(1) TOUR & TRAVEL MANAGEMENT (LESSON 2)

Business Setup

The ________ _______ encompasses budget, people management, exhaustive market requirements, and supplies.

Business Setup

The _______ ______ comprises people and systems. Systems are manned by specialists.

Business Setup

It also involves a technically trained crew.Expertise is the combination of hard and soft skills and productive interrelations within the organization, especially with clients.

Travel Management Company (TMC)

It 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.

Travel Management Company (TMC)

It is commonly known as a business travel agency or corporate travel provider.

Travel Management Company (TMC)

They are focusing on managing trips for the customers. Their different services are meant to simplify the process, lower costs, and make sure that the company follow the rules and guidelines.

Arrange tickets

Visa Arrangements

Policy Compliance

Risk Management

4 Travel Management Company Works

Arrange tickets

______ ______ for flights, trains, buses, and other modes of transport.

Visa arrangement

____ ______ for destination country, preparing and submitting the appropriate application forms, gathering required documents.

Policy Compliance

All travel arrangements and expenses adhere to an organization's established travel policies and guidelines, promoting cost, and regulatory adherence.

Risk Management

Monitoring global events, providing travel advisories, planning for emergencies, and offering support and contingency plans.

Offers Discounts

Customization

Reporting & Analytics

Consulting Services

Full-time support

Sustainability Initiatives

6 Functions of Travel Management Company

Travel Management Company

It mostly focuses on businesses, groups and other organizations.

Travel Management Company

It is direct focus is on corporate travel companies.

Travel Management Company

It has the main goal of comprehensive service in travel management.

Travel Management Company

It provides advanced technology with online booking tools and mobile apps.

Travel Management Company

Data analytics and reporting for the personalization of per customers.

Travel Management Company

It uses multiple tools for tracking and balancing travel expense management.

Travel Management Company

It continuously provides 24/7 travelers support and assistance.

Travel Management Company

It always monitors travel risks and provides crisis management to users.

Travel Agency

They arrange individual travelers and small groups.

Travel Agency

It only focuses on travel for vacation and pleasure.

Travel Agency

Provides limited services and provides services on Booking and reservations.

Travel Agency

The travel agency offers only online booking systems.

Travel Agency

It has limited or no data analytics for its customers or users.

Travel Agency

TA is not typically provided extra tools for balancing travel expense management.

Travel Agency

You find support typically during only business hours.

Travel Agency

It provides basic support; crisis management is less common.

- Global Business Travel

- FCM Travel Solutions

- Carlson Wagonlit Travel

- BCD Travel

- Egencia

5 Travel Management Company List

- 1st: Make your Business Plan

- 2nd: Find a Good Location

- 3rd: Know the Local Government Ordinance/Law

- 4th: Company Set-up

- 5th: Preparation of Documentary Evidence for set up of company

- 6th: Preparation of the Physical set-up of the company

- 7th: Recruitment of Company Staffs

- 8th: Orientation of Company Staffs

- 9th: Marketing Company

9 Steps on Setting up your own Travel or Tour Agency

International Air Transport Association (IATA)

A TA or TO can operate whether they are IATA accredited or not. These are the following requirements for lATA accreditation (International Air Transport Association [IATA], 2019):

International Air Transport Association (IATA)

Ensure to meet the local criteria as specified in the Travel Agent Handbook, a handbook that contains the Passenger Agency Conference decisions governing industry practices or relevant industry regulatory developments, as well as locally established criteria.

International Air Transport Association (IATA)

Select the country of application (on the IATA website) and understand the Application Guide.

International Air Transport Association (IATA)

Submit the application as specified in the Application Guide depending or country of application.

International Air Transport Association (IATA)

Pay the accreditation fee.

