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MARKETING STRATEGIES
OF TRAVEL AGENCY
A CASE STUDY OF
AKBAR TRAVELS
INTRODUCTION TO THE STUDY
The history and development of the travel agency business dates back
after second world war. Travel and Tourism industry gathered momentum
after the industrial revolution and development of modern transport
system. Immediately after second world war there comes a sudden spurt
in the field of travel and tourism industry. During the war, the cross border
movement was limited because politically independent countries of the
world adopt a regulatory and restrictionism attitude for the free movement
of the people. During that time, the travel and tourism industry reaches
the point of stagnation. The heavy blow was upon the travel agency
business. After the second world war, the world countries temporarily
withdrew all kinds of cross border trade relationships along with mutual
political relationships. Then American president Franklin D. Roosevelt
and the British Prime minister Winston Churchill took the leadership of
convening an international meeting to route out the unnecessary cold war
existing among the nations of the world in the form of fear and panic. As
a result of this international convention, the cross border movement
speed up to some extend. Travel Agency business also gathered
momentum during this time. Wholesale and retail travel agencies with
varied functions came into forefront. The functions of travel agencies
switched from the traditional style to something innovative. Their modus
operandi widened and they began to interfere even in tour operations
business which were considered to be the monopoly of tour operators till
that time. As a result the international arrival and departure statistics
registered a progress. The benefit of this spurt shared among all those
nations which were actively participated in international travel and tourism
business. Like any other industry, dynamism play a pivotal role in travel
and tourism industry also. The innovations in this field through the
introduction of new ideas and strategy reap the harvest as we know, early
bird can catch most fly, and therefore all other members of the group
follow the same path.
SCOPE OF THE STUDY
Tourism and hospitality is assumed to be the siamese twins. Tourism is
potentially the large employment generator along with source of foreign
exchange. Along with this hospitality industry, we should consider travel
industry also. Travel industry has been the biggest contributor of
employment opportunity to the country like India. When travel industry
has been discussing, the supporting agency of tour operation and travel
service provision cannot be ignored. After the covid era, people all over
the world trying to have a comparatively safe employment provider
because most of the traditional job providers subjected to a temporary
setback. Increasing number of travellers especially on the untapped
market like pilgrim centers, honeymoon destinations, cultural spot, etc.
are the wonders of the business. To build a good relationship with
customers are very important because tourism always is a service related
industry. Therefore, every marketing strategy in the field of travel agency
should be directed to meet the requirement of the local people, in the light
of international market. The study about marketing potential is an attempt
to evaluate the growing scope of travel agency business in and around
the countries of the world.
REVIEW LITERATURE
There are some valid publications about the scope, significance and
potential of travel agency business. 'The business of travel agency and
tour operation' written by A.K Bhatia is an authorised book to learn
something about travel agency. It is an integral part of the study about
travel agency which is the fastest growing travel and tourism industry of
the world. The book discusses something about large percentage of
international and domestic travel, the scope and functions of modern
travel agency, various concept of travel agency business in the ground of
experience shared by business professionals in this field. This book
contains some additional features including key terms and
comprehensive outline. The main objective of referring the book is to
provide valuable source of information to the complex travel agency
business. The book discusses travel agency management, functions of
travel agency, itinerary preparation, customer service and
communication, etc. There are so many other publications that will help is
to learn something about the functions of travel agency business. They
are book like 'Travel agency and tour operation'. This book is an
authorised one which have detailed study about the growing trend of
travel business of the world. In India, we have some publications called
'travel agency management operations' written by Aravind Kumar,
'Principles of travel agency and tour operation management' written by
Apsara Saleth, 'travel agency and tour operation - concept and principle'
written by Jagmohan Negi, 'A handbook of International travel agency and
tour operation management. All these books discusses something about
travel industry, impact of globalisation upon travel agency business,
consumerism and technological development in the field of travel agency,
entrepreneurs in the field of travel agency business, cross cultural
strategies and policies of travel agency business, etc. Moreover these
literature discusses something about e marketing of travel agency,
international business, online travel agency business, service quality of
travel agency, etc. The book will help us to understand some foundations
about international travel agency business, the relationship between
comprehensive driven factors of travel and tourism business, a proactive
and innovative steps of travel agency business, rule and regulations of
global travel agency business, the problems of online travel agency
business in the light of challenges and opportunities, the scenario of
contemporary tour operation business, marketing strategies of the tour
operation business, etc. In the 21st century, increasing technological
opportunity has effected tourism industry. In order to study the subject in
detail, I have depended secondary data for a critical literature. The pace
technique and marketing strategies are discussed in detail in above said
literature for our ready reference.
