Module No.

4: TRAVEL AGENCY & TOUR OPERATIONS

Travel Agency: Introduction, Meaning, Types of Travel Agency, Functions, challenges faced
by Travel Agency and Tour Operators. Procedure for approval of a travel agency & tour
operators (IATA & Govt and body Approval) Travel Documentation: Passport-types,
Procedure to apply, VISA-Types & Documents required for foreigners to visit India. Tour
Operators: Meaning Roles & Responsibilities Types of tour operators, Types of tour
packages. Travel Organizations UFTAA, TAAI, LATO and Its Functions.

Travel Agency: Introduction, Meaning

A travel agent is a person who has full knowledge of tourist product – destinations, modes of
travel, climate, accommodation, and other areas of the service sector. He acts on the behalf of
product providers/principles and in return gets a commission. Technically, a travel agent is an
owner or manager of an agency, but other employees are responsible for advising tourists and
selling packages tours/individual components of travel products.

A travel agent may be an individual /firm or corporation which is commonly known as a

travel agency. An agency means the office of travel agent or organization where all travel
goods and services are assembled and coordinated for the smooth conduct of travel agency
business.
Travel agency is one of the most important organizations in the tourism private sector which
plays a significant and crucial role in the entire process of developing and promoting tourism
in the country or at a destination. It is a travel agency which packages and processes all the
attractions, accesses, amenities and ancillary services of a country and present them to
tourists. That’s why travel agency is known as ‘image builder‘ of a country.

A prospective travel agency is one which makes arrangements of travel tickets (air, rail, road,
and sea); travel documents (passports, visa and other documents required to travel);
accommodation, entertainment, and other travel-related services from principle suppliers. It
may also secure travel insurance, foreign currency for traveling people.
History of Travel Agency
The first Travel Agency of the world was established by Thomas Cook in 1845 in
England. The use of the term travel trade dates back from the early years of the 19th century,
but this should not obscure the fact that what we today describe as travel trade (travel agency
and tour operation business) was taking place much earlier in history.
What’s a travel agency?
A travel agency is a private retailer that sells travel-related products and services to
consumers. This includes package holidays as well as individual holiday elements such as
hotel rooms, flight tickets and travel insurance.
Who is a travel agents?
Travel agents is defined as an individual, a firm or company who makes arrangements on
behalf of tourists in respect of travel tickets, travel documents-VISA, transportation,
accommodation, entertainment, insurance, foreign currency and other travel services from the
principal suppliers and sells to the prospective tourists.

Types of travel agencies

The Travel agencies are classified on the following basis:

I-On the basis of distribution chain

According to the International Institute for the Unification of Private law (UNIDROIT), a
travel agency can be of two types.
1. An Intermediary Travel Agency: This type of travel agency undertakes as
intermediary to act for another, in obtaining either a journey or a sojourn possible in
return for the price for the services.
2. An Organizing agency : An organizing Travel Agency undertakes to arrange
for the general public , a journey or sojourn comprising a series of services.
II-On the basis of Functions

1. Retail Travel agency: Retailing mean to sell in small quantity of product /

service to the end users. Retailing refers to all or any the transactions which involve
sale of products or services to the last word consumers. A retail travel agency is a
middleman between producers and tourists who procures goods from the producers
 /wholesalers and sells it to the final consumers. They form a vital link in the channel
of distribution of products/ services because without travel agency the products/
services would not sell nor would it is possible for consumers to buy services of their
choice. They have a way stronger personal relation with the consumers and deal
directly with the people of various tastes and temperaments. They form the last link in
the chain of distribution and give the final selling price to the product/ service. Thus,
the retail travel agencies provide important services and solve the problems of the
producers and wholesalers on one hand and the tourists on the other hand.
2. Wholesale Travel agency: As the name indicates, a wholesale travel agency
operates at large scale and deals in bulk purchase of products/ services and retail
through the retail travel agency. Wholesaler may be defined as the middleman who
operates between the producers (from whom they purchase goods) and the retailers (to
whom they sell goods). Wholesaler refers to any individual or business firm selling
goods/ services in relatively large quantities to buyers (retailers) other than the
ultimate consumers. Thus, the producers who sell their products directly to retailers
may also be regarded as wholesalers. The specialized knowledge and skill of
wholesalers increase the efficiency of the distribution network. The wholesalers
provide important services and solve the issues of both the manufacturers and
therefore the retailers.
III-On the basis of Tourism flows:
1. Outbound Travel Agency: The outbound travel agencies are those travel agencies
which provide product and services to tourists want to visit abroad. Generally, these
travel agencies provide convenient location for the purchase of travel product/ service
besides offering expert product knowledge and ancillary services.

2. Handling Travel Agency / Inbound Travel Agency: This is very old form of travel
agency which is specialized at a particular destination or location. This travel agency
plans and executes of travel packages at destination level. In fact, a handling travel
agency represents tour operators at a destination and supervises the delivery of local
suppliers.

