International andDomestic TourPlanning, Packagingand Pricing                 First Semester AY 2012-2013  School of Hospit...
The Professor Prof. Tito Antonio A. Ofilada, Jr. • Education:   – MBA (Ongoing)      • Ateneo de Manila University Graduat...
The Professor  Prof. Tito Antonio A. Ofilada, Jr.  • Work Experience:    – Delta Airlines 2008-2010        • Passenger Sal...
The Professor  Prof. Tito Antonio A. Ofilada,    Jr.  • Consultation Hours:    – Tuesdays, 8-9am     School of Hospitality...
School Mission:- to be a recognized and respected educationalinstitution- adhere to the highest international standards- r...
Core Values:- Perfection- Innovation- Integrity- Concern- Prudence- Unity     School of Hospitality Management
Seal of Treston InternationalCollege   School of Hospitality Management
School of Hospitality Management  • Aims to develop tomorrow’s hospitality    and tourism leaders both in the national    ...
School of Hospitality Graduatesare:  •   Service-oriented  •   Passionate  •   excellent communicators  •   Ethical  •   W...
Class Rules • maximum of 3 cuts or absences per subject. Should   you incur absences more than the allowed maximum   numbe...
Class Rules • Electronic gadgets such as but not limited to mobile   phones, laptops and i-pads are not allowed inside   t...
Course Description  • This course aims to equip the students with skills    and knowledge on how to plan, package and    p...
Course ObjectivesBy the end of the course, the student should be able to: COGNITIVE: 1. To describe the different elements...
Course Objectives AFFECTIVE: 1. To answer questions on how to Price domestic    and international travel itineraries based...
Course Objectives PSYCHO-MOTOR: 1. Plan and design domestic and international    travel itineraries. 2. Create and develop...
Reference• Claravall, B. (2008). Travel and Tour  Operations in the Philippines. Manila: Paul  So.     School of Hospitali...
Grading System  Attendance       15%  Orals             15%   Prelim Grade        30%  Quizzes           10%   Midterm Gra...
Grading System1.0-1.25   Excellent1.5-1.75   Very Good2.0-2.25   Good2.5-2.75   Satisfactory3.00        Passed5.00        ...
Let’s Begin…  School of Hospitality Management
The Tourism Industry• A composite of industries and entities  involved in planning, development  marketing, sales, operati...
The Tourism Industry• Entities involved in the tourism industry  are privately owned or Government  operated.• Government ...
The Tourism Industry• The Private sector is composed of the  following:  – Transportation Industry  – Hospitality Industry...
The Tourism IndustryThe Transportation Industry  – The Passenger Transport Industry  – Composed of Sea, Air and Land.  – C...
The Tourism IndustryAir Transportation  – Involves companies providing scheduled air    transport services  – Airports, Ai...
The Tourism IndustrySea Travel  – One of the oldest forms of    transportation  – Includes all water transportation    ope...
The Tourism IndustryLand Transportation  – All land transportation entities- Rail and road  – Also includes car rental com...
The Tourism IndustryThe Lodging Industry  – Places that offer    accommodation for a fee.  – Made up of hotels, resorts,  ...
The Tourism IndustryThe Lodging Industry can be classified through the type of  property:   - Hotels: Two or more floors w...
The Tourism Industry   – Suite Hotels: Lodging facilities that offer only     suite rooms.   – Convention Hotels: provide ...
The Tourism Industry Lodging facilities are given ranks based on their   operating standards.    - Deluxe, First class, St...
The Tourism Industry The Food and Beverage Industry    - All drinking and eating places that serve the      public.    - T...
The Tourism IndustryForm of Service: How food is presented to the  guests.  - Table Service: A host or hostess seats the g...
The Tourism IndustryAttraction and Activities Industry    - Basic terms:       - Leisure: Freedom resulting from the cessa...
The Tourism IndustryAttraction and Activities Industry    - Also called: Entertainment, Recreation or Leisure      Sector....
The Tourism Industry  Attractions  • A physical or cultural feature of a    particular place that individual travellers or...
