MBA Projects

In plant training report on Flight Raja travels (P).
Ltd, Bangalore
CHAPTER I
UNIT I INTRODUCTION
1 Introduction of Tourism and Travel Industry

2 A Simple Structure of Travel Agency and Tour Operators
3 History of Travel Trade
4 Concept of Travel Agency and Tour Operation
5 Current Issues in Travel Agencies
6 Types of Tour Operators
7 Functions of Travel Agency and Tour Operation
8 Travel Agency Linkages
9 Objective of Report
10 Limitation of the Studies
Department of Tourism Administration Kuvempu University Shankaraghatta.

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In plant training report on Flight Raja travels (P). Ltd, Bangalore
1.1 INTRODUTION OF TOURISM AND TRAVEL INDUSTRY
The beginning of modern tourism can be dated from the second half of the
nineteenth century no one thought of compiling information on travel volume as in
the twentieth century. Tourism was either insignificant or did not materially affect
the life of the people. Countries did not have any passport system. A few years
before the First World War, tourism became economically significant in Europe.
Italy, France, Austria and Switzerland were known to receive half a million visitors
annually though it was only an estimate. After the First World War, we are told that
in 1929, foreign visitors to Austria were about 1 to 2 million, Italy 1.5 million and
Switzerland 1.25 million. Statistical measurement of foreign visitors had started in a
modest way.
But it may be recalled that before World War I no country had formal
immigration control as we have today. Strict immigration controls are a post-World
War II phenomenon.
It was only in the thirties that tourism began to be examined against the background
of economic problems of European countries. The World Tourism Organization
forecasts that international tourism will continue growing at the average annual rate
of 4 %. By 2020 Europe will remain the most popular destination, but its share will
drop from 60% in 1995 to 46%. Long-haul will grow slightly faster than
intraregional travel and by 2020 its share will increase from 18% in 1995 to 24%.
With the advent of e-commerce, tourism products have become one of the most
traded items on the internet. Tourism products and services have been made available
through intermediaries, although tourism providers (hotels, airlines, etc.) can sell
their services directly. This has put pressure on intermediaries from both on-line and
traditional shops.
It has been suggested there is a strong correlation between Tourism

expenditure per capita and the degree to which countries play in the global context.

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Not only as a result of the important economic contribution of the tourism industry,
but also as an indicator of the degree of confidence with which global citizens
leverage the resources of the globe for the benefit of their local economies. This is
why any projections of growth in tourism may serve as an indication of the relative
influence that each country will exercise in the future.
Definition of travel agency

“A business that attends to the details of transportation, itinerary and
accommodations for travelers. The agency acts as a broker, bringing the buyer and
seller together. They do not substitute the service providing information and access
to the visitor and are the middlemen in the purchase of certain services”.
Definition of tourism
"travel to and stay in places outside their usual environment for not more than
one consecutive year for leisure, business and other purposes not related to the
exercise of an activity remunerated from within the place visited".
Hunziker and Krapf, in 1941, defined tourism as "the sum of the phenomena
and relationships arising from the travel and stay of non-residents, insofar as they do
not lead to permanent residence and are not connected with any earning activity." In
1976, the Tourism Society of England defined it as "Tourism is the temporary, short-
term movement of people to destination outside the places where they normally live
and work and their activities during the stay at each destination. It includes
movements for all purposes." In 1981, International Association of Scientific Experts
in Tourism defined Tourism in terms of particular activities selected by choice and
undertaken outside the home environment.
The United Nations classified three forms of tourism in 1994 in its

Recommendations on Tourism Statistics: Domestic tourism, which involves residents
of the given country traveling only within this country; Inbound tourism, involving

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non-residents traveling in the given country; and Outbound tourism, involving

residents traveling in another country.
The UN also derived different categories of tourism by combining the 3 basic forms
of tourism: Internal tourism, which comprises domestic tourism and inbound
tourism; National tourism, which comprises domestic tourism and outbound tourism;
and International tourism, which consists of inbound tourism and outbound tourism.
Intrabound tourism is a term coined by the Korea Tourism Organization and widely
Accepted in Korea Intrabound tourism differs from domestic tourism in that the
former encompasses policymaking and implementation of national tourism policies
Recently, the tourism industry has shifted from the promotion of inbound tourism to
the promotion of intrabound tourism because many countries are experiencing tough
competition for inbound tourists. Some national policymakers have shifted their
priority to the promotion of intrabound tourism to contribute to the local economy.
Examples of such campaigns include "See America" in the United States, "Malaysia
Truly Asia" in Malaysia, "Get Going Canada" in Canada, "Wow Philippines" in the
Philippines, "Uniquely Singapore" in Singapore, "100% Pure New Zealand" in New
Zealand and "Incredible India" in India.
The World Tourism Organization reports the following ten countries as the
most visited in 2007 by number of international travelers. When compared to 2006,
Ukraine and Turkey entered the top ten list, surpassing Russia, Austria and Mexico.
Most of the top visited countries continue to be on the European continent.

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1.2 A SIMPLE STRUCTURE OF TRAVEL AGENCY AND TOUR
OPARATORS
1. TRANSPORTATION ORGANIZATION
• Road
• Rail
• Air
• Sea/water
2. LODGING COMPANIES
• Hotel
• Motel
• Resorts
• Youth hostel
3. TRAVEL TRADE ORGANIZATION

• Travel agency
• Tour operation
4. RECREATION AND ENTERTAINMENT
PUBLIC-PRIVATE SERVICE ORGANIZATION

• Health
• Insurance
• Banking
• Finance
• Training and development
• Tourism and hotel education industries
5. ANCILLARY ENTERPRISES

