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Travel agency management and operations

The Tourism Industry is a composite 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

Overview Planning and development of destination & marketing of the Philippines government sector
Marketing of specific tour product- private sector

The Phil Tourism Industry


PCVC (Tourism Board)

PTA (TIEZA) Local Government Units

Lodging Industry
Food and Beverage Industry Attraction and Activities Industry

Other Natl Government Units

Financial Institutions

The Travel Trade

Other Private Sector Entities

Education & Training Institutions

Government Sector Responsible for the formulation of tourism policies

Department of Tourism
1950s - Started as a private initiative, the Philippine Tourist & Travel Association was organized. 1956 - The Board of Travel & Tourist Industry was created by law. 1973 - The Department of Tourism (DOT), Philippine Tourism Authority (PTA), and Philippine Convention Bureau (PCB) were created by the Philippine government. 1986 - Under Executive Order no. 120 and 120-A, DOT and PCB were reorganized structurally and functionally. PCB was renamed Philippine Convention & Visitors Corporation

DOT Organizational Structure

Secretary of Tourism
Assec for Internal Services Usec Tourism Promotions Usec Tourism Services & Regional Offices Usec Planning, Product, Development




Intramuros Administration

Nayong Pilipino

Key Officials of DOT

1. DOT Secretary Ramon Jimenez, Jr 2. Usec for Tourism Planning & Promotions - Daniel Corpuz 3. Usec for Tourism Services & Regional Operations Atty. Ma. Victoria Jasmin 4. Usec for Administration Atty. Myra Marie Villarica 5. Assistant Secretary Ma. Lourdes Jaleco 6. Asst Sec for Intl Tourism Promotions Benito Bengzon 7. Asst. Sec Tourism Planning & Promotion - Domingo Ramon Enerio 8. Director, Office of Tourism Standards Riza Bueno 9. Director, Tourism Planning & Promotions

Internal Services
Legal Service Provides the dept. With staff advice & assistance on all legal matters affecting the dept, and performs such other related functions as maybe assigned Administrative Services Provides staff advice and assistance on personnel information, records, communications, supplies, equipment, disbursement, security and other custodial work Financial & Management Services Provides staff advice & assistance on budgetary, financial & management matters

Tourism Promotions
Bureau of Domestic Tourism Promotions Bureau of International Tourism Promotions Bureau of Tourism Information

Tourism Services & Regional Offices

Office of Tourism Standards Approve the construction standards of tourismrelated establishments Formulate operating standards for tourismoriented establishments Issue accreditation to qualified travel agencies Encourage formation of industry associations for accreditations Coordinate with all agencies concerned on the enforcement of rules & regulations promulgates by the department

Tourism Services & Regional Offices

Regional Offices Implement laws, policies, plans, programs, rules & regulations of the department Provide economical, efficient & effective services to the people Coordinate with the regional offices of the other departments, bureaus and agencies

Planning, Product Development & Coordination Office of Tourism Development Planning

Formulate plans & policies for the dev. Of tourism industry Monitor and evaluate plans, programs, projects of the department to ensure their effective implementation Conduct research studies & surveys for continuing analysis of the tourism industry Compile and integrate statistical data on the tourism industry Coordinate and assist in the implementation of tourismrelated projects Analyze specific geographical areas with potential tourism value

Planning, Product Development & Coordination

Office of Product Development

Develop & conceptualize new products Undertake pilot tests for testing the viability & acceptability of new tourism,-relate products & programs Encourage and promote joint undertakings with the private sector of new tourismrelates products and programs

Planning, Product Development & Coordination

Office of Tourism Coordination

Initiate & coordinate with all sectors, both government & private, the development of the national tourism plans & policies Coordinate priority activities & projects of the department and other government agencies & the private sector Enlist the assistance and support of any or all government agencies in the implementation of the policies of the department Provide support to all tourism-related activities of the private sector needing government assistance

PCVC Tourism Promotions Board

Marketing arm of the DOT Main task is to promote the Philippines as a tourist and convention and incentive travel destination