The Tourism IndustryAttractions    – Includes natural and developed attractions that drive      much of humanity to travel...
The Tourism IndustryAttractions can be:• Natural: places that lure   travelers to enjoy the natural   beauty and the inspi...
The Tourism IndustryActivities   - Establishments primarily      engaged in providing      amusement, recreation or      e...
ActivityGive   examples of activities under the following categories:   -   Leisure   -   Recreation   -   Entertainment  ...
The Tourism IndustryThe Travel Trade• Made up of travel agents, tour  operators, also referred to as  intermediaries or mi...
The Tourism IndustryTravel Agencies• Can be compared to a department store selling travel   needs.• A place or establishme...
The Tourism IndustryTour Operators• Companies that contract and purchase separate travel  components and assembles them in...
The Tourism Industry             TRAVEL AGENTS                          TOUR OPERATOR Retailers                           ...
The Tourism IndustryOther Private Sector Entities   – Includes other sectors with indirect involvement in the     tourism ...
The Philippine TourismIndustry• In the Philippine setting, The tourism industry is a major  player in terms of economic gr...
The Philippine TourismIndustryThe Public Sector in the Philippine Tourism Industry  includes the following:   - The Depart...
What is a Travel Agency?“A travel and tour agency is an entity engaged in  the business of extending to individuals or  gr...
What is a Travel Agency?Traditional view:  - A commercial enterprise  where a traveller can  secure information and  exper...
What is a Travel Agency • Acts as an agent for   different suppliers or   providers of   products and   services.     Scho...
What is a Travel Agency• A middleman between the vendor and the  vendee.            Vendor       Middleman            Vend...
What is a Travel Agency• In a traditional perspective, travel  agencies earn by commissions and  through price- mark ups c...
What is a Travel Agency• With the advent of new technology, travel  agencies harnesses the links, expertise  and professio...
What is a Travel Agency• The Travel Management Company (TMC)  acts as a partner to both the vendor and  the vendee.• TMC’s...
What is a Travel Agency• A commercial enterprise where a traveller  may secure information, receive travel  advice and mak...
What is a Travel Agency                            Vendee                          (travelling                            ...
Functions of a Travel ManagementCompany• Provide Information and Expertise• Recommend Destinations, products and  services...
The Travel Management CompanyTravel Management Companies earn  through the following:  • Through a negotiated professional...
Characteristics of a TMC• Retailer• Counsellor• Derives income from a pre-determined  fixed commission dictated by supplie...
Organizational Structure, Departmentalfunctions and Job Descriptions• Administration  – Deals with the day-to-day manageme...
Organizational Structure, Departmentalfunctions and Job Descriptions• Operations  – Core of the Travel Agency business  – ...
Organizational Structure, Departmentalfunctions and Job Descriptions• Operations  – This department has the following empl...
Organizational Structure, Departmentalfunctions and Job Descriptions• The Travel Counsellor  – Provides all necessary info...
Organizational Structure, Departmentalfunctions and Job Descriptions• The Reservations Officer  – Place all required reser...
Organizational Structure, Departmentalfunctions and Job Descriptions• The Ticketing Officer  – Correctly source or calcula...
Organizational Structure, Departmentalfunctions and Job Descriptions• The Liaison Officer  – Determines what visas and oth...
Organizational Structure, Departmentalfunctions and Job Descriptions• Marketing and Sales   – Sales can either be walk-in ...
Organizational Structure, Departmentalfunctions and Job Descriptions• Marketing and Sales  – Includes product development ...
Organizational Structure, Departmentalfunctions and Job Descriptions• Marketing and Sales  – Includes Product Research and...
The Size of the Travel ManagementCompany• Small sized TMC: no more than 10  employees with a manager supervising all  thre...
Thank you!   School of Hospitality Management
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International and Domestic Planning, Packaging and Pricing week 1

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  • The transportation industry is composed of different sectors involved in the movement of people and goods across different points within a specific area by air, sea and land including all required and necessary infrastructure such as airports, piers, roads bridges and the like.
