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Test 939 TRAVEL AND TOURISM MARKETING 1

1. Which of the following is one of the responsibilities of government in the travel and tourism industry:A. To regulate and control transportation C. To hire and train tour operators B. To develop regional destinations D. To interpret emergency procedures

2. One of the characteristics of the form of business ownership known as an LLC is thatA. it is required to have at least three owners (members).B. the owners' personal property cannot be taken to pay the business's debts. C. the IRS collects taxes based on the LLC's gross income.D. this kind of business can last indefinitely.

3. Which of the following is an activity covered by environmental regulations that affects travel and tourism businesses:

A. Counseling substance abusers C. Adapting to worker safety B. Identifying natural resources D. Disposing of hazardous waste

4. Which of the following businesses would be most likely to have its own distribution center:A. Local travel agency C. Specialty shop B. Museum restaurant D. Chain store

5. In the travel and tourism industry, one aspect of coordinating distribution with the marketing function of pricing involves

A. developing pricing rules. C. earning high profits. B. achieving publicity goals. D. setting appropriate prices.

6. A producer may choose to use multiple distribution channels rather than a single distribution channel for all of the following reasons except to

A. market unrelated products. C. reach multiple target markets. B. avoid dependence on a single channel. D. create channel conflict.

7. Which of the following is an intermediary factor to consider when selecting an intermediary in the travel and tourism industry:

A. Services provided C. Location of the product's market B. Size of the product D. Number of potential customers

8. Why is it important for tour wholesalers to include logical evidence in a persuasive letter?A. To explain the idea in strong language C. To make the message more convincingB. To present interesting information D. To force the recipient to respond

9. What type of information should a travel agent include when writing a sales proposal to send to a client?A. Shipping and receiving C. Pricing and accounting B. Features and benefits D. Laws and regulations

10. What should a travel agent advise a client to do when applying for a first passport?A. Allow less than 48 hours to process the passportB. Obtain two duplicate photos in the specified sizeC. Advise that the agency can issue the passportD. Provide a driver's license for proof of citizenship

11. "The customer is ALWAYS right" is a philosophy many travel and tourism businesses try to follow in order to

A. help employees handle selling objections. C. make employees' jobs easier. B. prevent any conflict with customers/clients. D. create positive customer/client relations.

12. Why should travel agents possess adequate product knowledge in order to handle clients' inquiries?A. To organize supplies C. To plan effectivelyB. To sell successfully D. To develop promotions

Copyright © 2008 by Marketing Education Resource Center®, Columbus, Ohio


13. The first step in handling customer complaints is toA. call the manager for assistance. C. ask the customer to be brief.B. let the customer explain the problem. D. make a record of all the facts.

14. Economic goods differ from economic services in that economic goods areA. scarce. C. tangible. B. wanted. D. valuable.

15. Financial analysis occurs when a tour company A. keeps accurate expense records. C. plans for long-term success. B. communicates with potential customers. D. effectively retrieves data.

16. Travel and tourism businesses often are able to recover any losses caused by pure risks by purchasingA. insurance. C. warranties. B. security systems. D. safety devices.

17. A characteristic of an oligopoly is that travel and tourism businesses operating in this type of a market are greatly influenced by the

A. controls of government. C. actions of competitors. B. availability of resources. D. lack of technology.

18. Unemployment hurts the economy because unemployed people are unable to contribute to theA. balance of payments. C. annual federal deficit.B. gross domestic product. D. standard of living.

19. The U.S. produces widgets faster and cheaper than Switzerland. In this example, the U.S. has a(n) __________ advantage.

A. predictable C. constructiveB. comparative D. absolute

20. If Megan, an employee of the Star Cruise Lines, wants to lead change in her work environment, she must have the ability to

A. perform all types of tasks. C. make friends with managers. B. ask a variety of questions. D. guide or direct others.

21. Which of the following is a factor that might prevent travel agents from developing cultural sensitivity:A. Ethics C. Stereotypes B. Demographics D. Principles

22. A characteristic of authoritarian managers is that theyA. provide only general guidance. C. tend to share authority.B. ask employees for feedback. D. make all significant decisions.

23. Which of the following is a basic form of recognition that can be used often by a tour wholesaler:A. Having a banquet C. Awarding prizes B. Saying thank you D. Conducting a contest

24. Why is it important for tour operators to assess customers' special needs?A. To prevent unexpected illness C. To make the tour accessible B. To be prepared for accidents D. To schedule airline departures

25. Traci is going to apply for a loan at a local bank so that she can purchase business equipment for her travel agency. For which of the following credit accounts will Traci be applying:

A. Budget C. Installment B. Revolving D. Unsecured


26. Developing a personal budget is an effective way toA. pay bills. C. calculate assets. B. manage money. D. increase debt.

27. What type of security measures are often unique to cruise ships?A. Surveillance cameras C. Fireproof safes B. High-quality locks D. Sprinkler systems

28. A tour operator preparing to apply for an increased line of credit with a local bank probably would ask the accounting department to compile a

A. marketing-information report. C. truth-in-lending plan. B. profit-and-loss statement. D. capital-goods analysis.

29. What type of ratio is used to measure the ability of a travel agency to turn assets into cash?A. Liability C. Activity B. Profitability D. Liquidity

30. The tour wholesaler's revenue and expense figures from the previous year are used in developing a newA. operating budget. C. accounting system. B. marketing plan. D. loan application form.

31. Which of the following is an example of a convention center hotel balancing daily posting transactions:A. Preparing bank account deposit slips B. Calculating value of guests' advance payments C. Verifying guests' purchases of refreshments D. Maintaining records of taxable purchases

32. When booking airline tickets, hotel accommodations, and car rentals for clients, travel agents usually __________ before travel begins.

A. run credit-check reports C. identify possible refunds B. transfer payments to the suppliers D. determine the amount of profit

33. Airlines often verify the information provided on job applications and résumés by A. conducting background checks. C. interviewing former coworkers. B. questioning the applicants. D. hiring private investigators.

34. Calculate an airline's employee turnover rate if the average number of employees last year was 500, and the business hired 60 new employees to replace those that left during the year.

A. 15% C. 12% B. 10% D. 16%

35. Why do cruise lines maintain information about their employees' deductions for health coverage, pension plan, and stock options?

A. To keep track of income from interest C. To borrow funds to cover costs B. To calculate employees' financial status D. To verify employees' contributions

36. One of the ways in which managing diversity contributes to a cruise line's success is that the cruise line will be able to

A. reduce its productivity levels. C. create a homogeneous workforce. B. attract and to retain talented workers. D. make managers' jobs easier for them.

37. One of the reasons why travel agencies assess employee performance on a regular basis is to provide the employee with

A. health and safety training. C. outplacement services. B. information about new benefits. D. constructive ideas for improvement.


38. Which of the following is a type of external marketing information that helps tour wholesalers make decisions:

A. Purchasing records C. Customer databases B. Demographic trends D. Sales predictions

39. A marketing-information management system can help tour companies toA. practice good business ethics. C. motivate employees. B. discover employee potential. D. discover new markets.

40. So a travel agency can retrieve current customer and internal marketing information from a central location, it may use which of the following technological tools:

A. A database C. Opt-in e-mail B. Presentation software D. A CAD program

41. How might a travel or tourism business use the information in salespeople's lost-business reports that indicates that customers are dissatisfied with the business's credit policies and service?

A. To revise its marketing strategy C. To identify its target market B. To change its operating goals D. To update its promotional techniques

42. A travel agency manager wanting to forecast markets for his/her company for the coming year will take into account last year's travel volume and travel expenditures, as well as

A. places last year's clients visited.B. current social and economic factors.C. places friends say they want to visit.D. sites the manager will be visiting during the coming year.

43. A tourist destination that sends discount coupons to potential customers is using the __________ function of marketing.

A. selling C. promotion B. financing D. product/service management

44. What do travel agencies develop in order to set aside the funds needed to cover the cost of performing marketing activities?

A. Financial statement C. Marketing budget B. Accounting system D. Cash-flow report

45. In the travel and tourism industry, market segmentation is about dividing the market into __________ groups.

A. general C. specific B. identical D. diverse

46. Marketing planning for the overall business for a period of several years usually provides __________ for the airline.

A. departmental budgets C. policies and procedures B. long-term direction D. regional management

47. Which of the following is one of the main components of a tour wholesaler's marketing plan:A. Regulations C. Strategy B. Technology D. Competitors

48. One reason it is important for airlines to consider market potential when conducting a market analysis is because market potential indicates the

A. number of consumers in an area. C. total possible demand for a product. B. expected annual sales volume. D. competitors selling the same product.


49. As a result of reviewing competitors' promotional activities while conducting a competitive analysis, a tour business might decide to

A. implement similar activities. C. revise pricing strategies. B. eliminate all advertising. D. provide additional sales training.

50. What might a cruise line decide to do if the information in its sales forecast predicts a drop in demand for the cruise line's services?

A. Reduce prices by 4% C. Increase output B. Decrease advertising budget D. Recruit 50 new employees

51. To reach their goal, travel and tourism marketers plan the route they believe to beA. easy. C. straight.B. reasonable. D. efficient.

52. Analyzing whether the tour wholesaler is making an acceptable profit on the sale of its tour packages is one way to evaluate its

A. capital resources. C. marketing plan. B. inventory level. D. accounting department.

53. A current issue in the travel and tourism industry concerns developing facilities that areA. sensitive to the environment. C. located in populated areas.B. supported by government funding. D. appealing to all market segments.

