customer service definition travel and tourism

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What is customer service in travel and tourism? Quick-start guide

Global travel is booming — especially since COVID. The travel industry contributed $7.7 trillion U.S. dollars to global gross domestic product (GDP) in 2022 alone.

Travelling the world is an incredible experience. And the business opportunity within the travel industry is just as impressive. But, if you’re not offering great customer service, it can be a nightmare – both for the traveller and for the business.

If you want to ensure you reap the benefits of the growing travel industry, you need to know how to provide optimal customer service. In this guide, we’ll break down how to optimise your customer service in travel and tourism so you can grow your business.

What is customer service in travel and tourism

Travel is one of the most powerful industries in the world. With billions of dollars spent annually on tourism, there's an opportunity to capitalise on the industry for customer service that stands out. But, if your customer service is failing behind in travel, then your business will fall behind.

Travel and tourism is built on the foundation of great customer service. The reason it’s different from other industries?

Customer service in travel is incredibly timely. People are moving to and fro on set timelines and schedules and one hiccup or error could send their entire trip down the drain.

So service has to be fast in order to succeed in travel. On top of that, people expect superior customer service because there’s a lot more money on the line.

Customer expectations for the travel industry experience

The average household spends about $2,100 on travel each year . When people book trips for thousands of dollars, they expect great service. If something were to go wrong, it would be an incredible loss.

In travel, customer experience is arguably more important than advertising. This is because the customer experience fuels the entire operation. If a consumer has one bad travel experience, they’re telling everyone they know. That’s why poor travellers customer service experiences on airlines blow up on social media.

But, if you’re able to offer great service, customers will spread the good news themselves. Great customer service in travel impacts word-of-mouth marketing, which can lead to exponential growth or collapse in business.

The evolution of customer service in travel

20 years ago, if you wanted to book a trip across the world, there was only one way: travel agents. You would drive across town to your brick-and-mortar travel agent, and look at your options. Then, you’d book a trip, get your tickets, and wait until it was time to show up to the airport.

Your travel agent did it all for you. Nowadays, customer service in travel is much more self-service. You can do it all right from your smartphone – no matter where you are.

Customer service within travel for 2024

10 years ago, you had to call in or wait for a response from a customer service agent. But, as technology advanced, so did the speed at which customer service teams could help people.

Consumers can now book trips quicker, analyse prices easier, and get their questions answered in seconds without having to drive 20 minutes across town – or without having to wait 10-30 minutes to get through to someone on the phone.

Thanks to technology like AI and chatbots, consumers are able to get the help they need the moment they need it. Social media allowed for even quicker responses. But, there was one problem: with so many ways to get a hold of a company, it became incredibly challenging for travel companies to manage all the conversations on different platforms.

But now, with customer service platforms like Trengo , travel companies can serve their customers instantly without letting their inquiries slip through the cracks.

Because software like this will show every single conversation in one place: whether it’s coming from email, Instagram, Facebook messenger, or from your chatbot.

Key components of effective customer service

If you want to remain competitive with your travel business, you need to offer good customer service. But, if you want to grow as a business, you need to offer customer service that goes above and beyond.

Here’s how to improve customer service in travel agency and other tourism companies:

Speed and reliability

Quick responses are a given for any successful travel business today. You need to offer fast replies to inquiries in order to be seen as reliable.

Kind and courteous

Customers don’t just want fast responses with the right information. They want to feel that you’re empathetic towards them. They need travelers customer service teams to be kind, courteous, and understanding. 

Looks matter

This doesn’t mean your team needs to be attractive. It means you need to have great branding – and it needs to be congruent with your service. Keep a professional website, and chatbot, and ensure your team is writing and speaking professionally with customers.

Personalisation

Modern customer service chatbots allow you to personalise the experience for your customers automatically . You can then take those conversations and let your human support members carry on with the personalised data to serve the customer (i.e. “Are you excited for your upcoming trip to Hawaii, John?”)

Multilingual support

Travel customer service isn’t just about your local travel agent anymore. It’s about global teams serving global customers. You need to ensure you have a diverse, multilingual team to help serve international customers.

Challenges in providing quality customer service

Good customer service isn’t a nice-to-have anymore. Consumers demand more than ever.

A Think with Google study found that great customer service is the number one factor of high-value travellers. Nearly 60% of them admit that customer service matters most to them when picking a company to travel with.

Technology has made it so service is back in the hands of the customer. If you aren’t providing great customer service, you’re going to get beaten out by the competition.

Here are a few challenges in providing quality customer service (and tips to overcome them). ‍

Planning trips

The booking process has become much more technological. You need to offer fast responses to people who are comparing different travel companies.  If you’re not fast, consumers will pick a competitor. Offer a chatbot that responds with personalised messages when your live support team is off the clock.

Help out exactly how consumers want it

Every customer is different. They want to be able to get the help they need how they want it. If you’re only offering one way to contact your team, you’re falling short. You need to offer multiple communication options (i.e. social media, phone number, email, live chat, etc.).

Lack of personalisation

Consumers expect more. This holds true with personalisation as well. You need to ensure you’re collecting first-party data like name, phone number, age, purchases, and booking information. Make sure you’re offering personalised advice and capturing and storing data digitally by using a platform like Trengo .

Technology’s role in enhancing customer service

Back in the day, you had to visit your local travel agency if you wanted to book a trip or ask a question about your booking. Then, you could phone in to call centres. Eventually, that moved to email. Now, technology has enabled fast-paced customer support.

In a 2023 Skift survey of travel and hospitality executives, 66% agreed that customer service was a high-priority digital investment in their business. Customer service beat out every single option, with customer engagement and retention at 60% and revenue optimisation at 55%.

If you want to provide stellar service in your travel or tourism business, then you need to leverage the right technology. Here are a few need-to-haves when it comes to customer service technology:

• Customer relationship management (CRM)
• Customer service software

By integrating all four of these technologies, you’ll have a proper foundation to offer great customer service to your travel customers quickly to keep them coming back for years to come.

Training and development for customer service teams

The right technology can be a major help in your customer service strategy. But, if you’re not providing adequate training to your support, it doesn’t matter how robust your technology is.

Here are some key tips to provide optimal training for your support team:

1. Effective communication

Customer service revolves around one core skill: communication. If your team isn’t able to communicate quickly and effectively, you’ll lose customers. You need to develop communication skills with your team, starting with empathetic listening and tone of voice.

2. Productivity

Offering service that goes above and beyond for a single customer is crucial.

But, if it’s taking all day to resolve a customer’s inquiry, there’s a problem. The reality is that your team needs to be able to handle high volumes of tickets and inquiries to be productive. Otherwise, your time to resolve tickets will slow down and you’ll need to pour more resources into your support strategy.

3. Foreign language training

You also need to ensure you’re training your teams on multiple languages to ensure you can serve a global audience.

For the most part, you should always ensure your team can speak your target audience’s native language. And, you should almost always include English language training as the top secondary language. Or when your team is not there yet, rely on automation, like chatbots, that'll service customers in their own language .

4. Problem-solving

Your customer service team isn’t just there to provide a friend for your customer. They’re working to solve customer problems. Your team needs to understand the fastest path to solve problems. This means having a service playbook at hand, templates to respond to customers, and an internal knowledge base that’s easy to access.

To go above and beyond, you should ensure your team has adequate knowledge of the places you’re offering travel experiences for (and can offer personalised tips).

Measuring the impact of customer service

Customer service is harder to measure than revenue. It’s not always black and white to determine how well a customer was helped.

But, it’s not impossible.

There are key metrics you can (and should) measure to determine the impact of your service:

Customer satisfaction score (CSAT): After an inquiry, ask every customer “How satisfied were you with [company] and [customer service representative]?” Give a scale of 1 to 5.

Net promoter score (NPS): This is one of the most common customer service metrics. Simply ask your customers, “How likely are you to refer us to a friend?” Then, give them a scale of 1 to 10.

Average resolution time (ART): This is simply the average amount of time it takes for your customer support team to fully resolve a customer’s inquiry. Software like Trengo can track this by individual representatives or by team.

Offer a travel experience that goes above and beyond

Travel is all about the experiences consumers have. Customer service is a major part of the travel experience – and it can make or break a trip.

If you aren’t offering great customer service as a travel or tourism company, your customers will quickly find a competitor to do business with.

By understanding the key concepts of great customer service, providing your team with the right development, and leveraging the right technology, you will be well on your way to providing exceptional service.

Deliver worldwide customer delight

Take your customer experience to the next level, and lean on the right customer service software. With Trengo, you can give your travel customers the best experience possible to ensure they keep coming back for years.

Learn more about how Trengo provides end-to-end travel experiences that lead to world-class holidays.

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More great articles.

If your company’s not using SMS as a support channel, you’re behind the curve. Here’s how to make the most of this low-cost solution.

Escalation management is key for any customer service team. Learn how to prioritize customer issues based on complexity and urgency.

With these customer experience software tools, you can both analyze and improve the way your customers feels about your brand.

The Importance of Customer Service in the Travel Industry. Interview With Beatriz Yummi

The Importance Of Good Customer Experiences

Wrapping up.

Did you know that it costs five times as much to attract a new customer than to keep an existing one? The first rule of any business is to retain customers and build a loyal relationship with them , and thereby avoiding customer acquisition costs. 

It’s a well-established fact that 44% of companies have a greater focus on customer acquisition vs. 18% that focus on retention. Also, it’s true that only 40% of companies and 30% of agencies have an equal focus on acquisition and retention. 

Customer care and customer support are among the crucial business processes in the travel and hospitality sector. In fact, it only takes one or two poor customer service experiences for 60% of travelers to switch travel brands . Do you blindly trust the stats and work on improving customer service in your business, or disregard it and go back to more pressing matters?

We wanted to know more about the importance of customer service in the travel and hospitality industry, and we decided to talk to Beatriz Yumi Bongiovanni , the Customer Support Specialist for Latam Market in Hotelmize.

Beatriz holds degrees in Tourism, Business, and Marketing Management. Over the last 13 years, she has worked in various positions, including business development and customer support roles . 

On more than one occasion, Beatriz collaborated with global companies in the Hospitality industry, which helped her develop leadership, sales, communication, and relationship-building skills. Currently, she is in charge of taking care of our Latam clients at Hotelmize. Let’s hear her opinion on the role of customer service in this sector.

