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Travel agency and tour operations lecture

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Travel Agency Management
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Travel agency and tour operations lecture

  1. 1. Travel Agency and Tour Operations
  2. 2. The Philippine Tourism Industry The tourism industry is recognized by the government as an important contributor to the generation of foreign exchange earnings, investments, revenue, and employment and to the growth of the country be output. The inclusion of tourism as a major pillar in the Medium Term Philippine Development Plan (MTPDP) has given priority to the tourism sector by promoting the Philippines as a premier tourist destination and investment site. If developed in a sustainable manner, indeed it can be a powerful economic growth engine for the country. It deserves to be a top priority for national development because of the following reasons: • It is a powerful and efficient industry; • Its impact on social development are broad and deep; • It creates strong peripheral benefits; • The Philippines can compete and win; and • It helps maintains cultural integrity, essential ecological processes, biological diversity and life support systems.
  3. 3. The Philippine Tourism Industry The industry is powerful and efficient because: • It is global in size; • It has a strong potential for growth; • It can accommodate large levels of investments • it has a very high value retention rate, i.e., relatively low import component; • It generates direct and indirect jobs; • It generates huge foreign exchange movements; and • It can be developed quickly;
  4. 4. The Philippine Tourism Industry Its impacts on social development are broad and deep because: • It is both labor and capital intensive; • It promotes skills and vocational development that can be exported; and • It promotes a ‘culture of tourism’ through a safer and cleaner environment that benefits not only tourists but also the entire community.
  5. 5. The Philippine Tourism Industry It promotes and creates strong peripheral benefits to other economic sectors and society as a whole through: • Tourism infrastructure spending; • Catalyzing entrepreneurship; and • Improving the image of the country in international trade and investment
  6. 6. The Philippine Tourism Industry The Philippines can compete and win in developing its tourism sector because: • It possesses ‘timeless’ competitive advantage of proximity to North-East Asia, especially China, Japan, and Korea, and it has also world class natural attractions; • It is relatively free of restrictions unlike the other sectors of the economy; and • It can create sizeable niche markets. • To harness growth in the tourism industry, focus, execution and coordinated leadership against priority tourist markets and destinations are required.
  7. 7. 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. •Acts as an agent for different suppliers or providers of products and services.
  8. 8. Travel Management Companies/ Travel Agency ARTICLE OF THE TOURISM CODE OF1980 DEFINES 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 documentations, ticketing, booking for transportation and/ or accommodation arrangements, handling and/ or conduct of tours within or outside the Philippines whether or not for a fee, commission or any form of monetary consideration.
  9. 9. History of Travel Agency THOMAS COOK •Founded the agency by his name in November 1841 •Cook established 'inclusive independent travel. •With John A Mason Cook, he formed a partnership and renamed the travel agency as Thomas Cook and Son.
  10. 10. Function of a Travel Agency 1. Provide information and expertise. 2. Recommend destinations, products and services best suited to the needs of the client. 3. Provide assistance in securing travel documents. 4. Process travel arrangement. 5. Assist in case of refunds and cancellations.
  11. 11. Characteristics of a Travel Management Company 1. Retailer 2. Counsellor 3. Derives income from a pre-determined fixed commission dictated by suppliers or a professional fee negotiated with client 4. Charges fees for ancillary services.