PROBLEMS IDENTIFIED
i. Firstly, starting a travel agency business in India like any other
country of the world is a herculian task because we should prepare
some infrastructure like building materials for setting up of a travel
agency. Collecting such infrastructure is a costly affair which cannot
be affordable within a limited amount of money
ii. Travel agency business of India is always subjected to certain rules
and regulations which are nick named as formality. In appearance
they seems to be very simple, but in reality they are difficult to
materialise.
iii. Development of science and technology especially in the field of
communication system is a positive sign for a progressive
society.But indirectly that will affect the travel agency business
because the role of the travel agencies comes to the minimum.
iv. International travel formalities in the form of visa rules, passport
formalities, health check and vaccination definitely discourage the
people's tendency to travel. Inevitabily that will negatively affect the
travel agency business.
v. The competition among the multinational corporation in the field of
travel agency causes to competatively reducing the tally inorder to
attract more business. It will sometimes compelled the agencies to
run their business below than the cost of production.
vi. If a business wanted to survive that should be updated even in the
field of advertisement and promotional strategy. If one sector is
lagging behind and failed to update the business, they will be pushed
back from the main stream. Updation of promotional strategy is a
costly affair and beyond the pocket capacity of an ordinary travel
agent. Moreover, increasing the tally frame beyond a limit cannot be
permitted. Ultimately they are suffering the problem of survival.
vii. Travel agency business of modern days affected by some
international issues like natural calamities, racial issues, spread of
pandemic at an uncontrollable level, etc. Therefore, all those things
ultimately causes through a setback to the travel agency business
which cannot find a solution from an individual level.
REMEDIAL MEASURES
i. Government should ensure adequate and timely interference in
travel agency business in the form of financial concessions, rebate
and subcides.
ii. The visa rules and travel formalities should be liberalised.
iii. Unnecessary control whether it is for domestic or international
surroundings should be avoided.
iv. More importance is to be given to promotional strategies like
advertisement and propaganda for various travel agency related
activities.
v. The unnecessary fear about pandemic situation should be avoided
and here the role of media is very significant.
METHODOLOGY OF THE STUDY
The basis of methodology in travel and tourism depends on the need of
the study and capability of the student to observe, compare and to apply
the tool according to the requirement. The theoretical and methodological
foundation prerequisite of any project study. It is the requirement of the
student that determine the methodology of the study. It is consistant as
well as interconnected. Here, the use of tools for getting data is very
important. The research system of the study should be systematic as well
as comprehensive. The ultimate aim of this data collection should be
highest quality of customer satisfaction; ie., satisfaction of the person by
whom data can be collected. Sometimes, data collection may get the form
of survey. Inorder to get data, we can use the primary method and
secondary methods. Primary data, as we know, is the data collected by an
invigilator for his own purpose whereas the data already published by
someone else is technically called as the secondary data. Successful
completion of any methodology is a part of analytical study tools used by
the invigilator. In primary data, we can use questionaire method, personal
interview method, collecting data through mail method, etc. Regarding the
methods, we entered our attention on interview method for which we need
a focus group. As far as the secondary method is concerned, we must
have some published sources in the form of magazines, journals, project
report prepared by someone else, publications on the part of department
level, social media, blog or other sources, etc. which among them can be
selected depend upon the requirement of or the purpose of the study.
