The document discusses the history and operations of the Philippine tourism industry, including the role and importance of travel agencies and agents. It details the evolution of travel agencies, from early pioneers to modern online travel agencies, emphasizing the various business operators involved in the industry. Additionally, it outlines the governmental and private sector entities that contribute to tourism planning and development in the Philippines.

2. Chapter 1
Philippine Tourism Industry

3. LEARNING OBJECTIVES
This chapter will help us understand:
• Discuss the origin of the travel agency
• Define a travel agent operation and its importance.
• Enumerate the different Industry Business Operators.

4. ORIGIN OF TRAVEL AGENCY
The British company Cox & Kings is
sometimes said to be the oldest
travel agency in the world, but this
rests upon the services that the
original bank, established in 1758
supplied to its wealthy clients.

5. ORIGIN OF TRAVEL AGENCY
The modern travel agency first
appeared in the second half of
the 19th century Thomas Cook, in
addition to developing the
package tour, established a chain
of agencies in the last quarter of
the 18th century, in association
with the Midland Railway

6. Origin of Travel Agency
• They not only sold their tours to the
public but in addition, represented
other tour companies.
• Other British pioneer travel agencies
were Dean & Dawson, the Polytechnic
Touring Association, and the Co-
operative Wholesale Society.
• The oldest travel agency in North
America is Brownwell Travel: on July 4,
1887, Walter T. Brownwell led ten
travelers on a European tour, setting
sail from New York on the SS Devoni.

7. Operations of Travel Agency
1. A travel agency's main function is to act
as an agent, selling travel products and
services on behalf of a supplier.
2. Unlike other retail businesses, they do not
keep a stock in hand. A package
holiday or a ticket is not purchased from
a supplier unless a customer requests the
purchase.
3. The holiday or ticket is supplied to them
at a discount. The profit is therefore the
difference between the advertised price
the customer pays and the discounted
price at which it is provided to the agent,
This is known as the commission.

8. Operations of Travel Agency
4. In many countries, all individuals or
companies that sell tickets are required
to be licensed as travel agents In some
countries, airlines have stopped giving
commissions to travel agencies.
Therefore, travel agencies are now
forced to charge a percentage
premium or a standard flat fee per sale.
5. Some companies still give them a set
percentage for selling their product
Major tour companies can afford to do
this because if they were to sell a
thousand trips at a cheaper rate, they
still come out better than if they sell a
hundred trips at a higher rate.

9. A travel Agent is a person whose
job is to arrange travel for clients
(groups, and corporations) on
behalf of suppliers ( airlines, car
rentals, cruise lines, railways, travel
insurance, package tours) His task
is to simplify the travel planning
process for their customers in
addition to providing consultation
services and entire travel
packages
ORGANIZATION OF TRAVEL AGENTS

10. • An agent can be self-employed, work
for an independent travel agency, or
be part of a Travel Agency Consortia.
• Travel agents may specialize in leisure,
business, and/or other travel markets
They may be generalists or specialists
(who specialize in cruises, adventure
travel, conventions, and meetings.
• The Agents typically receive a 10 to 15
commission from accommodations,
transportation companies and
attractions for coordinating the
booking travel
ORGANIZATION OF TRAVEL AGENTS

11. • Although booking a hotel or trip
through a Travel Agent saves time,
nowadays the number of Travel
agencies is decreasing due to the
strong online presence of suppliers
themselves, OTAs are the new online
form of a travel agency.
ONLINE TRAVEL AGENCY
ORGANIZATION OF TRAVEL AGENTS

12. IMPORTANCE OF TRAVEL AGENTS
Using a travel agent is beneficial for
customers who plan multi-destination
and/or international trips. Booking
through an agent saves time and
"headaches". The experience and
consultancy come from "one hand"
the agent who combines all the travel
components and services for
the clients/traveler.

