Travel Agency ator

Taufik Abdullah, A.Md. Par., S.E.

Definition

The United conference on international travel and tourism (Rome, 1963)

• Tourism
The sum of phenomena and relationships arising from the travel and stay of non-resident to and in various destinations, insofar as they do not lead to permanent residence and are not connected with any earning activity.

• Tourist

Temporary visitors staying at least 24 hours in the country visited. Temporary visitors staying less than 24 hours in the country visited (including travelers on cruises).

• Excursionist

CONDITIONS FOR THE EXISTENCE OF TOURISM
 PEOPLE There must be people willing to travel and wanting to visit places. Various reasons : Scenery, climate, familiar interests, history.  TIME These people must have spare time (weekend, holidays or vacation) enabling them to leave their residence.  MONEY They must also have money to spend on pleasure and recreation.  TRANSPORTATION People may reach the place of their choice, there must be a way to get tourist object/destination.  LEGISLATION To develop the flow of tourists between different countries, administrative restrictions must be held to a minimum. too much “red tape” at the borders tends to discourage would be tourists.  ACCOMMODATION POSSIBILITIES Once on the spot, the tourist will demand that his/her basic needs be satisfied : Food and shelter.

hiking and the like A shorter work week Greater affluence ---.increasing of income/purchasing power Greater mobility of the population Growth of employee benefits Smaller families           Improved transportation and relative decrease in cost Increase in longevity ---.attention to health program such as camping. cycling.live longer with greater vigor Growth of multi-national companies Rapid communications Higher education .IMPORTANT UNDERLYING FORCES WHICH HAVE A SIGNIFICANT IMPACT ON TOURISM     Early retirement The growth of government security programs A reduction in values placed on material ownership Decline in physical labor ---.

HOTELS AND OTHER ACCOMMODATIONS TOURIST OBJECT RESTAURANT TOURISTS . TRAVEL DOCUMENT Receiving countries • Switzerland • Malaysia • Indonesia • USA • Egypt. etc. etc.THE ROLE OF TRAVEL AGENCY AND THE LIKE IN TOURISTS FLOW Generating countries • Holland • Germany • France • Canada • USA • Japan.

THE SOCIAL EVOLUTION OF TOURISM WAS CHARACTERIZED BY Higher salaries  Longer vacations  Holidays and free time almost totally paid by the employer  A leveling out of social classes  .

000 orang untuk menyaksikan World Exposition • Tahun 1855 . di Derby Shire (Inggris). anak Thomas Cook. mulai membantu pada tahun 1865 dalam menyelenggarakan tour ke Eropa dan Amerika . Dengan Pengikut sebanyak kurang lebih 500 orang • Tahun 1851. • Dilahirkan tanggal 22 November 1818. Tour yang paling bersejarah yang pernah diselenggarakannya yaitu A Round Trip Excursion antara kota Leicester dan Lougborough dengan biaya 1 shilling per orang.Travel Agent Pertama di Dunia • Thomas Cook dianggap sebagai orang pertama menemukan profesi travel agent. • Tanggal 5 Juli 1841. ia membawa orang-orang Inggris ke Eropa untuk menyaksikan Paris Exhibition di Perancis (Cook’s Tour of Europe) • Kantor Cook’s Travel Agent dibuka tahun 1868 di London • John Mason Cook. ia menyelenggarakan tour ke London dengan pengikut sebanyak 150.

dan menyelenggarakan pelayanan bagi seseorang atau sekelompok orang untuk melakukan perjalanan dengan tujuan utama untuk berwisata Peraturan Pemerintah RI No.Usaha Perjalanan Keputusan Dirjen Pariwisata Kep.16/U/II/1988 Usaha Perjalanan adalah usaha yang bersifat komersial yang mengatur. 67 Tahun 1996 tentang Penyelenggaraan Kepariwisataan menyatakan bahwa usaha perjalanan tersebut terdiri atas dua jenis usaha pariwisata yaitu: Biro Perjalanan Wisata (BPW) Agen Perjalanan Wisata (APW)   • • . menyediakan.

routing. Kep. transportation. 16/U/II/88 Tgl 25 Februari 1988 Agen perjalanan adalah badan usaha yang menyelenggarakan usaha perjalanan yang bertindak sebagai perantara di dalam menjual dan atau mengurus jasa untuk melakukan perjalanan. . Surat Keputusan Direktur Jenderal Pariwisata No. sightseeing. accommodations. and who offers buyers sound travel counseling on destinations.Travel agency   Travel agency is the enterprise who brings together the suppliers of travel services with the buyers. and other elements of travel.