  12. 12. Tour Operator and Travel Agency TOUR OPERATOR – an enterprise regularly engaged in the business of inbound and/or local tour operation such as making online reservations, arranging and booking for transportation and accommodation, handling and/or conducting tours for a fee, commission, or any form of remuneration. TRAVEL AGENCY – an enterprise regularly engaged in the business of providing services such as reservations/bookings, documentation of travel papers, sales and/or issuance of tickets and selling of outbound tours for a fee, commission, or any form of remuneration
  13. 13. Tour Operator and Travel Agency TRAVEL AGENTS TOUR OPERATOR Retailers Wholesalers. Deals with travel agents (retailers) Acts as consultants or advisers to the traveller. Acts as middlemen between the suppliers and the vendors. Revenues are fixed and pre determined by suppliers Have variable but limited revenues income and profit margins Charges fees for documentation and ancillary services Sells optional products and services and makes use of deposits
  14. 14. The Relationship of Travel Agency, Tour Operators & Customers Airlines Hotels Transportation Travel Agency Travel Agents Travel Agents Customer
  15. 15. Travel Agency Table of Organization MANAGER SECRETARY ADMINISTRATION OPERATIONS SALES Bookkeeper Cashier Utility Personnel Travel Counsellor Reservations & Ticketing Liaison Officer Account Executive
  16. 16. Administration Deals with the day-to-day management activities of the company . •Has 4 functions: General Administration Personnel Accounting Finance
  17. 17. 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: 1.Travel Operations 2.Tour Operations. •This department has the following employees: Travel Managers and supervisors Reservations and ticketing officers and; Liaison Officers
  18. 18. Operations 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.
  19. 19. Operations 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
  20. 20. Operations 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
  21. 21. Operations 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
  22. 22. Sales & Marketing •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.
  23. 23. Kinds of Travel Agencies Conventional, Full Service Agencies These agencies sell it all: Air, Lodging Car Rentals, Rail Travel, Cruise Tour, Tours and most other forms of travel packages. Customers can book and receive advise by phone, email or visiting agency in person.
  24. 24. Kinds of Travel Agencies Online Agencies Online agencies operate almost excusively through their web sites. These agencies concentrate on selling travel commodities such as air, lodging and car rentals. They do also sell experiential products such as cruises and tours. A travel agent who works for the online travel agency can explain their products thru phone or online chat.
  25. 25. Corporate Travel Management The travel agent like employees of these division are usually called corporate travel managers. Corporate travel management personnel have many duties. They do the following: • Set corporate travel policy • Plan meetings, conferences and convetion programs • Negotiate with suppliers • Manage travel budgets • Arrange personnel relocation and housing • Communicate with management in other departments of the corporation
  26. 26. Setting up a Travel Management Company / Travel Agency •SOLE OR SINGLE PROPRIETORSHIP 1.Bureau of Domestic Trade Registration a. Trade Name Registration b. Bank Certificate for the Company’s Capitalization c. Tax Identification Number of the owner.
  27. 27. Setting up a Travel Management Company / Travel Agency •SOLE OR SINGLE PROPRIETORSHIP 2. Local Government Unit a. DTI’s Certificate of Business Name Registration b. Copy of the Lease Contract Agreement of the Premises c. Bank Certificate of the company’s paid-up capital d. Financial projections for the next three months e. Bio-data of the General Manager
  28. 28. Setting up a Travel Management Company / Travel Agency •SOLE OR SINGLE PROPRIETORSHIP 2. Local Government Unit f. List of the Company’s employees with respective bio data g. Duly accomplished application form h. Proof of payment of application fee i. General Liability Insurance Policy (varies according to the LGU) j. Surety bond from accredited insurance k. Barangay Clearance
  29. 29. Setting up a Travel Management Company / Travel Agency •PARTNERSHIP 1. Securities and Exchange Commission a. Articles of Partnership b. Bank Certificate of Capital fund paid-up
  30. 30. Setting up a Travel Management Company / Travel Agency •PARTNERSHIP 2. Department of Trade and Industry Registration a. Articles of Partnership b. Bank Certificate of Capital fund paid-up
  31. 31. Setting up a Travel Management Company / Travel Agency •PARTNERSHIP 3. Local Government Unit a. SEC- Security and Exchange Commission approved partnership document b. Copy of lease Contract Agreement of the Premises c. Bank Certificate of capital fund paid- up d. Financial projections for the next three years e. Bio data of General Manager
