Travel and Tourism Management

Sunday, April 25, 2010

The travel and tourism industry, one of the first industries that witnessed the immediate effects of the global recession last year, is finally reviving. Not only is the country back on the international traveler list of favorite holiday destinations, but inbound travel too has witnessed an upswing. Concurs Prasant Nair, president and head, human resources and special projects, Thomas Cook India, “Though the tourism department has tightened the visa norms in wake of the recent terrorist attacks in the country, inbound, outbound as well as corporate travel in the country has seen a positive uptrend recently. Thus, there is a demand for talent across the segment.” Says Zubin Karkaria, CEO and management director, Kuoni India and South Asia, “Though the global travel and tourism industry is one of the most sensitive industries to external issues ranging from economic downturns to natural disasters and terrorist attacks, it is also one of the most resilient industries. The long-term potential of the Indian travel and tourism industry remains strong, and the short-term outlook is very positive.”

FAST FIGURES

According to the World Travel and Tourism Council (WTTC), a global forum for business leaders in the travel and tourism industry, the industry employs approximately 220 million people and generates over 9.4% of world GDP. The contribution of this sector of the employment statistics in India is expected to rise from 49,086,000 jobs in 2010 to 58,141,000 jobs by 2020.

OPTIONS OPEN

The industry proffers employment opportunities in the public as well as private sector. Aspirants keen on pursing options in the public sector can look to work with various state tourism boards or the central tourism department at various levels. Karan Anand, head, relationship and supplier management, Cox and Kings India Ltd, elaborates, “In the public sector, aspirants can work as tourism officers, information assistants, tourist guide and ground officers.”

The private sector, which continues to expand with the rising participation of foreign companies in the country, offers various employment options. Qualified professionals are engaged in travel agencies, travel companies, tour operation companies, airlines, hotels and cargo management companies.

Travel Agencies: One of the most traditional forms of employment in the travel industry, travel agencies continues to rule the roost as far as inbound travel is concerned. According to Ajay Prakash, Chief executive, Nomad Travels and National General Secretary, Travel Agents Federation of India, “A travel agency’s operations can be divided into four to five key areas---domestic and international ticketing, travel documentation like passports, visas, health certification and foreign exchange, tour arrangements like hotels, sightseeing, transport, activities and attractions, MICE meetings, incentives, conferences and exhibitions, and administration and accounting. In addition to the operational work, there is a need for professionals in sales and marketing and website maintenance.”

This segment offers opportunities of entrepreneurship as well. However, this, like any other business, takes its time to get established and bring in profits. Says Anand, “Setting up a travel agency may seem simple but when a customer intends to invest a large amount of money on a holiday, he/she would look at the credibility of the agency. Opening up a franchisee of reputed travel company could provide to be a better option. That way you can get ready-made credibility, back-office support, deals and discounts that can be passed on to customer, thereby increasing business.”

Tour Operators: Firms dealing in tour operations usually organize tours for their clients from start to finish that is they conduct the entire tour right from designing a package dependent on the client’s budget to managing hi /her travel and stay at the holiday destination. Tour operating firms employ graduates across levels right from customer relations executive to finance departments and from experts in the operations area to human resources personnel. “The choice of the department a person would work in would depend on his/her preference and capabilities. However, the most popular and lucrative stream among fresher seems to be ticketing as most customers prefer to speak to someone while finalizing their holiday plans,” informs Anand. Another popular and exciting option is that of becoming an itinerary planner. Executives dealing in this segment prepare the perfect package for holiday goers. Itinerary planners get the opportunity to travel to the destination that they are allotted to, most often as part of a familiarization group of tour operators organized by tourism boards.

Airlines: Though 2009-2010 saw India’s airlines segment register a loss, the industry is expected to recover strongly during the financial year of 2011on account of an increase in passenger traffic and steady crude oil prices. A number of private airlines, that are looking to upgrade their domestic as well as international operations, are currently hiring pilots, cabin crew members, and customer service agents among other professionals across levels. The Airline industry is an excellent option for those who aspire to earn big bucks while traveling. Those are not too keen on traveling could opt for opportunities at the ground staff level.

