UNIT 7 SETTING UP OF TRAVEL AGENCY AND TOUR OPERATOR BUSINESS

Structure
7.0 Objectives
7.1 Introduction
7.2 Travel Agency and Tour Operator
7.2.1 Types and Forms of Travel Agency Business
7.2.2 Types and Forms of Tour Operators
7.2.3 Differences between Travel Agency and Tour Operators
7.3 Operations and Functions of Travel Agency Business
7.4 Organizational Structure of Travel Agency
7.5 Setting Up a Travel Agency
7.5.1 Steps Involved
7.5.2 Government Guidelines
7. 5.3 IATA Rules
7.6 Sources of Income of Travel Agency Business
7.7 Let Us Sum Up
7.8 Further Readings
7.9 Answer to Check Your Progress ‘Exercises’
7.10 Questions for Practice

7.0 OBJECTIVES

After studying this lesson, you will be able to:

• Understand the types and form of travel agency
• Know about the organizational structure of a travel agency
• Learn the functions of a travel agency
• Differentiate between the travel agency and tour operators
• Understand how to set up a travel agency
• Understand the rules and regulations to get accreditation for a travel agency from the
Government of India and IATA
• Identify the sources of income of travel agencies and tour operators
7.1 INTRODUCTION

The travel business has evolved over the years, widening its scope of work with niche
products and services. Due to the complex nature of tourism products with multiple
manufacturers, the travel business operates in different ways and can be classified into
different types. They have come a long way from playing the role of intermediaries to
performing various tasks to cope with the constantly advancing tourism industry. In addition
to this, travel businesses are upgrading their business models according to market trends
which can be witnessed with many travel agencies having a solid internet presence aided by
company websites. Travel business in the form of travel agencies and tour operators have a
significant contribution towards tourism growth. Hence, it is inevitable to understand the
characteristics of these travel businesses. This chapter briefs about the meaning, types, and
functions of travel agencies and tour operators. It also discusses the organizational structure
and steps involved in setting up a travel agency and tour operator business.

7.2 TRAVEL AGENCY AND TOUR OPERATOR

A travel agency is an integral part of the travel and tourism industry, primarily acting as a
bridge between the travel/tourism service providers and the customers. The primary function
of a travel agency is to enable the selling of tourism products by bringing together the sellers,
i.e., travel services like accommodations, airlines, transport services, tour operators, and
buyers. According to the Ministry of Tourism (GoI), “a Travel Agent / Agency (TA) is the
one who makes arrangements of tickets for travel by air, rail, ship, passport, visa, etc. It may
also arrange accommodation, tours, entertainment, and other tourism-related services”. The
history of travel agencies dates back to the 19th century when Sir Thomas Cook set up the
world’s first travel agency in 1845.

A tour operator assembles tourism products and services and makes value additions. Unlike a
travel agency, a tour operator takes care of the different aspects of the tour ranging from
accommodation to transport services and sells it as a package.

7.2.1 Types and Forms of Travel Agency Business

The services offered by travel agencies vary from one agent to another. Hence, travel
agencies can be classified into various types based on the nature of their function,
specialization, geographical coverage, size, business form, and tourism flows.

Classification Based on the Nature of Function:

 a) Wholesale Travel Agency:
A wholesale travel agency buys travel services like airline seats or hotel rooms
in bulk for a specific period and designs tour packages. Wholesale travel agencies
that establish tie-ups with airlines or hotels are authorized to sell the airlines’ seats
or the hotel rooms on the organization’s behalf. The primary job of a wholesale
agency is to design travel itineraries. The tour packages developed by the
wholesale travel agencies are sold to the retail travel agencies. In some cases, the
wholesale travel agencies are also in charge of retailing by selling their products
directly to their outlets.
b) Retail Travel Agency:
Airlines Reporting Corporation (ARC) defines a retail travel agency as “a
business that performs the following functions: quotes fares, rates, make
reservations, arrange travel tickets and accommodation, arrange travel insurance,
foreign currency, documents and accepts payments.” Retail travel agency sells the
tourism products directly to the end-users at their outlets. They usually charge a
certain percentage of the product’s price as commission which serves as their
primary source of income. Retail agencies play a crucial role in dealing directly
with consumers and producers/ wholesalers. Since it acts as an intermediary, retail
travel agencies follow itineraries pre-designed by wholesalers. They also provide
travel information to the customers by furnishing travel literature and offering
travel-related advice.