. wisata pelayaran .Tour operator • Dennis L. dan produk-produk lain yang berhubungan dengan perjalanan tersebut. Foster (2000) mengungkapkan pengertian biro Perjalanan perjalanan wisata sebagai sebuah perusahaan perjalanan yang menjual rancangan perjalan secara langsung kepada masyarakat dan menjual jasa angkutan (udara. akomodasi . • Tour operator (Wholesaler) adalah suatu perusahaan yang usaha kegiatannya merencanakan dan menyelenggarakan perjalanan orang-orang untuk tujuan pariwisata (tours) atas inisiatif dan resiko sendiri dengan tujuan mengambil keuntungan dari penyelenggaraan perjalanan tersebut. darat dan laut). paket wisata.

etc. MIDDLEMEN • Travel agency • Wholesalers • Retail – tour operator SECONDARY SUPPLIERS Musicians. Chauffeurs. etc.The function of travel agency on the travel industry activities PRIMARY SUPPLIERS • Airline • Cruise ship • Bus line • Hotels • Restaurant • Resorts. Traveler . Caterers.

People seek travel agency for travel itineraries due to its capability as a travel expert and think about efficiency  .The functional activities of a travel agency 1. Travel information and itineraries Travel information is to be required by the people who wish to travel and this information relates :  Travel itineraries is given by travel agency as an advice to people on the type of travel itineraries which they should select for their holiday or business travel.

The functional activities of a travel agency 2. cruise) Rail transport (domestic. package tour (product of other travel agencies) . international) Bus (coach) transport   Transfer service (intercity transfer. Ticketing  Transport ticketing     Airline travel (schedule. charter/affinity charter) Ship line travel (passenger. terminal transfer) Touring service  Other ticketing    Sport events Cultural performance Sight seeing. excursion.

Accommodation     Hotel (other types of accommodation) reservation Restaurant booking Theater booking Special events reservation .The functional activities of a travel agency 3.

Tours (leisure)  Sight-seeing and excursion City sight-seeing tour  Country side tour  Combination between city sight-seeing and country side  Intercity sight-seeing transfer   Inclusive tour charter (IT/ITC) An aircraft charter that carries an inclusive tour. . The tour to be provided in connection with charter transport.The functional activities of a travel agency 4.

Tours (leisure)  Package tour           Domestic tour Outbound tour Inbound tour Escorted tour Unescorted tour Group inclusive tour (GIT) Foreign inclusive tour (FIT) Special interest tour Out off the beaten track tour Incentive tour .The functional activities of a travel agency 4.

Terminal to terminal  Rent a car service (incl.The functional activities of a travel agency 5.V.  Intercity transfer :     Hotel to hotel Hotel to terminal V. Rent-a-car packages) Drive-yourself (U-drive service)  Chauffeur driven service  . Related travel services  Provide transport on transfer in and out Terminal to terminal transfer  Terminal to hotel V.V.

Related travel services  Money changer A travel agent should be appointed as an authorized agent from the travelers checks company. and earned agency-commission from it.The functional activities of a travel agency 5. and get the profit from the differences of the conversation rate. .  A travel agent becomes an agent of a money changers company.

Related travel services  Insurance The loss of baggage and personal possession  The damage and theft of baggage and personal possession  The illness or injury  The death  Trip cancellation (an excellent way to safeguard clients from cancellation made by transportation companies. accommodation.)  .The functional activities of a travel agency 5. etc.

The functional activities of a travel agency 5. Related travel services  Cargo handling  The overweight of passenger’s baggage  Accompanied baggage  Unaccompanied baggage  The special delivery of souvenir cargo .

Related travel services  Travel document handling  Passport and exit permit requirements  Visa/entry permit/tourist card permitting a traveler to enter.The functional activities of a travel agency 5. such as :  Visa application service  Visa extension service  Health certificate and quarantine service .

Related travel services  Convention services  The travel needs of convention participants :    Meeting and transfer in & out services Providing transport to the destination Providing tour/sight-seeing :    Pre conference tour Official conference tour Post conference tour  The overseas convention arrangements :   Convention registration Travel services related to the need of participants in the destination .The functional activities of a travel agency 5.

