LESSON 1 (ppt ni maam L) Flashcards
1
Q
Can be defined as “an entity engaged in arranging and selling transportation, accommodations, tours, and trips for travelers”
A
TRAVEL MANAGEMENT COMPANIES (TMC)
2
Q
The foregoing definition combines both the traditional and the new way of conducting the business travel.
A
TRAVEL MANAGEMENT COMPANIES (TMC)
3
Q
(travel agents), this means facing clients
A
THE TRADITIONAL WAY
4
Q
conducts the business of travel as an agent or broker for the travel service providers that cater to the needs of the travelers
A
The commercial enterprise
4
Q
acts as a middleman between the vendor, and the vender.
A
TMC
5
Q
The one who reacts to the needs of the vender, while acting as a broker for the vendor.
A
The middle man
5
Q
a selling rate minus a commission.
A
RATE-MINUS
5
Q
This is where the broker is allowed to unilaterally mark up a net cost given by the vendor. This is known as
- a net rate plus a mark-up.
A
NET-PLUS
6
Q
vendor can’t communicate with another vendor because there is a ______
A
middle man
7
Q
A way where they share information equally
A
THE NEW WAY
8
Q
The TMC forms a _________ wherein all parties are treated as partners, equally sharing data and information, and mutually benefiting from open communication and information exchange
A
tri-partite alliance
9
Q
A
10
Q
They are the ones who CAN COMMUNICATE with travel management company
A
VENDOR
11
Q
A
12
Q
It is the opposite of Rate Minus
A
Cost Plus
13
Q
It is open, and not hidden from the client and is the new way
A
Cost Plus
14
Q
The TMC forms a ________ wherein all parties are treated as partners, equally sharing data and information, and mutually benefiting from open communication and information exchange
A
tri-partite alliance
15
Q
What are the three (3) types of business establishments in this country:
A
- Sole or Single Proprietorship,
- Partnership and
- Corporation.
16
Q
The availability of ___, ____, ____ on-line to any interested party make some of the functions of the travel agent redundant.
A
e-rates, booking and confirmation facilities
17
Q
The ______ must be well informed as the would-be traveler.
A
TRAVEL AGENT OF THE FUTURE
18
Q
The ______ will also have to SHARE HIS TRAVEL EXPERIENCE, in addition to his knowledge, andthus become more of a travel manager, rather than a travel agent.
A
travel agent of the future
19
Q
The changing dynamics of the travel business requires that the Travel Agents:
A
- Stop acting as agents for suppliers and principals and become principals themselves
- Needs to play the role of counselors and provide information that is specific to the client’s needs.
- Focus on providing consumers with sound recommendations on Information available and in processing reservations.
- Need to have the ability to process large amounts of information, and narrow down the choices to match the appropriate information with client’s preferences.
20
Q
Travel agents as travel advisors have what?
A
have all the data
21
Q
Owned by a single individual.
A
SOLE OR SINGLE PROPRIETORSHIP
22
Is owned by at least two (2) individuals. The initial documentary requirements are the same as the Single or sole proprietorship.
PARTNERSHIP
23
Is the most common entity of a business set-up for MCs. It requires a minimum of five (5) investors.
CORPORATION
24
a certificate issued to document that an establishment has complied. with the department's minimum standards of its operations to ensure the comfort and convenience of its clients.
DOT ACCREDITATION
25
MAIN FUNCTIONS of a TMC
1. Provide information and expertise.
2. Recommend destinations, products and services best suited to the needs of the client.
3. Processes travel arrangements.
4. Provides assistance in securing travel documents.
5. Assists in cases of refunds and cancellations
26
Sources of Revenues of TMCs
• Negotiated handling fee (cost plus)
• Fixed commission (Rate minus) or Mark Up (Net plus)
• Service fees for other service/s
• Production incentives and rebates.
27
TMC rely on three other ways to generate revenues: What are these?
1. MARK-UP ON NET COST
2. SERVICE CHARGES
3. PROFESSIONAL FEES
31
• is the traditional way
• is hidden from the client
MARK-UP ON NET COST
32
• are open, fixed amounts per person paid by the client for ancillary services such as assistance in securing travel-related documents
SERVICE CHARGES
33
• are open and negotiated
• divided Into three: (1) fixed amount per person; (2) an agreed percentage based on the total cost of the travel arrangement; and (3) a fixed amount per transactions, regardless of the number of passengers
PROFESSIONAL FEES
34
A TMC is organized along three (3) principal activities, namely:
1. Administration,
2. Marketing and Sales
3. Operations
35
Involve all functions of the organization that concern effective management of the company In terms of record keeping, monitoring finances, the well-being of the staff and general maintenance and upkeep of the office premises and equipment.
