FUNCTIONS OF A TRAVEL AGENCY

1.It provides information and expertise in a country 2.It impartially recommends particular destination,suppliers,products and services best suited to the needs of the travelers. 3. It provides assistance in securing travel documents, such as passport and visas and immigration clearances. 4. It processes travel arrangements by placing reservations, obtaining confirmation and issuing corresponding tickets or tour vouchers 5. it assists in cases of refunds and cancellation.

Characteristics of a Travel management Company ( TMC ) 1. Retailer- Transacts business and sells directlect to the end user, TMC/ Travel agencies are retailers, since their clients are the end users. The TMC/trave agentsare the retail part of the distribution. 2. Act as counselor to the enduser and as agent and/ or intermediary for the suppliers.

3, Derives revenues from a predetemined fixed commision dictated by the suppliers of travel services or from a professional fee negotiated with the client. Occassionaly,when provided wit net rates, unilateral mark-ups also provide revenues; and 4. Charges fee for ancillary service such as travel documentation.

A Travel Agents Value There are many reasons why its good idea for consumers to book through a travel agent. The following sections list some of those reasons. 1. The travel Agent is more skilled at finding the best travel solution; 2. A travel Agent can find the best deal; 3.A Travel agent saves time and trouble; 4. A travel agent is accountable;

5.A Travel Agent knows suppliers better; 6. A Travel Agent knows destinations better; 7.A Travel Agent is largely impartial;-most consumers dont trust advertising, the agency is able to solve almost any clients needs;

Introduction to Tourism- An Overview about the Industry

KINDS OF TRAVEL AGENCIES 1. Conventional,full service Agencies-these agencies sell it all: air, lodging, car rentals, cruises, tours and most other forms of travel packages. They tend to sell mostly to people in their own geographic community; a. They may be wholly owned by a large agency chain ex. American Express -Loclal Chain/ regional chaic.

b. Travel agencies may be francies that are owned by individuals or families but are affiliated with a large brand, to whom the owners pay an annual franchise fee or percentage of profits.ex. Uniglobe c.Travel Agencies may be affiliated with a consortium-it is a group of agencies that works together to obtain and develop marketing tools,a ccounting systems,training systems and higher commissions from select, preferred suppliers.

d. Travel Agencies may simply be independent

4. Home-based agenciesTypes of home based travel agency a. The agents like working from home because of the independende and flexibility it affords.,It requires less office space and fewer resources. B. The owners of a mom and pop /independent agency may decide that the overhead costs of a conventional storefront location are financially unfeasible but that working out of a home location is viable and affordable. So they decide to operate the agency entirely from home.

c. An agency may have a part-time seller of travel, who prefers to work out of his or her home. Such outside agents may ahve afull time job to another field and sell travel to their circle of friends, relatives, and coworkers. The agency with which the seller is affiliated is usually called a host agency.

Issuing a ticket, collecting money, using the telephone,talking to clients,using a computer.etc.

1. Using the telephone a.prepare what we intend to say; b. list the points we want to discuss; c.have pen and papers at hand to write down essentials d. introduce the name of the agency and greet the clients; e. the greeting should be short f. need to action calls quickly

g. your voice is the key factor here, it must sound warm and friendly but not emotional ,try to keep a steady pitch h. the aim is to communicate as easily and as simply as possible; i. a call may take only a few seconds or few minutes
2.-Sales technique in the Office Face to face selling

Products benefits to the clients; 1.air ticket 2.accommodation 3.activities 4.insurance 5.visa assistance 6.passport assistance

3.Identifying the clients needs It is important to know why people are travelling: 4. Closing the sale-investigating the clients needs and listening to what the client has to say.

Reservations have been made, and alternatives offered if the original request is not available. You have to won clients confidence and sold the holidays. Collect the payment, complete the booking form and attend to all other formalities, like visa passport, health req. insurance and so on.

5. After Sales ServiceRecommend your travel agency to their friends and family members. 6. Client relations 7. Time management 8. Follow up to make sure the trip went well.

BASIC DIFFERENCES BETWEEN TRAVEL AGENTS AND TOUR OPERATOR

TRAVEL AGENTS
1. Retailers. Transact business

TOUR OPERATOR
1. Wholesalers. Deals primarily with the retailers ( travel agents ) 2. Act as middlemen to the suppliers. 3. Have variable but limited revenues income and profit margins.

directly with the travelers. 2. Act as counselor/advisers to the traveler and are agents for the supplier. 3. Revenues are fixed and pre determined by the suppliers/vendors

differences
TRAVEL AGENT
4. Charge fees for documentation and ancillary services 5. Are agents of the suppliers/vendors

TOUR OPERATORS
4. Sells optional products and services and makes use of deposits. 5. Capitalize on cost-savers.