Related travel services  Guiding and tour conducting Travel agency can provide specialized personnel to be used for making a tour. .The functional activities of a travel agency 5. that is : .tour conductor.tour guide .

history. culture.The advantages of being travel agent Involves much traveling all over the world Given VIP treatment wherever you go (large discounts on travel components costs) Enjoy the interest in geography. Has a chance to brush up the study of foreign languages Collects bonus as addition in salary      . literature. etc. art.

The disadvantages of being travel agent  Has a lot of hard works. such as :     Natty-gritty Detailed work to do Able to travel much of the time Complex office works An error might came the reservation not in order A mistake of only a few minutes might came to miss a connection  The must exacting business :     Requires careful checking and double checking for taking care of accurately and properly Has to wit stand adverse situation caused by circumstances .

. PM 9/PW 104/Phb-77         Menyusun dan menjual paket wisata luar negeri kepada umum atau atas permintaan Menyelenggarakan dan menjual pelayanan wisata (cruise) Menyusun dan menjual paket wisata dalam negeri kepada umum atau atas permintaan Menyelenggarakan pemandu wisata ( guiding and tour conducting Menyediakan fasilitas sewa mobil untuk wisatawan Menjual karcis (ticket) sarana angkutan dan lain-lain Mengadakan pemnesanan sarana wisata Mengurus dokumen-dokumen perjalanan sesuai dengan peraturan-peraturan yang berlaku.Kegiatan Biro Perjalanan Umum Keputusan Menteri Perhubungan No.

. PM 9/PW 104/Phb-77    Menjual karcis (ticket) sarana angkutan dan lain-lain Mengadakan pemnesanan sarana wisata Mengurus dokumen-dokumen perjalanan sesuai dengan peraturan-peraturan yang berlaku.Kegiatan Agen Perjalanan Keputusan Menteri Perhubungan No.

UMUM KE DLM NEGERI UR. PERJA & PERIZ. UMUM KE LUAR NEGERI UR.ADM. WIS. INSENTIF KE LUAR NEGERI SEKSI WISATA DI DLM NEGERI URUSAN HOTEL SEKSI PROMOSI DAN PENJUALAN URUSAN AKOMODASI LAINNYA URUSAN PERSONALIA SEKSI DOK. INSENTIF DI DALAM NEGERI SEKSI PELAYARAN WISATA URUSAN VISA DAN KARANTINA UR. WIS. WIS. WIS. PELAYARAN WIS. WIS. WIS. TICKET ANGKUTAN LAUT UR. TICKET LAINNYA SEKSI AKOMODASI UR. ANALISA LAPORAN KEUANGAN SEKSI UMUM & PERSONALIA UR.CONTOH BAGAN STRUKTUR ORGANISASI BIRO PERJALANAN UMUM RAPAT UMUM PEMEGANG SAHAM DEWAN KOMISARIS PIMPINAN BAGIAN WISATA BAGIAN PERJALANAN BAGIAN PEMASARAN BAG. KE DLM NEGERI URUSAN WISATA TIRTA UR. KEIMIG. LITBANG PASARAN WISATA SEKSI PERENCANAAN & PRODUKSI URUSAN ANGGARAN URUSAN KASIR SEKSI AKUNTANSI URUSAN PERENCANAAN URUSAN PRODUKSI URUSAN AKUNTANSI UMUM UR. TICKET ANGKUTAN UDARA UR. LITBANG PRODUK WISATA URA. PAKET WISATA KHUSUS . URUSAN PROMOSI DAN IKLAN URUSAN RUMAH TANGGA URUSAN PENJUALAN UR. INSENTIF KE DLM NEGERI SEKSI WISATA KE LUAR NEGERI UR. KHUSUS DI DALAM NEGERI UR. & PERIZ. KHUSUS KE LUAR NEGERI UR. KEWARGANEG. WIS. TICKET ANGKUTAN DARAT UR. PAKET WISATA UMUM UR. WIS. KHUSUS KE DLM NEGERI UR. & KEUANGAN SEKSI WISATA KE DLM NEGERI SEKSI TICKET SEKSI LITBANG SEKSI KEUANGAN UR. UMUM DI DLM NEGERI URUSAN PASPOR DAN EXIT PERMIT UR. KERJA SEKSI PAKET UR. WIS.