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1.3 HISTORY OF TRAVEL TRADE
Wealthy people have always traveled to distant part of the world to see great
buildings or other works of art, to learn new languages, to experience new culture, or
to taste new cuisine. As long ago as the time of the Roman republic place such as
Balance was popular coastal resort for the rich. The terms tourist and tourism were
first used as official terms in 1937 by league of Nations Tourism was defined as
people traveling abroad for periods
ORIGINS
The British company, Cox & Kings is sometimes said to be the oldest travel agent in
the world, but this rests upon services that the original bank (established in 1758)
supplied to its wealthy clients. However, the modern travel agent first appeared in
the second half of the nineteenth century. Thomas Cook, in addition to developing
the package tour, established a chain of agencies in the last quarter of the nineteenth
century, in association with the Midland Railway. These not only sold their own
tours to the public, but represented other tour companies. Other British pioneer
agencies were Dean and Dawson, the Polytechnic Touring Association and the Co-
operative Comprehensive Society
Travel agencies became more commonplace with the development of
commercial aviation starting in the 1920s. Originally, the agencies largely catered to
middle-class customers, but the post-war boom in mass-market package holidays
resulted in travel agencies on the main streets of most British towns, catering to a
working class clientele looking for a cheap overseas beach holiday
1.4 CONCEPT OF TRAVEL AGENCY AND TOUR OPARATION

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Travel agent is a person who has full knowledge about tourist product
destinations models of travel, climate, accommodation and other areas of service
sector. He acts on behalf of product provider/principles and in return gets
commission. Technically a travel agent is the owner or manager of an agency but
other employee are responsive for advising tourist and selling package
tours/individual components of travel product. However a travel agent’s job involves
not only making sales but also gathering travel information researching travel
products analyzing options and making recommendations. A travel agent may be an
individual/firm or co-operation, which is commonly, knows as travel agency. An
agency means office of the travel agency or origination where all travel goods and
service are assembled and coordinated for the smooth conduct of travel agency
business, travel agency is one the most important organization in the tourism private
sector which plays a significant and crucial role in the entire process of developing
and promoting tourism in the country or at the destination. It is a travel agency which
packages of processes all the attractions accesses, amenities and ancillary services of
a country and presents them to the tourists. That is why travel agencies are known as
image builder of a country. A prospective travel agency is one, which makes
arrangement of travel tickets
(Air, rail, road, and sea) travel documents (passport, visa and other required travel
documents to travel) accommodation, entertainment and other related service from
the principle suppliers.
1.5 CURRENT ISSUES IN TRAVEL AGENCIES
In some countries, airlines have stopped giving commission to travel

agencies. Therefore, travel agencies are now forced to charge a percentage premium
or a standard flat fee, per sale. However, some companies still give them a set
percentage for selling their product. Major tour companies can afford to do this
because if they were to sell a thousand trips at a cheaper rate they still come out

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better than if they sell a hundred trips at a higher rate. This process benefits both
parties.
Other commercial operations are undertaken, especially by the larger chains.

These can include the sale of in-house insurance, travel guides and timetable car
rental, and the services of an on-site Bureau de change dealing in the most popular
holiday currencies.
The majority of travel agents have felt the need to protect themselves and
their clients against the possibilities of commercial failure, either their own or a
supplier. They will advertise the fact that they are bonded (posting a financial bond
with an organization). In the case of a failure, the customers are guaranteed either an
equivalent holiday to that which they have lost, or (if they prefer) a refund. Many
British agencies (and tour companies too) are bonded with IATA for those who issue
their own tickets, ATOL for those who order tickets in, or ABTA for those who sell
package holidays on behalf of a tour company.
A travel agent is supposed to offer impartial travel advice to the customer.

However, this function almost disappeared with the mass-market package holiday,
and some agency chains seemed to develop a 'holiday supermarket' concept, in
which customers choose their holiday from brochures on racks and then book it from
a counter. However, a variety of social and economic changes have now contrived to
bring this aspect to the fore once more, particularly the advent of multiple no-frills
airlines
THE BOOMING TRAVEL INDUSTRY
 Everyone in India seems to be on the move. Almost overnight the propensity of

Indians to travel within and outside the country has exploded.
 The growing numbers of wealthy Indians, an expanding middle class, and the
boom in low cost carriers have combined to push domestic and international trips
of Indians to an all time high.

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 International outbound trips by resident nationals peaked at around 8.3 million in

2006, according to a recent report by the Pacific Asia Travel Association (PATA)
and Visa International.
 Besides Taj Mahal, drawing a multitude of foreign tourists is India's rich cultural
and geographic diversity which offers a wide range of tourist attractions and
experiences such as leisure, culture, adventure, spirituality, eco-tourism, wellness
and health.
 International tourist arrivals to India are peaking. Over 4.43 million in 2006, up
13% from 2005 (3.92 million) and expected to touch 6 million in 2007.
 If one were to include NRIs visiting India, the total number of international
tourist arrivals in 2007 is estimated to cross 9 million.
 Conde Nast Traveler, a leading travel and tourism journal has ranked India
amongst the top 4 preferred holiday destinations of the world. India is ranked 5
in the Lonely Planet survey of favorite tourist destinations in 167 countries.
 Tourism in India is the third largest foreign exchange earner, accounting for 2.5%
of GDP. It also makes a direct contribution to the economy with significant
linkages to agriculture, horticulture, handicrafts and construction.
 The Indian aviation sector has grown significantly since its privatization. With
competition lowering fares, the volume of air travelers have gone up
dramatically.
 Aviation officials expect the number of air travelers to grow from the present 20
million a year, to over 50 million in 2010. By 2020, the number of airline
passengers in India is likely to exceed that of USA.
 With local and international tourist's population going up, the demand for hotel
rooms, across segments, has surpassed supply by leaps and bounds.
 Hotels across the country, in the luxury and business traveler segments, are
already recording close to 100% occupancy during weekdays, with average room
rates shooting up 30-35% and revenue per available room (RevPAR) by 20-25%.