Board Members of PCVC

1. The Head Office, UN & International Org, Dept of Foreign Affairs 2. The Governor of the Central Bank 3. The President of Philippine Airlines 4. The elected representative of the paying members belonging to the travel trade sector 5. The elected representative of the paying members belonging to the congresses & convention ctr 6. USEC for Tourism Services & Regional Offices, DOT 7. Chief Operating Officer, TIEZA 8. PCVC Exec Director

PCVC distinct units:

1. Travel Trade 2. Conventions and Incentive Travel 3. Corporate Affairs 4. Foreign Offices 5. Advertising & Publications

Republic Act No. 9593 or The Tourism Act of 2009 declares a national policy for tourism as an engine of investment, employment, growth and national development, and strengthening the Department of Tourism and its attached agencies to effectively and efficiently implement that policy, and appropriating fund thereof. The Act supports the establishment of Tourism Enterprise Zones (TEZs) which will contribute to the accelerated creation of employment opportunities by encouraging and supporting investments in the development and operation of these zones. These TEZs will be the centers of tourism development in the country and are created with the objective of providing the necessary vehicle to coordinate actions of the public and private sectors to address development barriers, attract and focus investment on specific geographical areas and upgrade product and service quality.

The Tourism Infrastructure and Enterprise Zone Authority or TIEZA (formerly Philippine Tourism Authority) , an attached agency to the Department of Tourism, is mandated to designate, regulate and supervise the TEZs established under this Act, as well as develop, manage and supervise tourism infrastructure projects in the country. It shall supervise and regulate the cultural, economic and environmentally sustainable development of TEZs toward the primary objective of encouraging investments therein. The TIEZA will be governed and its powers exercised by a Board of Directors (TIEZA Board) composed of: 1. The Department Secretary 2. The TIEZA Chief Operating Officer 3. The Tourism Promotion Board Chief Operating Officer 4. The Department of Public Work and Highways Secretary 5. The Department of Environmental and Natural Resources Secretary 6. The Department of Internal and Local Government Secretary 7. and Five (5) representative directors that will be recommended by the Tourism Congress.

The Local Government Units

Regulate the establishment, operation and maintenance of cafes, restaurants, beerhouses, hotels, motels, inns, pension houses, lodging houses and other similar establishments, including tourist guides

1. DOTC (Department of Transportation & Communication)

CAB (Civil Aeronautics Board) ATO (Air Transportation Office) MARINA PPA (Philippine Ports Authority) LTFRB (Land Transportation Franchising & Regulatory)

Other National Government Units

2. 3. 4. 5. 6. 7.

DPWH (Department of Public Works & High-ways) DFA (Department of Foreign Affairs) DOJ (Department of Justice) DOF (Department of Finance) DENR (Department of Environment & Resources) DILG (Department of Interior & Local Govt)

The Private Sector

The Transportation Industry

Air Sea Land Oil Companies

Hotels Motels All Suite Hotels Convention Hotels Other Lodging Types

The Lodging Industry

The Food and Beverage Industry The Attractions and Activities Industry
Attraction Industry
Natural Attractions Man-made attractions

Activities (Recreation & Entertainment)Industry

Shopping Leisure Recreation Entertainment

Varieties of Facilities:

Amusement parks Theme parks Resorts Casinos public places where gaming takes place. Gaming is the wagering or betting of money or other valuables on the outcome of game or other event Cruise Dinner Theaters Spas Fitness Clubs and Centers

The Private Sector

The Travel Trade
Made up of travel agents and tour operators, also referred to as intermediaries or middle men, and the tour guides Travel Agency department store of travel Tour Operator contracts and purchases the separate travel components

Education and Training Institutions

Basic Differences Between Travel Agents and Tour Operators


Acts as counselors/ advisers

Acts as middlemen to suppliers/vendors

Revenues are fixed and predetermined

Have variable but limited revenues income & profit margins

Charge fees for documentation & ancillary services

Sells optional products and services and makes use of deposits

Are agents of the suppliers/vendors

Capitalize on cost-savers

The Other Private Sector Entities

1. Publishing Companies 2. ITC Service Providers 3. Marketing and Public Relations Organizations 4.Event Organizers 5.Miscellaneous Services

Travel Management Companies And Travel Agencies

A Travel and Tour agency is an entity engaged in the business of extending to individuals or groups, travel services and assistance to include documentation, 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

The Traditional Way

A commercial enterprise where a traveler can secure information and expertise, get impartial counseling, and make arrangements to travel by air, sea or land, to any point in the world.