Classification Based on the Size of Business:

a) Small Scale Travel Agency:

It refers to travel agencies with not more than 50 employees and managed
or owned independently. In many countries, these small-scale travel agencies
together hold a significant market share. They focus only on a narrower range of
products.
b) Large Scale Travel Agency:
Large-scale travel agencies offer a wide range of tourism products and house
different departments specializing in various segments.
c) Medium Scale Travel Agency:
In most cases, these types of travel agencies are a successful extension of
small-scale travel agencies with an employee range of 50-150.
Classification Based on Business Model:

a) Offline Travel Agency:

Offline travel agency sells tour packages and other travel-related services
or products in a traditional business setting, i.e., a sale takes place based on the in-
person exchange between the consumer and the travel agency.

b) Online Travel Agency:

Unlike offline agencies, online travel agencies sell tourism products and
services to the end-users through the internet. Online travel agencies surpass the
market share of their offline counterparts due to the increasing number of
customers opting for online purchasing. For example, MakeMyTrip.Com is one
of the leading online Indian travel companies offering a wide range of tourism
products ranging from flight tickets and accommodation to tour packages.

7.2.2 Types and Forms of Tour Operators

a) Inbound Tour Operators:

Inbound tour operators deal with foreign tourists and make arrangements in
the host country. For example, a group of European tourists visiting India
through a travel company in India that a tour operator handles all the travel
services. This falls under the inbound tour operator category.
b) Outbound Tour Operators:
They deal with international travelers. For example, an Indian-based outbound
tour operator takes care of the travel arrangements of Indian tourists who are
willing to visit foreign countries.
c) Domestic Tour Operators:
This category of tour operators designs and sells tour packages within the
country of operation. Domestic tourism is a booming sector in India, with a rising
number of citizens opting for tours within the boundary of the nation.
d) Ground Operators:
Ground operators handle the tour arrangements of a particular destination
operating from the same region. They are also called ‘destination management
companies’ or ‘reception operators. They chiefly do the ground travel
arrangements on behalf of travel companies that do not have branches operating in
the region.
7.2.3 Differences between Travel Agency and Tour Operators
Tour operator Travel Agency

1. It operates as a wholesaler. 1. It operates as a retailer.

2. It acts as a principalagent who 2. It acts as a local agent that confirms
takes responsibility for the and reconfirms the services.
package they create. 3. It does not usually design or create
3. It plans, arranges, sells, advertises, the holiday packages they sell.
and operates its tour packages. 4. It sells package tours on behalf of
4. Tour operators sell tour packages the tour operator.
directly to the clients or use the 5. It less tends to perform ground
services of travel agents to do so. services.
5. It more tends to perform ground 6. The size of the business is
services. comparatively small.
6. The size of the business is large 7. It deals with one specific component
7. It offers a variety of tour programs. of the travel product.
8. It modifies the tour itinerary and 8. It follows the tour itinerary.
program. 9. Revenue is fixed and pre-determined
9. It has variables but limited revenue by suppliers.
and gross profit.

7.3 OPERATIONS AND FUNCTIONS OF TRAVEL AGENCY BUSINESS

Before dwelling into the details regarding the steps involved in setting up a travel agency, it
is vital to be familiar with the travel agency’s functions and operations. With the rapid
advancements in transport systems and the accessibility of tourism services availed by a
broad section of the customers, the kind of services undertaken by the travel agencies has
grown widely. However, it cannot be said that each travel agency offers all these services.
The essential functions of the travel agency are listed below
i) Dissemination of Information: A potential customer would like to be aware of the
various aspects of their tour. The prospects of a consumer buying a product from a
travel agency majorly depend on how well a travel agent possesses knowledge about
the product and how efficiently it is being conveyed to the consumer.
ii) Ticket Reservation: Ticketing is a primary function of travel agencies and tour
operators. It involves reservation and issuing airline, railways, cruise, and bus tickets
to clients. Though ticketing in earlier days was a tedious job due to the complexity of
airfares, the Global Distribution System (GDS) and Computer Reservation System's
(CRS) introduction and advancements have made it a manageable job. While
ticketing was done either through telephone requisitions or in-person visitations to
travel agencies, many travel agencies have facilitated the provisions for online
purchasing.
iii) Itinerary Preparation: A typical itinerary consists of information regarding the tour
duration, accommodation details, sightseeing, and other activities involved in the
tour. A well-prepared and proof-checked itinerary increases the chances of product
sales. It is also equally important to have different types of itineraries, thereby
providing the customers with options.
iv) Tour Packaging and Costing: Planning the tour packages and deciding their cost is
another important travel agency function. Tour Packaging demands expertise on the
particular type of tour and destination. After assembling various components and
designing a tour package, the travel agency fixes its monetary value and makes it
available in the market.
v) Liaison with Service Providers: Since enabling tourism services requires bringing
various travel components together, travel agencies coordinate with multiple
suppliers. These include airlines, hotels, car rentals, and transportation companies.
vi) Provision of Travel Insurance: Travel Insurance is issued to cover the different
types of risks during travel, such as lost baggage, cancellations, and accidents. Travel
agencies offer insurance services along with other tourism products.
vii) Foreign Currency: Provision and exchange of foreign currencies are dealt with by a
separate travel agency department. The agencies purchase foreign currencies on
behalf of their customers, thus saving a lot of time on the process. Companies like
Thomas Cook India further ease the foreign currency exchange process by offering
online forex services and introducing Forex Travel Cards.
7.4 ORGANIZATIONAL STRUCTURE OF TRAVEL AGENCY