Whatever may be the source, make sure the credibility because no
speculation in this regard will be permitted because there is no room for
speculation in a scientific study. For the specific qualitative research data,
visual methods, written narratives, document published, some field note,
etc. can be used. The traditional style of structural interviews sometimes
assumed to be inadequate and outmoded. Therefore, more significance
is given not for the tool, but scientific application of the same. For visual
clarity and reliability we can use the statistical weapon like diagram graph,
pictorial representations like bar diagram, histogram, pie diagram,
skewness and kurtosis, etc.
LIMITATIONS OF THE STUDY
i. Lack of adequate and timely data
ii. Inadequate and unscientific data sources.
iii. Insufficient time to gather precious details about the topic.
iv. The dearth of valuable journals and publications about the subject.
v. Lack of expert opinion to depend upon.
vi. The travel agencies are reluctant to disclose the secret of the travel
business, therefore there comes the solid data for a scientific
conclusion.
vii. In most academic report available in social media - they are either
half completed or speculative in character.
CHAPTER OUTLINE
CHAPTER 1
DEFINITION OF TRAVEL AGENCY
A travel agency is a private retailer or public service that provides travel
and tourism-related services to the general public on behalf of
accommodation or travel suppliers to offer different kinds of travelling
packages for each destination. Travel agencies can provide outdoor
recreation, arranging logistics for luggage and medical items delivery for
travellers upon request, public transport timetables, car rentals services.
A travel agency's main function is to act as an agent, selling travel
products and services on behalf of a supplier. They are also called Travel
Advisors. The first travel agency in the world started in the year 1841 by
a British citizen, Thomas Cook. In the beginning it was an idea to arrange
a group travel for his friends; for that purpose he decided to negotiate with
the rail transporters to give some concession for the group travelling.
Later, he planned to convert this concept into a business idea. That was
the beginning of the travel agency business. There are two types of travel
agencies viz., retail travel agency and wholesale travel agency.
Also there are offline travel agency, Online travel agency, Business Travel
agency, Leisure travel agency and Niche travel agency on the basis of
their functions.
Travel agencies play a very important role in the tourism industry.
Constantly changing air fares and schedules, and time required to
analyse and choose vacation packages, make travel planning difficult and
time consuming. Consequently, travellers often turn to Travel Agents for
assistance in making the best travel arrangements. The difference
between a tour operator and a travel agent is that tour operator creates
packages and sells them either to the consumer or the travel agent.
Whereas, the travel agent only sells the packages on behalf of the tour
operator and does not create packages. Today, Travel Agencies have
been recognized as a vital component of travel and tourism and have
become an integral part of the travel and tourism industry at globally. The
operation of each travel agency is based on the scope of its activities and
organizational size. The main functions of a travel agency are Travel
information, itinerary preparation, airline and ticketing reservation, tour
packaging and costing, travel insurance, currency services, organising
conference/ conventions, rental car reservations, etc. Some most
important features and importance of the travel agency business are:
CHAPTER 2
TRAVEL AGENCY BUSINESS OF THE WORLD –
A HISTORICAL PERSPECTIVE
Though, traveling is not a new phenomenon for the people, but, traveling
with ease and protection has given a different description to travel. The
development of different mode of transport also added to the expansion
of services of travel agencies which extended worldwide. Unlike, the early
travellers, modern day travellers desire luxury, safety, and good
experiences within a reasonable price tag. It is tried to brief about the
history and evolution of travel agency and the major contributors to the
business of travel agency including contribution of Thomas Cook and
American Express Company, the Birth of Cox and Kings. Travel agencies
in 21st century have been sophisticated with the implementation of new
technologies and establishing networks across the globe. Many travel
agencies have their own websites which give necessary information
relating to the services they provide with respect to travel,
accommodation and others.
