Tourism is well documented as the world's largest industries, employing more than 235 million people worldwide and generating some 9.2% of global GDP. Tourism is the fast growing and dynamic industry all over the world. Tourism means the principle of travelling for pleasure and entertainment, education and research. Many people are in the habit of travelling over different countries in order to see the places of their respective interests like the structures of sculptural beauty, attractive spots of nature and so on. So, we find a lot of foreign tourists in different countries in touristic area.
A travel agency is mediator or agent between Customer and service provider of tourism industry. It is a retail business that sells travel related products and services to customers on behalf of suppliers such as airlines, car rentals, cruise lines, hotels, railways, sightseeing tours and package holidays that combine several products. Even though travel agency do not keep stock in hand like other retail business. Tour operator and specially chanellers are also the intermediaries in tourism industry that sells the tourism product to travelers. The tour operator specially sells the tour package holidays designing it themselves.
The income of the travel agency is the commission of sold product given by the suppliers. The profit is the difference between the advertised price which the customer pays and the discounted price at which it is supplied to the agent. This is known as the commission. A British travel agent would consider a 10-12% commission as a good arrangement. With out permission or license given by travel agency, the individual or company can’t sell any ticket in Australia
The operating systems of an office create the sound working environment and increase the efficiency of employees in the organization. The operating system of travel and tourism industry belongs to development of information technology which is equally significant and powerful creating 50 % jobs world wide. It includes the computers, peripherals, data and voice communication lines like telephone mobile radio, TV and equipment and software of all kinds. Here, our main concentration of this report is related to how travel agency operate daily service, what types of operating system are they using for smooth operation of company. The information that we have gathered from different sources will give a concrete figure of our project. The interview with Moon Travel and Aurinko Matka also encourage us to complete this project in right way.
Tourism industry is a combination of service sector as well as production sector that offers theirs product to customer. The gate way of travelers began from the service of travel agency in past but the self service of customer through the internet is decreasing the function of travel agency nowadays. It is both a challenge since it could remove much of their business, but it also provides the additional business opportunities too. The large portions of world’s population who don’t have internet access are still using the service of travel agency. Now the travel agencies are also diverting their business into E- business. The ticket reservation system by internet brings a rapid change in the way of operation of travel business too. The airline company and hotel industry can directly offer services to customer through theirs web page commencing the quality product. The role of travel agency is still valuable even though the function of travel agency is not so wide. People are still concerning travel agency and tour operator for package holidays.
As a part of tourism industry, the travel agency plays a vital role as a bridge to customers and supplier. The e travel agency is an emerging business due the technological advancement. The attractive web page design with all the required information to customers feels effective, efficient, less costly and fast operation. This operative system increases the confidence and empowerment of customer. The fast operation of e-ticket of flight and e-boarding pass before the flight sets a digital age of customers. Electronic travel information and booking facilities are now directly available to the consumer as never before.
The systems that are used in a company for daily activities are known as an operating system. Basically the travel agency book and sell the numerous tickets for tourist in a day. In general the following topics are related the operating system of Travel agency.
3.1 Customer Reservation systems (CRS) and Global Distribution System (GDS)
A computer reservations system (CRS) is a computerized system (Example: Amadeus, Galileo, sabre & Abacus) used to store and repossess information and conduct transactions related to air travel.
(http://en.wikipedia.org) Originally designed and operated by airlines, CRSs were later extended for the use of travel agencies. Major CRS operations that book and sell tickets for more than one airline are known as global distribution systems (GDS). Airlines have divested most of their direct holdings to dedicated GDS companies, who make their systems accessible to consumers through Internet gateways. Modern GDSes typically allow users to book hotel rooms and rental cars as well as airline tickets.
GDS linkup for airlines (source: Frontier Airlines)
3.1.1 Amadeus
In global industry Amadeus is the leading transaction process and provider of advance technology solution in tourism industry and it is also announced for the first market with the availability of IATA's Electronic Miscellaneous document (EMD) for travel agencies. It is the first one to receive the full IATA sign-off. Every GDS providers should ensure the industry's EMD standard for the available to travel agencies in all of ARC (Airlines Reporting Corporation) and BSP (Billing and settlement plan) markets by end 2013.
Amadeus has already announced the availability of its comprehensive EMD solution for airlines with Finn air, implemented 1st of June 2010, which enables the airline to process EMDs through its direct sales channels.
Amadeus is the first in the industry to be compliant with the full solution, it has not only replaced the current tool with the new electronic version to issue documents for standalone travel related services such as lounge access, vouchers, etc.
