PUSAT PEMBANGUNAN UMMAH KONTEMPORARI

TRAVEL AGENCY MANAGEMENT

CHAPTER 1:
INTRODUCTION TO TRAVEL AND
TOUR AGENCY MANAGEMENT
Prepared by: Pn. Siti Nur Azzyati Binti Saharuddin
Introduction Malaysia Tourism

Malaysia Tourism Malaysia ranked

Industry from in 12th position in International
2013 – 2014 has the UNWTO Tourism also has
positive growth report with positive growth
by +7% Highest Tourist by 4.4%
Arrivals
MOST-VISITED COUNTRIES BY INTERNATIONAL TOURIST
ARRIVALS 2014
Rank Country International Tourist
Arrivals

1 France 83.7 million

2 United States 74.8 million

3 Spain 65.0 million

4 China 55.6 million

5 Italy 48.6 million

6 Turkey 39.8 million

7 Germany 33.0 million

8 United Kingdom 32.6 million

9 Russian Federation 29.8 million

10 Mexico 29.1 million

11 Hong Kong (China) 27.8 million

12 Malaysia 27.4 million

13 Austria 25.3 million

14 Thailand 24.8 million

15 Caribbean 22.5 million

MOST-VISITED COUNTRIES BY INTERNATIONAL TOURIST
ARRIVALS TO ASIA AND THE PACIFIC IN 2014
Rank Country International Tourist
Arrivals
1 China 55.6 million

2 Hong Kong (China) 27.8 million

3 Malaysia 27.4 million

4 Thailand 24.8 million

5 Macao 14.6 million

6 Korea 14.2 million

7 Japan 13.4 million

8 Singapore 11.9 million

9 Taiwan 9.9 million

10 Indonesia 9.4 million

11 Vietnam 7.9 million

12 India 7.7 million

13 Australia 6.9 million

14 Philippines 4.8 million

15 Cambodia 4.5 million

How Travel Agencies Started

THOMAS COOK
Who is he?

First Travel Agent

How does He Start?

1841 a one-day rail excursion from Leicester to Loughborough for 540 members of a
temperance leagua (FOR FREE).
1845 First full-time travel agent, operating train excursions from Leicester.

1846 He chartered a train and steamer for an excursion to Scotland for 330 people.

1851 Cook arranged ocean steamship travel and accommodations for more than
150,000 visitors to World Exposition in London.

1856 He operated the first escorted “grand tour” of Europe.

1860s The company had become a sales agents for many steamship and railroad
companies.
1874 Cook’s introduced the first traveler’s cheques, the financial paper which would
be accepted by hotels, restaurants, shops, resorts and banks.
Chronology of Travel Agents

1822 In 1822, Robert Smart of Bristol, England, announced himself

as the first steamship agent.

1841 In 1841, Thomas Cook began running a special excursion

train from Leicester to Loughborough in England which
happen to be a trip of 12 miles.
1814 - The first specialist in Individual Inclusive Travel (the basic
1898 function of travel agencies) was probably Thomas Bennett
(1814-1898).
DEFINITIONS OF TRAVEL AGENCY, TOUR OPERATOR &
TRAVEL AGENTS

Travel Agency
Travel agency is a commercial enterprise where
a traveler can secure information and expertise,
get impartial counselling, and make
arrangements to travel by air, sea or land to any
point in the world. Travel agency also acts as an
agent for different suppliers or providers of
products and services.
DEFINITIONS OF TRAVEL AGENCY, TOUR OPERATOR &
TRAVEL AGENTS

Travel Operator
travel operator is a person responsible for actual
planning of the trip. He/she is the one who
reserves the tickets, hotels, transportation
destinations and even meals. Sometimes they
might even arrange tour guide to guide you
through your destination. So we can say that a
travel operative offers a complete package.
DEFINITIONS OF TRAVEL AGENCY, TOUR OPERATOR &
TRAVEL AGENTS

Travel Agents
Travel agents is a person or a business
authorized to act on other’s behalf. In this case
travel agents is an intermediary between clients
and tour operative.
ROLE AND CONTRIBUTION OF TRAVEL AGENCY AND
TOUR

Inbound Outbound Domestic

Tourism Tourism Tourism

Employment Visitor
Opportunities Exports
INBOUND TOURISM

What is inbound tourism?

Non-resident or foreigner visits a given country.

Example: German tourists visit Malaysia.
INBOUND TOURISM

• Malaysia inbound tourism statistics in 2014 to

2015 have decreasing.

• Factors of decreasing:
1. Unstable political
2. GST implementation
OUTBOUND TOURISM

What is outbound tourism?

