Tour and Travel

MANAGEMENT LEARNING MODULE

by Jammie Fritz C. Castillo | Instructor

PART 1
2021
 THE PHILIPPINE TOURISM
01 INDUSTRY

TOUR
DNA
TRAVEL TRADE -
02
HISTORICAL
PERSPECTIVES

TRAVEL
WHOLESALE AND RETAIL
03 TRAVEL AGENCY
BUSINESS
LINKAGES AND
04 INTEGRATION IN TRAVEL

MANAGEMENT 05
TRADE

FUNCTIONS OF TRAVEL
AGENCY AND TOUR
OPERATION

SETTING UP A TRAVEL
06 AGENCY AND TOUR
OPERATION

SOURCES OF INCOME IN
07 TRAVEL AGENCY AND TOUR
OPERATION BUSINESS
08 TRAVEL DOCUMENTATION

CONCEPTS OF ITINERARY
09 PLANNING

RESOURCES FOR ITINERARY

10 PLANNING

TOUR FORMULATION AND

This course studies the role of the Travel Agency 11 DESIGNING PROCESS
and the Tour Operator in the Tourism Industry,
leading to a better understanding of the trade and PLANNING AND
its internal workings, the role of each component 12
in offering cost effective and good “value for
COMPONENTS OF PACKAGE
money” products for its clients. TOUR FOR FIT & GIT

It also includes topics such as tour products and 13 PACKAGE TOUR COSTING
its efficient development and marketing as well as
a travel agency and tour operator’s organizations COMPONENTS OF TOUR
and functions. In addition to lecture classes, the 14 COSTING AND PREPARATION
students are exposed to skills required in in the OF COST SHEET
travel trade such as interpersonal and
communication skills, terminologies, TOUR PRICING AND PRICING
documentation, procedures and systems used. 15 STRATEGIES
 THE
MODULE ONE

PHILIPPINE
TOURISM
INDUSTRY
Learning Objective:
Topics:
After reading the module, the students are expected to:
The Philippine Tourism Industry Understand the need for association in travel agency
The Government Sector business
Department of Tourism Explain various roles of travel trade associations
Different Government Agencies Understand different duties and responsibilities of
The Private Sector national, regional and international travel
associations
Realize the presence of national and international
bodies in solving many key problems

The Tourism Industry is composed of industries and entities, both public and private, involved in the planning, development,
marketing, sales, operation and evaluation of destinations, products and services that cater to the needs of the travellers, both
foreign and domestic. The common link is to provide services to travellers.

The business of travel agency has undergone significant changes in the recent years. It has become a huge global business that
largely contributes to the international trade. As such, tourist arrivals to a destination or a country are largely determined by the
initiatives of tour operators through their organized package tours. Tour operation business is governed by government policies
and programmes. This business involves handling for foreign tourists, receipt of foreign currency, processing of travel documents
and operating in protected areas, including restricted travel areas.

Thus, there is a need for travel trade associations to represent the interests and issues to the government or any international
tourism or allied bodies. It is a complex business and tour operators shall have to give something back to community or
destinations. Smile on faces of local community and cleanliness at tourism destinations can change the mind set of tour operators.

Tour and Travel Management |   JFCC 2021

 I. 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 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;
Tour and Travel Management |   01
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.
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 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.
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 II. THE
GOVERNMENT
SECTOR

The government sector is responsible for the

formulation of tourism policies in the tourism
industry. It provides guidelines for the development
of destinations, and regulates the industry, in
collaboration with the government agencies. It is
Subdivided into the national government entities,
and the local government units.

There are Four (4) government agencies that are

directly involved in the tourism industry: the
Department of Tourism (DOT), the Tourism DEPARTMENT OF TOURISM ORGANIZATIONAL STRUCTURE

Infrastructure and Enterprise Zone Authority (TIEZA),

the Philippine Convention & Visitors Corporation
(PCVC), and municipal, city and provincial Local
Government Units (LGUs).

