CHALLENGES OF TRAVEL AGENCIES DURING THE COVID- 19 PANDEMIC

Chapter 1

Introduction

Background of the Study

A travel agency is a company that acts as the intermediary between the travel industry and the

travelers. Travel agencies may be part of a larger entity or small and privately owned (Knowles

& Wetscott, 2019). The travel agency is one of the significant organizations that play a vital role

in the entire phase of developing and promoting tourism in a country’s destinations. It bundles

and processes all country’s sights, entry, facilities through arrangements of travel tickets (air,

rail, road, and sea); travel documents (passports, visa, and other documents required to travel);

and ancillary services such as accommodation, entertainment, and other travel-related services

from suppliers (“Travel Agency,” n.d).

Client satisfaction and success of the tourism industry from businesses, attractions, and

destinations can be highly affected by travel agent reviews and recommendations. They

influence tourism planning decisions and findings through obtaining tickets, helping travelers

book reservations, and offering vouchers (Kumar & Praveen, 2012). A travel agency can be a

business or service provider in the travel industry that offers tourism-related products and

services to customers on behalf of suppliers. These suppliers may be businesses within the

hotel industry, hospitality industry, cruise industry, airline industry, car rental sector, and other

related industries (“Travel Agencies for Travel,” n.d.).

The fear of COVID-19 led to significant uncertainty and chaotic conditions in many industries.

Since the quarantine introduction, millions of jobs in the global tourism sector were lost due to

flight, event, and hotel cancellations (Siddiquei and Khan, 2020). The said industry experienced

sharply falling revenues and is among the economic sector that was severely affected by the

pandemic. The shock affects both the demand side (restrictions on freedom of movement,

border closings, guests' fear of infection) and the supply-side (closure of accommodation and
catering establishments as well as leisure facilities used for tourism). The effects of Covid-19

are expected to extend for eight months and result in a decrease of 39% in global tourism

volume Gurel Cetin,(2020). The World Travel & Tourism Council (WTTC) reported that there will

be a gradual return to pre-COVID-19 rates of travel over the coming months as a “new normal”

emerges. Travel is likely to return to domestic markets first (through stays); then to the country’s

closest neighbors, before extending across territories, and eventually continents, with

long-distance travel becoming common again. Either way, a Memorandum Circular 20-53 dated

October 14 was issued by the Department of Trade and Industry (DTI), reminding travel

agencies and tour operators to maintain minimum public health standards upon the re-opening

of their businesses. It is evident that despite the gradual start of business operations, agencies

are still facing challenges in response to the restrictions and health protocols set by the

government.

In this study, the researchers aim to identify the challenges that confront travel agencies during

this pandemic. Specifically, this paper seeks to assess and examine the adversities experienced

by travel agencies concerning booking procedures, revenue creation, cost management, and

overall profitability. Moreover, the results of this study aim to provide its readers relevant

information about this industry, its operations, the effect of existing environmental changes, and

suggest possible actions that can help in preventing or mitigating the effect of uncertainties or

occurrence of problems brought about by unpredictable changes in the business environment.

Statement of the Problem

The study is to evaluate and investigate the challenges of travel agencies during the

pandemic.

Specifically, the study is to answer the following questions:

 1. What are the challenges of travel agencies during the COVID- 19 Pandemic when

they are taken as a whole in terms of their:

1.1 Booking Procedures

1.2 Revenue Creation

1.3 Profitability

1.4 Cost Management

2. What are the challenges of travel agencies during the COVID- 19 Pandemic as to

the place of business, number of employees, and services offered in terms of their:

2.1 Booking Procedures

2.2 Revenue Creation

2.3 Profitability

2.4 Cost Management

Scope and Limitation of the Study

This study will focus on the challenges experienced by travel agencies during the

COVID- 19 Pandemic. Specifically, the study aims to know the challenges in the booking

procedures and ways to resolve booking cancellations, the revenue creation by considering

customer’s choices and preferences, the cost management controls, and the overall profitability

of the entity by taking advantage of opportunities that a travel agency can have to recuperate.

The study will approximately last for 4 months starting from February until May of 2021 and will
be conducted in Bacolod City. The respondents are the owners or managers or any person

overseeing the operations of the travel agencies.

The occurrence of COVID- 19 Pandemic imposes certain restrictions in the conduct of

the study due to strict limitations as to social interactions because of health protocols that must

be observed. Thus, the researchers opted to use online platforms in the gathering of research

data. The interviews to be conducted will occur through an online video conference using Zoom

or Google Meet.