1 The Philippine Tourism Industry.pptx

7/27/2019 1 The Philippine Tourism Industry.pptx

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RSTOIMU NYURDIST

TOURISM INDUSTRY


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The Philippine Tourism Industry

The tourism industry is a composite of

industries and entities, both PUBLIC and

PRIVATE. Involved in the PLANNING, DEVELOPMENT,

MARKETING, SALE, OPERATION and

EVALUATION of destinations, product and

services that cater to the needs of the

travelers, both foreign and domestic.


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~ THE ROLE ~

Public Sector vs. Private Sector

In its broadest sense,planning and developmentof destination

The marketing of the

Philippines and its variousdestinations

The delivery of tourismservices

The evaluation of tourismresult

In it narrowest sense,planning and developmentof a specific tour product

The marketing and sales of

specific products andservice

The operation of tourproducts

The delivery of tourismservices

The evaluation of tourismresult


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The Landscape of the Tourism

Industry

The Government Sector

Department of Tourism

Philippine Convention &

Visitors Corporation Philippine Tourism Authority

Local Government Units

Other National Government

Units

Financial Institutions

Education and Training

Institution

The Private Sector

Transportation Companies

Lodging Industry

Food and Beverage Industry

Attraction & Activities

Industries

The Travel Trade

Other Private Sector Entities


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The Government Sector

responsible for the formulation of tourism

policies.

Provides guidelines for the development of

destination, and regulates the industry, in

collaboration with other government

agencies.


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Four Government Agenciesdirectly involved in tourism industry

1. The Department of Tourism

2. The Philippine Convention & Visitors

Corporation

3. The Philippine Tourism Authority

4. Municipal, City and Provincial Local

Government Units


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Department of Tourism The national governments organization overseeing

the countrys tourism industry. Its primary obligations are:

A. To assist in coordinating the plans and actions of

various government instrumentalities in tourism

matters;

B. To discharge the governments responsibilities

arising from treaties, agreements and other

commitments on tourism and travel;C. To provide such other public sector services to

the tourism industry as well as the formulation

of standards and the compilation of statistics in

tourism matters.


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Department of Tourism

Organizational Structure


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The Private Sector

1. The Transportation Industry

2. The Hospitality Industry

3. Food & Beverage Industry4. The Activities & Attractions Industry

5. The Travel Trade

6. Other Private Sector Entities


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Travel Agency Article 243 of the Tourism Code of 1980 defines a

travel agency as follows:

a travel and tour agency is an entity engaged inthe business of extending to individuals or groups,

travel services and assistance to includedocumentation, ticketing, booking for

transportation and/or accommodation;arrangements, handling and/or conduct of tours

within or outside Philippines, whether or not for afee, commission or any form of monetary

consideration.


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Travel Agency The Traditional Way

A travel agency, in its traditional role as agents

for principals and travel services providers is

defined as follows:

a commercial enterprises where a traveler can

secure information and expertise, get

impartial counseling, and make

arrangements to travel by air, sea or land, toany point in the world.


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The Traditional Linkage

Supplier

MiddlemanTravel Agency

Traveler


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Supplier

MiddlemanTravel Agency

Traveler

As middleman the agency

collects an agents commission

from the supplier. This

commission is normally defined

as a rate-minus.

Alternately, the agency is allowedto unilaterally mark up the net

cost given by the supplier. This is

known as net-plus.

In other words, this is done, in a

hidden and subjective way that is

bestprice driven.


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Travel Agency The New Way

The travel agency acts as apartnerto both the

supplier and traveler.

It provides the individual traveler with the

most suitable suppliers based on the travelers

needs, convenience and price.

They examine and evaluate the travelers

preferences and budgets and determines the

best travel arrangement.


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Traveler

SuppliersTravel

Agency

Travel agency manages all of the travelers needs and services in

his/her trip and ask for a professional fee described as cost-plus.Cost-plus is the opposite of rate-minus.

Cost-plus is different from net-plus.

cost-plus is open while net-plus is hidden from the client.

Cost-plus is the new trend, the new way.


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Function of a Travel Agency


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1. Provide information and expertisehow to get there

where to stay

what to do


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2. Recommend destinations,products and services best suitedto the needs of the client.


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3. Provides assistance insecuring travel documents


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4. Process travel arrangements


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5. Assist in case of refunds andcancellation


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Sources of Sales and Revenues

1. Negotiated professional or handling fee

(cost-plus)

2. Fixed commissions n regular fares (rate-minus) or reasonable mark up on net

fares (net-plus)

3. Service Fees4. Production incentives and rebates


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Activity Time


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SECRETARY

UTILITY

PERSONNEL

ACOUNT

EXECUTIVE

RESERVATION &

TICKETING


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ADMINISTRATION

OPERATIONS

MARKETING & SALES


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OPERATIONS DEPARTMENT

The players:

1. The Manager

2. The Travel Supervisor3. The Documentation Supervisor

4. The Travel Counselor

5. Counter Staff6. The Reservation and Ticketing Officers

7. Liaison Officer


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MARKETING AND SALES

The Players:

1. Marketing Manager

2. Product Development Officer(Research)

3. Sales Manager

Counter Sales

Field Sales

Account Executive (Sales Agent)


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Setting up a Travel Agency

It requires a legal personality before it

can legally transact business.

Three types of Business establishments:

1. Sole or Single Proprietorship

2. Partnership

3. Corporation


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Create Your Own Travel Agency

Name

Organizational structure

Services Offered

Documents

1 The Philippine Tourism Industry.pptx