social
 Impacts of Tourism 407

(human-made components). The physical components or a biotic

component of the environment include the non-living elements in the
environment such as latitude, altitude, location, temperature, rainfall,
soil, etc. Each of these factors has an influence on the natural environment.
The biological components include life forms which are classified as
producers, consumers, and detrivores or scavengers. All these form part
of the food chain. In the environment all elements are inter-related and
interdependent on the various food chains such as terrestrial (land) food
chain, marine food chain, etc.
A combination of different food chains forms a food web.
Food chains generally have three to four levels of energy transfer,
also called a tropic level. The tropic levels represent the basic framework
for all ecosystems.
The social environment is the third component of the environment.
Early humans had a limited interaction with their natural environments
and lived in harmony with nature. Technological advances and political
factors have had a great impact on the level of development and the
level of interaction with the natural environment under the banner of
tourism development. Natural resources have been exploited, artificial
resources have been created, and wastes are piling up. All this has resulted
in attraction, modification, and degradation of the natural environment
(see Exhibit 14.1). The extent of the changes and damage is so severe
that if tourism developers do not change their approach, it will not only
endanger tourism activities but also the very basis for survival of
humankind.

Exhibit 14.1 Tourism Environment

=”
From the tourism perspective, the tourism environment comprises of the following:
1. Natural environment
(a) Beaches (b) Caves
(c) Water bodies—lakes, rivers, and oceans (d) Forests
(e) Hill stations (f) Wildlife
2. Built environment
(a) Accommodation and built facilities (b) Transport infrastructure
(c) Theme parks (d) Dams and reservoirs
3. Natural resources
(a) Air (b) Water
(c) Climate—temperature, rainfall, snow, glaciers
408 Tourism Operations and Management
t include
The major negative impacts of tourism on the environmen
¢ environmental pollution
¢ depletion of natural resources
e land erosion
e loss of natural habitats
e traffic congestion
e garbage trails

Environmental Pollution
bodies,
The largest negative impact of tourism is pollution of air, water
on
land surface, and noise pollution in areas of tourism activity. This polluti
ction of
is mainly caused by various modes of transportation and constru
tourist accommodation.
Transport pollution is caused by an increase in road and air traffic.
This also results in noise pollution, especially if airports are located in
the heart of the city. Aircrafts produce toxic nitrogen oxide during take-
off and landing. Noise and air pollution in Hong Kong has reduced ever
since the airport was shifted from the city to Lantau Island. Water-based
sports and water transportation are major causes of oil spills.
Architectural pollution of the natural landscape because of haphazard
construction of hotels, resorts, and conference centres and other high
rise unsightly concrete structures also gives rise to visual pollution. For
example, at the Niagara Falls, Canada, every other hotel is called Falls
View and new high rise buildings were being constructed, each higher
than the other to give a view of the breathtaking Horseshoe Falls from
the hotel room.

Depletion of Natural Resources

Natural forest resources are lost through deforestation, when forest land
is used for development of buildings for tourism or when trees are felled
for fuel and camp fires. Careless behaviour by tourists like throwing
lighted cigarette stubs or not extinguishing campfires can cause forest
fires. Many locals earn their livelihood through medicinal plants and
herbs collected from forests. Deforestation deprives them of this activity.
Graffiti on trees, caves, and monuments mars the beauty of the environ-
ment. Scarce natural resources, such as water are often affected in areas
where swimming pools and golf courses need to be maintained.
 Impacts of Tourism 409

Land Erosion
Mass tourism and reckless behaviour on the part of the tourists often
result in this problem which is seen mainly on nature trails, hill stations,
and coastal areas. Deforestation for construction of new facilities or to
clear vast stretches of land on hill slopes for winter sports and construction
of ski-lodges is one of the major causes of erosion of the rich soil cover.
Construction of hotels and other tourist facilities on the beach can erode
sand dunes and affect marine life. The marine ecosystem is particularly
fragile and is damaged by irresponsible tourism such as driving vehicles
on long stretches of beaches disturbs birds which breed in coastal areas.
Removal of forest cover is a common cause for landslides in hilly areas.

Loss of Natural Habitats

Indigenous plants and animals may lose their natural habitat by damage
resulting from tourism activities (see Exhibit 14.2). Animals in jungles
are not used to the noise of vehicles or passengers and may get stressed
out by the disturbance caused by insensitive tourists on safari tours.
Presence of a large number of visitors may affect the food habits and

Exhibit 14.2 Impact of tourism on natural resources

Natural resources such as water, wildlife, forests, mountains, islands and beaches bear
the impact of tourism. Hotels, swimming pools, water sports, and golf courses, can
put critical pressure on water resources, especially in areas of water scarcity. Oil spills,
trash, and plastic waste dumped into the sea by callous water transporters and cruise
ships have led to the death of millions of birds and marine mammals who mistake
plastic bags forjelly fish and swallow them.
Fragile coral reefs are damaged by inexperienced scuba divers accidentally stepping
on them or by propellers of boats.
Trampling and damage of vegetation by feet and vehicles and destruction of
vegetation by erosion or by gathering wood and plants and lighting campfires is
another impact of tourism. Beaches, sand dunes, wetlands, mangroves, and threatened
and endangered flora and fauna are destroyed by unplanned tourism. Killing animals
to supply goods for the souvenir trade is a major outcome of tourism. Poaching and
illegal trade in wild animals and their products which are sold to tourists at phenomenal
prices is still rampant in forests. For example, poaching and hunting have led to the
extinction of the Indian cheetah. Demand for ivory ornaments and animal hides have
led to a considerable reduction in the elephant or rhinoceros (for ivory horn) and
tigers, zebras, and other wild animals (for hides). Wild animals’ fur, skin with head and
tail, tusks, or feathers are still traded illegally at phenomenal prices. The number of
wild animals like the crocodile, hippopotamus, lion, tiger, leopard, one-horned
rhinoceros, gorilla, and elephant are steadily depleting.
410 Tourism Operations and Management

breeding of animals. Marine creatures and coral reefs get damaged by

propellers of boats.
Fires used to clear forests for land use have triggered an ecological
disaster with poisonous smog blanketing most of South-East Asia. The
heavy air pollution has resulted in respiratory tract and skin problems in
people residing in Singapore, Malaysia, and Indonesia.

Traffic Congestion
This is a common problem encountered at many destinations due to a
large number of tourist vehicles ranging from cars to tourist coaches and
caravans. Vehicles parked in a haphazard manner on narrow roads and
no parking zones can mar the beauty of scenic drives and popular
destinations creating traffic jams, inconvenience to both locals and tourists,
damage to roads and pavements/footpaths and an increase in road
accidents as well as air pollution.

Garbage Trails
Garbage is a common cause of land and water pollution and the presence
of improperly disposed waste at any destination is not only aesthetically
unappealing but also damages the plants and animals in that area. Non-
biodegradable waste builds up in the environment and is an eye sore.
Biodegradable wastes can alter the soil and attract animals into tourist
areas. The use of the oceans to dispose untreated sewage from tourist
accommodation on the beach or from cruise liners is a major problem
which environmentalists are aware of and laws to enforce clean oceans
are being practised in some areas. The use of polythene bags and plastic
bottles while travelling from one island to another by water transport is
being monitored in Andaman and Nicobar islands. Tourists are given
bags made of natural material to carry their belongings and are charged
a refundable deposit for the same.
Like tourism, the environment too has its impact on monuments.
Exhibit 14.3 is about the world famous Ajanta Caves.

Positive Impacts on the Environment

The tourism industry generally pollutes the environment to a lesser extent
as compared to most manufacturing industries especially if eco-friendly
tourism is propagated.
Tourist destinations, such as national parks, wildlife and bird sanctu-
aries, gardens, and hill stations help in maintaining the ecological batance.
 Impacts of Tourism 411

Exhibit 14.3 Environmental impact on Ajanta Caves

The Ajanta and Ellora rock cut caves in Aurangabad, Maharashtra contain world famous
Buddhist, Hindu, and Jain art in the form of sculptures and paintings and have been
accorded ‘World Heritlage Site’ status by UNESCO. The paintings depict the life of the
people during the eighth century.
The paintings have been damaged by microorganisms, soil seepage of rain water,
chemicals used to protect the paint, fumigants, and vehicular pollutants. An
afforestation drive on 500 hectares land near the caves was implemented in 1992.
Trees restrict soil particles from entering the caves, reduce the scorching effect of the
suns rays, and reduce wind velocity.
The carrying capacity in the caves should be fixed as warmth and moisture through
breathing can help micro-organisms to multiply, which damage the paintings. Certain
plants stop the growth of these microbes and they should be planted. Paintings have
been damaged by graffiti; hence protection of the caves is necessary. Rain water
seepage from cracks in the rocks has been controlled by laying pipelines, thereby
controlling moisture. ;
The caves should be kept cool and dry and tourist behaviour should be kept in
check. Regular fumigation should be done to control microorganisms and bats in the
caves. Visitors’ vehicles are not allowed near the foot of the caves but parked in
special parking zones and only special buses are operated to ply from ‘T point’ up to
the foot of the caves.

Some important positive impacts are

e the environment in these areas is kept free from industrial pollutants

like smoke, noise, and industrial liquid wastes;
¢ such activities help in maintaining ecological balance;
¢ historical sites are preserved and restored;
¢ endangered species are protected in national parks and wildlife
sanctuaries;
¢ coral reefs and other forms of marine wealth are protected;
¢ forest areas are protected;
¢ revenue generated from visitors’ charges or donations invited from
visitors can help conserve wildlife and endangered species, for
example, Jurong Bird Park, Singapore and Night Safari, Singapore,
request visitors to contribute towards maintaining the creatures in
these built natural attractions;
¢ natural attractions help create awareness about the environment and
educate the public through wild life education and interpretation;
and
¢ provides for captive breeding programmes for endangered species
of wildlife in zoos.
412 Tourism Operations and Management

SOCIOCULTURAL IMPACTS OF TOURISM

Although the tourist is a temporary visitor at a destination, he/she leaves
behind lasting impacts on the host community. The economic impact of
d
tourism, i.e. the dollar or other foreign currency is consumed or investe
by the host but what the host has seen or learnt in the brief encounter
with the tourist is often retained and imitated. The demonstration effect
in terms of language, clothing, and behaviour pattern, often leave their
lasting marks in underdeveloped and developing countries.

Aspects of Tourist—host Relationships

The aspects of tourist-host relationships are as follows:
Since tourists are temporary visitors, the relationships are superficial
and short-lived, with limited expectations and trust.
The hosts have to work to provide a satisfactory tourism experience
to the tourists. This work begins from the minute the tourists reach
the destination. If they do not get adequate financial benefits or are
required to undergo hardships, it will be reflected in their behaviour.
Tourism being a commercial activity, the hospitality shown by the
service providers and their courteous behaviour may be a put on act
and not genuine feelings towards tourists.
Because of linguistic and cultural barriers, the interactions may create
misunderstandings especially in certain sensitive issues.
In the context of the guest and host, tourism is an unequal and
unbalanced experience. Most tourists are strangers in unfamiliar
surroundings. They stand out from the host population terms of
physical appearance, i.e. colour of skin, hair and eyes; the language
they speak or understand; their dress and mannerisms. They have
disposable money, have mostly lived in cities and look forward to a
pleasant and memorable experience. The hosts view tourists as
superior beings, having unlimited spending money, coming from
affluent, developed nations and hence try to imitate them.
Tourism is a service industry, and since the tourists have the spending
power, they assume the superior position and may look down upon
the hosts.
The host is knowledgeable about the destination, sightseeing places,
routes, prices, etc. while the tourist is ignorant and is at a disadvantage
in this respect.
 Impacts of Tourism 413

Tourist—host Interactions
Tourism involves social interaction between the tourist and the residents
or hosts. This interaction may bring about a change in the norms and
values of a society, the prevailing dress code and trends in general. Social
impacts are visible sooner than cultural impacts.
Along with social interaction, tourism brings people from different
cultural backgrounds together and results in a cultural exchange. Cultural
impacts refer to long term changes in arts and crafts, religion and rituals,
community structure, etc.
Sociocultural impacts of tourism are inter related and result from the
interaction between two distinct groups of individuals—the tourists and
the residents. However, most interactions between the tourists and the
residents are at a superficial level and take place in the following situations.

Social interactions
While sharing common resources and facilities at the destination, for
example, travelling in local buses and trains, bathing on the beach, or
having meals in restaurants. They are basically social meetings with little
interaction.

Economic interactions

While using facilities specially created for tourists like guide and escort
facilities, different types of accommodation or shopping for handicrafts
and souvenirs. They involve buying, selling, and bargaining.

Cultural interactions
While studying their culture by stepping out of the ‘tourist bubble’ and
experiencing their lifestyle through visits and home stays. Interactions
with locals, community leaders, and visiting places of cultural significance
or seeing staged performances which depict indigenous cultures. The
intensity of the interaction is maximum in this case.

Impacts on Society
The impact tourism will have on society varies from destination to
destination and depends on the nature of tourism, attitude of the hosts,
background of the tourist, and the strengths and weaknesses of the
destination. Figure 14.1 depicts some of the negative impacts of tourism
on society.
414 Tourism Operations and Management

Rural urban
migration
Disrespect of Disruption
local customs of lifestyle

Money Staged
laundering authenticity

Negative
Sociocultural
Crime— ae Impacts ee eee Narcotics
pick-pocketing, and
POGUE LAPS drug abuse
murder

Decreased
Alcoholism use of local
language

Prostitution, Health issues

:
pedophilia, HIV/AIDS
Pe Hees
homosexuality VBC
Ebola virus

Fig. 14.1 Some of the negative impacts on society

Although tourism cannot be blamed for all social evils, it is a known

fact that the presence of strangers, temporary visitors, floating populations,
or even the armed forces may accentuate such social problems. To the
host population, tourism is a mixed blessing. The positive impacts are:
develops entrepreneurship
provides jobs, increased income, and quality of life
creates an economic multiplier
preserves heritage
revives arts and crafts
helps national and international integration by breaking down
linguistic barriers
 Impacts of Tourism 415

¢ develops facilities and infrastructure

* revives vernacular languages
Since tourism leaves its mark and never leaves a host society or culture
unchanged, the negative impacts are minimized by the positive impacts
and sufficient remedial measures are being taken up by tourism
organizations and the government to resolve the social evils in society.
Many tourism organizations like UNWTO, IATA, UFTAA have raised
their voice and passed resolutions against this menace. Governments,
NGOs, and local bodies are taking measures and sensitizing their citizens
travelling abroad against drug abuse and the consequences if caught with
drugs.

THE DEMONSTRATION EFFECT

It is an outcome of the guest-host relationship where residents who
perceive the tourists as superior beings, try to copy their behaviour. The
demonstration effect is most visible in the younger generations who may
be discontented with their own lifestyle and try to emulate the tourists.
This is seen in dressing up like the tourist—casual attire, flowery shirts,
couple of cameras hanging around the neck, sun glasses, comfortable
footwear, floppy hats, etc. and discarding the traditional outfits. Locals
may migrate from villages or small towns to cities in search of better
incomes, women folk joining the work force, all of which bring about
changes in the social structure.

Attitude
It refers to the behaviour pattern of both the tourist and the host. As
tourism grows, local infrastructure which was adequate for the host
community, needs to cope with the tourism related stress. The degree of
acceptability of or irritation of the host community is expressed by the
attitude of the host towards tourism related activities which affect their
quality of life. How the hosts perceive tourists is well presented by Doxey
(1975) (see Table 14.2).
The /rridex (derived from ‘Irritation Index’) represents the increasing
irritation of residents as the impact of visitor numbers increases (see Table
14.2).
This model is a simplification of the complex relationships and sets of
attitudes that develop between tourists and host communities. The specific
ability of host communities to accommodate or tolerate tourism, and the
attitudes which are formed as a consequence, are known to differ from
416 Tourism Operations and Management

Table 14.2 Irridex model of community attitudes

=
Stage Host community Characteristics
attitude

Stage 1 Euphoria e Small number of visitors

© Visitors seek to merge with the local community
e Host community welcomes tourism
e Limited commercial activity in tourism
Stage 2 Apathy e Visitor numbers increase
e Visitors are taken for granted
e The relationship between tourists and the host
community is more formalized
Stage 3 Irritation e The number of tourists grows significantly
e Increased involvement of external commercial
concerns
e Increased competition for resources between
tourists and residents
© Locals concerned about tourism

Stage 4 Antagonism ® Open hostility from locals

e Attempts to limit damage and tourism flows

Source: Doxey 1975

community to community, and are determined by a number of factors,

including the number of visitors, types of visitors, length of visit, and
cultural distance between hosts and guests. The type of contact,
characteristics of the destination, and specific community groups also
act as determinants (Keyser 2002).
The guest-host impacts range from minimum to maximum and are
influenced by the number of tourists, duration of stay, their behaviour
and attitude towards each other and how stressful the interactions are.

CULTURAL IMPACTS
Culture is one of the major attractions or motives to travel for tourists.
Tourists travel to study and experience the culture of different societies.
They are attracted by cultural events, handicrafts, traditional dress,
religion, dance, music, folktales, customs, ceremonies, and food. Culture
includes one’s behaviour, beliefs, language, and the way of life of a group
of people during a particular period of time. Apart from creating
awareness about one another’s culture, tourism has a marked influence
 Impacts of Tourism 417

on various aspects of a society’s culture. When tourists visit an unknown

destination, and are unaware about local customs and practices, a conflict
situation may arise. Culture shock and cultural arrogance are often the
reasons for causing conflict between the tourists and the host. Culture
shock results from witnessing a totally different lifestyle or behaviour
and may be experienced by either the guest or the host. Lack of
communication and understanding can cause such situations. Cultural
arrogance arises when there is a continual intentional disregard of local
customs and insensitivity to the feelings of the host. For example, tourists
who do not take off their shoes while visiting a temple or take photographs
when they are requested not to do so are displaying cultural arrogance.
Tourists need to recognize and respect local cultures and need to be
briefed on how to behave before they interact with the locals. Knowing
and understanding the local culture can help minimize the negative
impacts.

Culture and Authenticity

Mass tourism has resulted in a shift from authentic natural culture to
contrived culture and tourism planners are fulfilling the quest for knowing
and enjoying culture.
While tourism helps in preservation of culture and rejuvenation of
traditional art forms, sometimes locals cannot meet the demands or sell
handicrafts at low prices. The demand for large quantities of artifacts at
cheaper prices has led to commercialization of material culture which is
either mass produced in a factory or imported from abroad. In both
cases, there is loss of authenticity.
This may lead to disappointments and misunderstandings for both
tourists and residents. Handicrafts are time consuming and authentic
crafts involve a lot of effort while the number of articles produced per
day is low. Mass produced or factory produced crafts are cheaper and
often the tourist is disappointed to note that the artifact purchased in one
country has the manufacturing label of another country.
Museums may display authentic exhibits such as original sculpture
and paintings which have been preserved, while in contemporary
museums many of the exhibits are reproductions. Museums at forts and
monuments often display models of original artefacts used by great leaders
of that era, while some other museums have life-size figures sculptured
from wax or plastic. Folk dances and music during religious rituals in
418 Tourism Operations and Management

villages and urban public spaces retain their authenticity. But when
performed on stage or as part of a cultural festival, they become part of
the contrived form of culture. This form is popular both in India and
abroad and cultural festivals are being staged and used to promote India
abroad.
There is a visible shift from authentic to touristic low-cost package
tours. Mass tourism focuses on staged culture creating a tourist bubble
which separates the tourist from the local life at the destination. For
example, the cruise down the river Mandovi showcases Goan culture
through songs and folk dances aboard the ferry, which are staged to
attract mass tourists.
Cultural tourism has expanded to cover heritage tourism and includes
sites such as residences of royalty, historical buildings, artifacts, and
traditions which have been passed on from one generation to another.

Minimizing Negative Impacts on Culture

To minimize the negative impact, it is necessary to ensure that tourism
develops gradually so that the local residents have sufficient time to adapt
to the change and understand and participate in tourism development in
their region. The local residents should be informed about the benefits
that tourism brings to the destination and how everyone has a role to
play in tourism promotion and hospitality towards the guests.
Negative impacts on culture can be minimized by doing the following:
¢ Management of the tourists is important as sometimes they are the
cause of the problem. Tourists need to be sensitized about the social
norms and customs which are in practice at the destination.
¢ Providing appealing and informative interpretation can be another
way of minimizing negative impacts on culture. Interpretation is the
process by which the significance of the site is explained to the visitors.
It can be done by a guide, by signage, brochures, books, tourist guides,
i.e. both verbal and written methods may be used.
¢ ‘Tourism professionals should prepare a code of conduct for tourists
and provide travellers tips to ensure that sensitive issues are not
overlooked.
A form and scale of tourism development that is appropriate for the
local society and takes into consideration the social carrying capacity
should be included. Exceeding the social carrying capacity or the tolerance
levels of the locals will create two negative impacts. They are
 Impacts of Tourism 419

1. Residents will be irritated or resentful of the visitor’s presence.

2. Tourists/visitors will be dissatisfied with their destination
experience because residents will not be friendly or hospitable.

