Tour Travel Prelims Reviewer

Download as pdf or txt
Download as pdf or txt
You are on page 1of 14

TOUR TRAVEL (PRELIMS)

Lesson 1: THE PHILIPPINE TOURISM INDUSTRY


Medium Term Philippine Development Plan (MTPDP) has given priority to the tourism sector
by promoting the Philippines as a premier tourist destination and investment site.
It deserves to be a top priority for national development because of the following reasons:
 It is a powerful and efficient industry;
 Its impact on social development are broad and deep;
 It creates strong peripheral benefits;
 The Philippines can compete and win; and
 It helps maintains cultural integrity, essential ecological processes, biological diversity and life
support systems.
Its impacts on social development are broad and deep because:
 It is both labor and capital intensive;
 It promotes skills and vocational development that can be exported; and
 It promotes a ‘culture of tourism’ through a safer and cleaner environment that benefits not only
tourists but also the entire community.
It promotes and creates strong peripheral benefits to other economic sectors and society as a whole
through:
 Tourism infrastructure spending;
 Catalyzing entrepreneurship; and
 Improving the image of the country in international trade and investment.
The Philippines can compete and win in developing its tourism sector because:
 It possesses ‘timeless’ competitive advantage of proximity to North-East Asia, especially China,
Japan, and Korea, and it has also world class natural attractions;
 It is relatively free of restrictions unlike the other sectors of the economy; and
 It can create sizeable niche markets.
 To harness growth in the tourism industry, focus, execution and coordinated leadership against
priority tourist markets and destinations are required.

Travel Agency - A commercial enterprise where a traveller can secure information and exper-
tise, get impartial counselling, and make arrangements to travel by air, sea or land to any point in the
world.
- Acts as an agent for different suppliers or providers of products and services.

Travel Management Companies/Travel Agency


Article of the Tourism Code of 1980 defines a travel agency:
A Travel and Tour Agency is an entity engaged in the business of extending to individuals or groups
travel services and assistance to include documentations, 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.

HISTORY OF TRAVEL AGENCY

THOMAS COOK
o Founded the agency by his name in November 1841
o Cook established 'inclusive independent travel.
o With John A Mason Cook, he formed a partnership and renamed the travel agency as Thomas
Cook and Son.

Function of a Travel Agency


1. Provide information and expertise.
2. Recommend destinations, products and services best suited to the needs of the client.
3. Provide assistance in securing travel documents.
4. Process travel arrangement.
5. Assist in case of refunds and cancellations.

Characteristics of a Travel Management Company


1. Retailer
2. Counsellor
3. Derives income from a pre-determined fixed commission dictated by suppliers or a professional
fee negotiated with client.
4. Charges fees for ancillary services.
Tour Operator and Travel Agency

TOUR OPERATOR – an enterprise regularly engaged in the business of inbound and/or local tour
operation such as making online reservations, arranging and booking for transportation and accom-
modation, handling and/or conducting tours for a fee, commission, or any form of remuneration.

TRAVEL AGENCY – an enterprise regularly engaged in the business of providing services such as
reservations/bookings, documentation of travel papers, sales and/or issuance of tickets and selling
of outbound tours for a fee, commission, or any form of remuneration.
ADMINISTRATION - Deals with the day-to-day management activities of the company.
Has 4 functions:
 General Administration
 Personnel
 Accounting
 Finance

OPERATIONS
 Core of the Travel Agency business
 Engaged in the efficient and effective delivery of the organizations services.
 For larger-sized TMCS operations are divided into 2:
1.Travel Operations
2.Tour Operations - This department has the following employees:
 Travel Managers and supervisors
 Reservations and ticketing officers and;
 Liaison Officers

The Travel Counsellor


 Provides all necessary information requested by prospective travellers
 Recommends products and services best suited to the travellers needs
 Keep updated on new travel information and trends.
 Fill out all travel information in the booking card for travel.
 Relay all changes and confirmations to clients
 Process refunds and processing fees
 Monitor processing of travel documents and insure that they are all in order prior to release to
clients.

The Reservations Officer


 Place all required reservations with different suppliers
 Follow up on reservations placed until confirmed
 To change reservations when itineraries are amended
 Look for alternative suppliers in the same level of service in case preferred supplier is not availa-
ble Monitor issuance of travel vouchers and tickets
 Act as back up to the ticketing Officer

The Ticketing Officer


 Correctly source or calculate fares when the need arises
 Issue air tickets manually or through the automated ticketing system
 Correctly issue purchase orders in accordance to clients itinerary
 Check the accuracy of travel documents
 Reissue tickets when required
 Act as a back up to the travel counsellor

The Liaison Officer


 Determines what visas and other documents are required for travel Check the authenticity of all
documents submitted
 Checks all relevant support papers.
 Insures that documents filed are released on time
 Arranges and coordinates appointments and visits to the various consulates and government of-
fices

