TTM L3

• Travel Agency (TA)


  A type of business that acts as an intermediary or middleman between the tourism products suppliers and the tourists/travelers
• Travel Agency (TA)


  • TA's are private entities that could operate as a sole proprietor, partnership, or corporation
  • TA is considered as one of the most essential businesses in the tourism industry because it plays an important role in the entire process of developing and creating tourism products & services
• Travel Agency (TA)


  • TA is also known as "image builder of a country"
  • TA is an axis of tourism - "the movement of people from one place to another"
  • TA is a commission agent - makes agreement with different service agencies and develops products and sales for customers to gain profit or to collect commission
• Travel Agent


  • Someone who acts as direct contact of a traveler or tourist seeking assistance and planning a destination through the travel agency
  • TA also specialize in a certain type of tour such as adventure travel, educational tour and pilgrimages, cruising etc
  • Some TA associated with travel agency while others work as freelancers
• Tour Operator (TO)


  • An organization, firm or company that buys travel components individually and combines into package tour to be sold directly to consumers or through tourism channels
  • Also known as the manufacturers of tourism products and services
• Tour Operator (TO)


  • TO sometimes called wholesalers. They buy goods in bulk and then retail to prepare a tour package through TA or directly to clients
  • TO generally offers a variety of tour package to provide the needs and wants of different types of tourists & travellers
• Functions of Tour Operator (TO)


  1. Planning a Tour

  2. Creating Tour Packages

  3. Organizing a Tour

  4. Providing Travel Information

  5. Making Reservation

  6. Managing a Tour

  7. Evaluating the Available Options

  8. Promotion

  9. Sales and Marketing

  10. Taking Care of the Problems that may arise During the Tour
• Difference between Travel Agency (TA) and Tour Operator (TO)

  • TA acts as an independent reseller & receives commission for the sales of the tour operators package tour
  • TO purchases travel components from suppliers, forms or single tourist product, & sells them using their own pricing
  • TA is a small to medium enterprise
  • TO is usually large companies
  • TA acts as the distributor/reseller of the tourism products
  • TO acts as the supplier or manufacturer of tourism products
  • TA deals with one component of travel products
  • TO offers a variety of tour programs
• Emerging Technology in the Operation of TA and TO

  • Internet usage
  • Usage of social media
  • Mobile technology
  • Digitalization
  • Big data
  • Artificial Intelligence
  • Virtual reality
• Travel Technology


  Also called tourism technology and hospitality automation. It is the application of the Information Technology (IT) or Information and Communications Technology (ICT) in the travel, tourism and hospitality industry
• Travel Trend


  This is a pattern of gradual change and development of the products and services of the travel industry