DEPARTMENT OF TOURISM

DOT is the national government's

organization overseeing the country's
tourism industry. It is established by virtue of
Presidential Decree No 189 in 1973 and
reorganized by Executive Order No. 120 in
accordance with Article II, Section 1 (a) and
Article III of the Freedom Constitution of
DEPARTMENT OF TOURISM ORGANIZATIONAL STRUCTURE
1986.

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 NATIONAL PARKS AND DEVELOPMENT
COMMITTEE
NPDC is created to undertake development of
new parks, upgrade and maintain park facilities,
develop and operate cultural and educational
programs, and facilitate private sector
participation in appropriate aspects of parks
development and maintenance.
THE PHILIPPINE CONVENTION AND VISITORS
CORPORATION (PCVC)
PCVC is the Marketing arm of the Department of
Tourism. Its main task is to promote the
Philippines as a tourist and convention and
incentive travel destination.
TOURISM INFRASTRUCTURE AND ENTERPRISE
ZONE AUTHORITY (TIEZA)
TIEZA acts as the implementing arm of the
Department of Tourism in the development and
supervision of tourism facilities and infrastructure.
NAYONG PILIPINO FOUNDATION
The purpose of Nayong Filipino Foundation is to
faithfully represent the various cultures, arts and
industries of the Filipino people; it is the replica of
the various regions in the Philippines.
INTRAMUROS ADMINISTRATION
The Intramuros Administration is mandated to
undertake the restoration, development,
preservation and promotion of the Walled City as
a priceless heritage and historical landmark of the
Philippines.
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THE LOCAL GOVERNMENT UNITS
LGU is empowered to regulate the establishment,
operation and maintenance of cafes, restaurants,
beerhouses, hotels, motels, inns, pension houses,
lodging houses, and other similar establishments,
including tourist guides and transports.
OTHER NATIONAL GOVERNMENT UNITS
These are Government offices that indirectly
participate in the tourism industry in the course of
day-to-day activities: Department of
Transportation and Communications (DOTC), Civil
Aeronautics Board (CAB), Air Transportation
Office (ATO), Maritime Industry Authority
(MARINA), the Philippine Ports Authority (PPA),
Land Transportation Franchise and Regulatory
Board (LTFRB), Department of Foreign Affairs
(DFA), Department of Public Works and Highways
(DPWH), Department of Finance, Department of
Justice (DOJ), Department of Environment and
Natural Resource (DENR), Local Government
Units (LGU) and the Philippine National police
(PNP), Department of Labor and Employment
(DOLE).
DEPARTMENT OF FOREIGN AFFAIRS
The Philippine agency responsible for the issuance
of passport to its citizens, develops and maintains
friendly relations with other countries.
DEPARTMENT OF TRADE AND INDUSTRY
The Philippine government agency charged with
creating a business-friendly environment that is
conducive to the growth of enterprises and
supportive of fair and robust trade in goods and
services, both within and outside the Philippines.
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 DEPARTMENT OF HEALTH

The Philippine government agency responsible for ensuring

access to basic public health services to all Filipinos through
the provision of quality health care and regulation of
providers of health goods and services.

DEPARTMENT OF TRANSPORTATION AND

COMMUNICATIONS (DOTC)

The Philippine agency responsible for the regulation and

supervision of the transportation and communications
industries.

DEPARTMENT OF FINANCE

The Philippine agency responsible for revenues collections

through the Bureau of internal revenue and Bureau of
Customs.

DEPARTMENT OF JUSTICE

The Philippine agency under which the Bureau of

Immigration that regulates the entry and exit of foreign
nationals.

DEPT. OF ENVIRONMENT AND NATURAL RESOURCE

(DENR)

The Philippine agency that oversees the protection of the

natural environment.

DEPARTMENT OF LABOR AND EMPLOYMENT

The Philippine government agency responsible for the

protection of the employee's rights and welfare.

