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The commerce and tourism industry are vibrant and the changes in them are so radical that a series of new concepts and techniques are fast coming into being and the earlier and traditional ones are becoming outdated. Educators and policymakers have increasingly sought strategies to improve academic achievement and preparation for college and career success. The purpose of this study is two folded. Firstly, it focuses on the crucial role of activity-based learning techniques in commerce and tourism education to bridge the gap between industry and academia. Secondly, the study aims to identifying the difference between industry and academia and at the same time offers some useful teaching techniques in commerce and tourism education to overcome the difference. The article is conceptual in orientation and is based on both primary and secondary data sources. The primary sources include discussion and interview with teachers of commerce and tourism courses as well as students. The secondary sources include review of previous studies, magazines and reports and so on. The result of the study indicate that positive attitude towards activity based learning teaching is evident in a marked improvement in academic performance as well as career prospects of a students and make them compatible with the changing business scenario.