Unit 2 the Travel Agency

8/13/2019 Unit 2 the Travel Agency

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The Travel Agency
http://www.travel-agents-usa.com/


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Is a commercial enterprise where atraveler can secure information andexpertise, get impartial counseling, andmake arrangements to travelby air, sea or

land, to any point in the world.

Definition

Acts as an agent of the different suppliers

in the tourism industry


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Unilateral Distribution System

Bilevel Distribution System

Supplier Consumer

Supplier Retailer Consumer

Channels of Distribution


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A commercial enterprise where a travelermay secure information, receive traveladvice, and make arrangements to travelby air, sea or land, to any point in the

world for a professional fee.

Travel Management Company

Supplier TMC

Consumer


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Provides information and expertise.

Recommends

destinations, productsand services bestsuited to the needs ofthe client.

Functions of a TMC


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Provides assistance insecuring traveldocuments.

Functions of a TMC


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Processes travel arrangements.

Functions of a TMC


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Assists in cases of refunds andcancellations.

Functions of a TMC


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Setting up a Travel Agency


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Single Proprietorship

Bureau of Domestic TradeRegistration

Trade Name RegistrationBank Certificate for companys

capitalization

TIN of the owner



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Single Proprietorship

LGUDTIs Certificate of Business Name

RegistrationCopy of Lease Contract Agreement of the

premises

Bank Certificate of the companys paid upcapital

Financial projections for the next threeyears



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LGUBio-data of the General Manager

List of the companys employees withrespective bio-data

Duly accomplished application formProof of payment of application fee

General Liability insurance policy

Surety Bond from an accredited insurancecompany

Barangay Clearance



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Partnership

Securities and ExchangeCommissions & DTI RegistrationArticles of PartnershipBank Certificate of capital fund paid-up

LGU

SEC-approved Partnership document*** same with Proprietorship requirements



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Corporation

Securities and ExchangeCommissions and DTI RegistrationArticles of IncorporationBy-laws

Bank Certificate of capital fund paid-up

Incorporators Bio-data



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License to OperateBarangay clearance

Fire safety clearance

Certificate of electrical inspection

Certificate of occupancy

Certified copy of Articles ofIncorporation/Partnership and By-laws orCertificate of Business Name Registrationfor Single Proprietorship

Contract of Lease of office space



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License to OperateSurety Bond valid for one year from the

date of issue

List of all officials and employees and their

respective positions, citizenship, and homeaddress

List of all travel representatives,consultants, sales agents or persons who

are regularly engaged in soliciting andbooking passengers



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License to OperateFor new general manager, application for

permit to work and documents to prove aminimum of three (3) years experience in

travel and tour agency operations.For new agencies, a two or three-year

projected financial statement reflecting aminimum working capital of Php

1,000,000.00.



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Registration with the followinggovernment agencies:SSS

BIR

Pag-ibig

Philippine Health Insurance Group

DOT Accreditation: is a certificate issued bythe DOT that the holderhas complied with theDOTs minimum standardsin the operation ofthe establishment concerned.



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Small-sized TMC/TA

MANAGER

Administration Sales

Secretary

Operations

Organizational Structure


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General

Manager

Administration Sales

Secretary

Operations

Asst. General

Manager

EDP/MIS

Organizational Set-Up

Medium-sized TMC/TA


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General

Manager

AdministrationSales &

Marketing

Secretary

Operations

(Tours)

Asst. General

Manager

EDP/MISComptroller

Operations

(Travel)

Organizational Set-Up

Large-sized TMC/TA


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Administration DepartmentGeneral Administration Section

Personnel Section

Accounting Section

Finance Section

Departmental Functions


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Marketing and Sales DepartmentMarketing

-Creating awareness of both thecompany and its products and services.

AdvertisingPublicationsPublicity

Public RelationsPromotions



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Marketing and Sales DepartmentCounter Sales

-Transactions captured by the travelcounselors or counter staff.

Field Sales- Transactions captured by the accountexecutives or sales agents orrepresentatives outside the officepremises.



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BookkeeperCashierUtility Personnel

Administrative ManagerAccountant

Collectors

Travel Agencys Manpower


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Travel CounselorReservation & Ticketing AgentLiaison Officer

Travel Manager/Tour ManagerTravel/Counter Supervisor

Documentation Supervisor



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Account Executive

Sales Manager

Sales & Marketing ManagerBusiness and Product Development SupervisorResearchersUtility Personnel



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OperationsCounter CounselingDocumentationReservations

Fare CalculationsTicketing



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Cost-plus:a negotiated professional or handlingfee

Commissions:a percentage of the total price

paid to an agency. (rateminus)Transportation = 5-9%Tour packages = 11% - 22%

Sales and Revenues of TMC


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Reasonable Mark-up on Net Fares:a feeadded to the net price (considers expenses orprofit margin) (netplus)

Sales and Revenues of TMC

Service Fees:a collected amount for certainancillary service

Production Incentives and Rebates


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Airline Seat 450.00Commission 6% 27.00

Commission


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Mark-up

Airfare 250.00Ground transfer 20.00

Accommodation 300.00

Sightseeing 50.00Meals 70.00

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Total Cost $690.00Mark-up 10% 69.00

Total Selling Price $759.00

Documents

Unit 2 the Travel Agency