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 Catering to a flourishing travel industry calls for a strong supporting eco system.
Business opportunities will therefore abound for car rentals, taxis, cargo
logistics, aircraft maintenance, travel agents, airport security equipment, catering
services, pilot training institutes, staffing companies, airport infrastructure and
related areas like on-line travel portals etc.
 The online travel industry grew at 126 per cent from a base of $295 million in
2005 to $796 in 2006. In 2007, it is expected to record a 66 per cent growth to be
a $1,325 million industry and by 2008, will grow at 51 per cent to be a $2,004
million (around $2 billion) industry.
 Take for instance, tourist information portals. Today, although the online travel
sector is a mere 2.2 per cent of the domestic travel market, it is set to grow from
$796 million in 2006 to around $2 billion by 2008.
 In parallel, the Indian consumers are getting comfortable using the web and
mobile to do their travel related research and planning and thereby becoming
more informed buyers of travel products and services.
 This trend paves the way for creating new technology solutions that can capture
customer interest.
 However, unlike in the West, most Indian consumers are not yet ready to
complete their entire transactions on-line. Smart entrepreneurial companies will
therefore have to find ways to contextualize Indian travel services to capture the
new smart buyer who is still Indian at heart.
Travel agency Commissions
Most travel agencies operate on a commission-basis, meaning that

compensation from the hotel, airline, and customer is expected in form of a
commission from all bookings. Most often the commission consists of a set
percentage of the sale.

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In the United States, most airlines pay no commission at all to travel

agencies. In such case, the agency adds its profit margin or service fee to the net
price.
1.7 FUNCTIONS OF TRAVEL AGENCY AND TOUR OPERATION
Today, Travel Agencies have been recognised as a vital component of travel

and tourism and have become an integral part of travel and tourism industry at
global. They Account for more than 90% of international and 70% of domestic
tourist traffic. Further, more than 60% of all travel agency revenues are derived from
the business travel. Most travel agencies sell both commercial and leisure travel but
there is many travel agencies which only specialize in one sector or the other.
The operation of each travel agency is based on the scope of its activities and
organisational size. In this chapter we will discuss the functions of a large scale
travel' agency that performs all types of activities such as retail TA, whole selling
and tour operations etc. The main functions of a large scale travel agency.
1. Travel Information
What ever the size of a travel agency, it has to provide necessary travel
information to the tourists. This task is utterly difficult and very complicated. A
travel agency must give up-to-date, accurate and timely information regarding

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destinations, modes of travel, accommodation, sight-seeing, shopping, immigration,

passport, visa, custom clearance and procedure, health and security rules and about
various permits required to travel in particular areas etc. Further, we can say that
travel agencies are image builders of a country. Therefore, they should present an
accurate picture of various tourist resources and potentials of a country to the
tourists.
2. Itinerary Preparation
The term tourist itinerary is used to identify the origin, destination and all the
stopping points in a traveler(s) tours. It is a composition of various elements and
designed after detailed study of market. Practically, a travel agency prepares two
types of itineraries (a) general itinerary (b) special-tourist-interest itinerary i.e. Delhi-
Agra-Jaipur-Delhi, Pilgrimage tourists, mountain tourists, Buddhist tourists etc.
Preparation of different types of itinerary is a very important, function of travel
agencies/tour operators. A prospective travel agent also gives advice to intending
tourists in various types of tour programmes, which they may choose for their leisure
or commercial travel.
3. Airline Ticketing and Reservation
A travel agency sells variety of tourism products. Airline ticketing and

reservation is still a major source of revenue. Today, recognized travel agencies and
tour operators issue and sell more than 90 per cent of International Air Tickets and
60 per cent of domestic tickets in India. Airline ticketing, however, is not an easy
job, as the range of international Airline fares is very complex, varied and requiring

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complete up-to-date knowledge of various schedules and airfares of airlines

worldwide.
The Computerized Reservation System (CRS) has changed the entire

scenario of travel industry. Today, using this system (CRS) the travel agency may
serve a wide variety of clients and fulfill their needs and requirements. For
preparation and issuing of airline ticket.
4. Tour Packaging and Costing

A tour package is a combination of various tourism services/goods like
transport, accommodation and other facilities at and en route destination. However,
in reality it has only two basic components (a) travel and (b) ground services. Travel
agency prepare a package keeping’ in view the preference of target market, which is
based on different factors like modes of travel, client choice; income, age group,
country and region. After the identification of target market the travel agency
liaisons with service/goods providers and enters into a contract with them.
The costing and pricing of tour packages depend to a large extent on the
ability of a travel agent/tour operator as to how effectively he is able to negotiate
with the principals. Thus, negotiation is also an important function of the travel
agency. The cost of a tour is calculated on the basis of what he has negotiated with
the producers. Some extra cost is added for the unforeseen/further contingencies.
Thus, costing is done by adding each element of cost i.e. transport, accommodation,
sight seeing, guiding, administrative and fixed expenses. For fixing the price of a
tour package, one has to add some percentage of profit margin to the cost (which is
based on organisation objective, pricing policy and competitiveness of the product).

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Once the package is formulated and priced it means that it is ready for sale.
The travel agent/tour operator needs to promote its package so that the targeted
clients may come to know about it and are motivated to purchase it. Technically, this
is known as marketing of tour package, which involves different methods and
techniques.
5. Reservation
It is a very important function of all types of travel agencies. A travel agency
consistently makes linkage with accommodation sector, transport sector and other
entertainment organisations to reserve rooms, and seats in the cultural programmes
and transportation. However, prior to reservation, a successful travel agency must
understand the needs and requirements of the individual clients.
One client may demand a five star deluxe whereas another may want a two
star or a one star or different types of rooms, rates, meal plans and so on. A travel
agency makes a reservation for the tourists by giving complete information regarding
the number of tourists, date and time of arrival, length of stay and what is required
by the individual/crop. Travel agencies use different types of reservation techniques.
However, today Computerized Reservation System (CRS) is widely used today
worldwide to make insistent reservation.
6. Travel Insurance
Some large scale travel agencies perform additional functions to serve its
clients. Travel Insurance protects the traveler(s) against the personal as well-as
baggage losses resulting from a wide range of travel related happenings or problems.
A tourist, who purchases travel insurance (sometimes included in tour packages),
receives a contract, called a policy, issued by the insurance company. The policy is
based on the client(s) needs, price and type of tour etc. Travel insurance generally
covers (a) personal accidents (b). Medical and related expenses (c) baggage loss and
(d) trip cancellation and interruption etc.

