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BOGAZICI UNIVERSITY SCHOOL OF APPLIED DISCIPLINES TOURISM ADMINISTRATION INTERNSHIP THESIS

Student: Nee Roman Internship Organization : Setur Servis Turistik A.. Advisor : Duygu Salman ztrk

CONTENTS

Preface..1 Introduction..2 Incoming Department.......4 1.1. Corporate Business........5 1.2. Sa / Ugm / Gta Business....6 1.3. Ko Family & Private Groups Business....7 Setur Incoming Department SWOT Analysis......8 Evaluation...11 References...13 Appendix Chart 1.14 Chart 2.15 Table 1.16

PREFACE
This thesis is written to provide information about SETUR and its incoming department. The author, who interned at the incoming department of the travel agency, aims to compare her theoretical information with her internship experience.

Thanks to MURAT ABAMOR (Incoming Deparment Director ), SABR GREN (Incoming Department Supervisor), BEYZA KUTUN (Internship Advisor) for their support.

INTRODUCTION
SETUR SERVS TURSTK A.. Setur was founded by Ko Holding in 1964, upon the enactment of a legislation, which enabled duty free services to be practiced in Turkey. While Setur Servis Turistik A.., was only a duty free service provider initially, later, in early 1970s it became the Turkish agent of Diners Fugazy Travel, founded by Diners Club and thus, took its first step into the tourism sector. Mid 1970s its name was changed to Setur World Travel. By the end of the 1970s, the company became "Setur Seyahat Acentesi" and tourism activities were accelerated. Today, domestic and foreign tour operations; IATA ticketing; congress and seminar organisations and other local services make up the base of the tourism services Setur provides. Also Setur is the authorised retail agent of The Cruise Line, Costa Cruise and Orient Express products in Turkey. The company has acquired BookinTurkey.com, the biggest on-line tourism portal in Turkey, in 2003 and has started expanding on the Internet sector as well.

Setur, with its many agencies providing tourism services all over Turkey, with almost 100 retail and online agents, with duty free shops and with over 560 employees.

INCOMING DEPARTMENT
Incoming department was established in 1970s. It works under the control of the incoming and outgoing operations which directly depend on GM/ Tourism. It organises private and business meetings, tour programs, flight tickets and daily excursions of individuals and/or groups who come from abroad, with experienced and professional guides.

Setur also serves the customers of the most important tour operators of U.S.A, Europe and Far East in Turkey.

Seturs incoming department works with Gullivers Travel Associates (GTA) which is one of the world's leading wholesalers of hotels and SA Tours which is one of the largest and most renowned travel and tour operators in Singapore. The deparment has three employees supervised by one manager. (Chart 2) Every employee has different job categories. These can be listed as Corporate Business, SA / UGM / GTA Business and Ko Family Business.

1.1.Corporate Business: With the advances in information technology, Setur offers the biggest online tourism portal which ables corporate firms to make their own reservations. Today many of the companies have meetings and trainings. This means they spend big chunks of money and time to plan for these areas. Bookingturkey system provides user friendly menus and an easy reservation program. Corporate firms are able to see room rates at hotels. Mostly the HR or corporate communication departments use this program and they make the reservation for their employees and wait for confirmation which is done by Setur. The incoming departments staff, sees this reservation demand, checks the hotel, arranges transportation and confirms the reservation.

1.2.SA / UGM / GTA Business : Sinoamerica (SA) is the largest tour operator in Singapore. Uniglobal Exotic is one of regions leading wholesale travel operators specializes in the Middle East, North Africa, East Europe, Russia and CIS region. Gullivers Travel Associates GTA offers the largest selection of hotel accommodation and local services at highly competitive prices. This is available to the travel industry via the company's unique Web-based

reservations system. Setur works with this three different tour operators and the Department Manager prepares different quotations for every tour group. (Table 1) . Depending on the annual agreements with hotels, he determines the rates for the group size and decides the profit margin. When the quotation is done, the responsible staff begins to search

appropriate accommodation and transportation facilities. He/she finds the hotel, hires the guide and bus in accordance with the quotation. Then the tour program will be ready to start.