  • Air travel made traveling faster and cheaper
  • Most hotels are located near business districts, airports and travel destinationsMotels are usually located along major highways and speedways.
  • Suite Rooms consists of a bedroom, kitchenette, living space and a parlour. Most have small lobbies and no public meeting rooms. Often doesn’t have a restaurant and a bar
  • For resorts, classifications are: sea-view, mountain-view etc.
  • Restaurants: Establishments that include Fast-food, Coffee Shops, Specialty Restaurants, Family Restaurants, cafeterias and full services restaurants (fine dining ones)Travel Food Service: Food operations in hotels and motels, roadside service to automobile travellers and all food service on planes, trains and ships.Institutional Food Service: Companies, hospitals, nursing homes. Not included in the tourism industry
  • Examples are clubs, shopping malls and theme parks.
  • Shopping: involves the retail sector of quality gift and souvenir stores
  • Includes Publishing companies that make the fliers and advertismentsITC service providers electronic mediaMarketing and PR organizations: asists and planning a publicity and sales campaginEvent Organizers: MICEMisc. Services: Essential services for tourism insurance hospital and medical services.
  • Handling fee can be a percentage/fixed amount
  • General Admin: legal aspects of the organization, insurance needs of the company purchase and maintenance of furniture, facilities and equipment. Formulation of company policies, standard operating procedures, company forms, filing systems and electronic data. Usually under the general manager with the secretary as the support staffPersonnel: mainly hr functions, hiring selecting people to work within that departmentAccounting: handles all records of the company. Like licences and permits. Responsible for the custody of accountable forms.Finance the cashier handles records and acts as the custodian of all the money collected and disbursed. Assists the general manager in the cash flow management of the operation.
  • General Admin: legal aspects of the organization, insurance needs of the company purchase and maintenance of furniture, facilities and equipment. Formulation of company policies, standard operating procedures, company forms, filing systems and electronic data. Usually under the general manager with the secretary as the support staffPersonnel: mainly hr functions, hiring selecting people to work within that departmentAccounting: handles all records of the company. Like licences and permits. Responsible for the custody of accountable forms.Finance the cashier handles records and acts as the custodian of all the money collected and disbursed. Assists the general manager in the cash flow management of the operation.
  • General Admin: legal aspects of the organization, insurance needs of the company purchase and maintenance of furniture, facilities and equipment. Formulation of company policies, standard operating procedures, company forms, filing systems and electronic data. Usually under the general manager with the secretary as the support staffPersonnel: mainly hr functions, hiring selecting people to work within that departmentAccounting: handles all records of the company. Like licences and permits. Responsible for the custody of accountable forms.Finance the cashier handles records and acts as the custodian of all the money collected and disbursed. Assists the general manager in the cash flow management of the operation.
  • General Admin: legal aspects of the organization, insurance needs of the company purchase and maintenance of furniture, facilities and equipment. Formulation of company policies, standard operating procedures, company forms, filing systems and electronic data. Usually under the general manager with the secretary as the support staffPersonnel: mainly hr functions, hiring selecting people to work within that departmentAccounting: handles all records of the company. Like licences and permits. Responsible for the custody of accountable forms.Finance the cashier handles records and acts as the custodian of all the money collected and disbursed. Assists the general manager in the cash flow management of the operation.
  • General Admin: legal aspects of the organization, insurance needs of the company purchase and maintenance of furniture, facilities and equipment. Formulation of company policies, standard operating procedures, company forms, filing systems and electronic data. Usually under the general manager with the secretary as the support staffPersonnel: mainly hr functions, hiring selecting people to work within that departmentAccounting: handles all records of the company. Like licences and permits. Responsible for the custody of accountable forms.Finance the cashier handles records and acts as the custodian of all the money collected and disbursed. Assists the general manager in the cash flow management of the operation.
  • General Admin: legal aspects of the organization, insurance needs of the company purchase and maintenance of furniture, facilities and equipment. Formulation of company policies, standard operating procedures, company forms, filing systems and electronic data. Usually under the general manager with the secretary as the support staffPersonnel: mainly hr functions, hiring selecting people to work within that departmentAccounting: handles all records of the company. Like licences and permits. Responsible for the custody of accountable forms.Finance the cashier handles records and acts as the custodian of all the money collected and disbursed. Assists the general manager in the cash flow management of the operation.