POLITICAL IMPACTS
The growth and development of tourism depends on the political forces
that govern the country. The impact is more marked in developing
countries. Both internal political structure as well as international politics
have a marked impact on the tourism policies and tourism growth in a
country. If there are political upheavals and unrest in one part of the
world, the impact is felt in other parts of the world, affecting tourist flows
into the country. For example, air travel to and over Libya was banned
by the international community after the bombing of an aircraft over the
Scottish town of Lockerbie. This was a political decision to pressurize
Libya to hand over the bombers for trial. By imposing this ban, travelling
to Libya became extremely complicated. Visitors were forced to fly to
neighbouring countries and travel by land to reach Libya because of the
ban on air travel. Political decisions are very powerful decisions and
policies formulated by the government affect each and every aspect of
tourism such as currency exchange, airline operations, operations of
MNCs, cross border movements of people and goods, currency,
documents required for international travel, health regulations, etc.
Tourism is affected by the international relationships between different
nations and the impacts that follow from the national tourism policy.
Some policy decisions of the government act as a stumbling block to
travellers like imposing a ban to travel to certain countries, visa policies,
etc. The earlier policy limiting the amount of foreign exchange outbound
tourists from India could carry has been abolished.
Levels of taxes imposed on tourism activities by the government have
an impact as they can promote or discourage the flow of international
tourists. The high taxation and more complicated travel requirements
will make people think twice before undertaking a journey. Exit taxes,
visa and passport requirements and charges, foreign exchange restrictions,
entry and exit restrictions, special permits, etc. all act as deterrents to
travel.
Changes in the political scenario also have a marked impact on tourism.
For example, after the downfall of the Apartheid regime, many tourists
chose South Africa as a destination instead of the usual popular
destinations.
420 Tourism Operations and Management

s
Terrorism, incidences of violence, political unrest, and natural disaster
and
have serious consequences and have a direct impact on tourism
the
tourists avoid not only the destination but the country as well. After
2001,
9/11 terrorist attack on the World Trade Centre in New York in
there was a decline in travel by Americans and to the USA. There was a
general slump in global tourism, many people lost their jobs and tourism
industry was in serious financial crisis especially travel agents and tour
operators who had invested heavily in accommodation and airline
bookings.
The recent 26/11 terror attacks on Mumbai, India led to heavy
cancellations of bookings for events, cruises, hotel stays, luxury trains,
festivals, etc. Travellers planning to head to Goa, Kerala, Lakshadweep,
etc. to celebrate New Year’s Eve, changed their minds, resulting in massive
financial losses for the tourism industry.
India Tourism is organizing hospitality tours inviting outbound tour
operators from Europe to visit India so as to reassure them about tourists’
safety and security.
Tourists look for destinations which have political stability, peace. and
security as these are key words for promoting tourism.

MEASURES TO REGULATE TOURISM IMPACTS

The impact of tourism on the environment is a serious issue which needs
to be addressed immediately, if tourism is to survive. Environmental
impacts can be minimized by using management tools such as carrying
capacity, visitor and traffic management, LAC, environmental impact
assessments, and sustainable tourism development.

Carrying Capacity
The number of visitors and the type of developmental activities to be
made available at a destination are based on the carrying capacity. The
concept of carrying capacity is not new and has been followed by several
disciplines such as agriculture, engineering, etc. Simply defined it means
determining the maximum capacity which a building, an infrastructure
or a facility could sustain with regards to its number of users. Farmers
use this technique to calculate the number of cattle which can graze on a
farm of a certain size for a specified period of time without causing negative
impacts on the soil such as soil erosion, compaction, and delayed
regeneration of pastures. Builders use this technique while constructing
structures. Exceeding the carrying capacity will result in negative impacts.
 Impacts of Tourism 421

In tourism carrying capacity means that level of tourism activity at a

destination that could be maintained without having any adverse
environmental, economic, social, or cultural impacts on the destination
and the host population.
Carrying capacity is the maximum number of people who can use a
site without an unacceptable alteration in the physical environment and
an unacceptable decline in the quality of the experience gained by visitors
(Wall and Mathieson 2006).
The initial concept of carrying capacity used half a century ago, referred
mainly to the physical carrying capacity of buildings or the biological
carrying capacity used by farmers. The term tourism carrying capacity
has wider dimensions which include the overall quality of the visitors
experience at the destination. The dimensions of carrying capacity are
interrelated and influence one another.
They include
¢ environmental carrying capacity
¢ physical carrying capacity
* economic carrying capacity
¢ socio-cultural carrying capacity
* perceptual carrying capacity
If a destination is to remain popular and continue to attract new and
repeat tourists, all the above mentioned dimensions need to be considered.

Environmental carrying capacity

This refers to the maximum number of visitors who can use an area
without causing any permanent damage or change in the ecological
systems. If the environmental carrying capacity is exceeded, it will result
in destruction of the fragile environment, its flora and fauna, irreversible
damage to the ecosystems, soil erosion along footpaths and loss of habitat
for endangered species. Environmental carrying capacity can be
determined by the conservation importance of local flora and fauna,
water quality of lakes and rivers, shells and coral on beaches, marine life,
soil erosion sensitivity, etc.

Physical carrying capacity

This dimension refers to physical space and the number of people or
vehicles that can be accommodated by the available services, infra-
structure, and facilities. This includes the availability and adequacy of
transportation, accommodation, food service establishments, attractions,
422 Tourism Operations and Management

and tourist facilities at the destination. It also includes the infrastructure

in terms of utility facilities like water supply, waste disposal systems,
electric power, and telecommunications as well as facilities related to
health and safety. All these have upper limits in terms of the number of
people who can be safely accommodated or supported. Every hotel,
vehicle, or restaurant has its maximum carrying capacity which should
not be exceeded. For example, in Singapore the number of private cars
on the city roads is restricted by charging heavy taxes.

Economic carrying capacity

This dimension refers to that extent of tourism development in a region
that provides optimum overall economic benefits to the host population
without distorting the economy. Uncontrolled or unplanned tourism is
likely to result in inflation and shortages of essential commodities. Tourism
projects which can provide gainful employment to the local community
should be developed.

Sociocultural carrying capacity

This refers to the local community’s perception towards all tourism related
activities, the number of tourists and their involvement in tourism activities
without having a detrimental influence on their lifestyles and activities.
It is that level of tourism that helps maintain and preserve historical
monuments, local arts and crafts, customs and traditions as well as values
and beliefs. Exceeding this capacity could lead to a hostile attitude towards
tourists and deterioration or transformation of historical, cultural, and
built resources.

Perceptual carrying capacity

This refers to the number of tourists who can be accommodated at an
attraction or at a destination without affecting the overall quality, the
enjoyment, and the comfort level at the destination. Too many people,
congestion, and overcrowding in small spaces has a psychological impact
leading to an unfavourable tourism experience. An optimum number of
people are acceptable, beyond which the tourist experiences discomfort.
What level is optimum depends on what the tourists perceive as
overcrowding and how comfortable they are in a crowd. The perceptual
carrying capacity is how tourists perceive the destination, their attitude,
and levels of acceptance and tolerance. It is the point at which the tourist
begins to find a visit unacceptable. |
 Impacts of Tourism 423

Tourism carrying capacity refers to the type and extent of tourism

development and visitor use that does not result in environmental
problems or destruction of ecological systems, generate social problems
or loss of cultural identity, exceed infrastructural capabilities, depreciate
visitor satisfaction levels or go beyond the capabilities of resource
managers to manage change (Keyser 2002).

Factors affecting carrying capacity

As we have read, carrying capacity has many dimensions and a large
number of factors affect the carrying capacity of a destination. These
factors range from the type of tourism to technological advances in the
region. However, the overall carrying capacity of a destination is often
determined by a single factor. It is this most limiting factor which
determines the true carrying capacity of a destination, and this may not
necessarily be related to environmental issues. For example, a destination
may receive lesser tourists than the environment can support, but more
than its host population may accept. The sociocultural dimension should
also be considered while deciding on carrying capacity.
A destination may have adequate rooms to accommodate 5000 tourists
per night, but may have a sewage plant which can handle only 2000
tourists staying overnight, in which case the carrying capacity will be
2000 tourists and not 5000 tourists as untreated sewage will make the
physical environment unacceptable.
Carrying capacity concept in tourism is very complex and many factors
need to be considered while determining the level of tourism which can
be accommodated, without hampering the quality of the destination
experience in the years to come. The factors affecting carrying capacity
are shown in Table 14.3. While the carrying capacity approach attempts
to prevent over utilization of the destination by identifying an upper
limit to the number of visitors to an area, experience has shown that it is
not necessarily the number of visitors which create a negative impact,
but the visitor’s behaviour which is more important. Sometimes, even a
few visitors can cause irreparable damage to the environment in certain
cases. For example, graffiti on walls of monuments, rocks or tree trunks;
littering at picnic spots, throwing polythene bags and bottles in water
bodies; collecting coral and shells from beaches; throwing lit cigarette
stubs in sanctuaries and parks; damaging flora and fauna, trampling on
rare plants, scaring away wildlife, poaching, etc. Exceeding the carrying
capacity especially at religious places has led to the loss of innocent lives
in stampedes during the Hajj pilgrimage and Mandharadevi stampede
424 Tourism Operations and Management

Table 14.3 Factors affecting carrying capacity

1. Tourist
Volume of tourists, type of tourist, Mass tourism has a greater impact, while
duration of stay, educational level, independent tourists, SIT have lesser
age, purpose of visit impacts. Tourists who are aware of the
environmental issues may tend to protect
and prevent destruction and damage.
2. Destination
Geographical concentration of Attractions closely located in dense
visitors, seasonality, types and clusters will have a greater impact,
forms of tourism, physical especially during tourist season. A fragile
environment environment like an island rain forest can
be easily destroyed if carrying capacity is
exceeded as compared to a built attraction.
3. Local factors
Economy-developed/ A developing country is more susceptible
underdeveloped, government, to the negative impacts of tourism as
tourism policy, availability of compared to a well developed country with
local resources, technological ample local resources, technological
development advancement in all areas and minimum
leakages due to imports. The greater the
local resources and government support,
the greater the economic benefits to the
locals with minimum negative social
impacts. The wider the economic and
cultural gap, the bigger the impact.
4. Other factors
Guest-host relationship, degree The more the interaction, the greater the
of interaction demonstration effect.

at Wai in Maharashtra. In all these cases, the tourists’ behaviour is the

main cause of these tragedies.

Visitor and Traffic Management

We have read in carrying capacity that the number of visitors and their
behaviour are the two main factors which need to be controlled to
minimize negative environmental impacts of tourism. Visitor
management techniques are widely used at popular tourism spots.
According to Page and Dowling (2002) there are two types of visitor
management techniques. They are
1. Hard measures and
2. Soft measures
 Impacts of Tourism 425

Hard measures

They aim to restrict entry and usage by regulating the number of tourists.
This is achieved by adjusting the opening time, charging higher entry
fees during peak hours, using walkalators to regulate time spent at popular
spots, warning signage such as not to litter or feed the animals, etc.

Soft measures
They aim at influencing visitor’s behaviour and attitude and are designed
to inform or educate the visitor. Boards displaying codes of conduct to
be followed, measures to prevent degradation of fragile flora and fauna,
etc. help conserve the environment and add to the knowledge of tourists.
Private vehicles add to environmental pollution and traffic jams leading
to loss of precious time, missing transport connections or reaching
attraction at closure time. The traffic at the destination can be controlled
by discouraging the use of private vehicles by charging heavy taxes and
toll. Singapore is an excellent example of traffic control. Tourists have
easy access to quality public transportation both by road or rail at an
affordable price with good frequency and electronic information display
boards. Roads have speed control and are in good condition with proper
signage. Traffic management at the site includes designated drop-off points
and parking for tourist’s coaches, park and ride services, moving
walkways, etc.

Limits of Acceptable Change

Managers at tourism sites are now following the limits of acceptable
change (LAC) approach to resource management which was developed
in the 1970s by the US Forest Service. In this approach, all stakeholders,
namely the host population, the tourists, the principal suppliers, the local
government, and the NGOs are equally involved in the decision making
process. Every agency and individual concerned decides on and accepts
an approach to manage a particular site and the solutions to be introduced
to manage visitor pressure.
The LAC processes plans, selects indicators, establishes standards for
each indicator, sets the limits of acceptable change and agree on the
action to be taken once the indicators are reached. The team monitors
and reviews the LAC indicators for example the duration of queuing
time outside an attraction. If there are long queues and crowding for a
particular attraction, the possible solutions to this problem could be
426 Tourism Operations and Management

¢ increasing the timing of the attraction by an hour each in the morning

and evening;
¢ reducing the length of tour so that more batches could be covered;
° using walkalators so that there is no crowding at specific spots and
time of tour can be controlled; and
¢ opening additional sites or routes.
Some indicators need to be monitored several times during the day.
The carrying capacity and LAC approach are useful tools for managing
tourism at a destination and can help in preventing accidents, enhance
visitor experience and have beneficial impacts on the host, their economy,
culture, and environment.
Estimation of carrying capacity is one of the most challenging tasks
faced by tourism managers today. There are many diverse opinions on
as to which method is best for establishing and measuring the carrying
capacity of an attraction or a destination and how many tourists are too
many.
While modern tourism continues to grow beyond its carrying capacity
in many destinations, many sites have proposed upgradation of existing
facilities without deteriorating the tourist’s experiences. Some of the
technological advancements are water recycling plants in areas of water
scarcity; cable cars, helicopters in hilly areas; waste management plants,
desalination plants in coastal areas etc.

Environmental Impact Assessment

New tourism development and land use projects now require an environ-
mental impact assessment (EIA) before they begin any development work.
EIAs evaluate the overall effect the development will have on the
environment and identity measures to reduce the negative impacts. EIA
is carried out by consultants and is a legal requirement in some countries.
EIAs take into consideration the following:
e total cost of development;
¢ all beneficiaries and all possible benefits which may arise;
¢ those who are likely to be adversely affected by the project;
¢ other developmental options which have lesser negative impacts;
¢ steps which are being taken to reduce negative impacts.

Sustainable Tourism Development

A sustainable tourism destination is the product of careful planning,
management, and monitoring of tourism development.
 Impacts of Tourism 427

Mass tourism has expanded rapidly since the post world war era. Many
countries have reaped the benefits of tourism without paying much
attention to the negative impacts. Along with economic development,
tourism has also been responsible for a wide range of detrimental impacts
on the natural and physical environment like devastation of flora and
fauna, disruption of natural habitat, traffic congestion; air, water, and
land pollution, destruction of natural landscapes and obstructing scenic
views by unplanned and haphazard constructions, etc. While tourism
can help in sustaining arts and crafts and tradition and festivals, it may
also be responsible for cultural change and disrupting the morals, values
and beliefs of the host population because of the demonstration effect.
The concept of sustainability has become a fundamental issue in
tourism development and growth. During the 1960s people became
increasingly aware of environmental problems like destruction of rare
habitats, pollution, acid rain, etc. and related it to the unplanned growth
of industries. From the birth of the environmental era in the mid-1960s,
arose the concept of sustainability. People began to realize that the earth’s
natural resources were limited and if not conserved, would ultimately
get exhausted. After the debate at the Earth Summit in 1992 at Rio de
Janeiro and the World Summit on Sustainable Development at
Johannesburg, world leaders, politicians and the society, seriously took
up the issue of sustainable development to ensure that present and future
generations should be able to benefit from tourism resources.
Sustainable tourism means achieving a particular combination of
numbers and types of visitors, the cumulative effect of whose activities at
a given destination, together with the actions of the servicing businesses,
can continue into the foreseeable future without damaging the quality of
the environment on which the activities are based (Middleton 1998).
The sustainable development approach ensures that future generations
everywhere will have adequate resources to sustain themselves and
maintain a reasonable quality of life. Achieving sustainability is now the
underlying principle for tourism development. Destination planners and
managers are now faced with a new challenge. They need to meet the
increasing demands of experienced and seasoned tourists while balancing
the fragile and diminishing resources at the destinations, preserving
indigenous cultures and traditions, and accepting social responsibility
for the negative impacts on the host community.
Governments and societies have realized the need to plan and manage
economic growth objectives within the limits of the environment and to
keep the growth of the tourism sector under check.
428 Tourism Operations and Management

Tourists and tourism planners and suppliers have realized that the
environment is the most fundamental ingredient of the tourism product.
Any tourism activity changes or modifies the environment, i.e. it creates
an impact. Proper planning and management can help minimize negative
impacts and help create positive impacts. Sustainable development is
intended to reduce the tension and friction created by the interaction
between the various sectors of the tourism industry, the tourists, the host
population, and the environment, i.e. all the stakeholders of the tourism
industry. See Fig. 14.2 for some of the advantages of sustainable
development.
Sustainable tourism development includes the following:
¢ conserving and enhancing resources for tourism which can be used
by both residents and tourists in the present and future;

Creates
environmental
awareness
amongst visitors

Enriches the Conserves

visitors experience natural resources

Improves quality Benefits of

of life of host ——_—___— Sustainable Protects
community Development the environment

Preserves local Brings repeat

culture and tradition visitors/ tourists

Balances the
needs of the industry,
environment,
guests, and hosis

Fig. 14.2 Some of the benefits of sustainable development

 Impacts of Tourism 429

* development projects which are compatible with the society and

culture of the tourism destination;
e marked improvement in the standard of living of the host population;
* meeting the expectations of tourists and attracting repeat visitors;
¢ respect for the host community and measures to protect the
environment;
* meeting the needs of visitor facilities and maintaining them well;
* maintaining tourism resources by applying conservation techniques
and promoting campaigns to create funds for maintaining wildlife;
and
¢ developing suitable visitor facilities and services at the site for the
convenience of tourists and cleanliness of destination.
All tourism-related activities should be well planned, located, designed,
and managed in an environmentally friendly and culturally sensitive
manner so that the environment is not congested, polluted, or degraded
and there are no social tensions.
Local communities are involved in tourism planning in the area from
the inception of the project and they participate and benefit from tourism.
Sustainable tourism development embraces a community involvement
and participation.