DEPARTMENT OF INTERIOR AND LOCAL

GOVERNMENT

The Department responsible for the promotion of peace

and order, to ensure public safety, strengthen capability of
local government units through active people participation
and a professionalized corps of civil servants which
supervises the local Government Units and the Philippine
National Police.

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 III. THE PRIVATE SECTOR
FIVE (5) PRINCIPAL
INDUSTRIES DIRECTLY
INVOLVED IN TOURISM:
1. The transportation industry (air, sea,
land)
2. The Hospitality Industry (hotels,
resorts, inns, motels, lodging/pension
houses, apartment-hotels)
3. The Activities and Attractions Industry
or entertainment industry (restaurants,
discos, museums, theaters, theme
parks, adventure clubs, dive shops)
4. The Travel Trade (travel agents, tour
operators and tour guides)
5. Other private sector entities
TRANSPORTATION INDUSTRY
The Philippine government agency
responsible for ensuring access to basic
public health services to all Filipinos
through the provision of quality health
care and regulation of providers of
health goods and services.
ACTIVITIES AND ATTRACTIONS INDUSTRY
It is also referred to as the entertainment, recreation or leisure sector
which is best exemplified by theme parks, shopping malls, night clubs,
restaurants and the like. It comprises all sites, destinations and
organizations that offer attractions and provide entertainment to the
travelers. These also include museums, cultural villages, fast food
centers, disco houses, experiences, events and the like.
TRAVEL TRADE
It is made up of travel agents, tour operators, also referred to as
intermediaries or middle men, and the tour guides.
Travel Guide - An individual who, either as an employee or an
affiliate of a licensed tour operator, accompanies tourists, both
foreign and domestic, for a fee, commission or any other form of
lawful remuneration on local sightseeing excursion to provide
pertinent commentaries, and look after the general well-being of
the travelers.

HOSPITALITY INDUSTRY

The Industry includes all

establishments that provide board and
lodging to people. These are the highly
sophisticated seven to five-star hotels
in the urban centers of the country, or
boarding houses in the remote OTHER PRIVATE SECTOR
locations. It is made up of all involved
in providing board and lodging to The members of the media
travelers regardless of location in city Print, broadcast, audio-visual or electronic
hotels, seaside resorts or home-stays, Plays an important role in the tourism industry as they perform
and category, including amenities and the task of “image making”, in addition to the marketing
facilities available. aspects of media.
Educational and training institutions.

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 REFERENCES

Chand, M., 2000, MANAGEMENT OF TRAVEL AGENCY AND TOUR OPERATION, Anmol Publications
Pvt. Ltd, New Delhi.
Chudhary, M., 2010, TOURISM MARKETING, First Edition, Oxford University Press, New Delhi.
Negi, J., 2008, TRAVEL AGENCY AND TOUR OPERATION – CONCEPTS AND PRINCIPLES, Kanishka
Publishers’, Distributors, New Delhi.
Swain, S.K. & Mishra, J.M.(2012). TOURISM PRINCIPLES & PRACTICES, Oxford University Press, New
Delhi
http://businessdayonline.com/2014/01/travel-agents-operating-beyond-the-ticketsales-regime/
http://www.investopedia.com/terms/b/btob.asp
http://www.hospitalitynet.org/news/4053884.html
http://www.balidiscovery.com/other/code.asp
http://www.stepuptravel.org/downloads/library/e_tourism_rj.pdf
http://www.coxandkings.com/
http://www.smallbusiness.wa.gov.au/marketing-promotion-strategy/
http://www.sotc.in/
http://www.tcindia.com/
http://www.thomascook.in/tcportal/px/tcportal/home.do
http://www.ehow.com/info_7831294_duties-uftaa.html#ixzz2jN7mheqK
http://www.rbcsgroup.com/ihctm/IATA.htm
http://www.tradewinginstitute.com/courses/iata1.htm

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