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Travel Agencies

Roles

3) Travel Agencies

Kong and which thereafter is to take place mainly outside Hong Kong;

(ii) accommodation at a place outside Hong Kong;

(iii) arrangements for an activity (not ancillary to a service referred to in

subparagraph (i) or (ii)) which is to take place outside Hong Kong and which, where included in the package, constitutes a substantial part of it;

(c) it is a package which is available only at an inclusive price; and

(d) the services or arrangements constituting the package have been determined in advance of being made available to the public.

A travel agent shall be liable to pay a levy, the amount of which is specified by the Secretary for Commerce and Economic Development, in respect of every outbound fare received by such a travel agent for the provision of an outbound travel service described above.

(3) Outbound Package Tour

An "outbound package tour" is a term commonly used by members and the public to refer to an outbound travel service specified in subsection (2), which includes the provision to a group or a person of services relating to transport, accommodation, activities, outbound tour escorts, local tourist guides, etc; or of such services as air-plus-hotel packages.

(4) Inbound Travel Agent

According to the Travel Agents (Amendment) Ordinance 2002, an inbound travel agent means a person who carries on business as an inbound travel agent, and such a person is required to obtain a travel agent's licence.

A person carries on business as an inbound travel agent if, in Hong Kong, he carries on the business of obtaining for a visitor to Hong Kong:

(a) carriage, by any means of conveyance, on a journey which is to commence outside Hong Kong and which either:

(i) terminates in Hong Kong; or

(ii) involves the visitor passing through immigration controls before departing from Hong Kong;

(b) accommodation in Hong Kong for which payment is, or is to be, made to that person by or on behalf of the visitor of an amount on account of the cost of that accommodation; or

(c) one or more of the following prescribed services:

(ii) restaurant meals or other catered meals;

(iii) shopping trips;

(iv) local transport in connection with an activity referred to in subparagraph (i), (ii) or (iii).

(5) Tour Operator

A travel agent who operates a package tour.

(6) Members of the TIC

Those Ordinary and Affiliate Members of the TIC only.

Table 5.5 – Definition of Travel Agencies

Source: http://www.tichk.org/public/website/en/codes/codes_of_conduct/part_one/html

(ii) Role and Functions of Travel Agencies

Travel agencies, in their role as “middlemen,” combine tourism activities originally carried out on an unconnected, individual basis, linking customers with tourism service suppliers and thereby promoting the development of the tourism industry.

The function of travel agencies includes the following 3 aspects:

- Providing one-stop tourism products

In the course of travel, customers have a wide variety of needs from the moment they leave home until they return to their home base, which includes food, accommodation, transport, touring and sightseeing, shopping, entertainment etc. To satisfy tourist needs in all respects, tourists have to be provided with relevant tourism products and services from different types of enterprises. This is where travel agencies come in, by linking tourists with tourism service providers. Playing the role of middlemen between the two parties, travel agencies transform a number of purchases made by the original customer from tourism product suppliers into a one-off purchase. They combine all tour operators’ products and provide them to the customer. Therefore, the involvement of travel agencies breaks local boundaries.

- It is the most important retail channel for tourism products

Although core areas of the tourism industry, such as transport, accommodation and catering organizations will also sell their own products/services directly to travellers, in light of developments in modern-day mass tourism, different parts of their tourism products are sold to customers in the retail market via travel services. Therefore, the main function of travel services is to sell tourism products in the retail market.

- Facilitating customers’ tourism activities and promoting the development of the tourism industry Travel agencies bring together many types of services needed by customers, thereby facilitating customer purchases; in addition, travel agencies can book the relevant travel services before the

to plan their journeys.

Besides ‘travel agencies’, other related positions such as ‘travel planners’ or ‘travel consultants’ would also provide travel arrangement services for their customers. Detail descriptions about the general duties of a travel planner and some examples of products and services provided are introduced as follow:

What Does a Travel Planner Do?

A travel planner is an agent that organizes vacation and travel packages for clients. They perform various tasks during and following consultation with a client, such as setting an itinerary, booking flights, arranging for the rental of a car or recreational equipment, all with the focus on making the trip go as smoothly as possible. The main priority for a travel planner is coordinating various aspects of a trip. The job requires multi-tasking, scheduling, negotiating and other interpersonal communication skills.