Department of Tourism (DOT)

This is the governing body of the tourism industry. TAs and TOs would only be _____ accredited once they are able to secure a valid mayor's permit or municipal license, DTI Business Name Registration Certificate (for Single Proprietorship only or SEC Registration Certificate (for Partnership or Corporation only), and a valid visa from the Bureau of Immigration (BI) and employment permit (for foreign nationals only). Being accredited by the ______ yields benefits such as endorsement to embassies and travel trade association/s for the utilization of an establishment's facilities and services, eligibility for participation in travel fairs, priority to _______ training programs, and free online/print advertising in national dailies.

Department of Industry (DTI)

This is where single proprietorship businesses (or businesses owned by a single person) are registered. This agency issues a certificate of registration of the business name with five (5) years validity.

Department of Labor and Employment (DOLE)

All travel agencies or tour operators registered in the Philippines hiring five (5) or more employees must register with DOLE to avoid labor cases filed against them. This is also where foreign nationals can secure an employment permit.

Bureau of Internal Revenue (BIR)

This is where all businesses can secure a Tax Identification Number (TIN).

Bureau of Immigration (BI)

This is where businesses owned by foreign nationals can secure a valid visa.

Social Security System (SSS)

This is where businesses can secure an _______ certificate. All private businesses should have their employees become an _______ member as mandated by the Labor Code (the law-governing employment practices and labor relations in the Philippines). - This system aims to protect its members for when they are unable to work due to these reasons: sickness, disability, maternity, old age, and death, or other contingencies not stated but will result in the loss of income or financial burden.

Securities and Exchange Commission (SEC)

This is where the certification and registration of partnership businesses (businesses owned by at least two [2] individuals) and corporations (businesses owned by at least five [5] people) happen. It issues an _______ certificate to the aforementioned types of businesses.

Local Government Unit (LGU)

This is where TAs and TOs can secure a valid mayor's permit or municipal license.

Home Development Mutual Fund (HDMF)

It is mandatory under the Labor Code for employers to have their employees become members and contributors of the HDMF (also known as the PAGIBIG Housing Development Program). This provides TAs' and TOs' employees housing and loan benefits.

Operations

- Known to be of the travel agency business.

- Engaged in the efficient and effective delivery of the organization's service.

Travel Counselor

Reservations Officer

Ticketing Officer

Liaison Officer

4 Members under the Operations Department

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.

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.

- Act as a backup for the ticketing officer.

Ticketing Officer

- Correctly source or calculate fares when the nee arises.

- Issue air tickets manually 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.

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 day-to-day management activities of the company.

It has four functions:

General administration

personnel

accounting

finance.

Bookkeeper

Cashier

Utility Personnel

Sales & Marketing

4 under the Administration Department

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.

Cashier

- Manager transactions either customer using cash registers.

- Collect payments whether in cash or credit.

- Issue receipts, refunds, change or tickets.

Utility Personnel

- Maintain the upkeep of company facilities.

- Repair broken equipment.

- Inspect finished projects.

- Comply with state health and safety regulation.

Sales & Marketing

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

- Prepare annual marketing plans

- Set 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 prospectives clients and performs regular sales calls on major accounts and suppliers.

Travel Management Cycle

It refers to the systematic process used by travel agencies, tour operators, and tourism managers to plan, organize, operate, and evaluate travel services. It ensures that tourism services are delivered efficiently while meeting customer needs and maintaining service quality.

1. Planning

2. Coordination

3. Reservation and Booking

4. Tour Operation / Service Delivery

5. Monitoring and Customer Service 6. Evaluation and Feedback

6 Types of Travel Management Cycle

Planning

The ______ stage is the foundation of the entire tour management process. At this stage, tour managers identify the tour concept, target market, destinations, and resources needed for the tour package.

Planning

It ensures that the tour is feasible, attractive to tourists, and profitable for the company.