DAN KEUANGAN .BAGAN STRUKTUR ORGANISASI AGEN PERJALANAN YANG MEMILIKI CABANG RAPAT UMUM PEMEGANG SAHAM DEWAN KOMISARIS PIMPINAN BAGIAN PERJALANAN BAGIAN PEMASARAN CABANG BAGIAN WISATA BAGIAN ADM.

such as bank interest. travel insurance.   Expenditure Personnel expenses  Sales and promotion expenses  Administrative expenses  . etc.  Investment profits. revaluating of fixed assets. car rental.EXPENDITURE  Income Commission or mark-up on tickets and tours  Other commissions such as from hotel reservations. etc.Potential profits of a travel agency PROFIT = INCOME .

. Total income (gross profit) Mix ratio = -------------------------------.Mix ratio Mix ratio is the ratio percentage of total income (gross profit or total commission & add-on profit) to total gross sales. while others may operate at 10 % or better if they enjoy high revenue sales. It follows that the larger the mix the greater the income.5 % mix is about average for the industry. 8 % to 8. though some agencies may run lower if they concentrate on heavy volume of commercial business.X 100 % Total gross sales Incidentally.

car rental firms solicit and accept business directly from the public. sight-seeing firms.Competition on travel agency business  Other travel agencies The competition is a healthy competition if all the agencies operate on an ethical basis. rail and coach companies.  Organizers and tour directors Many travel agents oppose local group organizers with the result that the organizer goes directly to a supplier and the revenue is lost to the agency. . tour operators.  Suppliers Suppliers like airlines. steamship. hotels.

Such as employees annual leave handled by employer. . etc.   Other competition There are many other non-industry organizations and people competing with travel agents.Competition on travel agency business  Non-profit organizations These competition may come from : A club  Labor union  School organizer  Social organizer.

Risk of failure on Travel Agency business          Under capitalization Failure to thoroughly investigate an agency prior to purchasing Deficiency in knowledge of travel agency operation Deficiency in knowledge of travel industry in general Unrealistic evaluation of market potential Inefficient manager and/or staff Inexperienced manager and/or staff Too much competition or poor location Poor business climate .

thereby seriously restricting the cash flow An egotistical attitude Inability of the owner to properly handle. or to heed the advice of the manager.Risk of failure on Travel Agency business         Lack of professionalism Failure to have an agency evaluated and investigated by an expert prior to purchasing Failure to listen to. or motivate staff . Absentee ownership (loss of control) Inadequate record keeping Excessive extension of credit.

etc.The benefits of consider retaining a consultant Will help eliminate costly errors Will reduce business risk Can advice on a variety of important functions            Location Lease Layout Accounting Filing and efficiency system Advertising and promotional campaigns Budgeting Developing a training program. .

. before it gets out of control His/her practical experience which is gained through exposure to a variety of situations and problems.The benefits of consider retaining a consultant    Can stop the attitude of “I’ll do it my way” The slightest evidence of a problem can be solved at the time of arising.

Start a new travel agency or buy an existing agency To start a new travel agency     Has to find and decision a good location Less of capital Has to secure suppliers appointment Has to hire and train personnel Should has a good existing By a very thorough investigation Already operating Has a functioning staff To buy an existing travel agency     .

and earnings ? Does it measure up to the criteria standardized for a good existing travel agency ? .Considerations on buying an agency      Is there an agency for sale within the price range in the general area desired to locate ? Is it for sale at a reasonable and realistic price ? Can it arrange a moderate down payment with attractive payout time ? Does it have a consistent record of steady sales. growth.

and principles Immediate earnings commission (if already has clients) Buyer can get benefit from the owner :  Expertise of the business  The community  Possible to buy an agency at a low or bargain price. .The advantages of buying a travel agency    Already is at an approved location. staff.

because the inaccurate evaluation of the worth of agency The agency may be in default If the owner leaves immediately after the closing of the sale much of the business may diminish The location may be poor The owner may have had a bad reputation May be loss of important commercial account. .The disadvantages of buying a travel agency       Pay too much. departure of key staff.

manufacturer has a realistic assets and inventories) The previous history and prevailing condition records should be utilized as an adding or subtracting consideration Consider factors that could influence on pricing.Guidance on pricing a travel agency    To effort arriving at an equitable or realistic price Should be aware of that evaluating a service business is always more complicated than pricing a manufacturer or retailer (service business is intangible and unknown.  .

steady and repeat clientele. and other factors related    . high mix. convenient location. the depreciated value. exploited. The potential : to discern the potential which is right to be The good will (consists of intangible factors) : Eagerness and desire The business climate The evaluating factors good reputation.Factors that should be taken into consideration on pricing a travel agency    Asset value : the cost of the asset new. or fair market value. attractive offices. competent and efficient staff. the replacement.