For vacations, a travel planner must consult closely with their client. In many circumstances, clients who seek the assistance of a travel planner for their vacations do so because they want to purchase a total package rather than having to coordinate each aspect of their vacation themselves. For example, a travel planner will have to determine whether the client should fly, set sail, or head out by auto or rail. Generally clients are able to articulate their precise requirements during a consultation, but in numerous cases the travel planner must draw it out through a question-and-answer session.

Once the method of transit is arranged, a travel planner will then have to find the accommodations that best suit the client's needs. Though this may sound simple, but many clients are not certain what type of place they would like to stay in. Many different factors come into play in determining the most suitable accommodations for a client — price, location in the destination city, proximity to particular attractions or activities, level of luxury and aesthetic sensibility, etc.

Travel planners usually arrange all of the things that their client will do on their vacation and ensure that no scheduling conflicts emerge. The planner will find the activities and excursions that best suit the tastes and interests of his clients, while ensuring that those activities fit within his client's budget.

This requires that the trip planner become familiar with his or her clients and build a level of rapport with them, getting a sense of what they enjoy.

Travel planners are not confined to arranging vacations though. In many instances, they are hired to arrange business trips, which require a high level of coordination and competence. They may also be asked to organize corporate retreats, seminars and conventions, or just about anything else that requires the skills for coordinating travel itineraries for people.

Source: Wisegeek (2012). “What does a travel planner do?”

Retrieved from http://www.wisegeek.com/what-does-a-travel-planner-do.htm

(iii) Factors Considered by a Travel Planner When Planning a Tour

Considerations in tour planning can be numerous. Customer expectation plays a dominant role which gives directions to travel planners on how a tour should be planned. The following table shows some examples of considerations from customers’ perspectives in the tour planning process.

Key Elements in a Tour Factors for

Considerations Hotels Transports Food Itinerary

Preferences/

needs e.g.

star rankings;

location of hotels;

request for certain room types, etc.

e.g.

mode of transport (by sea / air / road / rail);

departure and arrival time, etc.

e.g.

request for healthy food / religious food, etc.

e.g.

guided tour / self tour, etc.

Interest e.g.

Wi-Fi / spa services / pool facilities, etc.

e.g.

in-flight

entertainment and movie system, etc.

e.g.

local and traditional cuisines, etc.

e.g.

shopping / sightseeing / adventure, etc.

Budget e.g.

standard / deluxe room/

suite, etc.

e.g.

first class / business class / economy class, etc.

e.g.

meals are included / excluded in the tour package, etc.

e.g.

entrance fees of theme park and other own expenses that are excluded from the tour package, etc.

Safety e.g.

Is the hotel licensed?

e.g.

history of accidents under the brand, etc.

e.g.

risk of food poisoning, etc.

e.g.

risk of crimes and thefts in certain

attractions, etc.

Table 5.6 –Factors Considered by a Travel Planner When Planning a Tour

- Other ‘destination-related’ considerations include the followings:

• weather condition;

• seasonality and festivals;

• availability of service suppliers, e.g. hotel rooms, flight tickets and theme park tickets,etc.;

• social and political stability;

• exchange rate; and

• terrorism and natural disasters, etc.

(iv) Product Knowledge Required by a Travel Agent

A travel agent should have full product knowledge in the following dimensions:

Product Knowledge Examples

1. Destinations • Climatic conditions;

• Political situations;

• Special events and public holidays;

• Customs, culture and cuisine of country/destination;

• Major attractions;

• Health and other hazards;

• Currency exchange rates;

• Travel regulations and documents; and

• Accommodation facilities, etc.

2. Airlines • Reservation system;

• Route operations;

• Flight schedules;

• Fares;

• Types of airplanes;

• Services offered on board; and

• Connecting flights, etc.

3. Airports • Timings;

• Facilities;

• Custom and security regulations;

• Taxes; and

• Distances from cities, etc.

4. Surface (Rail and Road)

and Water Transport • Time tables;

• Connections;

• Fares and car rentals;

• Facilities; and

• Reservation systems and procedures, etc.

5. Principal Suppliers • Image and financial standing;

• Service offered;

• Quality of service; and

• Commissions offered, etc.

6. Knowledge of Other Aspects • Package tours;

• Local excursions; and

• Special interest tours, etc

Table 5.7 – Product Knowledge Required by Travel Agencies

Source: Indira Gandhi National Open University (2012). Managerial practices in tourism– 1, Unit 23– Travel agencies.