SALES & MARKETING


Sales can either be walk-in or field sales
Marketing: everything that is done in order to attract or create awareness about the company.
Lead by the sales and marketing manager:
 Prepares annual marketing plans o Sets annual sales goals and develops working plans to carry
out these goals
 Participate in the preparation of the organization’s budget
 Decide on negotiated rates and concessions
 Prepare proposal letters and contracts
 Prepares and submits marketing and sales reports
 In charge of all marketing activities and attends tradeshows and fairs
 Maintain an updated clients and prospective clients and performs regular sales calls on major
accounts and suppliers.
Kinds of Travel Agencies
 Conventional, Full Service Agencies - these agencies sell it all: Air, Lodging Car Rentals, Rail
Travel, Cruise Tour, Tours and most other forms of travel packages. Customers can book and
receive advise by phone, email or visiting agency in person.
 Online Agencies - online agencies operate almost exclusively through their web sites. These
agencies concentrate on selling travel commodities such as air, lodging and car rentals. They do
also sell experiential products such as cruises and tours. A travel agent who works for the online
travel agency can explain their products thru phone or online chat.

Corporate Travel Management


 The travel agent like employees of these division are usually called corporate travel managers.
 Corporate travel management personnel have many duties. They do the following:
 Set corporate travel policy
 Plan meetings, conferences and convention programs
 Negotiate with suppliers
 Manage travel budgets
 Arrange personnel relocation and housing
 Communicate with management in other departments of the corporation

Lesson 2: What is the Tourism Industry?


 Tourism is generally regarded as the act of travelling to a different location, for either
business or pleasure purposes. However, it actually has quite a specific definition: the act of trav-
elling to another environment, for atleast 24 hours, but for no longer than one year, for purposes
related to business or leisure.
 A tourist is generally only classed as such if they stay in overnight accommodation situated in the
location they travel to. By its very nature, tourism involves a round trip, rather than travel in one
direction only. With this in mind, the tourism industry refers to all aspects of the service industry
that cater to tourists.

What is the Travel Industry?


 Travel refers to the act of moving from one location to another. This can refer to long -
distance travel, short-distance travel, overseas travel, domestic travel and various other forms.
Crucially, travel also includes both round trips and one-way journeys, and it covers a wide variety
of different travel purposes.
 The travel industry, therefore, refers to the numerous aspects of the wider service industry which
cater for the needs and desires of those who have travelled from one part of the world to another.
Government Sector

DEPARTMENT OF TOURISM
MISSION
The Department of Tourism (DOT) shall be the primary government agency charged with the re-
sponsibility to encourage, promote, and develop tourism as a major socioeconomic activity to gener-
ate foreign currency and employment and to spread the benefits of tourism to both the private and
public-sector.

STRUCTURE
Office of the Secretary
The Office of the Secretary provides leadership, direction, and substance to the overall operations of
the Department. It formulates policies, plans , programs, rules, and regulations; reviews and evalu-
ates the performance of the Tourism Master Plan and advises the President on all matters affecting
the tourism program of the country.

Tourism Promotions Sector


The Tourism Promotion Sector has the primary function of promoting the Philippines as a tourist
destination domestically and internationally. It devises integrated marketing and promotional activi-
ties such as information dissemination, public relations, special events, and related tourism pro-
grams. It likewise supervises the overseas field offices established to implement and enhance the
tourism development and promotion program of the Department in the international field.

Tourism Services and Regional Offices Sector


- The Tourism Services and Regional Offices Sector is tasked to ensure the pleasant entry, stay,
and exit of tourists. It formulates standards of quantity and efficiency for tourism-oriented establish-
ments, among others, done through an accreditation system. Tourist establishments' compliance to
policies are monitored to make sure that their facilities and services are operated and maintained
according to acceptable international norms. The Sector also supervises DOT's regional operations
established to implement the policies, plans, programs, and regulations of the Department and to
maintain the delivery of efficient and effective frontline services for the tourism industry.

Planning, Product Development and Coordination


- The Tourism Planning, Product Development and Coordination Sector is responsible for the formu-
lation and updating of the Tourism Master Plan, together with its component programs. The Sector
monitors the effective implementation of the Tourism Master Plan and, in coordination with the pri-
vate sector and other government institutions , develops and conceptualizes new products and in-
vestment opportunities designed to enhance tourist sites and facilities.

Internal Services Sector


- The Internal Services Sector ensures the smooth and legal functioning of the operations of the De-
partment through the provision of effective and efficient advice and services in the areas of person-
nel management, human resources development, general services administration, computerization
and information technology services, budgetary, financial and management services, and including
investigatory and advisory services.