Planning

Key activities include:

✓ Conducting market research to determine tourist demand

✓ Identifying destinations and attractions to include in the tour

✓ Creating the tour itinerary (schedule of activities)

✓ Estimating the cost of transportation, accommodation, meals, and entrance fees

✓ Determining the tour price

Example: A tour operator may design a 3D2N cultural heritage tour in Northern Luzon including visits to Banaue Rice Terraces and Sagada

Coordination

Once the tour plan is finalized, the next step is coordination with tourism suppliers and stakeholders. Tour operators need to communicate with various service providers to ensure that all travel arrangements are available and confirmed.

Coordination

This stage requires strong communication and negotiation skills to ensure quality services and reasonable costs.

Coordination

Key activities include:

✓ Coordinating with transportation providers (bus companies, airlines)

✓ Booking hotels or accommodations

✓ Coordinating with restaurants for meals

✓ Hiring tour guides and arranging local transportation

✓ Negotiating prices and confirming service agreements

Reservation & Booking

The reservation and booking stage involves securing all travel services required for the tour package. This ensures that everything is ready before the travel date.

Reservation & Booking

Many travel agencies use Global Distribution Systems (GDS) such as Amadeus to manage flight reservations and bookings efficiently.

Reservation & Booking

This stage ensures that all travel components are guaranteed and properly documented.

Reservation & Booking

Key activities include:

✓ Booking airline or transportation tickets

✓ Reserving hotel rooms

✓ Confirming entrance tickets for attractions

✓ Preparing travel documents such as vouchers and itineraries

✓ Processing payments and issuing tickets

Tour Operation/Service Delivery

The ____ _____ stage is when the actual tour takes place. This is the moment when all planning and preparations are implemented.

Tour Operation/Service Delivery

Tour guides play a vital role during this stage by facilitating activities, ensuring safety, and enhancing the travel experience of tourists.

Tour Operation/Service Delivery

Key activities include:

✓ Managing the tour itinerary

✓ Ensuring transportation schedules are followed

✓ Assisting tourists during the trip

✓ Coordinating with hotels, restaurants, and attractions

✓ Providing information about destinations

Example: During a city tour, the tour guide explains historical landmarks and ensures that the group follows the planned schedule.

Monitoring and Customer Service

During the tour, tour managers must continuously monitor operations and address any issues that may arise.

Monitoring and Customer Service

Effective monitoring helps maintain high service standards and customer satisfaction.

Monitoring and Customer Service

Key activities include:

✓ Monitoring the quality of services provided

✓ Handling customer concerns or complaints

✓ Adjusting schedules if delays occur

✓ Ensuring the safety and satisfaction of tourists

✓ Maintaining communication with suppliers

Evaluation and Feedback

The final stage of the tour management cycle is evaluation and feedback. After the tour ends, tour operators assess the overall performance of the tour and gather feedback from customers.

Evaluation and Feedback

The evaluation stage helps travel organizations improve future tour packages and maintain competitiveness in the tourism industry.

Evaluation and Feedback

Key activities include:

✓ Conducting customer satisfaction surveys

✓ Evaluating supplier performance

✓ Reviewing operational challenges encountered during the tour

✓ Identifying improvements for future tours

Example: Tour companies may ask tourists to rate their travel experience or provide suggestions for improvement.

Tour Operations Cycle

refers to the complete process used by tour operators to design, organize, promote, implement, and evaluate tour packages. It ensures that all components of travel—such as transportation, accommodation, attractions, and activities—are properly arranged to deliver a smooth and satisfying travel experience for tourists.

Tour Operations Cycle

This cycle is continuous because the evaluation of one tour becomes the basis for improving future tour packages.

1. Research and Planning

2. Product Development and Contracting

3. Marketing and Promotion

4. Reservation and Booking

5. Tour Operation and Service Delivery

6. Evaluation and Feedback

6 Tour Operations Cycle

Research & Planning

The research and planning stage is the foundation of the tour operations cycle. In this stage, tour operators analyze the tourism market, identify potential destinations, and determine what type of tour package will attract travelers.

Research & Planning

Tour operators study tourist preferences, travel trends, seasonality, and competitor offerings. They also identify the target market, such as students, families, corporate groups, or international travelers.