The company plays important role in worldwide network connecting travel providers and travel agencies with a highly effective processing platform such as reservations, inventory management and operations for travel providers.
Amadeus was founded in 1987 with the partner of air Iberia. It is the world leading technology provider to the travel industry and provides marketing, distribution and it services world wide. It collects 2.5 billions euro revenue annually and it covers 49.2% market share all over the world.
3.1.2 Sabre
Sabre is second popular computer reservations system/global distribution system (GDS) used by airlines, railways, hotels, travel agents and other travel companies. Sabre GDS is a unit of Sabre Holdings' Sabre Travel Network division. It covers 44.7 % market share.
3.1.3 Galileo
Galileo Its global distribution services and functions to partnership reduce operating costs while increasing efficiency, effectiveness, and revenues for travel agencies, corporations and travel suppliers. Galileo provides global distribution system (GDS) services for the travel and tour industry through its computerized systems, leading-edge products and innovative, Internet-based solutions. Galileo is a value-added aggregator of travel inventory, dedicated to supporting its customers and, through them, expanding choices for travellers globally. It covers the 19.7% market share.
3.1.4 Abacus
Since 1988, Abacus is Asia ’s leading provider of travel solutions and services .Abacus is also GDS system. This invaluable attribute has given us in strengthening the distribution of travel materials from hundreds of travel suppliers including airlines, hotels, car rentals and insurance providers. Abacus mixes end-to-end technologies to create a differentiated portfolio of solutions and services driven by insights on how travel business operates in Asia . Abacus has expanded its footprint to 24 markets and over 20,000 agency locations across Asia .
3.1.5 Others
There are a lot of reservation systems which are using by travel agency and airlines company modifying it from previous reservation system. These are Travel span, travel sky and patheo. Now Finn air is using the Patheo reservation system.
3.2 Human resource Management System
Human resource is an essential management part of every business. It is also an operating system of every business activities. Basically the travel agency which is in large size needs this operating system most rather than small one. ICIM is Fast, easy & scalable HR & employee management software for all sized companies. It Offers employee self-service, salary & benefit data management, HR reporting, and on boarding tools. iCIMS clients can save the cost paper and reduced HR expenses by using this system. Barware is also operating software for travel agency (Ref: guest Lecture)
Halogen Software has established itself as the leading provider of employee performance and talent management solutions. With just a few mouse clicks, create professional quality employee appraisals, multi-mater assessments compensation adjustments, succession as well as training and development plans that align with your organizations strategic goals
3.3 Accounting System
Every travel agency has to update the financial activities for internal and external uses. The most common accounting operating system in south Asia is ‘Tally’.
As we have known that the Moon travel agency is using PA Sales accounting system.
As we have known that the Moon travel agency is using PA Sales accounting system.4. Case company
4.1 Moon Travel Agency
Our Interview was carried out the fact of operating system travel agency called Moon Travel which is situated at Hämeentie 1 in Helsinki
The moon travel agency is small travel agency including three acting staffs managing director, sales manager and marketing manager. When we asked the question regarding the reservation system of travel agency he told us that there are lots of reservation systems, and Like Amadeus, Abacus, Galileo, sabre etc, but the company is using only one Amadeus CRS system for the Booking purposes and they are using PA Sales accounting software for the Accounting.
The web page of company is traditional so they are planning to make better so it is still under construction. We are not able to get the exact data of customer who are using the internet service and directly purchase the ticket from shop.
He didn’t reply us directly. He wasn’t so sure whether E-Ticket or Tour Package could be the new trends for future trends, because according to his analysis and observation he was really confused.
Last but not least, technological growth of e-commerce and new transportation are suddenly increasing, but in reality only 5% global population use on-line services. So in the future it could be 70% and 30%.
It was very informative interview with this guy from Moon Travel Agency. The respondent was in open format. In open-ended questions, the respondent can formulate his own answers. In order to make our interview more interactive, we used open format for designing our questionnaire, so the clear wording of individual question is very essential.
And we talked about the type of travel package and services that would be offered to customers and he mentioned that the visitors all the time put safety first; any product related. In spite of that, professional services are most imperative for travellers. After that we made connection with Finnish market in order to know Finnish customers would demand. He just simply pointed out that “Finns like the sun!” On the other hand, the consciousness of eco-tourism is still a mainstream. Firstly, the governments are concerned about and promote eco-tourism. Additionally, tourism is considered to be extremely climate-sensitive economic sector similar to agriculture. The destruction of the environment has already had a major impact on this sector, among other things like natural disasters affected by environment ruin. As a consequence, the main aim to tourism operators nowadays is to manage their operation in an environmentally a socially sustainable way through the use of environmental management tools.
