2 travel agency.pptx

7/27/2019 2 Travel Agency.pptx

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Travel Agency Article 243 of the Tourism Code of 1980 defines a

travel agency as follows:

a travel and tour agency is an entity engaged inthe business of extending to individuals or groups,

travel services and assistance to includedocumentation, ticketing, booking for

transportation and/or accommodation;arrangements, handling and/or conduct of tours

within or outside Philippines, whether or not for afee, commission or any form of monetary

consideration.


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Travel Agency The Traditional Way

A travel agency, in its traditional role as agents

for principals and travel services providers is

defined as follows:

a commercial enterprises 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.


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The Traditional Linkage

Supplier

MiddlemanTravel Agency

Traveler


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Supplier

MiddlemanTravel Agency

Traveler

As middleman the agency

collects an agents commission

from the supplier. This

commission is normally defined

as a rate-minus.

Alternately, the agency is allowedto unilaterally mark up the net

cost given by the supplier. This is

known as net-plus.

In other words, this is done, in ahidden and subjective way that is

bestprice driven.


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Travel Agency The New Way

The travel agency acts as apartnerto both the

supplier and traveler.

It provides the individual traveler with the

most suitable suppliers based on the travelers

needs, convenience and price.

They examine and evaluate the travelers

preferences and budgets and determines the

best travel arrangement.


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Traveler

SuppliersTravel

Agency

Travel agency manages all of the travelers needs and services in

his/her trip and ask for a professional fee described as cost-plus.Cost-plus is the opposite of rate-minus.

Cost-plus is different from net-plus.

cost-plus is open while net-plus is hidden from the client.

Cost-plus is the new trend, the new way.


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A Travel Agencys new role as partner of the

suppliers and the traveler requires a new

definition:

a commercial enterprise where a traveler may

secure information, receive travel advice, andmake arrangements to travel by air, sea or

land, to any point in the world for a

professional fee.


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Function of a Travel Agency


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1. Provide information and expertisehow to get there

where to stay

what to do


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2. Recommend destinations,products and services best suitedto the needs of the client.


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3. Provides assistance insecuring travel documents


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4. Process travel arrangements


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5. Assist in case of refunds andcancellation


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Sources of Sales and Revenues

1. Negotiated professional or handling fee

(cost-plus)

2. Fixed commissions n regular fares (rate-minus) or reasonable mark up on net

fares (net-plus)

3. Service Fees

4. Production incentives and rebates


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SECRETARY

UTILITY

PERSONNEL

ACOUNT

EXECUTIVE

RESERVATION &

TICKETING


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ADMINISTRATION

OPERATIONS

MARKETING & SALES


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ADMINISTRATION DEPARTMENT

Four Functions:

1. General Administration Section

2. Personnel Section

3. Accounting Section

4. Finance Section


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OPERATIONS DEPARTMENT

The players:

1. The Manager

2. The Travel Supervisor3. The Documentation Supervisor

4. The Travel Counselor

5. Counter Staff6. The Reservation and Ticketing Officers

7. Liaison Officer


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MARKETING AND SALES

The Players:

1. Marketing Manager

2. Product Development Officer(Research)

3. Sales Manager

Counter Sales

Field Sales

Account Executive (Sales Agent)


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Setting up a Travel Agency

It requires a legal personality before it

can legally transact business.

Three types of Business establishments:

1. Sole or Single Proprietorship

2. Partnership

3. Corporation


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Design Your Own Travel Agency

Do the following:

Name

Company Logo

Organizational structure

Office Lay-out

Location


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Assignment: (by group)

Go to the nearest travel agency and ask thefollowing:

1. How did they start their business?

2. How did they come up with their name?

3. What are the challenges they encounter?

4. How did they face those challenges?

5. What are their strategies to survive?

6. What are their edge towards their

competitors?


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Furnish a copy of the following:

Company Profile (brief history, OS, Legal Documentations

and Accreditations, others)

Support your interview with pictures / videos. Create a PowerPoint and present your output to the

class on July 9.

Send a soft copy of the PowerPoint to

[email protected] prior to the presentation

day.
mailto:[email protected]:[email protected]

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