Organizational structure is a setup that reflects how organizational activities should be carried
out to meet its goals and objectives. Apart from this, the organizational structure also outlines
the flow of communication channels within and between various levels of the organization. It
ensures the effective management of an organization. The size of a travel agency and the type
of business that it handles determine the organizational structure. Travel agencies with large-
scale operations have a formal organizational structure, whereas the organization structure is
limited to small and medium-scale travel businesses.

Following the growth of the travel business, its organizational structure should be
modified and updated. For example, after its merge with Thomas Cook, TCI has undergone a
significant modification in its organizational structure. Similarly, when a travel agency
expands its business, its organizational structure also expands with the inclusion of
departments required to meet the updated organizational goals.

For an organization's structure to be effective, it should have the following

characteristics.

 A good organizational structure should be flexible to accommodate alternations when

the need arises.
 There should be a clear flow of authority which in turn ensures proper delegation of
power and responsibilities.
 A less complex organizational structure with minimum managerial levels avoids
mismanagement and confusion.
Figure 7.1 shows a detailed organizational structure of a large-scale travel agency.
The chart depicts the hierarchical structure of the agency where the authority rests with
the Chairman or CEO, who makes the major decisions for the organization while in large
establishments the top hierarchical position rests the Board of Directors consisting of
more than one top-level position who collectively makes the decisions. However, only the
headquarters of the large travel agencies are more likely to house all these departments. In
retail outlets and small-scale travel agencies, generally, there would be only a few
sections overlooking the operations based on the nature of business. No one size fits all
approach in formulating organizational structure. Hence, it varies from one travel agency
to another based on the business’ size, nature of business, and type of services.
 Due to the high demand, travel agencies have a separate division for MICE travel.
This division mainly deals with corporates and facilitates arrangements for MICE travel.
The Incentive Division of SOTC has around 100 employees across its Indian outlets who
specialize in MICE outbound travels. Travel agencies also have overseas offices
established in countries across the globe depending on the nature of the product and
customer base. For instance, the overseas offices of Akbar Travels of India Pvt. Ltd. are
concentrated in the Middle East with 12 overseas offices in U.A.E.
Figure 7.1 : Organizational Structure of a Large-Scale Travel Agency

Source:
A well-designed organizational structure helps the travel agency business run
smoothly and effectively as it dictates a proper flow of power delegation and communication
channels. Apart from the standard divisions depicted in Figure 1, a travel agency might also
include the Research and Development Department, Human Resource Department, and
Board of Directors. The Human Resource Department deals with the recruitments, training,
and appraisal of the employees. Large travel agencies like Thomas Cook and SOTC have an
elaborative organizational structure with separate divisions for various specializations. In
contrast, small travel and medium-scale travel agencies operate with lesser divisions.

Check Your Progress A

1. Who is a travel agent and tour operator?

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2. Difffereniate important business operational areas between a travel agent and tour
operator.
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3. How can an organizational structure of a lage travel agency be managed effectively?

