TECHNICAL ASPECT

I. Introduction

This aspect discusses the necessary calculations for the smooth operation of the

travel agency to be established. IT also determines the necessary machinery,

equipment, and supplies needed in the operation of the business. The selection of

proper location as well as floor layout will be discussed in this aspect.

The estimation of the project cost of the business will be include and as well as

the quantity and quality of labor to be hired.

Furthermore, this aspect will help us to evaluate our resources effectively. It will

enable us to maximize the use of our assets and capitals to generate the highest

possible income for the continuous capital build up to be used in rendering services.

II. Objectives of the Study

The objectives of this portion of the feasibility study are stated below:

1. To define the service offered to the public and its significance

2. To determine the estimated cost of materials, equipment, supplies, and

other pre-operating expenses

3. To show the plant location and its layout

4. To determine the exact location of the plant

5. To discuss the procedure in availing the services offered by the agency

III. Major Assumptions in the Study

 Ticket selling will be much faster, effective, and efficient because of a new

software program being used.

 Even without their personal appearance, prospective clients can acquire our

services through our website wherein information and schedule of flights and

certain order forms will be include and presented.

 Profit will rise when future advertisement and daily operations are followed and

done carefully.

 When it comes to issuing passports, clients can already claim their passport

after 5-10 working days.

 The proposed business will have 12 months of preparation before the start of

the operation.

 Prices of certain machineries and equipment will soon increase in value.

 The location of the site is clearly visible from the road and pretty accessible for

prospective clients.

 For the clients’ and employees’ health, proper waste disposal should be

observed.

IV. Product

Service is the main product of our business Safe and Sound Travel Agency will

cater the needs of both corporate and other leisure travellers. We handle international

and domestic ticketing, visa assistance, and passport documentation.

 The focus of our business, SSafe and Sound Travel Agency, is on ticketing.

Tickets are not considered as prouct of the company since the airline companies, in

which the agency works as an intermediary only, issue them. Like any other travel

agency, we will act as a middleman and only takes commission and mark ups from all

services we offer. For example, our service regarding reservations for flight whether it is

international or domestic is done through Computerized Reservation System (CRS).

V. Operations

Safe & Sound Travel Agency is focused primarily on ticketing. First, in order to be

able to issue those tickets the business must submit a letter of application to the airline

companies that they are dealing with, this is done through fax machine. If the airline

companies sent a letter of acceptance, the business can now be able to get the tickets

that will be issued depending on the reservation and the quantity of customers, which

can be determined from past sales.

Technology makes things easier and faster. Instead of going to an airline

company to apply for an agent, the business will just have to fax it. Through that,

obviously saves time, effort and money. For reservation purposes, rather than going to

the agency, the client can transact trough phones or the use of the computer which is

more convenient and also consumes lesser time though going directly to the agency is

much more formal. Technology is not limited to machines and equipment only. Public

mass transportation, such as Light Rail Transit also, helps especially on processing and

rendering services.
Automated Reservation

In the field of automation, the airlines have developed computer software system

that provides instant information of flights schedules, class for service and pricing in

addition to hotel accommodations and other services.

These software systems are commonly known as Computerized Reservation

System (CRS). A CRS enables the travel agent who is on-line or connected to the

system, to access all the information through a computer reservation terminal and

allows the agent make remote reservations on airlines by filling in the correct

information in the designated format for a specific airline or supplier of service

appearing in the menu of the software package.

Operational Procedures

A travel agency must be well acquainted with the operational procedures for

domestic ticket selling, international ticket selling, and passport processing.

Domestic ticket selling – the operational procedures for domestic ticket selling

are as follows:

1. Client fills out reservation slip: his name, destination, birth date of child or

infant or senior citizen, data of flights, telephone number, preferred time,

etc.

2. Reservation officers look for the available flight through the use of CRS.

Clients choose his desirable time of flight and give price of ticket.

3. If client agrees to purchase the ticket reservation officer processes ticket.

4. Ticket is given to client after giving full payment.

 International ticket selling – the procedures for international ticket selling are as

follow:

1. Customers fill out reservation slip.

2. Reservation officer looks for available date and time of flight and the

Airline’s routing in that destination.

3. Reservation officer calls the consolidated travel agency to ask the price of

the ticket. After the necessary adjustment of price, the reservation officer

tells it to the client.

4. If the client agrees, the reservation officer reserves his name in the CRS.

The reservation having confirmed, the client presents the necessary legal

requirements plus his payment.

5. The reservation officer tells the client the date and time he will get his

ticket.