IV-On the basis of Business or leisure

 Leisure Travel Agency: These types of travel agencies manly serve holidaymakers
with package tours.
 Business Travel agency: Today, business travel has become core area for many
travel agencies. Business travel agency arrange travel for business travelers and
corporations and provide extra services such as reporting and travel management.
V- On Basis of Level of specialization

1. Niche Travel agency: Due to the emergence of new form of tourism like
ecotourism, Niche travel agencies have evolved. Niche travel agencies and
 usually small independent travel agencies and specialized in certain products or
certain suppliers.
2. Mass Travel agency: Mass travel agencies are big travel agencies often large
scale/ multinational travel companies. These travel agencies generally offer wide
range of destinations and products/services having large supplier network. These
travel agencies operate on economies of scale.
VI-On the premise of Geographical coverage
Travel agencies is categories on the idea of geographical coverage like
1. Multinational: Multinational travel companies present in many countries,
either through own outlets or partnerships. A multinational travel company is one
which is incorporated in one country (called the house country); but whose operations
extend beyond the house country and which carries on business in other countries
(called the host countries) additionally to the house country. Generally, multinational
travel company has it’s headquarter within the home country.
2. National: agency is serving the requirements of shoppers nationwide. In fact,
when a travel company conducts its affairs in its home country is thought as national
agency. A national agency is commonly taxed differently than a distant agency and
should be required to pay duties or fees on the importation of its products/ services.
Typically, a national agency is in a position to work business in other states or other
parts of the country as per the articles of association.
3. Regional: when a agency is working at regional level is usually called
regional agency. These travel agencies are specialized in certain countries and offer
both leisure and business products/ services.
VII-On the idea of Number of outlets
Travel agencies may be categories on the idea of number of outlets like
1. Multiples: Multiples travel agencies are those travel agencies which operate
nationwide and owned by large agency. These travel agencies are large scale and
think about package holidays. These travel agencies have a sequence of
establishments spread throughout the country under one name. Thus, these travel
agencies have a large number of clients.
Mintiples travel agencies targeta selected region with multiple business line.
These travel agencies have number of branches scattered throughout the local area
but sometimes operate under different trade names. These have head offices and
will acquire independent firms to show them into one in all their outlets.
2. Independent Agencies: Independent travel agencies usually cater for a special
or niche market. Independent agencies have one outlet and frequently specialized in
niche markets. These travel agencies and frequently small travel agencies and
specialized in certain products or certain suppliers like eco-tour package, adventure
tour package or others.
 VIII-On the idea of Business Model

Travel agencies are often categories on the idea of business model like
 Offline Travel Agency: the sort of agencyis that the oldest sort ofagency.
Generally, offline travel agencies operate through physical offices and face to face
customer service/product.
 Online Travel Agency: Online agency serving customers through World Wide
Web channels. Online agency (OTAs) could be a relatively recent innovation and may
be a major growth sector within the global distribution system. OTAs are a style of
distribution mechanism where an oversized number of sellers and buyers are
connected via an online site provided by an independent third party. The leading
international OTAs are:
 Travelocity, owned by Sabre. Travelocity includes the brands lastminute.com,
World Choice Travel and Zuji. within the corporate market, Sabre operates through
the GetThere.com and TravelocityBusiness.com OTAs
• Orbitz which operates the subsequent OTA leisure brands:
1. CheapTickets.com
2. Ebookers.com
3. HotelClub.com
4. RatesToGo.comOn the premise of Size

IX-On the idea of business size travel agencies are often categories like
1. Small Scale Travel Agency: the little scale travel agencies are those agencies
which treat small scale, restricted to a little segment of the tourism market and to a
narrow range of products. Small scale travel agencies are very large in number but
account for atiny low portion of the overall retail tourism business.
2. Medium Scale Travel Agency: Medium-scale agency business is that the
outgrowth of a successful small scale agency. A agency business with 50 or fewer
employees is mostly considered small, while one with 50-150 employees is taken into
account to be medium-sized.
3. Large scale Travel Agency: Large scale agency is that business operation
whose operates at large scale, having an outsized segment of the market and have a
good range of products/ services. .
X-On the idea of Form
On the premise of business forms travel agencies may be categories like
1. Sole Proprietorship: when a agency business is owned, managed and
financed by one man, it’s known sole proprietorship agency. In fact, its debt,
obligations and taxes, are the owner’s personal liabilities, and income from a
 proprietorship is taken into account the owner’s income. this kind of agency is
straightforward to begin and simple to dissolve.
2. Partnership: agency being seen on a partnership basis is jointly owned by two
or more individuals. In other words, when two or more persons agreed to contribute
money or money’s worth and sharing profit/ loss as per the agreement is knowledge
partnership. The partnership style of agency business organization enjoys the
subsequent advantages:
a. easy formation: Partnership is easy to create, inexpensive to ascertain and
straightforward to control. No legal formalities are involved and no formal documents are
to be prepared. Only an agreement is required. .
b. Combined abilities and judgment: The skill and knowledge of all the partners are
pooled together. Combined judgment of several persons helps reduce errors of judgment.
c. Direct motivation: there’s no difference between owner and management. In fact,
ownership and management of business are vested within the same persons. Thus, every
partner is motivated to figure hard and to make sure the success of the firm.
d. Close supervision: Every partner is anticipated to require personal interest within the
affairs of the business. Different partners can maintain personal contacts with employees
and customers.
e. Flexibility of operations: Partnership business is free from legal restrictions and
government control. Partners can make changes within the size of business, capital and
managerial structure with none approval. The activities of partnership business may be
adapted easily to changing conditions within the market.
f. Corporate: Unlike a proprietorship or partnership a company is taken into account to
own its own identity, break free its owners. a company agency is owned by shareholders/
stockholders who are represented by a board of directors. the company variety of agency
is incorporated under the businesses Act. the company has differing types of merits like
indebtedness perpetual existence, which implies it’s a separate person within the eyes of
the law and simple to transfer ownership interests in an exceedingly corporation. The
board of directors can authorize the problem of shares of stock in exchange for investors’
capital infusion into the corporate.