4.2. Aurinkomatkat
The Aurinkomatkat is not only the travel agent but also the leading tour operator of Finland which headquarter is situated in Helsinki Helsinki , Lahti , Oulu , Tampere and Turku UK UK
The web page is initial mage of every customer so the perception about the webpage of the company is generally Prices well seen during booking and it is easy to use but something goes wrong in the booking and customer doesn't know. She also focused more online-payment options is necessary in web page.
As a perspective of customer, she presented that around 50% of our customers book their holidays through our website. The online booking is a growing "trend" and the percentage will for sure grow in the coming years. However, there are still a big group of customers who prefer direct customer service and visit our stores or call our call centre for bookings.
When we talk to the future trends of customer buying ticket or tour package she told us that people are more and more interested in customized products, tailored according to their own needs and wishes. The packages are still "a trend" and people realize that it's easier to let an agency customize the packages. This way the client doesn't need to worry about the planning before or during their holiday.
Since Technology is dominating all medium of service I she also agreed that the accessibility of internet will be a growing up but she still believed that it's important that how the service provider treats customer individually.
5. Challenges of travel agency
There is such sector with out having any challenge. The following emerging challenges are facing the travel agency this time.
· Technological challenge
· Skill manpower
· Empowerment of customers
· Direct link to airlines company and hotel to customer
· Introducing new device or logging application in mobile phone.
6. Future Trends
In recent years the travel industry has been sustained attack for everything from its carbon footprint to its social costs. In current days internet has improved the role of electronic means in discovering the distribution of travel supply. The distribution of inventory from different electronic sources and other channels has been one of the highest priorities of travel industry. Electronic distribution refers the selling and reserving the units of inventory to passenger which are modifying day by day. The modification of Amadeus reservation system is Patheo Reservation System which is using by Finn air nowadays.
GDS is the heart of travel distribution which host static information and provide availability of inventory and rates of various service providers. This data can be gathered by the travel agents from around the world by subscribing the GDS. It also helps to reserve the inventory. Travel agents have traditionally acted as key intermediaries in the travel distribution. According to TIX travel, 2003 Travel agents book 80% of all air travel, 30% of all hotel reservations and 95% of all cruise reservations.
Travel agents are becoming multi chaneller in e-business. They are creating attractive websites and take advantages of e- marketing and social media. From the Forrester Research's Henry Hart veldt says smart agents do not allow technology to beat them but to enable them.
Smart travel agents involved from being ticket writers to business people serving in different niches, such as specific type of traveller or specializing in specific destinations or cruises. The travel industry is supposed to go over $15 trillion worldwide during next 10 years, in which 11% of all consumer travel spending worldwide. The rapid growth of internet e-commerce will sustain online travel sales. Consumer spends billions on the internet and travel which is the fastest growing segment of that trend. In previous 6 or 7 years before people made small purchases only but now people have become comfortable buying things such as cars, home and course travel online. The fastest growing segment of travel agency community is based on home best travel sellers.
If we compare the travelling system with the previous year we can find lots of different change in the system of reservation and booking. Internet made traveller easier for their journey as well as living the luxurious life and comfortable. The overall scenario of the travel agency is going to change like travel agency to e-travel agency. The new logging system in mobile phone will be increased in coming years. The travel package and cost calculation will be appeared with in a few seconds according to customer wish. The agencies will provide the services as faster as than before in effective way.
The network of customers and business world is being narrow day by day. The uses of micro blogs and feedback system will increase as increase the business transactions. The uses of mobile application more and more will start a new trend of ‘Tourism in Mobile
Questionnaire for Travel Agencies.
1. Could you give a brief Introduction of your company?
2. What kinds of operating you are using for reservation HRM and accounting? Like Amadeus............!
3. It is an effective one? Or do you think that it should be more advance? Any problem in this system. Any suggestions!
4. What the customers feel (attractive, informative etc) about the web site design of your company? It is old fashion or now you are upgrading the new way of web design like moving slide, just click once then you get the required information in few seconds and so forth.
5. Do you have any data how many customers used to internet booking to purchase flight rather than shop purchase?
6. How do you suggest what should be best for customers according to target groups?
7. Do you have any connection with social media like Face book, my space or twitter?
8. This sector is growing rapidly day by day so what could the future figure of travel agency in sense of using new technology E-travel agency?
9. What do think what could be the future trends of customer buying ticket or tour package?
10. Since Technology is dominating all medium of service providers, what could be the appropriate medium of service provider?
