National University CTHM Micro Perspective of Tourism and Hospitality PDF

NATIONAL UNIVERSITY College of Tourism and Hospitality Management (CTHM) Course Name: MICRO PERSPECTIVE OF TOURISM AND HOSPITALITY Course Code: GTHMICR2 Class Section: TOU242 Time: 7AM to 9AM Days: Tuesdays (F2F) & Fridays (Online) Faculty-In-Charge: MARY ANN J. ENTIENZA MICRO...

NATIONAL UNIVERSITY College of Tourism and Hospitality Management (CTHM) Course Name: MICRO PERSPECTIVE OF TOURISM AND HOSPITALITY Course Code: GTHMICR2 Class Section: TOU242 Time: 7AM to 9AM Days: Tuesdays (F2F) & Fridays (Online) Faculty-In-Charge: MARY ANN J. ENTIENZA MICRO PERSPECTIVE OF TOURISM AND HOSPITALITY 2 (GTHMICR2) TOPICS FOR TODAY The Travel Trade Sector o Travel Agencies, Tour Operator and Travel Management Companies o Tour Operations Cycle and Travel Documents -Functional o Departments of Travel Agencies / Tour Operators TRAVEL TRADE SCTOR The TRAVEL TRADE SECTOR of the tourism industry involves the buying and selling of travel products and services. Travel trade intermediaries, such as TOUR OPERATORS and TRAVEL AGENTS, act as middlemen between suppliers and consumers. DISTRIBUTION CHANNELS IN TOURISM Distribution channels in tourism PRINCIPALS WHOLESALERS AND AGGREGATORS RETAILERS CONSUMERS  R E TA I L E R S B2C A B2C (Business-to-Consumer) travel portal is an online platform that allows travel companies to sell their travel products and services directly to consumers. THE DIFFERENCE BETWEEN TOUR OPERATORS & TRAVEL AGENTS WHAT IS A TOUR OPERATOR? ▪A tour operator is a person or company that thinks up ideas for holidays, researches the ideas, designs the holiday itinerary and content, contracts the services needed for the holiday, accommodation, transport, guides, tour leaders or resort reps and then markets the resultant package. ▪They sell the package either directly to the consumer or use the services of a travel agent to do so. A tour operator sells the product that they themselves create. They do not sell anybody else's packages, they sell only their own creations. WHAT IS A TOUR OPERATOR? ▪ A tour operator is what in law is referred to as a "principal", meaning they take responsibility for the package that they create and cover that liability with (usually) a DOT-certified and accredited and / or some form of bonding to ensure that the consumer gets their money back if the tour operator fails, or is flown home if they are abroad when a tour operator fails. ▪ A tour operator has a legal responsibility to look after the client if things go awry. Strikes, natural disasters, personal illness and several other disasters can befall the traveler, better to have someone to take care of things at such critical times. WHAT IS A TRAVEL AGENT ▪Offers the consumer a range of holiday packages that have been put together by a tour operator. They do not, in theory, put together any of their own packages; ▪Sells lots of different holidays put together by lots of different tour operators. They do not usually design or create the holidays they sell, and they do not act as a Principal. ▪The tour operator whose product they sell takes the responsibility for the holiday; the travel agent does not. Therefore, the agent usually does not have a DOT accreditation or any bonding in place, but relies on the tour operator to cover this. THE DIFFERENCE BETWEEN TOUR OPERATORS & TRAVEL AGENTS ANALOGY: If you want to buy a dining room table and chairs, you have two choices. You can go directly to the factory where one particular company makes the table and chairs and buy from the creator of the product. But you will only, at that factory, see furniture made by that one manufacturer. If you go to a high street store and browse their furniture department, you can choose from a range of furniture made by several different furniture makers, but none of the furniture has been made by the high street retail store. In travel, the manufacturer, the factory, is the tour operator. The high street retail store is the travel agent. It's up to you whether you prefer to (a) talk to the creator or the product, or (b) have a wide range of product from different manufacturers to choose from. HOW TO CHECK IF A TRAVEL AGENCY IS LEGITIMATE Verify their accreditation with the Department of Tourism (DOT) in your region Look for industry memberships like IATA (International Air Transport Association) or ASTA (American Society of Travel Agents), check online reviews, confirm their physical address, and search for any complaints filed with consumer protection agencies like DOT AND DTI Always be cautious of agencies with suspiciously low prices or pressure tactics. WHAT IS THE DOT ACCREDITATION? 