TOURISM PROMOTIONS BOARD PHILIPPINES

An ISO 9001:2015 Certified Organization with Certificate No: CIP/5168/15/12/951


 An attached agency of the Department of Tourism, the Tourism Promotions Board (TPB) exists
to market and promote the Philippines domestically and internationally as a world-class tourism
and MICE destination, in strategic partnership with private and public stakeholders to deliver a
unique high-value experience for visitors, significantly contributing to increased arrivals, receipts
and investments to the country.
The TPB is responsible for:
 Marketing and promoting the Philippines domestically and internationally as a major global tour-
ism destination, highlighting the uniqueness and assisting the development of its tourism prod-
ucts and services, with the end in view of increasing tourist arrivals and tourism investments;
 Marketing the Philippines as a major Meetings, Incentives, Conventions and Exhibitions (MICE)
destination;
 Attracting, promoting, facilitating and servicing large scale events, international fairs and conven-
tions, congresses, sports competitions, expositions and the like;
 Ensuring the regular local and international advertisement of the country’s major tourism destina-
tions and other tourism, including Tourism Enterprise Zones (TEZ); and
 Providing incentives to travel agencies, tour operators, wholesalers and investors abroad capa-
ble of drawing a sizeable number of tourists and tourism investments to the country.
The TPB shall have all the general powers of a corporation provided under the Corporation Code.
Furthermore, it shall have the following powers and functions:
a) Organize the TPB in a manner most efficient and economical for the conduct of its business and
the implementation of its mandate;
b) Develop and implement a plan to market the Philippines as a premier tourist destination;
c) Direct and coordinate the resources and efforts of the government and the private sector in the
tourism and allied fields for the full realization of the tourism plans and programs;
d) Develop and promote the Philippines as a center for international meetings, incentives, conven-
tions, exhibitions, sports, medical tourism, and other special events;
e) Engage in the business of tourism and perform acts in consonance therewith, such as, but not
limited to, attending conventions and other events abroad in representation of the country, en-
couraging sales promotions and advertising, and implementing programs and projects with the
objective of promoting the country and enticing tourists to visit its tourism destinations and to en-
joy its tourism products;
f) Contract loans, indebtedness and credit, and issue commercial papers and bonds, in any local or
convertible foreign currency from international financial institutions, foreign government entities,
and local or foreign private commercial banks or similar institutions under terms and conditions
prescribed by law, rules and regulations;
g) Execute any deed of guarantee, mortgage, pledge, trust or assignment of any property for the
purpose of financing the programs and projects deemed vital for the early attainment of its goals
and objectives, subject to the provisions of the Constitution (Article VII, Section 20, and Article
XII, Section 2, paragraphs (4) and (5));
h) Receive donations, grants, bequests and assistance of all kinds from local and foreign govern-
ments and private sectors and utilize the same;
i) Extend loans through government banks and financial institutions, provide grants and other
forms of financial assistance for manpower training, heritage preservation, infrastructure develop-
ment, and other programs of the Department;
j) Obtain the services of local and foreign consultants, and enter into contracts locally and abroad
in the performance of its functions; and
k) Perform all other powers and functions of a corporation.

TOURISM INFRASTRUCTURE AND ENTERPRISE ZONE AUTHORITY


 The Tourism Infrastructure and Enterprise Zone Authority (TIEZA), formerly the Philippine Tour-
ism Authority (Filipino: Pangasiwaang Pilipino sa Turismo), is an agency of the Philippine nation-
al government under the Department of Tourism responsible for implementing policies and pro-
grams of the department pertaining to the development, promotion, and supervision of tourism
projects in the Philippines.
 The Act supports the establishment of Tourism Enterprise Zones (TEZs) established to be the
centers of tourism development in the country. TIEZA is mandated to designate, regulate and su-
pervise the TEZs established under this Act, as well as develop,manage andsupervisetourism
infrastructureprojectsinthe country.

DUTY FREE PHILIPPINES CORPORATION


 The Duty Free Philippines Corporation is a body corporate created to operate the duty-and tax-
free merchandising system in the Philippines to augment the service facilities for tourists and to
generate foreign exchange and revenue for the government, as established by the Tourism De-
partment under ExecutiveOrderNo.46 and the Tourism Act of 2009.

Mandates and Functions


 The DFPC shall be a body corporate to operate the duty - and tax - free merchandising system in
the Philippines to augment the service facilities for tourists and to generate foreign exchange and
revenue for the government, as established byte Department under Executive Order No.46.

 In the performance of its functions, the DFPC shall have all the general powers of a corporation
established under the Corporation Code, in furtherance of its charter.