54. Which of the following is an economic factor that travel and tourism businesses might identify as a result of conducting an environmental scan:

A. Population shift C. Unemployment rate B. Increased regulation D. Lifestyle adjustment

55. Which of the following is a procedure that a tour operator might use when handling emergency situations such as natural disasters:

A. Protect private property C. Assist with evacuation B. Provide medical advice D. Activate alarm system

56. When reordering supplies, travel agencies must compare the financial impact of storing the items against the

A. interest rates. C. fixed expenses. B. selling price. D. ordering costs.

57. A project manager persuading group members to reach an agreement about how to carry out a project is an example of

A. negotiation. C. organization. B. leadership. D. communication.

58. Cruise-line employees who are courteous, exhibit good human-relations skills, and communicate clearly may be able to reduce expenses in the __________ area of the business.

A. planning C. bookkeeping B. customer-service D. payroll

59. A small tour business has developed an expense-control plan specifying that payroll can be no more than 15% of sales. If sales are $60,000, how much can the business spend on payroll?

A. $9,000 C. $12,000 B. $6,000 D. $15,000


60. The most effective way to dust a travel agency that has 7-foot shelves, waist-high counters, and floor-level displays would be to dust

A. from the top shelf down toward the floor. B. after rearranging everything on the shelves.C. with a stiff, untreated cloth. D. from the floor up toward the top shelf.

61. Logical thinkers will probably choose the __________ method for problem solving.A. appreciative inquiry C. intuitive B. seven-step D. brainstorming

62. To allow your ideas to flow freely when trying to be creative, you should avoid beingA. curious. C. determined.B. independent. D. self-critical.

63. Kevin is interested in a career in the travel and tourism industry. He visited three local businesses to obtain industry information and make important contacts. What career search tool did Kevin use?

A. Informational interview C. Industry analysis B. Occupational review D. Employment interview

64. Which of the following professional organizations would a business in the travel and tourism industry be most likely to join:

A. National Tour Association B. International Trade AdministrationC. Information Technology Association of America D. International Aircraft Mechanics Organization

65. A major reason travel professionals might join industry organizations is toA. network with people who work in unrelated industries.B. find out where they should take a family vacation.C. keep up with industry issues, trends, statistics, and research.D. earn a bachelor's degree in travel and tourism.

66. Which of the following is a print source of additional information on travel destinations that travel agents often use to help a client plan a vacation:

A. Newspapers C. Testimonials B. Guidebooks D. Illustrations

67. In which of the following businesses is the business owner usually responsible for price setting:A. Princess Cruise Lines C. Hilton Hotels B. United Airlines D. Tim's Lakeside Bus Tour

68. What kind of competitive market is characterized by a great many buyers and sellers of nearly identical products and marketers who have little control over pricing?

A. Monopolistic competition C. OligopolyB. Pure competition D. Monopoly

69. When setting the price of a group tour, what does a tour operator calculate first?A. Applicable sales tax C. Cost per person B. Margin of profit D. Rate of inflation

70. Which of the following questions would be part of product/service management:A. Which training method works best for employees?B. What type of insurance should we purchase?C. Is the product packaged appropriately? D. How will we communicate a positive image to our clients?


71. One reason why the planned obsolescence of certain products often is considered an ethical issue is because of the products' short life that has an effect on the

A. natural resources that are needed to produce them. B. cost of designing and developing them. C. value of training employees to sell them. D. way that customers decide to use them.

72. During the idea-generating process, a tour wholesaler should first consider how the tour package would fulfill the __________ needs.

A. industry's C. customers' B. business's D. managers'

73. One way that a travel agency is often able to recognize product opportunities in the marketplace is by monitoring

A. personnel. C. finances. B. trends. D. plans.

74. What power does the Federal Trade Commission have over businesses that violate consumer-protection laws?

A. It can bring legal action against the businesses.B. It can recall or ban unsafe products.C. It can set safety standards for businesses to follow.D. It can require businesses to obtain the FTC's guidelines for complying with consumer-protection

laws.

75. Travel and tourism businesses can set up product lines according to which of the following methods:A. Distribution C. Contraction B. Alteration D. Expansion

76. Focusing on its products' superior attributes is a way that a travel agency positions the products __________ the market leader.

A. against C. with B. above D. beside

77. Which of the following is a characteristic of a good brand name:A. Distinctive C. IndividualB. Offensive D. Private

78. An airline's president or owner can be the brand champion byA. immediately replacing employees who don't conform to brand standards.B. replacing the mission statement every year or two.C. helping employees understand how to demonstrate the brand in their jobs.D. developing a catchy slogan.

79. Which of the following is a site variable that often has an effect on travel and tourism in certain locations:A. Hotel facilities C. Weather conditions B. Restaurant options D. Airport terminals

80. In order to be effective, an airline's promotional messages need to beA. hard to remember. C. used sparingly.B. rewritten frequently. D. repeated frequently.

81. Because bricks-and-mortar travel agencies sell expensive travel products, clients generally expect them to provide more __________ than other businesses.

A. personal selling C. product lines B. self-service items D. mass displays


82. Which of the following attracts a web-site visitor's attention by using animated graphics that float across the web page to promote an all-inclusive travel package:

A. Rich-media advertising C. Satellite technology B. Meta tags D. Click-through

83. Under which of the following circumstances is the response to electronic, direct mail likely to be the highest:

A. Recipients have given the advertiser permission to send the ad.B. The delivered ad is strictly informational in nature.C. The postal mail service delivers the ad on time.D. The advertiser sends out an unsolicited ad to thousands of recipients.

84. A disadvantage to travel businesses that use e-mail as a direct-mail strategy is that recipients may not get the message because many computers have

A. spam filters. C. reply options. B. invalid home addresses. D. promotion controls.

85. Attractive visuals and testimonials from satisfied travelers are some of the materials that travel agents often include in

A. sales packets. C. travel documents. B. confirmation letters. D. marketing reports.

86. Which of the following is the best example of the coordination of promotional activities:A. Using personal selling to earn a sales commissionB. Sending out samples of a new product that is on display C. Obtaining publicity for the firm's new product lineD. Advertising an upcoming sale a week ahead of time

87. In the travel and tourism industry, an employee who helps a customer or client decide what type of product to order is involved in the process of

A. planning. C. coaching. B. directing. D. selling.

88. Which of the following must an airline's sales personnel possess in order to build a loyal clientele:A. Appropriate personality traits C. Continued educational training B. Professional awards and achievements D. Extensive technical experience

89. Which of the following is an example of how many travel agents use technology to increase communication and follow-up with clients:

A. E-mailing reminders C. Preparing sales lettersB. Holding videoconferences D. Offering training sessions

90. What have many airlines developed in order to offer more services and to make it easier for passengers to arrange travel to distant locations?

A. Electronic tickets C. Strategic alliances B. Frequent-flyer programs D. First-class lounges

91. Cruise lines sailing to Bermuda or through the St. Lawrence River often depart from which U.S. port?A. New York C. New Orleans B. Miami D. Tampa

92. What could a travel agent use to sell the features and benefits of a Caribbean cruise?A. Vendor specifications C. Client testimonials B. Personnel evaluations D. Management objectives


93. Nodding and smiling are ways of showing interest in travel agency customers known asA. nonverbal statements. C. verbal statements.B. appropriate questions. D. assumptive questions.

94. To make reservations for a client's train travel in the United States, a travel agent must know how toA. fill out an airline computer reservation system report.B. book advance seats on the Express, Rapidos, or TGV.C. distinguish between corridor and short distance trains.D. reserve seats on "bullet trains" in both Class A and Class B.

95. An advantage to a cruise line of promoting a cruise to a travel agent by inviting the agent on a cruise is that the travel agent

A. enjoys a free vacation. C. obtains firsthand experience.B. becomes obligated to the cruise line. D. must attend a training seminar.

96. What do travel agents often suggest that clients purchase in order to protect the clients in the event that they are unable to go on the cruise for which they have paid?

A. Cancellation insurance C. Disability benefitsB. Personal injury compensation D. Trip interruption coverage

97. Which of the following is an example of an endorsement/restriction that a travel agent might list when processing a client's airline ticket:

A. Unconfirmed C. No baggageB. Unaccompanied minor D. Nonrefundable

98. Why do tour operators often issue travel vouchers to clients who are participating in tour packages?A. To guarantee hotel reservations C. To obtain discounts on souvenirs B. To use as identification tags D. To pay for certain expenses

99. Which of the following types of sightseeing tours involves leading clients through historic buildings:A. Nature tours C. City toursB. Personal tours D. Walking tours

100. Why is it important for managers to develop standards to measure the productivity of specific business activities in the travel and tourism industry?

A. To decide what work needs to be done B. To maintain appropriate control C. To gather information for planning D. To direct the operation of the business


1. ATo regulate and control transportation. Governments usually have responsibility for regulating and controlling transportation carriers within their countries. In many countries, the airlines and railroads are either owned by the government or subsidized by the government. In other countries, the government develops regulations for airlines and railroads, sets standards, issues operating licenses, and monitors safety. The intent is to make sure the transportation systems are safe. Governments usually do not develop regional destinations, hire and train tour operators, or interpret emergency procedures. SOURCE: BL:060SOURCE: Goeldner, C.R., & Ritchie, J.R. (2003). Tourism: Principles, practices, philosophies (9th ed.)

[p. 107]. New York: John Wiley & Sons.

2. BThe owners' personal property cannot be taken to pay the business's debts. An LLC (limited liability company) form of business ownership is growing in popularity because of some of the ways it benefits its owners. One of these is that the owners' personal property cannot be taken by creditors to satisfy the debts of the LLC. Other characteristics of the LLC include its limited life and taxation of the owners' income rather than the LLC's income. LLCs may need to have at least one or two members but does not necessarily set a minimum of three members.SOURCE: BL:003SOURCE: BA LAP 7—Own It Your Way

3. DDisposing of hazardous waste. The federal government created the Environmental Protection Agency (EPA) in an effort to control and reduce pollution. The EPA enforces various laws and rules, some of which involve the way that travel and tourism businesses dispose of hazardous materials such as medical and nuclear waste. Travel and Tourism Businesses are required to follow EPA regulations and often are costly to carry out. If travel and tourism businesses fail to dispose of hazardous waste properly, they may be forced to pay expensive fines. Counseling substance abusers, adapting to worker safety, and identifying natural resources are not business activities covered by environmental regulations.SOURCE: BL:073SOURCE: Everard, K.E., & Burrow, J.L. (2001). Business principles and management (11th ed.)