The factors on evaluating the price of a travel agency Positive factors              Substantial vacation business Long established Consistently good sales High mix Good commercial volume Favorable lease Good location Attractive décor Quality of furniture and equipment Stable management and staff All conference appointments Good cash flow Owner will remain during transition .

fraternal business. student business.The factors on evaluating the price of a travel agency Negative or minus factors         High turnover staff Too much commissioned sales people An excess of : charter business. ethnic business. Poor cash flow Slow paying commercial accounts High rent Recently established Owner will depart after closing . group business.

Establishing a new travel agency 1. Factors to be considered in choosing location         Offers the best potential for growth and profit Type of business Location of travel agency competition and supplier Cater to the “carriage trade” in a large community Type of sales service Plenty of free parking A ground floor location or an adequate elevator services (for a multi storied building) Good traffic pattern   Easily accessible to the clients Exposed to as many people  The history of the site .

accounting office. a supply and mailing office.Establishing a new travel agency 2. storage and file space. . chairs and filing cabinets The flow of the clients should be act in accordance with the office procedure Besides the lay out of counter sales should be considered too the placement of the manager office. Physical lay out – decor          Has a good portion ratio between sales activities area and administrative activities area (depends on the type of its business activities) The reception area is a polite receptionist who may double as the telephone operator General sales counselors should be located near the entrance Separation based on departmentalization activities should be existed clearly Has a folder (brochure) rack display in the reception area Take the advantages on window display possibilities Has a uniform office furniture such as desks. tour/travel administrative operation office.

poster.The decor of travel agency office should possessed an impression of the client with consideration as hereunder      The decor is to be set in accordance of travel services Has a colorful and glamour impression To perform an attractive. etc. exciting and efficient-looking office Utilizing brochure. air models. as a decor aids material Supplemented by colorful maps (tourist or airlines’ map) .

etc . and equipment          Bookcases Chairs Copy machine Desks Dictating equipment Filing cabinets Lamps Literature racks Safes and vaults          Shelving Storage cabinets Tables Ticket imprinter (order from ATC) Typewriters Waste paper basket Computer sets with link system Telephone and facsimile Miscellaneous.Furniture. accessories. fixtures.

and internet installation Outside signs Other expenses Sub total Add 10 % contingency Total estimated start-up expenses       . etc. etc. bond.)  Travel agency supplies and forms   Accounting and other office supplies Subscription to tariffs. facsimile. envelopes. etc. trade journals.Estimated of start-up cost         Fixtures and equipment Advertising and other opening promotional expenses Conference. Legal and other professional fees Printing (letterheads. Telephone. manuals. filing and application fees Decorating and remodeling Incorporation and other organizational expenses Insurance.

bond Legal and accounting Miscellaneous expenses  Postage          Rent and utilities Stationery and supplies Taxes Telephone and telegraph Travel expenses Other Sub total Ten percent contingency Total annual operating expenses .Annual operating and expense budget            Salary of owner Salary of manager All other salaries and wages Advertising and promotions Conference fees Depreciation Dues and subscription Entertainment Insurance premium.

business cards. Set up the accounting system Order all supplies from travel agency printers  Order all furniture. advertising and mail campaign Order installation of telephone. office machines and other equipment  Other subscriptions to tariffs.Check list for opening a travel agency              Contact conferences for information and applications Order catalogs from travel agency printers Consult with your attorney to decide form of legal structure Complete the worksheet in this book Decide on a name for the agency Locate suitable office space Read lease carefully. facsimile and internet Hire manager to conform with conference regulations Obtain ATC bond and take out insurance policies as needed Establish contact with tour operators and other suppliers Carefully review and complete conference applications        File for appointments . Attorney to review before signing Form the corporation Open a bank account Arrange for design of logo Order all letterheads. manual. envelops. and trade journals Plan opening promotion. etc.

retention of products. figures and computation. internal and external communication  Operation management office   .Setting travel agency office  Considerations Cost and benefit analysis  The needs of the staff  The dictates of business efficiency   Travel agency management consists of :  Corporate management office    Building Personnel equipment Merchandising Office work : records.