ADMINISTRATIVE ACTIVITIES
36
Focuses on disseminating information about the organization and its products and services and creating opportunities for sales that will bring revenues o the organization.
MARKETING and SALES
37
Are related to the delivery of the travel product. For retall sales, such as those of the TMC, it effectively ensures all arrangements are in accordance with the clients' requirements. For wholesale, such as those of the tour operator, the functions concern the carefree and timely delivery of the tour package itinerary and its components.
OPERATIONAL FUNCTIONS
38
A ______ is in charge of organizing, contracting, arranging, and putting all the tour components.
Tour operator
39
A ______ role is to assist you in choosing a package that meet your needs.
Travel agent's
40
A ________ , may act as a TO when it packages specific tour arrangements as required by its own clients
TMC/retail travel agent
41
Functions of a TO
1. Conceptualizes plans and develops tour packages.
2. Negotiates with suppliers of travel services.
3. Assembles and integrates the various travel components into a single tour package.
4. Delivers the tour package.
42
Revenue Sources of TO
1. Variable mark-up based on the contracted rate from the suppliers
2. By seeking and negotiating for favorable terms, conditions and concessions
3. Sale of optional tours, excursions and extension stays.
43
Refers to the geographical area included in the tour package, or the area visited by the end-users in the course of delivering the tour product.
Area of Operations
44
Is the physical area, with all the attractions (natural or man-made), all the activities whether spontaneous or planned, the experience of events, and in some instances, where the TO is based.
Area of Operations
45
- Refers to the place of residence of those purchasing and participating in a tour package.
- Does not necessarily mean the nationality of the buyers (tourists or excursionists).
Market or Source of Traffic
46
Its clientele are generally off the street and over-the-counter sales and occasionally other TOs In the country.
Local Tour Operator
47
Operates regular sightseeing tours or tour packages to popular destination in the locality.
Local Tour Operator
48
Primarily a retaller since it deals directly with end-users and occasionally as wholesaler when servicing requirements of another TO.
Local Tour Operator
49
business comes from local associations, schools, companies and corporations and, occasionally, individual travelers who organize summer outings, out-of-town meetings, incentive trips to national destinations
Domestic Tour Operator
50
The packages they prepare are usually on an ad-hoc basis, as and when contracted, and tailor-made to the needs of the client.
Domestic Tour Operator
51
business comes from foreign (outbound) tour operators at the origin country who send clients to national destinations, on regular or ad-hoc packages, based on the requirements of their clients, and regardless of their nationality.
Inbound Tour Operator
52
Thus Philippine TOs servicing the travel needs of balikbayans are considered _____
Inbound Tour Operator
53
The one who designs and assembles tour packages for residents of the Philippines, either foreign or local, to destination abroad.
Outbound Tour Operator
54
The popularity of a destination overseas or the specification requirements of the traveler, either groups or individuals, determine the type of package.
Outbound Tour Operator
55
These are tour packages assembled based on the perceived need or interest of a target market.
REGULAR TOURS (pre-packaged tours)
56
These are pre-packaged and feature well-known attractions or activities that have a high demand.
REGULAR TOURS (pre-packaged tours)
57
Are tour packages that are tailor-made to the requirements and specifications of a particular traveler or group of travelers.
AD HOC TOUR PACKAGES (custom-designed tours)
58
* Independent tours
• Hosted tours
• Escorted tours kaged tours)
REGULAR TOURS (pre-package tours)
59
A tour where participants travel independently without a group or guide.
• Fly/drive tour
• Allows travelers to visit multiple destination during their trip
Independent tours
60
It is a representative of a tour company or ground operator who assist participants with the planning and organizing of their activities and other tour arrangements.
Hosted tours
61
Serves as an information specialist, facilitating the needs and wants of the tour participants.
Hosted tours
62
It offers travelers an opportunity to travel independently, but also to receive guidance and assistance from a host at the tour's destination.
Hosted tours
63
Refer to the individual/s who travel with the clients from the point of origin and back, and acts as the manager of the tour group.
Escorted tours
64
This person is also known as the Tour Leader.
Escorted tours
65
What are these Tour Package Variables?
1. Duration
2. Destination
3. Category of Accommodation
4. Meal Plan
5. Mode and Class of Transportation
66
It is the number of days and nights included in the package.
Duration
67
a package may be for a single destination, or for multiple destinations
Destination
68
the category of the accommodation establishment may vary from a Deluxe, to First Class, Standard, Economy and Budget.
Category of Accommodation
69
It refers to the number of meals per day included in the package, whether served in the place of lodging or outside in a restaurant.
Meal Plan
70
A Mode of transportation refers to air, sea or land travel and type of equipment. Class refers to the grade of service, facility and amenities offered to the passengers.