Why is good customer service important?

It’s because a company’s success is the combination of a good product and good customer service support. The security that the customer feels from reliable customer service makes all the difference when making the purchase decision, even more so in a post-pandemic world where information changes quickly and the customer feels even more apprehensive about buying a product or closing a deal. And, once the sales are finished, the second phase is to understand what are your customer needs and provide the best service to keep customer satisfaction at an enviable level.

What are the main tasks of a Customer Support Specialist? What do you need to carry this role successfully?

The task of a Customer Support Specialist is to be proactive in understanding in advance where customers may have questions or generate errors. They need to respond to customer queries in a timely and accurate way every day. Besides analyzing and reporting the product use enhancements for the company , they must also identify customer needs and help customers use specific features of our service.

To grow this role, the professional must introduce relevant and essential information to new customers, provide quality service promptly and develop and maintain the knowledge of the products/services being offered.

What characteristics should a person dedicated to customer care have?

To offer good customer service, the person should be willing to help others with leadership skills and strong communication and problem-solving skills . They must also have patience with complicated cases and the ability to work in a high-pressure environment since the response time is a key part of good customer service.

Also, technically, the ability to learn how to use the technology software, CRMs, help desk software, and remote support tools/apps as well. Lastly, the person needs a familiarity with our industry, the kind that we have with the Tourism and Hospitality sector.

Could you please explain to us the difference between customer service and customer support?

Customer support is responsible for handling questions , operational issues, comments, and complaints regarding their business/products – it is more of a reactive role.

Customer service is more of a proactive role – it includes these tasks but has the goal to make sure the company provides a positive customer experience by enhancing relationships between them, understanding the particular intricacies of each region, for example.

What trends are generating better results in customer service?

Since the pandemics, an easy, fast, and online service has been indispensable. Phone calls are being used less by generations Z and Y, so even more than emails, a faster IM communication channel/online tool for meetings is critical . The communication must be clear, fast, friendly, and non-robotic to be balanced . In an online world, one must not be wordy since the aim is to simplify the process in the answers, facilitating customer queries.

Could you share some tips to improve customer service?

I believe that the essential role, in addition to a good technical knowledge of the systems and good use of technological tools in our favor , is to know the needs and customs of your market. To understand that each global region has its differences , like Latin America, where contact is much more personal than in Europe, for example. Customer care must take into account these nuances present in each market for cultural reasons , and thus, the solution to clients’ inquiries becomes more hermetic.

Exceptional customer service is crucial in the travel and hospitality industry, especially during post-pandemic times. Delighting your customers with next-level customer service in times when information changes quickly can help them feel safe and make your brand look trustworthy.  

Some of the best customer service practices include easy and fast online service, friendly and clear communication, and customized service with cultural differences in mind.

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Patricia is a social media and content manager. Social networks and staying up to date with the latest trends are her passions, and she enjoys writing about travel topics so that readers can get quality information from her point of view.

Mize is the leading hotel booking optimization solution in the world. With over 170 partners using our fintech products, Mize creates new extra profit for the hotel booking industry using its fully automated proprietary technology and has generated hundreds of millions of dollars in revenue across its suite of products for its partners. Mize was founded in 2016 with its headquarters in Tel Aviv and offices worldwide.

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How to provide great customer service in the travel and hospitality industry.

The travel and hospitality industry has undergone a massive upheaval over the last year and a half. The major boom that the industry saw towards the start of the previous decade was hugely overturned by the coronavirus pandemic. 

Data from the US Travel Association found that in 2020, the travel sector lost $492 billion compared to 2019. That’s a 42% annual decline! Further, international travel spending fell 76%, and corporate travel spending fell 70%.

Being the worst-hit industry since the crisis, sadly, many travel and hospitality businesses had to shut down their operations. The ones that did survive are at long last seeing some hope of recovery owing to the global vaccine rollout.

A study by Tripadvisor found that more than 77% of global travelers are likely to travel internationally, and 86% of them are likely to travel domestically if they receive the vaccine.

But, consumers are extremely apprehensive about safety and cleanliness. There is a 10.2% increase in negative reviews in the hospitality industry. So, companies need to go out of their way to reassure them with their honesty, transparency, and impeccable customer service . It is important that they focus on customer engagement and building trust.

In this post, we’ll help you understand why excellent customer service is so important in the travel and hospitality industry, and what it takes to deliver the same, especially during such turbulent times.

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Why great customer service is important for a successful travel and hospitality business today.

Modern travelers are tech-savvy, demanding, and empowered . They want to be able to book their travel with incredible ease. Research suggests that 57% of them want a single app for all their planning, booking, and travel needs. 

Naturally, when it comes to customer service too, travelers want to use channels of their choice to get their issues resolved quickly, fairly, and with minimal hassle. Travel agencies that are able to meet these expectations are the ones that will likely increase their customer satisfaction and earn themselves a loyal customer base. Utilizing services like Visa Fly can streamline the travel planning process, ensuring a smooth experience for customers.

According to a study published in Harvard Business Journal , airlines that responded to a customer’s Tweet in five minutes or less were likely to earn $20 more from that customer on a future airline ticket. 

Another study by Think with Google found that great customer service is the most compelling factor of consideration for high-value travelers. 60% of them say that when choosing a brand to travel with, their customer service matters most to them. 

For 50% of those high-value travelers, online reviews and word-of-mouth matter. Brands that offer travelers great experiences are most likely to earn stellar online reviews.

Travelers love sharing their experiences with travel companies, publicly. In fact, research from Stackla found that:

Today’s traveler isn’t one to take things at face value. They will do their own research, and compare options before making a well-thought-out and calculated choice for the right travel partner. Now, more than ever, customers are willing to do business only with travel companies that they can trust.

And that’s why providing personal and meaningful customer service has become critical for travel businesses today.

Some customer service best practices for the travel and hospitality industry

To say that the travel and hospitality industry has experienced a shift in recent times would be an understatement. If your travel company wants to stay ahead of the curve, you need to rethink your old ways. You need to adopt a customer-focused approach to culture and strategy. 

The travel and hospitality industry might see another boom soon enough. But, to be able to handle that well and make the most of it, companies must not only ensure they have their basics covered, but also offer customers what their competitors don’t.

Good customer service can be a that big differentiator.

Keeping that in mind, we’ve listed down five essential best practices for companies that want to deliver quality service in the travel and hospitality industry:

1. Save customers their time, and make the booking process simple

One of the most important aspects for customers when deciding on a travel and hospitality partner (apart from price, of course) is the time you can help them save on planning, researching, and booking their travel.

Many travelers, especially those traveling on business, appreciate a swift and simple booking process. In fact, they’re happy to pay more for such an excellent customer service experience.

Research suggests that 62% of consumers are willing to pay a higher sum for a simple experience, and 61% would recommend a brand if it has a clear proposition that saves them time.

Hilton’s ‘Stop Clicking Around’ campaign is a great example of the above. Through the campaign, the brand encouraged its customers to “stop clicking” through numerous websites and waste hours of their time. Instead, they asked them to book directly through Hilton’s website and enjoy the best price.

The result? The hotel earned 4.5 million bookings worldwide attributed to the campaign. That’s the value they received for valuing their customers’ time.

2. Be proactive with your communication, and swift with your resolutions

Traveling and accommodation have always been very anxiety-inducing for many people. With the pandemic having wreaked havoc, hotel guests are now more concerned about their safety than they’ve ever been before.

According to a recent research study from PwC , 85% of travelers said their travel decisions will depend on communications they receive from hotels and airlines about safety. Further, 40% of them said they’re unsatisfied with the current communication they’re receiving from travel companies about safety protocols.

That’s why proactive data-driven communication about safety protocols, cleanliness, and sanitization should be a critical part of hotel management today. It’s hugely important that airlines and travel companies also proactively communicate important updates including travel advisories, delays, cancellations, etc.

Further, when customers reach out for help, tour operators must make it a practice to resolve their problems as quickly and satisfactorily as possible. According to Hiver’s Customer Service Benchmark Report , almost 50% of companies promise their customers a resolution time of below 6 hours.

Investing in an intuitive help desk solution is a sure-shot way to ensure a such fast resolution.

Let’s take the vacation rental company Vacasa’s case study as an example. The company was earlier using Google Groups to handle all customer service emails. Communication within the team was restricted to sending back-and-forth emails. As a result, it was slowing down their query resolution process.

By implementing Hiver, a Gmail-based customer support software , the team was able to define clear accountability for every member. What’s more, they were also able to have contextual discussions about every customer query using Hiver Notes – all without the hassle of CCs and forwards. 

As a result, the team saw an 80% improvement in their average resolution time. You can check out their entire story here .

3. Be present wherever your customers are

Today, customers use multiple devices and channels at once to connect with brands. And, they expect those brands to seamlessly communicate with them across each of those devices and channels. 

For example, if a customer enquires about a specific holiday package on your travel company’s social media, they expect a consistent response and experience when they reach out to you about the same query on chat or email.

Travel companies need to therefore invest in systems that allow them to integrate all of their key channels where their customers are present. 

Brands also need to offer customers options to easily connect with them using devices of their choice. They can do this by adding click-to-call buttons on prominent parts of their website, tablet, and mobile applications.

Further, companies must ensure that at every touchpoint, they update customers with the relevant and latest information about their travel. They can proactively communicate these updates via text, email, voice, etc.

KLM Airlines takes this proactive communication approach to the next level with its ‘ Family Updates ’ service. Apart from sending real-time WhatsApp updates to travelers about their trip, the airline also updates travelers’ families and friends about their departure, arrivals, delays, cancellations, etc. What a simple yet thoughtful way to delight customers!

4. Offer deep personalization

21% of travelers are more likely to leave a review after a negative experience at a hotel than a positive one. And, 35% of travelers would think twice before booking if they find more negative reviews than positive ones.

No surprises then that the travel companies that stand out are the ones that deliver experiences beyond what most others in the market are offering.

A study by American Express reported that 83% of millennials are okay with travel brands tracking their digital patterns if they get to enjoy a more personalized experience in return. The same study found that 85% of respondents across all age groups prefer customized itineraries over general, mass-market offerings. 

