Category: Tourism

How Travel Agencies play an important role in tourism development.

The purpose of the Article  is to underline the role of Travel Agencies in sustaining tourism development in India. The main objective of the article is to investigate the customer market practices of travel agencies in India and to make recommendations regarding the improved application of the principles of relationship marketing to the customer market of travel agencies in the province.

Complex, dynamic and competitive environment has posed many challenges to travel agencies regarding maintaining competitive advantages and it is imperative that the Travel agencies must have the marketing dynamic capabilities to quickly respond the changes taking place in the market. Based on the theory of marketing dynamic capabilities and the problems being faced by the travel agencies. Travel agencies are expected to be able to advise travelers about their destinations, such as the weather conditions, local ordinances and customs, attractions, and exhibitions. For those traveling internationally, agents also provide information on customs regulations, required documents (passports, visas, and certificates of inoculation), travel advisories, and currency exchange rates. The travel agencies play an important role in tourism development. CRSs and the internet offer travel agents tremendous opportunities to package holidays flexibly, according to the specific needs and preferences of each customer.

Travel agencies operating both locally as well as nationally and internationally, should be encouraged to provide tourism products in the county. For travelers, the internet allows direct communication with tourism suppliers facilitating requests for information, and allowing services and products to be purchased at any time and any place. Travel agencies as the major intermediaries in tourism are faced with a significant challenge. With the social and economic development and people’s living standards, travel service become a popular leisure time has come. Travel agencies are very sensitive services company because the customer wants the high quality of services to enjoy their travel. With the social development, tourism has become one of the industries with strongest development momentum and largest scale in global economy. Industry position and economic function of tourism in urban economic development strengthened gradually and function of pulling urban economy, driving social employment and promoting the culture and environment showed gradually. Historically booking travel was largely the scope of travel agents who had specialized systems and the connections to book the travel as well as accommodations. They also made the effort to know destinations so could make recommendations for their clients. While travel agents are still active and still provide value, much of what agents have done can be done by individuals sitting at their computers, and now travel related commerce accounts for a large percentage of Ebusiness.

The development, maintenance and strengthening of a relationship with customers will depend on the customers’ perception of the importance of key relationship dimensions. These dimensions will eventually influence the relationship learning of customers towards the establishment of a long-term relationship with the business.  It becomes important for travel agencies to implement customer marketing strategies based on the customers’ experience with the travel agency through their level of relationship commitment, product quality and service delivery.

Introduction of Dynamic Packaging Technology

Expedia, the first online service provider, was founded in the U.S. in 1996; and started to offer flight, hotel and transfer service over internet. However, the sales boom was reached upon the introduction of dynamic packaging technology. The company, today, continue its operations over 30 countries.

Dynamic packaging helps online tour operators, travel management companies and other traditional travel companies to sell online. Airlines, hotels and tour operators benefit greatly from dynamic packaging technology.

In our contemporary world, internet has been an essential part of our daily life. Internet has also proven itself within the tourism industry recently. The latest development of the internet application in the tourism industry is dynamic packaging applications. The dynamic packaging application which presents opportunity to travel agencies to supply various holiday packages to the consumers in real time provides a competitive advantage. Today, consumers’ demand have changed.

They prefer preparing their own holiday packages to purchasing predetermined holiday packages because they want more personal holidays and think that current pre-determined packages are not flexible enough .More consumers require more individualized, flexible and selectable holiday programs and discover travel products of the online world. One of the arms of the semantic web can be found in the tourism industry as dynamic packaging applications.

Dynamic packaging is one of the most important innovations of online travel agencies. The application was first started by the Expedia; and today it is adopted and applied by many online travel agencies. Dynamic packaging provides consumers to reach multiple services with a single search. Thus, consumers can get lower price than they purchase each independent component individually. At the same time dynamic packaging provides suppliers to hide their discount rates. When we look at the customization feature, there are some customization options in three web sites.

Customers can determine destination or multiple destinations, departure and return dates, departure and return times, non-stop or refundable flights, round trip or one way trip in Expedia. In Travelocity, customers can determine destination, round trip or one way trip, departure and return dates, departure and return times, class of flight and airline alternatives. Customers can also determine destination, departure and return dates, departure and return times, non-stop flights and hotel name in Orbitz.com In today’s world where consumers are far more educated than they were several years ago, the travel industry’s future lies in a customer-driven mix of packages, individual products and self-organized travel. In the last few years, the travel industry has been buzzing with a sizzling new phrase “Dynamic Packaging”. Dynamic packaging helps provide a single, fully priced travel package that hides the price of the individual travel components.