  • General Admin: legal aspects of the organization, insurance needs of the company purchase and maintenance of furniture, facilities and equipment. Formulation of company policies, standard operating procedures, company forms, filing systems and electronic data. Usually under the general manager with the secretary as the support staffPersonnel: mainly hr functions, hiring selecting people to work within that departmentAccounting: handles all records of the company. Like licences and permits. Responsible for the custody of accountable forms.Finance the cashier handles records and acts as the custodian of all the money collected and disbursed. Assists the general manager in the cash flow management of the operation.
  • General Admin: legal aspects of the organization, insurance needs of the company purchase and maintenance of furniture, facilities and equipment. Formulation of company policies, standard operating procedures, company forms, filing systems and electronic data. Usually under the general manager with the secretary as the support staffPersonnel: mainly hr functions, hiring selecting people to work within that departmentAccounting: handles all records of the company. Like licences and permits. Responsible for the custody of accountable forms.Finance the cashier handles records and acts as the custodian of all the money collected and disbursed. Assists the general manager in the cash flow management of the operation.
  • General Admin: legal aspects of the organization, insurance needs of the company purchase and maintenance of furniture, facilities and equipment. Formulation of company policies, standard operating procedures, company forms, filing systems and electronic data. Usually under the general manager with the secretary as the support staffPersonnel: mainly hr functions, hiring selecting people to work within that departmentAccounting: handles all records of the company. Like licences and permits. Responsible for the custody of accountable forms.Finance the cashier handles records and acts as the custodian of all the money collected and disbursed. Assists the general manager in the cash flow management of the operation.
  • General Admin: legal aspects of the organization, insurance needs of the company purchase and maintenance of furniture, facilities and equipment. Formulation of company policies, standard operating procedures, company forms, filing systems and electronic data. Usually under the general manager with the secretary as the support staffPersonnel: mainly hr functions, hiring selecting people to work within that departmentAccounting: handles all records of the company. Like licences and permits. Responsible for the custody of accountable forms.Finance the cashier handles records and acts as the custodian of all the money collected and disbursed. Assists the general manager in the cash flow management of the operation.
  • The growth of the size of the TMC due to the increased sales resulting from strong marketing efforts.
  • International and Domestic Planning, Packaging and Pricing week 1

    1. 1. International andDomestic TourPlanning, Packagingand Pricing First Semester AY 2012-2013 School of Hospitality Management
    2. 2. The Professor Prof. Tito Antonio A. Ofilada, Jr. • Education: – MBA (Ongoing) • Ateneo de Manila University Graduate School of Business – BS Tourism (2006) • University of the Philippines- Diliman School of Hospitality Management
    3. 3. The Professor Prof. Tito Antonio A. Ofilada, Jr. • Work Experience: – Delta Airlines 2008-2010 • Passenger Sales Agent – Customer Service Intern (Summer 2005) • Philippine Airlines School of Hospitality Management
    4. 4. The Professor Prof. Tito Antonio A. Ofilada, Jr. • Consultation Hours: – Tuesdays, 8-9am School of Hospitality Management
    5. 5. School Mission:- to be a recognized and respected educationalinstitution- adhere to the highest international standards- respond to the market needs- by producing globally competitive and highlyprofessional individuals. School of Hospitality Management
    6. 6. Core Values:- Perfection- Innovation- Integrity- Concern- Prudence- Unity School of Hospitality Management
    7. 7. Seal of Treston InternationalCollege School of Hospitality Management
    8. 8. School of Hospitality Management • Aims to develop tomorrow’s hospitality and tourism leaders both in the national and global setting. School of Hospitality Management
    9. 9. School of Hospitality Graduatesare: • Service-oriented • Passionate • excellent communicators • Ethical • Well-rounded • Creative School of Hospitality Management
    10. 10. Class Rules • maximum of 3 cuts or absences per subject. Should you incur absences more than the allowed maximum number, you will be automatically dropped from the subject and will be given an “FA” or Failure due to Absences in your scholastic report. • Wear the prescribed college uniform when inside the classroom and school premises School of Hospitality Management