Hotels: Sujit Banerjee, tourism secretary, recently announced that Indian would need 150,000 hotel rooms over the next three years in keeping with the recovery of the travel industry. This need has further been transformed into opportunities for those wanting to pursue a career in this segment with a number of international hotel chains, such as Marriott, Peninsula, Starwood Hotels and Resorts Worldwide Inc, and Hyatt Hotels Corp, already announcing their plans to expand their presence in the country in the coming years. Students with a qualification in hotel management would find employment at the managerial and supervisory positions in the front office, marketing, sales, housekeeping, and food and beverage departments.

CURRENCY CONCERNS

The travel industry offers good remunerations. Elaborates Karkaria, “Remunerations at the engry level have increased significantly over the past few years as the travel and tourism industry is competing against the equally fast growing BPO industry.” The starting salary for a fresher is generally Rs, 10,000 depending on the company. For those who plan to start their own travel agency, initial earnings may not be much. However, once you carve a niche for yourself, the rewards start coming in. Hotels, airlines, tourism boards offer travel agencies a number of special incentives such as commissions. The salary figures in the airlines segment ranges from Rs. 20,000 per month to a whopping one lakh per month depending on whether one is employed as flight attendant or pilot. The figure would high for those working with international airlines. In the hotel segment a fresher can expect an initial salary of Rs. 20,000 per month.

SKILL SPEAK

The travel and tourism industry is a consumer-driven industry and requires a professional to directly deal with customer at all levels. Thus, apart from the academic qualification that are crucial for entry into the industry, one must also possess people-friendly skills. Another quality one must possess in order to succeed in this industry is the wiliness to upgrade one’s knowledge from time to time.Adds Neelu Singh, COO, Ezeego1.com, “The ability to manage different time zones, good communication skills and patience play a major role for the success in the chosen field.” For those would want to set up their own venture, Prakash has valuable advice, “As an entrepreneur, you need to put in a lot of hard work in the initial year or two before reaping tangible rewards; the key to a successful travel business is networking and specialization. You need to constantly refresh your knowledge and anticipate needs and trends to maintain the relevance of your business according to changing times. Be patient, you’re dealing with people. Make the internet your friend, not your competitor. Define your specialty and refine it constantly.”

TRAINING TALK

Students can opt for diploma/degree in hotel management, travel and tourism, food and beverage, house keeping etc post class XII. Graduates can opt for PG course in the same. Any course a student pursues must be recognized or approved by the Directorate of Technical Education in the state or AICTE or internationally recognized courses like IATA.

With an increasing number of students talking interest in this industry, a number of institutes have mushroomed across the country claiming to offer travel and tourism programmes. Cautions career counsellor, Jayanti Ghose, “Before enrolling for a course a student must keep in mind that an undergrad degree or diploma in travel and tourism may not be as effective, as a degree/diploma I hotel management as it does not qualify as professional programme. A student should verify all the direct placement leads offered by the institute, rather than be satisfied byt eh vague promise of placement assistance.”

FUTURE BRIGHT

The travel and tourism industry holds great potential as this sector has not yet reached its zenith as experts predict a radical change in the holiday scenario in India. The short-term prospects are bright with a number of tourists expected to visit the country for the 2010 Commonwealth Games slated to be held in Delhi later this year and the 2010 budget increasing the tax exemption limit thereby leading to an increased disposable income and inevitably a rise in the number of Indians spending on holiday. Speaking about the long-term prospects, Nair asserts, “The travel industry is certain to witness more positive changes as Indians will, a couple a years from now, start viewing holidaying as necessity rather than a luxury or discretionary activity just like it is in parts of Europe, UK, US etc.”

INSTITUTE INDICATOR

1. Indian Institute of Tourism and Travel management (IITTM)
2. Institutes of Hotel Management under the National Council for Hotel Management and Catering Technology, New Delhi
3. Kuoni Academy
4. Oberoi Hotels STEP

(Source: The Times of India)

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