Responsible Tourism
The concept of ‘responsible tourism’, is based on the concept of
sustainable tourism development and was the theme for the FHRAI
annual convention for this year. It is a positive approach by all the partners
in the industry to plan, manage, market, and compete with other partners
in a responsible way.
Responsible tourism means
¢ the tourism industry is responsible to the environment and promotion
of environment friendly practices;
¢ the government is responsible to develop linkages with the local
community,
¢ the responsibility of local communities is towards tourists safety and
comforts; etc.
¢ the responsibility of both employers and employees in tourism, to
each other, and to the customers;
¢ responsibility to respect, invest, and develop local cultures and prevent
their exploitation; and
¢ responsible tourists who observe local norms and practices.
430 Tourism Operations and Management

TOURISM LEGISLATION
little
Although tourism is said to be the world’s largest industry, very
attention has been paid to framing national and international laws.
Tourism consists of industries and activities that stretch across both
public and private sectors. Tourism businesses are affected by the actions
of different levels of government and operate in a diverse legal
environment, with a variety of laws and regulations. Some of the various
legislations which directly or indirectly affect tourism are
¢ laws pertaining to trans-border movements such as visa regulations,
customs, foreign exchange, immigration rules, etc.;
* laws related to transportation such as airline regulation, fares and
tariffs, laws related to road transport—permits, licences, etc.;
«laws related to food and beverage production storage and service
like PFA Act 1954, municipal health laws, licences, liquor permits,
grading of restaurants, etc.,
¢ laws related to accommodation like classification of hotels as five
star deluxe to one star;
* consumer protection laws related to health, hygiene, quality, etc.
consumer protection act;
e labour laws related to employers working conditions, minimum wage
act, ELC.;
e laws related to conservation of monuments, historical sites, and
environmental protection such as the Wildlife Protection Act, Forest
Conservation Act, and the Ancient Monuments Act; and
¢ laws regarding the functioning of tourism organizations at various
levels.
The legal environment of tourism activities becomes even more
complicated once international borders are crossed. Tourists have no
right in international law to enter the territory of a state of which they are
not nationals. This means that each state is entitled to decide which tourist
may enter its territory and under which conditions.
When international tourists have made arrangements with say Indian
tourism businesses before they enter the country, in the likelihood of
any problem, which country’s legal system governs these contractual
relationships is the question which may arise. While the Indian tourism
business will want Indian law to apply, the foreigner would like to follow
the legal system in his own country. The tour package may have been
purchased at a trade fair in one country, for a tour to another country by
a tourist from a third country.
 Impacts of Tourism 431

This issue could be addressed by inserting a clause in the contract

stating which courts will have jurisdiction in the case of a dispute. Legal
issues in tourism are often complex and need expert legal advice, hence
framing of tourism laws is necessary.
Travel is a legal right of all individuals. Tourism laws are needed in
order to regulate, permit, promote, enforce, empower, or ban both
commercial and leisure activities of both the service provider as well as
the tourist. Figure 14.3 which shows us why these laws are necessary.
Tourists should have a redressal mechanism or get rightful compensation
for transgression of rights and regulations. The Government of Jammu
and Kashmir has enacted a special legislation—Jammu and Kashmir
Registration of Tourist Trade Act to protect the interests of tourists. Under
this legislation, various officers of the State Tourism Department have
been vested with magisterial powers, including the powers of
compounding, in cases of harassment, cheating, over charging or pestering
tourists.
To revive tourism which was the main source of income of more than
thirty per cent of its population, the state government has taken many

Harmonious
relationship
between tourist
and
supplier

Create awareness | High standards

and and
know penalties quality of service
imposed ae

Tourism Laws

i .,
Professionalism
and Minimize
high ethical disputes
standards

Fig. 14.3 Tourism laws are needed for these reasons

432 Tourism Operations and Management

steps like formulating a special package for 1. viving and developing

tourism in the state.
The Ministry of Tourism is the nodal agency for formulation of national
policies and programmes and for coordinating various activities of tourism
in India. Apart from various planning, monitoring, and coordinating
activities the ministry is responsible for formulating tourism legislation.
Two of the functions of the attached office, i.e. Directorate General of
Tourism are
1. Regulation, that is
(a) Approval and classification of hotels and restaurants
(b) Approval of travel agents, tour operators, and tourist transport
operators, etc.
2. Inspection and quality control
(a) Guide service
(b) Complaints and redressal
The National Policy of Tourism 2906 has covered the issue pertaining
to Tourism legislations in India.
Tourism development, as we have read, always leaves its impact on
the destination and its host population. The impact may be positive or
negative. Tourism planners should be aware of these impacts and plan
tourism activities in such a manner that the negative impacts are
minimized. Tourism, if well planned and managed, can yield steady profits
for a long duration provided the environment will help sustain tourism
for the host population as well as the guests or tourists. It will have least
negative impacts on both the hosts as well as the environment and will
preserve the destination for the future generations. The responsibility of
conserving the destination lies with the tourism planners who should
ensure that the fragile environment and attractive landscapes which are
the very basis for tourism are not destroyed.

SUMMARY
The significance of the tourism industry and its role in economic development
is well known. The environment is a powerful resource for tourism as it plays a
major role in attracting tourists to the destination. Tourism results in interactions
with the residents or host, the suppliers of tourism products and services and
the NGOs, causing an impact on society and culture. Negative impacts can be
removed gradually by involving the residents in the development process. The
tourism activity to be developed should be acceptable to the residents and at
 Impacts of Tourism 433

the same time should be a source of income to them. The positive and negative
impacts on the environment should be kept in mind while undertaking any
developmental activity. All stakeholders should know that the environment is
an exhaustible resource which needs to be preserved for the future generations.
The extent of damage by unplanned and unregulated tourism can be so severe
that it can destroy the very basis of tourism. The carrying capacity should be
kept in mind to give the visitors a satisfying destination experience and the
extent of development should be such that tourism is sustained for the future
generations to enjoy.
Since tourism is growing at a rapid rate, the framing of tourism legislations
to protect the interests of both the tourists as well as the service providers
needs to be done. This is a difficult task considering the different nature of the
sub-sectors which comprise this industry. However, the state governments are
forming tourism laws which will help in smooth functioning of tourism related
activities.

KEY TERMS
Atmosphere Is the body of air that surrounds our planet and is most dense
close to the earth’s surface. It is composed mainly of nitrogen (78%), oxygen
(21%), carbon dioxide (0.03%), and other gases (less than 1%).
Biosphere Is the life bearing layer and is composed of all living organisms like
plants, animals, microbes, etc. which exist from up to three metres below
the ground to thirty metres above it and in the top 200 metres of the oceans
and seas.
Demonstration effect Tendency for local residents to be influenced by behaviour
of tourists and to imitate their mode of dress, food habits, etc. and assimilate
it as their own.
Environment Means the total of the things or circumstances which surround us
and may refer to the natural or built environment or some other set of
conditions or influences like economic, sociocultural or political environment.
Environmental Impact Assessment (EIA) A set of procedures to assess in
advance, the likely effects of a tourism development project on the
environment. It is a legal requirement in many countries such as the USA
and countries of the European Union.
Gross domestic product (GDP) Is the total market value of all final goods and
services produced in a country in a year.
Hydrosphere Is composed of all the water forms on or near the earth like
oceans, rivers, lakes and even the moisture in the air, ice and snow.
434 Tourism Operations and Management
the place the
Interpretation Is the process of explaining the significance of
tourists have come to visit.
is spent on
Leakages Withdrawal of demand from an economy when money
money spent
buying goods and services from another economy, for example,
on imports or when money is put into Savings.
surface of
Lithosphere Is the solid rocky inorganic crust covering the entire
the earth from the tallest mountain to the deepest trench.
tourism
Sustainable tourism Term used to describe all forms of long term
which are in harmony with their physical, social, and cultural environ ment
and meet the present needs as we'l as the future generation needs.

CONCEPT REVIEW QUESTIONS

1. Explain the term ‘Multiplier Effect’ in tourism.
2. What do you understand by the term ‘leakages’? How can you minimize
leakages in the tourism industry?
3. What type of impact does tourism have on the coastal region?
4. What measures would you suggest to minimize the adverse impact of
tourism on hill stations?
5. Discuss the economic impact of tourism on a developing country.
6. What are the positive impacts of tourism on the environment?
7. Explain the following
(a) Need for sustainable development
(b) Physical carrying capacity
(c) Guest-host interrelationships

CRITICAL THINKING QUESTIONS

1. Do you feel that there is a need for having tourism laws? What would be
your recommendations for healthy functioning of the tourism system?
2. Discuss the sociocultural impact of tourism which is likely to be observed
on tourism activities in rural India.

PROJECT/ASSIGNMENT
Visit any monument or garden and observe the impact of tourism on the same.
What measures would you suggest to minimize the impacts?
 Impacts of Tourism 435

REFERENCES
Bhatia, A.K. 2001, International Tourism Management, Sterling Publishers Private
Limited, New Dethi.
George, R. 2007, Managing toursm in South Afnca, Oxford University Press
Southern Africa, Cape Town.
IGNOU 2001, Tourism Impacts, MTMIO, New Delhi.
Keyser, H. 2002, Tourism Development, Oxford University Press Southern Africa,
Cape Town.
Middleton, V. 1998, Sustainable Tourism: A Marketing Perspective, Butterworth-
Heinemann, Oxford.
Page, S.J. and R. Dowling 2002, Ecotourism, Prentice Hall. Harlow.
Pednekar, H., S. Pendse and P. Dongre 2006, Environment Education, Sheth
Publishers Pvt Ltd, Mumbai.
Wall, G. and A. Mathieson 2006, Tourism: Change, Impacts and Opportunities.
Pearson Prentice Hall, Harlow.
www.ibef.org, accessed on 1 September 2008.
 Attraction Planning and
Development

Learning Objectives
After reading this chapter you should be able to:
understand the need for planned tourism development
understand why travel motivators should be kept in mind while planning for tourism
examine the basic principles underlying attraction development
know the role of the public and private sectors in tourism planning and development
review factors which must be considered while selecting a location
appreciate the need for conducting a feasibility analysis and cost-benefit analysis

INTRODUCTION
‘ ourism is one of the fastest growing service sectors and the need |
for planned development is of utmost importance. All tourist
attractions require a planned development approach if they are
to remain as attractions in the years to come. Many natural attractions
which have developed spontaneously need planned rejuvenation so that
they continue to attract tourists and repeat visitors. Unplanned and
unregulated tourism has an adverse impact on society, culture, ecology
,
and the economy in the long run.
 Attraction Planning and Development 437

Tourism planning is very necessary because tourism is a diffused and

complex activity, made up of a variety of elements such as attractions,
infrastructure, etc. These elements are developed by developers and then
consumed by tourists who exhibit a diversity of demands. However, there
is always a gap between demand and supply. This gap is bridged by
using multiple resources which are specific to tourism.
Tourism development influences not only tourists and developers but
also other sectors of society. It is directly related to economy in general
and may have an impact on the environment at large.
If different tourism sectors do not develop harmoniously, costs may
increase and problems may arise. If different developers have
contradictory objectives or when they do not see eye to eye, growth
would be uncontrolled in some sectors. Thus, what is important is
‘integrated tourism planning’, i.e. proper planning of all aspects such as
physical, legal, promotional, financial, economic, marketing management,
social, and environmental aspects. Good planning will ensure desired
results and systematic working to achieve success.
Today’s tourism developer knows that just having the five ‘A’s of
destination development, i.e. accessibility, accommodation, attractions
and activities, amenities, and affordability does not lead to automatic
progress but to mass tourism which has destroyed many destinations
- completely. Mass tourism can result in permanent damage or irreversible
changes in the environment. It not only changes the appearance of the
environment but also damages ecosystems and habitats permanently.
According to the United Nations Environment Programme (UNEP),
nearly 75 per cent of the sand dunes on the Mediterranean coast
between Gibraltar and Sicily have disappeared either due to resorts built
on them or through erosion caused by clearing land for development.
Tourists used to flock to Mahabaleshwar, a once popular hill station in
Maharashtra, India, to enjoy the natural beauty and spend time peacefully
in the midst of nature. Today, the tourists visiting Mahabaleshwar face
traffic jams, garbage trails, water scarcity, harassment by touts, and high
charges from hawkers. Food and entertainment stalls are spilling onto
the already congested roads, and taxes are collected at every point. The
natural beauty is lost by the congestion of people, vehicles, poor waste
management, and haphazard development. It is no wonder that tourists
avoid Mahabaleshwar and ask travel agents to recommend other weekend
getaways.
438 Tourism Operations and Management
ation of the
The maximum benefits from tourism and optimal utiliz
r planning and
tourism resources can occur only if it is backed by prope
management.

NEED FOR PLANNED DEVELOPMENT

ry is no
Planning is the backbone for any industry and the tourism indust
exception.
Planning is necessary because of the following reasons:
m.
« A tourism plan works as a guideline for new entrants in touris
ing
«Since tourism is a multisectoral and fragmented activity involv
other sectors, a plan helps in integrated tourism development.
¢ It helps in matching tourism markets and tourism products correctly
without compromising on environmental and sociocultural objectives.
e Since tourism can bring various direct and indirect economic benefits,
planning helps in maximizing economic benefits.
¢ Tourism planning helps to achieve cultural conservation objectives,
i.e. by optimizing the benefits and preventing the problems.
¢ Careful planning helps in determining the optimum type and level
of tourism that will not degrade the environment but help in achieving
environmental conservation objectives.
¢ The right type of planning can ensure that the natural and cultural
resources for tourism are indefinitely maintained and not destroyed
in the process of development, i.e. lead to sustainable tourism
development.
¢ Planning can help to upgrade and revitalize existing outdated areas
and plan for modern and latest tourism development, i.e. new tourism
areas with flexibility for future growth.
¢ Planning helps in providing adequate human resource with the
requisite skills and capabilities by organizing education and training
programmes for the existing labour force.
e Planning provides a rational basis for public and private sector in
investment planning, by preparing a detailed year-wise action plan
depicting the stages in the development of the project and time frame
for completing interconnected events and activities.
Planned tourism development needs formulation of special
organizational structures, marketing strategies, and promotional
programmes, laws and regulations which should be in tune with the
‘National Tourism Policy’.
 Attraction Planning and Development 439

PLANNING PROCESS
Attractions play the most important role of drawing people to a
destination. Most people tend to think of a destination in terms of the
most well known or primary attractions and they travel to see and
experience those attractions. When most foreigners think of India, an
image of the Taj Mahal (Fig. 15.1) comes to their mind. Similarly, any
thoughts about Paris, France bring the image of the Eiffel Tower (Fig.
15.2) to our minds. The attractions at a destination entice, lure, or attract
tourists to the destination and they are the most powerful elements of the
supply side of tourism. Attractions are used by marketers to create a
destination image. The various attractions are owned by the government,
non-profit organizations, or the private sector. Because they contribute
significantly towards revenue generation and the visitors’ experience,
they need to be planned and managed well. Planning is an orderly process
which is concerned with anticipating and regulating change and preparing
a set of decisions for achieving goals set by the organization for an
organized future.
Tourism planning is a complex process which considers the various
aspects as well as the segments of the tourism industry. Tourism is an
economic activity with everyone from the government to the private

eens

Fig. 15.1 The Taj Mahal, Agra, India

440 Tourism Operations and Management

Fig. 15.2 Eiffel Tower, Paris, France

sector, locals or hosts, and the tourists having a stake in it. To reap such
harvests it is essential that tourism is planned in a logical sequence.

Basic Steps
Basic steps in planning for tourism include the following:

Defining the system It is necessary to define the scale, size, character,

and purpose of the plan.
Formulating objectives to give direction Objectives must be
comprehensive and specific with a time frame for completion.
Data gathering Basic data needs to be collected through research or
fact finding. Data can be gathered, quantified, and qualified by
¢ preparing a fact sheet;
¢ conducting a market survey;
e undertaking site and infrastructure surveys; and
* analysing existing facilities and competition.
 Attraction Planning and Development 441

Analysing and interpreting The many pieces of information must be

interpreted so that facts gathered will have meaning. Once this is done, a
set of conclusions and recommendations is drawn out that leads to the
making or conceptualization of a preliminary plan.
Preliminary planning Based on the earlier steps, alternatives are
considered and solutions are drawn and tested. Scale models for land
use, sketches to depict the development image, financial plans, site
surveys, and layout plans to show investment need phase wise, etc. are
prepared.
Approving the plan Plans, drawings, scale models, estimates of cost,
estimates of profits, chances of success, or failure can be seen.
Making the final plan All aspects covered need to be defined, for
example, in case of a destination—a definition of land use, plans for
infrastructure facilities such as roads, airports, bike paths, horse trails,
sewage, water, etc.
Implementing This means putting the tourism plan into operation. It
also follows up, monitors, and evaluates. Good planning provides
mechanisms that give continuing feedback on the tourism project and
the levels of consumer satisfaction reached.

Reasons for Planning

Attractions need to be planned and managed for the following reasons:
e environmental conservation
¢ preservation and restoration of monuments
¢ sustainable development
e enhanced visitor satisfaction
¢ to increase the destination life cycle
¢ for promoting the attraction
* revenue generation
It is necessary to strike a balance between optimum enjoyment and
appreciation of the attraction by the visitors without degradation of the
attraction and its environment by tourism activities.

VARIOUS LEVELS AT WHICH PLANS ARE PREPARED

Tourism plans are prepared at different levels. They are discussed as
follows:
442 Tourism Operations and Management

International Level
At the international level, planning, marketing, and cooperative activities
are undertaken by international organizations such as UNWTO, ICAO,
and IATA (refer to Chapter 6).

National Level
The national level planning takes place within a country by its
government. It focuses on overall tourism development within the country
such as defining tourism objectives, formulating a tourism policy,
identifying major tourist attractions, designing tourism development
regions, marketing, research, and legislation, etc.

Regional Level
At the regional level, planning is done for a state, a province, or a tourist
circuit like the Buddhist circuit in India, etc. Regional policies are formed
within the framework of the national tourism policy or plan and are
more specific and include transportation networks and regional access,
tourism development areas, attractions, accommodations, and other
facilities and their marketing and promotional strategies, etc.

Destination Level
Destination level or local level planning is more specific than regional
planning. A destination zone is an area which has a large and diverse
amount of attractions and services to satisfy several travel market
segments, for example, MICE tourists, leisure tourists, medical tourists,
etc. Local bodies play an important role in destination development and
their suggestions should be taken into consideration while preparing the
tourism development plan.

Site Level
This is the most popular and sought after level of tourism planning.
Individual land and property owners employ the services of professional
planners to plan and design their property. For example, farm owners
plan rural tourism and agritourism projects. The demand for new forms
and types of tourism have made this a profitable venture. Tourism
entrepreneurs have recognized the business opportunity and tax benefits
given by the government and are investing in tourism in a big way.
 Attraction Planning and Development 443

/ RINCIPLES OF ATTRACTION DEVELOPMENT

The principles of attraction development are discussed in the following
section.

Listing
The first principle of attraction development is to take an inventory of
existing and potential attractions in the area. To collect this information,
the destination needs to be surveyed and a survey format should be
prepared to know the attractions already present in the locality.
¢ archaeological sites ¢ antique and handicraft shops
¢ birthplaces or residence * cemetries
of well-known people
* caves ¢ churches
e exhibition grounds * gardens
e = hills ¢ historic buildings
* monuments * mountains
* museums ¢ prisons
¢ sound and light shows ° snow
¢ theatres ¢ theme parks
¢ temples e waterfalls, beaches, lakes
While collecting this information, it is necessary to keep the special
features of the area in mind, for example, water bodies, hills, snow covered
peaks, etc. which could form a part of the attractions in future.
Apart from the various attractions, both existing and potential, it is
also necessary to survey and evaluate the institutional elements.
These include

¢ present development policies and plans of the government for the

next five years;
* government structure and tourism organizations in the region;
¢ policies for investment in tourism development projects, availability
of capital, and other incentives to encourage private sector investments
in tourism projects;
¢ tourism legislation and regulations already in force in terms of
standards of hygiene, building construction norms, etc.; and
¢ tourism and hospitality training institutes and training facilities available.
This information is necessary while preparing the development plan.
For example, if a large number of trained manpower is required, special
444 Tourism Operations and Management

training programmes can be conducted at tourism training institutes if

they are available.
All types of existing attractions should be listed and categorized into
three categories, namely, natural attractions, cultural attractions, and
human made or built attractions (refer to chapter 4).

Evaluation
Many attractions may be present in a given area, but not all may be
worth visiting. Attractions should be evaluated in terms of their
° quality
¢ authenticity
¢ uniqueness
* activity potential
¢ popularity or number of visitors to the attraction
¢ category of attraction, i.e. primary attraction or secondary attraction

Quality
Is the attraction worth visiting? Does it provide value for money? These
are some of the questions which come to the minds of tourists when they
plan a tour.

Authenticity
It is important to note if the attraction is genuine and original or it is an
imitation. Tourists look for authenticity in alternative forms of tourism
such as agritourism, cultural tourism, etc. Built attractions or non-authentic
attractions need to constantly upgrade or improve product quality if they
want to remain in business, as they can be easily substituted.

Uniqueness
Tourists seek something different and exciting at the destination. They
are not interested in seeing something they have already experienced at
some other place. Both authentic and non-authentic destinations can have
their USP, for example, the Horseshoe Falls are unique to Niagara Falls,
Canada and are authentic, whereas the number of casinos at Las Vegas
are unique to the area but non-authentic.

Activity potential
Tourists need something to do once they reach the attraction. If they
have sufficient activities, they stay at the attraction for a longer time.
 Attraction Planning and Development 445

Activities should be compatible with the attraction and should maintain

the sociocultural and environmental integrity of the destination.

Popularity
Popularity or the number of tourists, who visit the attraction, the mode
of transportation available, and the distance visitors travel, tell us a lot
about the attraction.

Category of attraction
An attraction may be either a primary or secondary motivator for travel.
Very often, secondary attractions are most visited even if they are not the
main reason of travel. For example, for business tourists, the main
motivation for travel is business related, however, after work is over,
they visit local attractions in the area.

Development Strategy
After attractions have been listed and evaluated, the next step would be
the development of an attraction mix strategy to promote the attraction.
This strategy includes the following:

Organic bunching
This is the grouping together of like attractions or supporting attractions
to create a synergistic effect. Some attractions are insignificant by
themselves and benefit by being a part of the attraction mix. Organic
bunching results in greater tourist traffic to the cluster than the sum of
what each small attraction could attract by itself. Some attractions are
unique and can be a primary attraction by itself and do not need the
support of others. Smaller attractions located on the periphery of unique
or major attractions, benefit from the flow of traffic to major attractions
as tourists take a halt at these places en route.