It helps airlines, online travel agencies and tour operators to tap into different supplier systems in real time and bundle travel components (air, hotel, car, entertainment) into a single reservation. This is a seamless process which allows the user to choose from a huge range of travel and associated products from multiple vendors. A rules engine is used to configure and manage the different travel products that can be bundled and priced. These technological developments and changing consumer demands have brought several innovations in the travel industry.

One of these innovations is dynamic packaging application. By means of dynamic packaging application, travel agencies can offer real-time, customized, flexible and secure travel alternatives. On the other side,  consumers are able to plan their travels and to make reservation through dynamic packaging applications. Heterogonous data regarding holiday can be gathered through dynamic packaging application so the consumers’ private needs can be meet. Worldwide, it is possible to talk about existence of travel agencies which apply dynamic packaging system. In this Article, Expedia.com, Travelocity.com and Orbitz.com travel agencies’ dynamic packaging applications were investigated. In dynamic packaging applications, choice, customization, flexibility, security and real time features must be found. These characteristics are the main specifications of the dynamic packaging applications distinct from traditional travel packages. As tour operators and vacation packagers continue to understand the value of implementing dynamic packaging technology, travel consumers are reaping the benefits. Travel consumers can now opt to customize vacations rather than accepting pre-packaged alternatives. Empowered travel consumers are exercising more control over their vacations. Dynamic packaging is thus, the most cost effective way for travel distributors to package, distribute and sell vacation products today.

The Travel agencies services and about using Internet for planning a trip.

The purpose of the Article is to investigate young tourist’s behavior in planning a trip, to understand how young people make decisions when they decide to go on a trip, in their country or in a foreign country, the process of searching information and their opinions about travel agencies services and about using Internet for planning a trip.

The role of the tour operator is to essentially sell accommodation, transport, activities and transfers in a combined all-inclusive package. The travel industry is highly structured, and businesses within the industry tend to specialize in one or a small number of functions driven by their core business. Understanding the structure of the travel trade is important for a company in developing its core business strategy, making marketing decisions, and investing for growth. Travel agencies are perhaps the most visible companies in the travel trade. Their primary businesses is to resell accommodations, transportation services (including airplane and train tickets, car and bus transfers) individual services including guide and translator services, and package services such as sightseeing tours. Within each agency, there is often a focus on either inbound or outbound trade, with the outbound agencies focusing either on ticketing services and accommodation bookings, or on package holidays. Travel agencies generally serve a mix of long and short haul markets, although some specialize in long haul markets. Outbound tour operators create and market travel products to customers in their own markets that are usually long haul travelers seeking a specific experience in a foreign destination. Inbound tour operators create and market travel products and services to customers mainly in long haul markets. Customers in countries far away generally do not have in depth knowledge of a destination or the service providers in that destination, may not speak the  language, and may not feel comfortable making their own arrangements. The nature of travel agency business is to provide holiday-related services such as ticket booking, transfer arrangement, hotel room booking and arrangement of ground transportation, venue selection and booking for MICE activities. The scope of business of travel agents was narrow and confined to selected services. Moreover, the business was managed with small investment. It was risky business as it was depending upon the natural and socio-political along with cultural factors. A number of restrictions were imposed by the government on travel agents and tour operators for entry into tour operation business. Tour operators had no choice, but to deal with other problems like confirmation of hotel rooms, safety in travel, quality of foods, travel documents, volatile political system, language differences, cultural differences, cumbersome and tedious travelling, long journey, etc. The history of professional travel agency business started with a day-long excursion tour for his 570 friends in the Temperance Society from Leicester to Loughborough in 1841. He took the services of the British Railway. All his friends were charged one shilling for this excursion. That excursion tour was accompanied with a band to play typical hams and a picnic lunch of hams along with the afternoon tea for refreshment. Tourism involves the movement of people. That movement might either be within their own countries – which is called “domestic tourism” – or to and from other countries – which is called “international tourism”. In recent years, rapid advancements in information technology, particularly the Internet, have created enormous opportunities for traditional travel agencies to target their tourism offerings to a wider market. In response to the increasing demand for tourism information by the travelers, many travel agencies have established websites to promote their services and products. These websites plays an important role in mediating between customers and companies as a channel for information acquisition and business transactions. Recent developments in information technologies , in particular the popularity of the Internet in the early 1990s,have changed the way that tourism businesses communicate with its customers and the way that promotion and sales of tourism products are conducted. Tourism represents a unique segment from the business environment because the services achieved cannot be tested before the purchase. Travelers have to believe the indirect or virtual experience. This is why the way you present the travel destinations is one of the most important success factor. Potential travelers can choose between contacting a travel agent or going online when planning a trip. Travel agents are having quite a success in creating professional catalogs and brochures, where consumers can find important and well selected information combined very well with nice photos, useful tips and tricks, guiding maps and so on. Travel Agents vs. Online Booking: Tackling the Shortcomings of Nowadays Online Tourism Portals represents a qualitative study that aimed to identify the reasons that lead many consumers still rely on traditional travel agencies instead of booking their trips through Internet.