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7. Currency Services
Travel agencies/tour operators which are permitted by the RBI and Foreign
Exchange Management Act. 1973 (FEMA) to deal with Foreign Currency, offer
currency services (currency, traveler cheque and other documents) to the intending
clients. This is a very important facility to the tourists as it saves their time and
energy. However, for this the travel agencies charge certain percentage of
commission.
8. Organisation of Conference/Convention
Today, organizing conferences conventions and seminars have become a
profitable business for many travel agencies. Even in some large scale travel
agencies we find separate convention and conference departments to perform this
vital function. Whenever, a commercial organisation desires to hold a
conference/convention to discuss the future plans and strategies of undertaking or to
conduct seminars/training programmes for its employees or to introduce new product
in the market and so on, it contacts the travel agency and asks for the
recommendation of suitable destinations/ venues where such services and facilities
are available. Many travel agencies (Cox and Kings, TCI, Thomas Cook and Sons)
offer a complete convention/conference package including registration of
participants at the venue to be picked up for dropped to the airport/ hotel, overhead
projectors, slide projectors, TV, VCR, information counter, sight seeing etc. The
company(s) executive is always available on the venue during the conference/
seminar period to ensure rapid and quality services.
Technically, when national or international events are announced every travel

agency tries to collect all the relevant details on the events such as date, duration,
place and other formalities. Once the agency knows about these facts it works out a
package plan.

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Generally a Conference/Convention Package includes
• Travel to and from the venue;

• Accommodation at the venue;
• Registration fees and facilities;
• Conference room with audio-visual devices and other services;
• Secretarial services;
• Sight seeing and cultural entertainment, and
• Shopping.
9. Travel Agency as Handling Agency/Ground Operator

Industry experience has shown that the reputation, efficiency and profitability
of the travel company (Indian or foreign) in its own tourist market largely depends
on the performance of its ground operators. A handling agency may be an individual,
a firm or a company making ground arrangement on behalf of another travel
company. Today, the Indian large scale travel agencies acting as ground operators,
for foreign tour companies are TCI, SOTC, Orbit and Thomas Cook etc.,
1.8 TRAVEL AGENCE LINKAGES
Basically a travel agency several two types of clients: business travelers and
leisure travelers. Incidentally the requirements of these tourists are different and an
agency has to assemble or purchase related component from the Principle supplies to
cater their needs. Essentially travel agencies maintain close ties with the airlines
hotels car rentals blank insurance Companies', railways government trade association
foreign tour operator and travel agents ground operator cruise companies and
tourism education Institutes.
a) Airlines

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International Air Transport Association operates a network by which travel agencies

sell airline tickets and receives Commission thus the sale of airline tickets is highly
regulated and strictly controlled. The agency commission range from 5 to 11 percent
but most major airlines offer additional incentives i.e. cash bonuses and over ride
commission. However in some cases when a travel agency purchases air tickets in
bulk the margin of commission will be high. This largely depends on relationship
between the two organizations. The producer of sale of domestic airline tickets is
different from country- to country and even the rate of commission also varies.
Today airline ticketing and reservation is almost entirely automated.
b) Accommodation Companies
Most hotels and other lodging companies including major Indian and international
hotel chains pay commission to the travel agencies, (the rate varies from hotel to
hotel) however hoteliers in dealing with travel agencies are more information and
less regulated than the airline companies Interestingly many hotel and hotel chains
participates in computer reservation system permitting hotel reservation to be made
at the same terminal, which is used to sell airline tickets. The commission received
from hotels is the second largest component of total agency revenue. But if the
purchase is made in bulk than the profit is based on the negotiated prices and
accordingly the profit may be higher or lower.
C) Cruise Companies
The cruise companies are informally regulated by its Own governing body i.e. cruise
lines association which must approve any travel agency that. Desires to sell booking
on behalf of any member of a cruise company the raise companies also offer a
complete package including sea travel accommodation food entertainment and
sometime air travel also. The commission varies room 10 to 20 percent. However
most cruise package tour are sold to the public through travel agencies. It was
Thomas cook who brought first group of foreign tourist in India through sea rout.

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d) Insurance Companies
Today many travel companies have included travel insurance in their package tour
like Thomas cooks. The company insured the travelers to protect them against
accident, loss of baggage and missing flights. Successful travel agency management
has to make close contact with Insurance companies to obtain insurance polices for
its clients. Recently the Oriental Insurance Company has introduced two new travel
policies for domestic as well foreign tourist i.e. 'Suhana Safar' for domestic travelers
And 'Videsh Yatra Mitra' for foreign travelers. Incidentally the foreign policy is an
upgraded version of overseas medical insurance.
e) Banking Companies
Travel agencies offer banking facilities to the traveler like clearance of traveler
cheques and arrangement of foreign currency. Only those travel agencies, which are
authorized by the reserve bank of India under Foreign Exchange Regulation Act
1973, can deal with foreign currency. Banking companies give commission to travel
agencies on traveler cheques and currency exchange.
f) Educational Institutions
An agency's success depends almost entirely on the competence of management and

expertise of the staff. It develops manpower planning in such a way that will help to
conduct on campus selection and match the student to the requirements of the
company. The linkage between travel Companies and tourism education institutions
will solve the problem of human resource requirements of present and future.
Therefore a travel company needs to maintain close contact and interface with
tourism Education intuitions. Many chief executives from the industry are the
members of the advisory board of the intuitions.

