Travel Agency and Tour Operation

TRAVEL AGENCY AND TOUR OPERATION
HMT801
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SUBMITTED TO: Dr. Parvinder Kour
INTRODUCTION
Impact of COVID 19
Tourism was one of the first sectors to be deeply impacted by the pandemic, as measures
introduced to contain the virus led to a near-complete cessation of tourism activities around
the world. The sector also risks being among one of the last to recover, with the ongoing
travel restrictions and the global recession. This has consequences beyond the tourism
economy, with the many other sectors that support, and are supported by, tourism also
significantly impacted.
The COVID-19 crisis has been a huge shock to the tourism economy, severely impacting
people’s livelihoods, neighbourhoods and businesses. As the pandemic continues to evolve,
the full consequences are not yet clear. However, a return to ‘business as usual’ is unlikely.
Policy makers will need to learn from the crisis to build a stronger, more resilient tourism
economy for the future.
The effect of the virus has brought a lot of pain and hardships to many individuals and
organizations from all corners of the world. However, the impact has not been even across all
industries. For instance, information communications technology (ICT) and its related
industries have not felt the pinch as much as other industries.
Airlines, tour operators, travel agents, attraction sites, car hire, restaurants and hotels have all
been adversely impacted. All businesses and service providers along the tourism value chain
including the farmer who supplies vegetables to a restaurant and a taxi driver who shuttles
tourists from the airport to hotels are all affected. As per WTCC, the Covid-19 pandemic is
expected to cost the tourism industry at least USD 22 billion resulting in a loss of 50 million
jobs globally. India is no exception, tourism has witnessed a significant decline during 2020.
As per WTCC, the Covid-19 pandemic is expected to cost the tourism industry at least USD
22 billion resulting in a loss of 50 million jobs globally. India is no exception, tourism has
witnessed a significant decline during 2020.
Domestic tourism has restarted and is helping to mitigate the impact on jobs and businesses
in some destinations. However, real recovery will only be possible when international
tourism returns. This requires global co-operation and evidence-based solutions so travel
restrictions can be safely lifted.
IMPACT ON CONSUMER LOYALTY AND TRAVEL BUSINESS
In order to determine the focus, it is important for the airline and hospitality industries to
understand the impact of COVID-19 on their consumers. To help these industries prepare for
the new phase of the pandemic, our Global practice published an article on “The values of
loyalty in a crisis for the airline and hospitality industries”, which emphasizes the need for a
shift in focus from “serving” to “adding value” for (potentially) loyal consumers. With this
thought in mind, the article presents three main insights that are very much relevant in
Europe, which we summarize below:
The top 2 values of airline and hotel loyal frequent travellers are sharing with others and
trying new things. In order to re-engage these travellers in the new normal, the industry
should increase their focus on reward and loyalty programs with an emphasis on appealing to
these values of sharing (digitally) with others and trying new experiences.
As the industry shifts towards the new normal, there is a new value that is of great
importance– the feeling of safety. In line with that, the vast majority of airlines and hotels are
focusing on making travellers feel as safe as possible through initiatives such as improving
their sanitizing and housekeeping procedures, making it mandatory for employees to wear
protective equipment, providing travellers with complimentary cleaning products, screening
employee and travellers temperatures, and disclosing travellers and employees that have been
tested positive for COVID-19.
Finally, as more and more interactions are moving online, airlines and hotels are expected to
be more digitally-enabled than ever before, leveraging this digital transformation to surprise
and delight their loyal travellers by offering connection points to their friends and family
back home.
The survival of businesses throughout the tourism ecosystem is at risk without continued
government support and although governments have taken impressive action to cushion the
blow to tourism, to minimise job losses and to build recovery in 2021 and beyond, more
needs to be done, and in a more co-ordinated way. Key policy priorities include:
 Restoring traveller confidence

 Supporting tourism businesses to adapt and survive
 Promoting domestic tourism and supporting safe return of international
tourism
 Providing clear information to travellers and businesses, and limiting
uncertainty (to the extent possible)
 Evolving response measures to maintain capacity in the sector and address
gaps in supports
 Strengthening co-operation within and between countries
 Building more resilient, sustainable tourism
The crisis is an opportunity to rethink tourism for the future. Tourism is at a crossroads and
the measures put in place today will shape the tourism of tomorrow. Governments need to
consider the longer-term implications of the crisis, while capitalising on digitalisation,
supporting the low carbon transition, and promoting the structural transformation needed to
build a stronger, more sustainable and resilient tourism economy.
CONCLUSION
In spite of the monumental impacts on the tourism and hospitality industry, it appears
tourism's loss could be the environment's gain. There has been a concomitant fall in
greenhouse gas emissions especially in industrialized countries as evident from satellite
images of coronavirus hot spots around the world. This has been widely circulated on social
media. In China for instance, emissions fell by 25% when factories were shut and cities were
on lockdown. Also, the use of coal fell by 40% in the six largest power plants in the country.
Whiles there is a lot of panic about the pandemic, nature is undergoing a healing process. It is
expected that by the time we are done with the pandemic, nature would have been
troubleshooted. Since the environment is the base product of tourism, destinations would
become more attractive.
The Return of Tourism Globally
With lockdowns ending around the world, many countries have started to ease border
restrictions and reopen for international tourists. Although many governments are still
advising against “nonessential” international travel, a host of popular destinations have eased
their Covid-19 border restrictions and are readily welcoming tourists back.
While tourism is slowly returning in some destinations, most members of the UNWTO Panel
of Tourism Experts expect international tourism to recover only by the second half of 2021,
followed by those who expect a rebound in the first part of next year.
However, there are still concerns over the lack of reliable information and deteriorating
economic environment which are indicated as factors weighing on consumer confidence,
especially with the potential new limits on travel as world comes to grips with second Covid-
19 wave.
Tourism industry in India requires a push for its revival and immediate reliefs under GST
laws will bring an impetus to this sector to survive from this never-seenbefore global
economic crisis.
While flexible policy solutions are needed to enable the tourism economy to live alongside
the virus in the short to medium term, it is important to look beyond this and take steps to
learn from the crisis, which has revealed gaps in government and industry preparedness and
response capacity. Co-ordinated action across governments at all levels and the private sector
is essential.

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TRAVEL AGENCY AND TOUR OPERATION

IMPACT ON CONSUMER LOYALTY AND TRAVEL BUSINESS

 Restoring traveller confidence

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