Investing in a good CRM solution is thus critical for travel companies as it offers a safe and organized repository of important customer information that they can use to personalize travel arrangements. This not only includes customers’ names, birthdays, anniversaries, addresses, and work profiles but also their interactions across a brand’s website or app and also  travel website development . 

Customer conversations are another useful source of relevant customer data. The past interactions customers have had with your customer care team can give you important cues into their travel preferences. This data can in turn help you craft unique, tailored, and memorable travel experiences for your customers.

Some travel companies are also leveraging technology to deeply personalize customer experiences.

For example, with British Airways’ ’Know Me’ program, customer service agents can easily identify who are their frequent flyers, high-profile flyers, and even first-timer flyers. Accordingly, this information helps them deliver personalized offers and services to customers – right from the time they book a flight to the time they land. 

Similarly, the implementation of the SG Arrival Card system enhances the travel experience by streamlining the entry process into Singapore, demonstrating the importance of efficient and user-friendly digital solutions in modern travel and hospitality services.

United Airlines’ ‘Collect, Detect, Act’ system uses artificial intelligence to analyze 150 variables in customers’ profiles. This data helps them determine travelers’ unique preferences, and craft tailored offers for them. 

This system has helped increase United Airlines’ revenues by over 15% year on year.

5. Ensure your agents are well-trained and motivated

So far into this article, we’ve seen how important leveraging technology is in order to give customers the kind of experiences they want.

But technology, no matter how cutting-edge or expensive, is nothing without the human touch .

Unless you have a team of skilled, adept, and motivated agents and hotel staff to execute your customer service strategy, the guest experience is bound to suffer.

Hiring the right people is only the beginning. The travel and hotel industries are hugely dynamic. You need to make sure that your staff members are up-to-date with the changing nature of customer expectations and the increasing importance of customer service.

It’s the only way your brand can deliver meaningful customer experiences, consistently.

Ensure all your staff members undergo industry-specific customer service training programs. Apart from this basic training on customer service skills, you should also provide brand and product training. This will help them successfully tailor your brand’s offerings to suit customers’ needs, and even upsell and cross-sell at the right opportunity.

You could even provide your customer service team with incentives to upskill, voluntarily. The International Air Transport Association (IATA) offers some really good courses that you can encourage your agents to take up.

It’s also important to note that the travel and hospitality industry is rife with demanding customers and high-pressure situations. Empathizing with customers becomes the key to providing great customer service. Also, make sure you equip your agents with the right tools and skills to handle the same.

Wrapping up

The travel and hospitality industry might still be stumbling its way back to normalcy right now. However, one thing is for certain – it’s bound to bounce back in a bigger and better way.

Even if the demand isn’t the same as it was pre-pandemic, travel companies should prepare for the major surge in bookings that experts have predicted in the near future.

Now is the best time for brands to focus on fixing what’s broken in their customer service strategy. 

A good way to start is by creating a customer journey map . It’ll help you identify how customers interact with your brand at every touchpoint, and what you need to do better to improve their experiences across their journey.

Your journey map, for example, may help you understand that your customers have an inconsistent experience across the pre-purchase and purchase stage. It might then make sense for you to focus on breaking down silos between your marketing and sales departments.

At the end of the day, customer service shouldn’t just be a function but an org-wide mission. Travel and hospitality brands that understand that, and adapt their overall strategy accordingly, are ones that will thrive in these times.

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The importance of customer service in tourism and how to ace it from start to finish

By Kevin Tjoe — 11 Jan 2024

Customer Expectations   customer experience   customer journey mapping   customer service

In the vibrant world of tourism, customer experience is the heartbeat that makes the journey unforgettable. From dreaming of exotic destinations to relishing memories afterward, exceptional customer service is one of the strongest differentiation factors that can help tour and activity businesses stand out in a competitive market. Optimizing every touchpoint within the customer journey and ensuring exceptional customer care is being met at every stage will uplift your overall customer’s travel experience – boosting the chances of creating loyal customers.

In this guide, we’ll explore the nuances of exceptional customer service in the tourism industry and lay out simple quality service strategies that you begin implementing within your tourism business.

First impressions matter

With the average traveler visiting 38 sites during the planning stage of their trip, setting a memorable first impression is key to winning their booking. The pre-travel experience will set the tone for new customers and will help them form a high benchmark for your business.

First impressions can be anywhere from stumbling upon your website, viewing your social media pages, or seeing a brochure at a local travel agency. During the initial discovery stage, tour operators need to provide personalized communication channels, including responsive customer support that offers quick response times to customer queries, tailored email campaigns, and clear information on what customers can expect from your offerings. Providing clear and transparent information, coupled with a friendly and approachable demeanor, will benefit in establishing a sense of trust and reliability. This approach leaves a lasting positive impact on your potential customers, further boosting their reasons to book with your business.

Empowering your team

In the travel and tourism industry, a well-equipped customer service team is essential. However, it goes beyond just the designated customer support professionals. Whether they’re your partner travel agents, tour operators, tour guides, instructors, or even drivers, every team member plays a pivotal role in shaping an excellent customer service experience.

Continuous training is key to ensure that each team member fosters good customer service skills. To empower your travel business further, fostering a collaborative and innovative work environment is essential. This approach includes encouraging open communication channels and providing opportunities for skill-sharing among all team members, regardless of their specific roles. Such practices not only enhance individual expertise but also cultivate a cohesive and dynamic team spirit. By acknowledging and leveraging the unique strengths of each team member and promoting a culture of adaptability, travel businesses can ensure that every staff member is well-equipped to create a memorable journey for both your team and your customers.

Streamlining seamless bookings

Booking a dream vacation should be as enjoyable as the trip itself. Travel companies must prioritize user-friendly platforms, clear communication, and transparent pricing. A streamlined booking process not only makes it easier for today’s tech-savvy travelers to plan their journey but also contributes to their overall satisfaction.

By incorporating advanced booking platforms like Rezdy, tour operators can truly enhance the customer journey. Features such as the real-time availability viewer, automatic guest communication, and secure online payment options not only provide customers with assurance but also introduce a level of automation, reducing the workload for operators. This streamlined approach caters to customer expectations, offering a seamless booking experience. For tour operators, this means focusing more on crafting unforgettable experiences and less on navigating complex booking procedures.

Curious to see our booking software in action and experience the effortless setup process? Dive into this video:

Add a touch of personalization

In tourism, every traveler is unique, and recognizing and catering to individual preferences can elevate the experience. From tailoring itineraries to suggesting local gems, personalized customer interactions create a connection that goes beyond the transaction. These personal touches transform a traveler into a loyal customer, forging a lasting bond with your business.

To enhance the delivery of personalized adventures , businesses can implement dynamic feedback mechanisms and engage in ongoing communication with travelers. By actively seeking and incorporating customer input, tourism providers can continually refine and adapt their offerings to meet evolving preferences. This commitment to personalization not only fosters a sense of exclusivity for the traveler but also establishes a reputation for your brand as one that values and prioritizes the unique needs and desires of its customers, ultimately leading to increased customer satisfaction and loyalty.

Navigating challenges strategically

Tourism isn’t without its challenges, but how these challenges are navigated defines the customer experience. From weather hiccups that lead to schedule adjustments, fostering effective customer support, and swift resolutions turn potential negatives into positive memories. The ability to overcome challenges strategically becomes a hallmark of exceptional tourism customer service. Embracing a proactive approach, tourism businesses can anticipate and address potential issues before they escalate, demonstrating a commitment to customer satisfaction.

Transparent communication during challenging situations not only reassures travelers but also builds trust and loyalty. Additionally, leveraging technology for real-time updates and providing alternative solutions showcases adaptability and resourcefulness, reinforcing the notion that customer needs are a top priority. For example, with Rezdy’s automated manifest updates and guest communication , you’ll be able to notify your team and your customers of any changes to their upcoming booking with a click of a button, ensuring a seamless and informed customer experience.

Real-time support

The journey doesn’t pause once the traveler sets foot on their adventure. Real-time support, facilitated by technology like chatbots and instant messaging, ensures your customers feel supported throughout their experience. Whether it’s helping with check-ins or offering suggestions on the fly, technology becomes a seamless companion, enhancing the overall travel experience.

Embracing the capabilities of artificial intelligence and instant communication platforms, tourism businesses can provide immediate assistance, address queries, and offer personalized recommendations in real-time. This not only adds a layer of convenience for travelers but also showcases a commitment to their comfort and enjoyment. By integrating responsive and intuitive technology into the on-trip experience, tourism providers can create a dynamic and interactive journey, leaving a lasting impression of seamless support and elevated customer service.

Post-trip engagement and retention

As the tour concludes, the traveler’s journey extends into the post-trip phase where engagement becomes a channel for customer feedback, recommendations, and the cultivation of lasting customer loyalty. Harnessing the capabilities of advanced CRM systems, tourism businesses can seamlessly maintain connections with customers, transforming a one-time visit into an enduring partnership. Rezdy’s robust features facilitate seamless data integration, providing businesses with valuable insights into customer preferences and behaviors through its extensive integration capabilities with industry-leading platforms.

Through insightful data analysis, tourism providers can personalize post-trip communication, offering tailored suggestions for future adventures or exclusive discounts aligned with individual interests. Expressing gratitude and extending unique post-trip offers via Rezdy’s automated communication tools not only fosters appreciation but also ensures the brand stays prominently in the traveler’s mind. This strategic use of technology not only enhances customer retention but also contributes significantly to the positive reputation and sustained success of the tourism business.

Keep reading to see how you can easily send your customers automated messages with a click of a button.

Elevate your customer experience with Rezdy

Embark on a journey to elevate your tourism business by exploring the remarkable features offered by Rezdy. With Rezdy, your quest for outstanding customer service becomes seamless and effective. Here are some key features that can transform the way you engage with travelers, ensuring unparalleled satisfaction:

Streamlined booking process

Rezdy’s user-friendly platform simplifies the booking experience for travelers, ensuring a smooth and hassle-free journey from the very start. With easy navigation and real-time availability updates, booking becomes a joy for your customers.

Automated guest communication

Rezdy allows you to easily and quickly send an email or SMS to all Customers on all Orders for a specific session. Bad weather and other sudden event changes can sometimes require a quick update to be sent to all of your customers advising them of changes.

