Intro to Travel Agency

Tourism: Activities of people traveling to and staying in places outside the usual environment for not more than a year for pleasure, business and others
Industry: An entity that generates either products or services for profit

Tourism Industry: Is a composite of industries and entities, both public and private, involved in the planning, development, marketing, sales, operation and evaluation of destinations, products and services
Government Sector * Planning, development, marketing of` destinations * Delivery of tourism services * Evaluation of tourism results
Private Sector * Planning, development, marketing of specific tour products * Operation of tour products * Delivery of tourism services * Evaluation of tourism results

Government Sector: DOT,PCVC, PTA, LGU
Private Sector: * Transportation * Lodging/Hospitality * Food and Beverage * Activities and Attractions * Travel Trade * Others (Publishing companies, Events Organizers Department of Tourism: Mr. Ramon Jimenez, Jr. (Secretary) Tourism Infrastructure and Enterprise Zone Authority ( Philippine Tourism Authority) * To develop identified tourism priority areas; * To operate, maintain and promote facilities in pioneering capacity; * Collection of Travel tax * Tourism Promotions Board (TPB) * ( Philippine Convention and Visitors Corporation

Tourism as a Product * Intangible * Perishable * Standard and quality varies over time * Interacts with external forces
Tourism Product : Destination
-Is a geographical unit which the tourist visits and where s/he stays.
3 factors: * Attractions * Amenities or Facilities * Access
Tourism as a Service * Employees perform actions that benefit or serve customers * Employees are professionals * A special attitude or relationship exists between the employee performing the service and the customer receiving it
Travel: Is the act of moving outside one's home community for business or pleasure
Thomas Cook

Travel Agency: Is a commercial enterprise where a traveler can secure information and expertise, get impartial counseling, and make arrangements to travel by air, sea or land, to any point in the world.
:Acts as an agent of the different suppliers in the tourism industry

Unilateral Distribution System: Supplier -> consumer
Bilevel Distribution System: Supplier -> Retailer -> Consumer * “A commercial enterprise where a traveler may secure information, receive travel advice, and make arrangements to travel by air, sea or land, to any point in the world for a professional fee.” * Provides information and expertise. * Recommends destinations, products and services best suited to the needs of the client. * Provides assistance in securing travel documents. * Processes travel arrangements. * Assists in cases of refunds and cancellations.

Single Proprietorship
a. Bureau of Domestic Trade Registration * Trade Name Registration * Bank Certificate for company’s capitalization * TIN of the owner
b. LGU * DTI’s Certificate of Business Name Registration * Copy of Lease Contract Agreement of the premises * Bank Certificate of the company’s paid up capital * Financial projections for the next three years * Bio-data of the General Manager * List of the company’s employees with respective bio-data * Duly accomplished application form * Proof of payment of application fee * General Liability insurance policy * Surety Bond from an accredited insurance company * Barangay Clearance

Partnership
Securities and Exchange Commissions & DTI Registration * Articles of Partnership * Bank Certificate of capital fund paid-up
LGU
* SEC-approved Partnership document * *** same with Proprietorship requirements
Corporation
* Securities and Exchange Commissions and DTI Registration * Articles of Incorporation * By-laws * Bank Certificate of capital fund paid-up * Incorporators’ Bio-data * License to Operate * Barangay clearance * Fire safety clearance * Certificate of electrical inspection * Certificate of occupancy * Certified copy of Articles of Incorporation/Partnership and By-laws or Certificate of Business Name Registration for Single Proprietorship * Contract of Lease of office space * Surety Bond valid for one year from the date of issue * List of all officials and employees and their respective positions, citizenship, and home address * List of all travel representatives, consultants, sales agents or persons who are regularly engaged in soliciting and booking passengers * For new general manager, application for permit to work and documents to prove a minimum of three (3) year’s experience in travel and tour agency operations. * For new agencies, a two or three-year projected financial statement reflecting a minimum working capital of Php 1,000,000.00. * Registration with the following government agencies: * SSS * BIR * Pag-ibig * Philippine Health Insurance Group * DOT Accreditation: is a certificate issued by the DOT that the holder has complied with the DOT’s minimum standards in the operation of the establishment concerned.

Small-sized TMC/TA
MANAGER
Administration
Sales
Secretary
Operations

Medium-sized TMC/TA

General
Manager
Administration
Sales
Secretary
Operations

Asst. General
Manager
EDP/MIS

Large-sized TMC/TA

General
Manager
Administration
Sales &
Marketing
Secretary
Operations
(Tours)

Asst. General
Manager
EDP/MIS

Comptroller
Operations
(Travel)

Administration Department * General Administration Section * Personnel Section * Accounting Section * Finance Section

Marketing and Sales Department
Marketing: Creating awareness of both the company and its products and services. * Advertising * Publications * Publicity * Public Relations * Promotions

Counter Sales: Transactions captured by the travel counselors or counter staff.

Field Sales : Transactions captured by the account executives or sales agents or representatives outside the office premises. * Bookkeeper * Cashier * Utility Personnel * Administrative Manager * Accountant * Collectors * Travel Counselor * Reservation & Ticketing Agent * Liaison Officer * Travel Manager/Tour Manager * Travel/Counter Supervisor * Documentation Supervisor * Account Executive * Sales Manager * Sales & Marketing Manager * Business and Product Development Supervisor * Researchers * Utility Personnel

Operations * Counter Counseling * Documentation * Reservations * Fare Calculations * Ticketing

Cost-plus: a negotiated professional or handling fee

Commissions: a percentage of the total price paid to an agency. (rate – minus) * Transportation = 5-9% * Tour packages = 11% - 22%

Reasonable Mark-up on Net Fares: a fee added to the net price (considers expenses or profit margin) (net – plus)

Service Fees: a collected amount for certain ancillary service Production Incentives and Rebates
Airfare 250.00
Ground transfer 20.00
Accommodation 300.00
Sightseeing 50.00
Meals 70.00
Total Cost $690.00 Mark-up 10% 69.00 Total Selling Price $759.00