13. Four basic principles
characterize success
in each:
1. Good quality customer service
2. Good management
3. In terms of management, controlling
costs, ensuring highly motivated staff are
employed, and building upon a
customer base through word of mouth
are all critical.
4. The independent agencies, which are
manager-owned and typically employ
fewer than five staff, contrast with the
larger chain agencies, located in
prominent high street or shopping mall
locations, which have high passer by
traffic

14. INDUSTRY BUSINESS
OPERATORS
Tourism Industry is a composite
industry and entities, both
public and private, involved in
planning, development,
marketing, sales, operation,
and evaluation of
destinations, products, and
services that cater to the
needs of travelers both foreign
and domestic

15. GOVERNMENT SECTOR PRIVATE SECTOR
• Department of Tourism • Transportation Companies
• Philippines Tourism Promotions Board • Lodging Industries
• Tourism Infrastructure & Enterprise Zone Authority • Food and Beverage Industries
• Duty Free Philippines Corporation • Attraction & Activities Industries
• Local Government Units • The Travel Trade
• Other Local Government Units • Other Private Sector Entities
• Financial Institutions
• Education and Training Institutions

16. GOVERNMENT SECTORS IN PH
Its primary function is to impose allocation of resources that will help
in making effective economic decisions.

17. DEPARTMENT OF TOURISM
Is the executive department of
the Philippine government
responsible for the regulation of
the Philippine tourism industry
and the promotion of the
Philippines as a tourist destination.
Founded: May 11, 1973
DOT Secretary: Christina Garcia Frasco

18. TOURISM PROMOTION BOARD
An attached agency of the
Department of Tourism, the
Tourism Promotions Board ( exists
to market and promote the
Philippines domestically and
internationally as a world-class
tourism and MICE destination,

19. TOURISM INFRASTRUCTURE AND
ENTERPRISE ZONE AUTHORITY
A government corporation that
acts as the Department of
Tourism’s implementing arm in
providing support infrastructures
and facilitating investments in
tourism enterprise zones
nationwide.

20. DUTY FREE PHILIPPINES CORPORATION
As a government corporation, DFPC
is tasked to operate the duty and
tax-free merchandising system in the
Philippines to augment the service
facilities for tourists and to generate
foreign exchange and revenue for
the government as mandated by
E.O. No. 46.

21. TOURISM COORDINATING COUNCIL
Serves as the coordinating body for national tourism development
effort.
LOCAL GOVERNMENT UNITS
The LGU is empowered to regulate the establishment and operation
of travel agencies in the context of the stated paragraph:
"Regulate the establishment, operation and maintenance of cafes, restaurants,
beerhouses, hotels, motels, inns, pension houses, and other similar establishments,
including tourist guides and transports."

22. OTHER NATIONAL GOVERNMENT AGENCIES
• Department of Transportation and Communications (DOTC)
• Civil Aeronautics Board (CAB)
• Civil Aviation Authority in the Philippines (CAAP)
• Air Transportation Office (ATO)
• Maritime Industry Authority (MARINA)
• Philippine Ports Authority (PPA)
• Land Transportation Franchise and Regulatory Board (LTFRB)
• Department of Public Works and Highways (DPWH)
• Department of Environment and Natural Resources (DENR)

23. OTHER NATIONAL GOVERNMENT AGENCIES
• Department of Foreign Affairs (DFA)
• Department of Trade and Industry (DTI)
• Department of Interior and Local Governments (DILG)
• Philippine National Police (PNP)
• Department of Finance (DF)
• Department of Justice (DOJ)
• Bureau of Internal Revenue (BIR)
• Bureau of Customs

24. PRIVATE SECTORS IN TOURISM
1. Transportation Industry
2. Lodging Industry
3. Food and Beverage Industry
4. Entertainment Industry
5. Travel Trade
6. Other Private Sectors

25. INDUSTRY SUPPLIERS
LODGING INDUSTRY - It features various kinds of luxurious hotels lavish
resorts and campgrounds.

26. INDUSTRY SUPPLIERS
FOOD AND BEVERAGE - This sector
reigns supreme in the industry. It can
range from something as simple as a
bistro to a high-end restaurant.
• Restaurants
• Travel Food Services
• Institutional Food Service

27. INDUSTRY SUPPLIERS
FOOD AND BEVERAGE – Form of
services to the way to F&B is
presented to the guests:
• Table Services
• Buffet Service (catered)
• Banquet Table Service
• Cafeteria Service
• Room Service
• Quick Counter Service
• Take Out Service
• Deliver Services

28. INDUSTRY SUPPLIERS
ATTRACTION AND ACTIVITIES INDUSTRY - Also referred to as the
entertainment, recreation, and leisure sector This industry includes
natural and developed (man-made) attractions that drive much of
humanity to travel
RECREATION AND ENTERTAINMENT INDUSTRY - Such as Amusement
Parks, theme parks, resorts, casinos, cruise, dinner theaters, spas,
fitness and club centers.