How to email and/or SMS all orders on a session

• Click  Schedule
• Select  Calendar
• Choose the  Session  containing all Orders that you need to contact
• Click  View Details

within the View Details page of a Session

• Check the  Order/s  that need to be contacted
• Choose  Email Customers  to trigger one of the email templates
• Click  SMS Customers  to trigger an SMS to all Customer contacts on each Order

Data-driven personalization and reports

Leverage Rezdy’s integration capabilities with leading CRM systems and our advanced reporting tool to gather valuable insights into customer preferences and behaviors. With Rezdy, you can even drill down into specific products, allowing you to compare product performance over two time periods for specific products, the days in which they are usually booked or fulfilled, the extras that are generally booked with them, and many more actionable insights.

In tourism, outstanding customer service is what will make or break the customer experience. It can take interaction with poor customer service to destroy all the hard work it took to build a positive tour or activity. From the initial spark of inspiration to the post-trip reflections, every interaction shapes the narrative of the journey. By embracing the principles outlined in this guide, tourism businesses can not only meet but exceed the expectations of modern travelers, creating a legacy of unforgettable adventures and building a loyal community of tourism enthusiasts.

Ready to uplift your customer service with Rezdy? Start your FREE 21-day trial or book a demo today to see how Rezdy can fit within your business.

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Home > Blog > Customer Service for Tourism Industry: Tasks You Can Outsource to a Call Center

Customer Service for Tourism Industry: Tasks You Can Outsource to a Call Center

Customer experience can make or break businesses in the tourism industry. Traveling is highly unpredictable and easily affected by inclement weather and other uncontrollable factors. With much room for error, you need a solid customer service team on standby to smooth over any possible hitches that could impact your clients.

As the sector bounces back from the pandemic with a renewed force, let’s find out how you can elevate your customer service for tourism industry for 2023 and beyond. 

Why Invest in Outsourced Customer Service for Hospitality and Tourism Industry

Before we delve deep into the many customer support services travel businesses can outsource to call centers, let’s first tackle why good customer service is important in the tourism industry.  

Customer service can make or break a person’s travel and tourism experience.

Today’s travelers always look for exceptional deals when booking flights or hotels. They want the best value for their money and know how to get it.

In this cutthroat market with evolving customer expectations , you need exceptional service to set you apart from the competition. It will determine whether your passengers will book their next trip with you or ultimately avoid your business. 

A solid customer service that focuses on customer needs can make all the difference in avoiding missed flights and accommodation issues.

A recent study revealed that good customer service is the most critical consideration for high-value travelers , with the majority (60%) saying that it matters most when choosing a travel business.

Offering excellent customer service can boost your agency’s reputation.

Travelers, especially tourists, are visual storytellers. They document their memories on social media with photos, videos, and vlogs. One study even found that as many as 89% would post about travel destinations , 83% about great accommodations, and 67% would post about their transport experience. 

Tourism businesses seeking to broaden their reach can thus leverage the strong substantial media influence on the traveler demographic to their advantage. As experts argue, word-of-mouth referrals remain to be one of the most effective marketing strategies as it organically helps build brand awareness. 

But how do you create a travel experience worth posting about? The key is exceptional customer service . 

Think of every successful touchpoint as an opportunity to tap the personal networks of your clients; moreover, using your brand hashtags in their posts directly drives traffic and engagement for your account.

Customer service isn’t just about addressing your customer’s needs. It’s also about establishing your credibility as a brand and strengthening customer loyalty through your interactions with guests .

Outsourcing can help tourism agencies deal with the holiday rush or seasonal demand.

Demand spikes during certain times of the year are challenging for travel businesses. Holidays, special events, and peak travel seasons can all lead to a surge in bookings and strain businesses struggling to keep pace.

Whether it’s summer, Thanksgiving, or winter, people typically want to go home and visit or travel with their loved ones. So businesses can expect increasing customer calls about booking rates and deals. 

While this can be overwhelming for your in-house team to handle alone, you can outsource your customer service to ensure every client gets the quality customer service they deserve .

Working with certified customer service experts can help relieve the burden from your in-house team so they can focus on more critical aspects of your travel business. 

Read More: Celebrating World Tourism Day: How Outsourcing Can Help the Travel and Tourism Industry Rebound Post-Pandemic  

What Customer Support Services Can Tourism Agencies Delegate to Call Centers?

Booking Flights and Itineraries

When booking international flights, there are other things that passengers are looking for other than an affordable ticket. A recent study found that travelers find customer service, food, schedules, and the brand’s reputation more important than the price .

Travel is often viewed as a luxury; for many people, it is a chance to escape the stress of daily life and create lasting memories. As such, they are often willing to spend more on things like comfortable seating, good food, high-quality service, and unique experiences they will remember for years.

Some might even be willing to pay more for services that provide convenience, such as faster check-in, priority boarding, or personalized services that make the travel experience more pain- and hassle-free.

Since this entails more frequent and complex touchpoints, it’s essential for tourism agencies to invest in their customer service. With the right call center, your clients can receive guidance and assistance when booking their flights, hotels, itineraries, transportation, and other travel packages.

Proactive Communication on Safety Protocols Through Email Support

Traveling is already a cause of significant anxiety for many people, but since the pandemic hit, more travelers are now concerned about their safety and well-being. 

Clients need constant reassurance that they will stay in a safe environment that adheres to recommended health guidelines. Otherwise, they might end up canceling their bookings.  

While communication is a simple yet effective strategy to avoid such unwarranted cancellations and travel disruptions, a recent study found that almost half (40%) of travelers are unsatisfied with the safety protocol communication they get from travel businesses.

Get ahead of the competition and build client trust by working with an outsourced team that prioritizes transparency for a safe and memorable travel experience for all.

Working with an offshore customer service team helps your clients stay updated on important protocols and travel advisories that could impact their plans. An outsourced CS team can also inform travelers about your safety, cleanliness, and sanitization measures to help alleviate guests’ concerns in the post-pandemic era.

Finding Directions and Travel Routes

Travel businesses and airlines typically deal with a lot of international clients. 

For instance, a US tourist agency may have to book trips for clients who want to travel to Latin America or Asia. Clients expect your staff to be familiar with local attractions in their destination. This includes booking agents and customer service representatives, not just front desk officers.

While your in-house staff members can just as quickly research their destination, having someone from the area can play to your advantage. Fortunately, you can work with global outsourcing companies such as SuperStaff, which has a nearshoring office in Colombia and an offshoring location in the Philippines . 

SuperStaff can provide your clients with valuable first-hand information and recommendations so they can make the most of their stay and create memorable experiences. We can also provide your clients with maps, brochures, and other resources to ensure they know the area.

Additionally, having team members in the area will surely put your clients’ minds at ease, knowing that if something goes wrong, they can contact someone locally.

Multilingual Support

Since it is inherently international, multilingualism is critical in the travel industry. It elevates the travel experience for clients who come from diverse cultural and linguistic backgrounds. 

By speaking in their client’s native or preferred language, travel businesses can ensure smooth communication with their customers – and ultimately, avoid misunderstanding when it comes to booking.

Multilingual customer support also promotes cultural sensitivity as it shows respect for the client’s culture and customs. Moreover, speaking multiple languages can help you reach a broader market since travelers are more likely to book with a company that can communicate with them in their native tongue.

Multilingual services also show that you are customer-centric and committed to the exceptional client experience. 

As much as 71.5% of customer service leaders report that multilingual support has helped improve their customer satisfaction rates, which would lead to positive reviews and a more excellent bottom line.

Omnichannel Support

The expectations of this generation’s tech-savvy travelers are rapidly evolving.

When it comes to customer service in the hospitality industry , they want speed and convenience in a platform of their choice.  

If businesses want to succeed in an increasingly competitive market, they must build a strategy that puts the customer’s needs at the forefront of their operations. This means carrying customer support across various channels – phone, email, social media , and chatbots.

Since omnichannel technical support is crucial for client satisfaction , businesses can differentiate themselves from competitors and build a strong foundation with exceptional customer service skills toward long-term success.

Level Up Your Customer Service for Tourism Industry

Since customer service is critical for success in the tourism industry ,  businesses can elevate their customer interactions and maintain a steady stream of loyal customers with SuperStaff’s top-notch 24/7 support .  

Apart from ensuring that your clients can reach you anytime, anywhere, we also feature a full suite of business and knowledge process outsourcing solutions designed to drive your efficiency and boost your profits.  

Contact us today and explore how SuperStaff can take your business to the next level.

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Why Is Customer Service Important in Tourism?

By Alice Nichols

Customer service is an integral part of the tourism industry. Whether you are a hotel, restaurant, or tour operator, providing exceptional customer service can make all the difference in creating a memorable experience for your guests. In this article, we will explore why customer service is important in tourism and how it can benefit businesses.

Creating Positive Experiences

One of the main reasons why customer service is important in tourism is that it helps create positive experiences for guests. When guests feel welcomed and valued, they are more likely to enjoy their stay and leave positive reviews. This not only benefits the business but also helps attract more guests in the future.

Building Trust

Trust is essential in any business, but especially in tourism where guests are often visiting unfamiliar places. Providing excellent customer service can help build trust with guests and make them feel more comfortable during their stay. This can lead to repeat business and positive word-of-mouth referrals.

Handling Complaints

No matter how well a business operates, there will always be times when things don’t go as planned. When this happens, it’s important to have a strong customer service team that can handle complaints effectively and efficiently. By resolving issues quickly and professionally, businesses can turn potentially negative experiences into positive ones.

Creating Loyalty

Providing exceptional customer service can also lead to increased loyalty from guests. When guests feel valued and appreciated, they are more likely to return for future visits and recommend the business to others. This not only benefits the business financially but also creates a strong reputation within the industry.

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Customer Service in the Travel Industry: How to Do More with Less

Doing more with less is nothing new for the travel industry. It’s been tough out there for the last few years—and while the future is bright, travel and tourism businesses are still facing a labor shortage that’s causing customer satisfaction to plummet.

While HR leaders are facing the labor shortage head-on with recruiting tactics and budget increases, customer service teams need to search for ways to provide the service the industry is known for without the extra body count.

In other words… You need to do more with less.

The best way to do that is with a conversational AI platform. Whether a hotel, airline, car rental company or experience provider, you can provide superior service to your customers without overworking your support team.