1.3.Ko Family & Private Groups Business

Koc Holding companies and members of the Koc family are also SETUR's primary clients. All Koc Holding companies arrange their

employees' official business trips through SETUR. Additionaly, the Koc family uses SETUR for their personal travels. Also any travel and lesiure activities such as yacht tours, accomodating overseas guests of the family are also being done through SETUR.

SETUR INCOMING DEPARTMENTS SWOT ANALYSIS


STRENGTHS
As a subsidiary of Ko Holding, SETUR has a strong and reliable organizational structure. Contrary to short lived travel agencies in a volatile incoming market SETURs incoming department exists for a long time. SETUR gives priority to Far East countries and aims to be in top five travel agencies doing business in that market. SETUR has established a strong and long term relationship with its tour operator Gullivers Travel Associates (GTA). SETUR has maintained a sustainable and reliable working environment with its suppliers. The technological infrastructure between SETUR and GTA is above world standards. SETUR has a worldwide sales network.

WEAKNESSESS
Corporate laws create extra legal burden on SETUR and these legal responsibilities affects its competitiveness adversely. SETUR depends on only one tour operator. SETUR focuses only on Far East market. As per the exclusivity agreement signed with GTA, marketing activities are being carried by only this operator for SETUR. A heavier corporate structure slows down SETURs operations and responsiveness to the changing conditions. SETUR has higher operating expenses compare to its competitors.

OPPORTUNITIES
The partnership between SETURs tour operator GTA and the biggest tourism group CENDANT will create new markets and new opportunities for the company. Cheap ticket prices and the increased number of charter firms declaring Turkey as a destination country will bring new business opportunities for SETUR.

SETUR will take advantage of new trends in tourism as the industry moves away from group operations to online sales and individual businesses.

THREATS

Due to national political and economical conditions, brand name in the tourism industry.

Turkey still is not a

Regional political uncertainties adversely affect Turkeys

tourism potential. Travelers nowadays prefer shorter and regional

destinations, rather than faraway places.

EVALUATION
As an intern, I have worked for the incoming department of Setur Travel Agency. During my internship, I analyzed companys hr department, and work flow of the incoming department.

HR department does not perform well. Their recruitment process based on nepotism and this creates a distributing work environment. Every employee is doubtful about their career pathway. From their point of view, every new staff can be a threat for their job. They are not helpful and friendly to new comers and most of them are scared of loosing their jobs. It is really difficult to get used to work in this office environment. HR department does not offer training programs , coaching or social benefits to employee. It is very common to face with mobbing cases. For instance, I have seen that high school interns have exposed to work place terror. One of them injured by a worker in the elevator. HR department did not care, there was no warning. Also in the company workers are motivated by impressive work titles. But there is no difference in terms of their salaries. The other interesting thing is that the sales departments salaries do not depend on premiums.

The organizational structure is flat. There is few or no levels of intervening management between staff and managers. Generally staffs are directly involved in decision making process rather than supervised by many layers of management.

The incoming department is the kitchen of tourism. All products are ready to combine for incoming tour groups. Tour programs are prepared by incoming staff depending on the culture and nationality of the tourist group. The hotels, restaurants and guides are chosen carefully for the incoming group. They organize everything in the office and do not see anything. When the tourism product is ready to consume, nobody sees the consumer behavior in incoming department.

REFERENCES
www.setur.com

CHART 1: ORGANIZATIONAL CHART BOARD OF DIRECTORS GENERAL MANAGER

VICE GM / FINANCIAL
Dir. General Accounting

VICE GM / DUTY FREE


Dir. Group Marketing

VICE GM / TOURISM
Dir. Business Development
Dir.Tourism product develoment and purchasing Coor. Sales & Marketing and Corporate Com.
Dir. Human Resources

Dir. Budget Planning and Finance

Dir. Regional Sales

Dir. Information Technology

Dir. Internal Audit Dir. Ticket Sales & Call Center Dir. Incoming and Outgoing Operations Dir. Incoming Department Dir. UK Visa Dir. Visa Dir. Tour Sales Dir. Convention & Meetings Dir. BookingTurkey

CHART 2 : Departmental Organization Chart

Department Manager

Supervisor

Corporate Business

Sa / UGM / GTA Business

Ko Family Business