Reviewer for Legal Aspect (Pre-finals)
 A tour operator typically combines
TRAVEL AGENCY AND TOUR OPERATOR
Travel Agency
 Is a private retailer or public service
that provides travel and tourism
related services to the public on
behalf of suppliers such as airlines,
car rentals, cruise lines, hotels,
railways, and package tours.
 Travel agencies have a separate
department devoted to making
travel arrangements for business
travellers and some travel agencies
specialize in commercial and
business travel only.
The Travel Agency Concept
 Born after industrial revolution
 Travel became merchandised and in
easy reach of an emerging working
class.
 Cox and Kings and Thomas Cook
were the pioneers of mass travel.
Role of Travel Agency
 A travel agency’s main function is to
act as an agent, selling travel
products and services on behalf of a
supplier.
 Consequently, unlike any other retail
businesses, they do not keep a stock
in hand.
Tour Operator
tour and travel components to
create a holiday.
 They prepare itinerary.
 The most common example of a
tour operator's product would be a
flight on a charter airline plus a
transfer from the airport to a hotel
and the services of a local
representative, all for one price.
Rate Sheet - is a table (or spreadsheet) of
real-time lender interest rates and costs
(points). Each wholesale lender produces
rate sheets on a daily basis, coinciding with
governmental changes in the prime interest
rate.
Travel Paraphernalia
*Passport - is a travel document, usually
issued by the government of a nation that
certifies the identity and nationality of its
holder for the purpose of international
travel.
*Airline Ticket - is a document, issued by an
airline or a travel agency, to confirm that an
individual has purchased a seat on a flight
on an aircraft. This document is then used
to obtain a boarding pass, at the airport.
Then with the boarding pass and the
attached ticket, the passenger is allowed to
board the aircraft.
*Visa - is a conditional authority given by a
competent authority of a country for a
person who is not a citizen of that country
to enter its territory and to remain there for
a limited duration.
*Maps - a diagrammatic representation of
an area of land or sea showing physical
features, cities, roads, etc.
*Toiletry Bag - is a small container
(bag/case/kit) which holds body
hygiene/toiletry products for a trip lasting
one night or more. Body hygiene kits are
used primarily by people traveling on foot
and/or by public transport.
*Luggage - suitcases or other bags in which
to pack personal belongings for traveling.
*Carry-on Bag - accompanied baggage
carried on board, an airplane cabin by the
passengers and which fits in the space
provided for it.
*Travel Clothing - comfortable, co-
ordinated neutral colors (dark colors are
practical because they show less dirt),
multipurpose, practical and crumple
resistant clothing.
Documentary Requirements for
Establishing a Travel Agency
*Sole Proprietorship - also known as the
sole trader or simply a proprietorship, is a
type of business entity that is owned and
run by one individual and in which there is
no legal distinction between the owner and
the business.
*Partnership - business in which two or
more individuals share ownership. In
general partnerships, all management
duties, expenses, liability and profits are
shared between two or more owners.
*Corporation - Considered a separate
entity; an artificial person created by law
and, like partnerships, is registered in the
Securities and Exchange Commission (SEC).
Domestic Trade Registration
*Trade Name or Business Name - A business
name refers to ANY name that is different
from the TRUE NAME OF AN INDIVIDUAL,
WHICH IS USED OR SIGNED in connection
with her/his business.
*Bank Certificate - a document, often
requested during an audit that is signed by
a bank official and confirms the balances
due to or from a company on a specific
date.
*Tax Identification Number - “TIN” As the
name implies, this number is a nine-digit
number used as a tracking number by the
IRS (Internal Revenue Service) for tax
purposes.
Local Government Unit
*DTI Permit (Department of Trade and
Industry) - it is the executive department of
the Philippine Government tasked to
expand Philippine trade, industries and
investments as the means to generate jobs
and raise incomes for Filipinos.
*Lease of Contract - contract of lease of the
office space to be used by the agency as
proof of ownership of the area occupied.
*Bank certificate for company's
capital/Surety bond/ Liability Insurance
*Financial Plan - a financial projection will
typically take into account both internal
information such as historical income and
cost data.
*Resume of the General Manager
*List of Tour guide and Travel
representative
*Proof of payment/Official receipts from
BIR
*Barangay Clearance or Certificate of
Residency
*Location Plan
Dealing with clients and their needs
customer service
10 tips for providing customer service
1. Respond to clients as soon as possible
2. Keep clients updated
3. Go extra mile
4. Fix your mistakes
5. Listen to your clients
6. Keep your promises