THE TRADITIONAL LINKAGE

VENDOR

MIDDLEMEN

VENDEE

Traditional way The travel agency act as the middlemen between the vendee and the vendor. The vendee communicates with the middlemen,and the middlemen communicates with the vendor., and vice versa.. The vendor and the vendee do not communicate with each other. The middlemen reacts to the needs of the vendee and subjective way that is best price driven.

VENDEE

VENDOR

TRAVEL MNGT. COMPANY

THE EMERGING LINKAGES The Travel Management Company- an entity

where in all parties are treated as partners, equally sharing data and information, andmutually benefiting from open communication and information exchange. It acts also as partner to both the vendor and the vendee. Itdoes not act as an agent. It examines and evaluates the vendeespreferences and budgetsand determines the best travel arrangements.

Professional fee described as cost-plus. In short it provides the best travel solution for a professional fee. Rate minus- the traditional way of handling the business of travel. Net plus- hidden from the client.

PRIVATE SECTORS 6 Principal Industries directly involved in Tourism are:

1. The Transportation Industry-

2. The Hospitality Industry 3. Food and Beverages 4. The Activities and Attractions

Industry or Entertainment Industry 5. The Travel Trade-( Travel Agents, Tour Operator and Tour Guides 6.Other Private Entities-

THE OTHER PRIVATE SECTORS ENTITIES

1. Publishing Companies-producers of electronic and printed news,features, articles and advertising-keep up to date. 2. ITC Service Providers-GDS/CRS produce in electronic or printed form,referencemanuals,tariffs, guidebooks,atlases, tiem table and operational handbooks 3. Marketing and Public Relations Org.-assistance in planning a publicity and sales campaign, selecting target markets, providing market research discovering new markets and in the overall conduct of sales and marketing programs.

4. Event Organizers- ( MICE ) for meetings, incentives, conventions and exhibitions involved with tasks as negotiating with the hotel,airlines and other companies. 5. Miscellaneous Services-provide essential services for tourism, insurance, hospital and other services..

Characteristics of a Travel Management Company ( TMC ) 1. Retailer- transacts business and sells directly to the end user. The TMC/Travel Agent are retailers, and the clients are the end users. 2. Acts as counselor to the end user and as agent or intermediary for the suppliers. 3. Derives revenues from a predetermined fixed commission dictated by the suppliers of travel services or from a professional fee negotiated with the client. Occasionalyy when provided with net rates, unilateral mark-ups also provide revenues; 4. Charges fees for ancillary service such as travel documentation.

Hello there!

A travel Agent

1. Administration- this department has 4 functions: a. General Administration- The general manager or the assistant manager normally undertakes the supervision of this. Within this area of responsibility are the legal aspects of the organization, which are normally handled by lawyers on a retainer basis. This aspect of the company is necessary for : 1.1 protection from errors 1.2 third party liability 1.3labor relations with the companyemployees

b. Personnel-The management and developmentof human resources is an integral part of Administrative department. This aspects involves hiring policies and compensation schemes, specifically the qulifications required of prospective employees and compensation packages commensurate to the applicants credentials.Education and trainings of the staff are also under this. Personnel officers are under it., they evaluates staff performance in order to determine merit increases in monthly compensation and conducts written warnings of poor performance on a regular basis.

Accounting section- handles all records of the company, including all pertinent government licenses and permits. This is also responsible for the custody of accountable forms such as ,officials receipts, invoices, purchase order, tour vouchers and suppliers tickets stocks. Accountant is also responsible for the implementation of the Company policies pertinent to billings, credit and collection. The formulationof the budget and monitoring a payables and receivables.

prepares invoices and other vouchers. Finance Section- represented by the cashiers who handles records and acts as custodian of ll the moneycollected and disbursed. The finance person assists the general manager in the cash flow management of the organization. Cashier- reports tot he Administrative Officer or the general manager, receives all paymants andmake sure that these arein order, insures all collections are duly deposited with the bank and creditedto the companys current/savings accounts.