Keep reading to take a look at the state of the travel industry’s labor shortage and how you can still provide exceptional customer service.

Table of Contents

Travel is back, but labor is not.

In 2019, the travel and tourism industry accounted for 1 in 10 jobs around the world. Then the pandemic happened, and the industry lost 62 million jobs overnight, according to the World Travel & Tourism Council (WTTC) .

Now that most travel restrictions, capacity limits, and safety restrictions are lifted, much of the world is ready to travel again. The pent-up demand has caused the tourism and travel industry to outpace overall economic growth. In 2021, the GDP grew by 21.7%, while the overall economy only grew by 5.8%, according to the WTTC .

In 2021, travel added 18.2 million jobs globally, making it difficult to keep up with labor demands. In the U.S., 1 in 9 jobs went unfilled in 2021.

What’s causing the shortage? A combination of factors:

• Flexibility: Over the last few years, there has been a mindset shift when it comes to work-life balance. Many people aren’t willing to give up weekends and holidays with their families to work in hospitality.
• Safety: Many jobs in hospitality work on the frontline, interacting with the public on a regular basis. Even though the pandemic has cooled in most parts of the world, some workers are still hesitant to work face-to-face. This goes double for older workers and those with health concerns, who may have either switched industries or dropped out of the workforce altogether.
• Remote work: The pandemic made remote work more feasible for many industries, and travel requires a lot of in-person work and interactions.

How is the labor shortage impacting customer service?

As much as we try to separate those shortages from affecting service, customers feel it. According to the American Customer Satisfaction Index , hotel guests were 2.7% less satisfied overall between 2021 and 2022. Airlines and car rental companies also dropped 1.3% each.

While there are likely multiple reasons factoring into lower customer satisfaction rates, there’s no denying that the labor shortage has an impact.

As travel ramps back up, there’s an opportunity to reshape the industry at a fundamental level. The world is ready to travel again, but demand is outpacing your ability to grow. While HR is hard at work recruiting new team members, it’s time to look at your operations and see what you can do to deliver great customer service without adding to your staff.

What a conversational AI platform can do in the travel industry.

First, what is conversational AI? Conversational AI combines multiple technologies (like machine learning and natural language processing) to enable human-like interactions between people and computers. For your customer service team, this means there’s a coworker that never sleeps, never argues, and seems to have all the answers.

A conversational AI platform like Quiq can help support your travel business’s customer service team with tools designed to speed conversations and improve your brand experience.

In short, a conversational AI platform can help businesses in the travel industry provide excellent customer service despite the current labor shortage. Here’s how.

Resolve issues faster with conversational AI support.

When you’re short-staffed, you can’t afford inefficient customer conversations. Switching from voice-based customer service to messaging comes with its own set of benefits.

Using natural language processing (NLP), a conversational AI platform can identify customer intent based on their actions or conversational cues. For example, if a customer is stuck on the booking page, maybe they have a question about the cancellation policy. By starting with some basic customer knowledge, chatbots or human agents can go into the conversation with context and get to the root of the problem faster.

Conversational AI platforms can also route conversations to the right agent, so agents spend less time gathering information and more time solving the problem. Plus, messaging’s asynchronous nature means customer service representatives can handle 6–8 conversations at once instead of working one-on-one. But conversational AI for customer service provides even more opportunities for speed.

Anytime access to your customer service team.

Many times, workers leaving the travel industry cite a lack of schedule flexibility as one of their reasons for leaving. Customer service doesn’t stop at 5 o’clock, and support agents end up working odd hours like weekends and holidays. Plus, when you’re short-staffed, it’s harder to cover shifts outside of normal business hours.

Chatbots can help provide customer service 24/7. If you don’t already provide anytime customer service support, you can use chatbots to answer simple questions and route the more complex questions to a live agent to handle the next day. Or, if you already have staff working evening shifts, you can use chatbots to support them. You’ll require fewer human agents during off times while your chatbot can pick up the slack.

Connect with customers in any language.

Five-star experiences start with understanding. You’re in the travel business, so it’s not unlikely that you’ll encounter people who speak different languages. When you’re short-staffed, it’s hard to ensure you have enough multilingual support agents to accommodate your customers.

Conversational AI platforms like Quiq offer translation capabilities. Customers can get the help they need in their native language—even if you don’t have a translator on staff.

Work-from-anywhere capabilities.

One of the labor shortage’s root causes is the move to remote work. Many customer-facing jobs require working in person. That limits your labor pool to people within the immediate area. The high cost of living in cities with increased tourism can push locals out.

Moving to a remote-capable conversational tool will expand your applicant pool outside your immediate area. You can attract a wider range of talented customer service agents to help you fill open positions.

Build automation to anticipate customer needs.

A great way to reduce the strain on a short-staffed customer service team? Prevent problems before they happen.

A lot of customer service inquiries are simple, routine questions that agents have to answer every day. Questions about cancellation policies, cleaning and safety measures, or special requests happen often—and can all be handled using automation.

Use conversational AI to set up personalized messages based on behavioral or timed triggers. Here are a few examples:

• When customers book a vacation: Automatically send a confirmation text message with their booking information, cancellation policy, and check-in procedures.
• The day before check-in: Send a reminder with check-in procedures, along with an option for any special requests.
• During their vacation: Offer up excursion ideas, local restaurant reservations, and more. You can even book the reservation or complete the transaction right within the messaging platform.
• After an excursion : Send a survey to collect feedback and give customers an outlet for their positive or negative feedback.

By anticipating these customer needs, your agents won’t have to spend as much time fielding simple questions. And the easy ones that do come in can be handled by your chatbot, leaving only more complex issues for your smaller team.

Don’t let a short staff take away from your customer service.

There are few opportunities to make something both cheaper and better. Quiq is one of them. Quiq’s conversational AI Platform isn’t just a stop-gap solution while the labor market catches up with the travel industry’s needs. It will actually improve your customer service experience while helping you do more with less.

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Tour Operator Guide: How to Improve Customer Service

In the vibrant and ever-evolving world of travel and tourism, standing out from the crowd is not just a goal—it's a necessity, especially for travel agencies and tour operators.

As we navigate through this competitive landscape, the key to success lies in our ability to provide exceptional customer service and unique experiences.

Today, we're thrilled to share 10 out-of-the-box tips that can transform your tours from ordinary to extraordinary. From themed dress days to virtual reality segments, these tips are not just creative; they are practical, adaptable, and sure to result in exceptional customer service.

So, let's dive in and explore how you can elevate your tour offerings to new heights!

Why Great Customer Service is Essential for Travel Operators

Let's talk about something super important - customer service.

It's the secret sauce that can make or break your business.

Think about it: when your customers are happy, they're not just buying a ticket or booking a tour; they're buying an experience, a piece of a dream. And you're not just a travel guide; you're a dream weaver!

It's all about making connections, understanding what your travelers need (sometimes even before they do!), and then knocking their socks off by going above and beyond. In a world where everyone's offering the next big adventure, it's your top-notch customer service that will keep them coming back for more.

Remember, in the travel biz, it's not just about the destination; it's about the journey – and that journey should be filled with smiles, support, and superb service.

Increase Customer Satisfaction in Travel and Tourism Industry With These 10 Tips

1. themed dress days.

Imagine your guides greeting guests in period attire for a historical tour or in wildlife-themed costumes for a safari adventure. Themed dress days add an element of fun and immersion that enhances the storytelling aspect of your tours. This visual and interactive touch not only delights guests but also makes for fantastic photo opportunities, encouraging social media shares.

To successfully implement themed dress days, prepare a wardrobe of costumes relevant to your tour's theme. Schedule these special days in advance and promote them through your  marketing channels . Also, ensure that all staff members are comfortable and trained in engaging with guests while in costume.

Example : A historical tour company in Rome could have guides dress as ancient Romans on specific days. They could wear togas and laurel wreaths, creating a more immersive experience as they lead guests through the Colosseum and Roman Forum.

2. Interactive Elements

Engaging your guests is key to a memorable tour. Incorporate interactive segments like treasure hunts, quizzes, or puzzles that relate to your tour's theme. For instance, a city tour could include a mystery-solving element where guests uncover hidden gems of the city. This adds an exciting, game-like dimension to your tours, making them more dynamic and memorable.

Interactive elements like treasure hunts may require additional planning and resources. One solution is to start small with simpler, low-cost interactive activities and gradually evolve them based on guest feedback and resources.

Example : A city tour operator in Paris might include a treasure hunt where guests solve riddles at each landmark, like finding a hidden message near the Louvre or deciphering a clue at Notre-Dame. This turns a regular tour into an engaging adventure.

3. Local Surprise Visits

Nothing in travel industry beats the authenticity of  local  experiences. Arrange for surprise visits or guest appearances by local artisans, musicians, or experts. This not only supports local communities but also provides an exclusive peek into the local culture and practices, offering a genuine and enriching experience that goes beyond the usual tour itinerary.

Example : A culinary tour in Tokyo could surprise guests with a visit from a local sushi chef who demonstrates sushi-making techniques. Guests not only learn about sushi but also get a taste of local expertise.

4. Digital Souvenirs

In a digital age, offering personalized digital souvenirs can be a game-changer. Create a digital photo album, a video montage, or even a virtual reality snapshot of the tour. These digital keepsakes are easy to share and serve as a modern and eco-friendly alternative to traditional souvenirs, keeping your brand in the hearts and minds of your guests.

Ensure digital souvenirs are accessible to all guests, including those with disabilities. Provide alternative formats like audio descriptions or tactile experiences for visually impaired guests.

Example : An adventure tour company in New Zealand could offer guests drone footage of their bungee jumping or hiking experiences. This digital souvenir provides a unique perspective and a memorable takeaway.

5. Cultural Immersion Workshops

To deepen the cultural experience, include short, interactive workshops in your tours. Whether it's a pottery-making session in a local village, a cooking class featuring regional cuisine, or a dance workshop, these activities offer hands-on learning and a deeper connection with the destination's culture.

Make sure these workshops are inclusive and respectful of all cultures and backgrounds. Provide options that cater to various skill levels and physical abilities.

Example : In a cultural tour of India, guests could participate in a short Bollywood dance workshop in Mumbai, learning the basic steps and experiencing the vibrancy of Indian cinema culture.

