Ownership of the T & T industry

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Harry Hales                               Travel & Tourism – Unit 1

Travel Agents

They provide information & advice about travelling; they are normally shops in the high streets.

There are two main types of travel agents they are:

  1. Retail Travel Agencies
  2. Business Travel Agencies

Retail Travel Agencies would be just your normal travel agents that you would have in the high streets. They offer various different products to offer, they have holidays, flights, tours, city breaks, cruises, hotels, car hire etc. You can go to a travel agency and you could do it in two ways when after a holiday, you can go and do all of the research yourself find out where you want to stay, how long for, any accessories you might need like visas or car hire, or you could look at their packaged holidays which include flights there and back, accommodation, and any other required services. Now the packaged holidays also tend to include a further discount and can be cheaper that purchasing everything for your holiday separately. Some of the better known retail travel agencies would be Thomas Cook, Going places and TUI, these are all multiple travel agencies and are scattered all over the UK’s high streets. Their role is to sell you their products in order to make a profit, their biggest area for profit is commission, as most travel agents do not own their own planes, hotels, ferries etc. Their biggest area for commission is the packaged holidays which they put together flights, accommodation, the destination etc. For each packaged holiday they sell they would get 10% commission, below is a list of the other products where they look to make profit in commission.

Travel Insurance – 35 / 40%

Packaged Holidays – 10%

Ferry Booking – 9%

Cruises – 9%

Airline Tickets – 7.5 / 9%

Rail Tickets – 7%

Travel Cheques – 1%

Business Travel Agencies specialise for business clients that normally travel short distances and not for too long. They can arrange the flights & accommodation to the passports and visas. They can also take care of a corporations travel like for example HSBC; a company like American Express could deal and supply them with all their travel needs.

There are three categories that travel agencies fall under, they are:

  1. Independent – Single owner-managed enterprises, normally only 1 outlet for example Lewes Travel
  2. Multiple – Companies that operate a chain of retail outlets under a single brand name e.g. Thomas Cook.
  3. Miniple – Companies with a small number of branches in a particular geographical location, normally up to a maximum of 10.

The Role of an Agent – There are different tasks that a travel agent is expected to carry out they are:

  • Selling prepared packaged tours, individual itineraries and guided tours
  • Arranging transport, selling airline tickets, selling rail tickets etc.
  • Providing and advising an insurance cover and visa requirements
  • Providing the customer with information and advice on Accommodation
  • Handling complaints with customers dealing with the tour operator
  • Advising clients on holiday requirements.

Transport

The different methods of transport around the UK is very good, it is easily accessible to get from one part of the country to another without to much hassle at all, it is also a significant part of the UK tourism industry. The different methods of transport around the UK would include:

  • Bus / Coach
  • Rail
  • Road / Car
  • Air / Plane
  • Sea / Ferry

Bus / Coach – Buses are a very popular, quick and cheap way to travel around. There are a few different types they are; Local buses (for example Brighton & Hove Buses), Inter City Buses (like the Megabus or the Stagecoach), Tour bus, Special Journeys (e.g. school trips), Airport transfers, Coach Holidays, Day trips.

Rail – Is probably the most efficient method of public transport to travel up and down the country, all trains run of scheduled services and there are many different train companies, in London the most popular use of public transport is the Underground tube stations, they are very quick and mean that you can get to almost wherever you want in the city. There are also various popular train companies like Southern trains, Virgin, GNER, the Eurostar and so on. All the tracks in the UK are owned and maintained by National Rail.

Road / Car – The roads in the UK are very good, in the basis that they are maintained well and that you can get from one side to the other or wherever you want to go very easily. If visiting the UK and want to travel around there is the possibility of car hire, the good thing about car hire is that you can go where you want when you want and also it is more “relaxing” so to speak than public transport like buses or trains.

Air / Plane – It is a good way to get around the country, although it is not as big as a city like the USA or Australia, it is still bit of a stressful drive to get from one side to the other also it is very time consuming. There are many airports in the UK, but when talking about domestic flights the most popular would be Gatwick, Stanstead, and Manchester. The big airports for tourists visiting the UK are Heathrow, Gatwick, Manchester, Edinburgh etc. The different companies that you can fly with are British Airways, Ryanair, Monarch, Easyjet, Virgin, Qantas etc. Qantas and Virgin are more long haul airline the fly to the USA and Australia, then there are the budget airlines like Ryanair and Monarch which mainly deal with short haul holidays.  

Sea / Ferry – Many tourists each year visit the UK particularly from countries like France, this is as there is a quick ferry system that takes just under and hour to get from Calais to Dover, and it is also very cheap. The main ferry companies in the UK are P&O which mainly runs from the South-East and the North, Brittany Ferries which has UK stops on the South-West coast (Plymouth, Poole or Portsmouth). You can get a ferry from almost anywhere in Europe to the UK, from countries like Spain, Holland, Scotland, Ireland etc.

Tour Operators

A tour operator puts together all of the components to create a holiday, for example they would sort out the flight to a destination a transfer from that airport to the hotel / accommodation and sometimes they can sort out certain activities particularly if it was a specialist holiday, like going skiing for example. They then put all of these together and sell it as a whole. This is very popular now as it can often prove to be a cheaper and more efficient way, rather than trying to sort the flights accommodation all out yourselves. The main disadvantage however would be that you might not get as much flexibility as if you did research and book all aspects to a holiday yourself.

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The tour operator puts together the packages they then sell the packages through a travel agents, the tour operator still keeps most the profit but the travel agent takes a commission charge which is around 10% for packaged holidays, the customer can then buy the package through the travel agents. The customer does not have to book through a travel agency they can also go direct to a tour operator and purchase from there; this is normally however over the internet, telephone or post.

A few examples of tour operators are:

  • TUI – They are now ...

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