Questions and Answers
What significant service did Thomas Cook offer for the first time?
Which year did Thomas Cook visit the Alps for the first time?
What was formed on June 19, 2007?
According to the Tourism Code of 1980, what is the primary role of a travel and tour agency?
Signup and view all the answers
What type of customers do traditional travel agencies primarily assist?
Signup and view all the answers
Which of the following is NOT listed as a component of the tourism industry?
Signup and view all the answers
Who joined Thomas Cook in business in 1864?
Signup and view all the answers
What type of arrangements do travel agencies commonly assist with?
Signup and view all the answers
What is the primary function of a travel agency?
Signup and view all the answers
Which of the following best describes a Travel Management Company (TMC)?
Signup and view all the answers
What distinguishes an LGU License from DOT Accreditation?
Signup and view all the answers
Who is considered the 'Father of Travel Agency Business'?
Signup and view all the answers
In what year did Thomas Cook organize his first excursion?
Signup and view all the answers
Which type of revenue source is NOT typically associated with a Travel Management Company?
Signup and view all the answers
What year did Thomas Cook conduct his first profitable trip?
Signup and view all the answers
What was the significance of Thomas Cook's first continental tour in 1855?
Signup and view all the answers
What is a primary function of a Travel Management Company (TMC)?
Signup and view all the answers
Which of the following characterizes the traditional way of booking travel?
Signup and view all the answers
How has technology changed the process of booking travel in the modern way?
Signup and view all the answers
What service is NOT typically provided by travel agencies?
Signup and view all the answers
Which is an advantage of the modern way of booking travel over the traditional method?
Signup and view all the answers
What is a characteristic of a travel agency?
Signup and view all the answers
What differentiates a travel agent from a tour operator?
Signup and view all the answers
Which statement is true about electronic tickets (e-tickets) in the new way of travel booking?
Signup and view all the answers
What is the primary role of wholesalers in the travel industry?
Signup and view all the answers
How do travel management companies (TMC) primarily generate revenue?
Signup and view all the answers
What does a cost-plus pricing model involve?
Signup and view all the answers
What additional fees might TMCs charge for ancillary services?
Signup and view all the answers
What percentage range is commonly added as a markup in cost-plus pricing?
Signup and view all the answers
In the provided sample scenario, what was the airfare amount before additional fees?
Signup and view all the answers
Which of the following statements best describes the nature of wholesalers’ revenue?
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%?
Signup and view all the answers
What kind of consultancy do wholesalers commonly provide to travelers?
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%?
Signup and view all the answers
What is the initial capital documentation required for setting up a sole proprietorship travel agency?
Signup and view all the answers
Which of the following is NOT a requirement for registering a partnership travel agency?
Signup and view all the answers
How much is the total amount after adding the PTT of PHP 1,620 to PHP 43,240?
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?
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?
Signup and view all the answers
What is the commission amount for a hotel stay of Php 4,000 with a 10% commission rate?
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.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
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.