XI-On the Bases of Services

On the idea of services travel agencies is categories like

1. Full-Service agency: A full-service agency could be a agency which offers s

all services / products to both international and domestic tourists. Its operation
includes every kind of tour packages like holiday and business travel on individual or
group based. Further, a full-service agency is also small or large scale concentrating
on both leisure travel and business travel.
 2. Corporate/ Business agency: A Corporate/ Business agency are specialized
solely in servicing the travel needs of the business or corporate clients. Generally, the
merchandise line of corporate agency includes business / MICE and incentive travel.
3. In-House agency: In-House Travel Agencies are growing these days; and in
house agency is simply diversification of product of the many large scale companies
to help the corporate to prepare MICE / incentive travel. However, these travel
agencies are differ from the company agency within the sense that they work with
only 1 corporate account doing mainly business travel but also handling the leisure
side for corporate clients. The Ashok Tour and Travel is that the best example of in-
house travel of ITDC.

4. Speciality Agencies: A speciality Agency because the name indicates is

specialised in an exceedingly particular market, destination or product. These travel
agencies are the results of specific market needs, serving the wants of market
segments like senior citizens, incentive groups or adventure travellers. Generally,
these travel agencies are intermediaries between the retail travel agencies and also the
tourists and are referred to as specialty channelers. These travel agencies may
represent either the customer or the supplier and include incentive travel firms, MICE
planners/ association executives, and company travel offices. Moreover, incentive
travel companies put together and sell travel as an incentive to extend sales.
Sometimes these travel agencies sell their ability to style, promote, and manage
incentive travel programs.

Functions of Travel Agency

1. Travel Information: A retail travel agency provides necessary travel
information to the general public. The intending tourists come to the office of the
travel agent and seek information regarding their proposed visit. The travel agent
should be a very knowledgeable man and should supply up to date and concrete information
relating to travel.
He must have great communication skill and he should be thorough in the art of
catching the potential customers. The knowledge of foreign language is a desirable
qualification for those working in a travel agency.
2. Preparation of Itineraries: A tourist journey involves preparation of different
types of itineraries. There are different means of transport with their respective
advantages and disadvantages. A travel agent advises the potential tourist to choose
the most convenient course.
3. Liaison with Providers of Service:A travel agent should maintain constant
contact with the providers of various services like the transport companies, hotel
managers and providers of surface transport like motor cars from airport to hotel and
for sightseeing etc.
4. Ticketing: Selling tickets to tourists for different modes of transport like air,
rail and sea is a very important function of a travel agent. Ticketing is not an easy job
as the range of international air fares is very complex.
 Computerised Reservation System (CRS) has revolutionised the reservation system
both for air and train tickets and also a room in a hotel.
5. Provision of Foreign Currencies: Provision of foreign currency to an
intending foreign tourist is an important function of a travel agent. The Government
of India allows an Indian traveller going abroad 10,000 US $. The travel agent will
arrange for the purchase of foreign exchange on behalf of his intending travellers.
This facility will save a lot of time and harassment for the intending tourists.
6. Insurance: Insurance for personal accident risks and risk for loss of baggage
is an important function of a travel agent. The idea of buying a package of travel,
accommodation and perhaps some ancillary services such as entertainment became
established in Western Europe in the 1960s. By 1970, tour operation had become a
full-fledged part of tourism. Its growth was spectacular. It succeeded in reducing the
real price of travel abroad, in doing this; it brought holidays abroad to a segment of
the market not reached by conventional methods of taking a holiday.