 The DFPC shall have the exclusive authority to operate or franchise out stores and shops that
would sell, among others, duty. and tax - free merchandise, goods and articles, in international
airports and seaports, and in TEZs and ports of entry throughout the country in a manner that
(a) Is competitive with international standards;
(b) Effectively showcases Philippine culture, craftsmanship and industry; and
(c) Efficiently and effectively generates foreign exchange.

Republic Act No.6768 as amended by Republic Act No. 9174 " An act instituting a Balikbayan
Program"
 The Balikbayan Law, in recognition of their contribution to the economy of the country through
the foreign exchange inflow and revenues that they generate provides Balikbayans with special
taxfree shopping privileges in governmentowned andcontrolled-operateddutyfree shops.
 The law which is under the administration of the Department of Tourism includes a Kabuhayan
Shopping privilege allowing tax-exempt purchase of livelihood tools and the opportunity of avail-
ing the necessary training to enable the Balikbayans to become economically self-reliant mem-
bers of the society upon their return to the country.
 The program shall likewise showcase competitive and outstanding Filipino-made products.

Local Government Units

 The local government in the Philippines is divided into three levels: provinces and independent
cities, component cities and municipalities, and barangays, all of which are collectively known as
local government units (LGUs).
 In one area, above provinces and independent cities, is an autonomous region, the Bangsamoro
Autonomous Region in Muslim Mindanao.
 Below barangays in some cities and municipalities are sitios and puroks. All of these, with the ex-
ception of sitios and puroks, elect their own executives and legislatures. Sitios and puroks are of-
ten but not necessarily led by an elected barangay councilor.
 Provinces and independent cities are organized into national government regions but those are
administrative regions and not separately governed are as with their own elected governments.

The LGU is empowered to regulate the establishment and operation of travel agencies in the context
of the stated paragraph.

“Regulate the establishment, operations and maintenance of cafes, restaurant, beer houses, hotels,
motels, inns, pension houses, lodging houses and other similar establishment including tourist
guides and transports.

What is the role of LGU in tourism? LGUs play a major role in a community's development,
provide the links between the people and government, address its community's problems and con-
cerns, enforce policies and hold influence over its communities.

Private Sector

Six Principal Industries directly involved in Tourism:


 The Transportation Industry- land, sea, air travel
 The Hospitality Industry - hotels, resort, inn, motels, lodging/pension houses, hotels,
apartments
 Food and Beverage - restaurants, travel/institutional foodservice, disco
 The Activities and Attraction Industry - parks, clubs, dive shops, museums, theatres
 The Travel Trade- tour guides, operators, travel agents
 Other Private Sector Entities

Industry Suppliers
Lodging Industry
The hospitality industry encompasses a wide range of services and activities such as lodging, res-
taurants, food services, and convention centers. The lodging sector consists of hotels, motels, re-
sorts, and bed and breakfasts.

Food and Beverage Industry


The Philippines’ rapidly growing food & beverage industry is one of the biggest contributors to na-
tion’s economy making up about half of its manufacturing sector and contributing about 23-24% of
the country’s GDP. The Philippines is one of Asia’s largest producers of food, with the value of food
processing sector exceeding 24 billion EUR. Given the Philippines’ government’s commitment to fur-
ther developing the food and beverage industry as one of the priority industries and opening it further
up to foreign investments, the Philippines’ F&B industry has become more attractive for European
SMEs.

Attractions and Activities


A key component of the tourism industry is attractions, which offer visitors a chance to explore the
sights, facilities and wonders of their destination. Attractions generally include historic sites, heritage
homes, museums, halls of fame, art galleries, botanical gardens, ski hills, aquariums, zoos, water
parks, amusement parks, casinos and cultural attractions.

The Recreation and Entertainment industry includes myriad activities that range from bird
watching and salmon fishing to horseback riding, white water rafting, golfing, wilderness trekking and
educational visits to entertaining stops. Regardless of size, these venues need people to work in gift
shops and restaurants, as well as help maintain the facilities, manage the operations and promote
the attractions.
Attraction Industry
These are nature based or man made used for tourism product development. There are three main
types of attractions:
1. Natural attraction – are nature based like oceans, lakes, mountains, beaches, climate, wildlife,
rivers etc.
2. Cultural attractions – are secondary elements of attractions comprising the way of life of indige-
nous community in a particular area (natural setting) having not been highly affected by moderniza-
tion. The cultural elements include rural village, remote setting, architec-
ture,dress,art,handicraft,beliefs,religion,language,localfoodetc.
3. Special attractions – are tertiary element of attraction consisting of built environment by man
e.g. museums, entertainment centers, aquariums, athletic stadiums, theme parks, casinos and gam-
bling centers, zoos and orphanages. Hotels and camping sites can also be categorized as special
attraction.

Examples of recreation activities are walking, swimming, meditation, reading, playing games
and dancing.
Leisure refers to the free time that people can spend away from their everyday e.g. work and
domestic tasks) to rest, relax and enjoy life.