6. Sensory Experiences

Enhance the sensory appeal of your tours. If it's a nature tour, incorporate elements that engage all senses, like a guided meditation amidst the sounds of the forest. For culinary tours, focus on the aroma and flavors of local dishes. By engaging multiple senses, you create a more immersive and impactful customer experience.

Example : A nature tour in the Amazon Rainforest could include a segment where guests close their eyes and identify sounds of the rainforest, followed by a tasting of local fruits, engaging their sense of hearing, taste, and smell.

7. Eco-Friendly Swag

Show your commitment to sustainability by offering eco-friendly tour merchandise. Items like organic cotton t-shirts, bamboo utensils, or seed paper postcards not only serve as mementos but also provide exceptional customer service and promote environmental awareness. This approach resonates especially well with the growing demographic of eco-conscious travelers.

Emphasize the importance of sustainable practices in the hospitality industry throughout your operations. Choose swag items that are eco-friendly and communicate your commitment to environmental conservation to your guests.

Example : A beach tour operator in Hawaii could provide guests with reusable water bottles and bamboo sunglasses. These eco-friendly items serve as practical souvenirs and align travel companies with environmental conservation efforts.

8. Personalized Itineraries

In today's world of personalized services, offering customized itineraries can set your tours apart. Allow guests to pick and choose travel arrangements, activities or destinations that interest them the most. This flexibility not only caters to diverse preferences but also makes guests feel valued and understood. As such, make sure to craft personalized messages in addition to your personalized experiences.

Example : A tour operator in New York City could offer customizable itineraries where guests choose from options like a Broadway show, a visit to a particular museum, or a food tour in a specific neighborhood, catering to their interests.

9. Virtual Reality Segments

Incorporate virtual reality (VR) to showcase historical events, inaccessible terrains, or future projections. For instance, VR can transport guests back in time to historical battles or forward to envisaged city developments. This high-tech approach adds a futuristic edge to your tours and can be particularly appealing to tech-savvy travelers.

Train your travel and hospitality staff on how to use VR equipment safely and effectively. Ensure they can assist guests who may be unfamiliar it, to make them a good customer service team.

Example : A historical tour in Egypt could use VR headsets to show guests what the pyramids and Sphinx looked like in their prime, offering an exciting contrast between past and present.

10. Post-Tour Online Community

Create an online platform where guests can connect post-tour. This can be a social media group or a forum on your website where they can share photos, tips, and stories. This community-building approach not only keeps the memories alive but also creates a network of brand ambassadors who share their experiences with potential new customers.

Example : After a wildlife safari in Kenya, the tour company could invite guests to join a Facebook group where they can share photos, stories, and tips with other customers and future travelers. This platform could also feature wildlife conservation news and updates on animals they saw during their safari.

Enhancing Customer Service with Ticketinghub's Innovative Features

Discover the power of Ticketinghub to revolutionize your tour operation's customer service! With its intuitive and feature-rich platform, Ticketinghub becomes an invaluable asset for any tour operator looking for excellent customer service.

• Streamlined Booking Process : Ticketinghub's  easy-to-use  booking system simplifies the reservation experience, ensuring a smooth and hassle-free process for clients.
• Real-Time Updates and Notifications : Keeps travelers informed with automated updates, enhancing communication and reducing confusion.
• Personalized Experience Management : Offers the flexibility to tailor bookings to individual preferences, providing a more personalized experience for more customer satisfaction.
• Enhanced Operational Efficiency : Streamlines your tour operations, allowing for more focus on customer interaction and satisfaction.
• Competitive Edge in the Market : By integrating advanced features of Ticketinghub, tour operators can stand out in the market, providing exceptional customer service.

In conclusion, the world of tour and activity businesses is ripe with opportunities for innovation and creativity. By implementing these 10 out-of-the-box tips, you can offer more than just a tour—you can provide an experience that is as unique and memorable as your destination itself.

Remember, in our travel and hospitality industry now, it's not just about the sights—it's about how you make your guests feel. So, take these ideas, adapt them to your unique offerings, and watch as your tours transform into unforgettable journeys.

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SERVICES: SECTOR BY SECTOR

Tourism and travel-related services

Tourism plays an important role for nearly all WTO members, especially in terms of its contribution to employment, GDP, and the generation of foreign exchange. Tourism-related services are typically labour-intensive, with numerous links to other major segments of the economy, such as transport, cultural and creative services, or financial and insurance services.

Tourism and travel-related services include services provided by hotels and restaurants (including catering), travel agencies and tour operator services, tourist guide services and other related services.

A crucial aspect of trade in tourism services is the cross-border movement of consumers (mode 2). This permits a variety of workers, including those in remote areas, to become services exporters — for instance, by guiding tourists, performing in local events, or working in tourist accommodation. While digitalisation offers great potential for many aspects of tourism services, the sector continues to depend highly on the cross-border movement of both customers and employees, and remains strongly linked to transport services.

Current commitments and exemptions

Tourism commitments have been undertaken by over 133 WTO members, more than in any other service sector. This indicates the desire of most members to expand their tourism sectors and to increase inward foreign direct investment (FDI) as part of their efforts to promote economic growth.

The level of commitments by sub-sector varies widely for tourism and travel-related services. Commitments on services provided by hotels and restaurants are the most frequent, with a significantly smaller number of WTO members making commitments on travel agencies and tour operator services. Only about half of members with commitments on tourism have included tourist guide services, and only a few members have made commitments for the “other” tourism services category.

• Schedules of WTO Members with Specific Commitments on Tourism Services

Treatment of the sector in negotiations

Tourism services, like other services covered by the General Agreement on Trade in Services (GATS), were included in the services negotiations that began in 2000.

One of the earliest documents was a proposal for a GATS Annex on Tourism, originally sponsored by the Dominican Republic, El Salvador and Honduras ( S/C/W/127 and S/C/W/127/Corr.1 ). The proposal had two main aspects: more comprehensive treatment of the tourism sector (with respect to classification issues), and the prevention of anti-competitive practices. As part of the plurilateral process, a joint request was made by a group of developing countries, asking for improved tourism commitments for all modes of supply.

• Proposals and related negotiating documents on tourism services

Additional information

Search Documents Online These links open a new window: allow a moment for the results to appear.

• Secretariat background notes on tourism services (Document code S/C/W/* and keyword “tourism and Background Note”)   > search    > help
• Tourism services (Document code S/CSS/W/* or TN/S/W/* and Title “Tourism”)    > search

You can perform more sophisticated searches from the Documents Online search facility by defining multiple search criteria such as document symbol (i.e. code number), full text search or document date.

Some useful links 

• World Tourism Organization (UNWTO)
• World Travel and Tourism Council (WTTC)
• OECD Tourism Unit (Centre for Entrepreneurship, SMEs, Regions and Cities)

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Related Expertise: Transportation and Logistics , Customer Demand

What Travel and Tourism Consumers Really Want—and Why

September 25, 2019  By  Jean Lee ,  Lara Koslow ,  Greg McRoskey ,  Pranay Jhunjhunwala , and  Jason Guggenheim

There has never been a better time to be a travel consumer, as new brands and innovative offerings continue to emerge all the time. But there has also never been a tougher time to be a travel executive—especially at incumbent companies. Those new offerings? They come from wave after wave of disruptive new entrants. In today’s environment, the traditional approach to understanding consumers—which focuses primarily on demographics and basic behaviors—no longer delivers the level of insight that companies need. Instead, companies need to understand what the underlying factors that influence a purchase decision are and how that decision can change, depending on a consumer’s context at the time of purchase and on the range of options available. Ultimately, companies will be in a better position to grow if they think less about what they’re trying to sell and more about what customers want to buy.

Over the past several years, companies in a number of other industries—most notably Identifying the Sources of Demand to Fuel Growth —have applied this approach, which we call demand-centric growth (DCG) . Increasingly, travel and tourism companies are using DCG to crack the code of a more dynamic market characterized by greatly expanded consumer choice. The concept has broad implications for new products and brands, loyalty programs, M&A, and other key areas of company strategy. For incumbent travel and tourism companies, it offers a clear way to address a tough market that is changing faster than they can.

Traditional Solutions No Longer Work

By most metrics, the travel industry is thriving overall and continues to grow, but the news is not all good. Supply has exploded, due to growth among incumbent companies and recent entrants that offer a wider set of options—some entirely new to the industry. In the cruise industry, supply will outpace demand within the next several years. In the lodging industry, Air­bnb and other shared-economy entrants have changed the rules of the game by putting private apartments and homes on the market, thereby reducing the demand for hotel rooms.

Established companies in all travel and tourism segments—airlines, cruise lines, and hotels—are struggling to tap into new growth or wrest market share away from competitors. They have tried various strategies, with little success so far. Here are some common examples:

• Choosing Quantity over Quality. Some companies have put near-term growth ahead of all other objectives, to the point where they can’t deliver a consistent experience.
• Overrelying on Unsustainable Advantages. Other companies have attempted to aggressively control supply—as when some airlines hold gate slots at airports in order to limit competition—giving themselves a high share of booking customers not because the customers prefer them but because the customers have no choice. It’s only a matter of time before regulations evolve and supply again increases to meet growing demand.
• Stretching the Brand Too Far. Still other companies try to be all things to all consumers—and end up being nothing to anyone because they lack a clear and differentiated position in the market. Think of a resort that offers guests a party scene but also touts family-friendly vacations. It’s hard to satisfy the full range of consumer preferences, especially conflicting ones. Companies that have tried to do so end up not being able to maintain any clear emotional connections to consumers.
• Joining the Race to the Bottom. It’s tempting to gain share by offering price discounts, but that game is expensive and difficult, and it is rarely sustainable. Price wars usually result in lose-lose outcomes—confusing customers and dissolving any nascent brand loyalty when brands inevitably try to recover by raising prices.

The common flaw in these strategies is that they lack a deep understanding of what consumers want, how their needs may vary from one occasion to another, and where they may look to meet their needs. (See Exhibit 1.) Often, customers have more options than companies think. For example, the Delta Shuttle connecting New York, Boston, Washington, and Chicago competes not just with other airlines but also with Amtrak. Airlines in Asia and Europe compete with high-speed rail lines. Cruise lines compete with each other and also with land-based vacations. A hotel company can no longer afford to focus exclu­sively on other hotels as its competition; it must also consider owner-rented homes as potential rivals. Evidently, the traditional frames of reference in travel and tourism are broken.

