TOUR AND TRAVEL MANAGEMENT

CHAPTER 3

Setting Up a Travel Agency

A Travel Management

Company (TMC) is a travel agent that fully manages the business travel requirements delegated by an individual,
company or organization to fundamentally save clients both time and money. A TC is also commonly known as a
business travel agency or corporate travel provider. Aside from flight or hotel reservations, Travel Management
Companies will offer other auxiliary services such as aircraft charter, airport lounges, parking and transfers, hotel
bed requests, car hire, chauffeurs, foreign exchange, group travel, hotel bill backs, insurance, leisure travel, marine
travel, meal requests, meet and greets, passport and visa procurement, rail tickets, roadshow services and venue
sourcing.

Nowadays, many MCs also provides online self-booking tools whereby organizations can make their own flight and
hotel reservations and bookings. Travel management companies will also typically negotiate with vendors/suppliers
to provide discounted fares and loyalty programs.

Steps on Setting up your own Travel or Tour Agency

First: Make your Business Plan

• Type of Travel Agency

Wholesaler Travel Agency - an agency that purchases tourist product components in bulk and designs package tours.
Sometimes, a wholesale travel agency buys travel components from a vendor in bulk and resells them to another
travel business organization.

Retail Travel Agency - an agency that performs the following functions: quote fares and rates, make reservations,
arrange travel tickets and accommodation, arrange travel, insurance, foreign currency, documents and accept
payments.

• Types of Tour Operators

Outbound Tour Operator - tour operators, who promote tours to foreign destinations, may be business tours or
leisure tours.

Inbound Tour Operator - known as incoming tour operators. Technically, the operators who receive guests,
clients/tourists, and handle arrangements in the host country

Domestic Tours/Ground Operator - commonly known as handling agencies and their main function is to organize
tour arrangements for incoming tourists on behalf of overseas operators.

• Resources of a Travel Agency

IATA (International Air Transport Association) - known to be one of the most basic resources for a travel agent
because most airline bookings are done through the IATA portal.

• NON-IATA - it functions by collecting orders, sending the booking to IATA travel agencies, and forwarding the
booked tickets to the customer.
• Air Ticketing - work on airport counters or other designated sales points that airlines might have.

They provide information regarding dates, schedules, availability, and prices of flights. Ticketing officer are
expected to sell flights and other products the airline may offer, as well as assist passengers with inquiries or other
requests, such as flight changes or cancellations.

Tour Operator - is a company that buys certain services from different companies and forms a single tourist product
out of them using its own pricing system.

Travel Agent - is a person whose job it is to arrange travel for end clients (individuals, groups, corporations) on
behalf of suppliers (hotels, airlines, car rentals, cruise lines, railways, travel insurance, package tours).

First

• Target Market

Corporate Tourists - those travelling for meetings, conventions, conferences or for any other purpose which is
incidental to business and work.

• Leisure Tourists - those who travel for pleasure includes for vacations, sport, family, education, health & fitness.

Pilgrimage - a long journey traveled by someone to go a sacred place as an act of religious devotion.

Seamen - a person whose trade or occupation is assisting in the handling, sailing, and navigating of a ship during a
voyage, especially one below the rank of officer, sailor.

Overseas Filipino Worker - a person from the Philippines who is living and working in another country, typically on
a temporary basis.

• Sales and Marketing Planning

Marketing plans are about identifying your target market and creating strategies for reaching those customers. Sales
plans detail the strategies the business will use to sell products and services and increase revenue. The sales plan
therefore often forms part of the larger marketing strategy.

• Financial Plan (3-year Financial Projection)

A plan containing a person's current money situation and long-term monetary goals, as well as strategies to achieve
those goals.

Second: Find a Good Location

• Which City or Town

• Type of Appointment:

Walk Inns

Regular Clients

Third: Know the Local Government Ordinance/Law

• Cost of taxes.

• Is there a moratorium on new travel agency?