Passporting – the following are the procedures for passporting:

1. The client fills out the application form attaching to it 4 pieces of his

passport picture and then pays the processing fee.

2. The client’s personal appearance at the Department of Foreign Affairs

(DFA) is scheduled.

3. The client will claim his passport within 8-15 working days after his

appearance at the DFA.

 International and Domestic package tour and Hotel accommodation – the

following are the procedures for international and domestic package tour and hotel

accommodation:

1. The client chooses the desired place to go in the list tourist spots accepting

reservation.

2. After the client has chosen the desired place, the reservation officers compute

the package tour and the hotel accommodation, including airplane. Then the

reservation officer faxes the purchase order to the point of destination of the

client.

3. The client receives the airplane ticket and the reservation order after his

payment.

VI. Production Schedule

Time Table

Stages involve in establishing a travel agency would include project planning,

business registration, canvassing of machineries and equipment, engineering or

renovating structure and modification of the building, delivery and installation of

machineries, hiring of employees, selecting suppliers, trial run, promotion and finally the

start of the normal operation.

For Safe & Sound Travel Agency, the researchers assumed 12 months’ time

span for the business to be fully prepared for the public. The planning of the project will

be started on January and assumed to be finish on December. According to travel

 agencies, November to January and April to May are their peak season because there

are lots of travellers who come in and out of the country during this period.

Chart 3.1 Gantt Chart

January

February

March

April

May

June

July

August

September

October

November

December
Planning

Business Registration

Canvassing

Engineering Structure

Delivery and Installation

Hiring of Employees and Selecting of
Suppliers
Trial Run and Promotion
Chart 3.1 shows the production schedule before the Safe & Sound Travel

Agency starts its normal operation.

1. Project Planning (January 1 – March 31)

Conducting surveys, interpretation of data gathered, finding best site for business

and what products to produce.

2. Business Registration (April 1 – May 31)

Completion and submission of all necessary requirements needed to get a

business license and permit of the firm.

3. Canvassing (June 1 – June 30)

Canvassing of machineries and equipment needed.

 4. Engineering Structure (July 1 – August 31)

Renovating the business location and building.

5. Delivery and Installation of Machineries, Equipment, and Furniture and

Fixtures (September 1 – September 30)

6. Hiring of Employees and Selecting of Suppliers (October 1 – October 31)

7. Trial Run and Promotion (November 1 – December 31)

8. Start Of Operation (January 1)

VII. Office Equipment

Machinery and Equipment

Machinery and
Image Qty Unit Price Total Price
Equipment

Computer 3 P 24,500.00 P 73,500.00

Printer 1 7,299.00 7,299.00

 Telephone 2 995.00 1,990.00

Fax Machine 1 4,950.00 4,950.00

Television 1 11,150.00 11,150.00

Air Conditioner 2 1,3798.00 27,596.00

Water
1 1,698.00 1,698.00
Dispenser
 Refrigerator 1 7,695.00 7,695.00

Mini Vault 1 1,499.00 1,499.00

Emergency
2 999.95 1,999.90
Light

Total 16 P 84,583.95 P 139,376.90

Sources: Abenson Appliances, SM Appliance Center

Safe & Sound Travel Agency will purchase a motor vehicle to lessen the expense

on transportation. It will be used when a respective agent goes to agencies like

Department of Foreign Affairs and other establishments to render the services we are

offering to our customers. The estimated cost of the motor vehicle is P 50,000.00 and

has an estimated useful life of 10 years.

Furniture and Fixtures

Furniture and Qty

Image Unit Price Total Price
Fixtures .

Table 2 P 2,250.00 P 4,500.00

Clerical Chair 4 789.75 3,159.00

Customers’
3 899.00 2,697.00
chair

Bench 1 7,348.00 7,348.00

Filing Cabinet 2 2,998.00 5,996.00

Total 12 P 21,274.75 P 23,700.00

Office Supplies

Supplies Quantity Price Description

Used for printing and business
Bond Paper 2 reams P 357.00
correspondents
Folder 12 46.25 Used to keep the files in order
This is a white 14x19 envelope
with the name and logo of the
Envelope 20 100.00 company printed on the upper left
corner. This is where the
purchased ticket is placed.
Bond paper with company
Bond Paper
2 reams 450.00 letterhead used for making
with Letterhead
business letters
Used to fasten paper and other
Stapler 2 169.50
materials together
Adhesive Tape
4 280.00 Used to hold adhesive tape
Holder
Adhesive Tape 4 80.00 For sealing purposes
Paper Clips 1 box 75.00 Used for filing papers
Log Book 2 128.00 Used for recording transactions.
 For writing purposes to fill up
Ballpen 8 150.00 application form, reservation slip,
signing and recording.
For writing purposes to fill up
Pencil 8 60.00 application form, reservation slip,
signing and recording
Stamp pad 2 150.00 Used for finger printing.
For writing purposes to fill up
Marker 3 350.00 application form, reservation slip,
signing and recording
Used as an evidence of
Official Receipt 3 400.00
transaction
Where waste like papers and
Garbage Can 5 500.00
plastic are to be placed
Fluorescent
6 3299.70 Used for lighting the place
Lamp
Used for making a pleasant
Decorations 2 1500.00
working place
Total P 8095.45
Source: National Bookstore
VIII. Office Location