  32. 32. Setting up a Travel Management Company / Travel Agency •PARTNERSHIP 3. Local Government Unit f. List of company’s employees with respective bio data g. Duly accomplished application fee h. Proof of payment of application fee i. General liability insurance policy (varies according to the LGU) j. Surely bond from an accredited insurance company (varies according to the LGU) k. Barangay clearance
  33. 33. Setting up a Travel Management Company / Travel Agency •CORPORATION 1. Securities and Exchange Commission a. Articles of Incorporation b. By laws c. Bank Certificate of the capital fund paid- up d. Incorporations bio data
  34. 34. Setting up a Travel Management Company / Travel Agency •CORPORATION 2. Department of Trade and Industry Registration a. Article of Incorporation b. By laws c. Bank Certificate of the capital fund paid- up d. Incorporations bio data
  35. 35. The Size of the Travel Management Company •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
  36. 36. Travel Agency Office Requirements  Commercial district  Easily identifiable  Exclusive for the travel and tour operations  Minimum of three (3) employees • (1 General Manager and 2 permanent staff) Source: OFFICE OF TOURISM STANDARDS AND REGULATION ACCREDITATION DIVISION
  37. 37. Travel Agency Office Requirements Office shall be adequately furnished and properly equipped for the conduct of business. Equipments checklist: Air Conditioning Units/Electric Fans Tables and Chairs Filing Cabinet Sitting Area and Lounge Counter Brochure Rack Telephone and Fax Machine Computers and Printers Global Distribution System (GDS) or Computer Reservation System (CRS) Fire Extinguishers Source: OFFICE OF TOURISM STANDARDS AND REGULATION ACCREDITATION DIVISION
  38. 38. Travel Agent’s Value •A travel agent is more skilled at finding the best travel solution. •A travel agent can find the best deal. •A travel agent saves time and trouble. •A travel agent is accountable. •A travel agent knows supplier better •A travel agent knows destination better. •A travel agent is largely partial.
  39. 39. Sales and Revenues of a Travel Management Company 1. As travel arranges, managers or consults, TMC’s charge negotiated professional or handling fee (cost- plus), which may be fixed amount per transactions or percentage of the travel cost. 2. As agents for transportation companies, TMC receive either fixed commission on regular fares (rate- minus) or a reasonable mark- up in net fares (net- plus).
  40. 40. Sales and Revenues of a Travel Management Company 3. For certain ancillary service, such as those for travel documentation, TMC’s collect service fees from the clients. 4. In some cases they also receive production incentive and relates from suppliers.
  41. 41. Kinds of Tours 1. Escorted Tours- The group of people who separately bought the tour package and are meeting for the first time, structured journeys on which the tour participants are accompanied by a travel professional who sees to their needs. On a escorted tour, the person in charge of ensuring an enjoyable experience called tour manager.
  42. 42. Tour Manager Key Responsibilities • Coordinate all travel logistics, such as hotel check- in, baggage handling and group transportation • Guide the travelers through the tour’s itinerary, keeping everyone well informed and on schedule • Offer fun and fascinating commentary while traveling and sightseeing, often in conjunction with local sightseeing guides • Handle any and all problems, personally conflicts, and emergencies • Sometimes accompany the group on the first and last days flights
  43. 43. Kinds of Tours 2. Hosted Tours- similar to escorted tours but the “host” (a tour representative) only meets with the tour travellers when they need to see him or her. 3. Day Tours- are tours that last fewer than 24 hours most city tours would fall into this category they usually conducted via motor coach, minibus, van or as a part of walking tour.
  44. 44. Kinds of Tours 4. Adventure Tours- features physically active, exotic and sometimes demanding experiences. The packages may include hotel accommodations, a round trip flight, three meals a day, a climb up the mountain. 5. Incentive Tour- a reward for a company’s most productive employees.
  45. 45. Reasons Why People takes Tours 1. Time and Money- Travel may be reward for work, a tour that’s through fully arranged and conducted promises travellers that they’ll get their destination and see the sights in a reasonable amount of time and comfort. 2. Quest of Knowledge- learning is the most important benefit of a tour. 3. Camaraderie- The tours in which the group members already know each other. Its members will have similar interests and be of comparable socio-economic status.
