11

Travel Agency Management (1)

Travel Agencies’ management&

Environment

Istvan Talabos MSc Senior Lecturer

BGF KVIK

2013

22

Issues

• Travel agency’s environment

• Legislation

33

Environment

• 1980 appr. 30.000 enterprises

• Travel Agencies appr. 15 (i.e. IBUSZ, Budapest Tourist, Express, Omnibusz, Utas Tours, Lokomotív Tourist, OTP-Penta Tours, Carlson

Wagon Lit)

• Legal environment – economical environment

44

After 1989/1990

• No. of enterprises – appr. 1.5 million (70 % operates)

• No. of Travel Agencies 1170 (2011 1st quarter)

55

Environment

Nature Socio-cultural environment Economical – market -

environment Cultural environment Technology Legal environment

66

Environment

Natural resources, (infrastructure, financials, HR)

Relating Tourism Industry (i.e. gastronomy, hoteliers, transportation)

Company strategy/competition Demand

Porter’s (1990) 4 determinants

(Tourist/Customer – sophisticated customer

77

Travel Agencies and their environment (3) (Porter rhombus model)

Market of Tourism

(Competition - domestic)

Technology Economical environment

Social & Cultural

Environment

Political environment

PotentialService providers Service providers

Products(Supplimenting) Travel Agents

88

Tourism should be treated as environmental, social, cultural and economical, legal environment. These „parts” are in strong relationship with each other – travel companies (agents and tour operators) work in this environment and both local and global processes should be taken into consideration.

.

European Union

99

• No tourism policy• (HOtel REstaurant CAtering – HORECA

general rules

• Legislation is in harmony: process of generating and bringing legal rules to understand and apply the rules of each other

• National legal rules apply and are in force

EU Rules

• Decision making is autonom• EU law is applied• Cooperation

Legal rules must be in harmony with the european rules i.e. acquis communautaire-rel)

1010

EU legislation

LAWS compulsory in all member states

•Regulations – most direct form of laws (as soon as passed – binding in all EU member•Directives: EU directives lay down certain end results that must be achieved in every Member State. National authorities have to adapt their laws to meet these goals, but are free to decide how to do so. (90/314 directive about the travel package ),•Decisions: Decisions are EU laws relating to specific cases.

specific parties are addressed – fully binding •EU recomendations and opinions – non compulsory (tax, employment etc.)

1111

National Sport Tourism Committee of the Hungarian Parliament

• Generating decisions, laws in connection with tourism – follow up in legislation

• Following up socio-economical effects of laws

• Control and supervison of the national tourism organisation. Initation of any actions

1212

National Tourism Committee

• Gives opinion about usage of Tourism Aid (Turisztikai Célelőirányzat) aims and supports, a education of torism experts socio-economical effects of tourism, any other questin in connection with tourism

• Gives opinion about the marketing strategy of touristic regions

• Keeps in touch with tourism related organisations

1313

National Tourism Board

• Main marketing organisation of tourism

• Budget for 2012 HUF 6.5 billion

1414

Levels of legislation

• LAWS

• Gov. Decrees

• Gov. Decisions

• Ministerial Decrees

1515

1616

Legal environment

• 1995. CXVII. law• 1996. LXXXI. law• 2000. C. law• 2003. XCII. law• 2005. CLXIV. law• 2006. IV.law Foreign Exchange• 2006. V. law IATA membership• 2007. CXXVII. law• 297/2001 (XII.27) Governmental Decree• 281/2008 (XI. 28.) Gov. Decree• 213/1996 (XII. 23. ) Gov. Decree• IATA – BSP rules

213/1996 – Personal– Financial– Tangible and intangible assets

281/2008

- Travel contract

1717

1818

Thank You

for

Your kind attention!