Lesson 3: INTRODUCTION TO TRAVEL AND TOURISM BUSINESS


HISTORY OF TRAVEL AGENCY

First Steamship Agent


In the year 1822, Robert Smart who hails from Bristol, England, has declared himself as the first
steamship agent of all time. His first operation was booking passengers on steamers to various ports
in Bristol Channel and Dublin, Ireland.

The First Travel Agency to Organise a Train Tour


 During 1841, Thomas Cook embarked on a special train from Leicester to Loughborough
(England). The train trip was a 12-mile journey. After the success of the first train tour, on the
same year on 5th January, Thomas Cook has arranged a train which carried 570 passengers on
a round trip. The train trip costs 1 shilling per passenger. This is believed to be the first public
train tour that is advertised to the public. In 1943, he organized a trip from Leicester to Derby in
England; on this tour he carries 3000 school children. During this year, itwas the largest group
tour.
 Therefore, Cook was the first representative of a train travel agent. Since then, Thomas Cook’s
idea has alarmed and his effort to organized a train tour spread across the world.
 Cook continued to provide a train tour and later expanded his concept to the United States and
around the world. Eventually, his company grew quickly.
 Due to his past efforts, until today the company continues to be one of the world’s largest travel
providers. He is remembered as the world’s first organized travel agent but also the founder of
the travel and tourism business as it is today.

Individual Inclusive Travel


 In the history of travel agency, Thomas Bennett was the first person to specialize in individual
inclusive travel. In fact, he was born in 1814 and lay down his last breath in 1898. He is from Os-
lo, Norway. To visit the British notables, Bennett often organized an individual tour in Norway.
 Gradually, he established the business as a “Trip Organizer” in 1850. The main aim of the busi-
ness was to provide individuals tours.
 The tour includes travel plans, carriages, and a traveling kit. Apart from providing the individual
tour, Bennett arranges in advance for the horses and hotel rooms for his customers.

Travel Agent
 Travel agents help their clients make travel plans. In addition to booking reservations, they assist
customers in choosing their destination, transportation, and lodging and inform travellers of pass-
port and visa requirements, rates of currency exchange, and import duties.
 Wholesale travel agents specialize in organizing tours and then selling them to retail travel agen-
cies who in turn, sell on to travellers. Many tours also include optional side trips and activities
that have to be planned carefully. Wholesale travel agents must have good marketing skills to
interest retail travel agents in the tours they have developed.
 Retail travel agents offer advice to the general public. They provide travellers with timetables and
travel literature, compute fare costs and make reservations, and sell tours developed by the
wholesale travel organisations. In large travel agencies, agents may specialise in specific geo-
graphic areas; in smaller agencies, travel agents have a broader range of responsibilities.
Features of Travel Agents
1. It serves as a link between the leading travel suppliers and the travel agency
2. Negotiates with travel suppliers at the best prices for most reservations.
3. It combines various elements of travel such as hotels, airplanes, trains, and land travel to create
a package trip.
4. Thus, the travel agents research the visitors’ preferences to determine the changing trends. It
markets and promotes its products through advertising, etc. to increase sales volume.

Functions of a Travel Agency


 It Provides Travel-Related Information The travel agent provides information about hotels, tourist
places, transport, etc. Hence, travel agent staff should have sufficient knowledge of travelrelated
services.
Planning Tour Itineraries
 Once the travel agent receives all the travel preferences made by the client, the travel agent de-
signed the tour to meet the desire of the client. The tour can be a week or a month depending on
the client’s preferences.
Connection with Tourism Suppliers
 Travel agents build a good relation with tourism suppliers. Therefore, the travel agency must
have a cordial relation with the. The suppliers are transport, hotels, insurance, tour operators,
etc. The travel agency contacts these suppliers on behalf of their clients to get a heavy discount
on booking.
Tour Costing
 After the travel agents negotiate for the services provided by the tourism suppliers, the next step
is tour costing. The cost of the tour will depend on the individual’s tour or package tour. General-
ly, the inclusive tour cost much higher than an individual tour.
Ticketing
 Ticketing is one of the most challenging functions of a travel agent. So, the agent must know the
flight schedule of various flights. They must be aware of the classes of travel and the fare price.
Being up to date on the flight schedule is one of the most vital for travel agents.
Documentation
 The travel agents must know about the visas, passport, insurance, and all travelrelated docu-
ments. There are certain places that need to be taken a special permit for the tourists. As a re-
sult, the agent must have knowledge of the restricted places and how to obtain the permit.
Reservation
 Once the client made an initial payment, the travel agent books the airline’s seat for their client.
The classes of travel will depend on the choice of the clients, higher class travel will cost more to
the client.
 To book the airline seat, the agent must know the class codes of each airline and its seats. Class
codes represent different types of seats and classes.