  46. 46. Reasons Tours are been sold Tour Operator- sells their tours to the general public. Tour Operator Inbound Operator Outbound Operator
  47. 47. Reasons Tours are been sold Inbound Operator A inbound operator concentrate on tours in a particular city, area or country Outbound Operator A outbound operator takes groups from particular city or country to another city or country.
  48. 48. Travel Documents: Passport A document issued by the Philippine Government to its citizens requesting other government to allows its holder to past safety and freely and in case of need give him/ her lawful aid and protection.
  49. 49. Travel Documents: Passport • The passport is the traveller badge of citizenship proclaiming his / her national affiliation. • The country / state foreign affairs department issue passport only to its citizens. • Consulates / Embassy also issued passport to citizens who happen out to the country.
  50. 50. Kinds of Passport The Maroon Cover for Ordinary Citizens The Red Cover for Government Officials The Blue Cover for Consul Generals
  51. 51. Characteristics of Passport 1. It is a distinguish marks 2. Incorporated hologram seals 3. Made up of special paper 4. With unique serial number
  52. 52. Travel Documents: Visa A foreign document through its consular offices issued this authorization and its specify. The terms under with a government is allowed to entry in to that foreign country.
  53. 53. The Visa’s following terms: 1. Purpose of Journey 2. Maximum length of stay 3. Period of validity for visa
  54. 54. Types of Visa 1. Tourist Visa 2. Working / Business Visa 3. Student Visa 4. Transit Visa 5. Minor Visa 6. Seaman Visa
  55. 55. Travel Documents: Tourist Cards Disembarkation Card- filled out in advance of arrival. Embarkation Card- filled out before the departure and surrendered in immigration.
  56. 56. Travel Documents: Ticket A contract carriage. Airline Ticket A Airline Reporting Corporation (ARC) document either handwritten or computer generated valid transportation by air.
  57. 57. Three Important Functions of Airline Ticket 1. It is the authorization to travel. 2. It is a evidence of the fare and amount paid. 3. It acts as link between Travel Agency, Airline Reporting Corporation (ARC) and Airlines Three Rules of Airline Ticket •Non- Refundable •Non- Reroutable •Non- Transferable
  58. 58. Flight Reservations - Sector / Leg Segment: Sectors being travelled, that is the point of origin to point of destination. -Date of Travel: Date the passenger(s) is / are travelling per sector. -Flight Number / Class: The prefer flight number and class. -Passenger(s) Name: and how many passenger (adults / children with corresponding ages) or are seats are being reserved.
  59. 59. Flight Reservations After providing the above information, the airline will given you the transaction / reservation status Ex. Confirmed, Waitlisted or Unable, the Passenger Number Record (PNR) which the code reference for all the transaction , and the ticket option which is the date and the time when the ticket(s) has to be purchased / issued in order not to lose the reservation.
  60. 60. Flight Class F – First Class C- Business Class Y- Economy / Coach Class
  61. 61. Immigration • The process by which a government official controls movement of people across its borders. • To do this, it verifies a person’s citizenship through passport, visa or other document
  62. 62. Customs • The procedureby which government agents inspect luggage and other goods entering a country to check for forbidden items or restricted ones. • Customs assesses whether duties or taxes on items purchased on the trip.
  63. 63. Safety and Security Issues 1. Before selecting a foreign destination, check for official government assessments and warning about the countries you’ll be visiting. 2. Keep up to date on recent news 3. You should be careful of petty theft 4. Go with brands you know 5. Be prepared for a series of security checks 6. Keep up on restrictions 7. Always bring identification card or passport 8. Never leave valuable items openly visible in your hotel room.

Editor's Notes

  • The travel agency creates tour packages. It consists of transport and accommodation while it sold by a travel agents.
  • Operations Manual (to include feedback and complaints handling)