The New Trends

CRS to GDS TMC (Travel management Company)
Harnesses the links, expertise, and professional service orientation of the travel organization and turns into a vendor principal selling travel services and solutions All parties are treated as partners




The New Way

Pro active. Provides traveller with the most suitable suppliers based on the vendees needs, convenience and price. For Corp travel, analyzes & assess the travel expenses of the vendee in order to maximize the leverage on volume, or combines volume to provide the most suitable match to the vendees total travel requirements.

Define Cost-plus and Rate-minus

New Role of TMC

A commercial enterprise where a traveller may secure information, receive travel advice, and make arrangements to travel by air, sea or land, to any point in the world for a professional fee

Functions of TMC / Travel Agency

Provide information and expertise Recommend destinations, products and services best suited to the needs of the client Provide assistance in securing travel documents Process travel arrangements Assist in cases of refunds and cancellations

Characteristics of a TMC / Travel Agency

Retailer Acts as counsellor to the end-user and as agent and/or intermediary for the suppliers Derives revenues from a predetermined fixed commission dictated by the suppliers of travel services or from a professional fee negotiated with the client. Occasionally, when provided with Net rates, unilateral mark-ups also provide revenues; Charges fees for ancillary service such as travel documentation

Organizational Structure, Departmental Functions & Job Descriptions

Administration General Administration
Responsible on the legal aspects of the organizations -1. protection from errors 2. third-party liability 3. labor relations with the company employees Insurance needs of the company. 1. accidents 2. financial losses and 3. others, such as fire, burglary and employees healthcare, pension and retirement Purchase & maintenance of furniture, furnishings & office equipment Company policies, SOP, company forms, filling system & electronic data and info processing system

Organizational Structure, Departmental Functions & Job Descriptions

Personnel Section involves hiring policies and compensation
schemes, education & training of staff Personnel Officer evaluates staff performance in order to determine merit increases in monthly compensation and conducts written warnings of poor performance on a regular basis. Decides disciplinary action

Accounting Section handles all records of the company

including all pertinent government licenses and permits. Responsible for the custody of accountable forms (PR/OR, Invoices, PO, Tour Vouchers, & ticket stocks)
Accountant- responsible for the implementation of the Company policies pertinent to billings, credit and collection. Formulation of budget & monitoring of payables and receivables. Bookkeeper the accountants back up / Billing Officers function

Organizational Structure, Departmental Functions & Job Descriptions

Finance Section represented by cashier who handles
records and acts as custodian of all the money collected and disbursed. Finance person assists the GM in the cash flow management of the organization

Operations the core of the TMC

Primarily engaged in the efficient and effective delivery of the organizations services For larger size TMC, there are 2 Operations department: Travel Operations and Tour Operations

Organizational Structure, Departmental Functions & Job Descriptions

Travel Operations Department
Manager Travel Supervisor Documentation Supervisor Travel Counselors /Counter Staff Reservations & Ticketing Officers Liaison Officer

Marketing and Sales

Counter Sales geared to service walk-in clients Field Sales transaction captured by the account exec / sales agents outside the office premises

Organizational Structure, Departmental Functions & Job Descriptions

Marketing everything that is done to create

awareness about a company, its products and its services & creates sales opportunities

Sales desired output of Marketing

Product Development Officer to keep abreast of development in the market and the development of new products and services Product Development and Research Officer