    11. 11. Class Rules • Electronic gadgets such as but not limited to mobile phones, laptops and i-pads are not allowed inside the classroom and will be confiscated by the instructor if seen being used by students while class is ongoing. Confiscated gadgets may be claimed at the Guidance & Student Affairs Office upon submission of Letter of Explanation from the student’s parent or guardian. School of Hospitality Management
    12. 12. Course Description • This course aims to equip the students with skills and knowledge on how to plan, package and price international or domestic tourism products based on client requirements and number of participants in a particular tour program. School of Hospitality Management
    13. 13. Course ObjectivesBy the end of the course, the student should be able to: COGNITIVE: 1. To describe the different elements that comprise what are needed in to create tour packages. 2. Identify the functions and duties of Tour Operators against the duties and functions of Travel Agents. School of Hospitality Management
    14. 14. Course Objectives AFFECTIVE: 1. To answer questions on how to Price domestic and international travel itineraries based on the number of passengers, inclusions and highlights offered in a particular tour package. 2. To prepare a marketing proposal for a designed tour package created based on the requirements of the clients. School of Hospitality Management
    15. 15. Course Objectives PSYCHO-MOTOR: 1. Plan and design domestic and international travel itineraries. 2. Create and develop domestic and international travel packages composed of: accommodations, transportation, meals, guide services, attractions and other tour highlights in a certain area. 3. Design a tour package (domestic or international) using the concepts and ideas learned in this course and present the tour product. School of Hospitality Management
    16. 16. Reference• Claravall, B. (2008). Travel and Tour Operations in the Philippines. Manila: Paul So. School of Hospitality Management
    17. 17. Grading System Attendance 15% Orals 15% Prelim Grade 30% Quizzes 10% Midterm Grade 30% Class Standing 40% Pre- Final Grade 40% Exam 60% 100% 100% School of Hospitality Management
    18. 18. Grading System1.0-1.25 Excellent1.5-1.75 Very Good2.0-2.25 Good2.5-2.75 Satisfactory3.00 Passed5.00 FailedINC IncompleteDRP DroppedFA Failure due to Absences School of Hospitality Management
    19. 19. Let’s Begin… School of Hospitality Management
    20. 20. The Tourism Industry• A composite of industries and entities involved in planning, development marketing, sales, operation and evaluation of destinations, products and services to cater to the needs of travelers. School of Hospitality Management
    21. 21. The Tourism Industry• Entities involved in the tourism industry are privately owned or Government operated.• Government entities: – Formulation of Tourism Policies – Provides guidelines for destination development – Regulation of the industry School of Hospitality Management
    22. 22. The Tourism Industry• The Private sector is composed of the following: – Transportation Industry – Hospitality Industry – Food and Beverage – The Activities and Attractions industry – The Travel Trade – Other Private Sector Entities School of Hospitality Management
    23. 23. The Tourism IndustryThe Transportation Industry – The Passenger Transport Industry – Composed of Sea, Air and Land. – Comprises all sectors involved in the transportation or movement of people and goods. – Has the most important role in the industry. School of Hospitality Management
    24. 24. The Tourism IndustryAir Transportation – Involves companies providing scheduled air transport services – Airports, Airstrips and Airfields are integral parts of this sector. – The developments in Aviation has revolutionized travel. School of Hospitality Management
    25. 25. The Tourism IndustrySea Travel – One of the oldest forms of transportation – Includes all water transportation operators, and the land facilities required to service these operators. – Sea operations primarily deal with freight and cargo transport. – Cruise ships primarily deal with transporting passengers. School of Hospitality Management
    26. 26. The Tourism IndustryLand Transportation – All land transportation entities- Rail and road – Also includes car rental companies.Oil Companies - Includes gas stations scattered across different locations. - Designed to service the motoring public and in some ways, the tourism industry. School of Hospitality Management
    27. 27. The Tourism IndustryThe Lodging Industry – Places that offer accommodation for a fee. – Made up of hotels, resorts, motor hotels, pension houses, dormitories and inns. – Each facility has its own identity, operating cycle, goals and loyal following. School of Hospitality Management
