I often ask the question “What do you do?” when meeting travel industry players for the first time, especially at forums and seminars.
Most of the replies I receive are vague, requiring a series of follow-up questions before I finally get a clear answer.
Industry personnel ought to be more professional and businesslike.
In such gatherings, they must be ready to explain what they do in their companies and clearly outline the types of travel services they offer.
Many companies licensed under “Tour Operating Business and Travel Agency Business” incorporate “Travel and Tours” or “Holidays” in their company names.
However, these are general terms that do not specify the actual services provided.
For instance, if someone tells me they are a travel agent, I cannot be certain what their role is or what their company does.
It could be a travel agency, outbound tour operator, inbound/domestic tour operator, tour vehicle operator, or a combination of the above.
The licence for “Travel Agency Business” (formerly known as ticketing) permits the company to act as an agent for airlines, hotels, and other principals, much like independent agents for insurance companies.
Travel agencies are not allowed to organise or operate tours within the country or overseas.
They used to rely mainly on commissions from airlines, ranging from 5% to 9% for domestic and international fares until airlines stopped paying commissions in 2008.
Today, only a handful of large travel agencies in Malaysia manage to secure and service significant corporate accounts that are willing to pay service fees on top of airfares.
As for outbound tour operators, most organise a series of group tours using the same itineraries but with different departure dates.
They can also customise package tours to meet the requirements of individuals, couples, families, and private groups willing to pay more.
Large, reputable tour operators often bid to organise highly profitable overseas incentive tours, which require significant resources to ensure success.
The number of high achievers given free incentive tours can range from a few hundred to several thousand and must run like clockwork.
Most Muslim-owned tour companies covet the large pilgrimage market, with over 300,000 Malaysians travelling to Saudi Arabia for Umrah annually, in addition to the 31,600 quota for Haj.
The “Inbound” licence authorises companies to conduct tours within the country and operate tour buses, vans, or self-drive cars.
Vehicle permits are issued by the Land Public Transport Agency in the peninsula and the Ministry of Tourism, Arts, and Culture in Sabah and Sarawak.
Bookings for inbound tours can be made either directly by passengers before they arrive in Malaysia or through overseas outbound tour operators, especially for foreign tour groups.
Contrary to popular belief, the majority of customers for domestic tour packages are not Malaysians but foreigners.
Most visitors to Malaysia do not travel on package tours and make their local transport arrangements upon arrival.
There are also many foreigners working or studying in the country who may have family members residing here.
Many take the opportunity to travel within the country whenever they can.
On the other hand, Malaysians can easily arrange their transport and accommodation domestically without needing to purchase a package tour or go through intermediaries that do not add value.
Regarding outbound tours, when I ask participants during training about customers for overseas tours, they quickly answer “Malaysians,“ often forgetting that many foreigners residing in the country also travel actively within the region.
Additionally, local tour operators can sell their outbound tour packages to foreigners residing overseas.
For example, those in Johor can entice Singaporeans and foreigners residing on the island to join cheaper group tours departing from Senai, allowing them to enjoy significant savings.
While many travel industry players are unclear about their services and markets, many have glorified job titles, with company owners describing themselves as chief executive officers even when they have only a handful of staff and no managers.
Similarly, tours, sales or operations managers may not have junior staff to manage, but these titles are given to office staff to gain the confidence of customers, suppliers, peers, and the public.
Full-time tour leaders often introduce themselves as tour managers to differentiate themselves from part-timers.
Whether they call themselves tour directors, managers, or leaders, their basic job is to escort and assist tour groups overseas and ensure all pre-arranged services are provided.
As someone with insight into the travel industry, I often have to ask “What do you do?” to understand their actual roles and company activities so I can better assist in helping their careers and businesses.
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