Travel agency and tour operations lecture

Travel Agency and Tour Operations

The Philippine Tourism IndustryThe 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.

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;


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.


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


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.

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.

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.

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.

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.

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.

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

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

The Relationship of Travel Agency, Tour Operators & Customers

Travel Agency

Airlines Hotels Transportation

Travel Agents Travel Agents

Customer

Travel Agency Table of Organization

MANAGER

OPERATIONSADMINISTRATION SALES

Bookkeeper

Cashier

Utility Personnel

Travel Counsellor

Reservations & Ticketing

Liaison Officer

Account Executive

SECRETARY

AdministrationDeals with the day-to-day management activities of the company .

• Has 4 functions:General AdministrationPersonnelAccountingFinance

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

OperationsThe 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.

OperationsThe 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

OperationsThe 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

OperationsThe 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

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.

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.

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.

Corporate Travel ManagementThe 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

Setting up a Travel Management Company / Travel Agency

•SOLE OR SINGLE PROPRIETORSHIP

1.Bureau of Domestic Trade Registrationa. Trade Name Registrationb. Bank Certificate for the Company’s Capitalizationc. Tax Identification Number of the owner.



2. Local Government Unita. DTI’s Certificate of Business Name Registrationb. Copy of the Lease Contract Agreement of the Premisesc. Bank Certificate of the company’s paid- up capitald. Financial projections for the next three monthse. Bio-data of the General Manager



2. Local Government Unitf. List of the Company’s employees with respective bio datag. Duly accomplished application formh. Proof of payment of application feei. General Liability Insurance Policy (varies according to the LGU)j. Surety bond from accredited insurancek. Barangay Clearance


•PARTNERSHIP

1. Securities and Exchange Commissiona. Articles of Partnershipb. Bank Certificate of Capital fund paid-up


•PARTNERSHIP

2. Department of Trade and Industry Registrationa. Articles of Partnershipb. Bank Certificate of Capital fund paid-up


•PARTNERSHIP

3. Local Government Unita. SEC- Security and Exchange Commission approved partnership documentb. Copy of lease Contract Agreement of the Premisesc. Bank Certificate of capital fund paid- up d. Financial projections for the next three yearse. Bio data of General Manager


•PARTNERSHIP

3. Local Government Unitf. List of company’s employees with respective bio datag. Duly accomplished application feeh. Proof of payment of application feei. 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


•CORPORATION

1. Securities and Exchange Commissiona. Articles of Incorporationb. By lawsc. Bank Certificate of the capital fund paid- upd. Incorporations bio data


•CORPORATION

2. Department of Trade and Industry Registrationa. Article of Incorporationb. By lawsc. Bank Certificate of the capital fund paid- upd. Incorporations bio data

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

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 REGULATIONACCREDITATION DIVISION

Equipments checklist:Air Conditioning

Units/Electric FansTables and ChairsFiling CabinetSitting Area and LoungeCounterBrochure Rack

Telephone and Fax MachineComputers and PrintersGlobal Distribution System

(GDS) or Computer Reservation System (CRS)

Fire Extinguishers

Office shall be adequately furnished and properly equipped for the conduct of business.

Travel Agency Office Requirements

Source: OFFICE OF TOURISM STANDARDS AND REGULATIONACCREDITATION DIVISION

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.

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).

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.

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.

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

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.

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.

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.

Reasons Tours are been sold

Tour Operator- sells their tours to the general public.

Tour Operator

Inbound Operator Outbound Operator

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.

Travel Documents:

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.

Passport

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.

Kinds of Passport The Maroon Cover for Ordinary Citizens

The Red Cover for Government Officials

The Blue Cover for Consul Generals

1. It is a distinguish marks

Characteristics of Passport

2. Incorporated hologram seals

3. Made up of special paper

4. With unique serial number

Travel Documents:

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.

Visa

1. Purpose of Journey

The Visa’s following terms:

2. Maximum length of stay

3. Period of validity for visa

1. Tourist Visa

Types of Visa

2. Working / Business Visa

3. Student Visa

4. Transit Visa

5. Minor Visa

6. Seaman Visa

Tourist Cards

Disembarkation Card- filled out in advance of arrival.

Embarkation Card- filled out before the departure and surrendered in immigration.

Travel Documents:

Travel Documents:

A contract carriage.

Ticket

Airline Ticket

A Airline Reporting Corporation (ARC) document either handwritten or computer generated valid transportation by air.

1. It is the authorization to travel.

Three Important Functions of Airline Ticket

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- Transferable

•Non- Reroutable

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.

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.

Flight Class

F – First Class

C- Business Class

Y- Economy / Coach Class

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

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.

Safety and Security Issues1. 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.