Thematic appeal
The theme approach is gaining popularity for events and attractions after
the roaring success of Disney theme parks. Almost any attraction can
have a theme which may be based on fantasy, escape, any period of
history, rural lifestyle, urbanization, etc. Generally, themes help in
psychologically transforming the individual to a different place and time
including places of make-belief and fantasy.
446 Tourism Operations and Management

Themes are created to make the attraction unique as the tourist is

looking for something different or unusual from the routine.
For example, a spice products manufacturer, with the production unit
located in a rural area, developed the processing plant and surrounding
land into a tourism attraction. The attraction includes a guided tour of
the manufacturing unit/processing unit which uses environment sensitive
practices such as solar energy, vermiculture, bio-gas plants, water recycling
plants, and composting. Other attractions include an exhibition of spices,
a visit to the spice garden to see how spices are grown, lunch prepared
using the spices, a sales counter for spice products, and brochures
highlighting the medicinal properties of spices.
Except for the factory, the rest of the attraction was developed by
using indigenous products for construction and the theme was a typical
rural set-up.

FEASIBILITY ANALYSIS
Any attraction needs some amount of investment and investors are
interested in knowing whether the attraction will provide a return on
investment. And if yes, how much. Irrespective of whether the attraction
is owned by the government or belongs to the private sector, justifying
the continuance of an existing attraction or estimating potential economic
contributions of a proposed attraction in terms of costs and benefits is
necessary.
The feasibility analysis studies the potential demand for the attraction
and its economic feasibility tells us whether the attraction we plan to
develop will make money.
Development may be in terms of rejuvenating an existing attraction
or developing a potential attraction.
Certain questions need to be asked such as:
* What tourist product will be developed?
* Whom is the product being developed for?
¢ Where is the market?
* Are there any competitors in the vicinity?
¢ What is the size of the market?

LOCATION
The location of the site in the destination area
needs to be considered
and this depends on the nature of the attraction and whether
itis a primary
 Attraction Planning and Development 447

or a secondary attraction. A stand-alone primary attraction like a self-

contained resort would consider the existing transportation network and
infrastructural facilities available. A secondary attraction needs to select
a location near other supporting attractions.
A primary attraction is the main attraction at a destination. An example
of a self-contained primary attraction is Sentosa Island Resort at Singapore
and Disney World at Orlando, Florida. They are the main reasons for
selecting the destination. Examples of secondary attractions in Singapore
are the Singapore River Cruise, the Singapore Zoo, shopping at Little
India and China Town, etc. They are not the main travel motivators, but
depend on the primary attractions for their survival.
Many other factors need to be considered such as a study of the
¢ supply/demand analysis
¢ transportation modes serving the area and cost of available transport
¢ land ownership and price
e trained human resource
¢ government policies in force
e tax concessions to private investors
¢ existing infrastructure
¢ safety and security
¢ services available in the vicinity
e source of finance
* competitors

IDENTIFYING THE MARKET

The market area for an attraction needs to be identified and because of
the intangible nature of the tourism product, this is not an easy task. As
the attraction becomes more complex, the market area increases and
may be as large as the world or as small as a city. The market depends on
the attractions and activities available at the site (refer to Chapter 12).
The site should be selected keeping the target market in mind.

COST-BENEFIT ANALYSIS
Cost-benefit analysis is a ratio measure of the relative benefits accruing
to the attraction developer versus the costs incurred in development and
operations.
In any new venture, it is practically impossible to accurately predict
the volume of sales because of a large number of variables. However, it
448 Tourism Operations and Management

is essential to estimate the expected revenues. The location decision can

be finalized only after revenues are estimated.
When the government or the public sector organizations plan to
develop attractions, their main motive is social welfare and not profit
making. The benefits are hard to quantify in this case. Most public sector
undertakings do not make a profit and in such cases the focus should be
on cost-effectiveness rather than revenue maximization.
Although the tourism industry is dominated by the private sector, it is
developed and managed to a large extent by the government. In India, a
large number of visitor attractions such as monuments, national parks,
skiing slopes, trekking trails, etc. are on publicly owned and managed
lands. Most of the infrastructure such as electricity, water supply, police
force, fire brigade, etc. is owned and managed by the government.
Formulating tourism policies and legislations and promoting and
marketing India as a destination is also done by the government.
The private sector is involved in investing in tourist facilities and
services where the profit margin is high. The accommodation sector,
transport sector, tour operators and travel agents, commercial food and
beverage establishments, entertainment, and activities are mainly the
responsibility of the private sector. In the private sector, operations are
profit motivated and benefits are defined as revenue accruing to the
owners of the operations. In this case, revenues may be substituted for
benefits and a revenue/cost analysis should be calculated.
Revenues are defined as the sum of all sales accruing to the attraction
operation.
In any tourist attraction, revenues may flow from many different
sources such as accommodation which is the largest single revenue
generator, food and beverage, entrance fees, sale of souvenirs, etc. All
sources of revenue need to be estimated on an annual basis for the
expected life of the operation. This is not an easy task and involves
forecasting of sales. Each revenue generating operation needs to be
considered to arrive at the annual total revenue estimates.

Cost Estimation
Costs incurred in operations are basically of two types, fixed and variable.
Fixed costs are costs which are incurred regardless of whether tourists
visit the attraction or not. For example, land taxes, interest on loans,
salaries, etc. are fixed costs. They do not change with the level of use.
Variable costs are costs incurred on food and beverage, laundry service,
 Attraction Planning and Development 449

etc. and depend on the volume of guests. These are estimated on the
basis of expected visitors. Projected revenues and costs should be
estimated on an annual basis because of the seasonality factor so that
both lean season and peak season use is covered. The life expectancy of
the attraction is another consideration which is far more complex as it is
difficult to predict whether the attraction will remain popular in the future
years. While analysing revenues/costs, the life expectancy is assumed to
be 10 years. The figures for revenues and costs in future are then
discounted to achieve present value rates as the value of the rupee at
present will be worth much more than it will be in the future.
Based on these findings, a detailed implementation plan is prepared
which specifies the sequence of activities, time schedules, and
responsibilities. The plan is carefully studied and redrafted after receiving
recommendations, feed back and approval from various experts. It needs
the approval by the final authority, i.e. the government or for the private
sector by the board of directors before it is actually implemented.
Implementation means putting the final plan into operation. It also
includes regular monitoring and evaluation to ensure that development
is progressing according to the plan.

MANAGING A HISTORIC SITE

Historical monuments have always been major tourist attractions. These
are heritage sites which need to be preserved and maintained. These
monuments are outstanding examples of traditional architecture and were
specially designed for civil and religious use or as residences for the rulers
of that era. These structures were well planned and constructed with
permanent materials and have survived through centuries to tell their
tale. Historical sites include monuments such as ancient palaces, forts,
historical houses, memorials mausoleums, prisons, statues, battle fields,
etc. If they are not preserved they will crumble into a heap of rubble.
The planning process should take the following into account:
¢ conservation
e restoration
e interpretation
¢ visitor facilities (toilets, shops, parking, refreshment, etc.)
* promotion and
* revenue generation
450 Tourism Operations and Management

Monuments can be used to develop heritage tourism, for example,

palaces, forts, and havelis are being converted into heritage hotels.
Monuments help us understand the living environment and lifestyle of
ordinary people of the past and present and interpret these in an
interesting manner to tourists.
Part of the monument complex can be converted into a museum
depicting settlements and lifestyles in the form of pictures, models, actual
articles, etc. With the help of a survey and analysis of the archaeological
and historical features, the conservation needs will be determined.
Steps to be followed for managing a large monument complex are
Its Objectives for development and conservation should be deter-
mined. These would be based on the regional and national policy.
The main objectives of managing a historic site are
(a) To provide enhanced visitor satisfaction, at the same time to
promote and preserve the historic monument for the future
generations and bring the monument back to life through
simulated shows and interpretation.
(b) To ensure that the visitor takes back both tangible memories
in the form of souvenirs, picture postcards, brochures, CDs,
books, etc. as well as intangible memories of the visit.
. Special surveys and analysis of archaeological features and
historical features need to be studied. Archaeological Survey of
India (ASI) monitors the preservation and maintenance of
monuments to prevent deterioration and decay from setting in.
It has a challenging task of restoring the monuments and
maintaining the original images for which special materials need
to be used.
. Visitor carrying capacity should be restricted to a certain num-
ber as there is danger of site deterioration through excessive
congestion.
Direct access to very fragile features should be prohibited and
these areas should be cordoned off. Visitors should have a good
view of the exhibits which may be placed at a height or in glass
showcases.
. The site should be explained to visitors through the following:
(a) Proper display of directional signs and notices in English and
in regional language.
(b) Historical description of the site through plaques on the wall
at the exhibit.
 Attraction Planning and Development 451

(c) Brochures, audio-video material related to the site, and

souvenirs.
The guides appointed should have a pleasing personality, be well
groomed with effective communication skills and sound
knowledge of history and architecture. Additional knowledge of
a foreign language is desirable. Interpreters could be called for
foreign groups.
Tourist sensitization measures need to be taken to maintain the
sanctity of the place. Proper rules and behavioural expectations
from tourists should be put up in clear print at the entrance.
The presentation should be effective and interesting. Life
animators or technical means such as dioramas with mannequins,
historical artifacts, etc. should be used to recreate major historical
events.
The originality should be retained and the events, exhibits, and
shows should be kept as authentic as possible. To recreate the
culture, organize performances of dance and music using the
monument as the backdrop. A light and sound show could be
organized in the evening (two shows per day, one in English and
one in Hindi). These shows will help narrate and illuminate the
site’s features and relate important events that took place in the
past.
10. Visitors facilities and services in the form of restrooms, restaurants
and refreshment stalls, drinking water fountains, umbrellas to
protect from the rain and sunshine during the day as the site is
large, prams for infants and pushchairs for toddlers, caps, and
walking sticks and wheelchairs for the old and infirm should be
made available for a nominal refundable deposit at the gate.
AL Landscaped gardens should be created around the monument.
1s. The approach road should be well developed with signage and
street lights.
13. Souvenir shops should be available to suit all ages and purses.
These would be located near the exit of the monuments.
14. Visitor use plan indicating logical access and exit points along
with visitor flow should be put up at the site.
1, Continuous monitoring should be done to check visitor satisfaction
levels. Feedback forms should be discussed weekly.
16. Sociocultural and environmental impacts because of visitor use
should be assessed.
452 Tourism Operations and Management

17. For site maintenance and preservation, government agencies like

the Archaeological Survey of India should be contacted.
18. Any expansion plan should be in tune with architecture of
monuments.
19. There should be continuous management of resources.
20. An entry ticket would be charged which should be nominal for
locals and five times the amount for foreigners.
21. Resources would be generated through entry fee, sale of souvenirs,
and refreshments which would go towards maintenance of the
monument, over head expenses, and cleanliness of visitor facilities.
22. Original, authentic arts and crafts should be priced at higher rates
to generate revenue which could be used for promotional
campaigns.
If historic moments are to be preserved for our future generations,
prompt action is necessary. Overcrowding and overuse of monuments
deteriorates the attraction and needs controlling as visitors tend to spoil
the monuments and surrounding trees with graffiti leading to loss of
precious heritage.

THEME PARKS AS ATTRACTIONS

A theme park is a special type of tourism attraction which is not necessarily
related to the natural or cultural resources of a destination. Theme parks
are oriented to particular themes such as fantasy, futurism, history,
adventure, flora, fauna, unusual geographic places, or a combination of
these. They are generally profit making business and have goals that are
purely profit driven and provide an income to the owners or shareholders.
They not only attract tourists, but also a large number of day visitors
including local people.
Theme parks (Fig. 15.3) offer simulated experiences, live shows,
thrilling rides, shopping facilities, and a variety of food and beverage
outlets for the visitors to choose from. They are a relatively modern
concept of developing tourist attractions and are the most popular leisure
attractions for families today. All facilities revolve around the central
theme of the park.
For example, Walt Disney World’s Magic Kingdom in Florida, USA
has Mickey Mouse and other Walt Disney characters in costume moving
around in all facilities and activities around the massive park. Also
available are Mickey Mouse shaped ice creams and snacks, Mickey Mouse
 Attraction Planning and Development 453

Fig. 15.3. A theme park

fluoroscent stamp for re-entry, Mickey on ali souvenirs and articles, etc.
all in keeping with the theme.
The Jurong Bird Park and the Night Safari in Singapore are two popular
leisure attractions based on birds and wild animals respectively. At the
Jurong Bird Park more than 600 species of birds are conserved and
displayed in their natural setting. The park offers several theme areas
related to the central theme like various bird shows, world’s tallest man-
made waterfall, a walk-in aviary, an air-conditioned monorail to take
visitors around the park, a simulated mid-day thunderstorm followed by
a cool light drizzle, the ambience of a rainforest vale of tropical Northern
Australia, walk-in exhibits, gift shops, restaurants, information centres,
etc. Visitors have the option of becoming members of wildlife unlimited.
They are encouraged to take photographs with the birds, the net proceeds
of which go to the Birds Research and Conservation Programme (see
Fig. 15.4).
Some theme parks are not-for-profit organizations, their main aim
being unique visitor experiences which provide entertainment as well as
education. A part of the proceeds from such parks go towards conservation
of nature.
Hence, a theme park is an extensive, usually commercial, leisure park
that may extend over many many hectares of land. It normally includes
several theme areas of indoor and outdoor presentations or displays,
454 Tourism Operations and Management

Fig. 15.4 A tourist takes home memories of colourful feathered friends

activities and amusements with animation. Added to these attractions

are well-developed catering, retail, and other visitor services.
Themes may be historical, geographical, environmental, social,
technological, or futuristic and of many other types. They are decided
upon to stimulate, educate, and entertain the visitors. Infrastructure costs
are high and often accommodation and other tourist facilities are also
provided in such parks.
The national or regional tourism plan identifies whether a theme park
is appropriate for an area and if so what type and size is suitable. If no
plan exists, a special feasibility study for a proposed park has to be
conducted. This study examines the market potential; determines type,
size, and location of park; analyses its costs, revenues, and financial
feasibility. The site for the special attraction itself should be large and
often adjacent undeveloped land is an asset to develop related tourist
facilities such as accommodation, employee housing, etc.
The infrastructure in terms of road, rail, air, water supely, electric
power, sewage and solid waste disposal, telecommunications, safety,
security, etc. needs to be studied while planning a theme park. High
standards of physical maintenance of the facilities are essential features
to be incorporated in the plan.
The location of the theme park is an important criteria which needs
careful consideration. Theme park planning cannot be done in isolation
 Attraction Planning and Development 455

but needs to be coordinated with planning of the region. The land in the
vicinity of the park can be developed in an integrated manner. Large
theme parks can generate considerable development and employment
in their regions. Unplanned projects can result in serious environmental
problems and discomfort to locals because of shortages of essential
commodities and price rise, traffic jams, water scarcity, water accumu-
lation, etc. Walt Disney World’s Magic Kingdom in Florida, USA, Ocean
Park in Hong Kong are international examples of successful theme park
planning. Anand Sagar is a spiritual theme park at Shegaon, Maharashtra;
Essel World, Water World Appu Ghar, etc. are other examples of theme
parks on a small scale.
The need for planned development of attractions is of utmost
importance if they are to remain as attractions in the years to come.
Many natural attractions which have developed spontaneously need
planned rejuvenation so that they continue to attract tourists and repeat
visitors. Unplanned and unregulated tourism has an adverse impact on
society, culture, ecology, and the economy in the long run.
Integrated tourism planning which includes proper planning of all
aspects such as physical, legal, promotional, financial, economic,
marketing management, social, and environmental aspects is the need
of the hour. Tourism planning is a complex process which considers the
various aspects as well as the segments of the tourism industry. Tourism
is an economic activity with everyone from the government to the private
sector, locals or host, and the tourists having a stake in it. To reap the
benefits of tourism, it is essential that it is planned and managed logically.

SUMMARY
Tourism is growing at a very fast pace and needs planned development if the
attractions and destinations have to remain. Natural attractions and cultural
attractions need planned conservation. If tourism development is not planned,
there will be no tourist attractions for 5 ‘A’s of tourism will attract mass tourists,
which has a ravaging effect of the destination if it is not backed by proper
planning and management.
Tourism planning and policy formulation is necessary for many reasons and
planning should be done at all levels, namely, site, destination, regional, national,
and international. The main purposes of planning and managing destinations
are environmental conservation, preservation and restoration of heritage sites,
sustainable development, enhanced visitor satisfaction, increasing the
destination life cycle, promotion and revenue generation. Principles of attraction,
456 Tourism Operations and Management

planning should be followed such as taking an inventory of all types of attractions

both existing and potential, evaluating the quality and quantity of existing
attractions, and grouping similar attractions or symbiotic attractions together
for capturing a larger market. A feasibility analysis and a cost benefit analysis
needs to be done before preparing the final plans. The life expectancy of the
attraction should be kept in mind while analysing revenues and costs. On the
basis of findings a final plan which will be implemented is prepared. The plan
should have a mechanism for monitoring and control and should be approved
by the authority.
Theme parks are gaining popularity and are being designed and built at
destinations all over the world. They normally have attractions and activities
for all age groups. They are planned and developed keeping a particular theme
in mind. All attractions need planned development and good management if
visitor satisfaction is to be enhanced and repeat visits encouraged.

KEY TERMS
Authenticity That which is genuine or original and not an imitation, made by
using local skills and indigenous materials and not produced in a factory on
a large scale.
Expenses Costs incurred in connection with the earning of revenue.
Feasibility analysis A detailed study of a project proposal to see whether the
project is capable of being carried out and is practicable.
Fixed costs Costs which remain constant, irrespective of the quantum of output
within and upto the capacity that has been built, for example, rent.
Heritage properties Properties which provide tangible links between the past,
present, and future and is based on the culture and history of the natural
and built environment.
Monuments Historical sites such as ancient forts and palaces, memorials,
mausoleums, battlefields, and residences of famous personalities, each of
which has a story to tell.
Revenue Is the total amount realized from the sale of goods or provision of
services, plus any earnings from interest, dividends, or other items of income.
Theme park A special built tourist attraction based on a dominant theme and
generally a commercial leisure park spread across a large expanse of land.
Variable costs Costs which vary in direct proportion to the output, i.e. they
increase or decrease if output increases or decreases, for example, direct
material cost, labour cost, etc.
 Attraction Planning and Development 457

CONCEPT REVIEW QUESTIONS

1. Why is planned development needed in the tourism industry?
2. List and briefly explain the basic steps to be followed while planning for
tourism.
3. Why do attractions need to be planned and managed?
4. At what levels are tourism plans prepared?
5. State the principles of attraction development. On what basis are attractions
evaluated?
6. Explain the following terms:
(a) Feasibility analysis (b) Authenticity
(c) Cost-benefit analysis (d) Types of costs

CRITICAL THINKING QUESTION

You are given the job of managing an old museum in your locality. How would
you go about this task?

PROJECT/ASSIGNMENT
Visit any theme park and make a list of all the attractions and activities available.
Find out the most popular attractions in the theme park and the age group they
cater to.

REFERENCES
Andrew, S. 2007, Introduction to Tourism and Hospitality Industry, Tata McGraw-
Hill, New Delhi.
Bhatia A.K. 2001, International Tourism Management, Sterling Publishers Pvt
Ltd, New Delhi.
Gartner, W.C. 1996, Tourism Development, Principles, Processes and Policies, Vani
Nostrand Reinhold, USA.
George, R. 2007, Managing Tourism in South Africa, Oxford University Press
Southern Africa, Cape Town.
Ghosh, B. 2000, Tourism and Travel Management, Vikas Publishing House Pvt
Ltd, New Delhi.
Kaul, R.N. 1985, Dynamics of Tourism: A Trilogy Vol. III Transportation and
Marketing, Sterling Publishers Pvt Ltd, New Delhi.
Keyser, H. 2002, Tourism Development, Oxford University Press Southern Africa,
Cape Town.
Seth, P.N. and S.S. Bhat 1993, An Introduction to Travel and Toursm, Sterling
Publishers Pvt Ltd, New Delhi.
 Emerging Trends in Tourism

Learning Objectives
After reading this chapter you should be able to:
understand the need to keep abreast of the emerging trends in the industry
know the current changes in all sectors of the industry worldwide
describe the effects of rapid growth on the aviation sector
understand the need for formulating a tourism policy
appreciate the benefits of information and communication technology to the service providers,
the customers, and the intermediaries
discuss the niche tourism forms which are emerging

INTRODUCTION

ourism is characterized by constant change and development, and

trends indicate what will happen in the future. The UNWTO
had identified, in the year 1998, trends that will influence global
tourism until 2020. It has forecast that international tourism will continue
to grow at the average annual rate of 4.3 per cent a year until 2020, while
receipts from international tourism will increase by 6.7 per cent a year.
The growth of the tourism industry will be rapid in the twenty first century,
with one billion international arrivals by 2010 and 1.6 billion international
 Emerging Trends in Tourism 459

arrivals annually by 2020. Some important points of the forecast are as

follows:
¢ There will be an increase in multiple, relatively short duration trips
by travellers from industrialized countries.
¢ Foreign holidays will become popular amongst people from
developing countries.
¢ Long-haul travel will grow slightly faster than intra-regional travel
and will increase from 18 per cent in 1995 to 24 per cent.
¢ ‘Tourists will be more discerning in their search for quality and value
for money, which will influence their choice of destination.
e Environmental consciousness will increase and destination selection
will be based on environmental quality.
The UNWTO Tourism 2020 Vision predicts that by 2020, one out of
every three trips will be a long haul journey and long haul travel which
was 24 per cent of all international tourism in 1995, will increase to 32
per cent by 2020. Europe has been forecast to remain the lead tourism
region, followed by East Asia Pacific in second position by 2010. China
will be the world’s top destination by 2020 and will become the fourth
most important tourist generating market.