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7.5 SETTING UP A TRAVEL AGENCY

Setting up a travel agency requires a lot of planning and organizing and is not an easy
task. Their primary business is to sell various kinds of services such as transportation,
accommodation, sightseeing tours, etc. The products of a travel agency depend on the size,
structure, and market pattern. Some may focus on both inbound and outbound tourism,
catering to both international and domestic tourists. Some travel agencies may focus on
specialty tours or provide customized travel packages. Some also offer ancillary services such
as consultation or information on travel requirements such as visas, travel insurance, or
vaccinations. Therefore, before setting up a travel agency, it is vital to clearly understand
these companies’ functioning, activities, and products/services. Following are the steps
involved in setting up a travel business:

7.5.1 Steps Involved

Identify the Market: Before entering the travel business, a thorough understanding of the
tourism industry’s current position and prospects is essential. It is also necessary to know
other travel businesses and their strengths and weaknesses. It will provide you with an idea of
tourism businesses and help develop networks with other formal tourism businesses. Further,
the travel business competition depends mainly on your travel agency’s location and niche. It
is essential to create your niche presence in the market to experience less competition.

Deciding the Name and Structure: After choosing the niche of your travel agency, decide
on a unique and memorable name for your business and get it registered. Another step to take
into consideration is your business structure. Whether it is a large, medium, or small business,
you need to decide on options such as remaining a sole proprietor, having a partnership, or
forming a corporation. With a medium or large travel company, it is also vital to consider
hierarchal organizational structure. Agencies with different departments or sections,
including sales, research, and planning, accounts, public relations, etc., function in an
organized and coordinated way. This organizational structure produces better output, gives
better clarity of decisions, and avoids ambiguity.

Selection of Ideal Location: Selecting a site is an arduous task. An ideal location provides
an added advantage for a business to grow in a more competitive environment. A company
must be visible and easily accessible to its clients. The ideal location is preferably a ground-
floor office with adequate nearby parking. Office space must be as stipulated by IATA or any
other standard organization.

Investment Capital: Capital is essential to set up and expand a business. It is the lifeline of a
company and is necessary at every stage of its operations. Capital can be arranged from its
source or commercial banks at a subsidized rate of interest. As in India, various schemes have
been implemented by banks and financial institutions to cater to the financial needs of
tourism and hospitality-related businesses. The Ministry of Tourism and the Minisstry of
Small and Medium Enterprises extend provisions of loans with less rate of interest.

Hiring Qualified and Skilled Workforce: A travel agency is service-oriented, and human
resources is a core component of the total resources of a travel agency. Therefore, it is
essential to hire efficient personnel with professional qualifications and skills. According to
IATA or any other recognized organizations, it is vital to have a minimum of two staff
members qualified from an approved tourism educational institution.

Develop Technical Resources: In today’s world, it is crucial to be up-to-date with

technological advancements even in the tourism and hospitality sector. Most travel agencies
and tour operators use major computer reservation system applications such as – GDS and
software applications such as Amadeus CRS, Galileo CRS, SABRE, and World span.
Adoption and use of technological advancements make the job easy and enhances the
productivity of the company. The online presence of a travel company is also crucial in
today's modern scenario where everything, including travel information and distribution,
booking, controlling the operation, handling the clients, fund transfer, can be done with the
help of mobile phones or laptops. Developing the website and mobile apps for a travel
company has become a must-demand and market trend.

Managing Cash Flow: A travel agent not only needs the investment capital to start a
business but also needs continuous cash flow for day-to-day business operations.Running out
of cash despite your other assets will cause the risk of business failure. Therefore, cash flow
consideration is important as any other business function. It will also help you figure out your
business viability.

Recognition from Professional Agencies: Getting certified from any local, national or
international organization has a profound impact on the clients and market. Though it is not
mandatory, it is a sign of credibility and makes any travel company stand out from others.
Therefore, one should work towards acquiring needed certifications for their business. The
Ministry of Tourism (GOI), IATA, IATO, TAAI, PATA, ASTA, and other professional
agencies provide such certifications and recognizations. However, the Department of
Tourism of all State Governments in India also recognizes tour operators and travel agents.

Legal Documents Required: Some primary legal documents are needed to start a new travel
agency business which is as follows:

 Certificate of Incorporation
 Certificate for commencement of business
 Business License
 Business Plan
 Statement of Busienss
 Education Certificates of Staff Members
 Online privacy policy
 IATA or any other approved organizations' approval
 Minimum office space of 150 sq. ft.

7.5.2 Government Guidelines

 The Ministry of Tourism, Government of India, has laid down guidelines for the
recognition of tourism service providers, which also entitles them to incentives and
concessions to be granted by the Government from time to time. It is a voluntary scheme
open to all travel agencies and tour operators. This recognition is aimed to bring these service
providers into an organized sector and encourage standardized and quality tourism services.

