Travel Agency and Tour

Operations
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.
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;
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.
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
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.
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.
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.
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.
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.
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.
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
Tour Operator and Travel
Agency
TRAVEL AGENTS TOUR OPERATOR
Retailers Wholesalers. Deals with travel
agents (retailers)

Acts as consultants or advisers Acts as middlemen between the

to the traveller. suppliers and the vendors.

Revenues are fixed and pre Have variable but limited

determined by suppliers revenues income and profit
margins
Charges fees for documentation Sells optional products and
and ancillary services services and makes use of
deposits
The Relationship of Travel Agency,
Tour Operators & Customers
Airlines Hotels Transportation

Travel Agency

Travel Agents Travel Agents

Customer
Travel Agency Table of Organization

MANAGER

SECRETARY

ADMINISTRATION OPERATIONS SALES

Travel Account
Bookkeeper
Counsellor Executive

Cashier Reservations Liaison

& Ticketing Officer
Utility
Personnel
Administration
Deals with the day-to-day management
activities of the company .
•Has 4 functions:
General Administration
Personnel
Accounting
Finance
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
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.
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
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
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
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.
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, email or visiting agency in person.
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.
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
 Setting up a Travel Management
Company / Travel Agency
•SOLE OR SINGLE PROPRIETORSHIP

1. Bureau of Domestic Trade Registration

a. Trade Name Registration
b. Bank Certificate for the Company’s
Capitalization
c. Tax Identification Number of the owner.
 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
 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
 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
 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
 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
 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
 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
 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
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
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
Travel Agency Office Requirements
Office shall be adequately furnished and
properly equipped for the conduct of business.

Equipments checklist:
Air Conditioning
Units/Electric Fans
Tables and Chairs
Filing Cabinet
Sitting Area and Lounge
Counter
Brochure Rack
Telephone and Fax
Machine
Computers and Printers
Global Distribution System
(GDS) or Computer
Reservation System (CRS)
Fire Extinguishers

Source: OFFICE OF TOURISM STANDARDS AND REGULATION

ACCREDITATION DIVISION
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.
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).
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.
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.
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
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.
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.
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.
Reasons Tours are been sold
Tour Operator- sells their tours to the general public.

Tour Operator

Inbound Operator Outbound Operator

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

The Red Cover for

Government Officials
Characteristics of Passport
1. It is a distinguish
marks
2. Incorporated
hologram seals
3. Made up of
special paper
4. With unique
serial number
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.
The Visa’s following terms:
1. Purpose of Journey
2. Maximum length of stay
3. Period of validity for visa
Types of Visa
1. Tourist Visa
2. Working / Business Visa
3. Student Visa
4. Transit Visa
5. Minor Visa
6. Seaman Visa
Travel Documents:
Tourist Cards
Disembarkation Card- filled
out in advance of arrival.

Embarkation Card- filled out

before the departure and
surrendered in immigration.
Travel Documents:
Ticket
A contract carriage.

Airline Ticket

A Airline Reporting Corporation (ARC)

document either handwritten or computer
generated valid transportation by air.
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
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.
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.
Flight Class

F – First Class

C- Business Class

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