[pp. 42-43]. Cincinnati: South-Western.

4. DChain store. A distribution center is a facility that holds goods in storage and fills orders for those goods. Chain stores, such as Sears, often have their own distribution centers. A museum restaurant, specialty shop, and a local travel agency would not be likely to need or be able to afford the expense of their own distribution center.SOURCE: CM:001SOURCE: DS LAP 1—Distribution

5. DSetting appropriate prices. Travel and tourism businesses not only need to make their products(e.g., cruise) available, but they also must sell them at a price that customers are willing to pay. If a product is not priced appropriately, customers may not buy the travel and tourism product. Therefore, it is important for travel and tourism businesses to coordinate the marketing activity of pricing with distribution. Travel and tourism businesses must set appropriate prices that customers are willing to pay and have the products available when customers want them in order to successfully sell to customers. Coordinating distribution with marketing does not involve achieving publicity goals, earning high profits, or developing pricing rules.SOURCE: CM:007SOURCE: Evans, J.R., & Berman, B. (1997). Marketing (7th ed.) [pp. 654-655]. Upper Saddle River,

NJ: Prentice Hall.

Copyright © 2008 by Marketing Education Resource Center®, Columbus, Ohio

Test 939 TRAVEL AND TOURISM MARKETING — KEY 11

6. DCreate channel conflict. If not handled properly, the use of multiple distribution channels may cause channel conflicts, especially if channel members resent the competition and ultimate profit is in jeopardy. Companies successfully use multiple channels when trying to reach different target markets or when marketing unrelated products. Multiple distribution channels are also used to diversify distribution methods and avoid dependency on any particular channel.SOURCE: CM:009SOURCE: Etzel, M.J., Walker, B.J., & Stanton, W.J. (2001). Marketing (12th ed.) [pp. 400-409]. Irwin.

7. AServices provided. A producer should carefully examine the services that the intermediary provides. If the services are worth their cost, then the travel or tourism intermediary should be included in the channel. The number of potential customers and the location of the product's market relate to market considerations. The size of the product is a product consideration.SOURCE: CM:010SOURCE: Solomon, M.R., & Stuart, E.W. (2000). Marketing: Real people, real choices (2nd ed.)

[p. 396]. Upper Saddle River, NJ: Prentice Hall.

8. CTo make the message more convincing. Messages usually are more persuasive if they are supported by logical evidence. Logical evidence is based on fact rather than on opinion. If tour wholesalers are writing persuasive messages to encourage customers to do something, such as buy a tour product, they should include logical evidence to make the message more convincing. Logical evidence is factual; however, it may not be interesting. Strong language may offend the recipient rather than help to explain the idea. Logical evidence is intended to be persuasive. It does not force the recipient to respond.SOURCE: CO:031SOURCE: Hyden, J.S., Jordan, A.K., Steinauer, M.H., & Jones, M.J. (1999). Communicating for

success (2nd ed.) [pp. 335-336]. Cincinnati: South-Western Educational.

9. BFeatures and benefits. When they are planning on making large or expensive purchases, some clients ask the travel agency to submit written sales proposals or quotations. Because the goal of the proposal is to make a sale, a well-written proposal will tell the client the benefits of using the travel agency. The sales proposal should also point out the specific features of the travel and tourism products which may be different from of a competitor's products. The proposal might include shipping information, but receiving is controlled by the client. The proposal usually includes pricing information but not accounting information. Laws and regulations are not always part of a sales proposal unless the travel package requires that client to obtain something that is regulated by the government, such as passports for international travel.SOURCE: CO:062SOURCE: Locker, K.O. (2000). Business and administrative communication (5th ed.) [pp. 368-376].

Boston: Irwin/McGraw-Hill.

10. BObtain two duplicate photos in the specified size. When applying for a first passport, a traveler must provide two duplicate photos in the specified size. The photos must be current, taken within six months of applying. Depending on the country, passport applications typically take 10 weeks to process although there are allowances for extreme emergencies (e.g., death and illness). Passports are issued and processed by government agencies; in the United States, you can get an application from the travel agency. It must be processed through the passport office. A birth certificate can be used for proof of citizenship; however, a driver's license may not be used as proof of citizenship.SOURCE: CO:070SOURCE: Todd, G., & Rice, S. (2002). Travel perspectives: A guide to becoming a travel professional

(3rd ed.) [pp. 285-287]. Albany, NY: Delmar/Thomson Learning.


11. DCreate positive customer/client relations. Policies that establish appropriate attitudes toward customers/clients help to ensure that employees will treat customers in a way that will create positive relations. Such policies do not prevent all conflict with customers/clients because they do not guarantee that the travel or tourism business can always do what the customer wants. These policies are not established for the purpose of making employees' jobs easier. Customer objections are reasons customers have for not buying, and they are handled with selling techniques that may involve disagreeing politely with the customer.SOURCE: CR:003SOURCE: Rokes, B. (2000). Customer service: Business 2000 (pp. 8, 88-89). Mason, OH: South-

Western.

12. BTo sell successfully. Travel agents are expected to possess adequate knowledge of travel products, policies, and capabilities in order to handle clients' inquiries. The main reason why it is important for travel agents to possess this information is to be able to sell successfully. Clients often have questions about travel and tour products that travel agents need to answer in order to make the sale. Travel agents who are knowledgeable and well informed usually can sell successfully because they are able to handle customers' inquiries. Developing promotions, organizing supplies, and planning effectively are not always the responsibilities of travel agents. SOURCE: CR:006SOURCE: Greene, C. (2000). Selling: Business 2000 (p. 10). Mason, OH: South-Western.

13. BLet the customer explain the problem. Until it is determined otherwise, one should assume that the complaint is legitimate. After the customer's explanation, ask whatever questions may be necessary to obtain facts needed in solving the problem. Asking the customer to be brief may anger the customer. The manager should not be called unless you cannot handle the situation to the customer's satisfaction.SOURCE: CR:010SOURCE: HR LAP 23—Handling Customer Complaints

14. CTangible. Economic goods are physical (tangible) products that are useful, scarce, and transferable and satisfy economic wants. Economic services are productive acts that satisfy economic wants. Both economic goods and services are wanted, have value, and are scarce.SOURCE: EC:002SOURCE: EC LAP 10—Goods and Services

15. AKeeps accurate expense records. Financial analysis involves obtaining funds for the tour company and keeping accurate records for analysis and interpretation. Marketing involves communicating with potential customers. Strategic management involves planning for long-term success. And, information management involves effectively retrieving data.SOURCE: EC:071SOURCE: EC LAP 19—Strictly Business (Business Activities)

16. AInsurance. Pure risks are risks that carry with them the possibility of loss or no loss, and they are insurable. Insurance is not available to protect against speculative risks. Security systems and safety devices warn of possible risks but do not reimburse travel and tourism businesses for losses. Warranties are contractual agreements between a buyer and a seller in which the seller promises to repair or replace faulty products.SOURCE: EC:011SOURCE: EC LAP 3—Lose, Win, or Draw (Business Risk)


17. CActions of competitors. An oligopoly is a market structure in which there are relatively few sellers, and industry leaders usually determine prices. As a result, travel and tourism businesses that operate in this type of a market are greatly influenced by the actions of their competitors. For example, if one major business lowers prices, the other businesses may be forced to follow suit or risk losing business. Travel and tourism businesses operating in an oligopoly are not greatly influenced by the availability of resources, controls of government, or lack of technology. SOURCE: EC:075SOURCE: Sexton, R.L. (2002). Exploring economics (2nd ed.) [pp. 204-205]. Mason, OH: South-

Western.

18. BGross domestic product. The gross domestic product is the final market value of the total output of all goods and services produced within a country's geographic boundaries during a year's time. When people are unemployed, they do not work to produce the goods and services that are part of the gross domestic product; therefore, there are fewer goods and services available for people to purchase. As a result, the overall economy is affected by unemployment because the unemployed are unable to contribute to the gross domestic product. The federal deficit is the amount of money that the government owes. The balance of payments is the difference between all monies coming into a country and going out of a country. The standard of living is the general condition in which people live.SOURCE: EC:082SOURCE: Lowe, R.E., Malouf, C.A., & Jacobson, A.R. (2003). Consumer education & economics

(5th ed.) [pp. 160-161]. New York: Glencoe/McGraw-Hill.

19. DAbsolute. The uneven distribution of productive resources enables one country to be able to produce a good or service more cheaply than another country can. For example, efficient factories and skilled labor may enable the United States to produce office machines more cheaply than they can be produced in Malaysia. A comparative advantage is the benefit that a country obtains from specializing in and producing goods and services at which it is relatively most efficient. Advantages usually are not predictable. Constructive advantage is not a widely used term to describe concepts related to international trade.SOURCE: EC:016SOURCE: EC LAP 4—BeyondUS (International Trade)

20. DGuide or direct others. A person who wants to lead change in the workplace must have the ability to guide or direct others with the intention to transform or alter something. Getting people to change involves guiding or directing them to do something in a different way. People usually will not follow the lead of another person if that person cannot provide guidance or direction. A person who wants to lead change often needs to answer a variety of questions to explain the need for change. A person who wants to lead change does not need to make friends with managers or perform all types of tasks.SOURCE: EI:005SOURCE: QS LAP 23—20/20 Foresight

21. CStereotypes. A stereotype is a set image or an assumption about a person or thing. Stereotypes often influence the way people think about other people, and might prevent travel agents from developing cultural sensitivity. To be culturally sensitive, travel agents need to be aware that people in other parts of the world live and think very differently than they do. Travel agents need to be open-minded rather than assume that all people in one culture behave in a certain manner. Demographics are the physical and social characteristics of the population. Ethics are the basic principles that govern your behavior. Travel agents who have principles and are ethical often are able to develop cultural sensitivity because they try to avoid stereotyping others.SOURCE: EI:033SOURCE: Lehman, C.M., & DuFrene, D.D. (1999). Business communication (12th ed.) [p. 23].