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g) Travel Trade Associations
These associations provide a common platform to solve many problems of

the members such as training, common code of conduct airlines commission to any
other. There are a number of travel trade associations like TAAI, ICAO, ASTA,
IATA, and PATA, WTO, that are quite active in the Promotion of travel trade at
global. Essentially every travel company should be these association to avail
financial and non - financial incentives and commissions from the airlines, hotels,
railways etc.
h) Other Organizations
The travel agencies need to maintain close ties with many other organizations
offering travel related service like cultures and entertainment organizations foreign
tour companies' regional passport office, department of tourism both at center and
states sports operators transport operators food and beverage business etc. in fact
these organizations play a vital role in making travel a complete product. Travel
companies provide business to above cited organization and in return receive
commissions. However there are few other originations that help the agency to run
travel business smoothly and promote India as a tourist Destination. Technically a
Travel Company cannot work in isolation but is interdependence with other travel
related enterprises.
i) Inbound Tourism
Most of the travel companies are in private sectors and their main objectives is to
earn profit; in spite of this they play a key role in the promotion and development of
international tourism. In India about 50 percent the established travel companies
handle foreign tourists and other visitors make their own independent arrangements.
k)Outbound Tourism

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Since the deregulations of air industry the outbound tourism has been increasing
rapidly. Today outbound tourist traffic is growing thing at rate of 10 percent. This
indicates that India is the second largest county in outbound tourism. The major
outbound destinations are Europe, UK, Southeast Asia, Greece, and East Asia, USA.
Egypt and Australia. The fun tours of TCI are the Evidence of quality inclusive
outbound package that generally include deluxe class accommodation Indian meals
transportation by deluxe couches Experienced tour escort sightseeing and interaction
with local culture. This will create sound international relationship between the
developing and build better relation abroad.
l) Domestic Tourism
The Indian Travel Companion has offered and continues to formulate flexible and
economical packages to popular holiday- destinations like golden triangle, goa,
shimala, kulu-manali, derjaling, Bangalore, hydrabad, Mysore, Ooty, J&K,
Lakshadweep and many more destinations. In fact they are contributing to the causes
of national instigation.
m) Employment Generation
No other sector of Indian economy has generated huge employment opportunities

like the travel and tourism industry. The industry employee Over 25000 people
directly and thousands of indirectly in India. The world travel and tourism council
forecasts that during the next decade more than 10 million jobs will be created by
travel and tourism industry along across the world economy.
n) Earning of Foreign Currency
The foreign exchange brought to India by the travel companies is a vital

contribution toward the national economy. It is a major factor on India Balance of
payment position. Therefore the government has taken various steps either through

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collaboration or through their own tourist offices abroad, to maximize the tourist
receipts.
o) Destination Promotion Development
Today many travel companies with the collaboration of state tourism corporations
and tourism departments are contributing in promoting and development new
destinations even the government has also provided various financial incentives to
the private sector to promote tourism in the country. The role and contribution of
travel companies have been fully appreciated in advanced countries. But in countries
like India the role and contribution has not been appreciated and recognized due to
the unorganized sector. Still the travel companies have the greatest impact on
account of balance of payment, employment, international understanding and
national instigation.
1.9 Objectives of Training Report
The main objectives of the on the job training programme are mentioned below,
1) To be acquainted with the operational system existing in a travel Agency

2) To analyze and evaluate the working environment and welfare measure
adopted by the organisation and to suggest adequate measures to over come
many of the problems faced by the agency based on the theoretical
knowledge I have gained from the class room.
3) To study the various departments and functions of flight raja travel agency
4) To study the organizational structure and its mission
5) To integrate the theoretical knowledge with the practical exposure of working
environment in the travel agency
6) To find out the problems and hurdles of travel agency business, particularly
at Flight Raja Travel agency.

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7) To suggest some solutions to solve the problems of the agency based on my

theoretical knowledge and observation.
1.10 LIMITATION OF THE STUDIES
Due to the busy work schedule of the staff of the travel agency, I could not able to
meet all the employees. Therefore, I selected a few members randomly to collect
the information. The information was collected by interviewing the employees
personally and made certain queries about the organisation. Secondly, one month
time was not sufficient to study the functions of the agency thoroughly, so I had an
observation study instead of doing the work personally. Most of the employees are
from north India and among them, majority are ladies, so that they have shown some
sort of hesitation to mingle with me. More over I stayed little far away from the
agency, so a major portion of my time spent for travelling.

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CHAPTER I I
COMPANY PROFILE
2.1 History of the Organization
2.2 Departments of the Travel Agency
2.3 Via Partnerships
2.4 Work Experience in Travel Agency
2.5 Company Image

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2.1 HISTORY OF ORGANISATIONS
The travel industry is growing in an exponential manner. The opportunity

here has not even begun to be tapped. The smallest and remotest places in India have
now to be connected. People have higher disposable incomes, want to travel and they
seek the fastest and easiest means to get there.
VIA-Changing the way India Travels
VIA (formerly Flight Raja) is an innovative full service travel company that
has been defining new paradigms in the travel industry. It is the topmost seller of
domestic flight tickets and the leading provider of travel ticketing solutions in India
with a network of more than 8000 agents spread across the country.
A revolution in the travel industry
A trendsetter, innovator and thought leader in the travel domain, VIA is the
only travel company in India that operates with cutting edge technology and a
dynamic business model of B2B focus. With VIA's arrival travel agents and small
entrepreneurs across the country were infused with technology and business
sophistication that resulted in a quantum change in the way the travel industry
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operated. It is widely acknowledged that" VIA has done for the travel agents in India
what Air Deccan did for the traveling customer- changed the way India travels."
Through its growing network of agents present in 450 cities in 28 states of

India, VIA offers the richest blend of travel solutions from Flights to Bus, Train,
Hotel and Holiday packages. Intense customer focus and customer connection
through technology has resulted in phenomenal growth grossing 720+ crores in just a
short while.
VIA's pace of growth is accelerated through mobilizing small investors with
local customers and building a network that is nimble, accessible, effective and
relevant. VIA's presence through its branded stores is so extensive that travelers don't
find it difficult to find a via outlet in their neighborhood, giving a face and personal
touch to technology based ticketing. Not only are travelers happy to deal with their
neighborhood agent they are also happy that he gives smart solutions to all travel
needs - quickly, easily and efficiently.
From metros to the remotest corners of India, VIA envisions a connected world
where people can travel without fear or apprehensions, knowing fully well that they
are being taken care of every step of the way. Flight, bus ticketing .train bookings,
car rentals, hotel bookings, holiday and adventure packages, VIA offers a true travel
experience to the new age traveler.
First of its kind initiatives from VIA
• First company to power flight bookings on mobile