Table of Organizations
Small-sized TMS have no more than ten employees with the Manager supervising all the three departments Medium-sized TMC twenty or so employees with three department heads and the upper management made up of General Manager and an Asst GM back up by a secretary Large-sized TMC- at least 30 employees

Type of Business:

Setting Up a Travel Agency

Sole or Single Proprietorship DTI & LGU Partnership SEC registration, DTI, LGU Corporation SEC registration, DTI and LGU
DTIs Certificate / SEC approved partnership doc Copy of lease of contract Bank Certificate of the company Financial Projections for the next three years Biodata of GM List of companys employees Application form and payment Barangay Clearance Surety Bond General Liability insurance

Setting Up a Travel Agency

LGU license and DOT Accreditation
DOT accreditation a certificate issued by DOT that the holder has complied with the DOTs minimum standards in the operation of the establishment concerned, which shall ensure the comfort and convenience of the tourist DOT accreditation is Optional and LGU License is a must

Market & Destinations

Market prospective travel consumer of

Destination is the place to be

visited or to be experienced within a geographical area of operation

a travel component or a tour package, at the point of origin, while the

Leisure Travel Motivators / De-motivators

Travel Motivators
Physical Motivators Cultural Motivators Interpersonal Motivations Status and Prestige Motivators Cost of Travel Lack of time Health Lack of Interest Fear and Safety

Travel De-motivators

Other Factors that Influence Travel

Age Gender Education

Market Variables
Physiological Safety Belonging Esteem

Relaxation Security Love Achievement

Escape from the everyday work environment, relaxation, relief from tension and stress A sense of wellbeing, health, recreation Family bonding, companionship, social interaction, personal and family ties Prestige, social recognition, ego-enhancement, personal development

Self-actualization Learning

Knowledge of self Exploration & evaluation of self, self-discovery, satisfaction of inner needs Knowledge
Appreciation of Beauty

Cultural, educational, and interest in other areas

Environment, scenery, arts and sciences

Market Variables
1. 2. 3. 4. Socio-economic & demographic variables Product-related variables Psychographic Variables Geographic Variables

Types of Tourism
1. 2. 3. 4. 5. 6. 7. 8. Historical Tourism Cultural Tourism Religious Tourism Adventure Tourism Environmental or Eco-Tourism Culinary Tourism Medical Tourism Recreational Tourism

Corporate Travel / Business Travel

Sponsored travel for financial or economic gain and for representation purposes in private or public sector events
Businessmen, corporate travelers, seafarers, and land-based contract workers, government officials traveling on official government business

A specific area that a traveler decides to visit for the day or to spend at least one night Not just a place and route to a travelers ultimate destination Travelers select destinations according to their interest and purpose of travel Must have sufficient and adequate facilities to meet the needs of the travelers

Attractions Natural Attractions Cultural Attractions Recreational Facilities Religious Gathering

Destination Assessment
Transportation Facilities Infrastructure Attractions Hospitality Resources

Matching Markets with Destinations

The Domestic Traveler

The Budget Traveler female college student,1722 years old Characteristics:
Group Travel Very strong cost considerations Sight-seeing oriented Not comfort-conscious

Matching Markets with Destinations

The Regular Traveler

Employed in either government / private sector 23-30 years old College degree, earns 16000-33000, singlemarried, disposable time is limited to vacation leaves from employment Characteristics:
May or may not travel in groups On the lookout for best value for money Site-or activity-oriented Comfort important but not essential

The High-end Traveler

Married with a post-graduate degree Age 31-50 years old Earns 40000 per month or 500,000 per annum Business person or in senior management with ample disposable time and money
Individual travel Willing to pay more Destination-conscious Comfort and convenience essential

Destination Evaluation
Accessibility Comfort and Convenience Education and Entertainment Service, Safety and Security


Convenience, Comfort Capacity & Capability Clean restrooms with water

Entertainment, Environment & Education Shopping Stalls

Service, Safety & Security Security guard, safety signage


Parking areas


Parking areas

Clean restroom with running Tiangge Security detail water Sanitation systems Local guides Directional signage Safety measures Lodging facilities Restaurants Shops Tour Guides Shopping malls Environmental protection ordinances Actrive police protection Information officers Properly trained service staff