Research & Planning

Key elements developed during planning include:

✓ Selection of destinations and attractions

✓ Preparation of tour itinerary and schedule

✓ Estimation of tour costs and pricing

✓ Identification of transportation and accommodation options

✓ Risk and safety considerations

For example, a tour operator may design a heritage and cultural tour in Northern Luzon that includes visits to the Banaue Rice Terraces and Sagada. Proper planning ensures that the tour package is feasible, attractive, and financially sustainable.

Product Development & Contracting

After planning the tour, the next stage involves developing the tour product and establishing partnerships with tourism suppliers. A tour operator cannot operate a tour alone, so coordination with various service providers is essential.

Product Development & Contracting

Contracts may include negotiated group rates, service standards, cancellation policies, and payment arrangements. This stage ensures that all components of the tour package are secured and ready for implementation.

Product Development & Contracting

During this stage, the tour operator negotiates agreements with suppliers such as:

✓ Hotels and resorts for accommodation

✓ Transportation companies for buses, vans, or flights

✓ Restaurants or catering services for meals

✓ Tourist attractions and activity providers

✓ Local tour guides and coordinators

Effective contracting helps tour operators reduce costs while maintaining service quality.

Marketing and Promotion

Once the tour package is fully developed, the next step is to market and promote the tour to potential travelers. Marketing plays an important role in informing customers about the tour package and encouraging them to book the tour.

Marketing and Promotion

The goal of marketing is to reach the target market and generate bookings. Effective promotion also highlights the unique selling points of the tour, such as cultural experiences, adventure activities, or sustainable tourism practices.

Marketing and Promotion

Tour operators use various marketing strategies such as:

✓ Online promotion through social media and travel websites

✓ Printed brochures and tour catalogs

✓ Travel fairs and tourism exhibitions

✓ Partnerships with travel agencies

✓ Promotional discounts and early booking offers

Reservation & Booking

The reservation and booking stage involves confirming all travel services for tourists who purchase the tour package. At this stage, the tour operator ensures that all travel arrangements are secured before the travel date.

Reservation & Booking

Many travel agencies use reservation systems like Amadeus to manage airline reservations and bookings efficiently.

Reservation & Booking

This stage ensures that all tour components are confirmed and properly documented, preventing problems during the actual tour.

Reservation & Booking

Key activities include:

✓ Booking airline or land transportation

✓ Reserving hotel accommodations

✓ Confirming entrance tickets to attractions

✓ Preparing travel documents such as itineraries, vouchers, and tickets

✓ Collecting payments from customers

Tour Operation/Service Delivery

The tour operation stage is when the actual travel experience takes place. This is the stage where the tour operator implements the planned itinerary and delivers the promised services to tourists.

Tour Operation/Service Delivery

Tour guides also play an important role in enhancing the visitor experience by sharing cultural, historical, and environmental information about the destination.

Tour Operation/Service Delivery

Tour managers and tour guides are responsible for:

✓ Managing the travel schedule and itinerary

✓ Coordinating transportation and accommodation services

✓ Assisting tourists during the trip

✓ Providing information about destinations and attractions

✓ Ensuring safety and comfort of the group

Smooth tour operation requires strong coordination, problem-solving skills, and effective communication.

Evaluation and Feedback

The final stage of the tour operations cycle is evaluation and feedback. After the tour is completed, tour operators assess the success of the tour and gather feedback from tourists and service providers.

Evaluation and Feedback

Customer feedback provides valuable insights that help tour operators improve future tour packages, adjust pricing strategies, and enhance service quality.

Evaluation and Feedback

Key evaluation activities include:

✓ Collecting customer satisfaction surveys

✓ Reviewing the quality of services provided by suppliers

✓ Analyzing operational challenges or complaints

✓ Evaluating financial performance of the tour

This stage completes the cycle and leads back to research and planning for the next tour product.