CHAPTER 3
TRAVEL AGENCY BUSINESS – RECENT TREND
Travel agency business of India along with other world nations can be
broadly divided into pre pandemic travel agency and post pandemic travel
agency business. Due to the multiple number compared to the earlier
period, travel agency business is not at all cent percent profitable in India.
Technological development always create a positive impact upon the
business success due to the availability of innovative and sophisticated
technology. But in the case of travel agency business, availability of
technology especially application of IT technology in a massive scale
create a negative upon the industry which will root out the possibility of its
existence. Even a mouse click is quite enough for an ordinary person to
use all the services provided by travel agency upon a tie. Moreover, there
are certain special issues that should be faced by the travel agency
business of today. Let us now brief out the remarkable break through
happened on the field of travel agency business in recent times.
CHAPTER 5
THE THREAT, CHALLENGES AND OPPORTUNITIES
OF TRAVEL AGENCY BUSINESS
As we noticed earlier, travel agency business is a competitive one and let
us now brief out the major threat and challenges of travel agency
business.
i. The complexities connected with the growing changed requirement
of the customer is a major problem connected with travel agency
business.
ii. Failure to understand customer requirement and change the modus
operandi accordingly is a difficult task.
iii. The problems connected with booking procedure also stood in the
way of the success.
iv. The major publicity of travel agency business is mouth to mouth
publicity for which they must maintain service standard. But
unfortunately, deterioration of the service standard stood in the way
of travel agency business.
v. Now a days, the mode of operation of every business switched to
online basis. The task of credibility created in this field by someone
assumed to be a challenge to all travel agency sector.
vi. Other than the above said special issues, increase In the running
cost, difficulty of maintaining the business during the slack season,
lack of qualifies and well trained service staff, etc. assumed to be the
additional challenge of travel agency business.
CHAPTER 6
TRAVEL AGENCY BUSINESS –
PRE COVID AND POST COVID SCENARIO
The COVID-19 pandemic has led to more than 4.3 million confirmed
cases and more than 290.000 deaths worldwide. It raised fears of an
impending economic crisis and recession. Social distancing,
self-isolation, and travel restrictions have reduced the workforce in all
sectors of the economy and have led to the loss of many jobs.
Unprecedented global travel restrictions and appeals to stay at home
have caused the most critical disruptions of the global economy since
World War II. Given the international travel bans that affect more than
90% of the global population and widespread restrictions on public
gatherings and community mobility, tourism largely ceased in March
2020. 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. After
months of unprecedented disruptions, the United Nations World Tourism
Organization (UNWTO) reported that the tourist sector begins to revive in
some areas.
CHAPTER 7
CONCLUSION
This study analyses the marketing strategies of travel agencies including
pre pandemic and post pandemic period. Any travel agent needs certain
skills and qualities for performing business related functions effectively.
This will be reflected on the entire business and will be helpful for repeat
business, improves customer loyalty and acts as a promotional tool due
to the positive word of mouth publicity by the satisfied customer.
Technological development always created a positive impact upon the
business success due to the availability of innovative and sophisticated
technology. But in the case of travel agency business, availability of
technology especially application of IT technology in a massive scale
created a negative impact upon the industry which will root out the
possibility of its existence. Switching from traditional methods of
marketing options to modern era techniques is most important in this field
to survive.
Understanding customer’s need and potential, making customers
awareness of the service offered, building trust through communication,
etc. can contribute to the growth and survival of travel agencies. The
product that is sold is unseen and a void thing must be sold which is
service. Being updated with day to day is only valued by the present
generation of travellers and that only will benefit travel agencies.
BIBLIOGRAPHY
Website:
https://en.wikipedia.org/wiki/Travel_agency
https://www.keralatourism.org/
https://ugcmoocs.inflibnet.ac.in/
Books:
“Travel Agency and Tour Operation; Concepts and Principles”
by Jagmohan Negi
“An Introduction to Travel and Tourism” by P.N. Seth
“The Business of Tourism” by A.K. Bhatia
Expert Opinion:
Personal communication with digital and other marketing developers