Cincinnati: South-Western College.


22. DMake all significant decisions. A characteristic of authoritarian managers is that they make all significant decisions. They enjoy being in command and exercising tight control over employees. They also rely heavily upon their own judgment and prefer to make all significant decisions themselves without obtaining feedback from others. They are unwilling to share authority, and they provide very specific guidance to workers.SOURCE: EI:037SOURCE: EI LAP 5—Can You Relate? (Positive Working Relationships)

23. BSaying thank you. Saying thank you is a basic form of recognition that can be used often. However, it is important to say it directly to the person or to write the person a note or send the person an e-mail. A thank you is very meaningful to the receiver, who often shares the note or e-mail with others. Having a banquet or awarding prizes are other forms of recognition that are not used often because they are expensive. However, a business might have an annual recognition banquet or award prizes on special occasions. Conducting a contest is not a form of recognition.SOURCE: EI:014SOURCE: QS LAP 13—Gimme Five!

24. CTo make the tour accessible. Customers with special needs, such as physical disabilities, often take tours. To make the tour accessible to these customers, it is important for tour operators to assess customers' special needs. In some cases, tour operators may need to select another hotel that has handicapped-accessible rooms or elevators to accommodate customers in wheelchairs. Tour operators may need to inspect dining facilities to make sure they are accessible to all customers. The goal is to make the tour accessible, comfortable, and enjoyable to customers who have special needs. Assessing customers' special needs will not enable tour operators to be prepared for accidents or prevent unexpected illness. Tour operators do not schedule airline departures.SOURCE: EI:050SOURCE: Vallen, G.K., & Vallen, J.J. (2005). Check-in: Check-out (7th ed.) [pp. 272-275]. Upper

Saddle River, NJ: Prentice Hall.

25. CInstallment. An installment credit account is a type of credit account set up to handle one total amount of credit which is to be paid off in regular installments. Installment credit is commonly used to purchase large, expensive items such as cars, furniture, expensive equipment, etc. Revolving credit is a type of credit account which limits the total amount of money that may be owed and charges interest on outstanding balances. Budget credit is a form of short-term credit often set up for 60- or 90-day time periods with payments usually due every 30 days. An unsecured loan is an amount of money borrowed by an individual or business simply by signing a promissory note promising to repay the loan.SOURCE: FI:002SOURCE: FI LAP 2—Credit and Its Importance

26. BManage money. A budget is an estimate of what income and expenses will be for a specific time period. By developing a budget, individuals can manage their money. The budget will enable them to estimate income, perhaps for the next month, and also estimate the various expenses such as car payment, clothing, entertainment, etc. Then, they will be able to compare income with expenses and plan how to spend their money. Preparing a budget will make it possible to determine if they are barely able to pay bills each month or if there are funds remaining to put in a savings account. If funds are tight, they can analyze the various expenses and find ways to cut back in order to more effectively manage their money. Developing a budget allows individuals to identify the bills that must be paid; however, a budget does not pay bills. A budget does not include a list of assets. Budgeting often helps individuals to decrease debt by managing money more effectively.SOURCE: FI:066SOURCE: Kapoor, J.R., Dlabay, L.R., Hughes, R.J., & Hoyt, W.B. (2005). Business and personal

finance (pp. 75-81). New York: Glencoe/McGraw-Hill.


27. ASurveillance cameras. The type of security measures needed largely depends on the nature of the business. Sprinkler systems, high-quality locks, and fireproof safes are good security measures for most businesses. However, a cruise ship might want additional measures such as surveillance cameras for passenger-safety reasons.SOURCE: FI:084SOURCE: BA LAP 2—Risk Management

28. BProfit-and-loss statement. A profit-and-loss statement is an income statement that summarizes a business's revenue and expenses over a period of time. A tour operator preparing to apply for an increased line of credit probably would ask the accounting department to compile a profit-and-loss statement in order to provide current financial information to the bank. The information in a profit-and-loss statement reflects the business's financial condition and indicates if it is making sufficient profit to repay an increased line of credit, which is a type of loan. A marketing-information report contains marketing-related data from inside and outside the business. A capital-goods analysis lists all the equipment, resources, facilities, etc., owned by the tour operator. Truth-in-lending is a federal law that requires all finance charges to be disclosed on consumer credit agreements.SOURCE: FI:085SOURCE: FI LAP 5—Show Me the Money (Nature of Accounting)

29. DLiquidity. Liquidity refers to the time that a business (e.g., travel agency) takes to turn assets (e.g., equipment, property) into cash so it can pay the company's debts. Liability is defined as debt that an individual or a business owes. Profitability is the level of profit (monetary reward) of a business or a product. Activity refers to a task that is performed to generate a specific outcome.SOURCE: FI:097SOURCE: Cunningham, B.M., Nikolai, L.A., & Bazley, J.D. (2000). Accounting: Information for business

decisions (p. 209). Orlando, FL: Harcourt.

30. AOperating budget. The previous year's financial information is used to project revenue from sales and the cost of doing business for the next year. The operating budget estimates income and expenses for a specific period of time, usually one year. A marketing plan is a set of procedures or strategies for attracting the target customer to a business (e.g., tour wholesaler). The accounting system is a method of recording and summarizing a company's income and expenses. A loan application form asks for specific financial information about a company in order for the company to borrow money from a lending institution. Lending institutions develop loan application forms rather than business applicants.SOURCE: FI:098SOURCE: Kuratko, D.F., & Hodgetts, R.M. (2001). Entrepreneurship: A contemporary approach

(5th ed.) [pp. 257-261]. Mason, OH: South-Western.

31. CVerifying guests' purchases of refreshments. Convention center hotel guests often purchase items, such as refreshments, that are not included in the overall price of the room or the travel package. When guests make these purchases, the hotel adds them to the individual guest's account by posting the charges to the guest's bill. A convention hotel auditor reviews the postings on a daily basis to make sure that all transactions are placed on the correct account and that all transactions are correctly accounted for and balanced. Calculating value of guests' advance payments, preparing bank account deposit slips, and maintaining records of taxable purchases are not examples of a convention center hotel balancing daily posting transactions.SOURCE: FI:297SOURCE: Vallen, G.K., & Vallen, J.J. (2000). Check-in: Check-out (6th ed.) [pp. 446-447]. Upper

Saddle River, NJ: Prentice Hall.


32. BTransfer payments to the suppliers. Travel agents book airline tickets, hotel accommodations, and car rentals for clients on a routine basis. However, they usually pay for these services before the clients travel. In most cases, the clients pay the travel agents and the travel agents transfer payments to the suppliers. In some cases, the travel agents might transfer a deposit for hotel accommodations or car rentals, and the clients pay the balance. However, payment for airline tickets is always transferred prior to travel. Travel agents usually do not run credit checks because they receive payment from clients in advance and know the funds are available before transferring funds to suppliers. When booking airline tickets, hotel accommodations, and car rentals for clients, travel agents do not identify possible refunds or determine the amount of profit before travel begins.SOURCE: FI:319SOURCE: Semer-Purzycki, J. (2001). A practical guide to fares and ticketing (3rd ed.) [pp. 158-160].

Albany, NY: Delmar.

33. AConducting background checks. Before selecting candidates to interview, airlines screen job applications and résumés to identify those who have the appropriate backgrounds. After identifying the best candidates, airlines often conduct background checks to verify the information that was provided. This might include calling the references and former employers who were listed on the applications/résumés. The purpose is to make sure that the information is accurate and that applicants are not misrepresenting themselves. Airlines cannot verify the information by questioning the applicants who provided the information. It would be difficult for airlines to identify and interview former coworkers unless these individuals were listed as references. Airlines do not hire private investigators to verify job application information. SOURCE: HR:354SOURCE: Lussier, R.N. (2003). Management fundamentals: Concepts, applications, skill development

(2nd ed.) [p. 241]. Mason, OH: South-Western.

34. C12%. Employee turnover is the rate at which people enter and leave employment in a particular business, such as an airline, during the year. The rate is a very important number to the airline. The higher the rate, the more often the airline needs to train new employees. The formula to calculate employee turnover rate is number of new hires divided by the average number of employees (60 ÷ 500 = 12%).SOURCE: HR:358SOURCE: Everard, K.E., & Burrow, J.L. (2001). Business principles and management (11th ed.)

[p. 639]. Cincinnati: South-Western.

35. DTo verify employees' contributions. Cruise lines are required to maintain a variety of personnel records, some of which deal with the compensation paid to employees. Most employees have funds deducted from their salaries to cover their share of the cost of health coverage and pension plans or to participate in a company stock program. These deductions have an effect on the amount of income tax that the employees are required to pay. Cruise lines keep records of these deductions to verify the amount the employees contributed and to explain the deductions if necessary. Cruise lines do not maintain this type of information to calculate employees' financial status, to borrow funds to cover costs, or to keep track of income from interest.SOURCE: HR:359SOURCE: Dessler, G. (2000). Human resource management (8th ed.) [pp. 130-131]. Upper Saddle

River, NJ: Prentice Hall.