Mode and Class of Transportation
71
ARE A COMBINATION OF TRANSPORTATION WITHIN ITS DESTINATION TO SIGHTS AND SIGHTS OF INTEREST, TOUR GUIDE'S SERVICES, ENTRANCE FEES, ENTERTAINMENT OR ACTIVITIES AND WHEN NECESSARY, SNACKS AND MEALS.
- IT DOES NOT INCLUDE OVERNIGHT STAY.
SIGHTSEEING TOURS
72
SIGHTSEEING TOUR ARE CLASSIFIED BASED ON DURATION AND/OR TYPE OF OPERATION, AS FOLLOWS:
- EVENING TOURS
- FULL-DAY SIGHTSEEING
- HALF-DAY SIGHISEEING
- HOP-ON/HOP-OFF TOURS
- OPTIONAL TOURS
- PRIVATE TOURS
- SEAT-IN-COACH SIGHISEEING
73
ARE TOURS OPERATED AFTER SIX IN THE EVENING, SUCH AS SUNSET OR DINNER CRUISES. THESE TOUR NORMALLY INCLUDE DINNER AND A DRINK.
THE TERM "NIGHT TOUR" IS TO BE DISCOURAGED AS THIS HAS UNWHOLESOME CONNOTATIONS.
EVENING TOURS
74
ARE SIGHISETING TOURS LASTING EIGHT TO TEN HOURS NORMALLY INCLUDE LUNCH.
FULL-DAY SIGHISEEING
75
ARE SIGHTSEENG TOURS THAT ARE OPERATED EITHER IN THE MORNING OR IN THE AFTERNOON. NORMALLY INCLUDES A SNACK.
HALF-DAY SIGHTSEEING
76
ARE ORGANIZED BY TRANSPORTATION COMPANIES USING THEIR SCHEDULED SERVICE.
HOP-ON/HOP-OFF TOURS
77
PASSENGERS BOARD AND DE-BOARD FROM THE VEHICLE AT DESIGNATED ROUTE STOPS TO SIGHTSEE AT THEIR OWN LEISURE, AND RE-BOARD TO GO TO THE NEXT STOP, AND SO FORTH AND SO ON.
HOP-ON/HOP-OFF TOURS
78
- ARE SIGHTSEEING TOURS THAT ARE NOT INCLUDED IN THE BASIC TOUR PACKAGE.
- A CLIENT WHO WISHES TO AVAIL OF THESE, PAYS EXTRA AT PREMIUM RATES.
OPTIONAL TOURS
79
- ARE OPERATED EXCLUSIVELY FOR INDIVIDUAL TRAVELERS OR GROUP OF INDIVIDUALS.
- AS A COMPONENT OF A TOUR PACKAGE, THESE ARE MOST OFTEN CONDUCTED BY FOREIGN-LANGUAGE SPEAKING TOUR GUIDE.
PRIVATE TOURS
80
REFERS TO THE OPERATION OF GUIDED SIGHISEEING TOURS AND REGULAR TOUR PACKAGES) ON FIXED SCHEDULES, REGARDLESS OF THE NUMBER OF PARTICIPANTS.
SEAT-IN-COACH SIGHISEEING
81
REGULAR TOURS ( Pre-packaged Tours)
- TRANSPORT (TRANSPORTATION)
- ACCOMMODATION
- ITINERARIES
- MEALS
82
ENTAILS THE MOVEMENT OF PASSENGER MAILS, PARCELS AND CARGO FROM AN ORIGIN POINT TO A DESTINATION POINT AND POINT BEYOND, BY AIR, SEA OR LAND.
• THUS, THE TRANSPORTATION PRODUCT FOR PASSENGERS IS PASSAGE; THE TRANSPORTATION PRODUCT FOR MAIL IS PORTAL SERVICES AND PARCEL IS COURIER SERVICES AND FOR FREIGHT 'IS CARGO.
TRANSPORTATION
83
What is the TRANSPORTATION PRODUCT FOR PASSENGERS?
PASSAGE
84
THE TRANSPORTATION PRODUCT FOR MAIL IS?
PORTAL SERVICES
85
PARCEL IS?
COURIER SERVICES
86
FREIGHT IS?
CARGO
87
THIS INDUSTRY INCLUDES ALL COMMERCIAL ESTABLISHMENTS THAT CATER TO THE LOCAL AND DOMESTIC MARKETS
ACCOMMODATION
88
THIS SECTOR MAY BE DIVIDED INTO
- HOTELS, ESTABLISHMENTS IN AN URBAN OR SEMI-URBAN SETTING;
- RESORTS, ESTABLISHMENTS WITH A LEISURE COMPONENTS
- AND OTHER LODGING FACILITIES.
ACCOMMODATION
89
- A PLAN ROUTE OR JOURNEY.