Challenges faced by travel agencies

1.Building and Maintaining the Credibility of Online Presence.
2. Maintaining own Service Standard.
3. Make Booking Procedure more Convenient.
4. Dealing with Duplicate Data Entries.
5. Providing Services as per Specific Requirements.
6. Expense Management
7. Tedious Operational Management
8. Knowing Clients’ Requirements.
9. Maintaining Cash Flow
10. Coping with a Flood of Enquiries

Procedure for approval of a travel agency & tour operators (IATA & Govt and body
Approval)
i) The application for grant of recognition / renewal or extension shall be in the
prescribed form and submitted in duplicate along with the required documents
ii) TA should have a minimum Paid up Capital (Capital employed) of Rs. 3.00
lakh for rest of India and Rs. 50, 000/- for the agencies located in the North – Eastern
region, remote and rural areas duly supported by the latest audited Balance Sheet /
firm’s Statutory Auditor’s certificate
iii) TA should be approved by International Air Transport Association (IATA) or
should be General Sales Agent (GSA) / Passenger Sales Agent (PSA) of an IATA
member Airlines.
iv) TA should have been in operation for a minimum period of one year before
the date of application.
v) The minimum office space should be at least 150 sq. ft for rest of India and
100 sq. ft for hilly areas which are above 1000 meters from sea level. Besides, the
office may be located in a neat and clean surrounding and equipped with telephone,
fax and computer reservation system etc. There should be sufficient space for
reception and easy access to toilet facilities.
vi) TA should be under the charge of the Owner or a full time member who is
adequately trained, experienced in matters regarding 2 ticketing, itineraries, transport,
accommodation facilities, currency, customs regulations and tourism and travel
related services. Besides this, greater emphasis may be given to effective
communication skills, knowledge of foreign languages, other than English.
There should be a minimum of four qualified staff out of which at least one
should have Diploma / Degree in Tourism & Travel Management from a
recognized University, IITTM or an institution approved by AICTE. The owner of
the firm would be included as one of the qualified employees.
The academic qualifications may be relaxed in case of the other two staff
members who are exceptionally experienced personnel in Airlines, Shipping,
Transport and PR agencies, Hotel and other Corporate Bodies and those who have
worked for three years with IATA / UFTA agencies and also those who have two
years experience with MOT approved Travel Agencies.
For the Travel Agents / Agencies located in the North – Eastern region, remote
and rural areas, there should be a minimum of two staff out of which one should
be a qualified employee with a Diploma / Degree in Tourism & Travel
Management from a recognized University, IITTM or an institution approved by
AICTE. The owner of the firm would be included as one of the qualified
employees.
vii) TA should be an income-tax assessee and should have filed Income Tax
Return for the current assessment year.
viii) For the monuments protected under the Ancient Monuments and
Archaeological Sites & Remains Act, 1958 (24 of 1958), the TAs should deploy /
engage the services of Regional Level Tourist Guides trained and licensed by
Ministry of Tourism, Government of India or other guides authorized by the
Government of India or under orders of the Hon’ble Court(s). For other monuments
and destinations, the guides authorized under the orders of the appropriate authority, if
any, of the concerned monument / destination should be deployed / engaged by TAs.
ix) For outsourcing any of the services relating to tourists, the TA(s) shall use
approved specialized agencies in the specific field of activity.
9. TA would be required to pay a non-refundable fee of Rs.3, 000/- while applying for
the recognition and renewal of Head Office as well as each Branch Office. The fee
would be made payable to the Pay & Accounts Officer, Ministry of Tourism in the
form of online payment.
10. The TA should adhere to the tenets of the Code of Conduct for “Safe &
Honourable Tourism” for which the following action would have to be taken:
 (i) A signed copy of the pledge of commitment towards “Safe & Honourable
Tourism” should be attached with the application. The pledge is attached in English &
Hindi as Annexure I & II, respectively.
(ii) On the day a staff member joins the TA, he / she would be required to take / sign
the pledge. The pledge would be incorporated in the appointment letter / joining
report of the staff.
(iii) Two focal points would be nominated (i.e., from HRD, security side etc.) at the
time of applying for approval by the TA in the case of organizations which have more
than 25 personnel. In the case of TA with less than 25 personnel, one focal point
would have to be nominated.
(iv) The training would be provided to the staff of the approved TA by MOT under
its Capacity Building of service Providers (CBSP) scheme in connection with “Safe &
Honourable Tourism”. The focal points of the TA would be trained first within first
six months of MOT approval. Subsequently, the trained focal points in turn would
impart further in – house training to the staff which would be arranged within next six
months.
(v) The Pledge of Commitment towards “Safe & Honourable Tourism” would have to
be displayed by the TA prominently in the front office area / lobby of the TA.
(vi) The signatories of the Code of Conduct would be required to maintain a record of
action taken by them in compliance of the provisions of this para, which shall be kept
in their office & shown to the Committee(s) at the time of renewal.