My name is Vikas Acharya and I am a freelance writer, ghostwriter, Blogger and Travel writer. Click here to find out how I can help you create high-quality blog Articles,  contents, lead magnets Posts, ebooks, and web copy for your business.

The Role Of Sme-S On Tourism Marketing , why major contributor to travel and tourism sector in India?

The development community has long upheld that a thriving private sector is essential for economic development. SMEs play an instrumental, but often under-recognized, role in private sector growth. SMEs are a fundamental part of the economic fabric in developing countries, and they play a crucial role in furthering growth, innovation and prosperity. Unfortunately, they are strongly restricted in accessing the capital that they require to grow and expand, with nearly half of SMEs in developing countries rating access to finance as a major constraint. The SME sector is the backbone of the economy in high-income countries, but is less developed in low-income countries. SMEs include a wide range of businesses, which differ in their dynamism, technical advancement and risk attitude. Many are relatively stable in their technology, market and scale, while others are more technically advanced, filling crucial product or service niches. Increased SME growth has a direct effect on GDP growth due to increased output, value add and profits. The GDP contribution per SME is the difference between the return on capital and the cost of capital. In an era of globalizing economies many markets become increasingly international and competitive, although the story is different for small and  medium sized enterprises (SMEs) than it is for multinational corporations  (MNCs). The situation in the local market place for travel agencies in Copenhagen, Denmark, is no different, even though services are not the same as tangible products. In the context of globalization, the tourism industry, like many other industries, tends to consolidate and the question of how SMEs manage the competition is intriguing. Besides larger competitors with visible, physical premises, other processes related to globalization are presenting SMEs with both opportunities and threats. In any case, the long term viability of SMEs in the local tourism industry is at stake and this study covers, among others, what strategies are deployed by SMEs to remain profitable and competitive. There has been a growing focus on innovation in small and medium-sized enterprises (SMEs) in tourism industry. Innovation has been playing an increasing role in hospitality industry, and is especially important for the SMEs as well as travel agencies. However, innovation research has been applied to SMEs in hospitality industry on a limited extent. This article discusses various definitions of innovation and innovation approaches in the context of SMEs in tourism industry. The objective of the article is to reveals innovation activities of the travel agencies as one of the SMEs in tourism industry. In addition, the article aims to reveal the relationship between innovation and the operating age of travel agency, and total personnel number of travel agency. However, the internet also presents travel agencies with new opportunities that can be utilized to develop new strategies. Information technology (IT) in general has influenced the rules of the game in the tourism industry, like it does in many other industries. Doubtless, a major strength for many small and medium sized enterprises (SMEs) is their close customer contact and their ability to maintain close customer relationships. Nevertheless, in the light of today’s business environment all SMEs have to take a closer look at their situation, even if they want to go on with their local strategy and if business outside their traditional region has no strategic logic. The role SMEs play in today’s global economies is a highly interesting matter. Initially, it was assumed SMEs would play a minor role in the rapid globalizing world economy. Multinational corporations (MNCs) would be the drivers of globalization and together with consumers they would reap the benefits. At least, this was the story as depicted in the popular press and by scholars. Surely, MNCs have the capacity and funds to invest abroad, enter new markets, and are able to better hedge themselves against the (financial) risks. Consumers, on the other hand, have benefited from lower prices of consumer goods, increased transparency, and the possibility to travel more cheaply and easily to faraway destinations. The impact of globalization differs from industry to industry. The aim of this article  is to research the impact of globalization on SMEs in the tourism industry. Globalization and global tourism can be seen as two interconnected elements. This research covers the global tourism industry and takes a particular interest in local travel agencies. It is interesting as many industries in tourism are related to  services and, traditionally, the services sector is the least globalized industry, because of strong local forces. That has everything to do with personal services, which is a dominating aspect in the local tourism industry. The framework will work as a Business to Business (B2B) connector between enterprises, in particular SMEs. It will cover all branches of the tourism industry (hotels, travel agencies, restaurants, etc.) and will be calculable, modular and developed as open source. It will enable undertakings to exchange data and share processes with each other through a set of specifications that allow interaction between the different systems. Traditional travel agencies will be able to gain access by adapting their systems, via private web interface (for example via an external website), or using  Centralized Reservation System (CRS), while online agencies will be able to access automatically using standard communication formats (XML-based) by integrating with the system. Hotels and other tourism service providers will be able to connect through their Property Management System (PMS) using standard communication formats (XML-based) or the application provided .

