Sample Quiz

Travel Management Company - Commercial enterprise  that specializes in both providing services that caters to the needs of the travelling public. It acts as a partner to both the suppliers and the market. “A one stop shop”

Supplier: Airlines, hotels, sources

Market: Guests, travelers, customers, tourist

Traditional TMC: 

Vendor —  Middleman — Vendee

Vendor = [supplier] hotels, airlines, 

Middleman [ travel management companies]

Vendee = Market [travelers, customer]

Rate minus = commission 

Costs plus/service fee = earned from mark up 

MODERN TMC: Two way

• Pwedeng magiba iba sila unlike sa trad na need sunod sunod

Middleman - vendor 

Middleman - vendee

Characteristics 

Wholesaler - offers discount for group tour packages PWEDENG IBENTA UNG PACKAGE WHICH IS COMMISSIONABLE 

Retailer - counselor or agents from supplier 

Sources of sales and revenues

1. Fixed commission or reasonable markup on net force

2. Commissions

3. Service fees, incentives and rebates

Functions of TMC

• Provides information and expertise related to travel

• Impartially recommends destinations, suppliers, products and services best suited to the needs of the traveler.

• Provides assistance in securing travel documents, such as passport and visas and immigration

• Processes travel arrangements by placing reservations, obtaining confirmations and issuing corresponding tickets or tour vouchers in behalf of the suppliers

• Monitor or track the delivery of products and services to the client.

• Assists in cases of refunds and cancellations

Overview of the role of travel agency and tour operator in the tourism, in the tourism industry its function and organization

TOUR OPERATOR (They are Wholesalers)

• is a person or a company that plans, designs the itinerary, contracts the services needed for the tour package, arranges the tour components and sells the package either directly or indirectly to the public.

TRAVEL AGENCY (They are Retailers)

1. Acts as a retailer to sell that wholesaler's product.

2. An agency that makes the necessary

arrangements for travelers, especially the booking of airline tickets and hotel rooms.

What are their differences?

• TMC [Travel Management Companies] - focus business travel/event planner

• DMC [Destinations Management Companies] - local travel each destination 

• Travel Agencies - with the clients travelers

• Tour Operators -  pre arrange that they sell to other agency

They do bundles, they do services to people. 

Generalist - they offer everything (inbound, outbound, insurance, etc.)

Specialist - specific tour

Classification travel agencies

IATA

• The international air transport association (IATA)

NON-IATA

• Don’t have access mag-ticket

• Can avail portal (pre-paid) and you can issue the ticket without going to IATA

TYPES OF TOUR OPERATORS IN THE PHILIPPINES

• Domestic Tour Operator - pang buong bansa (client:local)

• Local Tour Operator - specific area lang (client: foreign)

• Inbound Tour Operator

• Outbound Tour Operator

• Online Tour Operator 

• Special interest tour operators - hiking, photography (specific packages)

START UP PROCEDURE: In opening a travel and tour agency

1. Selecting your location 

2. Staffing requirements

3. Legal Requirements (DTI, STC, BIR, Mayor's permit SSS, PHilHealth, Pag-Ibig, etc)

DTI - sole proprietorship 

STC - corporate

Fixed costs: Internet, computer, bills, etc

Variable costs: 

PROFITABILITY AND GROWTH FACTOR

1. Increased sales and marketing effort

2. Increase the number of travel counsellors (staffs)

3. Maintain the profitability and sustainability of your market

4. Establish a good track record of production with various suppliers

MONEY SAVING OPTIONS FOR START - UPS

CATEGORY

Operational Costs

Tools & Software

Labor Costs

Marketing 

Suppliers & Resources

STRATEGY

Remote work co-working spaces

Free or low-cost software

Freelancers, outsourcing 

Social media, email marketing

Negotiation, resource sharing

BENEFIT

Reduces overhead expenses

Cuts technology costs

Reduces payroll expenses

Cost-effective customer acquisition

Lowers procurement and operational costs

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