Operations Department- the core of the TMC/Travel Agency business. It is primarily engaged in the efficientand effective delivery of the organizations services. The emplyees are: the Manager, Travel Supervisor and Documentation Supervisor, the travel counselors or counter staff, the reservation and icketing Officers and the Liaison officer.

Travel Counselors or Counter Staff- duties and responsibilities are; to recommend products and services best suited to the travelers needs including best routes, carriers, gateways and stop overs., to provide necessary information requested by prospective travelers.

The reservations officers place all required reservations with the airlines, hotels, tour operators and any other supplier, by electronic or manual means, follow up reservationsplaced until confirmations are received,to monitor the issuance of tour voouchers or air tickets.

Ticketing officers- issue air tickets, either manually or through automated ticketing machine of hte computerized reservation systems,correctly or calculate fares when the need arises,to correctly issue purchase orders ( for non-IATA agents only ) in accordance with the clients itinerary.

Liaison or Documentation Officer-determine what visas and other documents are required for travel, check authenticity of all public documents submitted,insures that the documents filed are released on time, arranges and coordinates appointments and visits to the various consualtes and government offices.

Marketing- is everything that is done to create awareness about a company, its products and its services and create sales opportunites.Marketing Manager-undertakes the marketing activities, the overall responsibility is to generate targeted maximum sales for the organization in order to meet the targeted figures.

Additonal responsibilities are: prepare an annual directed towards maintaining and increasing predetermined levels of revenue, set annual goals and develop working plans to carry out the goals within a time frame, participate in the preparation of the organizationals budget, decide on the negotiated rates and concessions as needed.and also to keep abreast of the development in the market and the development of new products and services.

Sales- counter sales are transactions captured by the travel counselors or counter staff that is always geared to service walk in clients. These are the result of good information sharing and suitable and attractive recommendation.

Field Sales- trasactions are captured by the account executives or sales agents or representatives outside the office premises and as a result of predetermined solicitation of business, have sales plans and patterns to implement and take time to follow up sales leads. They also prepares and conducts monthly and daily sales calls plans., prepares proposal letter, participates in developing the annual marketing plan, undertakes monthlyevaluation of accounts in relation to production, payments and credit.

1.A small-sized TMC/Travel Agentwouldhaveno more thatn tenemployees witht the Manager supervising all the 3 departments. 2.A Medium sized- about 20 or so employees, with three department heads.

Manager

Secretary

Administration Bookkeper, Cashier Utility Personnel

Operations Travel Counselor Reservation/Ticketing

Salesaccount Executives

Setting Up a travel Management Company/Travel Agency. Group Presentation Group-1. Sole or single proprietorship-

Group 2-Partnership Group 3. Corporation

August 2- Group Presentation

Requirements1. Requirements in putting up Travel agency /TMC. 2. Sample travel agency

Requirements for Accreditation A. Who may apply?

1.Aresident Filipino citizen 2.A partnership organized under the laws of the philippines, at least 60% of the capital owned by the filipino citizens.

3.Corporations organized under the lawsof the Philippines,at least 60% of the subscribed common r voting shares of stocks whichis owened by Filipino citizens and the composition of itsBoard of Directors being atleast 60% filipinos.

B. Supporting documents to be submitted with the Application: 1. In case of single proprietorship,a business name certificate and all amendments thereto: incase of partnership or corporations, a certified true copy of the articles of partnership or incorporation and its by-laws and amendments thereto. Duy registered with the Securities and Exchange commission.

2. Complete lists of executive officers and employees, tour guides and travel representatives, if any,indicating therein their nationality, address and experience including names of establishments previously or currently affiliated with position and length of service .following: 1.In the case of manager-proof that he has atleast 3 yrs managerial experience in tour operations or ahsearned adegree in BST or has successfully completed a tour operators course.

b. Proof that at least 2 of the permanent staff have at least 2years experience in tour operators. 3. For alien officers and employees, valid visa from the Bureau of Immigration and the proper permit from the Department of Labor and Employment. 4. contract oflease or contract tolease theofficespace ,or sworn statement by the lessor that said agency is a lessee. 5. Mayors permit/ municipal license.

Accreditation Fee- after compliance with all the requirementsunder these rulesa certificate of accreditation shall be issued to the applicant upon payment of an accreditation fee of P1,100 per annum for main office and P550 for each branch. Validity of Accreditation- thecertificate ofaccreditation shall be valid for a period of one yr from the date of issuance thereof.