1. Travel Agency and Tour Operations

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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. The Relationship of Travel Agency, Tour Operators & Customers
Airlines
Hotels
Transportation
Travel Agency
The travel agency creates tour packages. It consists of transport and accommodation while it sold by a travel agents.
Travel Agents
Travel Agents
Customer

15. Travel Agency Table of Organization
MANAGER
SECRETARY
ADMINISTRATION
OPERATIONS
SALES
Travel Counsellor
Account Executive
Bookkeeper
Cashier
Reservations & Ticketing
Liaison Officer
Utility Personnel

16. Deals with the day-to-day management activities of the company .
Administration
Deals with the day-to-day management activities of the company .
Has 4 functions:
General Administration
Personnel
Accounting
Finance

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. 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. 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. 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. 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. 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. 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, or visiting agency in person.

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. 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. Setting up a Travel Management Company / Travel Agency
SOLE OR SINGLE PROPRIETORSHIP
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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. Travel Agency Office Requirements
Office shall be adequately furnished and properly equipped for the conduct of business.
Equipments checklist:
Air Conditioning Units/Electric Fans
Telephone and Fax Machine
Tables and Chairs
Computers and Printers
Filing Cabinet
Global Distribution System (GDS) or Computer Reservation System (CRS)
Sitting Area and Lounge
Counter
Fire Extinguishers
Brochure Rack
Operations Manual (to include feedback and complaints handling)
Source: OFFICE OF TOURISM STANDARDS AND REGULATION
ACCREDITATION DIVISION

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. 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. 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. 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. 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. 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. 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. 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. Reasons Tours are been sold
Tour Operator- sells their tours to the general public.
Tour Operator
Inbound Operator
Outbound Operator

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. 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. 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. Kinds of Passport The Maroon Cover for Ordinary Citizens
The Blue Cover for Consul Generals
The Red Cover for Government Officials

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. 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. The Visa’s following terms:
1. Purpose of Journey
2. Maximum length of stay
3. Period of validity for visa

54. Types of Visa 1. Tourist Visa 2. Working / Business Visa
3. Student Visa
4. Transit Visa
5. Minor Visa
6. Seaman Visa

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. Travel Documents: Ticket Airline Ticket A contract carriage.
A Airline Reporting Corporation (ARC) document either handwritten or computer generated valid transportation by air.

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. 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. 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. Flight Class F – First Class C- Business Class
Y- Economy / Coach Class

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. 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. Safety and Security Issues
Before selecting a foreign destination, check for official government assessments and warning about the countries you’ll be visiting.
Keep up to date on recent news
You should be careful of petty theft
Go with brands you know
Be prepared for a series of security checks
Keep up on restrictions
Always bring identification card or passport
Never leave valuable items openly visible in your hotel room.