11. The recognition / renewal would be granted to the Head Office of the TA. The
Branch Offices of TA would be approved along with the Head Office or subsequently,
provided the particulars of the Branch Offices are submitted to MOT for recognition
and concerned RD for renewal or extension and accepted by it.

12. The TA so granted recognition / renewal or extension shall be entitled to such

incentives and concessions as may be granted by the Government from time to time
and shall abide by the terms and conditions of recognition as prescribed from time to
time by the MOT, GOI.
13. TA would have to report action taken by them in their Annual Report which shall
be kept with them & shown to the Committee(s) at the time of renewal.

14. Even though the scheme of granting approval of recognition / renewal or extension to TA
is voluntary, in nature, there is a need to have a pro - active role of MOT and Travel Trade to
ensure that more and more Travel Agencies seek approval and then service the tourists. There
is also a need to educate the stakeholders as well as consumers against the potential risk of
availing services through the unapproved TA (s).
15. It shall be mandatory for an approved TA to prominently display the Certificate of
approval of recognition / renewal or extension given by MOT in the office by pasting it on a
board or in a picture frame so that it is visible to a potential tourist.
16. The decision of MOT, GOI in the matter of recognition / renewal or extension shall be
final. However, MOT may in their discretion refuse to recognize / renew or extend any firm
or withdraw / withhold at any time recognition / renewal or extension already granted with
the approval of the Competent Authority. Before such a decision is taken, necessary Show
Cause Notice would invariably be issued and the reply considered on merit. This would be
done after careful consideration and generally as a last resort. Circumstances in which
withdrawal is effected would also be indicated.

Travel Documentation:
Passport-types,
Passport is an authoritative document issued by a national Government to citizens for
proving identity while traveling abroad. More broadly, Passport is a document to passing
ports of another nation or country, which means a person who used to prove his identity and
citizenship by showing a document when passing (traveling) one port to another port. This
document, passport, normally a small booklet called Passport (pass-port) must have verified
and certified information identifying the holder such as address, date of birth, profession,
photograph, biometric data, endorsement or stamps of departure, arrival and Travel Visa(s) of
visited countries.
Primarily, passport book considers basic travel document to those who travels outside
home country.
Types:
1. The blue passport: The common man of India is issued the blue-coloured passport.
This helps the custom, immigration officials and other authorities abroad distinguish
between the common man and government officials of India holding high ranks.
2. The white passport:Of the different types of passport, the white passport is the
most powerful one. Government officials are the eligible recipients of white
passport. It is issued to persons travelling abroad for official work. The white
passport makes it easy for the custom and immigration officials to identify the
holder as a government official and give due treatment.
3. The maroon passport: A maroon passport is issued to Indian diplomats and
senior government officials. For a high quality passport, a separate application
has to be filed. Such passport holders become eligible for several benefits during
foreign tours. In addition, they do not need a visa for flying abroad. Also, maroon
passport holders are able to clear immigration formalities much faster than
regular people.
4. The orange passport (in the pipeline): The Indian Government has announced its
decision to introduce the orange passport for a majority section of the
population. It is meant to identify a person that has not studied beyond class 10.
Unlike the regular passport, the orange passport won’t have the last page which
 mentions the father’s name of the holder, permanent address and other critical
details. People who are not educationally qualified fall under ECR (immigration
check required) category. It means that every time a person in this category
wants to fly abroad, he/she is required to clear the criteria laid down by the
immigration officials.

Procedure to apply for pass port:

Step 1 Register through the Passport Seva Online Portal. (Click on "Register Now" link on
the Home Page).
Step 2 Login to the Passport Seva Online Portal with the Login ID created in Step 1.
Step 3 Click "Apply for Background Verification for GEP" link.
Step 4 Fill in the required details in the form and submit.
Step 5 Click the "Pay and Schedule Appointment" link on the "View Saved/Submitted
Applications" screen to schedule an appointment.
 Online Payment has been made mandatory for booking appointments at all
PSK/POPSK/PO.
 Online Payment can be made using any one of the following modes:
 Credit/Debit Card (MasterCard and Visa)
 Internet Banking (State Bank of India (SBI) and Other Banks)
 UPI Payment
Step 6 Click the "Print Application Receipt" link to print the application receipt containing
Application Reference Number (ARN)/Appointment Number.
Note: Carrying printout of Application Receipt is no longer required. An SMS with your
appointment details is also accepted as proof of appointment during your visit to Passport
Office.
Step 7 Visit the Passport Seva Kendra (PSK)/Regional Passport Office (RPO) where
appointment has been booked, along with original documents.
VISA-Types
A visa (short for the Latin carta visa, lit. "the document having been seen") is a permit
given by a country that allows someone to go to that country. A visa is a document that is
stamped on a person's passport by an embassy. It names the kind of visit and says how long
the person can stay. Sometimes, people need to go through an interview held at the embassy
before they get a visa.
Types Of visas
 Tourist Visa (T) - Tourist Visa is issued to visit India for tourism purposes.
Tourist visa issued is non-extendable and non-convertible. Change of purpose
is not allowed.
  Business visa (B) - Business Visa is granted to a foreign national who wants
to visit India to establish/explore possibilities to set up industrial/business
venture or to purchase/sell industrial products in India.
 Employment Visa (E) - Employment Visa is granted to a foreign national who
wishes to come to India for Remunerative employment/ Intra-company
transfers in the company.
 Student Visa (S) - Student Visa is issued for undertaking under-graduation,
Masters or other higher educational studies in recognized Universities or
Institutions in India.
 Transit Visa (TR) - Transit visas are issued for changing flights and
travelling to another country. Transit should be the sole purpose and stay
should not be misused for work or business.
 Journalist Visa (J) - All Journalists including photographers/film producer
or director (other than of commercial films), a representative of a Radio or
Television organisation, travel writer or travel promotion photographer etc.
are required to apply for Journalist Visa only, even if the visit to India is for
reasons other than journalism.
 Medical Visa (Med) - Medical Visa is meant for those foreigners whose sole
objective of visit to India is to seek medical treatment in
established/recognised/specialised Hospital/ Treatment Centres in India for
serious ailments.
Medical Attendant Visa is meant for the attendant / family members of the patient coming
to India for medical treatment. The visa is co-terminus with Medical visa of the patient.

 Conference (C) - Conference visa is granted to foreign nationals

for attending a conference /seminar or workshop in India.
 Entry (X) visa - Entry Visa is granted to Persons of Indian Origin, Foreign
nationals married to Indian citizen/OCI/PIO card holder & their children and
Foreign nationals owning property in India.

Documents required for foreigners to visit India.

Requirements during arrival of Foreigners in India

Immigration check is carried out for all passengers at the port of arrival in India. The
Foreigners arriving in India are required to furnish true particulars in the
Disembarkation Card (Arrival Card) as to his name and nationality, his age, sex, place of
birth and address or intended address in India.

Immigration check includes checking of Passport, Visa, Disembarkation Card, entering

foreigner’s particulars in computer, retention of Arrival Card and stamping of Passport
of the foreigner.

Pakistan nationals other than those on Diplomatic Visa (On Assignment), Non-
Diplomatic Visa, SAARC Visa Exemption Sticker and SAU Visa or those who have been
exempted from carrying visa application are required to carry a Visa application form
(duplicate copies) which will be issued in addition to regular Visa on their passport by
the Indian Mission concerned.
On presentation at Immigration check post, they are issued Regular Residential Permit
and are required to report to the FRRO/FRO or concerned Police Station in their places
of stay within 24 hours unless and until they are officially Exempted from Police
Reporting.

Foreigners holding PIO cards-

The foreigners holding PIO cards can gain entry into India if valid PIO card is presented
along with the valid new foreign passport issued in lieu of the passport endorsed on the
PIO card.

However the foreigners are advised to have necessary endorsement of the new passport
from the competent authority on their PIO cards to avoid any inconvenience.

Tour Operators:
Meaning
Tour operator is an organization, firm, or company who buys individual travel components,
separately from their suppliers and combines them into a package tour, which is sold with
their own price tag to the public directly or through middlemen, is called a Tour Operator.
Definitions of Tour Operator
Poyther (1993) defines, “tour operator is one who has the responsibility of putting the tour
ingredients together, marketing it, making reservations and handling actual operation.”
Holloway (1992) stated that tour operations undertake a distinct function in the tourism
industry, they purchase separate elements of tourism products/services and combine them
into a package tour which they sell directly or indirectly to the tourists.
Roles & Responsibilities
Tours operators play a key role in the tourism sector. Tour operators create tourist
products, promote them a finally sold them to tourists.
Tour operators provide the best and competitive price to the tourist. Tour operators
negotiate with suppliers of tourism products such as hotels, airlines and provide the best
possible price to the tourist. Tour operators buy tourist products in bulk and get huge
discounts from suppliers. So that they provide tourist products at a cheap price.
Tour operators organized a tour in the best way. They personalize and make sure each and
every component of the tour is well-taken care. Tour operators provide the best travel
experience during a tour. Tour operators save tourists time and money.
Tour operators provide immediate support systems at the host country as well as a foreign
land. When tourists travel to a foreign land and things get uncertain, maybe its a health or
loss of documents and need to return back or change of travel plan. A qualified tour operator
takes care of all these unseen events with efficiency.
 Tour operator caters to the needs of tourists on the based on their taste of travel. Tour
operator provides all the best available option according to tourist needs and demands
Types of Tour Operators
Tour operators are basically categorized into four types. These are categories on the basis of
their nature of the business and its operations.

