Introduction to Travel Agency & Tour Operations
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Questions and Answers

What significant service did Thomas Cook offer for the first time?

  • Private tour guides
  • Luxury accommodations
  • Foreign exchange service (correct)
  • Flight upgrades

    • Which year did Thomas Cook visit the Alps for the first time?

  • 1864
  • 1863 (correct)
  • 1862
  • 1865

    • What was formed on June 19, 2007?

  • Thomas Cook Group (correct)
  • Thomas Cook AG
  • Thomas Cook & Son
  • MyTravel Group plc

    • According to the Tourism Code of 1980, what is the primary role of a travel and tour agency?

    <p>Acting as an agent of suppliers in the tourism industry</p> Signup and view all the answers

    What type of customers do traditional travel agencies primarily assist?

    <p>Individuals booking leisure trips</p> Signup and view all the answers

    Which of the following is NOT listed as a component of the tourism industry?

    <p>Travel insurance providers</p> Signup and view all the answers

    Who joined Thomas Cook in business in 1864?

    <p>John Mason Cook</p> Signup and view all the answers

    What type of arrangements do travel agencies commonly assist with?

    <p>Transportation and accommodation arrangements</p> Signup and view all the answers

    What is the primary function of a travel agency?

    <p>Arrange travel by air, sea, or land</p> Signup and view all the answers

    Which of the following best describes a Travel Management Company (TMC)?

    <p>A commercial entity that manages travel arrangements for businesses</p> Signup and view all the answers

    What distinguishes an LGU License from DOT Accreditation?

    <p>LGU License pertains to local tourism services</p> Signup and view all the answers

    Who is considered the 'Father of Travel Agency Business'?

    <p>Thomas Cook</p> Signup and view all the answers

    In what year did Thomas Cook organize his first excursion?

    <p>1841</p> Signup and view all the answers

    Which type of revenue source is NOT typically associated with a Travel Management Company?

    <p>Revenue from selling souvenirs</p> Signup and view all the answers

    What year did Thomas Cook conduct his first profitable trip?

    <p>1845</p> Signup and view all the answers

    What was the significance of Thomas Cook's first continental tour in 1855?

    <p>It was the first organized group tour to Europe</p> Signup and view all the answers

    What is a primary function of a Travel Management Company (TMC)?

    <p>Managing corporate travel needs for businesses.</p> Signup and view all the answers

    Which of the following characterizes the traditional way of booking travel?

    <p>Manual processes involving phone calls and in-person interactions.</p> Signup and view all the answers

    How has technology changed the process of booking travel in the modern way?

    <p>Clients can engage with chatbots and virtual agents for assistance.</p> Signup and view all the answers

    What service is NOT typically provided by travel agencies?

    <p>Provision of luxury resort accommodations.</p> Signup and view all the answers

    Which is an advantage of the modern way of booking travel over the traditional method?

    <p>Enhanced automation allows for reduced agent interaction.</p> Signup and view all the answers

    What is a characteristic of a travel agency?

    <p>Charges fees for ancillary services, such as travel documentation.</p> Signup and view all the answers

    What differentiates a travel agent from a tour operator?

    <p>Travel agents typically do not package tours.</p> Signup and view all the answers

    Which statement is true about electronic tickets (e-tickets) in the new way of travel booking?

    <p>E-tickets are generated through automated systems and sent via email.</p> Signup and view all the answers

    What is the primary role of wholesalers in the travel industry?

    <p>To act as consultants or advisers to travelers</p> Signup and view all the answers

    How do travel management companies (TMC) primarily generate revenue?

    <p>Through commissions and handling fees</p> Signup and view all the answers

    What does a cost-plus pricing model involve?

    <p>Determining the exact cost and adding a markup</p> Signup and view all the answers

    What additional fees might TMCs charge for ancillary services?

    <p>Service fees for extra amenities or services</p> Signup and view all the answers

    What percentage range is commonly added as a markup in cost-plus pricing?

    <p>20% to 30%</p> Signup and view all the answers

    In the provided sample scenario, what was the airfare amount before additional fees?

    <p>Php 34,592</p> Signup and view all the answers

    Which of the following statements best describes the nature of wholesalers’ revenue?