36. BAttract and to retain talented workers. A cruise line with a reputation for treating its employees fairly is much more likely to get and to keep good workers. This benefit of managing diversity will be especially important if predictions for the continued shrinking of the labor pool of educated/skilled workers are accurate. Cruise lines that manage diversity well have a diverse workforce rather than a homogeneous workforce. Managing a diverse workforce is more difficult and takes more of managers' time than managing a homogeneous workforce. A cruise line would not want to reduce its levels of productivity.SOURCE: HR:367SOURCE: MN LAP 55—Managing Diversity in the Workplace

37. DConstructive ideas for improvement. Performance assessments are designed to recognize employees' good performance, as well as to identify areas needing improvement. If employees are not performing according to established standards, travel agencies should provide them with ways to improve. This might include arranging for additional training, or having experienced employees work with new employees. The goal is to help employees improve. Travel agencies do not assess employee performance to provide information about new benefits, or to provide health and safety training. However, that type of training might be necessary as a result of the performance assessment. Outplacement services often are provided to employees who are being laid off or terminated. SOURCE: HR:368SOURCE: Mathis, R.L., & Jackson, J.H. (2003). Human resource management (10th ed.) [pp. 342-343].

Cincinnati: Thomson/South-Western.

38. BDemographic trends. Demographic trends indicate changes in the physical and social characteristics of the population. Gathering information about demographic trends helps tour wholesalers to make decisions about what travel packages to sell in the future to meet the changing needs of the population. An example of a demographic trend is the aging of the "Baby Boomer" generation that is reaching retirement age. This is a large segment of the population that has different wants and needs than younger people. To remain competitive, tour wholesalers need to understand these different wants and needs. Purchasing records, customer databases, and sales predictions are types of internal marketing information that help tour wholesalers make decisions.SOURCE: IM:012SOURCE: Clark, B., Sobel, J., & Basteri, C.G. (2006). Marketing dynamics (pp. 242-244). Tinley Park,

IL: Goodheart-Willcox.

39. DDiscover new markets. A marketing-information management system is designed to provide accurate and timely information that may help to expand or discover new markets when analyzed. Employee motivation, employee potential, and business ethics are concerns of management rather than marketing.SOURCE: IM:001SOURCE: IM LAP 2—Marketing-Information Management

40. AA database. A database is a collection of information that a travel agency can retrieve quickly. Many travel agencies use databases to store information about their customers, such as contact information and buying preferences. Presentation software is a computer application that displays a slide show. Opt-in e-mail messages are electronic promotional messages that are sent with a recipient's permission and allow the recipients to request removal from the subscriber list at any time. A CAD program is a computer software program that allows users to create multi-dimensional graphics.SOURCE: IM:183SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 594-595).

New York: Glencoe/McGraw-Hill.


41. ATo revise its marketing strategy. Travel and tourism businesses monitor lost-business reports because they usually contain an explanation of why customers no longer buy from the business. The reports might indicate that customers are dissatisfied with the product, dissatisfied with the business's credit policies, or are getting better prices and more service from competitors. A travel or tourism business might use this information to make changes to its marketing strategy in an attempt to regain customers or to prevent other customers from taking their business elsewhere. The more information a travel or tourism business obtains from lost-business reports, the better able it is to make useful and effective marketing decisions. Businesses in the travel and tourism industry do not use the information in lost-business reports to change their operating goals, identify their target markets, or update their promotional techniques.SOURCE: IM:184SOURCE: Kotler, P. (2000). Marketing management (10th ed.) [pp. 47, 633-634]. Upper Saddle River,

NJ: Prentice Hall.

42. BCurrent social and economic factors. An example of the marked impact social and economic factors have on the travel industry were seen in the months following the events of September 11, 2001. Other options have little, if any, effect on the market forecast. Friends may say they want to visit many places, but until they actually do, these wishes have no impact on the travel industry. Specific destinations may affect future marketing activities, but will have little effect on the market forecast as many destinations may require the same expenditures. Sites the manager will be visiting are not necessarily the ones the agency's clients will be visiting and, so, will not affect the forecast.SOURCE: IM:227SOURCE: Travel Industry Association of America. (n.d.). Travel statistics and trends. Retrieved August

8, 2007, from http://www.tia.org/Travel/forecasts.asp

43. CPromotion. The purpose of the promotion function of marketing is to communicate information about goods, services, images, and/or ideas to achieve a desired outcome. Some of the ways to communicate with customers include advertising, publicity, and sales promotion. Sending discount coupons to potential customers is a promotional form of communication intended to encourage customers to visit a tourist destination. Financing is the business function which determines the need for and availability of financial resources to aid in marketing activities. Selling is the marketing function which involves determining client needs and wants and responding through planned, personalized communication that influences purchase decisions and enhances future business opportunities. Product/Service management involves obtaining, developing, maintaining, and improving a product or service mix in response to market opportunities.SOURCE: MK:002SOURCE: MK LAP 1—Work the Big Six (Marketing Functions)

44. CMarketing budget. The purpose of developing a marketing budget is to set aside the funds necessary to cover the cost of performing marketing activities. First, travel agencies need to estimate all costs including such categories as wages, supplies, postage, travel, office equipment, telephone, etc. Once travel agencies have compiled all the cost information, they can prepare budgets for each major marketing activity or for the marketing department as a whole to make sure funds are available to pay expenses. An accounting system is the methods and procedures used in handling the travel agency's financial information. Financial statements are summaries of accounting information. A cash-flow report is a summary of how much money is coming into, and going out of, a travel agency.SOURCE: MP:017SOURCE: Burrow, J.L. (2002). Marketing (p. 542). Mason, OH: South-Western.

45. CSpecific. Market segmentation is about dividing the marketing into specific groups. Though the customers in the specific groups will have similarities, they will not be identical. There may even be a measure of diversity within the groups. But the goal of market segmentation in the travel and tourism industry is to narrow the general market to its specific travel and tourism subgroups.SOURCE: MP:003SOURCE: IM LAP 9—Have We Met? (Market Identification)


46. BLong-term direction. Marketing planning can involve both long-term and short-term guidance for an airline. Long-term direction usually involves planning for the overall business for a period of several years. This type of planning is carried out by top management and affects the operation of the entire organization. Marketing planning for short-term direction might involve one department of an airline for several months. Short-term planning is concerned with issues such as departmental budgets, policies and procedures that may change over time, and regional management.SOURCE: MP:006SOURCE: Boone, L.E., & Kurtz, D.L. (2004). Contemporary marketing (11th ed.) [pp. 39-40]. Mason,

OH: Thomson/South-Western.

47. CStrategy. One of the main components of a marketing plan involves developing the strategy to achieve the plan's goals. A tour wholesaler's marketing plan not only identifies specific objectives to achieve but also develops the various strategies that will be used to accomplish those objectives. Some of the most important strategies include selecting the target markets and deciding on the specific activities that will be used to attract those customers. Technology, regulations, and competitors are not components of the marketing plan; however, a tour wholesaler should consider the latest technology, any pertinent regulations, and the activities of competitors when developing a marketing plan.SOURCE: MP:007SOURCE: Churchill, G.A., Jr., & Peter, J.P. (1998). Marketing: Creating value for customers (2nd ed.)

[pp. 558-563]. Boston: Irwin/McGraw-Hill.

48. CTotal possible demand for a product. There are several factors that airlines consider when conducting a market analysis. One factor is market potential, which is the total possible demand for a product (e.g., air travel) during a certain period of time. Market potential indicates the best-case scenario for sales of a certain product throughout the market. For example, if 100 consumers want to travel to a certain location, the total demand for air service is 100. If several airlines offer service to the location, they will share the market and no one airline will sell to all 100 consumers. Airlines need to determine the market potential because they need to decide if the demand is large enough to generate a profit for all the airlines that offer similar transportation services. Market potential does not indicate the expected annual sales volume, the number of consumers in an area, or the competitors selling the same product.SOURCE: MP:009SOURCE: Zikmund, W., & d'Amico, M. (2001). Marketing: Creating and keeping customers in an

e-commerce world (7th ed.) [p. 144]. Mason, OH: South-Western.

49. AImplement similar activities. When tour businesses conduct a competitive analysis, they consider their competitors' promotional activities because promotional activities have an impact on a tour business's success in attracting customers and selling products. As a result of analyzing competitors' promotional activities, a tour business might decide to use similar activities because they have proven to be effective. A tour business would not decide to eliminate all advertising. Promotional activities do not include pricing strategies or sales training. Other aspects of a competitive analysis might indicate that a tour business should revise its pricing strategies or provide additional sales training.SOURCE: MP:012SOURCE: Boone, L.E., & Kurtz, D.L. (2004). Contemporary marketing (11th ed.) [pp. 64-68]. Mason,

OH: Thomson/South-Western.

50. AReduce prices by 4%. Cruise lines use the information in sales forecasts to make decisions that will contribute to their success. One of these decisions involves price. If a sales forecast predicts a drop in demand for the cruise line's services, the cruise line may decide to reduce prices in order to generate more sales. If a sales forecast predicts a drop in demand, a cruise line would not increase output (production) or recruit new employees. Many cruise lines increase advertising when demand begins to drop in order to attract new passengers.SOURCE: MP:013SOURCE: IM LAP 3—Nature of Sales Forecasts


51. DEfficient. To reach their goal, travel and tourism marketers plan the route they believe to be efficient. A reasonable route is a road that may take the travel or tourism marketer to his/her goal, but it may not be the best option. An easy route may not require much effort, but it may not return a successful outcome, either. An easy route may take the travel or tourism marketer way off course. A straight route may seem direct, but it may not speed the travel or tourism marketer's way. And, selecting a reasonable or satisfactory route implies the navigator applied a halfhearted effort.SOURCE: MP:001SOURCE: IM LAP 7—Pick the Mix

52. CMarketing plan. A marketing plan is a set of procedures or strategies for attracting the target customer to a business. One way to determine if a marketing plan is effective is to analyze whether the tour wholesaler is making an acceptable profit on the sale of its tour packages. In some cases, tour wholesalers invest a lot of time and money in marketing tour packages but realize very little profit. If a tour wholesaler decides that the profit level is low, it might reduce its marketing activities or identify other types of marketing activities that are less costly to implement. The accounting department is a special department responsible for the tour wholesaler's accounting records. Capital resources are the money, machinery, equipment, and supplies used in production. Inventory level is the amount of goods on hand.SOURCE: MP:019SOURCE: Kotler, P. (2000). Marketing management (10th ed.) [pp. 701-702]. Upper Saddle River, NJ:

Prentice Hall.

