Functions of a Travel Agency

8/4/2019 Functions of a Travel Agency

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FUNCTIONS OF A TRAVEL AGENCY1.It provides information and expertise in a country

2.It impartially recommends particular

destination,suppliers,products and services best suited

to the needs of the travelers.3. It provides assistance in securing travel documents,

such as passport and visas and immigration clearances.

4. It processes travel arrangements by placing

reservations, obtaining confirmation and issuing

corresponding tickets or tour vouchers

5. it assists in cases of refunds and cancellation.


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Characteristics of a Travel management Company (

TMC )

1. Retailer- Transacts business and sells directlect to the

end user, TMC/ Travel agencies are retailers, since theirclients are the end users. The TMC/trave agentsare the

retail part of the distribution.

2. Act as counselor to the enduser and as agent and/ orintermediary for the suppliers.


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3, Derives revenues from a predetemined fixed

commision dictated by the suppliers of travel

services or from a professional fee negotiated

with the client. Occassionaly,when provided wit

net rates, unilateral mark-ups also provide

revenues; and

4. Charges fee for ancillary service such as travel

documentation.


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A Travel Agents Value

There are many reasons why its good ideafor consumers to book through a travel

agent. The following sections list some of

those reasons.

1. The travel Agent is more skilled at finding

the best travel solution;

2. A travel Agent can find the best deal;

3.A Travel agent saves time and trouble;

4. A travel agent is accountable;


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5.A Travel Agent knows suppliers better;

6. A Travel Agent knows destinations better;

7.A Travel Agent is largely impartial;-most

consumers dont trust advertising, the

agency is able to solve almost any clients

needs;


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Introduction to Tourism- An Overview about

the Industry


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KINDS OF TRAVEL AGENCIES1. Conventional,full service Agencies-these

agencies sell it all: air, lodging, car rentals,

cruises, tours and most other forms oftravel packages. They tend to sell mostly to

people in their own geographic community;

a. They may be wholly owned by a largeagency chain ex. American Express

-Loclal Chain/ regional chaic.


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b. Travel agencies may be francies that are owned

by individuals or families but are affiliated with a

large brand, to whom the owners pay an annual

franchise fee or percentage of profits.ex.Uniglobe

c.Travel Agencies may be affiliated with a

consortium-it is a group of agencies that workstogether to obtain and develop marketing tools,a

ccounting systems,training systems and higher

commissions from select, preferred suppliers.


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d. Travel Agencies may simply be

independent

4 H b d i


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4. Home-based agencies-

Types of homebased travel agency

a. The agents like working from home because of

the independende and flexibility it affords.,Itrequires less office space and fewer resources.

B. The owners of a mom and pop /independent

agency may decide that the overhead costs of aconventional storefront location are financially

unfeasible but that working out of a home

location is viable and affordable. So they decide

to operate the agency entirely from home.


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c. An agency may have a part-time seller of

travel, who prefers to work out of his or her

home. Such outside agents may ahve afull

time job to another field and sell travel to

their circle of friends, relatives, and co-

workers. The agency with which the seller

is affiliated is usually called a host agency.


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Issuing a ticket, collecting money,using the telephone,talking to

clients,using a computer.etc.


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1. Using the telephone

a.prepare what we intend to say;b. list the points we want to discuss;c.have pen and papers at hand to write

down essentialsd. introduce the name of the agency and

greet the clients;e. the greeting should be short

f. need to action calls quickly


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g. your voice is the key factor here, it mustsound warm and friendly but not emotional

,try to keep a steady pitchh. the aim is to communicate as easily

and as simply as possible;

i. a call may take only a few seconds orfew minutes

2.-Sales technique in the OfficeFace to face selling


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Products benefits to the clients;1.air ticket2.accommodation

3.activities4.insurance5.visa assistance

6.passport assistance


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3.Identifying the clients needs

It is important to know whypeople are travelling:

4. Closing the sale-investigatingthe clients needs and listeningto what the client has to say.


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Reservations have been made, andalternatives offered if the originalrequest is not available. You have towon clients confidence and sold theholidays.

Collect the payment, complete the

booking form and attend to all otherformalities, like visa passport, health

req. insurance and so on.


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5. After Sales Service-Recommend your travel agencyto their friends and family

members.6. Client relations

7. Time management8. Follow up to make sure thetrip went well.


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BASIC DIFFERENCES BETWEEN TRAVEL

AGENTS AND TOUR OPERATORTRAVEL AGENTS TOUR OPERATOR

1. Retailers. Transact businessdirectly with the travelers.

2. Act as counselor/advisersto the traveler and are agentsfor the supplier.

3. Revenues are fixed and pre

determined by thesuppliers/vendors

1. Wholesalers. Deals primarilywith the retailers

( travel agents )

2. Act as middlemen to thesuppliers.

3. Have variable but limited

revenues income and profitmargins.


