Ancillary services: currency exchange, insurance, car hire

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IGCSE Drama - Travel and Tourism: Ancillary Services

IGCSE Drama 0411 - Travel and Tourism: Ancillary Services

This section focuses on the ancillary services that enhance the travel and tourism experience. These services are often crucial for a smooth and enjoyable trip, addressing practical needs and providing peace of mind.

1. Currency Exchange

Currency exchange is the process of converting one currency into another. This is a fundamental service for international travelers.

1.1 Types of Currency Exchange

  • Banks: Generally offer competitive rates but may have higher fees.
  • Currency Exchange Bureaus: Conveniently located in airports and tourist areas, but rates can be less favorable.
  • ATMs: Often the most convenient option, providing access to local currency at competitive rates. Fees may apply depending on the bank and ATM operator.
  • Credit/Debit Cards: Widely accepted and often provide good exchange rates, but transaction fees may apply.

1.2 Factors Affecting Exchange Rates

Factor Explanation
Supply and Demand The basic economic principle; higher demand for a currency increases its value.
Economic Performance Strong economic growth often leads to a stronger currency.
Interest Rates Higher interest rates can attract foreign investment, strengthening a currency.
Political Stability Political stability generally supports a currency's value.

1.3 Advice for Travelers

  1. Compare rates from different providers.
  2. Avoid exchanging large amounts of money at airports.
  3. Check for hidden fees and commissions.
  4. Consider using a travel credit card.

2. Travel Insurance

Travel insurance protects travelers against unexpected events during their trip, providing financial security and assistance.

2.1 Types of Travel Insurance

  • Cancellation Insurance: Covers costs if the trip needs to be cancelled.
  • Medical Insurance: Covers medical expenses incurred during the trip.
  • Lost/Stolen Baggage Insurance: Covers the cost of replacing lost or stolen luggage and belongings.
  • Personal Accident Insurance: Covers injuries or accidents that occur during the trip.
  • Emergency Medical Evacuation: Covers the cost of transporting a traveler to a medical facility.

2.2 Key Considerations

  • Pre-existing Medical Conditions: Declare any pre-existing conditions to ensure coverage.
  • Activities: Ensure the policy covers any adventurous activities planned.
  • Destination: Check if the policy covers the specific destination.
  • Excess: Understand the excess amount payable in case of a claim.

3. Car Hire

Car hire provides a convenient way to explore destinations independently. It's essential for travelers who want flexibility and access to remote areas.

3.1 Types of Car Hire

  • Economy Cars: Small and fuel-efficient, suitable for city driving.
  • Compact Cars: A good balance of size and fuel efficiency.
  • Family Cars: Larger vehicles with more space for passengers and luggage.
  • SUVs: Offer more space and ground clearance, suitable for rough terrain.

3.2 Important Considerations

  1. Driver's License: Ensure your driver's license is valid and accepted in the destination country.
  2. Insurance: Consider additional insurance options (e.g., CDW, Theft Protection).
  3. Mileage Allowance: Check the mileage allowance included in the rental agreement.
  4. Fuel Policy: Understand the fuel policy (e.g., full-to-full).
  5. Road Rules: Familiarize yourself with the local road rules and regulations.
Suggested diagram: A simple flowchart showing the process of booking a car hire, from searching online to collecting the vehicle.