TM ELEC 6

VIRTUAL CLASS
1st Sem AY 2022-2023
 Travel Agency
Management & Operations

Mia Cheryl E. Casiracan

Northwest Samar State University
MODULE 1
Travel Agency
BACKGROUND:
A Review
Travel Agency And Tour Operators
are good contributors in the tourism industry and at
the same time a great help for travelers.

They are the people behind providing convenience

and affordability to their customers, assuring they
will experience a one-of-a-kind adventure while
rejuvenating.
Difference between
TRAVEL AGENCIES and TOUR OPERATORS

Tour Operator – is a company that buys certain services

from different companies and forms a single tourist
product out of them using its own pricing system.

A tour operator may be a supplier (might be own hotels

or car rentals or both) and allow to use their own
inventory or their supplying partner inventories for a fee.
Difference between
TRAVEL AGENCIES and TOUR OPERATORS

Travel Agency – acts like an independent reseller. Its

profit is the commission for the sale of the operator’s
tours to customers. That is why the agent’s price is
usually higher, although there are moments when
agents deliberately understate their prices.

A travel agency is only a distributor, and typically rarely

own any travel assets (such as car rentals or hotels).
TYPES OF TRAVEL AGENCIES

Retail Travel Agency – sells tourist products directly to

the public on behalf of the product suppliers and in
return gets commission. It performs the following
functions:
quotes fares and rates
make reservations
arrange travel tickets and accommodation
arrange travel insurance
foreign currency
documentation
accept payments
Wholesale Travel Agency – are specialized in organizing
package tours, which are marketed to the customers or
tourists through the network of a retail travel agency or
directly to the prospective clients.
Functions of a Travel Agency:

1. It provides travel-related information

2. Planning Tour Itineraries
3. Connection with Tourism Suppliers
4. Tour Costing
5. Ticketing
6. Documentation
7. Reservation/Booking
TYPES OF TOUR OPERATORS

Inbound Tour Operators– these are also known as incoming

TOs. Technically, the operators who receive guests, clients,
tourists, and handle arrangements in the host country are
called inbound TO.

Outbound Tour Operators – tour operators s who promote to

foreign destinations, may be business tours or leisure tours.

Destination Management Companies/Ground Operators – they

are the handling agencies and their main function is to organize
tour arrangements for incoming tourists on behalf of overseas
operations.
Benefits of Travel Agency and Tour Operators

1. Knowledge and Experience

2. Buying Power
3. Value
4. Safety and Trust
5. convenience
 Lesson 1
_______________________
Setting Up a Travel Agency
 STEPS
on Setting up
your own
Travel Agency
A Travel Management Company (TMC) is a
travel agent that fully manages the business
travel requirements delegated by an individual
company or organization to fundamentally
save clients both time and money.
It is known as a business travel agency or
corporate travel provider.
It can offer auxiliary services like aircraft
charter, airport lounges, parking and transfers,
hotel be requests, car hire, foreign exchange
group, hotel bill backs, insurance, leisure travel,
marine travel, meal requests, meet and greet
services, passport and visa processing, rail
tickets, roadshow services and venue sourcing.
Steps on How to Set Up a Travel Agency:
FIRST: Make your Business Plan

Type of Travel Agency

• Wholesaler TA
• Retail TA
Types of Tour Operators
• Outbound TO
• Inbound TO
• Domestic/Ground Operator
Resources of a Travel Agency
• IATA
• Non-IATA
• Air Ticketing
• Tour Operator
• Travel Agent
Choose your Target Market
• Corporate Tourists
• Leisure Tourists
• Pilgrimage
• Seafarers
• OFWs
Sales and Marketing Planning
• Marketing plans are about identifying
your target market and creating
strategies for reaching those
customers.

Financial Plan (3-year Financial Projection)

• A plan containing a person’s current
money situation and long-term
monetary goals and strategies to
achieve those goals.
SECOND: Find a Good Location

• which City or Town

• Type of Appointment
walk-in clients
regular clients)
THIRD: Know the Local Government
Ordinance or Law

• cost of taxes
• is there a moratorium on new travel
agency?
• requirements of LGU
FOURTH: Company Set-Up

• single/sole ownership
• partnership
• corporation
FIFTH: Preparation of Documentary Evidence
for set up of company

• Permits from LGU

• SEC if corporation
• reportorial requirements of different
agencies
SIXTH: Preparation of the physical set up of
the company

• contract of lease
• telephone lines
• office fixtures and furniture
• signboard, streamers
• letterhead, business cards, forms
SEVENTH: Recruitment of Company Staff

• organizational set up
• responsibilities of management and
the rank and file
EIGHT: Orientation of Company Staffs

• company handbook for every staff

• training and orientation
NINTH: Marketing the Company

• suppliers
• clients
 Lesson 2
_______________________
Organizational Structure of
Travel /Tour Company
The organization of a travel agency depends largely on the size and the type of
the business handled by it.