The recognition granted to tourism business by the Government of India is classified into
two categories.

i) Green Shoots/ Startups: Refers to new organizations ventured into the tourism
industry with no prior history in the tourism sector. Approval granted under this
category is valid for three years before which the company should apply for the
Experienced Tourism Service Providers category. Renewal facility is not applicable
under the Green Shoots category.

ii) Experienced Tourism Service Providers: Refers to travel businesses that are
already established in the tourism sector. The initial approval by the Ministry of
Tourism is valid for five years. The validity for renewal or extension is also five
years and is granted by the respective Regional Director of India Tourism Offices.

Any Travel agency or tour operator who wants to get approval must fulfill the
following conditions:

1. Minimum paid-up capital required for approval of a travel agency is Rs. 3 Lakh for
the rest of India. However, for agencies located in the North-East region/UTs of
J&K/Ladakh/Andaman & Nicobar/ Lakshadweep Islands, it is Rs. 50,000/-
2. Minimum annual turnover should be Rs. 20 Lakh for the rest of India. However, for
agencies located in the North-East region/UTs of J&K/Ladakh/Andaman & Nicobar/
Lakshadweep Islands, it is Rs. 5 Lakh.
3. The company should be successfully operational for a minimum of one year.
4. Minimum 2 staff members are required for the agencies with an annual turnover of
Rs. 10 crores with at least one member qualified from an approved tourism
educational institution.
5. Minimum 4 staff members are required for the agencies with an annual turnover of
more than Rs. 10 crores with no less than two members qualified from an approved
tourism educational institution.
 6. Office space required for the agencies with an annual turnover of more than Rs. 10
crores is 150 sq. ft for the rest of India and 100 sq. ft for hilly areas. No requirements
for agencies located in the North-East region/UTs of J&K/Ladakh/Andaman &
Nicobar/ Lakshadweep Islands
7. Should be an income tax assessee.
8. Agency should have an office under the owner's charge or a full-time staff member
who is adequately trained/experienced regarding tourism and travel-related services.
9. It is required to pay a non-refundable fee of Rs.3000/- while applying for the
recognition and renewal of Head Office and each Branch Office.
10. It should follow the tenets of the Code of Conduct for "Safe & Honourable Tourism."
11. Agency should be IATA approved or General Sales Agent (GSA) of an IATA
member Airlines.
12. It shall employ only approved guides.
13. The approval by MoT is granted to the head offices of Travel Agencies. If there are
any branch offices, they would be granted approval along with the head offices or
later provided the provision of required documents of each branch offices.

Once a travel agency receives its approval from the Ministry of Tourism, it is mandatory to
display the certificate of approval at the travel agency office so that it is visible to the
consumers. Final decisions regarding the approval or withdrawal of recognition rest with
MoT.

7. 5.3 IATA Rules

IATA accreditation is not an obligatory requirement for becoming a travel agent. However,
having an IATA accreditation can provide travel agencies/tour operators with credibility and
enhanced revenue. The rules and regulations to apply for IATA accreditation are as follows:

1. The application for grant of approval shall be in the prescribed form and addressed to
the Director, Agency Investigation Panel IATA. The objective of recognition is to
promote and develop the air transport and tourism industry at the global, regional, and
national levels.

2. Travel agency shall have a full-fledged business for the last two to three years.

3. The travel/tour company must have professional staff members qualified from IATA-
approved institutions.
 4. The agency must have sound financial credibility.

5. The agency’s location must be easily accessible, having proper security, and be
clearly identified to the tourists.

6. All travel agents must provide Financial Security with a minimum amount of USD
50,000 to be accredited.

7. The agency should have the ability to generate business.

8. The travel/tour company granted recognition shall be entitled to such rights and
privileges as may be granted by the association from time to time and shall abide by
the terms and conditions of recognition as set by the association from time to time.

9. The agency must auditandattest annual reports with the application form.

10. The decision of the IATA in the matter of accreditation shall be final. The association
may refuse to accredit any travel/tour company without assigning any reason.

11. The association reserves the right to withdraw at any time, the recognition already
granted, without assigning any reason.

12. The recognition granted by the IATA shall not automatically entitle the Travel
Agency/ Tour Operator to be approved by any other organization/association.

IATA-approved travel agencies are entitled to use the IATA logo and benefits as full-
time member of IATA. It also enhances the agency’s credibility by being an IATA member.
IATA also provides training for the agency staff members and also helps in marketing.