"Moratorium" is a temporary suspension of an activity or a law until future events warrants lifting the suspension or
related issues have been resolved. A moratorium may be imposed by a government or by a business.

• Requirements of LGU (Cedula, Barangay Clearance, Mayor's Permit)

Fourth: Company Set-up

• Single - individual owner requirements (Trade Name Registration, Bank Certification of

Company's Capitalization)

• Partnership - owned by at least two individual's proprietorship or corporation

• Corporation - most common entity of business set-up for TMC that requires a minimum of 5 investors.

Fifth: Preparation of Documentary Evidence for set up of company

• Permits from LGU

• SEC if corporation, DTI if Single, BIR,SSS, PAG-IBIG, PHILHEALTH, DOT, PVC, Insurance

• Reportorial requirements of different agencies

Sixth: Preparation of the Physical set-up of the company.

•Contract of lease

• Telephone lines, fax machines and computers

• Sales counters and desk, chairs, filing cabinet, air conditioner, Wi-Fi

• Signboards, streamers

• Letterhead, business cards, forms

Seventh: Recruitment of Company Staffs

Organizational Set up (Functional, Divisional, Matrix, Flat, Decentralized or Team - based organization)

Responsibilities of management and the rank & file

Eight: Orientation of Company Staffs

• Company handbook for every staff

• Training and orientation of company rules and regulations

Ninth: Marketing the Company

• Suppliers

• Client

DOT Online Accreditation

Steps in Applying Online for DOT Accreditation

• Register an Account.

•Go to: http://accreditationonline.tourism.gov.ph/default.aspx

• Pay the Required fees

•Accomplish the Application Form

•Submit the Accomplished Application Form

• Claim the Accreditation

Travel Agents typically deal with a diverse range of tasks including the following:

• making reservations

•planning itineraries (including complex round-the-world travel)

•calculating fares and charges

• producing tickets advising clients on destinations, resorts, airline companies

• wide range of travel products communicating with clients verbally and in writing maintaining accurate records on
reservations

•ensuring racks are stocked well or supplies are kept in-house. acting as intermediaries where customer complaints
occur.

•High Level of Customer Service

•customers must be greeted warmly, typically with a smile.

•staff must ensure high standards of dress, appearance, and personal grooming as

• customers are influenced by first impressions, their personal posture, manner and o

•body language is also important as being alert, attentive, and willing to empathize. match client needs with
available products is key.

• all staff must be polite and able to express themselves clearly, while always

• maintaining eye contact

•telephones must be answered promptly and courteously.

Departments and Members of the Organization and its Roles

Operations

- known to be of the travel agency business.

- engaged in the efficient and effective delivery of the organization's services.

Members under the Operations Department:

1. Travel Counselor

- provides all necessary information requested by prospective travelers. Recommends products and services best
suited for travelers.

- monitors processing of travel documents and ensure that they are all in order prior in releasing it to clients.
2. Reservations Officer

- places all required reservations with different suppliers. follow up on reservations placed until confirmed.

- look for alternative suppliers in the same level of service in case preferred supplier is not available.

- monitors issuance of travel vouchers and tickets.

- acts as a backup for the ticketing officer.

3. 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 counselor.

4. Liaison Officer

- determines the requirements and other documents needed for travel.

- checks the authenticity of all documents submitted.

- checks all relevant support papers.

•-ensures that documents filed are released on time.

- arranges and coordinates appointments and visits to various consulates and government offices.

Administration

- deals with the day-to-day management activities of the company. It has four functions: general administration,
personnel, accounting, and finance.

The following are the members of the administration department:

1. Bookkeeper

- recording transactions such as income and outgoings and posting them to various accounts.

- processing payments.

- conducting daily banking activities.

- producing various financial reports.

- reconciling reports to third-party records such as bank statements.

2. Cashier

- manage transactions with customers using cash registers.

- collect payments whether in cash or credit.

- issue receipts, refunds, change or tickets.

3. Utility Personnel

- maintain the upkeep of company facilities.

- repair broken equipment.

- inspect finished projects.