    28. 28. The Tourism IndustryThe Lodging Industry can be classified through the type of property: - Hotels: Two or more floors with rooms located along common hallways. Includes services such as: housekeeping, bell service, business centers, recreation facilities, restaurants and bars. - Motels: Less formal than hotels. Offers parking facilities next to the guest rooms. Services often times limited to a swimming pool and restaurant. School of Hospitality Management
    29. 29. The Tourism Industry – Suite Hotels: Lodging facilities that offer only suite rooms. – Convention Hotels: provide meeting and banquet facilities for large groups consisting of more than 500 persons. – Other types: Condo-tels, Resorts, Spas and Casino hotels. School of Hospitality Management
    30. 30. The Tourism Industry Lodging facilities are given ranks based on their operating standards. - Deluxe, First class, Standard, Economy/Tourist and Budget - For resorts: Triple “AAA” (deluxe) Double “AA” (first class) and “A” (standard) - Room Types: Twin, Double, Triple, Quad or Single Occupancy - Room Categories: Standard, Superior, Deluxe. School of Hospitality Management
    31. 31. The Tourism Industry The Food and Beverage Industry - All drinking and eating places that serve the public. - This consists of Restaurants, Travel food service and vending and contract institutional food service. School of Hospitality Management
    32. 32. The Tourism IndustryForm of Service: How food is presented to the guests. - Table Service: A host or hostess seats the guests, servers take orders and deliver these to the table. - Buffet Service: Guests go to the buffet table for food. - Banquet Table Service: Food is transported from a central kitchen in heated carriers and transported near the dining area. - Cafeteria service: Food is dished out unlike in buffet service that is self service. (i.e.. Canteens and food courts) School of Hospitality Management
    33. 33. The Tourism IndustryAttraction and Activities Industry - Basic terms: - Leisure: Freedom resulting from the cessation of activities, special time free from work or duties. - Recreation: Refreshment of strength and spirit after work and means of diversion. School of Hospitality Management
    34. 34. The Tourism IndustryAttraction and Activities Industry - Also called: Entertainment, Recreation or Leisure Sector. - All sites, destinations and organizations that offer attractions and provide entertainment. School of Hospitality Management
    35. 35. The Tourism Industry Attractions • A physical or cultural feature of a particular place that individual travellers or tourists perceive as capable of meeting one or more of their specific leisure- related needs. Such features may be ambient in nature or they may be specific to a location, such as a theatre performance, a museum or a waterfall. Source: Dictionary of Travel & Tourism Hospitality Terms (Robert Harris & Joy Howard, Melbourne, Hospitality Press, 1996) School of Hospitality Management
    36. 36. The Tourism IndustryAttractions – Includes natural and developed attractions that drive much of humanity to travel. – Provides the pull to visit a particular destination. School of Hospitality Management
    37. 37. The Tourism IndustryAttractions can be:• Natural: places that lure travelers to enjoy the natural beauty and the inspiration they provide or;• Man-made School of Hospitality Management
    38. 38. The Tourism IndustryActivities - Establishments primarily engaged in providing amusement, recreation or entertainment on payment of a fee or admission charge. - Examples: Shopping, Leisure, Recreation, Entertainment. School of Hospitality Management
    39. 39. ActivityGive examples of activities under the following categories: - Leisure - Recreation - Entertainment School of Hospitality Management
    40. 40. The Tourism IndustryThe Travel Trade• Made up of travel agents, tour operators, also referred to as intermediaries or middlemen and the tour guides.• The sector that provides the travelling public with advice on destinations to go to and facilitates the reservation or purchase of different travel services. School of Hospitality Management
    41. 41. The Tourism IndustryTravel Agencies• Can be compared to a department store selling travel needs.• A place or establishment where people can secure information, expert counselling and make arrangements for travel by air, sea or land to any point in the world. School of Hospitality Management
    42. 42. The Tourism IndustryTour Operators• Companies that contract and purchase separate travel components and assembles them into one package.• Provides the packages sold by travel agents. School of Hospitality Management