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.  B2C Travel Agents TOUR OPERATORS TOUR OPERATORS LOCAL REPRESENTATIVE (Destination Management Organizations) THE PACKAGE TOUR The package tour is the typical product of a tour operator. The package tour is a prearranged circular journey for individual or groups. Its price includes all the services of the 'package' like: Transportation Accommodation Food & beverage Recreation and Sightseeing Entertainment Insurance etc. The price does not correspond to the sum of the prices of the various components of the package. A net price paid to the business partners has to be raised by a margin for own cost and profit.  B2C Travel Agents Contracted Price 3% to 10% Mark-up TOUR PACKAGE PRICE = TOUR TOUR OPERATORS OPERATORS TOUR OPERATORS PRICE + MARGIN TOUR PACKAGE PRICE = COST (Sum of the LOCAL REPRESENTATIVE (Destination Management Organizations) PRICES of all Components) + MARGIN  THE PACKAGE TOUR Tour operator typically combines tour and travel components to create a holiday. The most common example of a tour operator's product would be a flight on a charter airline plus a transfer from the airport to a hotel and the services of a local representative, all for one price. Package holidays are a form of product bundling. Product bundling is a marketing strategy that involves offering several products for sale as one combined product. Package holidays are organized by a tour operator and sold to a consumer by a travel agent. Some travel agents are employees of tour operators, others are independent.  THE PACKAGE TOUR Tour operator typically combines tour and travel components to create a holiday. The most common example of a tour operator's product would be a flight on a charter airline plus a transfer from the airport to a hotel and the services of a local representative, all for one price. Package holidays are a form of product bundling. Product bundling is a marketing strategy that involves offering several products for sale as one combined product. Package holidays are organized by a tour operator and sold to a consumer by a travel agent. Some travel agents are employees of tour operators, others are independent. LOCAL TOUR OPERATIONS LOCAL TOUR OPERATORS (LTO) The local tour operator's (LTO) source of business comes from both local and foreign travelers, visiting the destination where the tour operator is based. Its source of traffic is generally off-the-street or over-the-counter sales and sometimes other tour operators in the country. THE TRAVEL AGENCY BUSINESS  THREE BIG REASONS WHY TRAVEL BUSINESS IS IDEAL The travel industry continues to experience significant growth and demand. People are increasingly prioritizing 1. Huge Demand travel and exploring new destinations, whether for leisure, business, or personal reasons. This steady demand creates ample opportunities for entrepreneurs to tap into a thriving market.  THREE BIG REASONS WHY TRAVEL BUSINESS IS IDEAL You can have different revenue streams, making it an attractive option for many entrepreneurs. In addition to traditional travel 2. Multiple services, you can offer specialized Revenue Streams travel experiences, provide travel consulting services, or partnering with accommodation providers and airlines to earn commissions. You can also market to any country not just in the Philippines.  THREE BIG REASONS WHY TRAVEL BUSINESS IS IDEAL Enjoy the benefit of traveling extensively at no extra cost. With benefits and partnerships from travel service providers, it 3. You Can Travel allows you to explore a lot at No Extra captivating destinations. Cost Embrace the opportunity to turn your passion for travel into a fulfilling entrepreneurial journey where the world becomes your office.  QUIZ ABOUT TRAVEL TRADE SECTOR TUESDAY, JANUARY 28, 2025 DISTRIBUTION - CASE STUDIES FOR FINAL OUTPUT TUESDAY, JANUARY 28, 2025 REMAINING TOPICS – JANUARY 31, 2025 REMAINING TOPICS – JANUARY 31, 2025  QUIZ 1.TOURISM SERVICES SECTOR 2.SUPPORT INDUSTRIES AND ALLIED SERVICES TUESDAY, FEBRUARY 4, 2025 REMAINING TOPICS – FEBRUARY 7, 2025 REMAINING TOPICS – FEBRUARY 10, 2025  FINAL OUTPUT GROUP ORAL PRESENTATION (CASE STUDY) FEBRUARY 14, 18 and 21, 2025