Destinati on

Airport Piers Bus Terminals

A Tourist Destination is a geographic area with adequate facilities that is visited because of its attractions, activities or events A Tourism site is a component of a destination centered on specific sights, activities or events A Tourist Sight is an attraction at a site known for its exceptional beauty and/or its uniqueness

The Good Match

Necessary to establish a baseline that will serve as the basis for planning effective marketing for a selected destination, site or sight

Baseline- the physical connectivity

between market and destination areas

Budget Traveler

Regular Traveler
Either site or event-oriented

High-end Traveler
Off-the-beatentrack destination. Thematic (special interest)

Run of the mill sightseeingoriented Geographical (Proximity)

Types of Tourists
Psychographic profile Allocentric Near allocentric Mid-centric Near psycho-centric Psycho-centric

Travel Motivator
Physical Rest Relaxation Recreation Cultural Knowledge of people and places Personal interaction Escape from routine Visit friends and relative Status & Prestige Personal development Pursuit of hobbies & education Self-fulfillment Age Gender Education

Types of Destination
Travel expectation & experience sought Business Cultural Ethnic, Environment, Economic Historical Recreation Mixed National locations North/South Luzon West/Central Visayas North/South/East Mindanao International locations Northeast Asia Southeast Asia North America Europe Holy Land Australia/New Zealand

Demographic profile Income Age Occupation Place of work/residence Family stage




7 CONTINENTS (6AS, 1E) - Asia - Australia - Africa - America, North - America, South - Antarctica - Europe



Study of how geography influences peoples behaviour, customs and habits Sometimes referred as human geography Religion, economics, food, art, architecture, language, national boundaries, politics, agriculture and employment

Touristic patterns
Defined as predictable combination of characteristics and qualities that describe why, how and when people travel High season peak season Low Season off peak season Middle Shoulder season

Understanding and reading map

The land mass from west of the Bosporus strait in Turkey and west of Ural Mountains in Russia, extending west to the Atlantic Ocean. Europe also includes the island nations of Ireland, Iceland, Malta and the United Kingdom

Understanding and reading map

- The land mass east of the Suez Canal in Egypt, east of Bosporus strait in Turkey and east of Ural Mountains in Russia, continuing East to the Pacific Ocean. Asia also includes the island nations of Japan, Taiwan, Indonesia, Philippines, Maldives, and Sri Lanka

Understanding and reading map

- The land mass bordered by the Indian Ocean on the east, the Red Sea and Suez Canal on the northeast, the Mediterranean Sea on the north, and the Atlantic Ocean on the west. It includes the islands of Comoros, Mauritius, Reunion, Sao Tome and Principe, Madagascar and Cape Verde, Seychelles and Canary Islands

Understanding and reading map

- The land mass bordered by the Pacific Ocean on the west, the arctic Ocean on the north, the Atlantic Ocean on the east and the nation of Colombia on the South. It also includes Bermuda, the Bahamas, Greenland and the island nations of the Caribbean Sea, also known as the West Indies.

Understanding and reading map SOUTH AMERICA

- The land mass bordered by the Atlantic Ocean on the east, the Pacific Ocean on the west and the country of Panama on the north. It also includes Galapagos Island and the falkland islands.

Understanding and reading map

- The land mass bordered by the Timor Sea, the Arafura Sea and the Gulf of Carpenteria to the north, the Indian Ocean to the west, south and northwest, the Coral Sea to the east and northeast and the Tasman sea to the southeast.

Longitude and Latitude of map-reading skills

- Is determined by a series of imaginary lines circling the globe in east/west direction (parallel to the Equator) A geographic features latitude is expressed by the number of degrees that it is north or south of the equator

- Is a series of imaginary lines going in north/south (pole to pole) direction, perpendicular to the Equator, at interval of 15 degrees. A geographic features of longitude is expressed by the number of degrees it is east or west of the prime meridian which runs through Greenwich, England.