Resident of a given country leaves that country

to visit another one.
Example: Malaysia visit German.
OUTBOUND TOURISM

• Since the deregulation of air industry,

outbound tourism has been increasing.
Date Value Change, %
Date Value Change, %
2014 12,369 1.09 % 2008 6,709 19.78 %

2013 12,236 0.16 % 2007 5,601 31.57 %

2012 12,217 20.01 % 2006 4,257 14.71 %

2011 10,180 22.30 % 2005 3,711 16.77 %

2010 8,324 27.90 % 2004 3,178 11.67 %

2009 6,508 -3.00 % 2003 2,846 -

DOMESTIC TOURISM

• What is domestic tourism?

Residents of one country traveling within that

country and domestic tourism expenditure the
expenditure incurred as a direct result of this
activity.
Example: Malaysia residents travel to Malacca.
EMPLOYMENT OPPORTUNITIES

• Tourism industry generated huge employment

opportunities.

Years/ 2015 2016 2016 - 2026

Types % % %

Employment: 574,000 4.2 6.2% 840,000 3.3%

Direct jobs % jobs pa
Contribution
Employment: 1,576,000 11.4 1,657,0 5.2% 2,385,000 3.7%
Total Contribution jobs % 00 jobs jobs pa
VISITOR EXPORTS

• What is visitor exports?

Money spend by foreign visitors that come to

travel in Malaysia.
TYPES OF TRAVEL AGENCIES

Commercial
Full Service Agency
Agency

Group/Incentive
Inplant Agency
Agency
 Full Service Commercial Inplant Group/Incentive

Types of Travelers All types of Only business and All types of travelers Focus on specific
travelers professional religion and
ethnics
Location Location can be Mostly on business Location can be Location can be
locate anywhere community locate anywhere locate anywhere

Types of Products All types of travel Focus on business All types of travel Focus on specific
package and professional package ethnics and
travel package religion travel
package
Income Various sources 100% from business Various sources More specific to
and professional certain religion
and ethnics

Staff Skill Fully train to Only able to handle Fully train to handle Only able to
handle all types of corporate all types of travelers handle specific
travelers customers ethnics and
religion
 FULL SERVICES

Types of Travel Agency Characteristics

Full Service Agency Types of travelers/customers:

All types of customers.

Location:
Does not have specific location. All location acceptable either in
business communities, resident’s communities, shopping malls or
etc.

Types of products:
Products or travel package is variety including travel package for
leisure, business, cruise, religious, training and honeymoon
package.

Income:
Various sources of travel such as leisure/vacation or business or etc.

Staff:
Fully train and able to handle all types of customers.
 COMMERCIAL AGENCY

Types of Travel Agency Characteristics

Commercial Agency Types of travelers/customers:

Only focus on corporate customers.

Location:
Mostly located in business premises and business
community.

Types of products:
Focus on business and professional travel package.

Income:
Only come from business or corporate people.

Staff:
Only able to handle corporate customers as staff are
insufficiently trained and experience in handle vacation
travel.
 INPLANT AGENCY

Types of Travel Agency Characteristics

Inplant Agency Types of travelers/customers:

All types of customers.

Location:
Does not have specific location. All location acceptable either in
business communities, resident’s communities, shopping malls or
etc. but mostly located in business communities.

Types of products:
Products or travel package is variety including travel package for
leisure, business, cruise, religious, training and honeymoon
package.

Income:
Various sources of travel such as leisure/vacation or business or
etc.

Staff:
Fully train and able to handle all types of customers.
 INPLANT AGENCY

Types of Travel Agency Characteristics

Inplant Agency Types of travelers/customers:

All types of customers.

Location:
Does not have specific location. All location acceptable either in
business communities, resident’s communities, shopping malls or
etc. but mostly located in business communities.

Types of products:
Products or travel package is variety including travel package for
leisure, business, cruise, religious, training and honeymoon
package.

Income:
Various sources of travel such as leisure/vacation or business or
etc.

Staff:
Fully train and able to handle all types of customers.
 DIFFERENTIATION

Travel Agent Characteristics Travel Operator

Retailers Types of Wholesalers
Merchandisers

Sell and administrate tour Plan, arrange, sell, advertise

package. Job Scope and operate tours.

Help clients to choose a suitable
package.
Their jobs ends when you start
your vacation.
Deal with finer details of the trip
Job Responsibilities like lodgings, meals, tickets,
etc.
Their jobs ends when you
Job Duration return home from vacation.

Revenues are fixed and Have variable but limited

predetermined by suppliers. Revenues revenues income and profit
margins.
Charges fees for documentation Sells optional products and
and ancillary services. Extra Income services and makes use of
deposits.
INTERRELATIONSHIP
Consumer Tourism Tourism
Service Services &
Provider Product

Travel Agent Booking &

Advice

Tour Operator Tour Packages

Airline Carriers
Cruise Ship /Carriage
Coach Line
Railway
Resort Hotel
Motel Accommodation
B&B

Tour Guide Ancillary

Excursion Services
Entertainment
Provider