Clear Advantages from a New Approach: DCG

To understand how consumers make choices on the basis of their real-world frame of reference, companies need to look at customer behavior in a fundamentally new way. Specifically, they need to understand how demand can fuel growth, either by taking market share from competitors or by unlocking new sources of revenue. DCG establishes this broader considera­tion set by examining choices through the lens of demand versus supply. It takes into account the set of underlying consumer needs that companies may or may not be meeting despite the choices consumers make in response to available supply. In a supply-constrained world, for example, travelers flying from a hub city typically turn to the dominant airline—not because they want to, but because the airline’s more convenient flight schedules and connections effectively force them to. Finally, DCG appreciates that consumers’ needs and interests are not static, and it analyzes the unique circumstances that may drive travelers to make different decisions when planning different trips.

The DCG approach has several qualities that incumbent travel and tourism companies will find advantageous:

• Lasting. Unlike demographic-based marketing, DCG helps companies understand how and why individual consumers make their choices about travel, leading to a far more accurate and enduring picture of the market. At times, it can illuminate factors that even consumers themselves can’t articulate. The result is a much more sustainable approach to growth—one that is built on a simple yet comprehensive view of demand.
• Holistic . DCG looks at demand holistically, considering both existing and prospective customers, and both traditional and disruptive competitors. This encourages companies to devise a forward-looking growth strategy grounded not just in what is, but in what could or should be, shedding light on missed opportunities and potential white spaces in the market. In addition, by replacing a traditional brand-based market perspective with an outside-in approach, DCG provides an objective, customer-centric view of where a company stands relative to its competitors.
• Quantifiable. DCG helps companies quantify the opportunities that potential initiatives present, by assessing latent demand and competitive inten­sity. Only through this lens can com­panies understand their potential share of a consumer’s wallet and begin to shape a winning, customer-centric strategy. (See the sidebar “IHG’s New Hotel Brand Addresses an Unmet Need Among Budget-Conscious Travelers.”) By describing the opportunity in terms of actual numbers, DCG brings science to the art.

IHG’s New Hotel Brand Addresses an Unmet Need Among Budget-Conscious Travelers

IHG, the parent company of such hotel brands as InterContinental Hotels & Resorts, Kimpton Hotels & Restaurants, Crowne Plaza Hotels & Resorts, and Holiday Inn Express, was looking for new growth in a portfolio that was already strong. Management was concerned about being fully saturated in the company’s largest markets. It used demand-centric growth to identify a clear unmet need among hotel customers: a mass offering that provided reliable quality in the form of a great night’s sleep in a clean, well-designed room at a fair price. (Current alternatives in the market were either at a price point higher than consumers desired for this type of travel or very unreliable in terms of quality and consistency.)

IHG repositioned its existing brands and offerings to minimize overlap, and then invested in the new hotel brand, which it called avid hotels. Key features include: rooms designed for sound sleep, featuring a “best in class” mattress and sleep experience; high-quality, complimentary grab-and-go breakfast with 24/7 bean-to-cup coffee; and public spaces with fresh, modern designs. This brand is designed for travelers who want a hotel stay that finally meets their expectations for the type of hospitality they value most—the basics done exceptionally well—at a per-night rate expected to be about $10 to $15 less than IHG’s industry-leading Holiday Inn Express brand.

IHG launched the new avid hotels brand in September 2017, less than a year after the start of brand development—an accelerated pace in the hotel industry. Today, there are over 170 executed licenses with franchisees to build and open hotels across the US, Canada, and Mexico, and IHG recently announced plans to expand to Germany. Credit Suisse described avid hotels as the “most significant addition to IHG’s brand stable in over 25 years” and upgraded the stock to “outperform” as a result.

• Foundational.  Establishing a baseline understanding of demand gives com­panies a north star and a common language to use in aligning the entire organization. It is not just a consumer strategy but a company strategy. After assessing the demand landscape and analyzing sales volume and brand fit, management might decide to launch a new route or a new service offering, acquire a competitor that has a stronger position relative to that target, or shift investment to areas where a brand may be vulnerable to attack. (See Exhibit 2.) Every touch point in the customer journey should reinforce the brand’s positioning. And the company should align every one of its internal aspects and functions—from pricing to sales and marketing to capacity planning to organizational structure—to execute the strategy successfully.

• Transformational. Finally, DCG helps companies assemble portfolios of complementary brands. As a result, they can determine what the right M&A strategy is, whether to launch a new brand, or how to design their loyalty program. (See the sidebar “Alaska Airlines Integrates a Customer-Centric Merger.”) 

Alaska Airlines Integrates a Customer-Centric Merger

After Alaska Airlines’ parent company bought Virgin America in 2016, it faced some key questions about the post­merger organization. Should it keep Virgin’s brand (licensed from Sir Richard Branson’s Virgin Group) or operate under the 85-year-old Alaska Airlines brand? Should it strive to become a nationally relevant brand or stay focused on the West Coast, where Alaska and Virgin America were both well known? And how should it position the brand vis-à-vis the competition? The stakes were high: the $2.6 billion Virgin America acquisition was costly in relation to Alaska Air Group’s market cap of about $10 billion. As a company that has always centered around the customer, Alaska knew that it couldn’t make these decisions in the boardroom alone. Management needed to understand its customers.

The Alaska management team used demand-centric growth to identify several key insights. First, a deep customer analysis showed that Alaska had industry-­leading customer retention and loyalty once customers got to know the brand, whereas Virgin America was stronger in customer acquisition but somewhat less sustainable long-term. (Virgin America did appeal strongly to some customers, but they were a relatively narrow segment overall.) That led Alaska to announce that the Virgin America brand would be phased out over time; the distinctive red and white aircraft would eventually all display Alaska’s smiling Eskimo. In terms of the route network, Alaska had very strong brand affinity among West Coast travelers, and its customers cared deeply about route coverage in those markets. Armed with these insights, the company ran some economic simulations that pointed to a clear answer: focus on the West Coast.

Second, the company looked at the landscape of demand and implemented a new customer strategy centered on the concepts “feel good” and “refreshed”—a differentiating positioning that leverages the strength of both the Alaska Airlines and the Virgin America brands while balancing what existing customers already love with areas for potential innovation.

To activate this strategy, after conducting a robust conjoint analysis with target customers, the company rolled out a campaign with the slogan “Different Works” and reprioritized investments into experiential aspects that airline customers truly care about: feeling good and refreshed. Elements of the campaign included everything from new loyalty policies to bolder entertainment investments to music in airport ticketing and check-in areas. The company also empowered employees to ensure that customer interactions were positive, caring, and true to Alaska’s core.

In 2018 Alaska Airlines—the only legacy US carrier to have avoided bankruptcy throughout its 85-year history—ranked highest in the J.D. Power survey of customer satisfaction among traditional carriers for the 11th consecutive year.

It can also give companies critical guidance on the optimal way to enter a new market. The approach goes beyond assessing the performance of individual brands to show how a portfolio fits together. When brands within a portfolio lack differentiation from one another, parent companies risk confusing customers and cannibalizing sales. (See Exhibit 3.) At the same time, portfolio companies often miss out on clearly identifiable white-space opportunities. Brands compete internally for resources, too, and misaligned incentives often exacerbate disputes. A demand-centric growth approach sets up brands to compete together, rather than against each other.

The travel and tourism industry is ripe for customer-focused innovation—and so far, new entrants are getting there faster. As choices proliferate and consumer behavior becomes more complex, traditional demographic-based marketing will no longer suffice. Incumbent companies can continue to focus on price or supply, and suffer disruption from new entrants, or they can start taking steps to become more customer-centric, starting with developing a better understanding of what truly drives their customers’ decisions. Demand-centric growth provides a foundation for that understanding by clarifying what consumers want at the moment of purchase—and why.

Partner & Director, Customer Centricity

Managing Director & Senior Partner

Partner & Associate Director

Los Angeles

Managing Director & Senior Partner, Travel & Tourism Global Leader

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Chapter 7. Travel Services

7.1 Components of Travel Services

The travel services sector helps travellers arrange and reserve their vacation or business trips (StatsCan, 2018). This sector is made up of businesses and organizations that work in a coordinated effort to provide travellers with seamless arrangements to maximize their travel experience. Go2HR describes travel services experiences and employment opportunities as follows:

Within this sector, you have the flexibility of working in various capacities with event and conference planning organizations, travel companies and organizations, as well as associations, government agencies and companies that specialize in serving the needs of the tourism sector as a whole. (go2HR, Essential Tips – Travel Services, 2020)

Before we move on, let’s explore the term travel services a little more. As detailed in Chapter 1 , Canada, the United States, and Mexico have used the NAICS guidelines, which define the tourism industry as consisting of transportation, accommodation, food and beverage, recreation and entertainment, and travel services (Tourism HR Canada, 2020). These five sectors are defined and further detailed in B.C. by the B.C. government (BC Government, 2014) and go2HR on their website (go2HR, Career Explorer, 2020).

For many years, however, the tourism industry was classified into eight sectors: accommodations, adventure and recreation, attractions, events and conferences, food and beverage, tourism services, transportation, and travel trade (Yukon Department of Tourism and Culture, 2020; go2HR, 2020, What is Tourism? – Travel Services).

Tourism services support industry development and the delivery of guest experiences, and some of these are missing from the NAICS classification. To ensure you have a complete picture of the tourism industry in BC, this chapter will cover both the NAICS travel services activities and some additional tourism services.

First, we’ll review the components of travel services as identified under NAICS, as well as exploring popular careers within:

• Travel agencies (brick and mortar)
• Online Travel Agencies/OTA
• Tour operators
• Destination marketing organizations (DMOs)

Other Organizations

Following these definitions and descriptions, we’ll take a look at some other support functions that fall under tourism services. These include sector organizations, tourism and hospitality human resources organizations, training providers, educational institutions, government branches and ministries, economic development and city planning offices, and consultants.

Finally, we’ll look at issues and trends in travel services, both at home, and abroad.

While the application of travel services functions are structured somewhat differently around the world, there are a few core types of travel services in every destination. Essentially, travel services are those processes used by guests to book components of their trip. Let’s explore these services in more detail.