Retrieved from http://www.egyankosh.ac.in/bitstream/123456789/36596/1/Unit-23.pdf

- Other general knowledge and skills required by a travel agent:

• Customer and Personal Service

- Knowledge of principles and processes for providing customer and personal services. This

• Geography

- Knowledge of describing the features of destinations, including their physical characteristics, locations, interrelationships, and distribution of plant, animal, and human life.

• Sales and Marketing

- Knowledge of showing, promoting, and selling products or services. This includes marketing strategy and tactics, product demonstration, sales techniques, and sales control systems.

• Transportation (Other than human)

- For example, knowledge of moving goods by air, rail, sea, or road, including the relative costs and benefits.

• English Language

- Knowledge of the structure and content of the English language including the meaning and spelling of words, rules of composition, and grammar.

• Clerical

- Knowledge of administrative and clerical procedures and systems such as word processing, managing files and records, stenography and transcription, designing forms, and other office procedures and terminology.

Source: Careerplanner.com (2012). Retrieved from http://job-descriptions.careerplanner.com/Travel-Agents-5.cfm

(v) Accessing Relevant Information About a Destination or Attraction and Presenting the Information to Tourists

In most cases, customers who approach travel agencies usually enquire about various information of a particular destination or attraction. For example: rates, schedules, location, facilities and services, availability, booking procedures, issuing of tickets/ vouchers, travel insurance and currency, etc.

Besides some basic information that can be easily accessed through the use of information technology (I.T.) such as global distribution system (GDS), agency websites and homepages of National Tourism Office (NTO) of different countries, agency staff usually utilize their own knowledge and experience in answering the questions of their customers about any destinations. Practically for some travel agents which operate outbound tours, counter staff are required to take the role of tour escorts as parts of their duties. These “first-hand” experiences gained by agency staff enable them to share some useful and up-to-date information to customers who may have some enquiries about their intended destinations.

Training is another way which helps agency staff to equip themselves with some essential knowledge of destinations. Instead of organizing some in-house training, staff is always encouraged to read various printed materials, such as destination booklets provided by tourism organizations and itineraries of packages prepared by the product & development department. These kinds of printed materials are especially useful as means of information and as well, promotional items to be presented to customers in case of their enquiries.

(vi) Merits of Using Intermediaries (Travel Agency)

There is usually an intermediary between the supplier and the customer in all channels of distribution.

Although tourism industry suppliers such as airlines, hotels, restaurants and car rental companies may reach their customers directly, they can also use the distribution services provided by one or more intermediaries. The advantages are:

• offer suppliers’ services available to large numbers of potential customers;

• serve as a one-stop shop for a wide variety of travel related services; and

• provide clients with information, assistance and personalized advice in making the travel arrangement.

5.2.4. Other Private Sector Facilitators - Travel-related Services 1) Travel Insurance

One important aspect of maintaining “peace-of-mind” while people travel is to purchase travel insurance, especially when travelers are using “special” tickets which are mostly non-refundable. This is because the insured travelers may get a partial compensation in case they are unable to get on the plane due to various reasons. By travel insurance, we usually refer to personal insurance, but in other cases, it is best to include vehicle insurance as well.

Why is it important to buy travel insurance?

It is because travel insurance usually covers the following:

• Medical and hospitalization expenses;

• Personal accident involving loss of life or limb;

• Loss of baggage (including a small amount of cash);

• Baggage delay over 12 hours after scheduled time of arrival (reimbursement for the urgent purchase of basic personal hygiene items such as toothbrush, underwear, basic medication, etc.);

• Cancellation charges in the event of illness, injury or death. This includes non-refundable deposits and tour costs;

• Some cash;

• Personal liability; and

• Losses involved in the event of a curtailment of the journey due to death, injury and illness (nowadays, some insurance companies include strikes, poor weather, hijacking, etc. as well).

Travel insurance is valid for specific periods of time, e.g. “within 7 days”, “under 2 weeks”, “1 month and a year”. It is important that the travelers must make sure they are covered for the entire travel period, or else if anything happens in the period that is not insured, their coverage can be disqualified.

It is essential that the dates of travel are accurate. Please note that different insurance firms have different limits to age (some firms will not cover anyone over 75 years old), and special conditions