- comply with state health and safety regulations.

Sales & Marketing

- this department is led by the sales and marketing manager who has the following duties in the company:

• prepare annual marketing plans.

• sets annual sales goals and develops strategic plans to carry out goals.

• participate in the preparation of the organization's budget.

• decide on negotiated rates and concessions.

• maintain an updated clients and prospective clients and performs regular sales calls on major accounts and
suppliers.

Travel Documentations

Every traveler when travelling is required to submit their travel documents such as passport, visa and others.
Passport is considered as the most important travel document since its purpose is to show other countries that you
are a legal citizen of your particular country of origin. Passport serves as your legitimate form of identity. Visas, on
the other hand is a document designed to allow the traveler to visit or work into other countries. The main difference
between the two important documents is that visas specifies the main purpose of traveler in staying in that particular
country. Visas also have a particular time frame.

Phonetic alphabets are important since it makes sure that letters are pronounced and understood correctly no matter
what language is spoken. Country, airline, airport codes are short alphabetical or numerical codes that are important
since it represents the countries and its dependent areas.

Travel Document

A travel document is an identity document issued by a government or international treaty organization to facilitate
the movement of individuals or groups of people across international boundaries, following international
agreements. Travel documents usually assure other governments that the bearer may return to the issuing country,
and are often issued in booklet form to allow other governments to place visas as well as entry and exit stamps into
them. The most common travel document is a passport, which usually gives the bearer more privileges like visa-free
access to certain countries. However, the term is sometimes used only for those documents which do not bear proof
of nationality, such as a refugee travel document.

Slogan

A slogan is a memorable motto or phrase used in a clan, political, commercial, religious, and other context as an
expression of an idea or purpose, with the goal of persuading members of the public or a more defined target group.
The Oxford Dictionary of English defines a slogan as "a short and striking or memorable phrase used in
advertising." A slogan usually has the attributes of being memorable, very concise and appealing to the audience.

Passport
A. Passport is a formal document issued by an authorized official of a country to one of its citizens that is usually
necessary for exit from and re-entry into the country, that allows the citizen to travel in a foreign country in
accordance with visa requirements, and that requests protection for the citizen while abroad.

A license issued by a country permitting a foreign citizen to pass or take goods through its territory.

C. A document of identification required by law to be carried by persons residing or traveling within a country.

Visa Application

What is a Visa?

A. An endorsement made on a passport by the proper authorities denoting that it has been examined and that the
bearer may proceed.

B. A signature of formal approval by a superior upon a document.

C. Certificate issued or a stamp (on the applicant's passport) by the immigration authorities of a country to indicate
that the applicant's credentials have been verified and he or she has been granted permission to enter the country for
a temporary stay within a specified period. This permission, however, is provisional and subject to the approval of
the immigration officer at the entry point.

Common Types of Visas:

1) Single entry visa: valid only for one visit.

2) Multiple entry visa: allows any number of visits within its validity period.

3) Business visa: for a short visit to conduct discussions, negotiations, and/or presentations, but not to take up
employment.

4) Tourist visa: allows freedom to move around the country and briefly cross its frontiers to another country and
return.

5) Residence visa: allows an extended stay but does not grant permission to take up employment.

6) Work visa: gives the permission to stay and take up employment, for a specific job and only for a limited period.
Also known as work permit.

7) Electronic visa: permission recorded in a computer instead of being issued as a certificate or stamp.

Phonetic Alphabet

Phonetic Alphabets used in the airline and hotel industry to make sure that each letter in all names given is correctly
spelled.

A - Alpha

B - Bravo

C - Charlie

D - Delta

E - Echo

F - Foxtrot/Father

G - Golf
H - Hotel

1 - India

J- Jack

K- Kilo

L- Lima

M - Mama

N - Nancy

O – Oscar

P - Papa

Q - Queen

R - Romeo]

S - Sierra/Sugar

T – Tango

U – Uniform

V – Victor

W - Whiskey

X - X-ray

Y - Yankee

Z - Zebra