The Travel Agency

Definition
Is

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.
as an agent of the different suppliers in the tourism industry

Acts

Channels of Distribution
Unilateral Distribution System
Supplier Consumer

Bilevel Distribution System

Supplier Retailer Consumer

Travel Management Company

A commercial enterprise where a traveler 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.
Consumer

Supplier

TMC

Functions of a TMC
Provides

information and expertise.

Recommends

destinations, products and services best suited to the needs of the client.

Functions of a TMC
Provides

assistance in securing travel documents.

Functions of a TMC
Processes

travel arrangements.

Functions of a TMC
Assists

in cases of refunds and cancellations.

Setting up a Travel Agency

Setting up a Travel Agency

Single Proprietorship
Bureau

of Domestic Trade Registration

Trade Name Registration Bank Certificate for companys capitalization TIN of the owner

Setting up a Travel Agency

Single Proprietorship
LGU

DTIs Certificate of Business Name Registration Copy of Lease Contract Agreement of the premises Bank Certificate of the companys paid up capital Financial projections for the next three years

Setting up a Travel Agency

LGU
Bio-data of the General Manager List of the companys employees with respective bio-data Duly accomplished application form Proof of payment of application fee General Liability insurance policy Surety Bond from an accredited insurance company Barangay Clearance

Setting up a Travel Agency

Partnership

Securities and Exchange Commissions & DTI Registration

Articles of Partnership Bank Certificate of capital fund paid-up

LGU

SEC-approved Partnership document *** same with Proprietorship requirements

Setting up a Travel Agency

Corporation

Securities and Exchange Commissions and DTI Registration

Articles of Incorporation By-laws Bank Certificate of capital fund paid-up Incorporators Bio-data

Setting up a Travel Agency

License to Operate
Barangay clearance Fire safety clearance Certificate of electrical inspection Certificate of occupancy Certified copy of Articles of Incorporation/Partnership and By-laws or Certificate of Business Name Registration for Single Proprietorship Contract of Lease of office space

Setting up a Travel Agency

License to Operate
Surety Bond valid for one year from the date of issue List of all officials and employees and their respective positions, citizenship, and home address List of all travel representatives, consultants, sales agents or persons who are regularly engaged in soliciting and booking passengers

Setting up a Travel Agency

License to Operate
For new general manager, application for permit to work and documents to prove a minimum of three (3) years experience in travel and tour agency operations. For new agencies, a two or three-year projected financial statement reflecting a minimum working capital of Php 1,000,000.00.

Setting up a Travel Agency

Registration with the following government agencies:

SSS BIR Pag-ibig Philippine Health Insurance Group

DOT Accreditation: is a certificate issued by

the DOT that the holder has complied with the DOTs minimum standards in the operation of the establishment concerned.

Organizational Structure

Small-sized TMC/TA
MANAGER
Secretary

Administration

Operations

Sales

Organizational Set-Up

Medium-sized TMC/TA
General Manager
EDP/MIS Secretary Asst. General Manager

Administration

Operations

Sales

Organizational Set-Up

Large-sized TMC/TA
General Manager
Comptroller EDP/MIS Secretary Asst. General Manager

Administration

Operations (Tours)

Operations (Travel)

Sales & Marketing

Departmental Functions

Administration Department

General Administration Section Personnel Section Accounting Section Finance Section

Departmental Functions
Marketing and Sales Department
Marketing -Creating awareness of both the company and its products and services. Advertising Publications Publicity Public Relations Promotions

Departmental Functions
Marketing and Sales Department
Counter Sales -Transactions captured by the travel counselors or counter staff. Field Sales - Transactions captured by the account executives or sales agents or representatives outside the office premises.

Travel Agencys Manpower

Bookkeeper Cashier Utility Personnel Administrative Manager Accountant Collectors

Travel Agencys Manpower

Travel Counselor Reservation & Ticketing Agent Liaison Officer Travel Manager/Tour Manager Travel/Counter Supervisor Documentation Supervisor

Travel Agencys Manpower

Account Executive Sales Manager Sales & Marketing Manager Business and Product Development Supervisor Researchers Utility Personnel

Departmental Functions
Operations Counter Counseling Documentation Reservations Fare Calculations Ticketing

Sales and Revenues of TMC

Cost-plus: a negotiated professional or handling fee Commissions: a percentage of the total price paid to an agency. (rate minus) Transportation = 5-9% Tour packages = 11% - 22%

Sales and Revenues of TMC

Reasonable Mark-up on Net Fares: a fee added to the net price (considers expenses or profit margin) (net plus) Service Fees: a collected amount for certain ancillary service Production Incentives and Rebates

Commission
Airline Seat Commission 450.00 6% 27.00

Mark-up
Airfare Ground transfer Accommodation Sightseeing Meals 250.00 20.00 300.00 50.00 70.00 _______ $690.00 69.00 $759.00

Total Cost Mark-up 10% Total Selling Price