CHANGING SCENARIO OF THE TOURISM INDUSTRY

Customers are always looking at services that give them a unique
experience along with comfort and value for money. With the increasing
competition, hotels are redefining the concept of hospitality and are going
all out to make the customers stay an exciting, extra special and
memorable event. They are pampering travellers with the latest and the
best in services and products. Some important trends in tourism are as
follows:
¢ The experienced traveller looks for rare, authentic vacations in remote
and less well know places, as against luxurious five star vacations.
The trend is towards ethnic and rural tourism.
¢ The emphasis is on rest, relaxation, health and wellness, especially
for tourists with high income and less leisure time.
¢ Frequency of trips is increasing while travel distance and duration of
stay is decreasing and neighbouring country tourism is gaining
popularity.
460 Tourism Operations and Management

¢ Tourists have realized the need for something different and nature
specific featuring premium holidays and select destinations.
¢ The high-end luxury traveller looks for spa facilities, luxury cruises,
wild life safaris, premium holiday packages, wellness holidays, spiritual
getaways etc.
¢ Travel agents and tour operators are focusing on FIT and students as
the GIT market is quite saturated and on MICE and SMERFs.
e Incentive travel schemes to employees, distributors, and associates
to recognize and award performance are on the rise. Incentive travel
now includes exotic and unusual locales such as bush-dinners in
Africa, a private Jet tour over the cliffs of Grand Canyon, a helicopter
ride over the Twelve Apostles in Melbourne, a music extravaganza
at the Paradis Latin in Paris, etc.
¢ Tourist products include special interest products and niche products
such as tours to the North Pole and Antarctica and musical cruises,
exclusive spas and luxury yachts in Greek waters, cultural tourism in
Leh and Ladakh.

More entertainment options are being offered to tourists at the

destination. Some are discussed as follows:
Casinos Casinos are the mainstay of the economies of Las Vegas, Macau,
and Monte Carlo. Gambling Tourism is being promoted by simplifying
entry procedures at such destinations. For example, no visa is required
for Indian visitors at Macau.
Sound and light shows Superior quality light and sound shows are being
organized at historical sites to help the tourist to re-live the events of the
past. For example, the mesmerizing 50 minute Son-et-Lumiere spectacle
at the Khajurao temples’ western complex, evokes the life and times of
the great Chandela kings and traces the story of the unique temples from
the tenth century to the present day.
Human-made attractions Human-made attractions and clusters of
attractions are popular and cater to the expectations of a diverse age
group and social background, for example, Sentosa Island Resort in
Singapore.
Tourism clusters between 100 and 500 acres located up to 150
kilometres from cities, which are primarily designed for domestic tourists
for weekend breaks with family, will also serve to attract international
tourists. The facilities and attractions may have hotels, restaurants, skating
 Emerging Trends in Tourism 461

rinks, lakes with boating and sailing facilities, golf courses, tennis courts,
and indoor games.

SMERFs
The dominant segment of MICE travellers is facing competition from a
fast emerging segment to and around Asia, who travel for social, military,
education, religious, and fraternity reasons (SMERFs). The SMERFs
are the resilient groups, who are budget conscious and do not mind
gathering during non-peak times if expenses can be saved. The SMERFs
collectively form a huge market and have vast untapped potential for
the developing or recovering Asian travel markets. SMERFs travel for a
purpose and not just to see places. They are willing to travel abroad
despite the economic cycle, travel off-season and off the beaten track to
save on transport and accommodation. Social travel includes people
participating in sports teams, talent and dance organizations, or as
volunteer workers for events, etc. Asia’s military needs civilian transport
for its estimated 32 million soldiers on the move and thier proceeding on
leave itself is a highly significant market. The education travel market
specially studying or visiting Singapore as part of a study tour has
tremendous potential. The Singapore Tourism Board is targeting 1,50,000
international students particularly from Asia by 2015. Indian students
are discovering India’s cultural heritage and school groups are emerging
as a valuable market because of repeat tours. Asia is recognized as the
birthplace of Hinduism and Buddhism and religious tourism is on the
rise. The government’s policy to develop joint tourist attractions such as
the Buddhist circuit in Taiwan, China, Sri Lanka, and India has increased.
Pilgrimages are being organized for inbound tourists usually for more
than one destination. India has well-established tour operators to cater
to both domestic and foreign tourists. Fraternal travel, though not as
significant as educational or religious travel, is considering Asia as a
possible destination for international gatherings. Fraternal groups include
Rotary International, Lions Club International, etc. which are large
groups. As SMERFs are not high spenders, SMERF planners can look
for second and third-tier cities.

TOURISTS WITH SPECIAL NEEDS AND THE DIFFERENTLY-ABLED TOURIST

Senior citizens are a growing segment of the travelling public and often
need wheel chairs, walkers, canes, or crutches. Many international
462 Tourism Operations and Management

destinations are friendly towards these travellers. In India, some hotels

and tourist spots have facilities for the disabled, mostly out of compulsion
and not because of genuine concern. Awareness for the need of
accessibility for all including the disabled and making the destination
disabled-friendly can be done by providing
¢ ramps for wheel chairs instead of steps;
¢ escalators in shopping areas;
¢ braille on elevator panels, restrooms, and directional signs;
* telephones with flashing lights for hearing impaired;
¢ wash areas and toilets which can accommodate wheel chairs and
have extra railings;
¢ ambuilifts at airports;
* disabled-friendly transport such as buses and trains for a person on
wheel chair;
* seperate counters for disabled travellers;
¢ designated parking facilities;
* attitudinal change in service providers and the public;
¢ soft skills training on how to transfer guests with mobility problems,
how to speak to the disabled depending on the nature of the disability,
for example, one should not shout while talking to guests with hearing
impairment; and
* assistance services at destination.
Differently-abled or disabled tourists with special needs should have
accessibility to most destinations. For example, Vivekananda
Rock
Memorial in Kanyakumari has been redesigned to suit the needs of the
disabled during its recent renovation. Basilica of Bom Jesus at Goa has
wheel chair facility available at the church.
Anand Sagar of Shri Gajanan Maharaj Sansthan, at Shegaon
in
Maharashtra has been designed keeping the needy,
old, infirm, and
disabled in mind.

EMERGING TYPES OF TOURISM

Many new forms and types of tourism are being developed
to meet the
needs of the growing tourist market. All forms of innov
ation in tourism
are being promoted keeping specific needs of differ
ent tourism in mind
such as culinary tourism, tea tourism, film touris
m, highway tourism, etc.
Some of the emerging forms are discussed in this chapt
er at length while
the reader is just introduced to the other forms.
/
 Emerging Trends in Tourism 463

Cruise Tourism

Cruising to exotic locales in different parts of the world is no longer a

niche activity limited to the upper echelons of society. Refer to Chapter
5 for details on cruise liners. The cruising culture has spread from Europe
and the Americas to India. Cruise holidays on luxury floating resorts are
gaining popularity as cruise operators are offering affordable packages
for all budgets ranging from one day to a number of days for all age
groups. The cruise tourism industry in the country is set to witness an
over three-fold rise by 2010 as number of domestic and international
passengers at Indian ports is expected to increase to 600,000 a year by
2010 from the current 180,000. Besides, number of domestic and
international cruise liners entering Indian ports is also growing as the
country is emerging as a major destination for cruise tourism, according
to the study, ‘Developing Ports as Cruise Tourism Hubs in India’, by
FICCI—Evalueserve.
In 2007-08, about 54 cruise companies including international players
sought permission to enter the circuit in India, the study said. If the
government focuses on developing physical infrastructure, streamlining
immigration and custom checks processes and takes recourse to viability
gap funding in building infrastructure, the country’s tourism industry
could see a three-fold increase in the domestic and international cruise
passengers.
A cruise policy formulated by the Ministry of Tourism, India is soon
to be implemented and is expected to boost international cruise business
in the country. The only international cruise company that is presently
functional on the Indian coast is Ocean Cruises India.
The entire cruise development plan which includes building
infrastructure such as new passenger and cruise terminals is scheduled to
be activated through public-private partnership mode. It is proposed
that cruise operators get some concessions in income tax, excise duty,
customs duty, corporate tax and service tax, and other benefits to increase
passenger landings.

Floating Luxury Hotel

QE2, the famous 70,000 tonne luxury ocean cruise liner which was
launched in 1967 by the Queen of England, will soon become a luxury
floating hotel.
464 Tourism Operations and Management

The ship has been purchased by Dubai World Company, which also
owns the P & O Shipping Company. The ship will be berthed at a specially
constructed pier at luxury Palm Jumeriah, the world’s largest human-
made island.

Heritage Walks
This is a new trend which is eco-friendly and is gathering momentum in
India. A two-hour guided heritage walk to study the history which is
reflected in the architecture, local way of living, craft, and culture of old
parts of city untouched by urbanization is being popularized by the State
of Gujarat at Ahmedabad and by other states too. Dwelling owners are
being given financial assistance to preserve their properties.

Spiritual Tourism
Spiritual tourism is one of the most popular forms of tourism today. It is
also called pilgrimage or religious tourism and involves travel to religious
places for spiritual benefit. Many people today follow the path of their
gurus, and find solace in their preaching and discourses. Tour operators
are developing special packages for the spiritual tourists.
Floating spiritual villages in the tranquil backwaters of Kerala, offer
corporate executives an unforgettable experience and choice of spiritual
and health therapies and discourses from spiritual gurus, all inside
houseboats and floating cottages.

Space Tourism
One of the most advanced technological developments to be witnessed
by humankind and one of the costliest types of tourism, is a trip to space
which at present costs approximately USD 20 million. Space tourism as
defined by the Space Tourism Society covers
¢ travel to the earth’s orbit and sub-orbit;
¢ travel to planets beyond the earth’s orbit, for example, to Mars;
¢ earth-based simulated experiences at NASA centre and entertainment
based experiences; and
¢ cyber space tourism experiences.
Some of the companies promoting space tourism are Virgin Galactic,
Space Adventures, Starchaser, Blue Origin, Bigelow Aerospace, etc.
Space tourism will give the space tourist the unique and thrilling
experience of viewing the earth from outer space. More affordable sub-
 Emerging Trends in Tourism 465

orbital flights are currently priced at USD 2 million, flying at an altitude

of 100 to 160 kilometres in space and letting the tourists experience
weightlessness for a few minutes, be amongst the stars, and view the
curved earth below.
Space Adventures Ltd is working on circumlunar missions to the moon
at a passenger price of USD 100,000,000. Space stations are being set up
and old space stations are being converted to space hotels. Bigelow
Aerospace has launched the first inflatable model called Genesis I in July
2006 and Genesis II in June 2007.
The first commercial space station is scheduled be set up by year
2010. Orbital and sub-orbital space tourism is intended for the rich and
famous and although the cost of a flight may reduce, it seems it will be ill
afforded by the common man.

Underwater Tourism
The deep seas have always been an attraction for tourists whether it is
fun and frolic on the beach, viewing the coral reefs on the seabed or
marine creatures in ocean parks. The latest addition to deep sea attractions
are restaurants and hotels submerged in the sea. The Hydropolis in
Quingdao, China is a hotel under the Yellow Sea, which is scheduled to
open sometime in 2009, and will offer rates comparable to five star hotels.
Another hydropolis under construction is the 220 suite, luxurious
underwater hotel in Dubai situated 60 feet beneath the Persian Gulf. In
keeping with the theme, the hotel will be shaped like a jelly fish with
bubble-shaped suites and will be connected to land via a submerged
transparent train tunnel.
The Jules Undersea Lodge at Key Largo, Florida which was once an
authentic underwater research station, now offers overnight packages to
tourists from 13:00 hours to 10:00 hours at USD 475 which include diving
gear, a gourmet dinner, and breakfast. The access to the hotel is via
scuba diving 21 feet below the surface of the sea.
Underwater tourism also includes visiting wreckages of famous ocean
liners which lie deep down on the ocean bed and travelling in submarines
to study the marvels of the water kingdom.

Perpetual Tourism
This is a term used to describe people who are perpetually on the move
and stay in one country for a set period of time only so that they can
466 Tourism Operations and Management

avoid the legal obligations which arise out of permanent residency, for
example, paying of income tax which is mandatory if a person stays for
122 days in one country. They adopt this lifestyle to be free from the
laws that govern citizens of a country.
Perpetual travellers (PTs) are people who live in such a way that they
are not considered legal residents of any of the countries in which they
spend time. By lacking a legal permanent residence status, they seek to
avoid the legal obligations which may accompany residency, such as
income and asset taxes, jury duty, and military service. For example,
while PTs may hold citizenship in one or more countries that impose
taxes based solely on residency, their legal residence will most likely be
in a tax haven. PTs may spend the majority of their time in other countries,
never staying long enough to be considered as residents.

Virtual Tourism
This allows a tourist to visit a destination sitting comfortably in an arm
chair, confined to the home. Virtual reality helps them to explore different
regions of the world, visit sites without having to book tickets, apply for
visas or spend money, i.e. without having to physically travel.
It is a boon to those who do not get an opportunity to travel or do not
have the time and money to travel.
It also helps tourists wishing to travel, to decide on a destination for a
holiday and shows them what they can expect to see. Technology is used
to take tourists on a panoramic tour to give an all-round unbroken view
of the destination, which makes them virtually feel they are at the place.
People are made to sit in the centre of a dome-shaped room which has
screens all around. The Internet, multimedia packages, and the television
along with travel literature are used for the virtual experience.

Dark Tourism
Dark tourism or black tourism is a pilgrimage to places where people
gave up their life for the nation or where famous personalities breathed
their last. The Cellular Jail at Port Blair, the death site of St. Peter in
Rome, the crash site where Princess Diana lost her life, the Nazi holocaust,
World War I] sites, etc. are places people visit to pay homage to the
departed souls or are curious to see.
 Emerging Trends in Tourism 467

Disaster Tourism
Tourism professionals are cashing in on destruction caused by various
disasters to satisfy the curiosity of people to witness the extent of damage
caused by various natural and human-made disasters by organizing guided
bus tours to such sites. Prominent among such sites are Ground Zero in
New York, where the twin towers of World Trade Center were razed to
the ground following the 9/11 terrorist attack, the sites of destruction
which bore the brunt of the 2004 tsunami and Hurricane Katrina, etc.

Extreme Tourism
This involves travelling to risky places or participating in dangerous
events. This is a niche tourism product for the physically fit, daredevil
tourist who is aware of the risk, yet is inclined to experience what majority
tourists would not dare to imagine and includes ice diving in the White
Sea, trekking through dense jungles, etc. Some types of niche tourism
are shown in Exhibit 16.1.

Exhibit 16.1 Some niche tourism types

Type/form Description
Accessible tourism The ongoing effort to make all tourist locations accessible to people from all
walks of life, regardless of their state of health, age, or disability.
Arctic and Trips to the South Pole and North Pole are being promoted by tour operators.
Antarctic tourism It includes visits to pristine landscapes to watch birds, marine mammals, and
polar bears. Helps increase awareness about the sensitive environment, leading
to its preservation.
Ancestry tourism Also known as ‘genealogy tourism’, it is travel undertaken with the aim of
tracing one’s ancestry, visiting the birthplace of one’s ancestors and going
back to one’s roots.
Cycle tourism Includes trips to places of tourist interest either overnight or excursions in
which leisure cycling is a fundamental and major part of the visit. It is
gaining popularity because of increased awareness about the need to preserve
one’s health and the environment.
Dark tourism Also called ‘black tourism’ or ‘grief tourism’, it includes visits to sites associated
with death, suffering, and disaster such as visits to battlefields, prisons and
the notorious Nazi extermination camp at Auschwitz in Poland.
Ecotourism Ecological tourism is a form of minimum impact tourism that appeals to
ecologically and socially conscious individuals and includes travel to natural
areas where flora, fauna, and cultural heritage are the primary attractions.

Contd
468 Tourism Operations and Management

Exhibit 16.1 Contd |

Type/form Description

Film tourism Includes visits to locations where films are made or where television serials | |
are in production. People travel to gain information on filmmaking, to attend | |
film festivals and fan events around the world. |
Food tourism Food and beverage are vital components of the tourism experience. It is| |
travel to various destinations to gain a unique insight into food and beverages | |
served, experience different food customs, visit food festivals, culinary schools, | |
or spice gardens. |
Gay tourism Also known as ‘pink tourism’ or ‘LGBT tourism’, it is a form of niche tourism] |
marketed to gay, lesbian, bisexual, and transgender people to travel to LGBT-
friendly destinations or people wanting to travel with other LGBT people. Gay] |
tourism is at its peak during special gay events such as annual gay pride)
parades, gay neighbourhood festivals, or gay games.
Hedonistic tourism Travel by the self-indulgent in pursuit of physical pleasure and social life.
Jazz tourism It is a form of tourism for Jazz music lovers and include musical concerts | |
delivering the very best in Jazz.
Life-seeing tourism This form of tourism involves indulging in purposeful activities that match] |
the tourist’s interests and actually seeing the area for life’s enrichment and
not only experiencing the high points of a given location. Generally travel is |
undertaken during off season. |
Moral tourism Travellers who strive to do no harm and respect traditions and taboos of the |
host are morally driven, are environmentalists and human rights activists, |
and are called moral tourists. They do not take souvenirs from the environment
but pick up litter and believe in taking photographs and leave only footprints |
behind. |
Off-beat tourism Travel to off-beat destinations to enjoy fascinating sights not mentioned in| | |
tourist books or visits to relatively newer fields such as ayurvedic villages, |
travel for yoga therapy, etc. |
Research tourism This is travel undertaken for discovering, interpreting, and developing methods ||
and systems for the advancement of human knowledge on a wide variety of |
disciplines.
Shock tourism Also called ‘extreme tourism’, it includes travel to dangerous places or |
participation in dangerous events like travelling across the Chernobyl zone or
ice diving in the White Sea. This form of tourism is popular in Russia, Peru,
Chile, Argentina, and North Pakistan.
Tribal tourism Travel to explore the striking features of tribal life around the world is gaining
popularity. India, Africa, and Latin America are major destinations. India has
577 tribes mainly in Chattisgarh, Jharkhand, northeastern states, and Andaman |’
and Nicobar Islands. People travel to witness tribal festivals, rituals and
weddings, and also to study the flora and fauna of the states.

Contd
 Emerging Trends in Tourism 469

Exhibit 16.1 Contd

Type/form Description
Volunteer tourism This form of tourism gives people an opportunity to have a holiday as well as
work on social and conservation projects. These tourists get the satisfaction
of contributing to a worthwhile project, experience new activities and enhance
their skills. Volunteer tourists are hardworking, dedicated, and committed.
Wedding tourism This form of tourism is on the rise in India and tour operators are packaging
special wedding tours. India lures young couples to celebrate their wedding
in grandeur and magnificence in true Indian style. The opulent wedding
celebrations which last for several days are a treasure trove of our culture and
traditions.
Wine tourism Travel undertaken for tasting, consumption, or purchase of wine often at or
near the source. It includes travel to wine regions around the world, visits to
wineries, wine stomping, wine festivals, wine tours, visits to vineyards and
to restaurants who offer unique vintage wines.

PRESENT ACCOMMODATION SCENARIO

There is a shortfall in tourism accommodation in our country. The number
of rooms in hotels in star category approved by the Ministry of Tourism,
India was 1,00,000 at the end of 2006-07 of which 30 per cent were five
star/five star deluxe category. A shortfall is one of the reasons for an
unprecedented increase in room tariff making it unaffordable for the
upper middle class leisure traveller and the MICE segment as well. By
the year 2010 India is anticipating 10 million international tourists. The
estimated shortfall in tourist accommodation in the country will be
150,000 rooms of which 100,000 will be in the budget category or the
no-frills hotels. Land prices and shortage of land for budget hotels has
been identified as one of the main reasons for this deficit, especially in
metros where the land cost may amount to 30 to 50 per cent of the
project cost against the international norm of 10 to 15 per cent.