7.6 SOURCES OF INCOME OF TRAVEL AGENCY BUSINESS

Travel agencies earn income through the suppliers and the customers they serve. The primary
source of income of Travel Agency Business is commission received from various sources.
However, the introduction of travel services through online has impacted this source of
income making the travel agencies to be more competitive. Approximately 95 per cent of the
revenue is earned from the commission, and 5 per cent is made through other services. The
sources from where these travel agencies are remunerated are as follows:
 1. Commission on the sale of principal services: When a travel agent book and buy
any principal services such as hotel, airline, or transport for their clients, they are paid
a commission on each booking by the service provider. The scale of this commission
differs from one travel agency to another.
2. Consultation and handling service charges: The travel agency collects a service fee
from the clients for consultancy services and tour handling.
3. Commission from ancillary services: The travel agency provides ancillary services
such as travel insurance, traveler's cheques, and other travel documentation for which
it collects service fees from the clients.
4. Income earned from short-term investment: The travel agencies invest the money
they receive from various sources as deposits and make profits.
5. Profit from its own tours: A travel agency can earn profit by selling its own tours
such as excursions, sightseeing, hikes, etc.
6. Specialized Services: Travel agencies that offer specialized services like corporate
travel earn profit based on their expertise in that area.

Check Your Progress-B

a. List 3 sources of investment capital for a travel company.

b. Name four national/international organizations providing certification for a travel
agency.
c. What is the minimum office space required for a travel company as prescribed by
IATA?
d. Expand IATA.
e. List two primary sources of income of a travel agency.

7.7 LET US SUM UP

In this unit, procedures of the establishment of travel agency and tour operation units
in particular and types, functions, and sources of revenue of travel agencies and tour
units, in general, have been explained in detail with suitable examples. Travel
agencies act as retailers or aggregators to sell primary services based on commission
or mark up. The roles of a travel agent and tour operator have undergone several
changes owing to the change in taste and preference of buyers or takers of services.
 Travel agents, apart from selling services of principal service providers now act as
tour consultants and planners assisting the customers to save the cost of the tour and
use the vacation time optimally. Thus, due diligence should be given for setting up a
travel agency or tour operation for continuation for a longer period with an increasing
market size along with diversification of services. Apart from obtaining IATA
approval or recognition for the sale of international air tickets, a travel agent can
explore getting aligned with the national and international professional bodies for
branding and market credibility. Thus, the establishment of a travel company, when it
happens with good planning, can grow despite internal and external hindrances.

7.8 FURTHER READINGS

1. Bhatia, A.K. (2013). The Business of Travel Agency and Tour Operations
Management. New Delhi: Sterling Publishers (P) Ltd.
2. E-Pathshala. (2018). Retrieved from E-Pathshala an MHRD Project Website:
http://epgp.inflibnet.ac.in/ahl.php?csrno=1827 Select- P-02.
3. Goeldner, R., & Ritchie, B. (2010). Tourism, Principles, Practices, and Philosophies.
London: John Wiley & Sons.
4. Negi, J. (2005). Travel Agency Operations: Concepts and Principles. New Delhi:
Kanishka.
5. Negi, K.S. (2011). Travel Agency Management. New Delhi: Wisdom Press.
6. Roday, S., Biwal, A., & Joshi, V. (2009). Tourism Operations and Management. New
Delhi: Oxford University Press.
7. Swain, S.K. & Mishra, J.M. (2011). Tourism Principles and Practices. New Delhi:
OUP.

7.9 ANSWER TO CHECK YOUR PROGRESS EXERCISES

Check Your Progress A

1. Read section 7.2
2. Read section 7.2.1
3. Read section 7.2.1.1
4. Read section 7.2.2
5. Read section 7.3
6. Read section 7.4
7. Read section 7.5

Check Your Progress A

1. Read section 7.6
 2. Read section 7.6.1
3. Read section 7.6.2
4. Read section 7.6.3
5. Read section 7.7

7.10 QUESTIONS FOR PRACTICE

1. Brief the various types and forms of travel agency business.

2. Prepare an organizational structure chart of a large-scale travel agency and explain the
functions of each division.
3. List out the steps required to set up a travel agency.
4. What are the IATA rules and regulations for the approval of a travel agency or a tour
operator? What are the benefits of getting accredited by any approved organizations?
5. List some new schemes launched by the Government of India to boost the tourism and
hospitality sector.