53. ASensitive to the environment. Concerns about conserving and preserving the environment are important issues in the travel and tourism industry. There is more awareness about the harm that uncontrolled development can have on the physical environment and more pressure on developers to be responsible. As a result, the new facilities being developed take the environment into consideration and make adjustments to preserve native plants and animals. A trend in travel and tourism is towards more market segmentation rather than trying to appeal to all markets. In most cases, government does not fund private development. Many facilities are being developed in unpopulated areas, which increases the possibility of disturbing the natural environment.SOURCE: NF:049SOURCE: Goeldner, C.R., Ritchie, J.R., & McIntosh, R. (2000). Tourism: Principles, practices,

philosophies (8th ed.) [pp. 575-577]. New York: John Wiley & Sons.

54. CUnemployment rate. An environmental scan is an analysis of external forces that influences a travel or tourism business's success. The fluctuation of unemployment rates is an economic factor because unemployment has an effect on consumers' ability to buy goods and services. If consumers are unemployed, they do not have income to spend. As a result, travel and tourism businesses do not sell as much because consumers are not buying. When this situation occurs, travel and tourism businesses often reduce expenses in an attempt to stay in business until the rate of employment starts to rise again. Increased regulation is a political factor. Population shift is a demographic factor. Lifestyle adjustment is a cultural factor.SOURCE: NF:015SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 30-32, 84-86).

New York: Glencoe/McGraw-Hill.

55. CAssist with evacuation. On occasion, tour operators and their tour groups might be involved in emergency situations such as natural disasters. If this happens, tour operators should be prepared to assist local authorities with the evacuation of the group. Tour operators need to know where all group members are in order to quickly and safely evacuate them from dangerous situations such as hurricanes. Tour operators are not expected to provide medical advice, protect private property, or activate alarm systems.SOURCE: OP:120SOURCE: Educational Institute of the American Hotel & Motel Association. (1999). Lodging

management program: Year one (pp. 94-95). Lansing, MI: Author.


56. DOrdering costs. Ordering costs are the expenses that businesses (e.g., travel agencies) incur to buy supplies. The price they pay for the items, shipping charges, taxes, personnel salaries, and some operational expenses (e.g., telephone charges) might be considered when determining the ordering costs. Ordering costs are often compared to the cost of storing the product for a certain period of time. When storage costs are less than ordering costs, travel agencies generally reorder more items (e.g., office supplies) on a less frequent basis. The selling price is the price that the end user pays for an item. Travel agencies do not sell their supplies to their clients. Fixed expense refers to the payables that remain the same for a set period of time. Insurance and rent are examples of a business's fixed expenses. Interest is defined as the money payments for the use of borrowed money. The interest rate is the percentage figure used in calculating interest charges for a loan.SOURCE: OP:016SOURCE: Berman, B., & Evans, J.R. (1998). Retail management: A strategic approach (7th ed.)

[pp. 464-466]. Upper Saddle River, NJ: Prentice Hall.

57. ANegotiation. Negotiation is the process of one person reaching an agreement with another person to meet specific wants or needs. Negotiation is an important skill because project managers must be able to influence others to take a certain course of action in order to achieve a desired outcome. Leadership is the ability to guide others in a desired manner. Organization is bringing all components together to achieve the project goals. Communication is the ability to express yourself clearly and simply.SOURCE: OP:002SOURCE: QS LAP 18—Make It Happen (Project Management)

58. BCustomer-service. Being able to use good human relations skills and to communicate properly with passengers who have inquiries and/or complaints could help to save money in the customer-service area by reducing errors in handling transactions. Good human-relations skills would have little effect on expenses in the payroll or bookkeeping areas because the work done in these areas is not dependent upon these skills and may require minimal contact with customers. Planning is a management function.SOURCE: OP:025SOURCE: MN LAP 56—Employee Role in Expense Control

59. A$9,000. To determine how much the tour business can spend on payroll, multiply the amount of sales by 15% ($60,000 x 15% or .15 = $9,000).SOURCE: OP:029SOURCE: Meyer, E.C., & Allen, K.R. (2000). Entrepreneurship and small business management:

Teacher's manual (2nd ed.) [pp. 345-346]. New York: Glencoe/McGraw-Hill.

60. AFrom the top shelf down toward the floor. Even when dusting is done with great care, some dust is redistributed rather than being absorbed by the cloth. If the person dusting starts at the top, any loose dust will fall on the area below and can be wiped up as s/he moves down toward the floor. Dusting should be done with a soft, absorbent or damp cloth that has been treated to hold the dust. Removing everything from the shelves before dusting is preferable to merely rearranging the items.SOURCE: OP:032SOURCE: Johanyak, D. (2005). Cleaning high places. Retrieved August 13, 2007, from

http://www.happynews.com/living/cleaningtips/cleaning-high-places.htm

61. BSeven-step. There's more than one way to solve any problem. The approach you choose depends on your comfort level and experience with a particular approach. It may also depend on how you think best. Logical thinkers who think through things in a step-by-step manner will probably prefer the seven-step method. The intuitive, appreciative inquiry, and brainstorming methods are all more creative and instinct-based than a logical thinker would probably prefer.SOURCE: PD:077SOURCE: IS LAP 2—No Problem


62. DSelf-critical. Few things stop creativity like criticism. Censoring your ideas limits the number of ideas you have and often limits the quality of those that do appear. Independence, curiosity, and determination are traits that creative people often have in common.SOURCE: PD:012SOURCE: PD LAP 2—Creativity

63. AInformational interview. The informational interview is used to learn about careers, get advice on preparing for careers, obtain industry information, and make contacts with people working in the field of interest. Employment interviews are used to screen applicants for jobs. Occupational review and industry analysis are not career search tools.SOURCE: PD:023SOURCE: Doyle, A. (n.d.). Informational interview. Retrieved August 13, 2007, from

http://jobsearch.about.com/cs/infointerviews/a/infointerview.htm

64. ANational Tour Association. The National Tour Association is an organization composed of people who work in the travel and tourism industry. The International Trade Administration is not a professional organization but a government agency. The Information Technology Association of America consists of members who work in the information technology (IT) industry. If it existed, the International Aircraft Mechanics Organization would most likely consist of member whose jobs are to maintain and repair airplanes and helicopters. These members may or may not work for businesses that provide travel and tourism services.SOURCE: PD:036SOURCE: CD LAP 1—Trade Associations/Professional Organizations

65. CKeep up with industry issues, trends, statistics, and research. Professional organizations typically offer current industry data as part of their service to members and the public. Professional organizations may offer continuing-education programs but they are not college-degree-granting institutions. A travel professional would not likely become a member of an industry organization to get vacation advice, since they have such information available through their work. Industry organizations are generally made up of people who work inside an industry, not people in unrelated industries.SOURCE: PD:064SOURCE: Mancini, M. (1999). Selling destinations: Geography for the travel professional (3rd ed.)

[pp. 102-120]. Albany, NY: Delmar.

66. BGuidebooks. There are a variety of guidebooks available that contain additional information on travel destinations, such as lists of accommodations and restaurants, descriptions of historical and cultural attractions and events, names of museums and art galleries, and maps. Examples of guidebooks include the Michelin Guides, the Fodor Guides, and the Frommer Guides. Travel agents often use these guidebooks as a source of additional information when helping a client plan a vacation. Travel agents usually do not rely on newspapers for information, although they may read relevant travel articles. A travel agent might mention that another client had a positive experience visiting a certain location. However, this type of testimonial is not a source of additional information. Illustrations may provide visuals of destinations, but do not provide additional information.SOURCE: PD:124SOURCE: Burke, J., & Resnick, B. (2000). Marketing & selling the travel product (2nd ed.)

[pp. 182-184]. Albany, NY: Delmar/Thomson Learning.

67. DTim's Lakeside Bus Tour. The owner is more likely to be in charge of pricing for a small business such as a sole proprietorship. United Airlines, Hilton Hotels, and Princess Cruise Lines are all large companies that have departments responsible for the pricing function.SOURCE: PI:001SOURCE: PI LAP 2—Pricing


68. BPure competition. More competition exists in this kind of market than in any other. Most products are sold at market price. Sellers can't raise their prices above the market price because buyers can obtain all they want of the product at the lower market price. Sellers also can't lower the price to increase demand because buyers are already buying as much as they want of the product. Monopolistic competition is characterized by many buyers and sellers and a range of prices rather than one market price. In an oligopolistic market, there are relatively few sellers, and the industry leader usually determines prices. In a pure monopoly, there is only one seller or provider of a product, and no substitutes are readily available.SOURCE: PI:002SOURCE: PI LAP 3—Factors Affecting Selling Price

69. CCost per person. When setting the price of a group tour, tour operators usually begin by calculating the per-person costs such as the cost for a hotel room, the cost of meals, the cost of admission to an attraction, etc. Once the cost per person is known, the tour operator multiplies that amount by the number of people in the tour to determine the cost of a group tour. For example, if the per-person cost is $550 for a four-night tour and there will be 40 people on the tour, the cost of the group tour is $22,000. Then, the tour operator factors in profit based on the group cost to set the actual price. If the tour operator wants a 20% profit, multiply the group cost by that percentage and add to the cost to set the price of a group tour ($22,000 x 20% or .20 = $4,400; $22,000 + $4,400 = $26,400). Sales tax is added to the actual price. The rate of inflation is not a factor.SOURCE: PI:040SOURCE: Todd, G., & Rice, S. (2002). Travel perspectives: A guide to becoming a travel professional


70. CIs the product packaged appropriately? Product/Service management is the process of obtaining, developing, maintaining, and improving a product or service mix in response to market opportunities. It includes all activities from the time of a product's creation to the time of its removal from the company's line of products. Choosing the appropriate packaging for the product is one of those activities. Purchasing insurance is not a function of product/service management. The choice of training method is a management decision. How a business communicates to outsiders is a function of promotion.SOURCE: PM:001SOURCE: PP LAP 5—Product/Service Planning

71. ANatural resources that are needed to produce them. Because of continual advances in technology, some products become obsolete very quickly. Some businesses plan for these products to become obsolete quickly so they can sell new, updated versions. This is often considered an ethical issue because the use of natural resources may be involved in producing goods that have a short life span. Many people believe that it is unethical to waste valuable natural resources to produce products that will be used for only a short time. The cost of designing and developing products, the value of training employees to sell those products, and the way that customers decide to use the products are not reasons why the planned obsolescence of certain products often is considered an ethical issue.SOURCE: PM:040SOURCE: Etzel, M. J., Walker, B. J., & Stanton, W. J. (2007). Marketing (14th ed.) [p. 249]. New York:

McGraw-Hill Irwin.