1. Inbound Tour Operators

2. Outbound Tour Operators
3. Domestic Tour Operators
4. Ground Operators

Inbound Tour Operators

These are also known as incoming tour operators. Technically, the operators who receive
guests, clients/tourists, and handle arrangements in the host country are called inbound tour
operators. For example, a group of American Tourists is coming through TCI Ltd. to India
and the company makes arrangements and handles the group in India then TCI is called an
inbound tour operator.
ncidentally, the inbound traffic to the country for the last two decades has been decreasing.
Essentially the tour operators need to adopt innovative marketing strategies and should
introduce a special interest tour to cater the special needs of Japanese, Americans, French and
British people.

Outbound Tour Operators

Tour operator who promote tours for foreign destinations, maybe business tour or leisure tour
is called outbound tour operators. For example a group of American tourists going to a trip of
India and Thomas Cook handle arrangement in America like as ticket reservation, hotel
booking etc. then Thomas Cook is called Outbound Tour operators in the context of America
Domestic Tour Operators
Domestic tour operators are those who assemble, combine tourist components into inclusive
tours and sell it to the domestic travelers. In general, these tour operators provide travel
services within the tourist’s native country.
 The domestic tour operators operate within the boundary of the home country and offer
package tour to the travelers viz. Domestic inclusive tours or independent tours.
Ground Operators/Destination Management Companies
These are commonly known as handling agencies and their main function is to organize
tour arrangements for incoming tourists on the behalf of overseas operators. Let us take the
case of India as a destination that – has a varied culture.
When a tour operator himself promotes beach holidays, wildlife holidays, adventure tours,
heritage tours at the different places, the difficulty arises. It is the ground operator then who
by handling the incoming travelers in the same season but at different places ensures that the
entire operation is according to the package tours or agreements.
Sometime when a handling agency is at a prominent tourist place i.e., Delhi and it has to
make arrangements to Goa, then it contracts (If it has no office of its own) with a local
operator (known as excursion agent) to handle the arrangement on his behalf.

Why Ground Operators?

Obviously, the tour operation companies do not have close contact with suppliers,
governments, destinations and so on. It leaves no choice with the companies but to appoint
handling agencies at the destinations. The main reasons are:

 Introduction of new products or plant to promote an exotic destination.

 Lack of Government regulations.
 Lack of personal contract.
 Language problem.
 The company cannot establish its own branch.

Recognizing the very fact that the reputation, performance, and profitability of tour
company in its own market largely depends on the efficiency and effectiveness of ground
operators, it has because necessary for the company to consider various factors before the
selection of a handling agency, they are:

 Size of business
 Professional staff
 Length of business
 Area of operation/Product line
 Market share

Functions of Ground Tour Operators

Over the years of functions and activities of the destination, companies have changed
drastically to cope with the changing environment of the tourism industry. In fact, today’s
destination companies have become more professional and are bound to provide personalized
travel services to the tourists. The following functions are performed by ground tours
operators:
  Land arrangement
 Contract and Negotiate with other vendors
 Handling of Arrival and departure procedure
 Planning and organizing local package tour
 Escorting the tourists
 Providing market information
 Costing and pricing package tour

Practically, if we see the working of the travel agencies and tour operators in the industry
we find that most of the organizations are performing different types of activities like the
retail travel agency, wholesale travel agency, and tour operators.
Conclusion: The travel agency business is no longer an amateurism. Over the last two
decades, the pattern and structure of travel agencies have changed to meet tough challenges
in the international market. Today, small-scale agencies are finding the travel industry
increasingly complex.

Thus, the small and medium scale travel agencies are disappearing or merging or falling
instead of rising. On the other hand, a new concept has also emerged i.e. tour operation
business. The tour operation business is new but a maturing business at the global level.
Difference between Travel Agent and Tour Operator

1. A travel agent is a person who has full knowledge of tourist product –

destinations, modes of travel, climate, accommodation, and other areas of
the service sector. He acts on the behalf of the product
providers/principals and in return get a commission.
2. Tour operator is an organization, firm, or company that buys individual
travel components, separately from their suppliers and combines them
into a package tour, which is sold with their own price tag to the public
directly or through middlemen.
3. Tour operators are like wholesalers and travel agents are the retailers.
4. A tour operator makes the package holidays up and the travel agents sell
them on.
5. Tour operator taking up the bulk of the responsibilities and his fee is
obviously much greater than a travel agent.
6. A tour operator has the responsibility to look after the finer details of a
vacation or tour such as hotel, accommodation, meals, conveyance, etc.

