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Chapter 3 - Setting Up a Travel Agency

Chapter 3 outlines the essential steps for setting up a travel agency, including defining a Travel Management Company (TMC) and identifying various types of travel agencies and tour operators. It details the necessary business planning, legal requirements, location selection, company setup, staffing, and marketing strategies. Additionally, it emphasizes the importance of compliance with local government regulations and the potential revenue sources for travel agencies.

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6 views20 pages

Chapter 3 - Setting Up a Travel Agency

Chapter 3 outlines the essential steps for setting up a travel agency, including defining a Travel Management Company (TMC) and identifying various types of travel agencies and tour operators. It details the necessary business planning, legal requirements, location selection, company setup, staffing, and marketing strategies. Additionally, it emphasizes the importance of compliance with local government regulations and the potential revenue sources for travel agencies.

Uploaded by

brentroi.gutierrez
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Chapter 3

Setting Up a Travel Agency


LEARNING OBJECTIVES
This chapter will help us understand:

• Define what a travel management company is.


• Identify the steps for setting up a travel agency.
• Discuss each process of setting up a travel agency.
• List the members of a travel agency organizational chart
and their roles in the department.
• Be engaged and knowledgeable about the information
provided in this chapter.
What is a TMC or a Travel
Management Company?
TRAVEL MANAGEMENT COMPANY
(TMC)
• Is a travel agency that fully manages the business travel
requirements delegated by an individual, company, or
organization to save clients both time and money
fundamentally

• A TMC is also commonly known as a business travel agency or


corporate travel provider, aside from flight or hotel
reservations, TMC will offer other auxiliary services such as
aircraft charter, airport, lounges, parking and transfers, hotel
bed requests, car hire, chauffeurs, group travel, insurance, etc.
Steps on setting up your own Travel
Agency

A TMC, like any other


commercial enterprise doing
business in the Philippines,
requires a legal personality
before it can transact
legitimate business.
Step 01: Make a Business
Plan
1. Type of Travel Agency
• Wholesaler Travel Agency is an agency that purchases tourist
product components in bulk and designs packages and 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 is an agency that performs the following
functions quote fares and rates, make reservations, arrange travel
tickets and accommodations, arrange travel, insurance foreign
currency, documents and accepts payments.
Step 01: Make a Business
Plan
2. Type of Tour Operators
• Outbound Tour Operator is a tour operator who promotes tours to
foreign destinations, whether business or leisure.
• Inbound Tour Operator is known as an incoming tour operator.
Technically the operators who receive guests, clients/tourists and
handle arrangements in the host country.
Step 01: Make a Business
Plan
3. Resources of a Travel Agency
• IATA (International Air Transport Association)
• NON-IATA functions by collecting orders, sending the booking to IATA
travel agencies, and forwarding the booked tickets to the customer.
• Air Ticketing works on airport counters and other designated points
that airlines might have.
Step 01: Make a Business
Plan
Target Market
• Corporate tourist
• Leisure tourist
• Pilgrimage tourist
• Seamen
• Overseas Filipino workers
Step 02: Find a Good Location

• City or Town?
• Type of
Appointment
(Walk-ins and
Regular Clients)
Step 03: Know the Local Government
Ordinance or Law
Cost of taxes
Is there a moratorium on the new travel agency?
“Moratorium” is a temporary suspension of an activity or a
law until future events warrant lifting the suspension or
related issues have been resolved. A moratorium may be
imposed by a government or by a business.
Step 04: Company Set Up

• Single / sole proprietorship


• Partnership
• Corporation (minimum of 5 investors)
Step 05: Preparation of Documentary
Evidences for set up Company
• Permits from LGU
• Securities and Exchange Commission (SEC) if a corporation,
DTI if single,
• BIR,SSS,PAG IBIG,PHILIHEALTH, DOT, insurance
• Reportorial requirements of different agencies.
Step 06: Preparation of the Physical
Set Up of the Company

• Contract of lease
• Telephones, fax machines and computers
• Sales counter and desk, chairs, filing cabinets, air
conditioner, WI FI
• Signboards, posters
• Letterhead, business cards, forms
Step 07: Recruitment if Company
Staff
• Organizational Set-up (Divisional or team-based
organization)
• Responsibilities of management and the rank and file.
Step 08: Orientation of Company
Staff
• Company handbook for every staff
• Training and orientation of company rules and regulations.
Step 09: Marketing Company

• Suppliers
• Client
DOT Online Accreditors

• A certification issued by the Department to a tourism


enterprise that officially recognizes it as having complied
with the minimum standards for the operation of tourism
facilities and services
Revenue Sources of Travel Agency

• Several areas of a travel agency focus on paying


commissions to the agency which becomes its principal
income.

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