72. CCustomers'. When generating product ideas, a tour wholesaler must consider what the end-user (customer) wants to obtain from the tour package. If the tour or experience does not fulfill a need or want, the customer is less likely to buy it. The tour wholesaler might consider how the tour package would fulfill its own needs (e.g., profit), but if the package does not fulfill the customers' needs, the customer will not buy it and the tour wholesaler will not earn a profit. Although it is possible to consider the industry's needs and the managers' needs, the tour wholesaler should always first consider how the tour package would satisfy the customer.SOURCE: PM:128SOURCE: Kuratko, D.F., & Hodgetts, R.M. (2001). Entrepreneurship: A contemporary approach

(5th ed.) [p. 137]. Mason, OH: South-Western.

73. BTrends. A product opportunity is a situation in which a travel agency acts on the chance to provide a good or service to a market segment that wants and is willing to pay for the product. One way that a travel agency recognizes product opportunities is to monitor trends by using a systematic or step-by-step process. A trend is the general direction in which people or events are moving. A travel agency often monitors many types of trends including demographic, psychographic, and economic trends. Once a travel agency identifies a trend, it can develop products to satisfy the needs of a particular market. Monitoring personnel, finances, and plans does not generally help a travel agency to recognize product opportunities.SOURCE: PM:136SOURCE: Clark, B., Sobel, J., & Basteri, C.G. (2006). Marketing dynamics (pp. 242-244). Tinley Park,


74. AIt can bring legal action against the businesses. The Federal Trade Commission has the power to bring legal action against businesses that violate consumer-protection laws. For example, it can require an advertiser to correct deceptive ads. The FTC provides guidelines for businesses to follow in order to help them understand and comply with consumer-protection laws. The Consumer Product Safety Commission can recall or ban unsafe products and set safety standards for businesses to follow.SOURCE: PM:017SOURCE: PP LAP 7—Consumer Protection in Product Planning

75. ADistribution. A travel and tourism business may offer any number of product lines and define them in a variety of ways. Travel and tourism businesses that set up product lines according to the way in which products reach the customer are using the distribution method. For example, travel and tourism businesses that sell travel and tour packages solely from their web sites are using the distribution method of setting up product lines. Expansion, alteration, and contraction are product-mix strategies.SOURCE: PM:003SOURCE: PP LAP 3—Product Mix

76. BAbove. Positioning is a product mix strategy in which a travel agency creates a certain image or impression of a travel product in the minds of consumers. The market leader (the competing product with the highest market share) is often an important factor that the travel agency considers when conceptualizing the travel products' position in the marketplace. When the travel agency focuses on its travel products' positive, unique, or superior characteristics, it is positioning the products above the market leader. Positioning against the market leader means that the travel agency is contrasting its travel products with the market leader. By positioning the product with the market leader, the business is focusing on how its products are as good as the market leader's products. Marketers do not usually use the term "beside" to describe a way to position a product in relation to the market leader.SOURCE: PM:042SOURCE: Clark, B., Sobel, J., & Basteri, C.G. (2006). Marketing dynamics (pp. 491-492). Tinley Park,



77. ADistinctive. A brand name is the part of a brand that can be spoken, such as a word, a phrase, a letter, and/or a number. It should set the product apart from other products by not being too common or too similar to those used by competitors. A good brand name should not be offensive, or insulting, to any segment of the population. A good brand name may be a private brand owned by a firm and used on its own products or an individual brand, one of many different brand names used for a company's products. These are categories of brands, not characteristics.SOURCE: PM:021SOURCE: PM LAP 6—It's a Brand, Brand, Brand World! (The Nature of Branding)

78. CHelping employees understand how to demonstrate the brand in their jobs. One of the most important responsibilities of a business owner or CEO in his/her role as brand champion is helping employees understand how to demonstrate the brand in their jobs. The success of brands is dependent on employees' buying into brand values and incorporating them into their jobs every day. Developing a catchy slogan is not a primary responsibility of the brand champion; the brand champion is focused on brand pillars—for example, the core values and the brand promise—and how these will build customer relationships. A brand champion works to build enthusiasm and commitment to the brand among employees, rather than simply replacing them. Brand champions do not replace a business's mission statement. Instead, the brand champion continues to build upon the mission statement's foundation as the business grows.SOURCE: PM:126SOURCE: PM LAP 10—Building Your Business's Brand

79. CWeather conditions. Site variables are geographic or climatic conditions, and include the types of weather conditions such as hot, rainy, windy, etc. The weather conditions in certain locations have an effect on travel and tourism in those locations. In many locations, the weather conditions change with the seasons of the year. Travelers usually plan trips to coincide with favorable weather conditions. For example, travelers who want to snow ski would not travel to a ski resort in the summer because the weather conditions would not be suitable for skiing. Restaurant options, hotel facilities, and airport terminals are not site variables.SOURCE: PM:177SOURCE: Burke, J., & Resnick, B. (2000). Marketing & selling the travel product (2nd ed.) [pp. 28-29].

Albany, NY: Delmar/Thomson Learning.

80. DRepeated frequently. Most people would not remember an airline's promotional message if they heard it only once. It should not need to be rewritten frequently if it is properly prepared in the beginning. The most effective promotions are easy to remember.SOURCE: PR:001SOURCE: PR LAP 2—Promotion

81. APersonal selling. Personal selling is the form of promotion that uses planned, promotional communications in order to influence purchase decisions to ensure satisfaction. Clients who are considering the purchase of expensive trips expect the travel agents to provide a lot of information and other assistance because of the amount of money the clients are spending. Businesses selling expensive products generally sell fewer product lines than other businesses. They are not likely to offer self-service items or to present their products in mass displays since these approaches would not be appropriate for expensive products.SOURCE: PR:003SOURCE: PR LAP 1—Promotional Mix


82. ARich-media advertising. This is a promotional method in which an advertiser (e.g., travel agency) uses animation, flash, and other eye-catching techniques to draw attention to a web-site advertisement. Using flashing and animated graphics helps advertisers capture the viewers' attention to the advertising message. Meta tags are HTML codes that display information about web pages. Satellites are pieces of equipment located in outer space that transmit information to ports on the Earth. A click-through is the act of clicking on an advertisement on the Internet and being automatically transported to the advertiser's web page.SOURCE: PR:100SOURCE: Arens, W.F. (2004). Contemporary advertising (9th ed.) [p. 561]. Boston: Irwin/McGraw Hill.

83. ARecipients have given the advertiser permission to send the ad. Opt-in e-mail marketing usually has a higher response rate because the recipients have actually expressed an interest in receiving information about the business's products. People do respond to unsolicited e-mails but in smaller numbers than with opt-in e-mail marketing. Electronic direct mail is not delivered via the postal mail service, but rather over computer networks. Recipients are most likely to respond to an electronic direct mail that provides them an offer such as a coupon or a discount, rather than just information.SOURCE: PR:007SOURCE: PR LAP 3—Ad-quipping Your Business (Types of Promotional Media)

84. ASpam filters. Direct mail is a promotional medium that comes to consumers' homes and businesses. E-mail is a form of direct mail that businesses send by computer. Spam is junk e-mail that the recipient does not request and does not allow the recipient to request removal from the subscriber list. To reduce the amount of spam recipients receive, businesses and consumers are installing software programs that filter the spam, which keeps it from reaching the intended recipients. Invalid e-mail addresses, rather than home addresses, would prevent e-mail recipients from receiving e-mail. Reply options do not keep e-mail from reaching the intended message recipients. Promotion control is a fictitious term.SOURCE: PR:089SOURCE: Arens, W.F. (2004). Contemporary advertising (9th ed.) [p. 574]. Boston: Irwin/McGraw Hill.

85. ASales packets. Sales packets include a variety of materials that are intended to persuade potential customers to buy travel products. Most sales packets in the travel and tourism industry include attractive visuals because they are appealing to the eye and give customers a view of the locations or attractions. Also, sales packets often include testimonials, which are statements by identified users of a travel product proclaiming the benefits received from the use of the product. The testimonials reinforce the idea that the trip or other travel product was worthwhile and would be enjoyable for others. Travel agents send confirmation letters after customers purchase a trip or travel plan. Travel documents include reservations, passports, visas, etc. Travel agents do not include attractive visuals and testimonials in marketing reports.SOURCE: PR:145SOURCE: Weitz, B.A., Castleberry, S.B., & Tanner, J.F. (2004). Selling: Building partnerships (5th ed.)