(Organizational Chart of a Travel Agency)

MANAGER

Secretary

OPERATIONS SALES ADMINISTRATION

Travel Counselor Account Executive Bookkeeper

Reservations &
Ticketing Cashier

Liaison Officer Utility Personnel

Departments and Members of the
Organization and its Roles

OPERATIONS
 Known to be of the travel agency business
 Engaged in the efficient and effective delivery
of the organization’ s services
Members under the Operations Department

1. Travel Counselor
 Provides all necessary information requested
by the prospective travelers
 Recommends products and services
 Monitors processing of travel docs and ensures
that they are all in order prior in releasing it to
clients
2. Reservations Officer
 Places or required reservations
 Follows up on reservations placed until
confirmed
 Looks for alternative suppliers in the same level
of service in case preferred supplier is not
available
 Monitors issuance of travel vouchers and
tickets
 Acts as back up for the ticketing officer
2. Ticketing Officer
 Correctly sources or calculates fares when the
need arises
 Issues air tickets manually or through the
automated ticketing system
 Correctly issues purchase orders in
accordance to clients itinerary
 Reissues tickets when required
 Acts as back up to the travel counselor
3. Liaison Officer
 Determines the requirements and other
documents needed for travel
 Checks the authenticity of all documents
submitted
 Checks all relevant support papers
 Ensures that documents filed are released on
time
 Arranges and coordinates appointments and
visits to various consulates and government
offices
Departments and Members of the
Organization and its Roles

ADMINISTRATION
 Deals with day-to-day management activities
of the company. It has four functions: general
administration, personnel, accounting and
finance.
Members of the Administration Department

1. Bookkeeper
 Recording transactions such as income and
outgoings and posting them to various
accounts
 Processing payments
 Conducting daily banking activities
 Producing various financial reports
 Reconciling reports to third-party records such
as bank statements
2. Cashier
 Manages transactions with customers using
cash registers
 Collects payments whether in cash or credit
 Issues receipts, refunds, change of tickets
3. Utility Personnel
 Maintains the upkeep of company facilities
 Repairs broken equipment
 Inspects finished projects
 Complies with state health and safety
requlations.
Departments and Members of the
Organization and its Roles

SALES AND MARKETING

 Prepares annual marketing plans
 Sets annual sales and develops strategic plans
 Participates in the preparation of the
organization’s budget
 Decides on negotiated rates and concessions
 Maintains an updated clients and prospective
clients and performs regular sales calls
 Lesson 3
_______________________
Accreditation and Certification
DOT Accreditation
A certification issued by the Department of
Tourism to a tourism enterprise that officially
recognizes it as having complied with the
minimum standards for the operation of tourism
facilities and services.
What is the difference between certified and
accredited?
Certification provides written assurance that a
person, product, or process conforms to specified
requirements and standards. Certification, also
like accreditation, is an attestation made by a
third party.
Accreditation is generally considered to be a
higher level of recognition than certification
Primary Tourism Enterprises

These are facilities and services directly

related to tourism. DOT-certified primary
tourism enterprises shall be periodically
required to obtain accreditation from DOT
to ensure the quality of its facilities and
services.
List of Primary Tourism Enterprises

Accommodation Establishments
Hotel
Resort
Apartment Hotel
Mabuhay Accommodation (tourist inns,
motels, pension houses, and bed and breakfast,
among others)
Homestay
Travel and Tour Services
Travel and Tour Agency
Travel Agency
Tour Operator
Online Travel Agency

Tourist Transport Operators

Tourist Land Transport Operator
Tourist Water Transport Operator
Tourist Air Transport Operator
Motorized Banca
Meetings, Incentives, Conventions and
Exhibitions (MICE)
MICE Organizer
MICE Facility/ Venue

Tourism Frontliner
Tour Guide

Adventure/ Sports and Ecotourism Facilities

Secondary Tourism Enterprises

These are facilities and services that may

be related to tourism. Accreditation shall
be voluntary for secondary tourism
enterprises that follows minimum DOT
standards.
List of Secondary Tourism Enterprises
Tourism-related Enterprises
Restaurant
Tourism Training Center
Target Shooting Range
Department Store/ Shopping Mall/ Tourist Shop/
Specialty Shop
Farm Tourism Camp
Gallery/ Museum
Tourism Entertainment Complex
Tourism Recreation Center
Zoos
Rest Area/ Restroom
Surfing Camp
Health and Wellness Services
Ambulatory Clinic
Spa
Tertiary Hospital

Tourism Frontliner
Tourism Trainer
Surfing Instructor
Safety Seal Certification Program
The DOT issues the Safety Seal for Accommodation
Establishments (Hotels, Resorts, Apartment Hotels,
and other Accredited Accommodation
Establishments), Travel and Tour Services, Meetings,
Incentives, Conferences & Events (MICE) Venues or
Facilities and Restaurants inside Hotels/Resorts.
What is a Safety Seal?

The Safety Seal is a voluntary certification issued by

government agencies, affirming that an
establishment has been found compliant with the
minimum public health standards set by the
government, including the adoption or integration of
the StaySafe.ph in contact tracing applications.
IATA ACCREDITATION

IATA accreditation, available for travel agents and

cargo agents, simplifies the business relationship
between agents and airlines, and gives airlines
access to a worldwide network of reliably certified
and recognized agents.
Multiple Benefits of being an IATA Accredited
Agents:

 Access to approximately 250 IATA airline members

using a single standard Sales Agency Agreement.
 Authorisation to sell international and/or domestic
tickets on behalf of the airlines.
 Access to IATAs Billing and Settlement Plan (BSP),
and BSPlink that together provide a single standard
interface for invoicing and payment between the
agent and multiple airlines and transport providers.
 ______________________________
End of Module 1

Any questions?
You can find me at:
▰ mia.casiracan@nwssu.edu.ph
▰ https://web.messenger.com/miacherylcasiracan