Key Differences Between Travel Agencies and Tour Operators

 Travel agents sell the holiday package purchased from different tour operators. Tour operators
take care of the clients according to the package description like airport pick up, meal facilities,
sightseeing, offering other travel destinations, etc.
 Tour operators are often specialized in one, or very few countries. But travel agents can deal with
most destinations.
 A travel agent earns less profit, usually a small mark up or commission based on the travel
they’re booking. Tour operators have the potential to earn a huge profit, as they set their own
price tag.
 Travel agents can’t work without the help of tour operators. But tour operators can work without a
travel agency being that people are now more likely to contact tour operators directly for a holi-
day package.
 There are different kinds of training programs available to start a travel agency. In comparison,
the tour operator requires proper business management skills.
 Travel agents can give advice about travel documents like passports, visas etc. Tour operators
are great for advice about legalities on the ground (like if you’re an e juice user and want to know
where you can smoke, or if you have tattoos and want to know if they’re taboo in certain coun-
tries).

Various Types Of Travel Agencies


The Travel agencies are classified on the following basis:
On the basis of distribution chain According to the International Institute for the Unification of Private
law (UNIDROIT), a travel agency can be of two types.

1. An Intermediary Travel Agency: This type of travel agency undertakes as intermediary to act for
another, in obtaining either a journey or a sojourn possible in return for the price for the services.
2. An Organizing agency : An organizing Travel Agency undertakes to arrange for the general pub-
lic , a journey or sojourn comprising a series of services.
On the basis of FUNCTIONS
Retail Travel agency:
 Retailing mean to sell in small quantity of product / service to the end users. Retailing refers to all
or any the transactions which involve sale of products or services to the last word consumers. A
retail travel agency is a middleman between producers and tourists who procures goods from the
producers /wholesalers and sells it to the final consumers.
 They form a vital link in the channel of distribution of products/ services because without travel
agency the products/ services would not sell nor would it is possible for consumers to buy ser-
vices of their choice. They have a way stronger personal relation with the consumers and deal
directly with the people of various tastes and temperaments.
 They form the last link in the chain of distribution and give the final selling price to the product/
service. Thus, the retail travel agencies provide important services and solve the problems of the
producers and wholesalers on one hand and the tourists on the other hand.]

Wholesale Travel agency:


 As the name indicates, a wholesale travel agency operates at large scale and deals in bulk pur-
chase of products/ services and retail through the retail travel agency.
 Wholesaler may be defined as the middleman who operates between the producers (from whom
they purchase goods) and the retailers (to whom they sell goods). Wholesaler refers to any indi-
vidual or business firm selling goods/ services in relatively large quantities to buyers (retailers)
other than the ultimate consumers.
 Thus, the producers who sell their products directly to retailers may also be regarded as whole-
salers. The specialized knowledge and skill of wholesalers increase the efficiency of the distribu-
tion network. The wholesalers provide important services and solve the issues of both the manu-
facturers and therefore the retailers.

On the basis of TOURISM flows:


 Outbound Travel Agency: The outbound travel agencies are those travel agencies which
provide product and services to tourists want to visit abroad.
 Generally, these travel agencies provide convenient location for the purchase of travel product/
service besides offering expert product knowledge and ancillary services.
 Handling Travel Agency / Inbound Travel Agency: This is very old form of travel agency
which is specialized at a particular destination or location. This travel agency plans and executes
of travel packages at destination level. In fact, a handling travel agency represents tour operators
at a destination and supervises the delivery of local suppliers.

On the basis of BUSINESS or LEISURE:


 Leisure Travel Agency: These types of travel agencies manly serve holidaymakers with
package tours.
 Business Travel agency: Today, business travel has become core area for many travel agen-
cies. Business travel agency arrange travel for business travelers and corporations and provide
extra services such as reporting and travel management.

On Basis of Level of SPECIALIZATION:


 Niche Travel agency: Due to the emergence of new form of tourism like ecotourism, Niche
travel agencies have evolved. Niche travel agencies and usually small independent travel agen-
cies and specialized in certain products or certain suppliers.
 Mass Travel agency: Mass travel agencies are big travel agencies often large scale/ multi-
national travel companies. These travel agencies generally offer wide range of destinations and
products/services having large supplier network. These travel agencies operate on economies of
scale.

On the premise of GEOGRAPHICAL COVERAGE:


 Multinational: Multinational travel companies present in many countries, either through
own outlets or partnerships. A multinational travel company is one which is incorporated in one
country (called the house country); but whose operations extend beyond the house country and
which carries on business in other countries (called the host countries) additionally to the house
country. Generally, multinational travel company has it’s headquarter within the home country.