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differencesTRAVEL AGENT TOUR OPERATORS

4. Charge fees fordocumentation and ancillaryservices

5. Are agents of thesuppliers/vendors

4. Sells optional products andservices and makes use ofdeposits.

5. Capitalize on cost-savers.


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THE TRADITIONAL LINKAGE

VENDOR MIDDLEMEN VENDEE


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Traditional way

The travel agency act as the middlemen between

the vendee and the vendor. The vendee

communicates with the middlemen,and the

middlemen communicates with the vendor., and

vice versa.. The vendor and the vendee do not

communicate with each other. The middlemen

reacts to the needs of the vendee and subjectiveway that is best price driven.


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VENDEE

TRAVEL MNGT.COMPANYVENDOR


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THE EMERGING LINKAGES

The Travel Management Company- an entitywhere in all parties are treated as partners,

equally sharing data and information,

andmutually benefiting from opencommunication and information exchange. It acts

also as partner to both the vendor and the

vendee. Itdoes not act as an agent. It examines

and evaluates the vendeespreferences and

budgetsand determines the best travel

arrangements.


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Professional fee described as cost-plus. In short it

provides the best travel solution for a

professional fee.Rate minus- the traditional way of handling the

business of travel.

Net plus- hidden from the client.


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PRIVATE

SECTORS

6 PrincipalIndustries

directlyinvolved inTourism are:

1. The Transportation Industry-

2. The Hospitality Industry-

3. Food and Beverages

4. The Activities and AttractionsIndustry or EntertainmentIndustry

5. The Travel Trade-( Travel

Agents, Tour Operator and TourGuides

6.Other Private Entities-


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THE OTHER PRIVATE SECTORS ENTITIES1. Publishing Companies-producers of electronic and

printed news,features, articles and advertising-keep up

to date.

2. ITC Service Providers-GDS/CRS produce in electronic

or printed form,referencemanuals,tariffs,

guidebooks,atlases, tiem table and operationalhandbooks

3. Marketing and Public Relations Org.-assistance in

planning a publicity and sales campaign, selecting

target markets, providing market research discoveringnew markets and in the overall conduct of sales and

marketing programs.


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4. Event Organizers- ( MICE ) for meetings,

incentives, conventions and exhibitions

involved with tasks as negotiating with the

hotel,airlines and other companies.

5. Miscellaneous Services-provide essential

services for tourism, insurance, hospital and

other services..


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Characteristics of a Travel Management Company ( TMC )

1. Retailer- transacts business and sells directly to the end user.

The TMC/Travel Agent are retailers, and the clients are the end

users.

2. Acts as counselor to the end user and as agent or intermediaryfor the suppliers.

3. Derives revenues from a predetermined fixed commission

dictated by the suppliers of travel services or from a professional

fee negotiated with the client. Occasionalyy when provided with

net rates, unilateral mark-ups also provide revenues;

4. Charges fees for ancillary service such as travel documentation.


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Hello

there!

Atravel

Agent


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1. Administration- this department has 4

functions:

a. General Administration- The general manager

or the assistant manager normally undertakes the

supervision of this. Within this area of

responsibility are the legal aspects of the

organization, which are normally handled bylawyers on a retainer basis. This aspect of the

company is necessary for :

1.1 protection from errors1.2 third party liability

1.3labor relations with the companyemployees
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b. Personnel-The management and developmentofhuman resources is an integral part of Administrative

department. This aspects involves hiring policies andcompensation schemes, specifically the qulifications

required of prospective employees and compensation

packages commensurate to the applicantscredentials.Education and trainings of the staff are also

under this. Personnel officers are under it., they

evaluates staff performance in order to determine

merit increases in monthly compensation andconducts written warnings of poor performance on a

regular basis.


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Accounting section- handles all records of the

company, including all pertinent government

licenses and permits. This is also responsible for

the custody of accountable forms such as ,officials

receipts, invoices, purchase order, tour vouchersand suppliers tickets stocks.

Accountant is also responsible for the

implementation of the Company policiespertinent to billings, credit and collection. The

formulationof the budget and monitoring a

payables and receivables.


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.

Finance Section- represented by the cashiers who

handles records and acts as custodian of ll the

moneycollected and disbursed. The finance

person assists the general manager in the cash

flow management of the organization.

Cashier- reports tot he Administrative Officer or

the general manager, receives all paymants

andmake sure that these arein order, insures allcollections are duly deposited with the bank and

creditedto the companys current/savings

accounts.