    <p>Their revenue is fixed and predetermined by suppliers.</p> Signup and view all the answers

    What is the total amount that the TMC should pay the hotel if the published rate is Php 4,000 per night and the commission is 10%?

    <p>Php 3,600</p> Signup and view all the answers

    What kind of consultancy do wholesalers commonly provide to travelers?

    <p>Travel advice and suggestions for itineraries</p> Signup and view all the answers

    What is the total commission earned by Mario for a bill of AU$ 330 for 3 nights at a rate-minus of 10%?

    <p>AU$ 99</p> Signup and view all the answers

    What is the initial capital documentation required for setting up a sole proprietorship travel agency?

    <p>Trade Name Registration</p> Signup and view all the answers

    Which of the following is NOT a requirement for registering a partnership travel agency?

    <p>Tax Identification Number of the Owner</p> Signup and view all the answers

    How much is the total amount after adding the PTT of PHP 1,620 to PHP 43,240?

    <p>PHP 44,860</p> Signup and view all the answers

    Which of the following documents is necessary when registering with a Local Government Unit (LGU) for a partnership agency?

    <p>General liability insurance policy</p> Signup and view all the answers

    If a TMC earns a commission of Php 400 per night on a rate minus of 10%, what will be the total amount paid to the hotel for a single night?

    <p>Php 3,600</p> Signup and view all the answers

    What is the commission amount for a hotel stay of Php 4,000 with a 10% commission rate?

    <p>Php 400</p> Signup and view all the answers

    Study Notes

    Overview of Travel Agencies and Tour Operations

    • Travel management companies provide information, counseling, and travel arrangements across air, sea, or land globally.
    • Agencies are crucial intermediaries in tourism, acting on behalf of transportation companies, hotels, car rental services, and tour operators.

    Thomas Cook: A Pioneer in Travel Agency History

    • Thomas Cook (1808-1892), known as the "Father of Travel Agency Business", initiated the first organized excursions.
    • Founded his travel agency in 1841, running profitable trips, creating the first travel "package" in 1855.
    • Established notable trips to various European destinations, promoting Switzerland as a summer holiday hub.
    • Thomas Cook Group, formed in 2007, encompasses multiple tour operators and airlines in Europe.

    Functions of Travel Agencies

    • Provide travel information and personalized recommendations for destinations and suppliers.
    • Assist with securing travel documents, such as visas and tickets, while managing cancellations and refunds.
    • Offer ancillary services, generating income through documentation fees.

    Distinction Between Travel Agents and Tour Operators

    • Travel agents are retailers providing direct service to consumers, while tour operators act as wholesalers, selling packages to agents.
    • Agents derive fixed income through commissions, whereas tour operators' revenue is variable based on sales and market demand.

    Revenue Sources for Travel Management Companies (TMC)

    • Open handling fees or professional fees, either a fixed amount or percentage-based.
    • Commissions from travel services, allowing markup on net fares for profitability.
    • Service fees for additional services and production incentives from suppliers.

    Pricing Structures in Travel Management

    • Cost-plus pricing: TMCs add a fixed percentage to the actual travel costs for professional services.
    • Rate-minus pricing: Commission-based model where TMC receives a percentage of the published rates from suppliers.

    Setting Up a Travel Agency

    • Sole Proprietorship: Requires DTI registration, local government permits, bank certification, financial projections, employee bio-data, and insurance documentation.
    • Partnership: Necessitates SEC registration, articles of partnership, local government permits, financial viability, and insurance requirements similar to sole proprietorship.

    Evolution of Travel Agencies

    • Traditional travel agencies relied on manual processes, personal interactions, and limitations to office hours.
    • Modern agencies leverage advanced technology for online bookings, e-tickets, and 24/7 global access with minimal direct interaction required.

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    Description

    This quiz covers the fundamental concepts of travel management companies and their significance in the travel industry. It explores the history of travel and tours, the functions of travel agencies, and the necessary requirements to establish a Travel Management Company (TMC). Additionally, it distinguishes between LGU Licenses and DOT Accreditations, and explains revenue sources for TMCs.

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