Measures taken by the Central/State Government

To overcome the shortfall in tourist accommodation, the Government
has recommended the following seven measures:
1. Land use conversions within city limits, for example, from
agricultural, institutional, or residential use to hotel use.
2. Allowing a higher floor area ratio (FAR) in areas of no congestion
with compulsory underground parking.
470 Tourism Operations and Management

3. Giving land on long term lease or revenue-sharing basis. For

example, at Uttarakhand under the public-private partnership
(PPP) the Uttarakhand Tourism has entered into a collaboration
with hospitality major Emaar MGF to develop an international
standard 200-room five star hotel and state-of-the-art convention
centre for 1200 people in Dehradun, the state capital.
The project under the build-operate-transfer model will be set up
at a cost of Rs 200 crores on a ten acre plot owned by the State
Government. The land has been handed over to Emaar MGF on
a 30 year lease and the group will hand over the hotel to the State
Government after the expiry of the lease term. The State
Government hopes to earn Rs 7 crore a year from the hotel project
through two per cent revenue-sharing and lease rent.
4. Additional land near many of the 48 non-metro airports and two
metro airports will be made available for hotel construction of
PEE:
5. Hotels and hotel-like properties of state government corporations
which are being run at suboptimum levels or at a loss could be
given to professional private sector hoteliers on the basis of
international competitive bidding.
6. Adoption of single window clearance of hotel projects.
7. Encouragement of the bed and breakfast schemes whereby owners
of suitable residential accommodation are registered for offering
accommodation to tourists and are treated as non-commercial
activity. They are given tax concessions such as relief from luxury
tax and VAT and are charged residential rates for electricity and
water supply.

TOURISM DISTRIBUTION SYSTEMS

There has been a marked change in the distribution of tourism offerings
in the past few years as new technology has enabled consumers to directly
access the tourism product. The tourism distribution systems are discussed
in the following section.

Information and Communication Technology

Every minute of the day, there are changes and developments in inform-
ation technology. Information and communication technology (ICT)
has
 Emerging Trends in Tourism 471

changed the business of selling travel and travel agents will need to change
with the times if they wish to remain in business.
Travel distribution has been most affected by information and com-
munication technology. Prior to the advent of ICT, making reservation
was a tedious process. Travel agents had to phone different airlines, hotels,
etc. to check the availability of seats and rooms and the fares and tariffs.
This information had to be conveyed to the customer, who would then
decide and inform the agent and the agent in turn would then phone and
make the booking. If the hotel was located abroad, communication was
via telex or fax as making international calls was very costly. Today,
Internet-based booking systems, with their facilities to search, compare,
and buy tourism offerings, have revolutionized the tourism industry. It
has now become simple for consumers to purchase full package holidays
via the Internet without approaching the travel agent. Nowadays, both
the principal supplier as well as the customer has a wide choice of
distribution methods to choose from, ranging from travel agencies, virtual
or online travel agencies, Internet, call centres, tourist information offices,
electronic point of sales (EPOS) systems, supermarkets, sales representa-
tives, destination management companies, and travel clubs.
Traditional travel agents need to compete by developing specialized
knowledge to maintain their competitive edge. ICT has provided both
benefits and threats to travel agencies.

Benefits
It has helped travel agents by simplifying reservation procedures by
providing fast and efficient service, choice of fares and seats and almost
instant confirmations, increased access to information, computerized data
bases of customers, efficient billing and ticketing systems, compiling
reports, preparing complicated travel itineraries, etc. as well as letting
them have an online presence of their own.
With ICT, travel agents can give their customers a virtual tour of the
destination, before finalizing the tour. Tourism destination websites can
be accessed to get customized information on the destination chosen like
pictures of hotels, tourist attractions, weather conditions, passports, visas
and health requirements, etc.

Threats

Traditional travel agents are threatened by the competition which has

arisen because Internet access has given the customer direct contact with
472 Tourism Operations and Management

the tourism suppliers such as airlines, hotels, tour operators, etc. Travel
agents and tour operators now have to compete with new forms of
business-to-consumer technology such as e-tickets and ticketless travel
where passengers are not issued a coupon or ticket but only a reference
number. These technologies are bypassing both the travel agent and the
airline global distribution system (GDS) and selling directly to consumers.
Airlines are opting for these technologies as they help reduce costs and
speed up the check-in processes.
Developments in ICT has helped in getting the product out to the
consumers in the most effective and economical manner.

Global Distribution Systems

The global distribution system (GDS) is a computer reservation and
information system that is often operated by multiple airlines, used by
travel agents and other travel professionals. It contains information on
all types of travel products like hotels, airlines, insurance, etc. The GDS
connects the principal suppliers and the travel agents. It checks the
availability of services, makes bookings and is capable of printing tickets
through a printer in the office.
GDSs link all parts of the distribution system, i.e. airlines, travel
agencies, car rental companies, and hotel chains. They offer easy access
and enable users to book their complete package of requirements from
airline tickets, accommodation, car hire, etc. using one computer terminal
and Windows operating system. A Windows-based program on a personal
computer helps the user to move from Word into the GDS and back
without changing computers. The user can move from one window to
another without having to sign off from one program to access another.

The GDS network

The personal computer in the travel agency is linked to other personal
computers in the office by cables, phone lines, or fiber optics to form a
computer network. Computers in a network can exchange and share
information as well as a printer. The personal computer receives and
sends information to and from the GDS.
The GDS is a central computer that comprises of a huge database
along with system and application software. This central computer is
connected to various public and private networks. Every computer/
terminal that is on these networks can communicate with the GDS via
several different interfaces. Figure 16.1 shows us how systems are accessed.
 Emerging Trends in Tourism 473

Customers

Personal Computer/ Website of Individual

Mobile Phone (Internet) pee ency Service Providers

Online Travel Agents Global Distribution Systems

cleartrip.com Galileo
makemytrip.com Worldspan
travelguru.com Amadeus
yatra.com Sabre

Tourism Suppliers

Airlines CRS Hotels CRS Cruise Liners CRS Car Rentals CRS
Air India Hyatt Star Cruises Hertz
British Airways Marriotts | Royal Caribbean cruises Avis
Lufthansa Taj Holland America cruises Budget
Virgin Atlantic Oberoi Seabourne cruises Euro

Fig.16.1 GDS networks

Courtesy: Rohit Sanas

These interfaces establish user-friendly dialogue with the GDS through

graphical representation of data. For example, a customer may request
information of all flights between Mumbai and Delhi on a particular day
that departs from Mumbai between 08:00 hours and 10:00 hours. The
interface he/she chooses may be a travel website which he/she accesses
through a web browser, for example, Internet Explorer, Mozilla, Firefox,
Opera, etc. He/she submits his/her query by entering the above
information on a simple data entry form. The GDS replies to his/her
query by providing information which will be displayed by the interface
in the form of a report showing all available flights. The interface may
allow the user to sort the list of available flights by fare of ticket, time of
474 Tourism Operations and Management

travel, etc. The customer can select his/her flight and if required hotel,
cruise, travel insurance, and car rental, and proceed to book the same
online.
The GDS associates the customer with all the services that he/she has
reserved via a passenger name record (PNR). The PNR stores all details
about the customer like last name, first name, title, address, services
booked, credit card number, details of travel agent, and frequent flier
membership number.
Every PNR is given a single booking reference number after the
passenger’s reservation details have been closed and saved. This PNR
number helps the agent in accessing passenger details and making
amendments if necessary.
It is the GDSs that have enabled the travel agent to offer a bouquet of
services to the customer and broaden the vistas of business as well as
revenue. Through the GDS the agent can do just about anything like
making special arrangements for an ailing passenger, creating a full-
fledged FIT itinerary, or changing travel dates without making a single
phone call.
The main GDS in the world are

e Galileo e Sabre
e Abacus e Amadeus
¢ Apollo ¢ Worldspan

These systems have developed from the early computerized

reservation systems (CRS) which were developed by airlines to solve
their problem of handling reservatior ; manually. The first CRS was
introduced in 1976 by United Airlines and Apollo was installed in travel
agencies. By 1987, CRS was installed by practically all the travel agencies
in the USA.
Since 1987, large CRS have extended their products and services and
changed into world wide or GDS.
Today, principal suppliers have their own CRS and are linked to one
or more of the GDSs. After a number of alliances and mergers with
several cross-ownerships there are six main GDSs as mentioned above.

ONLINE TRAVEL AGENTS

They are the new breed of virtual travel agents who are taking over a
major share of reservations online and offline from the traditional travel
 Emerging Trends in Tourism 475

Procedure for Booking Online

|
Customer logs on to cleartrip.com (GDS-Abacus)

’
Booking section and checking fare,
Types in requirement,
Views fares from lowest to highest,
availability, airline preference, etc.
O-DM
Av

{
To book ticket gives details
Name of person booking,
Name of person travelling,
Contact details.
O+DM
ND
If seats are available, receives
Confirmation id. (PNR of cleartrip.com)

|
Mode of payment accepted is
Domestic credit cards (Master / Visa) or
Internet banking and
D+WM
WD
within half an hour receives e-ticket by e-mail

Fig. 16.2 Three basic steps in booking tickets online

agents. They account for approximately 30 per cent bookings on GDS,

mainly of domestic air tickets.
Domestic ticketing is predicted to be mainly online because of e-
ticketing. Some popular online travel agents (OTAs) are cleartrip.com,
makemytrip.com, yatra.com, arzoo.com, akbartravelsonline.com,
travelguru.com, etc. Figure 16.2 shows the basic steps in booking tickets
online.
If there is any change in fare between booking the ticket and making
the payment, the OTA contacts the customer regarding the increase in
fare by e-mail to check if increased fare is acceptable.

THE ZERO PER CENT COMMISSION ERA

Airline companies were initially paying travel agents a commission on
airline tickets which was nine per cent then reduced to seven per cent
and five per cent in 2005 and proposed zero percent commission from 1
October 2008. The national carrier issued a written statement to all agents
associations announcing its decision to move to nil commission effective
1 October 2008. Jet Airways and Kingfisher Airlines have also taken the
same decision. While the proposal for zero per cent commission has
been submitted, a few international airlines are still paying a five percent
476 Tourism Operations and Management

commission to travel agencies, but how long this situation will continue
is debatable.
In a move to control costs, airlines have decided to decommission the
travel agent. The agents are the primary distributors of the airlines and
this decision has led to a strained relationship between the two parties.
Travel agents depend on the airlines’ commission for their existence and
this decision will have a drastic effect, especially for the small ticketing
agents.
Travel agents play a vital role in promoting and selling airline products
and approximately 80 per cent of airline tickets are distributed through
agents. With the nil commission decision, travel agents have united and
associations are discussing strategies and considering boycotting booking
of air tickets completely. However, in the talks between the airline and
the travel agent, the GDS which connects the two also needs to strategize
and convince the travel agents to continue booking tickets on their
platform, otherwise their revenue earnings would decrease as the airlines
are paying the GDSs a minimum of USD 4 as distribution fees per flight
segment. The GDSs have the advantage of providing a single point of
sale, where agents can contact different airlines without the need to search
across various airline portals. This not only saves valuable time and costs
but also increases efficiency.
The GDS does not depend only on airlines as it has non-air segments
like hotels, trains, and car rentals. In the hospitality sector the GDS Galileo
has 220 hotel chain codes with over 77,000 hotel properties, of which
over 30,000 properties have best available rates. The commission offered
to the agent for buying non-air inventory over,the GDS for hotel rooms
are ten per cent and hotel bookings may be for a couple of days, which
amounts to a substantial figure.
Even if airlines do not pay the travel agent for booking airline tickets,
they would still be required for the other services such as booking cruises,
hotel accommodation, car rentals, etc. and giving that personal touch to
travel.
India has witnessed a rapid growth of tourism in the new millenium
with tourist arrivals and foreign exchange earnings going up steadily.
The World Travel and Tourism Council had rated India as one of the five
fastest growing tourism economies of the world. A survey conducted by
‘Conde Nast Traveller’ reveals that India is preferred to many other tourist
destinations like France, Singapore, and Switzerland.
 Emerging Trends in Tourism 477

National Trends
Due to the global economic meltdown and terror attacks, the tourism
industry has faced rough weather, but people are still travelling to India.
According to initial figures prepared by the Union Ministry of Tourism
(MoT), there has been a six to eight per cent jump in foreign tourist
arrivals in 2008 over the corresponding year 2007. In 2008 the tourist
arrivals to the country were 5.3 million as compared to 5.08 million in
2007. Foreign exchange earnings from this sector also showed a growth
of eight per cent at USD 11.5 billion in 2008 as against USD 10.70 billion
registered in 2007. There has been an increase in traffic to the tune of 75
per cent with employment generation up by more than 43 per cent
between 2002 and 2007. It is estimated that more than USD 6.5 billion
of investment has already come for the construction of new star hotels.
While the shortage of rooms in major metros is adversely affecting
the flow of tourists to the cities, construction of approximately 14,656
rooms for the Commonwealth Games 2010 in Delhi is in process.
Several countries have transformed their economies by developing
their tourism potential. The Indian economy is undergoing a major
transformation and with an annual growth of eight per cent, India has
become the second most favoured destination for foreign direct invest-
ment (FDI). The government has recognized the enormous potential of
tourism for contributing to economic growth and the manifold benefits
which accrue from planned tourism development (see Chapter 14).
In the Eleventh Five Year Plan, the working group on tourism has
recommended a target of 10 million international arrivals by 2011.
However, in its vision document, the Ministry of Tourism forecasts the
achievement of this target by 2010, the present figures of international
arrivals being five million international arrivals. To achieve the target of
ten million arrivals, the principal source markets will be diversified,
infrastructural facilities such as airports, roads, civic amenities at tourist
destinations will be improved, air seat capacity and connectivity will be
increased and their will be huge publicity campaigns.
The principal source markets would include Israel, Spain, China,
Japan, South Korea, Australia, Brazil, Argentina, etc. which offer high
growth potential. The plain also stresses on the need to concentrate on
countries with a large Indian population such as South Africa, Mauritius,
Kenya, Malaysia, Fiji, etc. for higher tourist arrivals from these countries.
The baby boomers group in North America and Europe would be
targeted and encouraged to visit India by fostering in them the desire to
478 Tourism Operations and Management

enjoy diverse cultures and discover one of world’s oldest civilizations.

State tourism development corporations are framing their tourism
policy and strategies to promote tourism in their respective states.
For example, the state ofJharkhand is planning an aggressive strategy
to overhaul its entire setup, to promote itself as a strong destination for
tourism. The state is planning to launch a portal for its department of
tourism, which will possess detailed information about districts, cuisine,
special tourist destinations, art, and culture. This unique site will provide
communication points, road, and rail routes with maps for tourists.
Adventure tourism like aero-sports, toy trains, and other activities has
also been planned. The state is also planning to install a strong
International Tourism Management System (ITMIS) which will aim at
offering a platform for an internal messaging system. All tourism-related
information will be stored and be easily accessible like acts and policies,
land acquisitions, tourist analysis data, etc.

TRAVEL INDUSTRY TRENDS

The business environment in the travel industry is constantly changing.
Some of the trends which are likely to change the structure of the tourism
industry and the way in which tourism businesses interact are as follows:

Disintermediation
This trend affects the travel distribution system and means elimination
of the intermediaries, i.e. the traditional travel agent from the distribution
chain. With the advances in ICT, giving customers direct access to travel
information to make their own travel arrangements, OTAs, and e-ticketing
are a threat to the travel agent. Adapting to new technologies and using
them correctly is a challenge which agencies have to take up.
Decommissioning of the travel agent by the airlines and travel agents
having to charge a service fee to the customers as they will not be receiving
any commission from airlines, may lead to the following two trends:
1, Customers may book tickets directly from the airline’s website to
save on paying service fee to the travel agent.
2. Corporate executives who need a seat at short notice and change
travel plans more frequently than leisure travellers will still book
tickets through the travel agent as they are not worried about
costs and do not have sufficient time to spend booking
their own
travel. ;
 Emerging Trends in Tourism 479

The personal interaction with the travel agent cannot be replaced by

the impersonal bookings via the Internet.

Integration
Because of increasing competition amongst principal suppliers in the
tourism industry, tourism businesses form links with other companies in
order to survive and take over the competitors. Integration is an economic
concept that describes the formal linking arrangements between
organizations.
Linking may take place vertically or horizontally between organizations
in the distribution system (Fig. 16.3).

Horizontal integration
It takes place when two similar organizations such as two airlines merge
and or are amalgamated or where one is taken over and absorbed by the
other. Such integration helps the airline to gain a wider market share of
the airline sector and helps reduce operating costs by sharing of
administration offices.

Vertical integration
Vertical integration takes place when an organization at one level of the
distribution chain links with an organization at another level (see Fig.16.3).
For example, if a tour operator buys its own hotel or an airline acquires

Principal Suppliers

|
Airlines, hotels, car rentals

Tour operators

|
“roe ripen oct Vertical integration

Travel agent <————— Travel agents

Horizontal integration
|
© Consumers

Fig. 16.3 The distribution channel in tourism

480 Tourism Operations and Management

its own tour operations company. This type of integration helps in

expanding tourism business by offering a wider range of products and
services. It also helps in gaining control over more elements of the tourism
supply chain like if a tour operator owns and operates its own hotel, it
can ensure availability of rooms, reasonable room tariff, quality of
supplies, and quality of service in a better way.
Vertical integration is called forward when a business links with another
business one level down or closer to the customer, for example, the airline
acquiring its own tour operator. It is called backward integration when
links are formed one level up like in the case of the tour operator buying
its own hotel.
Integration includes links such as mergers, acquisitions, takeovers,
alliances and generally results in change of ownership. Strategic alliances
give the organization added opportunities for rapid growth and global
presence which an individual organization may find difficult to achieve.
Integration does not necessarily involve ownership. For example, in a
merger, a company may take over and combine the operations of another
business with its own operations. The two companies combine to form
one corporate structure that retains its original identity like Air India
and Indian Airlines merging to form NACIL.
Integration can also mean that businesses agree to work together and
form alliances. For example,
¢ the frequent flyer programme involves cooperation agreements
between airlines, accommodation, car rentals, florists, etc.;
* Kingfisher Airlines and Emirates Airlines have formed an alliance;
and
¢ Star Alliance is the world’s biggest airline alliance.
Acquisitions and mergers are emerging as an integral part of the
business environment.

Consolidation
Another trend is that of consolidation or concentration. Concentration
means that a few large firms are emerging in tourism globally, through
horizontal integration and these firms will have the majority share of
tourism demand.
Some travel companies are called consolidators because they combine
bookings from several travel agents and benefit from group fares.
 Emerging Trends in Tourism 481

TRENDS IN THE AVIATION INDUSTRY

Trends in the aviation industry include the following:

Bilateral Agreements
This is an older trend. It is an agreement concerning relationships between
two countries in which they agree on reciprocal privileges not extended
to others. For example, India has entered into bilateral agreements with
Indonesia’s national carrier, Garuda Indonesia. However, the need of
the hour is liberalization of traffic to prevent fragmentation in the industry.

Code Sharing Agreements

This involves use of the same airline identification code for two or more
sectors which may be operated by different airlines, designed to promote
the use of airlines for connecting flights.

Interline Agreements
These are agreements between two or more airlines/carriers which enable
one carrier to include the services of another carrier in its tickets and to
share the revenue. Air Astana, the national carrier of the Republic of
Kazakhstan has entered into an interline agreement with Indian domestic
carrier Kingfisher Airlines on a pro-rata fare basis. Both airlines will help
promote each other’s country as a tourism destination.

Joint Ventures
A joint venture is a contractual agreement in which two or more separate
parties are involved in the joint ownership of business units, joint
participation in financial outcome, and also management and operation
of the venture.

Public-private Partnership
We have already read about public-private partnerships (PPP) earlier in
this chapter. It is essential to attract investment in the tourism sector in
order to upgrade infrastructure facilities as well as to market tourism
destinations. Many tourist destinations all over the world have been
privatized and are running successfully. The model of PPP should be
suitably applied to tourist destinations in all states and union territories
in India.
482 Tourism Operations and Management

The privatization policy will help tourism in the following respects:

¢ It will develop the destination as a tourist centre and provide necessary
amenities.
¢ It will help to preserve our heritage and culture which require
considerable resources.
¢ The private investor will work to promote the destination in order to
recover his investment. This will boost marketing of the destinations
in India.
For example, the Uttarakhand government encourages private sector
participation in the development of infrastructure projects including
special economic zones, food parks, theme parks, tourism destinations,
roads, airports, civic infrastructure, etc. (see Exhibit 16.2).