• First to set up flight ticketing through touch screen kiosks in public places
• First online B2B company to provide comprehensive travel services
• First to offer a bus GDS (reservation system) to bus operators
• pioneered the 'travel agent network' model for flight booking in India

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Via -The company

Founded by a team of technologists and travel industry veterans the company
is driven by passion for solving industry problems and empowering people to do
business more efficiently. The company's resources and financial strength provides
opportunities for well thought out initiatives, partnerships and acquisitions that opens
the door to new products and new markets in all product areas.
High profile partnerships
The company is also working closely with central government, state

governments and many leading retail chains to power travel services for them. Via's
travel partners are spread across the globe.
Credible social actor
Via's credibility as a solid actor is largely based on the company's core values,
quality service, and customer friendliness. Internally, the company is focussed on
constant innovation and improvisation.
Via's mission is based on the principle
By creating benefits for our customers, we create benefits for our business
partners,
What the CEO says-

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"We provide the widest network of travel agents-and ticketing channels such
as SMS booking, kiosks, agents, online, etc to our customers in India. We will
continue to use our path-breaking technology to understand their needs better and
service them efficiently. It is extremely important to bridge the demand supply gap in
the travel industry by balancing cost and time." - Vinay Gupta, CEO
Vani Kola, Managing Director, NEA – Indo US Ventures
"VIA is a pioneer in the travel industry. The company possesses a unique and
compelling business model that reflects in its excellent track record. The travel
industry has immense potential to grow in India and VIA is quite capable of
capturing the market with the rich experience of its founding members."
Via Range of products:
1) Via Flight Via Bus Via Car

2) Via service apartment
3) Via Hotel
4) Via Holidays
5) Via Adventure
Board of Directors:
Ashwini Kakkar Vani Kola Vinay Gupta Founding Members Harsh Azad Amit
Aggarwal Rohit Gaddi

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For further information

e-mail: communications@viaworld.in
FAX: 91-80-403 3045
Regd Office: Flight Raja Travels Pvt. Ltd., No.53, 2nd Floor, Alpine Murali Point,
Bowring Hospital Road, Bangalore- 560 001, Ph: 91-80-41431000, FAX: 91- 80-
41431044 24X 7 Service Centre: 91-80-41431000
 Holidays and Journeys
With the advent of low cost carriers, the Indian traveler is everywhere. Even
the most unlikely person is now looking forward to making journeys - from religious
holidays to global destinations, the world is a bigger canvas for Indians.
 Via adds value
Via's comprehensive services makes seamless travel possible in India. From

booking a flight ticket to getting a luxury bus to remote destinations in India is now
possible. A traveler can book or cancel tickets anywhere, at anytime at the most cost
effective prices.
 Via strengthens the network
By backing our Business Partners with efficient systems via ensures that they
can give their best service to the customer. Via takes care of everything else. From
flights to buses, cars, hotels and holidays - Via is constantly building inventory and
backing up Business Partners so that they deliver the widest and the best service to
their clientele.

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 Retail Landscape in India
Retailing in India is one of the largest industries with a total market size of USD
320 billion in 2006 and growing at a healthy CAGR of 5%. Rising incomes and
increased consumerism along with an upswing in rural consumption will further fuel
this growth to around 7-8%.
However organized retailing in India is still very small (just 6%) of the entire
retail Industry compared to 70% - 85% in some of the developed economies of the
world.
Topmost Travel Company in India
Via, formerly Flight Raja is the largest technology based travel Services
Company in India and was established on 25th July 2006. In a single year of its
existence. Via has silently revolutionized the travel domain in India and brought in
value added changes that benefit the customer and the business channels. Via is
today the topmost travel company in India with a turnover of Rs. 725+ crore and a
growing network of 5000+ agents spread across India.

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2.3 THE FUTURE OF TRAVEL AND SERVICES RETAILING IS HERE
VIA, formerly Flight Raja is the largest technology based travel services
company in India. VIA has silently revolutionized the travel domain in India and
brought in value added changes that benefit the customer and business channels. VIA
is today the topmost travel company in India with a turnover of Rs. 725+ crore and a
growing network of 4600 agents spread across India.
 Geographical Presence
 Inadequate Utilities
 Supplier Backward Integration
 Consumer Insights
 Come Partner with VIA
 Smart Business Partner
With its unique B2B model, dedicated to service Business Partners across the
country, Via has reinvented the Indian travel industry which was increasingly
confused by the awesome changes and growth, as well as getting a battering from
online companies that were eroding their business bottom lines. Via equipped them
with technology, gave them a strong marketing base and infused business
knowledge, bringing about a renewed vitality to their services. Via's inputs
strengthened their business and enable them to service a wider customer base with a
sophistication and speed never imagined before.
 Strength in numbers
Via's network constituting Business Partners, Distributors, Agents, Via Stops

and Via Kiosks across the country has created a travel base that allows the savvy,
smart and speed bound modern traveller with access to comprehensive travel
services anytime, anywhere in the country. Via's brand values and consistencies have
been welcomed by the customer who seeks and demands quality service.