7. Don’t confuse clients with jargon
8. Be patient
9. Know everything you need to know
10. Put yourself in their shoes
How to Handle Customers
1. Developing Good Service Habits.
2. Problem Customers and Customer
Complaints.
3. Fostering a Positive Co-worker
Environment.
LABOR LEGISLATION RELATED TO THE
TOURISM AND HOSPITALITY INDUSTRY IN
THE PHILIPPINES
The 1987 Constitution provides an explicit
provision for labor. Labor, whether local or
overseas, organized or not organized, shall
be given constitutional protection.
Benefits, Privileges, Policies Affecting
Employees
*Minimum Wage - by virtue of Republic Act
No. 6727 (Wage Rationalization Act), the
determination of minimum wage rates are
now within the function of the Regional
Tripartite and Productivity Board.
*Collective Bargaining - This means
conferring promptly and in good faith for
negotiating agreements with respect to
wages, hours of work, etc. and entering into
written contracts, (called Collective
Bargaining Agreement or CBA) adjustment
of grievances, etc.
*Labor Management Council - under article
255 of the Labor Code, it reserves the right
of an individual employee or group of
employees (unionized or non-unionized) to
present grievances to their employer at any *Employment Contracts - An employment
time, with or without collective bargaining, contract is that by virtue of which one
with or without exclusive bargaining person (employee) binds himself with
representatives. respect to another (employer) to place at
the service of the latter his own efforts in
*Maternity and Paternity Leaves
work, and the latter in turn agrees to pay
Maternity leave benefits are covered under him a compensation proportional to the
Republic Act No. 8282 (May 1, 1997), also time or to the quantity of work done.
known as the Social Security Act of 1997.
*Death Benefits - Under the Social Security
Under said law, a female member (need not
Law, upon the death of a member who has
be married) who has paid at least three (3)
paid at least 36 monthly contributions prior
monthly contributions in the 12-month
to the semester of death, his primary
period immediately preceding the semester
beneficiaries shall be entitled to the
of her childbirth or miscarriage shall be paid
monthly pension: Provided, that if he has no
a daily maternity benefit equivalent to
primary beneficiaries, his secondary
100% of her average daily salary credit for
beneficiaries shall be entitled to a lump sum
60 days or 78 days in case of caesarian
benefit equivalent to 36 times the monthly
delivery.
pension.
Republic Act No. 8187, also known as the
A funeral grant equivalent to P12,000 shall
Paternity Leave Act of 1996 governs the
be paid, in cash, or in kind, to help defray
granting of paternity leave benefits to every
the cost of funeral expenses upon the death
married male employee. Under the said
of a member, including permanently totally
law, every married male employee in the
disabled member or retiree.
private and public sector shall be entitled to
a paternity leave of seven (7) days with full *Health Benefits - This includes sickness,
pay for the first four (4) deliveries of the medical and hospitalization benefits. Under
legitimate spouses with whom he is the Social Security Law, a member who has
cohabiting. paid at least 3 monthly contributions in the
12-month period immediately preceding
*Service Charges - The rule of service
the semester of sickness or injury and is
charges applies only to establishments
confined more than three (3) days in a
collecting service charges such as hotels,
hospital or elsewhere with the approval of
restaurants, lodging houses, night clubs,
the SSS, shall be paid a daily sickness
cocktail lounge etc. All service charges
benefit equivalent to 90% of his average
collected by hotels, restaurants, and similar
daily salary credit.
establishments shall be distributed at the
rate of 85% for all covered employees and
15% for management.
*Retirement - Under Article 287 of the
Labor Code, as amended by Republic Act
No. 7641, also known as The New
Retirement Law, any employee may be
retired upon reaching the retirement age
established in the collective bargaining
agreement or other applicable employment
contract. An employee upon reaching the
age of 60 years or more, but not beyond 65
years which is hereby declared the
compulsory retirement age, who has served
at least 5 years in the said establishment,
may retire and shall be entitled to a
retirement pay equivalent to at least ½
month salary for every year of service.

*SSS, PhilHealth, Employees’ Compensation

Commission, and Pag-Ibig

Employees in the private sector are covered

under the SSS Law wherein the mission is to
promote and perfect a sound and viable tax
exempt social security system suitable to
the needs of the people which shall provide
meaningful protection to members and
their beneficiaries.

*Termination of Employment - It is the

constitutional right of workers to security of
tenure and their right to be protected
against dismissal except for just and
authorized cause and without prejudice to
the requirement of notice under Article 283
of the Labor Code.