DEVELOPMENTS IN AVIATION
India’s civil aviation sector has witnessed a meteoric boom over the last
few years. With the sudden and breakneck growth in aviation, many

Exhibit 16.2 Tourism industry in Uttarakhand

The state of Uttarakhand has accorded tourism the status of ‘thrust industry’ and
offers many opportunities for development of tourism and related activities and services.
It is the first state in India to have created a tourism development board by legislation
as the highest body to function as promoter, adviser, regulator, and licencing authority
for tourism in the state.
The Ministry of Commerce and Industry, Government of India has announced a
concessional industrial package for the state of Uttarakhand. The list of thrust industries
which can avail of incentives for their new projects include the following:
ecotourism
hotels, resorts, and spas
entertainment/amusement parks
rope ways
The objectives of the new projects include the following:
e There will be 100 per cent exemption on entertainment tax for all new multiplex
projects for five years and thereafter 30 per cent for next five years.
e New projects would be entitled for capital investment in plant and machinery up
to Rs 30 lakhs.
e Rebate/deferment facility in the payment of luxury tax for new tourism units for
five years from commencement date 100 per cent.
Exemption on entertainment tax for five years for new amusement parks and new
| ropeways.
 Emerging Trends in Tourism 483

positive and negative developments have occurred from designing the

‘first airline suite in the sky’ and redefining luxury and comfort, and woo
customers to travel by business class and first class, to making air travel
affordable to the common man, and running into losses and causing
congestion in the skies. Let us take a look at the emerging aviation industry.

Cost Cutting Measures

With the prices of Aviation Turbine Fuel (ATF) spiralling, there has been
a rise in air fares that has led to a slump in out bound tourism. FIT,
leisure and MICE-related travel has slowed down. Large corporate houses
have been cutting short their travel plans.
In the present scenario, the cruise market is picking up and children
are permitted to travel free with parents. Travel agents are promoting
road and rail holidays to various destinations. Quick monsoon weekend
getaways are becoming quite lucrative. The tourist is looking forward to
relaxing in spas and resorts to de-stress from the tensions and hectic
work schedules which are a permanent feature of urban lifestyle.
Airlines are looking for ways to reduce unnecessary expenses and
may curtail unprofitable operations.
Our national carrier Air India is working on a plan to reduce losses
by Rs 1000 crore annually, by cutting capacity through rationalization of
routes and removal of loss-making routes. It is checking the possibility of
taking the polar route for its non-stop flights to New York from Mumbai
and New Delhi to reduce flight time by one and a half hours on the two
routes and save on fuel consumption.
The present problem faced by airlines is overcapacity and seats going
at low prices. Aircrafts can be given on lease to international carriers to
generate revenue.

Air Cargo Management

Airlines are trying to make maximum use of its available resources to
counterbalance high costs. India has potential to develop into a global
air cargo hub, because of its geographical location and trade relations
with other countries, and is being viewed as an alternate source of revenue
to overcome rising fuel costs and the big investments which have been
made in purchasing larger aircrafts.
New generation aircrafts offer 15-20 tonnes of cargo space while others
are in the process of converting passenger airlines to freighters.
484 Tourism Operations and Management

Air India Holidays

It is promoting packages to the north-eastern states. Customized
international packages have been prepared as LTC has now been
extended even to international leave for employees.

Low-cost Carriers
Low-cost carriers (LCC) or the no-frills airlines follow a strategy to offer
passengers discounts on actual fares for seats booked in advance.
Jet Lite, the 100 per cent subsidiary of Jet Airways has introduced
Apex-21 special advance purchase fares which must be purchased at
least 21 days prior to departure date of the first segment. They are for
passengers travelling economy class on several domestic routes. In case
of cancellations, only the applicable tax component is refundable. Sama
Airlines, the Saudi Arabian LCC has introduced flights to India.
Air Tanzanian will provide the non-existing direct link to India. Direct
flights will ease access and create more demand, giving tourists more
time at the destination, as a lot of time and effort is lost in catching
connecting flights. International destinations have recognized the potential
of the Indian market for inbound travellers.

Bar Coded Boarding Passes

After using technology successfully for e-ticketing, it is now being used
for the convenience of boarding the aircraft. A single boarding pass for
all routes is to be introduced shortly. The bar coded boarding passes
(BCBP) is convenient to customers as it can be printed at home and will
be read by bar code readers placed at airports. In future this facility will
be available on mobile. The benefits of BCBP as per IATA statistics are
80 per cent reduction in paper costs, 40 per cent reduction in equipment
replacement costs, and reduction in airport staff.

Helicopter Travel
The Government of India has realized that helicopter operations are
most suited to the country because of its diverse land forms. The nationa
l
helicopter company Pawan Hans Helicopters Limited (PHHL) has thirty
five helicopters and is planning to induct 20 more shortly and increas
ing
it further to 100 in the current Five Year Plan (2007 to 2012). The increas
e
in fleet is for inter- and intra-city circuits enabling faster travel.
Helicopters
are being hired for marriages, flower droppings, and even for
religious
 Emerging Trends in Tourism 485

tourism and the demand is rapidly increasing. Medical tourism will need
heliports to enable them to operate easily in extreme and remote locations.
Portable, cheap heliports like roof top heliports, portable helipads, landing
dollies etc. can be used in any terrain. The helicopter’s ability to take off
and land vertically without runways and its restricted seating capacity
are two of its biggest advantages. Helicopters can fulfill the need for
faster and uninterrupted travel because of the usually vast distance
between airports and business centres, along with high density, slow paced
traffic, and traffic jams. This results in the traveller spending the same
time taken for say a Delhi-Mumbai flight (two hours) to reach the city
from Mumbai airport.
To meet the need for trained pilots, PHHL has signed an MoU with
the Indian Air Force (IAF) allowing IAF pilots opting for premature
retirement to join PHHL. The Union Budget 2008-09 has removed
customs duty on helicopter simulators for training pilots.

Air Charters
Air charters are the fastest mode of transport available on short notice
with quickest accessibility to remote areas. The non-scheduled or charter
operations are growing at a phenomenal rate. The need for quick and
safe transport has instigated corporates to acquire their own aircraft and
helicopters or contact private air charter operators for their domestic
and international travel. Corporate giants can cover three to four cities
in India during a day and report to headquarters the next morning, saving
precious executive time. A new air charter service with 10 very light jets
(VLJs)—the Eclipse 500 is to be launched in India shortly and will enhance
business travel in India.

Airports
New age airports developed through PPP have brought about airport
modernization in India’s key metros. Green field airports have space to
generate non-aeronautical sources of revenue like retail. Private airports
developed on city outskirts are more spacious, offer shopping and dining
facilities, and help enhance passenger experience. Multi-nodal airports
are being planned for the convenience of passengers.

Redesigning Aircraft Cabins

Airlines are introducing incessant innovations to provide the ultimate in
luxury in their in-flight services. Some examples are as follows:
486 Tourism Operations and Management

1. Delta Airlines and master sommelier Andrea Robinson have

introduced a sophisticated wine programme and a new in-flight
programme revealing little-known travel tips called ‘local flavours’
which will help customers find the very best in travel, food, and
wine destinations. The new wine programme is one of the many
enhancements planned for its international business elite service.
2. Singapore Airlines, Delhi-Mumbai routes offer the following
comforts:
(a) Fully flat bed-cum-seats in first and business class.
(b) Travellers can access their seats without disturbing fellow
passengers, as a 1-2-1 seat configuration is used.
(c) Large comfortable seats, with furnishings and amenities
designed by French fashion house Givenchy.
(d) Economy class seats have been upgraded to provide personal
space and more legroom.
(e) In-flight entertainment with more than 1000 on demand
options and movies to suit the passengers’ tastes, have been
introduced.
(f) USB port is provided for business travellers.
(g) Crew members have undergone special training in customer
service.
3. Jet Airways has re-defined privacy and luxury with its new First
Class product—the first airline ‘suite’ in the sky, offering its First
Class customers additional privacy and luxury in the new Boeing
777-300 ER aircraft. Some of the features include dual sliding
doors, the world’s longest first class bed at 83 inch length, dining
for two, an eight point massage system, state-of-the-art
entertainment, extensive menu choices served on hand painted
Bernardaud porcelain, French Champagnes, and many more
celebrated brands.
Some interesting developments in aviation in the future include the
following:
India will require approximately 1001 planes between 2008-27.
India’s first 787 dream liner will be inducted in Air India’s fleet in
Q42009.
Congested skies in metros such as Mumbai and Delhi will clear up
by identifying newer domestic markets for international operations
and adding new city pairs domestically. .
 Emerging Trends in Tourism 487

* Smaller cities are likely to have more international airports.

¢ India has adapted point to point operations.
The aviation industry has tremendous future potential and with
additional and state-of-the-art aircraft, and innovative in-flight services,
there will be a need for trained staff and aviation training institutes, to
meet the growing demand for trained personnel in this sector.

E-passports
E-passports will be available to the general public from 2009 in India.
The new e-passport would include a chip inside the passport which would
have all information about the person travelling along with the person’s
finger prints. These passports are expected to simplify the process of
passing through checks and in reducing frauds.

TRENDS IN CATERING
Globalization has resulted in the mingling of cultures and food habits.
With the movement of chefs across the world and food shows on TV, the
traditional food service customer has a deluge of food options and is
ready to savor new gourmet opportunities. Fusion cooking has resulted
in recipes modified to suit the local palate and the adventurous customer
is constantly reaching out for new gastronomic experiences.
Better hygiene and sanitation is being followed in kitchens and Hazard
Analysis and Critical Control Points (HACCP) is becoming an important
norm for food safety standards. Food presentation and buffet table
decorations is being given more importance. Chefs are flamboyant and
extravagant, and at times loud. They do not hesitate experimenting with
new ideas. Display kitchens and more interactive and live cooking are in
vogue. More signature dishes are being prepared in honour of a guest
which may or may not be repeated. New cuisine themes are in vogue
and New World wines are gaining importance. Lounge bars, hookah
bars, and takeaway bars have become huge revenue earners.
Tourists look for different experiences and restaurant owners are
working on different, sometimes bizarre, themes to attract visitors. For
example, Belgium offers ‘Dinner in the Sky’ in a restaurant 18,000 feet
above the ground. The first ever undersea restaurant in the world was
opened at The Hilton Maldives Resort and Spa in 2005, offering diners
a 270 degrees panoramic underwater view of coral reefs five metres below
the waves of the Indian Ocean.
488 Tourism Operations and Management

NEED FOR TRAINED STAFF

Recognizing the need for skilled professionals in the field of hospitality

and tourism, many new institutes offering degree, diploma, and short
term certificate programmes in travel, tourism, and hotel management
are being set up. The Indian Association of Tour Operators (LATO) is set
to open its own travel and hospitality institute in Bhopal. The institute
will be a joint venture between IATO and the Madhya Pradesh Tourism
Department.
To bridge the gap between the existing course syllabus and the industry
requirement, extensive research is being carried out to design a programme
which will meet the present requirements.
One of India’s largest travel houses, Akbar Travels of India has
launched Akbar Academy which offers career courses in travel and
tourism.
Tourism will continue to develop at a rapid rate in future too, as long
as the human race exists, because any kind of movement is not possible
without the providers of tourism products and services.

ENVIRONMENTAL CONCERNS—GOING GREEN

We have read about the impact tourism has on the environment in
Chapter 14. This chapter covers what is being proposed in the future.
Some countries such as Sri Lanka are working towards a carbon clean
environment and are planning to track carbon emissions left by tourists.
Ecotels and ecotourism is being promoted in a large way and tourists
are selecting destinations and preferring hotels which follow
environmentally friendly practices.

Global Warming
Aviation contributes two per cent to world emission levels. Airlines are
reviewing and updating technology to reduce their carbon footprint.
Airlines can reduce their emissions by adopting the following measures:

Efficient aircraft
By investing in more efficient aircrafts and engines and in optimizing
operations. Some aircrafts can be retrofitted with technical devices at the
tip of the wings (winglets), new engines, and new surface treatments that
reduce drag or air resistance. Optimizing operations would mean
 Emerging Trends in Tourism 489

minimizing the number of empty seats flown by changing flight

frequencies, routes, and timetables. ICAO has published a catalogue on
‘operational opportunities to minimize fuel use and reduce emissions’.

EU emissions trading scheme

Under this scheme which started in January 2005, about 11,500 industrial
installations which are responsible for nearly half of all EU’s CO,
emissions are covered. Operators of these installations receive emission
allowances, giving them the right to emit a certain level of CO, per year.
If their emissions are expected to exceed their allowance, they can take
measures to reduce their emissions or they can buy additional emission
allowances, whichever is cheaper.
However, if their emissions are lower than their allowances, they can
sell their surplus allowances or save them to cover future emissions. This
scheme puts a cap on overall emissions from these installations and creates
awareness about this problem.

Use of solar energy

The IATA has become an institutional partner of Solar Impulse, the solar
airplane that is scheduled to fly around the world without fuel and zero
carbon emissions. The first test flights are scheduled for early 2009 and
in 2011 the CEO of IATA and President of Solar Impulse are planning to
fly around the world with five stopovers in a single-seater plane. The
plane will fly by day and night, and will be propelled by solar energy
only. IATA will assist in air traffic control clearance for this project.
IATA aims to achieve zero carbon emission technology within the
next 50 years. At present two per cent of global carbon emissions are
from the aviation industry. Research into alternative fuels and aircraft
design can also help in minimizing carbon emission.
IATA’s four pillar strategy to address global warming are as follows:

. Invest in new technology

. Fly planes effectively
. Build and operate efficient infrastructure
WN
— . Encourage improved fuel efficiency and a reduction in CO,
emissions by giving positive economic incentives

IATA has set a target to improve fuel efficiency by 25 per cent by

2020. ICAO has endorsed the strategy and the target set, at their assembly
in September 2007.
490 Tourism Operations and Management

GOVERNMENT INITIATIVES FOR TOURISM

To promote domestic tourism, the Union Government has relaxed its
LTC rules for central government employees to travel to the north eastern
states of the country. Central government employees are permitted the
use of private airlines, many of which offer low fares, while availing LTC,
with the provision that the reimbursement would be restricted to the
entitled class by train. Group A and B categories would be entitled to
travel by air from their place of posting to a city in North Eastern Region
(NER) while other categories could avail this facility from Guwahati or
Kolkata. This move by the Centre will certainly help to promote tourism
in the NER as the central government officials form a large section of
the market. The NER is expecting an increase in tourists during Diwali
and winter vacations.
Indian Railways Catering and Tourism Corporation (IRCTC) has
launched the Mahaparinirvan Express, a nine-coach, air-conditioned train
from Chennai on a 15-day Buddhist circuit of key sites associated with
Gautama Buddha. The passengers will travel by night and go sightseeing
by day in special buses. The train will halt at Guntur, Aurangabad, Bhopal,
Agra, Delhi, Gonda, Gorakhpur, Varanasi, Gaya and Bhubaneswar.
The tourism industry is changing constantly to include new markets,
innovative products, and untouched destinations where the sky is no
longer the limit. Newer and developing technologies are enabling
travellers to venture into outer space or traverse the ocean floor for a
leisure trip. The market today, unlike the market of the past includes all
humans giving them the right and freedom to travel and express
themselves while tourism professionals develop special packages for
events and activities of their interest. The government’s involvement too
in tourism related activities is increasing as the benefits to the economy
can be tremendous, and newer forms of tourism will be seen.

SUMMARY
The tourism scenario is changing at an unimaginable pace with more number of
people taking to holiday breaks or moving away from there usual place
of work
to take up new assignments. The UNWTO has forecast a Tourism 2020
Vision
which shows a growth in international tourism and environment
consciousness
in the tourist.
While the number of tourists is on the increase there is also stiff competi
tion
amongst the principal service providers, with each one trying to
out do the
 Emerging Trends in Tourism 491

other in terms on innovative offerings. In India, the growth of tourism has

been rapid during 2001-06 and a target of 10 million arrivals by 2011 is expected
to be achieved. State governments are drawing up tourism policies for increasing
tourist activity in their state. The government is offering tax incentives to
promote private investors to develop tourism and invest in hotels, amusement
parks, convention centres, etc. through PPP projects.
While new types of tourism are emerging, the industry is opening its eyes to
the need for the disabled and elderly traveller. Tours to outer space and
accommodation underwater, visits to dark, dismal, and disaster struck sites to
view the aftermath, to offer assistance or pay homage to the departed souls are
newer future forms of tourism.
The trends in the industry reveal strategies to outlive competition, gain
power, and cut unnecessary expenses. Mergers, acquisitions, alliances,
consolidation, public-private partnership, joint ventures, and disintermediation
are some of the trends. There has been a marked change in the distribution of
tourism offerings. With the advent of information and communication technology,
the customer has direct access to the service providers, reducing the role of the
travel agent. The present travel agents feel threatened because of talks about
decommissioning and the presence of OTAs who are taking over a major share of
reservations. They have become popular because booking tickets for airlines,
hotel reservations, and renting cars has become a simple three step process
carried out by the click of a button.
The GDS is a computer reservation and information system that is often
operated by multiple airlines and used by travel agents for booking airline
tickets, insurance, hotel reservations etc. It connects the principal suppliers
and the travel agents, i.e. it links all parts of the distribution chain.
The aviation industry is growing at a rapid pace, offering affordable flights
via low cost carriers to the middle class and upgrading facilities in the business
and first class to offer a unique innovative tourist product. While the tourist as
well as the industry are becoming environment conscious, airlines are seeking
measures to reduce carbon emissions and accommodations are using ecofriendly
measures to reduce global warming.
The future trends are going to be as imaginative as the mind wanders and as
bizarre as is acceptable to society.

KEY TERMS
Baby boomers People born in the USA during the ‘baby boom’ years of 1946-
64. As people in this age group show greater inclination to travel, they are
expected to provide a boost to demand for travel and hospitality-related
services.
492 Tourism Operations and Management

Computer reservation system (CRS) A CRS for an individual airline containing

information on that airline only and used by employees of that airline.
Global distribution system (GDS) A GDS is global distribution system for travel
products such as tickets of different airlines, various hotel rooms, car rentals
etc. It is used for checking the availability of services, processing reservations,
making changes if necessary, and ticketing. It contains information on all
types of travel products.
Green field airport An airport built on undeveloped land usually outside a city,
built from scratch on a new site. For example, the Hyderabad Airport.
Interface An interface is a pictorial representation offiles, date and programmes
stored in the computer on the computer screen.
Internet The Internet is a world wide network of computer networks which are
linked to each other through telecommunication links.
Long haul journey Journey where travel time exceeds six hours.
Multi-nodal airports Help ease congestion and improve passenger experience
(with train connectivity) as seen in international airports like Changi Airport,
Singapore.
Pro rata According to the calculated share or proportionate share.
Search engine Search engines are applications, such as Google, Yahoo, etc.
that facilitate searching for information on the world wide web. To search
for information, a key word needs to be typed.
World Wide Web World Wide Web is part of the Internet and has been developed
so that information can be easily accessed from the Internet.

CONCEPT REVIEW QUESTIONS

1. Define the following:
(a) Disintermediation
(b) Decommissioning
(c) Computer reservations system
2. What measures are airlines proposing to cut costs in view to the spiralling
aviation turbine fuel prices?
3. What are the new innovations in in-flight services in the business and first
class?
4. Discuss some of the schemes offered by the government to promote
domestic tourism in India.
5. Discuss the trends in the food and beverage industry.
6. Explain the significance of the following:
(a) Public-private partnership
(b) Horizontal integration
(c) Global distribution systems
 Emerging Trends in Tourism 493

“RITICAL THINKING QUESTIONS

1. Discuss the major technological developments that have influenced the
distribution system in tourism.
2. Do you think there is a need to have a tourism policy? Who all in your
opinion should be part of the policy formulation team?