 National: agency is serving the requirements of shoppers nationwide. In fact, when a trav-
el company conducts its affairs in its home country is thought as national agency. A national
agency is commonly taxed differently than a distant agency and should be required to pay duties
or fees on the importation of its products/ services. Typically, a national agency is in a position to
work business in other states or other parts of the country as per the articles of association.

 Regional: when a agency is working at regional level is usually called regional agency.
These travel agencies are specialized in certain countries and offer both leisure and business
products/ services.
On the idea of Number of OUTLETS:
 Multiples: Multiples travel agencies are those travel agencies which operate nationwide
and owned by large agency. These travel agencies are large scale and think about package holi-
days. These travel agencies have a sequence of establishments spread throughout the country
under one name. Thus, these travel agencies have a large number of clients.
 Mintiples: Mintiples travel agencies target a selected region with multiple business line.
These travel agencies have number of branches scattered throughout the local area but some-
times operate under different trade names. These have head offices and will acquire independ-
ent firms to show them into one in all their outlets.
 Independent Agencies: Independent travel agencies usually cater for a special or niche
market. Independent agencies have one outlet and frequently specialized in niche markets.
These travel agencies and frequently small travel agencies and specialized in certain products or
certain suppliers like eco-tour package, adventure tour package or others.

On the idea of BUSINESS MODEL:


 Offline Travel Agency: the sort of agencyis that the oldest sort ofagency. Generally, offline
travel agencies operate through physical offices and face to face customer service/product.
 Online Travel Agency: Online agency serving customers through World Wide Web chan-
nels. Online agency (OTAs) could be a relatively recent innovation and may be a major growth
sector within the global distribution system. OTAs are a style of distribution mechanism where an
oversized number of sellers and buyers are connected via an online site provided by an inde-
pendent third party.

The leading international OTAs are:


 Travelocity, owned by Sabre. Travelocity includes the brands lastminute.com, World
Choice Travel and Zuji. within the corporate market, Sabre operates through the GetThere.com
and TravelocityBusiness.com OTAs
 Orbitz which operates the subsequent OTA leisure brands:

On the idea of BUSINESS SIZE TRAVEL AGENCIES are often categories like:
 Small Scale Travel Agency: the little scale travel agencies are those agencies which treat
small scale, restricted to a little segment of the tourism market and to a narrow range of products.
Small scale travel agencies are very large in number but account for atiny low portion of the over-
all retail tourism business.
 Medium Scale Travel Agency: Medium-scale agency business is that the outgrowth of a suc-
cessful small scale agency. A agency business with 50 or fewer employees is mostly considered
small, while one with 50-150 employees is taken into account to be medium-sized.
 Large scale Travel Agency: Large scale agency is that business operation whose operates
at large scale, having an outsized segment of the market and have a good range of products/
services.

On the idea of FORM:


 Sole Proprietorship: when a agency business is owned, managed and financed by one
man, it’s known sole proprietorship agency. In fact, its debt, obligations and taxes, are the own-
er’s personal liabilities, and income from a proprietorship is taken into account the owner’s in-
come. this kind of agency is straightforward to begin and simple to dissolve.
 Partnership: agency being seen on a partnership basis is jointly owned by two or more
individuals. In other words, when two or more persons agreed to contribute money or money’s
worth and sharing profit/ loss as per the agreement is knowledge partnership.

On the Bases of SERVICES:


 Full-Service agency: A full-service agency could be a agency which offers s all services / prod-
ucts to both international and domestic tourists. Its operation includes every kind of tour packag-
es like holiday and business travel on individual or group based. Further, a full-service agency is
also small or large scale concentrating on both leisure travel and business travel.
 Corporate/ Business agency: A Corporate/ Business agency are specialized solely in ser-
vicing the travel needs of the business or corporate clients. Generally, the merchandise line of
corporate agency includes business / MICE and incentive travel.
 In-House agency: In-House Travel Agencies are growing these days; and in house agency is
simply diversification of product of the many large scale companies to help the corporate to pre-
pare MICE / incentive travel. However, these travel agencies are differ from the company agency
within the sense that they work with only 1 corporate account doing mainly business travel but
also handling the leisure side for corporate clients. The Ashok Tour and Travel is that the best
exampleof in-house travel of ITDC.
 Speciality Agencies: A speciality Agency because the name indicates is specialised in an
exceedingly particular market, destination or product. These travel agencies are the results of
specific market needs, serving the wants of market segments like senior citizens, incentive
groups or adventure travellers.
Types of Tour Operator
 The tour operator business is highly competitive as companies try to get a large share of the in-
ternational and domestic markets they operate in. In order to better navigate the landscape, you
need to understand where you stand in that market.
 We all know that a tour operator is one who packages key components (or all) of a trip, markets
it, sells it to a traveler or tourist, and handles the entire tour operation.
 There are five main categories of tour operators that you could fall into: inbound tour operators,
outbound tour operators, domestic tour operators, receptive tour operators, and ground tour oper-
ators.
 Inbound Tour Operators (AKA Incoming Tour Operators) bring tourists into a country as a
group or via individual tour packages. They handle all arrangements in the host country; and the
types of tours they curate are specifically for non-residents touring the country.
 Outbound Tour Operators work within their countries to take travelers to other countries.
They are tour operators who market their tours for international destinations, either for business
or leisure travel.
 Domestic Tour Operators are those that put together inclusive tour packages and sell
them to domestic travelers. In other words, they are tour operators who provide travel packages
and tours within a tourist’s native country.
 Receptive Tour Operators (RTOs) provide tourism products to tour operators inother mar-
kets (as a business-to-business relationship). Specifically, RTOs sell tourism products, whether
they are sold in a tour package or alone, to tour operators and/or travel agents. They are essen-
tially wholesalers and they don’t sell directly to the public.
 Ground Tour Operators they are however different from domestic tour operators in that they or-
ganize tours for incoming tourists on behalf of an inbound tour operator (and sometimes, out-
bound tour operators).