Travel agency form The function of travel agency form  To register the transaction  To transfer the information  To present the data for controlling  To reduce administration error  To formulate the end product .

etc.Classification of travel agency office form Internal form Inter office memo  Inter office order  Sales department report. etc.    External form Service order  Travel voucher  Reservation form  Receipt  Invoice.  .

Utilizing form  The important reason of utilizing form The possibility for repetition  The possibility for getting uniformity  To be utilized as work instruction  The possibility to be implemented for mechanic process   The advantages of utilizing form To reduce the cost  To present the information need  To store the perfect and correct information and able to give the information quickly  To become an effective control aid (internal and external)  .

duplicating) Types of paper Size of form Cost of printing  Physical considerations     . inks.Consideration factors in designing form  Functional considerations       The aim (objective) of the form The information to be filled in The complete identification The logical items in accordance with the flow of steps The utilizing of space The number of copy to be needed Types of printing (letters.

buying power. and any other commercial information concerns with travel agency business. An estimate of your start-up expenses. about the area. List of references which are familiar with the business. including a projection of estimated sales. operating expenses and net earnings. median incomes.     . including cost of furniture. office equipment and other necessities. income.Consideration points in financing proposal A total description of the proposed venture. Include as many statistics.

The sources of capital for buying or existing travel agency     Own capital Equity capital Venture capital Bank loans :   Short term loans Long term loans .

 To provide a convenient location for the purchase of travel. . The two implications for the business of travel distribution :   The cost of setting up in business is comparatively small compared to other retailing business. At these locations they act as booking agents or as a source of information and advice on travel services. Therefore the travel agent does not carry “stock” of travel products. No obligation to dispose of products that has to be purchased and therefore has less brand loyalty towards a particular product or company than do other retailers.TRAVEL RETAILING The role of travel agents  Did similar to that of most other retailers in that an agent does not purchase travel for resale to the customers.

which will include :          Advising potential travelers on resorts. carriers. travel companies and travel facilities worldwide. . Making reservations for all travel requirements Planning itineraries of all kinds travel needs Accurately computing airline and other fares Issuing travel tickets and vouchers Corresponding by phone call and letter with travel principals and customers Maintaining accurate files on reservations Maintaining and displaying stocks of travel brochures Interceding with principals in the event of customer complaints.Travel agency operation The essence of travel agency operation on retailing business will be expected to cope with all the activities associated with the booking of travel.

The Negative and Positive view of travel agent  The negative view of travel agent      The remuneration in getting commission on sales A questionable on providers of information (particularly in the area of long-haul travel) Travel agency work still has of a glamour image for young people (lack of basic knowledge on travel agency business) A questionable on the grounds of its impartiality Displaying promotional in their shops not to play an active role on promotion. Increasing the sales of principals Agency commission able to compensate the expense in setting up sales offices and direct marketing cost.  The positive view of travel agent   .

telephone. and facsimile Printing and stationary Advertising and promotion Salaries and wages Bed debt Subscriptions Bank charges/interest on loans Net profit before tax = gross profit – total expenditure The only means of improving profitability is to increase efficiency by :  Achieving higher turnover at the same cost  Achieving similar turnover at reduced cost Total Net profit before tax .Monthly profit and loss account in travel agency Sales Less cost of sales Gross profit Expenditure : Administration Rent Light and cleaning Insurance Postage.

Travel agency operation will become more efficient.The impact of computer on travel retailing      Computer operation can be in isolation or to link with the reservation system of travel principals. Existing modern means of communication. Can change the atmosphere of travel retailing. Travel agency will need to become more knowledgeable in marketing and sales skill. .

vouchers and itineraries. Making immediate reservation. Rapidly processing documents such as tickets. Amendments and cancellations on such facilities with a correct manner. computer can manage the handling of :       The requires system of registering availability of transport and accommodation at short notice. . invoices. Providing accounting and management information. Quoting complex fares and conditions of travel.In travel agency operation.

Inability of travel agencies to meet increasing costs. Decisions of supplier not to use travel agencies as mediator.The future of travel agencies as retailer could be affected by :      The wide net links of using computers not only links between agency and principals. The automated selling by suppliers. . Deregulation of the environment.