Tourism is one of the pillar industries in India; they have accumulated a set of more perfect and mature management system in travel agency and operation mechanism. The current development of India’s travel industry still has a lot of room for improvement. Referencing and learning travel agency industry management experience of India will promote our tourism industry management process. The study focuses on the difference of the India’s tourism management system and their respective advantages of management. Then it puts forward corresponding suggestions according to the present situation of the development of travel industry of the India, and provides reference for the travel industry management and the organization system innovation. Regarded as an economic and social activity, tourism represents, through its content and role, a distinct field of activity, a highly important component of the economic and social life in a growing number of countries, and implicitly in our own country. Tourism is a specific phenomenon in modern civilization and it is deeply rooted in the life of the society and, as such, it has influenced its evolution. Thus, being responsive to the dynamic changes in contemporary civilization, tourism evolves under their impact, joining the general process of development. Tourism also acts as a stimulating factor for the progress and evolution given the vast human and material potential engaged in its development and given the beneficial effects on the area of interference. The tourism and hospitality industry is currently one of the most important industries worldwide. India takes full advantage of highly favorable and more than adequate conditions for the development of different forms of tourism. This context encompasses the efforts of specialists to rigorously and scientifically define the categorize system integrated to tourism, its inter-dependencies with other parts of the economy and to quantify its effects. In many developing countries, tourism is widely accepted as a way to contribute to economic development, job opportunities and foreign revenues. Due to these factors tourism worldwide has developed rapidly in the last decades. The advantages of tourism and the live examples from different parts of the world encourage countries with adequate resources to find out the ways of conducting efforts aiming sustainability in this area because sustainability can be easily connected to almost all kinds and scales of tourism activities and environments. On the other hand, tourism in developing countries is also considered as a growing environmental concern because of its affect on seasonality, lack of suitable infrastructures and planning. The travel agencies are defined as a firm qualified to arrange for travel-related retail services on behalf of various tourism industry principals. With the evolution of the internet, the use of on-line search facilities for travel information has provided additional sources of information and opportunities to purchase travel direct from suppliers such as airlines and accommodation providers without recourse to travel agents and in some instances at discounts to prices available through travel agencies by eliminating commissions for such agents . Furthermore, the capacity of the internet to promote and provide information conveniently and quickly has offered alternatives to physical visits by consumers to travel agencies in order to access such information. Friends and relatives were regarded as an important source of information in the selection of travel agencies. Travelers suggested that they interact regularly and continuously with friends and relatives, who might have significant influence on their attitudes and behaviors. Furthermore, pressures for conformity might exist that affect the actual travel agency choices. As such, travel agencies should be aware of this social factor and acknowledge the fact that it could determine how consumers were to select their travel agencies.


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Role of Tourism in the Growth of Prosperous India.

Every year, millions of people travel to other countries for vacations, recreation and pleasure spending billions of dollars. India, unfortunately, gets a minuscule fraction of this burgeoning global business. However, India has a thriving indigenous tourism trade. Large numbers of Indians crisscross the country in holiday seasons for pilgrimage, sight-seeing, recreation, healthcare etc. Their numbers keep swelling year by year as the average income of the Indian middle class rises. Notwithstanding the gains, the tourist trade has some very vocal critics. It will be wise to hear them out as we take steps to welcome more tourists. Globally, tourism it brings multiple benefits to the economy.