The proponents of the project decided to strategically place the agency General

Romulo Street, Araneta Center, Cubao, Quezon City, Philippines. We chose this place

because Cubao is known for its commercial area and at its heart is the well-known

Araneta Center. The Araneta Center is already a major transport hub, with almost a

million of people passing by the area every day. We see it as an advantage that the

building itself is situated at a known avenue where it is also identified as one of the

financial and business core in the Metropolitan area.

Figure 3.1 Location Map

IX. Office Layout

Safe and Sound Travel Agency will be renting a commercial space near our

target market along Cubao, Quezon City. It will subject to renovation to be appropriate

in the management standard operation.

 The business shall occupy an area of 54 sq. meters. The project shall have only

one office unit that should be lease. The biggest area is given to the receiving area

because it is where our clients make their reservation or transact other business. They

must be able to sit in a relaxed manner while waiting for their turn to transact business

with us. The other area is allocated for operations like accounting affairs, adjacent to

which is the manager’s office.

Figure 3.2 Safe & Sound Travel Agency’s Interior Front View Design
 Figure 3.3 Safe & Sound Travel Agency’s Floor Plan

X. Company Logo

Our company logo is made up of:

 A circle bordering the logo itself that represents security and assurance for the
customers, which is the primary reason why we come up with the company
name;
 A figure inside the circle which represents the primary service being rendered by
the firm, and;
  Earth colors to inform prospective customers that the company is offering
services for local and international travels.

XI. Buildings and Facilities

Our office is located on the ground floor Manila COD I.T. Building General

Romulo Street Araneta Center, Cubao, Quezon City, Philippines.

Figure 3.4 Front View of Office Building

XII. Utilities

Our travel agency office is equipped with electricity and machine needed for

transacting business. Meralco will provide supply for the electricity, PLDT for the

telecommunication services, and Maynilad for water supply.

XIII. Waste Disposal

Each and every one of us in the business is responsible for the cleanliness and

orderliness of our office as Filipino citizens. It is a duty incumbent upon us to be

disciplined in the proper disposal of garbage.

Since one of the objectives of our business is to promote tourism, we have to set

an image of cleanliness and environment consciousness, so that our clients will believe

that the Philippines is a clean and beautiful country to visit and be in.
 It will be an office policy to recycle used paper and to dispose of old newspapers,

magazines and pamphlets. Old things will be recycled, sold or disposed. Garbage shall

be collected every day at a fix time.

We will see to it that every one of our employees has a health certificate, and that

our business has the necessary sanitary permits from the city government, which will

carry out a sanitary inspection of our office.

Everyone in the office must be healthy, and all our garbage will be disposed

properly.

Garbage truck passes and collects trashes along Ortigas Avenue twice a week

every Monday and Thursday about 8:00 in the morning. The janitor is responsible for

disposing the office garbage.

XIV. Labor Requirement

In an agency limited number of employees is needed. One of the best assets a

company must have is the competent employee that will run and operate the business.

In a travel agency, it is essential to hire clerks, with a good personal relationship since

the front-liners are the one facing the clients. It is vital for them to accommodating so

that the clients will keep coming back to our company.

We will also hire on-call employees. On-call employees are those who render

their service upon call. We will hire on-call computer technicians and electricians.

There will be also an on-call accountant who will visit twice a month to perform

his responsibility in the company.

 Also, we will hire the buildings janitor as our part-time utility man. He will clean

our office every other day after office hour.

The security guard of the Metrobank building where our office is located will also

serve as our guard.

Employees will be given proper orientation and direction regarding the

objective of the business and for the employee to know what to be done.

XV. Project Cost

Safe and Sound Travel Agency needs to fulfill necessary requirements for

business permit; to purchase office equipment and office supplies; to pay its utilities

expense; to advertise in order to be known by the public; to pay monthly rentals; and to

pay taxes and licenses before it start the operation. The company should allocate

certain amount for these expenditures.