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Operations Department- the core of the

TMC/Travel Agency business. It is primarily

engaged in the efficientand effective

delivery of the organizations services. The

emplyees are: the Manager, Travel

Supervisor and Documentation Supervisor,

the travel counselors or counter staff, the

reservation and icketing Officers and the

Liaison officer.


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Travel Counselors or Counter Staff- duties

and responsibilities are; to recommend

products and services best suited to the

travelers needs including best routes,

carriers, gateways and stop overs., to

provide necessary information requested by

prospective travelers.

Th ti ffi l ll i d


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The reservations officers place all required

reservations with the airlines, hotels, tour

operators and any other supplier, by electronic or

manual means, follow up reservationsplaced until

confirmations are received,to monitor the

issuance of tour voouchers or air tickets.

Ticketing officers- issue air tickets, either manually

or through automated ticketing machine of hte

computerized reservation systems,correctly orcalculate fares when the need arises,to correctly

issue purchase orders ( for non-IATA agents only )

in accordance with the clients itinerary.


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Liaison or Documentation Officer-determine

what visas and other documents arerequired for travel, check authenticity of all

public documents submitted,insures that

the documents filed are released on time,arranges and coordinates appointments and

visits to the various consualtes and

government offices.


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Marketing- is everything that is done to

create awareness about a company, itsproducts and its services and create sales

opportunites.-

Marketing Manager-undertakes the

marketing activities, the overall

responsibility is to generate targeted

maximum sales for the organization in order

to meet the targeted figures.


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Additonal responsibilities are: prepare an annual

directed towards maintaining and increasing

predetermined levels of revenue, set annual goals

and develop working plans to carry out the goalswithin a time frame, participate in the

preparation of the organizationals budget, decide

on the negotiated rates and concessions asneeded.and also to keep abreast of the

development in the market and the development

of new products and services.


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Sales- counter sales are transactions

captured by the travel counselors or counter

staff that is always geared to service walk inclients. These are the result of good

information sharing and suitable and

attractive recommendation.


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Field Sales- trasactions are captured by the

account executives or sales agents orrepresentatives outside the office premises and as

a result of predetermined solicitation of business,

have sales plans and patterns to implement and

take time to follow up sales leads. They also

prepares and conducts monthly and daily sales

calls plans., prepares proposal letter, participates

in developing the annual marketing plan,undertakes monthlyevaluation of accounts in

relation to production, payments and credit.


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1.A small-sized TMC/Travel Agent-wouldhaveno more thatn tenemployees

witht the Manager supervising all the 3

departments.

2.A Medium sized- about 20 or so

employees, with three department heads.


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Setting Up a travel Management

Company/Travel Agency.

Group PresentationGroup-1. Sole or single proprietorship-

Group 2-PartnershipGroup 3. Corporation


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August 2- Group Presentation

Requirements-

1. Requirements in putting up Travel agency

/TMC.

2. Sample travel agency


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Requirements for Accreditation

A. Who may apply?1.Aresident Filipino citizen

2.A partnership organized under the laws of the

philippines, at least 60% of the capital owned by

the filipino citizens.

3.Corporations organized under the lawsof the

Philippines,at least 60% of the subscribed

common r voting shares of stocks whichis owenedby Filipino citizens and the composition of

itsBoard of Directors being atleast 60% filipinos.


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B. Supporting documents to be submitted with

the Application:

1. In case of single proprietorship,a business

name certificate and all amendments thereto:incase of partnership or corporations, a certified

true copy of the articles of partnership or

incorporation and its by-laws and amendmentsthereto. Duy registered with the Securities and

Exchange commission.


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2. Complete lists of executive officers and

employees, tour guides and travelrepresentatives, if any,indicating therein their

nationality, address and experience including

names of establishments previously or currentlyaffiliated with position and length of service

.following:

1.In the case of manager-proof that he has atleast

3 yrs managerial experience in tour operations or

ahsearned adegree in BST or has successfully

completed a tour operators course.


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b. Proof that at least 2 of the permanent staff have at

least 2years experience in tour operators.

3. For alien officers and employees, valid visa from the

Bureau of Immigration and the proper permit from theDepartment of Labor and Employment.

4. contract oflease or contract tolease theofficespace

,or sworn statement by the lessor that said agency is alessee.

5. Mayors permit/ municipal license.


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Accreditation Fee- after compliance with all the

requirementsunder these rulesa certificate ofaccreditation shall be issued to the applicant upon

payment of an accreditation fee of P1,100 per

annum for main office and P550 for each branch.

Validity of Accreditation- thecertificate

ofaccreditation shall be valid for a period of one

yr from the date of issuance thereof.

Documents

Functions of a Travel Agency