    43. 43. The Tourism Industry TRAVEL AGENTS TOUR OPERATOR Retailers Wholesalers. Deals with travel agents (retailers) Acts as consultants or advisers to the Acts as middlemen between the traveller. suppliers and the vendors. Revenues are fixed and pre Have variable but limited revenues determined by suppliers income and profit margins Charges fees for documentation and Sells optional products and services ancillary services and makes use of deposits Agents of the Suppliers Capitalize on Cost-savers School of Hospitality Management
    44. 44. The Tourism IndustryOther Private Sector Entities – Includes other sectors with indirect involvement in the tourism industry. – Includes the media and other public relations companies that perform tasks of image making. School of Hospitality Management
    45. 45. The Philippine TourismIndustry• In the Philippine setting, The tourism industry is a major player in terms of economic growth.• The industry is also composed of both the private and public sectors. School of Hospitality Management
    46. 46. The Philippine TourismIndustryThe Public Sector in the Philippine Tourism Industry includes the following: - The Department Of tourism - Philippine Convention and Visitors Corporation - Tourism Infrastructure and Enterprise Zone Authority - Local Government Units School of Hospitality Management
    47. 47. What is a Travel Agency?“A travel and tour agency is an entity engaged in the business of extending to individuals or groups, travel services and assistance to include documentation, ticketing, booking for transportation and/or accommodation; arrangements, handling and/or conduct or tours within or outside the Philippines whether or not for a fee, commission or any form of monetary consideration.” - Article 243 of the Tourism Code of 1980 School of Hospitality Management
    48. 48. What is a Travel Agency?Traditional view: - A commercial enterprise where a traveller can secure information and expertise, get impartial counselling, and make arrangements to travel by air, sea or land to any point in the world School of Hospitality Management
    49. 49. What is a Travel Agency • Acts as an agent for different suppliers or providers of products and services. School of Hospitality Management
    50. 50. What is a Travel Agency• A middleman between the vendor and the vendee. Vendor Middleman Vendee (supplier) (Travel Agent) (travelling Public) School of Hospitality Management
    51. 51. What is a Travel Agency• In a traditional perspective, travel agencies earn by commissions and through price- mark ups called “Net-plus” School of Hospitality Management
    52. 52. What is a Travel Agency• With the advent of new technology, travel agencies harnesses the links, expertise and professional service orientation of the travel organization and turns it into a vendor and principal selling travel services and solutions• Also known as: the Travel Management Company School of Hospitality Management
    53. 53. What is a Travel Agency• The Travel Management Company (TMC) acts as a partner to both the vendor and the vendee.• TMC’s are Proactive. School of Hospitality Management
    54. 54. What is a Travel Agency• A commercial enterprise where a traveller may secure information, receive travel advice and make arrangements to travel by land, air or sea to any point in the world for a professional fee.• Travel Agencies now earn through a professional fee called the “Cost plus”. School of Hospitality Management
    55. 55. What is a Travel Agency Vendee (travelling public) Travel Vendor Management (Supplier) Company School of Hospitality Management
    56. 56. Functions of a Travel ManagementCompany• Provide Information and Expertise• Recommend Destinations, products and services best suited to the needs of the client• Provide assistance in securing travel documents.• Process Travel arrangements• Assist in case of refunds and cancellations. School of Hospitality Management
    57. 57. The Travel Management CompanyTravel Management Companies earn through the following: • Through a negotiated professional and handling fee • Commissions or Mark-ups • Service fees for ancillary services • Production Incentives and rebates from suppliers. School of Hospitality Management
    58. 58. Characteristics of a TMC• Retailer• Counsellor• Derives income from a pre-determined fixed commission dictated by suppliers or a professional fee negotiated with client• Charges fees for ancillary services. School of Hospitality Management
    59. 59. Organizational Structure, Departmentalfunctions and Job Descriptions• Administration – Deals with the day-to-day management activities of the company – Has 4 functions: • General Administration • Personnel • Accounting • Finance School of Hospitality Management