[pp. 283-284]. Boston: Irwin/McGraw-Hill.

86. BSending out samples of a new product that is on display. In this situation, the promotional activities of display and sales promotion are being coordinated for the purpose of introducing and selling a new product. Advertising a sale or obtaining publicity for new products are examples of single promotional efforts, not coordinated efforts. Using personal selling to earn a sales commission is an effort to reach a personal goal.SOURCE: PR:076SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.)

[pp. 302-304]. Woodland Hills, CA: Glencoe/McGraw-Hill.


87. DSelling. Selling is a marketing function which involves responding to consumer needs and wants through planned, personalized communication that influences purchase decisions and enhances future business opportunities. An example of selling is a business employee helping customers decide what type of products best satisfy their particular needs. Selling enables customers to receive help with their buying problems. Coaching is an on-the-job instructional method in which an employee is assigned a "coach" to set goals and give assistance. Directing is the management function of providing guidance to workers and work projects. Planning is the management function that decides what will be done and how it will be accomplished.SOURCE: SE:017SOURCE: SE LAP 117—Sell Away (The Nature and Scope of Selling)

88. AAppropriate personality traits. An airline's sales personnel must have the appropriate personality traits and attitudes in order to build a loyal clientele for the business. Effective salespeople generally are patient, courteous, friendly, sincere, honest, and trustworthy. These traits can turn a customer into a friend. The personal relationship that is established leads the customer to become a loyal client. Technical experience, professional awards, and continued training may help salespeople to sell, but do not necessarily build a loyal clientele.SOURCE: SE:828SOURCE: SE LAP 115—Keep Them Loyal (Building Clientele)

89. AE-mailing reminders. E-mail technology makes it possible for salespeople to communicate with customers quickly and efficiently. An example of using this technology to increase communication and follow-up with customers is e-mailing reminders. The reminders might include a checklist of items to bring on an upcoming trip (e.g., passport). Customers are more likely to respond positively when they are reminded about something they need. This is a type of follow-up that often leads to repeat sales because customers feel that the travel agents are genuinely interested in them. Videoconferencing involves exchanging information via satellite from various locations. This technique may be used between businesses that have the necessary equipment, but would not be possible with individuals such as the clients who need to be reminded about special travel itineraries. Preparing sales letters and offering training sessions are routine types of communication and follow-up that do not require the use of technology.SOURCE: SE:107SOURCE: Futrell, C.M. (2001). Sales management: Teamwork, leadership, and technology (6th ed.)

[pp. 133-134]. Mason, OH: South-Western.

90. CStrategic alliances. Many airlines have established partnerships with other airlines that allow them to market each other's services. These strategic alliances provide additional services and make it easier for passengers to arrange travel to all parts of the world. For example, a domestic airline might form an alliance with one or more international airlines. Then, passengers wishing to travel from their hometowns to a city in Europe or Asia simply call one airline that will arrange both the domestic travel as well as the international travel. Travelers receive the benefits offered by all the airlines in the alliance such as use of their airport lounges, participating in the frequent-flyer programs, and use of electronic ticketing when available.SOURCE: SE:203SOURCE: Morrison, A.M. (2002). Hospitality and travel marketing (3rd ed.) [pp. 219-220, 268]. Albany,

NY: Delmar/Thomson Learning.


91. ANew York. New York is one of the main ports in the U.S. Cruise lines sail from New York to all parts of the world. Because they are located on the eastern seaboard, Bermuda and the St. Lawrence River are popular destinations for cruise lines sailing out of the port of New York. Miami, New Orleans, and Tampa are popular ports for cruise lines sailing to the Caribbean and Mexico.SOURCE: SE:207SOURCE: Goeldner, C.R., & Ritchie, J.R. (2003). Tourism: Principles, practices, philosophies (9th ed.)

[p. 144]. New York: John Wiley & Sons.

92. CClient testimonials. A testimonial is a statement by an identified user of a product proclaiming the benefits received from the use of the product. Travel agents often solicit testimonials from satisfied clients to use to sell the features and benefits of cruises. Positive statements from previous clients is a good source of selling information because it comes from people who are not associated with the property. Travel agents do not use personnel evaluations, vendor specifications, or management objectives to sell the features and benefits of a Caribbean cruise.SOURCE: SE:109SOURCE: SE LAP 113—Find Features, Boost Benefits (Feature-Benefit Selling)

93. ANonverbal statements. Nonverbal statements of interest include such things as a nod, a smile, or simply leaning forward. Another way for travel agency employees to make customers aware of their concern is by making verbal statements of interest. Verbal statements of interest could include comments such as "great" or "how nice." These statements reassure customers that travel agency employees care. Nodding and smiling are not examples of appropriate or assumptive questions.SOURCE: SE:111SOURCE: SE LAP 114—Questioning

94. AFill out an airline computer reservation system report. Train travel in the United States is booked much the same way as airline travel, using an airline CRS. If a travel agent were to book a client on Express, Rapidos, or TGV, s/he would be booking the client for rail travel in Europe. The Express operates in Spain, the Rapidos in Italy, and the TGV in France. Corridor trains are, by definition, short-distance trains. There is no distinction between them. "Bullet trains," or Shinkasen, operate in Japan, traveling at speeds of 156 miles per hour.SOURCE: SE:238SOURCE: Todd, G., & Rice, S. (2002). Travel perspectives: A guide to becoming a travel professional


95. CObtains firsthand experience. Providing a travel agent with firsthand experience is often the most effective way to promote a cruise. By taking the cruise, the travel agent has an opportunity to evaluate the facilities, service, and destinations. Cruise lines usually put extra effort into making sure the travel agent has a positive experience so the agent will recommend the cruise to clients. Inviting travel agents to experience a cruise is a popular promotional technique that often increases sales for the cruise line. A free vacation is a benefit to the travel agent rather than the cruise line. Taking a complimentary cruise does not obligate the travel agent to the cruise line. Travel agents are not required to attend a training seminar during a complimentary cruise.SOURCE: SE:244SOURCE: Burke, J., & Resnick, B. (2000). Marketing & selling the travel product (2nd ed.) [pp. 186-187].

Albany, NY: Delmar/Thomson Learning.


96. ACancellation insurance. Travel agents usually suggest that their clients purchase cancellation insurance when they make reservations and pay for a cruise. This type of insurance guarantees that the clients will receive a refund if they are unable to go on the cruise and need to cancel after the time limit set by the cruise line. Most cruise lines allow clients to cancel two months in advance without paying a penalty. However, if clients cancel closer to the departure date, they will forfeit a significant portion, or perhaps all, of their payment. Cancellation insurance will protect them from that loss. Personal injury compensation and disability benefits do not protect clients if they need to cancel a cruise. Trip interruption coverage protects clients if an unforeseen event requires them to leave during the cruise.SOURCE: SE:228SOURCE: Todd, G., & Rice, S. (2002). Travel perspectives: A guide to becoming a travel professional

(3rd ed.) [p. 206]. Albany, NY: Delmar/Thomson Learning.

97. DNonrefundable. Airlines offer a variety of fares depending on time of travel, availability, etc. However, some of these fares have special endorsements or restrictions, which means that they are applicable only under certain conditions. For example, an unusually low fare on a flight from New York to Miami might be nonrefundable. If a travel agent books a client on that flight and the client cancels, the fare will not be refunded. When processing the ticket, the agent indicates the restrictions on the ticket and also informs the client. A code after a passenger's name indicates if the traveler is an unaccompanied minor. All airlines allow a certain amount of baggage. Travel agents confirm the reservation before processing the ticket.SOURCE: SE:271SOURCE: Todd, G., & Rice, S. (2002). Travel perspectives: A guide to becoming a travel professional


98. DTo pay for certain expenses. Vouchers are prepaid and can be issued to pay for nearly any travel expense. Tour operators often issue vouchers to clients who are participating in tour packages so the clients can use the vouchers to cover the cost of miscellaneous activities. For example, a tour operator might prepay for admission to a museum and issue vouchers so clients can gain admission to the museum as part of the package. Vouchers also may be issued to clients to cover the cost of certain meals or optional recreational activities. Tour operators do not issue travel vouchers to clients to use as identification tags, to obtain discounts on souvenirs, or to guarantee hotel reservations.SOURCE: SE:274SOURCE: University of Illinois, Office of Business and Financial Services. (n.d.). Business and financial

policies and procedures: Section 15.1 travel regulations. Retrieved August 13, 2007, from http://www.obfs.uillinois.edu/manual/central_p/sec15-1.html#oo

99. DWalking tours. A characteristic of walking tours is that clients actually walk through the various facilities, such as historic buildings. The tour guide leads the way and explains the importance of the building and its unique features. The advantage of walking tours is that clients get a close-up view of the site and have an opportunity to ask questions. Personal tours and city tours are not necessarily walking tours. They often involve riding a bus or trolley to view all the sites in an area. Nature tours involve visiting natural areas such as forests. Many of these involve a combination of walking and riding.SOURCE: SE:356SOURCE: Portland Walking Tours. (n.d.). Scheduled tours. Retrieved August 13, 2007, from

http://www.portlandwalkingtours.com/tours/index.htm


100. BTo maintain appropriate control. Control is the management function that involves comparing what was planned with the actual results. To be able to make comparisons, managers need to develop standards to measure the productivity of specific business activities. If activities do not meet the standards, managers can make changes to increase productivity. Organization is the management function that determines what work needs to be done and who is to do each job. Planning is the management function that includes gathering information, making decisions, and setting goals. Directing is the management function responsible for seeing that workers perform their tasks correctly and on time.SOURCE: SM:004SOURCE: Kleindl, B.A. (2001). Strategic electronic marketing: Managing e-business (pp. 626-627).

Cincinnati: South-Western College Publishing.

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