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A sophisticated mix of technology, marketing, networking and knowledge

gives the Via network of Business Partners, the business advantage, demolishing the
myth that online ticketing companies have the edge today.
 Brand Values
The Via brand stands for Convenience, Accessibility, Affordability, Choice,

Speed. For the changing life of the present day Indian, branded services like Via
represent consistency and dependability.
 Via Support
Via's technology, marketing and sales team constitute the best in the industry.
Constant market survey, technology innovations, and quick service to the customer is
the key to Via's success. To ensure we maintain our market leadership we are diligent
in our approach to innovation, while never sacrificing our stability and reputation in
the market place. Via's range of products emerge from marketing surveys. The core
business revolves around travel bookings along with value added products that will
convenience the traveller and bring additional income to our Business Partners.
 The Via Promise
Via's Business Partners and its network are the heart of its business. Via is
committed to consistently innovate, improve and deliver the highest possible
standard of Business Partnership so as to provide a profitable return on investment
and growth in market share.
 Driven by Passion
Founded by a team of technologists and travel industry veterans the company

is driven by a passion for solving industry problems and empowering people to do
business more efficiently. The company's resources and financial strength provides

31
opportunities for well thought out initiatives, partnerships and acquisitions that opens
the door to new products and new markets in all product areas.
2.4 VIA PARTNERSHIPS
The company is also working closely with central government, state

governments and many leading retail chains to power travel services for them. Via's
travel partners are spread across the globe.
Ashwini Kakkar has wide experience across various industries but the travel
business is his primary passion. He has been conferred with numerous awards by
travel trade organizations. He was also bestowed the prestigious ''Order National du
Merite'' by the French Government in 2007, in recognition of his contribution to
promoting Indo-French relations.
He studied mechanical engineering at Regional Engineering College,

Kurukshetra & completed his MBA from the European Institute of Business
Administration (INSEAD), France. Besides this he also secured a management
degree from IIM-Kolkata and a law degree.
Vani is a serial entrepreneur and visionary known for identifying emerging

markets and building successful market-driven software companies. For the last 10
years she has focused on founding and building her various companies.

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She was also the founder and CEO of Certus Software and Right Works
before they were bought by global companies. Vani's personal commitment to
excellence and integrity influences her approach to building companies, developing
products and empowering people. Vani is profiled in numerous books and has been
identified as one of the top 10 entrepreneurs in Silicon Valley. Outside of enjoying
building high growth companies her interests focus on raising her two daughters and
musing about finding the perfect balance between work and family. She is involved
in various organizations focused on fostering entrepreneurship and women
leadership
Vinay Gupta is the dynamic young visionary and founder of via (formerly
Flight raja). His persistent pursuit to create seamless travel in India led to the
formation of India's leading Travel Services Company. In the very first year of its
inception via has become the topmost Travel Company with a network of 4600
agents in 380 cities of India. Its turnover in a single year is 725Cr +. With its unique
B2B model and dedicated services to the travel industry Via is creating a silent
revolution in the travel sector in India.
A professional turned entrepreneur, he has previously held prominent senior

management positions with leading multinational companies in the United States.
His previous assignments include consultancies in the Risk Management business
with Credit Suisse, First Boston in New York and consultancies with Citibank NA,
Merrill Lynch, Morgan Stanley and BMW.
Vinay holds a Bachelor of Engineering Degree in Computer Science from SV

University and is presently pursuing CFA from the CFA Institute of America. He is a
Member of the CFA Institute of America.
Amit Aggarwal has a background from the automotive industry having

worked in Ford and Daimler Chrysler. He has worked as the head of Metrics and

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Data analytics for their retail website. He is keen about data analytics and metric
space and has extensive knowledge of front end technologies.
Amit is a Computer Science Graduate from IIT, Roorkee, where he topped his
class and has been awarded the President of India Gold Medal for versatility and
overall excellence.
Harsh is an experienced technologist, with expertise in the areas of Data

analytics and application Integration. He is recognized for his outstanding
capabilities as a software developer, architect with tremendous foresight.
Harsh lead the team that won the first prize in Computer Associates' Ingres Million
Dollar Challenge (A Global Event). The problem was to effortlessly port an Oracle
application to Ingres database, without making any code changes. This implied
adding a lot Oracle functionality to the Ingres database. He also reverse engineered
Oracle's Database Driver protocol. He and team wrote the product. Shift2Ingres
available on
Rohit is a renewed Data Analytics Expert. He has been a pioneer in the

design and implementation of proprietary data formats where database structures fail
to optimally store and query terabytes of data (Patent Pending). Rohit has been an
active participant inn the evaluation of various machine-learning methods and has
coming up will end-to-end process that includes filtering and mining the data and
making predictions. He has contributed a lot to the study of XML based
representation of DB scheme objects.
Rohit was in the team that won the first prize in Computer Associates' Ingres
Million Dollar Challenge (A Global Event). The problem was to effortlessly port an
oracle application to Ingres, without making any code changes. This implied the
rewrite of a lot proprietary Oracle technology not supported in Ingres.

34
2.4 work experience

It was good experience in travel agency because I learnt so many things by
the travel related subject such as tour packages, tour operation, online booking, and
our company mission is By creating benefits for our customers, we create benefits
for our business partners, by this caption I adapt something new in my carrier more
over I learnt the strategies of how to handle the people in an organization

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2.5COMPANYIMAGE

36

37

38

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CHAPTER I I I
FINDINGS AND SUGGESTIONS

40
FINDINGS
Flight Raja (P) Ltd has founded by a team of technologists and travel
industry veterans the company is driven by passion for solving industry problems
and empowering people to do business more efficiently. The company's resources
and financial strength provides opportunities for well thought out initiatives,
partnerships and acquisitions that opens the door to new products and new markets
in all product areas. Even though, I have found out the following problems at the
organization during the training period.
 The employees are working more than their scheduled working hours: -
The Company is forcing the employees to work at late hours that make them
to be unsatisfied and also create stress and strain among them.
 Employees education background is not related to tourism and travel
industry :- I found that most of the employees’ education background is from
non tourism & travel related hence they are unable to fulfill the customer
needs and wants,
 The telephone facility of the company is misused by the employees for their
personal use and that incur unnecessary communication cost to the agency.
 Company is not strengthening its staff by taking new employees even though
they require additional staff.
 The employees are frequently changing their jobs (moving to company to
other company):- I have been seen a problem that the employee turn over is
more in the agency since they are not happy with the salary and incentive
packages.
 There is inadequate parking space because the company is located in a very
narrow place and it is too costly for the company.
 The employees are not very much controlled by the manager and it causes
uninformed absenteeism especially among the female staff.