Tour operator Most business calling themselves tour operators undertake a distinct function in the tourism industry. Carriers Accommodation Services Travel Agents Tour Operators Customers . accommodation and other services and combine them into a package which they then sell directly or indirectly to consumers. they purchase separate elements of transport.

      .Integrated services usually consists of : Transport service (aircraft seats) Accommodation at the destination Transfer between hotel terminal or intercity Excursions or sight-seeing Car hire on the destination Entertainment or performances services.

Maximize the utilization of the aircraft during its period of charter.Cost saving probability in order to increase profit     Chartering of entire aircraft instead of purchasing a block seats on a scheduled flight. . Productivity achieved through high load factors . Using time series charters.the number of seats on each aircraft actually sold as a percentage of total capacity. aircraft were leased over longer periods of time rather than for ad hoc journeys.

 . The profit as result from direct selling instead through travel agent as mediator (avoiding payment of agency commission). The profits achieved through the sake of ancillary service. The profit gets through the judicious “buying forward” of foreign currency at times where exchange rates are favorable. such as :       Duty free gods sold on board The package insurance policies The sale of optional excursions Car hire at the destination   The revenue achieved by the imposition of cancellation charges.Other revenues to increase profit besides commission The revenue as a result of the time lapse occurring between customers paying for their trip and the tour operators’ obligations to settle their accounts with their principles.

special reduction. a subsidized fare. etc. In developing a pricing strategy for package tours. the tour operator must take into account a number of variables which has influences on pricing. + To cover marketing and administrative cost   To cover the agency commission To cover the desired profit (gross) To cover marketing and administrative cost Or   To cover the desired profit (gross) On this matter. …………. such as : types of product.Tour pricing Total tour components costs per person …………. Add mark-up Selling price Mark-up can be in the calculation of :  …………. agency commission should be calculated separately. high/low season price. .

Domestic operators.Types of operator Mass market operators. Sell large numbers of inclusive bay air and/or coach. Those who assemble and sell inclusive tours to a destination within the country in which the tourist reside. Can operate as :  Domestic   tour for domestic people  Incoming tour for foreign people .

Types of operator

Specialist operators. May range from local travel agents organizing an ad hoc tour for thirty local passengers up to business offering long-distance inclusive tours to exclusive destination.Specialists may be subsidiaries of carries or accommodations, existing to provide a sales outlet for the organization’s products. It is convenient to group into :  Inclusive tours to particular destination  Inclusive tours from specific generating areas  Inclusive tours which is using a specific accommodation  Inclusive tours which is using specific transport  Inclusive tours offers a special interest people

The tour brochure

The brochure becomes the principle means of :
 

Informing people about the product Persuading people by “purveying dreams” to purchase it.

The production of the tour brochure represents a major proportion of a tour operator’s marketing budget. It is essential to see that this enormous expenditure achieves the intended results. The first task of a brochure is to attract the attention of the consumer. To gain attention, operators have developed a “house style” in which multi colors covers combine with an eye-catching symbol and house name across the top of the brochure to obtain maximum impact.

The brochure at least should contain the following information
    

     

The name of the firm responsible for the inclusive tour The means of transport used Full details of destination, itinerary and times of travel The duration of each tour Full description of the location and type of accommodation provided, including meals Whether services or representative are available abroad A clear indication of the price for each tour Exact details of special arrangements Full condition of booking and cancellation Details of any optional or compulsory insurance coverage Details of documentation required for travel to the destinations.

 Note : All reservation system is to get a clear. accurate and fast confirmation. .The tour reservation system The design of the system will depend on :  The manual system of reservation  The computer system of reservation  The selling system of product : Direct selling  Through retail travel agent  Through a combination of these two system.

for a big tour operator with a block of room system. Hotel negotiations to be distinguished into :   Small and specialist tour operator with a free sale agreement Long terms contract. The negotiation was made in order to earn contract with spell out the conditions of :      The release of unsold The cancellation The settlement Rate or special contract fare Ensure the available capacity.Negotiation with principles  The airline. .  The hotels.

Special facilities available or need Language spoken by hotel staff System of settlements and the contract rate System of payment for personal/guest’s account .On the negotiations process with hotel industries. Handling procedures and fees charged for port rage. tour operator seek to get clear on :        Reservation and registration procedures Accommodation requirements for any representatives or couriers.

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