REFERENCES
Andrews, Sudhir 2007, Introduction to Tourism & Hospitality Industry, McGraw-
Hill Co.
Express Aviation World January 2008. Supplement to Express Travel World.
Express Travel World, Indian Express Newspapers (Mumbai) Ltd November 2006
(Vol. 1/No. 12) January 2008, February 2008, March 2008 (Vol. 3/No. 4)
June 2008, July 2008 (Vol. 3/No. 829), August 2008.
George, R. 2007, Managing tourssm in South Africa, Oxford University Press
Southern Africa, Cape Town.
Hospitality, Pub, The Institute of Hospitality, 82 Surrey Issue 7, September/
October.
International Travel and Tourism Training Programme 2007, Foundation Course
Text book, 5.8 Edition, Montreal, Geneva.
Keyser, H. 2002, Tourism Development, Oxford University Press Southern Africa,
Cape town. '
Medilik, S. 1996, Dictionary of Travel, Tourism and Hospitality, Butterworth-
Heinemann, Oxford.
Pune Mirror 8 September 2008 page 4, The Times of India, Publication.
Tourism Policy of Maharashtra 2006.
www.spacetourismsociety.org, accessed on 12 September 2008.
www.wikipedia.org, accessed on 12 September 2008.
www.jul.com, accessed on 12 September 2008.
www.info.hktdc.com, accessed on 12 September 2008.
www.wikipedia.org/wiki/winetourism, accessed on 5 January 2009.
www.wikipedia.org.dark_tourism, accessed on 5 January 2009.
www.wikipedia.org.shock_tourism, accessed on 5 January 2009.
www.indianholidays.com, accessed on 5 January 2009.
www.tourismthailand.org, accessed on 5 January 2009.
www.sustrans.org.uk, accessed on 5 January 2009.
www.books.google.co.in, accessed on 5 January 2009.
www.eturbonews.com, accessed on 5 January 2009.
www.filmtourism.blogspot.com, accessed on 5 January 2009.
www.wikipedia.org/wiki/LGBT_tourism, accessed on 5 January 2009.
www. bravenewtraveler.com, accessed on 5 January 2009.
www.ecotourism.org, accessed on 5 January 2009.
494 Tourism Operations and Management

APPENDIX 16.1

Let us have a look at the Tourism Policy of Maharashtra 2006.

TOURISM POLICY OF MAHARASHTRA 2006

The Maharashtra Tourism Development Corporation (MTDC) has realized the vast
tourism potential of the state and the need to attract foreign visitors who land
in Mumbai and do not visit other places in Maharashtra. Under the slogan
‘Maharashtra Unlimited’ the state has prepared an action plan for five years
(2007 to 2012) which includes the following:
Development of infrastructure at tourist destinations with the help of the
private sector and giving them tax incentives.
Proper approach roads to increase accessibility to tourism destinations with
rail and air linkages for important destinations and wayside amenities.
Development control regulation at destinations.
Strengthening of bed and breakfast schemes in remote areas where hotel
accommodation is not available. This scheme has a twofold purpose—it
creates facilities for tourists specially those interested in rural tourism and
is a source of revenue for the locals.
Recreational facilities at destinations with a view to encourage day visitors
to stay overnight.
Developmental projects under public-private partnership at selected
destinations.
Identification of new World Heritage Sites and conservation and development
of Ajanta, Ellora and Elephanta caves, and Chhatrapati Shivaji Terminus.
Maharashtra’s rich culture and tradition in the form of folk art, folk dances
and folk songs, festivals and local cuisine would be identified and the artist
and their troupe would be registered on the tourism portal, to promote
cultural tourism.
The handicraft industry would be promoted by identifying and training the
artisan, and promoting their crafts through bazaars and haats.
To develop pilgrimage circuits in the state.
Rural tourism, agricultural tourism, and wine tourism will be promoted in
appropriate areas.
Fort/fort circuits of historical significance and architectural excelle
nce will
be developed and conserved.
Application of information technology for tourism.
Information kiosks to be set up at entrance terminals of important
airports,
railway stations, interstate bus terminals, and prominent places with
online
booking systems.
 Emerging Trends in Tourism 495

Creating awareness about tourism as an activity, preserving our environment

and safety measures.
Providing tourism police and other safety and security measures specially
for beach tourism.
Training and capacity building of service providers will be carried out in
coordination with the ‘Athiti Devo Bhava’ programme of the Central Government.
Formation of a committee for coordination and monitoring of development
and creation of a special task force.
Thorough organizational review of the various departments of MTDC keeping
the developmental needs in mind.
Nodal office in New Delhi to help in liaisoning, marketing, and promotion of
Maharashtra’s tourism product like Deccan Odyssey, etc.
Single window clearance system for new projects.
Developing a mechanism to collect tourist statistics.
Evaluation and outcome budgeting for each department and avoiding bad
investments by undertaking feasibility studies.
The following units are eligible for incentives under the Tourism Policy 2006
with effect from 1 November 2006.
Hotels, heritage hotels, resorts and health farms, health and wellness spa,
and units registered under the bed and breakfast scheme of MTDC
Motels and wayside amenities
Apartment hotels/service apartments
Water sports and amusement parks
Arts and crafts villages
Golf courses
Camping, caravanning, and tent facilities
Anal ropeways
Convention centres
Development of hill stations
Adventure tourism projects
Houseboats
Ecotourism projects
Museums and aquariums
Projects approved by classification committee of the Tourism Department
of the state government or Government of India

Tax Incentives Offered

The following tax incentives are under the tourism policy for Maharashtra:
Tax exemption will be available to new units and expansion of existing units
(as per the conditions set out earlier) in respect of the following taxes, up to
496 Tourism Operations and Management

100 per cent of capital investment or completion of the eligible period of five,
seven, or 10 years, whichever is earlier. The tax exemption will be available to
eligible units falling within the eligible areas for a period of five, seven, and 10
years respectively for A, B, and C areas. Refer to Fig. 16.4 for financial incentives
for the promotion of tourism in India.
The certificate of entitlement and the eligibility certificate shall automatically
stand cancelled on completion of the above period or the limit prescribed for
eligible investment.

List of taxes
1. Total exemption from luxury tax (as applicable to hotels) for a period of
seven and 10 years depending on the location of the tourism project in
the B and C zones respectively and 50 per cent exemption for a period of
five years in A zone. Refer to Table 16.1 for the different zones.
2. Total exemption from entertainment tax/amusement tax for a period of
five, seven, and 10 years depending on the location of the tourism project
in the A, B, and C zones respectively.
3. Total exemption from stamp duty for the projects located in B and C zones
and 50 per cent exemption from stamp duty for projects located in A zone.

Exemption of
entertainment
tax

Interest Concession
incentive to on
SSI's stamp duty

Tourism
Incentives
Central = "———__- Exemption
transport
of
subsidy Vy. \ central excise

Concessional Subsidy on
industrial capital
package investment

Fig. 16.4 Financial incentives for tourism and entertainment offered

by the government with a view to promote tourism in India.
 Emerging Trends in Tourism 497

Table 16.1 Designated tourism areas for availing tax incentives

Area (as proposed in Investment Employment

Tourism Policy 2006) (Rupees in crores) generation
Zone A Mumbai and its suburbs, Navi Mumbai,
Thane, Pune, and Pimpri Chinchwad
municipal corporations 100 500
Zone B All municipal corporations except
areas in Zone A and A class municipalities 50 300
Zone C All districts of Maharashtra except
areas in Zone A and Zone B

Electricity concessions
Electricity duty will be levied at industrial rates for the respective period.

Other concessions
1. Seventy five per cent exemption from registration charges and 50 per cent
concession from payment of permit charges for sightseeing buses registered
as such as approved by the transport authority, having minimum seating
capacity of 25 seats and operating in Municipal Corporation areas and hill
stations.
2. Total exemption from property tax and non-agricultural tax to all tourism
projects run/owned by MTDC.
3. The water rate/tariff shall be levied at maximum industrial rate.
4. Property tax shall be charged at residential rate.

No development zones
Many tourism areas can attract a number of foreign as well as domestic toursts
provided suitable areas/plots can be offered to such projects. As government
has allowed IT activities in no development zones (NDZ), tourism activities
such as entertainment centres which include small golfing facilities, tourism
villages, handicraft displays with no extra FSI should also be considered in
the NDZ.

Renewal of licences
Tourism projects require various licences and clearances like lodging house licence,
eating house licence, Police permissions, licence under the Shop and
Establishment Act, licence under the Food and Drug Administration Act, etc.
These licences have to be renewed every year. By this Policy 2006, these licences/
498 Tourism Operations and Management

permissions will require renewal every five years instead of the present annual
renewal.

Mega Project
Tourism was given the status of industry in 1999. The Cabinet has recently
approved a policy for mega projects in the industries sector. Since tourism is
also regarded as an industry, and has the greatest employment generating
potential, a policy similar to the policy for industrial mega projects, is proposed
for the tourism sector.
The tourism sector is an employment intensive sector. A single room in a
three to five star hotel creates nine direct employments and 18 indirect
employments. Moreover, apart from the skilled, even the unskilled, and semi-
skilled can be absorbed in the tourism sector.
Considering the above, it is proposed that the benefits/incentives of ‘mega
project’ as envisaged by Industry Department, should be made available to
tourism projects also.
Apart from the incentives mentioned above, the Government of Maharashtra
has declared additional incentives to promote tourism in the rural and backward
areas of the state. See Fig.16.4 for various incentives offered.
One of the problems in tourism development is the non-availability of
encumbrance-free land for the purpose of tourism. A potential investor in the
industrial sector gets industrial land as per his choice in the various industrial
areas developed by the Maharashtra Industrial Development Corporation (MIDC).
The MTDC does not have a similar pool of land available with it. Similarly the
MTDC does not have powers of land acquisition like the MIDC. Therefore the
tourism potential at many places remains unexploited or exploited haphazardly.
It is, therefore, proposed to bring an investor-friendly land policy for tourism
on the lines of the industrial policy.

MTDC’s Mahabhraman Programme

MTDC is actively working on promoting the untapped destinations around the
state and is working along with travel agents and service providers like hoteliers,
resort owners, adventure tour operators from the untapped regions under
the
title of ‘“Mahabhraman’. The project also aims at attracting and retaining
the
large number of business travellers who use Mumbai as a stopover destinati
on.
This programme is a public-private initiative to promote tourism
in the
state. For example, the Tapola River Camp is one of the five properties owned
by
Nature Trails Resorts and is part of the MTDC’s Mahabhraman. Mahabh
raman
also helps new travel companies to get the required permissions and
licences.
Other state tourism boards also are set to overhaul existing propert
ies and
are laying emphasis on responsible tourism.
 Index

Accessibility 15 American Society of Travel grooming standards 380

Accommodation 15, 74, 75, Agents 140 product knowledge 386
469 Archaeological Survey of sales process 388
bed and breakfast 81 India 150 sources of information 387
important facts 74 Attraction development 443 telephone skills 383
shortfall in tourism 469 development strategy 445 Customers 378
supplementary 80, 89 principles of 443 customer relations 380
types of 75 Attraction planning 436 customer satisfaction 379
Activities 16 cost-benefit analysis 447 external customers 378
Affordability 16 feasibility analysis 446 internal customers 378
Air India 95, 483 levels at which plans are Customs regulations 217
booking 97 prepared 441 declaration form 256
express 96 need for 438
flying returns 94 planning process 439 Demonstration effect 415
holidays 98 Destination 6
Attractions 16, 83
international routes 95 infrastructure 70
classification 83
National Aviation most visited countries 9
types of 83
Company 95 Distribution channels 165, 478
services 95 the GDS network 472
Basic travel quota 223
Airline geography 262 Tourism Distribution
major airline routes 271 Systems 470
Camping grounds 81
physical geography 263 Duty-free shops 235
Car rental 105
Airlines 92
Caravans 81
air charters 485 E-passports 487
Carrying capacity 67, 420
baggage specifications 99 Economic impacts 399
factors affecting carrying
budget 125 leakages 403
capacity 423
chartered flights 125 the multiplier effect 404
Citizenship 194
classified 93 Emerging trends in
Codes in tourism 272 tourism 458
code sharing 126
airline codes 273 dark tourism 466
commercial 92
country codes 273 developments in
domestic 126
currency codes 274 aviation 482
fare class 103
important disaster tourism 467
frequent flyer
programmes 94 abbreviations 275 emerging types of
international air travel some city and airport tourism 462
classes 102 codes 272 extreme tourism 467
low-cost carriers 484 Cruise liner 107, 118 heritage walks 464
private 102 luxury liners 33 national trends 477
security 99 Customer service skills 376 niche tourism types 467
types of 93 complaints 393 perpetual tourism 466
Amenities 16 first impressions 382 space tourism 464
500 _ Index

spiritual tourism 464 Mayan civilizations 26 Mahaparinirvan Express

trends in catering 487 modern 35 490
trends in the aviation 481 prehistoric period 22 Industrial Revolution 31, 38
underwater tourism 465 Roman empire 25 Intermediaries 164
virtual tourism 466 the Imperial Era 24 International Air Transport
Emigration 223 the Industrial Era 31 Association 93, 134
Environmental impact 406 the Silk Route 28 IATA areas of the world 270
assessment 426 the World Wars 34 International Civil Aviation
concerns 488 vedic period 23, 24 Organization 93
global warming 488 Hospitality 6 Interpretation 88
pollution 408 Hotels 76 IOSA 126
positive impacts 410 apartment 76 Itinerary 18
use of solar energy 489 boutique 78 Goa 321
Escorts 186 capsule 78 Golden Triangle tour 318
chains 35, 88 planning 301
FAM tour 38, 361 commercial 77 Pune Darshan city tour 321
need for 362 floating 77 segments 298
Federation of Hotel and floating luxury hotel 464 Itinerary planning 296
Restaurant Association of heritage 78 basic information 299
India 154 international 76
basic steps 307
Food and beverage 82 residential 76
outlets 82
calculation ofatourcost 312
transit 78
Funicars 124, 126 costing of atour 306
Hovercrafts 118
resources 304
Hydrofoils 118
Global distribution
systems 472 Immigration 223 Leisure 18
Grand Tour 30, 38 Impacts of tourism 398 Limits of acceptable change 425
Guides 186 measures to regulate tourism Luxury tourist trains 107, 115
impacts 420 Deccan Odyssey 116, 324
Health regulations 214 India Tourism 141 bairy Queens 15.323
compulsory central government initiatives Palace on Wheels 116, 325
vaccinations 215 for tourism 490
health questionnaire 255 functions 145 Maharashtra Tourism
Historical monuments 449 government 469 Development Corporation
managing a large measures taken by 469 149
monument 450 India Tourism Development Mahabhraman
History of travel and Corporation 146 programme 498
tourism 20 Indian Airlines 99 tax incentives offered 495
advent of technology 32 Alliance Air 99 tourism policy of
caravanserai 38 network 99 Maharashtra 494
civilization 23 special fares 100 MICE 55
developments 21 Indian Association of Tour infrastructure required 56
early civilizations 22 Operators 153 Motel 79, 89
European Renaissance 29 Indian Railway Catering and
important milestones 36 Tourism Corporation 112 Non-government organizations
Indus Valley 23
vs}

160 157
 Index 501

Ocean liners 107 Special interest tourism 61 receipts 9

Online travel agents 171, 474 Special permits for restricted regions 7
areas 216 responsible tourism 429
Pacific Asia Travel Association State Tourism Development significance 9
138 Corporation 35, 147 Tourism Finance Corporation of
Package tours 182 Sustainable tourism India 149
components of 184 development 426 Tourism industry 2, 7, 18
types of 185 benefits of sustainable constituents 8
Passenger mile 39 development 428 growth 10
Passport 193 sectors 7
application 237 Taxes 224 Tourism infrastructure 70, 89
definition 195 airport taxes 225 aspects 71
documents required 200 port taxes 226 catering services 82
other documents required to Terminals 73 essential services 86
passa port 197 airways 73 other services 87
services offered by the parking areas 74 telecommunications 86
passport office 201 railways 74 Tourism laws 431
tatkaal scheme 203 roadways 74 Tourism marketing 344
types 197 waterways 74 definition 346
Pawan Hans Limited 101 Theme parks 452 market segmentation 348
functions 102 Thomas Cook 39, 166, 182 marketing mix 354
helicopter travel 484 Timeshare apartments 79 marketing of services 360
Phonetic alphabet 385 Tour brochure 370 marketing research 363
Pilgrimages 21 Tour operator 164, 180 seasonal marketing 369
Political impacts 419 types of 181 Tourism organizations 35, 129
Product life cycle 352 Tourism 3 government organizations in
Public—private partnership 481 alternative forms 60 India 141
changing scenario 459 international
Railway 73 definitions 5 organizations 131
retiring rooms 81 domestic 5, 18 levels of organizations 130
Recreation 18 evolution 21 need for 131
Recreational vehicles 106 five ‘A’s 15 other important tourism
Renaissance 29, 39 forecasting 367 organizations 159
Resorts 79 important facts 15 private sector organizations
Roads 73 inbound 6, 18 inIndia 151
network 73 India—post Tourism product 330
independence 34 characteristics of 333
Seasonality in tourism 368 inter-disciplinary definition 331
SMERFS 461 perspective 13 levels 331
Sociocultural impacts of tourism international 6 nature of 338
412 legislation 430 types of 338
cultural impacts 416 mass 18 Tourism system 12
culture and authenticity 417 meaning of 3 external environment 12
impacts on society 413 outbound 6, 18 Leiper’s basic tourism
tourist—host relationships planning 437 system 14
412 purpose of 42 systems theory 12
502 Index

Tourist 4,5 departments of 172 health tourism 57

business 4 functions 171 leisure or holiday tourism
excursionist 5 role of 172 44
leisure 4 principal suppliers 168 medical tourism 59
product 18 setting up 176 religious tourism 51
transit 6 sources of income 177 rural tourism 63
traveller 6 types of 168 senior citizen tourism 64
visitor 5 Travel agent 164 space tourism 66
Tourist attractions 10 ground handler 185 sports tourism 50
world rank 10 responsibility of travel agent visiting friends and relatives
Tourist transport 91 198 46
air transport 107 Travel Agents Association of wildlife tourism 65
at the destination 124 India 151
Travel formalities and United Federation of Travel
automobile
associations 108 regulations 192 Agents Association 136
caravan 38 arrival card 257
Vayudoot 101
coaches 105 departure card 258
Visa 204
mass transit 72 Travel industry trends 478
refusal 213
other forms 106 consolidation 480
requirements for 212
permits 109 disintermediation 478
requirements for some
public transportation 72 integration 479
popular destinations 242
rail transport 107, 109 Travel Information Manual 206
types of 209
road transport 104, 106 Travel insurance 226
Visitor and traffic management
vehicles 72 proposal form 259
424
water transport 107, 117 Travel motivators 43
Tourists with special needs 462 categories 44 World time zones 265
Toy train 107, 114 Types of tourism 41 Daylight Saving Time 266
Transport 92 adventure tourism 48 International Date Line 268
earliest forms 91 business tourism 54 scale of hours 266
modes of 92 cruise tourism 463 World Tourism Organization
Travel 21 cultural tourism 46 12
purpose of 21 ecotourism 62
Travel agency 168 ethnic tourism 64 Youth hostels 81
 OPERATIONS AND MANAGEMENT

Tourism Operations and Management isa comprehensive textbook, designed for students of
hotel management and tourism. The book explores core concepts of tourism ae explains them
_ through numerous examples, illustrations, tables, and photographs.
Beginning with an introduction to the travel and tourism industry, the book goes on to discuss
various types of tourism, tourism infrastructure, telecommunications, tourist transport, EYare|
Indian and international tourism organizations. The book explains how to set up travel agencies
and tour operations and their role in the tourism industry. Key topics, such as tourism product,
tourism marketing, customer service skills, economic, environmental, sociocultural, and political
i}ag)oy=(el emo)macolUla tan per-lavemole-Valaniace managing, and developing a tourist attraction are discussed at
length. The emerging trends in tourism, such as GDS, e-ticketing, and web marketing are also
explored.
Practical @perational aspects such as those related to travel regulations, airline geography, and
itinerary planning are also discussed. With its practice-oriented approach, the book would also be
useful to practitioners such as travel agents‘and tour operators, besides students.

Key Features
® Explains important concepts of tourism operations and management through industry-related
examples, formats, and photographs.
@ Includes topics such as travel formalities and regulations, customer service skills, tourism
marketing, impact of tourism, and emerging trends in tourism.
™ Covers operational areas such as setting up travel agencies and tour operations and planning
itineraries.

Sunetra Roday is a senior faculty member at the Maharashtra State Institute of Hotel
Management & Catering Technology (MSIHMCT), Pune. She has a master’s degree in tourism
management and has a teaching experience of over 25 years. She is actively involved in
consultancy projects and curriculum development of the travel and tourism prograinine: FYavelll ately
travelled widely in India and abroad. She has published a number of books.
Archana Biwal is a faculty member at MSIHMCT, Pune. She has six years of teaching experience
and four years of industry experience in a travel agency.
Vandana Joshi is a faculty member at MSIHMCT, Pune. She has six years of teaching SAPSNIENGe
and over four years of industry experience. She is a certified guide trainer.

ISBN 0-19-806001-7

OXFORD
UNIVERSITY PRESS SMI $806001 7

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