TYPES OF TOURISTS
Organizational Structure Of Travel/Tour Company

Benefits of Using A Travel Agent


 Travel is their expertise.
 The #1 benefit of using a travel agent when it comes to booking your family travel is because
travel is their expertise.
 Much like you would hire an electrician to handle a wiring issue, or a financial planner to help
manage your money, you should turn to a travel professional when you’re in need of assistance
with your travels.
 Travel agents are trained to know, understand, and adapt to all different forms of travel.
 They research information on their client’s travel plans and relay important details including travel
advisories, recent news, weather conditions, and required documents for your destination.

 Destination knowledge.
 Travel agents uncover new destinations and are constantly on the lookout for the best trips and
travel recommendations.
 Likewise, they are the best resources to contact when looking to book unique places to stay inthe
USA and beyond!
 Not only do travel agents travel the world to serve as a resource for their clients, but they have
an abundance of other travel-related resources to answer your questions quickly and correctly.
 Their recommendations cater to various travel purposes, whether it be family, group, or multi-
generational leisure or business-related travel.

 Convenience
 Travel agents offer the convenience of having every aspect of your vacation or trip pulled togeth-
er in one comprehensive plan.
 This includes researching and suggesting destinations, as well as arranging for flights, accom-
modations, airport transportation, and excursions.
 By doing so, all of the guesswork is taken out of these selections and your final details will be
available in one hub of information provided to you by your travel agent.

 Cost savings
 Many people might be hesitant to work with a travel agent because they think itwill cost them ex-
tra money.
 They may also assume that they’ll spend more money working with a travel agent than when
booking vacations on their own.
 The fact is that travelers do not pay more for vacations when working with a travel agent and in-
stead, often save more money than they would ifbooking online.
 Not only do travel agents have access to exclusive deals, but they keep track of current vacation
promotions, can advise you on the best time to book, as well as calculate the value of what you
will receive.
 Relationships
 The relationship you’ll form with your travel agent, as well as their relationships with other agents,
are two of the benefits of using a travel agent.
 Through getting to know you, a travel agent will honor your personal vacation requests and hand-
pick its details to tailor to your needs.
 The relationships that travel agents have with properties and other travel professionals will get
you into incredible experiences and save you from unknowns.

 Travel assistance
 One of the best benefits of using a travel agent is the travel assistance that you will get in work-
ing with an actual person, versus the Internet.
 During our recent family vacation to Mexico, our travel agent was able to help our large group
deal with last-minute flight changes and staggered arrival times.
 The personalized attention that we received was an essential component to the success and
overall enjoyment of the trip.
 Quite simply, when working with a travel agent, they take care of everything.
 From the moment you set foot in the destination to the moment you touch the ground back home,
dedicated travel assistance is an undeniable benefit of using a travel agent.

 Decreased stress
 Another one of the top benefits of using a travel agent is that they always have your back!
 Travel agents exist to assist their clients in making travel as smooth and as stress-free as possi-
ble. In the rare case that something on a trip doesn’t go as planned, travel agents are there to
resolve the problem, so that you can continue to relax and enjoy.
 Not only that, but self-directed internet searches provide overwhelming amounts of information.
 To make a trip extra special it’s best to have someone who knows how to connect all that infor-
mation and turn it into an itinerary that is seamless and stress-free.

Market Trends and Travel Agency Business Scenario:


 Tangible factors that attribute to the gradual decline of travel agency business:
1. Shirking airline commissions beginning in 1995 continuing 2002.
2. The Internet
3. Airline now attempt to bypass travel agents 4. Due to world pandemic Covid 19

You might also like