41
SUGGESTIONS
It was a good experience in travel agency because I learnt so many things
about travel related subjects such as tour packages, tour operation, online booking
etc,. Based on my observation and experience at the organization, I would like to put
forward the following suggestions for the betterment of the organization.
 The company provide good incentives to employees :- in order to promote

the employees interest as well as effectiveness there a need of motivation
therefore by giving incentives and promotions amenities, fringe benefits
 the company has to provide alternative way for parking
 in order to educate the employees , conduct the some events, training,
attending seminars, regarding tourism
 the company has to recognize and talented innovative skilled person and
company is appreciate his performance by promotion
 Reduce the communication barriers among the employees by conducting the
weakly meetings
 Recruiting the qualified (tourism specialized) and experienced persons.
 conduct the recreational activities to the employees
 attendance method has to avoid their late coming
 let them to attend the tourism related seminars and conference and other
related tourism activities

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CHAPTER I V
Conclusions

43
Conclusions
Travel agent is a person who has full knowledge about tourist product destinations
models of travel, climate, accommodation and other areas of service sector. He acts
on behalf of product provider/principles and in return gets commission. Technically a
travel agent is the owner or manager of an agency but other employee are responsive
for advising tourist and selling package tours/individual components of travel
product. However a travel agent’s job involves not only making sales but also
gathering travel information researching travel products analyzing options and
making recommendations. A travel agent may be an individual/firm or co-operation,
which is commonly, knows as travel agency. An agency means office of the travel
agency or origination where all travel goods and service are assembled and
coordinated for the smooth conduct of travel agency business, travel agency is one
the most important organization in the tourism private sector which plays a
significant and crucial role in the entire process of developing and promoting tourism
in the country or at the destination. It is a travel agency which packages of processes
all the attractions accesses, amenities and ancillary services of a country and presents
them to the tourists. That is why travel agencies are known as image builder of a
country. A prospective travel agency is one, which makes arrangement of travel
tickets
To carry this report I was mainly facing limitations such as time factor and Non co
operation from employees due to busy work schedule and work pressure. What all
information they have given to me have been used for the preparation of the training
project so that the credibility of the information may not be completely error free. It
is clear that flight raja travel agency is doing well in the field of travel business and
they are more successfully compared to various other travel companies. But in the
present threatening competition they should do more than the present effort in the
promotional activities.

44

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In plant training report on Flight Raja travels (P).

1 Introduction of Tourism and Travel Industry

Department of Tourism Administration Kuvempu University Shankaraghatta.

1.1 INTRODUTION OF TOURISM AND TRAVEL INDUSTRY

It has been suggested there is a strong correlation between Tourism

Department of Tourism Administration Kuvempu University Shankaraghatta.

Definition of travel agency

The United Nations classified three forms of tourism in 1994 in its

Department of Tourism Administration Kuvempu University Shankaraghatta.

non-residents traveling in the given country; and Outbound tourism, involving

Department of Tourism Administration Kuvempu University Shankaraghatta.

1.2 A SIMPLE STRUCTURE OF TRAVEL AGENCY AND TOUR

3. TRAVEL TRADE ORGANIZATION

4. RECREATION AND ENTERTAINMENT

PUBLIC-PRIVATE SERVICE ORGANIZATION

Department of Tourism Administration Kuvempu University Shankaraghatta.

1.3 HISTORY OF TRAVEL TRADE

1.4 CONCEPT OF TRAVEL AGENCY AND TOUR OPARATION

Department of Tourism Administration Kuvempu University Shankaraghatta.

1.5 CURRENT ISSUES IN TRAVEL AGENCIES

In some countries, airlines have stopped giving commission to travel

Department of Tourism Administration Kuvempu University Shankaraghatta.

Other commercial operations are undertaken, especially by the larger chains.

A travel agent is supposed to offer impartial travel advice to the customer.

THE BOOMING TRAVEL INDUSTRY

 Everyone in India seems to be on the move. Almost overnight the propensity of

Department of Tourism Administration Kuvempu University Shankaraghatta.

 International outbound trips by resident nationals peaked at around 8.3 million in

Department of Tourism Administration Kuvempu University Shankaraghatta.

Travel agency Commissions

Most travel agencies operate on a commission-basis, meaning that

Department of Tourism Administration Kuvempu University Shankaraghatta.

In the United States, most airlines pay no commission at all to travel

1.7 FUNCTIONS OF TRAVEL AGENCY AND TOUR OPERATION

Today, Travel Agencies have been recognised as a vital component of travel

Department of Tourism Administration Kuvempu University Shankaraghatta.

destinations, modes of travel, accommodation, sight-seeing, shopping, immigration,

3. Airline Ticketing and Reservation

A travel agency sells variety of tourism products. Airline ticketing and

Department of Tourism Administration Kuvempu University Shankaraghatta.

complete up-to-date knowledge of various schedules and airfares of airlines

The Computerized Reservation System (CRS) has changed the entire

4. Tour Packaging and Costing

Department of Tourism Administration Kuvempu University Shankaraghatta.

Department of Tourism Administration Kuvempu University Shankaraghatta.

Technically, when national or international events are announced every travel

Department of Tourism Administration Kuvempu University Shankaraghatta.

Generally a Conference/Convention Package includes

• Travel to and from the venue;

9. Travel Agency as Handling Agency/Ground Operator

1.8 TRAVEL AGENCE LINKAGES

Department of Tourism Administration Kuvempu University Shankaraghatta.

International Air Transport Association operates a network by which travel agencies

Department of Tourism Administration Kuvempu University Shankaraghatta.

An agency's success depends almost entirely on the competence of management and

Department of Tourism Administration Kuvempu University Shankaraghatta.

g) Travel Trade Associations

These associations provide a common platform to solve many problems of

Department of Tourism Administration Kuvempu University Shankaraghatta.

No other sector of Indian economy has generated huge employment opportunities

n) Earning of Foreign Currency

The foreign exchange brought to India by the travel companies is a vital

Department of Tourism Administration Kuvempu University Shankaraghatta.

o) Destination Promotion Development

1.9 Objectives of Training Report

1) To be acquainted with the operational system existing in a travel Agency

Department of Tourism Administration Kuvempu University Shankaraghatta.