    60. 60. Organizational Structure, Departmentalfunctions and Job Descriptions• Operations – Core of the Travel Agency business – Engaged in the efficient and effective delivery of the organizations services. – For larger-sized TMCS operations are divided into 2: Travel Operations and Tour Operations. – This department has the following employees: • Travel Managers and supervisors • Reservations and ticketing officers and; • Liaison Officers School of Hospitality Management
    61. 61. Organizational Structure, Departmentalfunctions and Job Descriptions• Operations – This department has the following employees: • Travel Managers and supervisors • Reservations and ticketing officers and; • Liaison Officers and travel consultants School of Hospitality Management
    62. 62. Organizational Structure, Departmentalfunctions and Job Descriptions• The Travel Counsellor – Provides all necessary information requested by prospective travellers – Recommends products and services best suited to the travellers needs – Keep updated on new travel information and trends. – Fill out all travel information in the booking card for travel. – Relay all changes and confirmations to clients – Process refunds and processing fees – Monitor processing of travel documents and insure that they are all in order prior to release to clients. School of Hospitality Management
    63. 63. Organizational Structure, Departmentalfunctions and Job Descriptions• The Reservations Officer – Place all required reservations with different suppliers – Follow up on reservations placed until confirmed – To change reservations when itineraries are amended – Look for alternative suppliers in the same level of service in case preferred supplier is not available – Monitor issuance of travel vouchers and tickets – Act as back up to the ticketing Officer School of Hospitality Management
    64. 64. Organizational Structure, Departmentalfunctions and Job Descriptions• The Ticketing Officer – Correctly source or calculate fares when the need arises – Issue air tickets manually or through the automated ticketing system – Correctly issue purchase orders in accordance to clients itinerary – Check the accuracy of travel documents – Reissue tickets when required – Act as a back up to the travel counsellor School of Hospitality Management
    65. 65. Organizational Structure, Departmentalfunctions and Job Descriptions• The Liaison Officer – Determines what visas and other documents are required for travel – Check the authenticity of all documents submitted – Checks all relevant support papers. – Insures that documents filed are released on time – Arranges and coordinates appointments and visits to the various consulates and government offices School of Hospitality Management
    66. 66. Organizational Structure, Departmentalfunctions and Job Descriptions• Marketing and Sales – Sales can either be walk-in or field sales – Marketing: everything that is done in order to attract or create awareness about the company. – Lead by the sales and marketing manager • Prepares annual marketing plans • Sets annual sales goals and develops working plans to carry out these goals • Participate in the preparation of the organization’s budget • Decide on negotiated rates and concessions • Prepare proposal letters and contracts • Prepares and submits marketing and sales reports • In charge of all marketing activities and attends tradeshows and fairs • Maintain an updated clients and prospective clients and performs regular sales calls on major accounts and suppliers. School of Hospitality Management
    67. 67. Organizational Structure, Departmentalfunctions and Job Descriptions• Marketing and Sales – Includes product development functions • Reviews existing customer base, product and market profiles and analyzes productn characteristics • Initiates in close coordination with the operations department the development or upgrades of new products and services. School of Hospitality Management
    68. 68. Organizational Structure, Departmentalfunctions and Job Descriptions• Marketing and Sales – Includes Product Research and Development functions • Monitor available products and services in various travel websites and travel platforms • Monitor electronic rates for services available. • Monitor booking terms and conditions of travel products and services. • Dissiminate relevant information to all departments and sections concerned • Maintain and update the company’s website content. School of Hospitality Management
    69. 69. The Size of the Travel ManagementCompany• Small sized TMC: no more than 10 employees with a manager supervising all three departments• A medium sized TMC: 20 or so employees with three departmental heads reporting to one manager• A large Sized TMC: at least 30 employees a comptroller is with the general manager School of Hospitality Management
    70. 70. Thank you! School of Hospitality Management

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