For a country like India that needs foreign exchange and new job creation, tourism can deliver the desired benefits. One visible benefit is this sector’s ability to create jobs rapidly. New jobs are created in hotels, restaurants, travel businesses, taxis plying, entertainment centers, resorts, and many other places catering to both inland and overseas tourists. Tourism is travel for leisure, recreational and business purpose. Tourists can be defined as people who travel to and stay in places outside their usual surroundings for more than twenty-four hours and not more than one consecutive year for leisure, business and other purposes by the World Tourism Organization. Tourism is a known affair in human life. It has been an industry of vast dimensions and eventually supports economic and social growth. Tourism worldwide has experienced phenomenal growth. With more than 600 million people travelling annually, tourism is the world’s largest industry, with revenues of about half a trillion dollars a year, and averaging five percent annual growth.

India’s niche is built around Cultural, Heritage and Adventure Tourism with its diverse topography and geopolitical heritage. While these core areas continue to drive tourism there have been efforts to create niche tourism products like Medical and Wellness, Rural Tourism, Eco-tourism, Wildlife Tourism, etc. in the last decade. Niche tourism is fast becoming a reality in India. “In my opinion, these are the businesses of the future and many of them will be key to the growth of India’s tourism. Key niche tourism areas are Wellness, Medical, Cruises, Pilgrimage, Adventure, MICE, Golf and Polo. Both the trade and the government are cooperating to realize the potential of these sectors. Essentially, niche is where money is which the industry also realizes. “Many of the new segments are high-end and India offers a perfect setting to grow and nurture them to be good value businesses. We are already seeing double digit growth in Wellness and Medical Tourism, and noticing their value, key tour operators and destination management companies are incubating specialist teams.

This will gradually become a trend setter. It has much to offer to travelers and tourists. It is a land of hills, rivers, plateaus, plains, beaches, deltas and deserts. It also houses many luxurious hotels and resorts to cater to its booming travel and tourism industry. India offers luxury travel to its travelers and tourists. Cruise from the picturesque natural sites to the architectural wealth in this beautiful land. Almost all the cities in India have something to interest tourists.

There are 29 states in India, Following are: 

    No.         State                                        Capital                             Chief Minister
          1                Andhra Pradesh                 Hyderabad          Nara Chandrababu Naidu
           2               Arunachal Pradesh                Itanagar                         Nabam Tuki
           3              Assam                                     Dispur                           Tarun Gogoi
           4              Bihar                                        Patna                          Nitish Kumar
           5              Chhattisgarh                           Raipur                        Dr. Raman Singh
           6                Goa                                       Panaji                       Laxmikant Parsekar
           7              Gujarat                                 Gandhinagar             Ms. Anandiben Patel
           8              Haryana                                Chandigarh              Manohar Lal Khattar
          9               Himachal Pradesh                  Shimla                        Virbhadra Singh
         10           Jammu and Kashmir               Srinagar                Mufti Mohammad Sayeed
         11           Jharkhand                                 Ranchi                          Raghubar Das
          12           Karnataka                             Bengaluru                      Siddaramaiah
         13           Kerala                                   Thiruvananthapuram        Oommen Chandy
        14           Madhya Pradesh                        Bhopal                       Shivraj Singh Chouhan
         15           Maharashtra                                  Mumbai                        Devendra Fadnavis
        16           Manipur                                           Imphal                       Okram Ibobi Singh
       17           Meghalaya                                  Shillong                       Dr. Mukul Sangma
       18           Mizoram                                         Aizawl                       Pu Lal Thanhawla
       19           Nagaland                                      Kohima                           T. R. Zeliang
       20           Orissa                                          Bhubaneswar               Naveen Patnaik
       21           Punjab                                          Chandigarh                Parkash Singh Badal
       22           Rajasthan                                        Jaipur                       Ms. Vasundhara Raje
       23           Sikkim                                            Gangtok                       Pawan Chamling
       24           Tamil Nadu                                   Chennai                        Ms. J. Jayalalithaa
25           Telangana                                     Hyderabad                K. Chandrasekhara Rao
       26           Tripura                                            Agartala                    Manik Sarkar
       27           Uttar Pradesh                                  Lucknow                Akhilesh Yadav
       28           Uttarakhand                                     Dehradun               Harish Rawat
29           West Bengal                                            Kolkata                  Ms. Mamata Banerjee

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