Travel Agencies

A travel agency is a business that operates as the intermediary between the travel industry (supplier) and the traveller (purchaser). Part of the role of the travel agency is to market prepackaged travel tours and holidays to potential travellers. The agency can further function as a broker between the traveller and hotels, car rentals, and tour companies (Goeldner & Ritchie, 2003). Travel agencies can be small and privately owned or part of a larger entity.

A travel agent is the direct point of contact for a traveller who is researching and intending to purchase packages and experiences through an agency. Travel agents can specialize in certain types of travel including specific destinations; outdoor adventures; and backpacking, rail, cruise, cycling, or culinary tours, to name a few. These specializations can help travellers when they require advice about their trips. Some travel agents operate at a fixed address and others offer services both online and at a bricks-and-mortar location. Travellers are then able to have face-to-face conversations with their agents and also reach them by phone or by email. To promote professionalism within the travel industry, travel counsellors can apply for a specialized diploma or certificate in travel from ACTA (ACTA, 2020a; go2HR, 2020a).

Today, travellers have the option of researching and booking everything they need online without the help of a travel agent. As technology and the internet are increasingly being used to market destinations, people can now choose to book tours with a particular agency or agent, or they can be identified as seeking Domestic Independent Travel (DIT) or Foreign Independent Travel (FIT) , by creating their own itineraries from a number of suppliers.

Online Travel Agents (OTAs)

Increasing numbers of travellers are turning to online travel agents (OTAs), companies that aggregate accommodations and transportation options and allow users to choose one or many components of their trip based on price or other incentives. Examples of OTAs include iTravel2000, Booking.com, Expedia.ca, Hotwire.com, and Kayak.com. OTAs continue to gain popularity with the travelers; in 2012, they reported online sales of almost $100 billion (Carey, Kang, & Zea, 2012) and almost triple that figure, upward of $278 billion, in 2013 ( The Economist , 2014).

In early 2015 Expedia purchased Travelocity for $280 million, merging two of the world’s largest travel websites. Expedia became the owner of Hotels.com, Hotwire, Egencia, and Travelocity brands, facing its major competition from Priceline (Alba, 2015).

Although OTAs can provide lower-cost travel options to travellers and the freedom to plan and reserve when they choose, they have posed challenges for the tourism industry and travel services infrastructure. As evidenced by the merger of Expedia and Travelocity, the majority of popular OTA sites are owned by just a few companies, causing some concern over lack of competition between brands. Additionally, many OTAs charge accommodation providers and operators a commission to be listed in their inventory system. Commission-based services, as applied by Kayak, Expedia, Hotwire, Hotels.com, and others, can have an impact on smaller operators who cannot afford to pay commissions for multiple online inventories (Carey, Kang & Zea, 2012). Being excluded from listings can decrease the marketing reach of the product to potential travellers, which is a challenge when many service providers in the tourism industry are small or medium-sized businesses with budgets to match.

While the industry and communities struggle to keep up with the changing dynamics of travel sales, travellers are adapting to this new world order. One of these adaptations is the ever-increasing use of mobile devices for travel booking. The Expedia Future of Travel Report found that 49% of travellers from the millennial generation (which includes those born between 1980 and 1999) use mobile devices to book travel (Expedia Inc., 2014), and these numbers are expected to continue to increase. Travel agencies are reacting by developing personalized features for digital travellers and mobile user platforms (ETC Digital, 2014). With the number of smartphone users expected to reach 1.75 billion in 2014 (CWT Travel Management Institute, 2014) these agencies must adapt as demand dictates.

A key feature of travel agencies’ (and to a growing extent transportation carriers) mobile services includes the ability to have up-to-date itinerary changes and information sent directly to consumers’ phones (Amadeus, 2014). By using mobile platforms that can develop customized, up-to-date travel itineraries for clients, agencies and operators are able to provide a personal touch, ideally increasing customer satisfaction rates.

Take a Closer Look: PATA — The Future of Travel is Personalisation at Scale

“The industry has changed monumentally over the past decade. The rise of meta-search websites and sharing economy services like Airbnb is giving travellers more control and choice than ever before. However, this is nothing compared to the changes that are on the horizon as technologies like mobile, AR, AI, and VR become mainstream.

One thing is certain; the pace of change is accelerating. Against this backdrop, the travel industry as a whole will need to fundamentally shift its focus to continuous innovation.” (PATA, 2019)

Despite the growth and demand for OTAs, brick and mortar travel agencies are still in demand by travellers (IBISWorld, 2019) as they have both an online presence and physical locations. The COVID-19 pandemic may see an increase in travellers relying on personal contact with brick and mortar travel agencies but at a distance through mail and phone.

Tour Operators

A tour operator packages all or most of the components of an offered trip and then sells them to the traveller. These packages can also be sold through retail outlets or travel agencies (CATO, 2020; Goeldner & Ritchie, 2003). Tour operators work closely with hotels, transportation providers, and attractions in order to purchase large volumes of each component and package these at a better rate than the traveller could if purchasing individually. Tour operators generally sell to the leisure market.

Inbound, Outbound, and Receptive Tour Operators

Tour operators may be inbound, outbound, or receptive:

• Inbound tour operators  bring travellers into a country as a group or through individual tour packages (e.g., a package from China to visit Canada).
• Outbound tour operators work within a country to take travellers to other countries (e.g., a package from Canada to the United Kingdom).
• Receptive tour operators (RTOs) are not travel agents, and they do not operate the tours. They represent the various products of tourism suppliers to tour operators in other markets in a business-to-business (B2B) relationship. Receptive tour operators are key to selling packages to overseas markets (Destination BC, 2020) and creating awareness around possible product.

Destination Marketing Organizations

Destination marketing organizations (DMOs) include national tourism boards, state/provincial tourism offices, and community convention and visitor bureaus around the world. DMOs promote “the long-term development and marketing of a destination, focusing on convention sales, tourism marketing and service” (Destinations BC, 2020).

Spotlight On: Destinations International

Destinations International is the global trade association for official DMOs. It is made up of over 600 official DMOs in 15 countries around the world. DMAI provides its members with information, resources, research, networking opportunities, professional development, and certification programs. For more information, visit the Destinations International website.

With the proliferation of other planning and booking channels, including OTA s, today’s DMOs are shifting away from travel services functions and placing a higher priority on destination management components.

Working Together

One way tour operators, DMOs, and travel agents work together is by participating in familiarization tours (FAMs for short). These are usually hosted by the local DMO and include visits to different tour operators within a region. FAM attendees can be media, travel agents, RTO representatives, and tour operator representatives. FAMs are frequently low to no cost for the guests as the purpose is to orient them to the tour product or experience so they can promote or sell it to potential guests.

The majority of examples in this chapter so far have pertained to leisure travellers. There are, however, specialty organizations that deal specifically with business trips.

Spotlight On: Global Business Travel Association (GBTA) Canada

“GBTA Canada is the voice of the Canadian business travel industry. We believe in providing the business travel and meetings community with a global platform to serve as a resource library for their peers, to implement world-class Conferences, workshops and virtual meetings, and to foster an interactive network of innovation and support.” The GBTA state that their economic impact contributes $23.5 billion CAD in Canadian business travel (Economic Impact Study) and “$435+ billion CAD of business travel and meetings expenditures represented globally.” Visit the GBTA website .

Business Travel Planning and Reservations

Unlike leisure trips, which are generally planned and booked by end consumers using their choice of tools, business travel often involves a travel management company, or its online tools. Travel managers negotiate with suppliers and ensure that all the trip components are cost effective and comply with the policies of the organization.

Many business travel planners rely on global distribution systems (GDS) to price and plan components. GDS combine information from a group of suppliers, such as airlines. In the past, this has created a chain of information from the supplier to GDS to the travel management company. Today, however, there is a push from airlines (through the International Air Transport Association’s Resolution 787) to dissolve the GDS model and forge direct relationships with buyers (BTN Group, 2014).

Destination Management Companies

According to the Association of Destination Management Executives International (ADMEI), a destination management company (DMC) specializes in designing and implementing corporate programs, and “is a strategic partner to provide creative local experiences in event management, tours/activities, transportation, entertainment, and program logistics” (ADMEI, 2020). The packages produced by DMCs are extraordinary experiences rather than general business trips. These are typically used as employee incentives, corporate retreats, product launches, and loyalty programs. DMCs are the one point of contact for the client corporation, arranging for airfare, airport transfers, ground transportation, meals, special activities, and special touches such as branded signage, gifts, and decor (ADMEI, 2020). The end user is simply given (or awarded) the package and then liaises with the DMC to ensure particular arrangements meet his or her needs and schedule.

As you can see, travel services range from online to personal, and from leisure to business applications. Now that you have a general sense of the components of travel services, let’s look at some examples in Canada and BC.

Under NAICS, businesses and functions that assist with planning and reserving components of the visitor experience.

Other services that work to support the development of tourism and the delivery of guest experiences.

A business that provides a physical location for travel planning requirements.

An individual who helps the potential traveller with trip planning and booking services, often specializing in specific types of travel.

A trade organization established in 1977 to ensure high standards of customer service, engage in advocacy for the trade, conduct research, and facilitate travel agent training.

A service that allows the traveller to research, plan, and purchase travel without the assistance of a person, using the internet on sites such as Expedia.ca or Hotels.com.

An operator who packages suppliers together (hotel + activity) or specializes in one type of activity or product.

An operator who packages products together to bring visitors from external markets to a destination.

An operator who packages and sells travel products to people within a destination who want to travel abroad.

Someone who represents the products of tourism suppliers to tour operators in other markets in a business-to-business (B2B) relationship.

Also known as a destination management organization; includes national tourism boards, state/provincial tourism offices, and community convention and visitor bureaus.

Tours provided to overseas travel agents, travel agencies, RTOs, and others to provide information about a certain product at no or minimal cost to participants. The short form is pronounced like the start of the word "family" (not as each individual letter).

A company that creates and executes corporate travel and event packages designed for employee rewards or special retreats.

Introduction to Tourism and Hospitality in BC - 2nd Edition Copyright © 2015, 2020, 2021 by Morgan Westcott and Wendy Anderson, Eds is licensed under a Creative Commons Attribution 4.0 International License , except where otherwise noted.

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