Handout 4 Flashcards
It is significant to invest in the following requirements when setting up a new business
Infrastructure and financial requirements
This is the governing body of the tourism industry.
Department of Tourism (DOT)
This is where single proprietorship businesses (or businesses owned by a single person) are registered.
Department of Trade and Industry (DTI)
All travel agencies or tour operators registered in the Philippines hiring five (5) or more employees must register here to avoid labor cases filed against them.
Department of Labor and Employment (DOLE)
This is where all businesses can secure a Tax Identification Number (TIN)
Bureau of Internal Revenue (BIR)
This is where businesses owned by foreign nationals can secure a valid visa.
Bureau of Immigration (BI)
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
Social Security System (SSS)
This is where the certification and registration of partnership businesses and corporations happen.
Securities and Exchange Commission (SEC)
This is where TAs and TOs can secure a valid mayor’s permit or municipal license.
Local Government Unit (LGU)
This provides TAs’ and TOs’ employees housing and loan benefits.
Home Development Mutual Fund (HDMF)
This provides TAs’ and TOs’ employees, as well as their dependents, a reduction of expenses during
confinement or availing of selected health services.
Philippine Health Insurance Corporation (PhilHealth)
Through this, consumers are more assured that every travel product a travel agency sells is all real and not fake or misleading.
Acknowledgment from the principal suppliers
principal suppliers
airlines, hotels, cruise lines, and car transports
People can simply research and arrange their own tour package called “do it yourself” (DIY).
More options
Travelers can shop around and find not only the best deals but the most cost-effective ones.
Increasing price transparency
Since people have an option to DIY tour packages, they no longer need travel agents or tour operators to have everything arranged for them.
Greater traveler independence
The amount of trust consumers put in brands is decreasing all the time, and a typical consumer will switch brands without hesitation if they get a better offer.
Decreasing customer loyalty
Most travel agencies or tour operators tend to join together to provide better options for their potential clients, thus diminishing the chance of individual growth.
Rise of mergers and alliances
Not all companies have sufficient funds to get enough publicity, which results in bigger companies sucking the life out of smaller companies that haven’t established their name in the industry.
Only a few dominate the market
Before, people would directly seek their local travel agent or tour operator to ask questions about their destination or trip. But now that our technology is fast-paced, they can simply browse the Internet and get as many pieces of information they can get.
Everything is just a click away