Tour Packages
Package holidays, popularly known as a tour package or simply the word ‘tour’ in the
travel and tourism industry refers either to a package tour escorted or not escorted by
the tourist guide.
When we say tour package, it means a pre-arrangement, prepaid trip that combines two
or more travel components like airfare, airport transfer, accommodation, and other
services. Practically, to define the tour package concept is complex one rather
understand.
Types of tour packages

1. Independent Tours
2. Escorted Tours
3. Hosted Tours
4. Incentives Travel/Tours
5. Freedom Tours

Independent Tour
Independent tours are prepared/formulated for those tourists who want to travel
independently. The components of such tours are air travel, air transfer, accommodation,
travel documents, sightseeing, boat riding, entertainment, and other travel services.
However, in some cases, the tourists are free to purchase every single component
separately. Thus, this type of tour provides the tourists considerable freedom to plan the
activities according to their own choice.
An independent tour may or may not be an all-inclusive tour. Therefore, tour price varies
depending on the type of air travel, air transfer, accommodation and is inclusive of other tour
components. The foreign independent travel (FITs) and domestic independent travel (DITs)
are examples of an independent tour.
Escorted Tour
When a travel agency includes the services of a well educated and trained tour manager in its
package, the tour is called an escorted tour. Basically, escorted tours are meant for those
travelers who are planning to visit a foreign country first time.

The escort’s responsibilities and duties are to provide comprehensive information and
assistance to the group or individual traveler, at the origin, en route and the destination place.
The excursion tours are the example of escorted tours.
Hosted Tours
A hosted tour means when an agency utilizes the services of another agency at a particular
destination. Suppose a group of French tourists is coming to India. When the group arrives in
India, they are greeted at the airports by TCI, which assists them in clearing their baggage
and transfer them to the hotel.

Travel Organizations UFTAA Their tour-host (TCI) is available to offer device and
information about the local attractions and entertainment. Further, when the group arrives at
another designation in India, a different travel agency greets them at each tourist spot. Thus, a
hosted tour provides the tourists maximum level of pre-arranged and personalized services.

Incentives Travel/Tour
It is a motivational programme or a fully paid holiday which is given to the employees by the
enterprises as a reward. Mostly in medium and large-scale companies and usually too distant
destinations to spur them in maintaining their track record, to increase output, improve the
image and moreover to earn the long period loyalty of the employees.
There are a number of the other packages offered by a tour company such as a custom tour an
excursion tour, an adventure, and special interest package tours.

Freedom Tours
Freedom tours are becoming very popular these days among the working class. These tours
are designed as per the choice of tourists. The tourist is free to choose and plan how they
want to travel and enjoy their holidays. These types of tours are meant for that kind of people
who like to decide how, when, and where to travel.
This tourist may an individual, family, group holidays for families and group travel for
business. These tours are promoted and developed by the ORBIT.
Travel Organizations, UFTAA, TAAI, LATO and Its Functions

UFTAA

Universal Federation of Travel Agent Association is an association of travel agents

and tour operators. It is one of the largest organizations in the field of travel and
tourism industry.

Functions:

 Promotion travel sector.

 Promote destination
 Negotiation.
 Co-operate with international bodies.
  Promotion status/development process.
 Help to settle a dispute.
 Up to date informal.
 Develop payment systems.
 Research studies.
 Develop ethics.
 Helps to standardize relations.
 Develops vocational training courses.
 Organize seminars, conferences for the development of technology.
 Helps the members in transferring foreign currency payments to their
suppliers.

UFTAA also negotiates on the behalf of travel agencies with the international
organization like IATA, IHA, IUR, and IRU.

TAAI

Travel Agent Association of India (TAAI) is the largest tourism organization in India
which helps in the promotion and development of tourism. TAAI is the representative body
of the travel industry of India, representing not only the interest of travel agencies but also of
other segments of the tourism industry such as tour operators, hotels, airlines (international
and domestic), transport companies, cruise companies, excursion agents and tourists guides
who are its member.

 To protect the interest of Indian Travel Companies.

 To organize training and development programs for the members.
 To provide the means for collaboration.
 To develop and promote tourism.
 To provide timely, up to date and reliable information to the members.
 To promote ethical practices.

Indian Association of Tour Operators (IATO):-

Over the year the functions of the travel companies have increased considerably. The
travel agencies are no more acting as middlemen between the vendors and tourists. They are
specialized in one product line i.e. tour packaging. Today, they are the manufacturers of
tourism products and are commonly known as ‘tour operators‘.
 To promote national integration, international welfare, and goodwill.
 To take necessary steps in the promotion, encouragements, and
development of tourism in the country.
 To develop, promote, and encourage friendly feelings among the tour
operators and travel agents/agencies.
 To protect the interest of the members.
 To set up and maintain high ethical standards.
 To settle the disputes of the members.
 To communicate and negotiate with chambers of commerce, IATA, DoT,
Ministry of Tourism, and other organizations in other countries.
 To organize the promotional tour with DoT, Airlines, and International
Tourism bodies.
 To institute awards for excellence in the travel trade.
 To assist students with the scholarship to pursue higher education or research
for the development of tourism.
 To undertake such welfare activities as the members cannot take individually.
 To print and publish information material for the benefit of members.