- The elements of an itinerary include the route, distances, travel times, activities and sightseeing during the tour.
ITINERARY
90
When considering tour itineraries, it is helpful to understand some basic guidelines, which may be broken down into five categories:
( P.R.I.D.E. )
Pace, Routing, Interests, Details and Energy
91
It refers to how quickly and slowly an itinerary moves.
PACE
92
routes should be both interesting and efficient.
ROUTING
93
on very significant way to add value to your client's tour is to match their interests with corresponding activities and attractions along the way.
INTERESTS
94
it is important to pay attention to details. Paying attention to the individual parts of a tour ensure a successful itinerary.
DETAILS
95
It is matching the energy level of the client with the energy level and intensity of the tour itinerary
ENERGY
96
- a wide range of meal plans should be available on pre-packaged tours.
- the level and type of plan is one of the factors that significantly affect the price of a tour.
MEALS
97
This type of plan does not include any meals and presents a significant saving to the tour operator.
EUROPEAN PLAN (EP)
98
Tour participants receive a daily light breakfast. Continental plans vary from country to country, however, and in certain countries a more extensive menu is available.
CONTINENTAL PLAN (CP)
99
Tour participants receive breakfast and one another main meal usually dinher.
MODIFIED AMERICAN PLAN (MAP)
100
Tour participants receive all three daily meals as part of their tour package.
AMERICAN PLAN (AP)
101
Tour participants receive a full cooked breakfast.but no other meals are provided.
BERMUDA PLAN (BP)
102
Some of these components are gratuities, baggage handling, service charges, and taxes. These items can be real value to the client, primarily because including some or all of these items simplifies the tour details from the client's perspective. Other elements might include promotional gifts, complimentary drinks or a welcoming event or reception. Typically, these items are less value overall to the client than the items mentioned previously.
ADDITIONAL TOUR COMPONENTS
103
A tour participant can See more destinations in less time.,
TIME EFFICIENCY
104
It is a perceived value to travelers
INCREASED SECURITY
105
This may be particularly important to the travelers who are touring a part of the world.
COMFORT AND PROTECTION DUE TO THE PRESENCE OF THE ESCORT
106
There is the opportunity for clients to see and experience unique opportunities that may not be available to the independent traveler.
EASE AND CONVINIENCE
107
There may be a cost savings to the tour participants depending on the size of the group.
COST SAVING
108
This can e significant particularly to the travelers who have limited personal time.
LESS TIME PLANNING
109
For clients seeking niche travel experience A tour simplifies the details and affords the tour participants much greater safety and security than doing the same itinerary on their own
EASIER AND SAFER NICHE TRAVEL
110
A managerial accounting method that describes when all fixed and variable costs, including manufacturing costs, are used to compute the total cost per unit
COSTING
111
In _____ and _____ it includes, air travel and local transportation, lodging, and other Sight Seeing expenses.
Travel and Tourism costing
112
Identify what type of Plan this is:
Room + Breakfast
Continental Plans (CP)
113
Identify what type of Plan this is:
Room + Breakfast for any one Meal
Modified American Plan (MAP)
114
Identify what type of Plan this is:
Room + All Meals
American Plan (AP)
115
Identify what type of Plan this is:
Only Room - No meals
European Plan (EP)
116
Identify what type of Plan this is:
According to the menu, pay their own bills
A La Carte
117
In order to ear profits the travel agents and travel tour operators add a mark up to the total cost before quoting the price to the client. Generally 7-15% commission
Mark-up
118
Supplier gives to the Travel Agent which includes the commission generally 10%.
Gross rate
119
The market variables, travel motivators and types of travelers discussed previously come into play here. The more information there is about the travelers, the better and more suitable the tour package will be.
Client profile
120
The market variable is matched with the destination characteristics in order to suit the product to the market. A destination is requested in an ad hoc package, while a destination is proposed in a regular tour package.
Destinations requested or proposed
121
The market variables also play an important role here, as the curation will have to suit the client's profile. For example, senior citizens do not like to stay away from home too long. while the young prefer to stay away from the routine (school work, for example) the longer.
Duration
122
The type of accommodations depends primarily on the on the client's budget and socio-economic status
Category of accommodations
123
The number of meals to be included in the basic package is usually based on what is convenient at the destination, and is always aligned with the sightseeing tours and activities included in the package.
Meal plan
124
Activities requested are for ad hoc packages, while activities proposed are for regular tour packages. These will depend on the destination characteristics, sites and sights, and activities.
Sightseeing or activities requested or suggested
125
This aspect is totally dependent on the destination's accessibility by the various transportation modes and client's budget and desired convenience.
Mode and class of transportation
126
These services refer to needs outside the usual and those extraordinary requirements, such as wheelchairs or dietary requirements. When needed, these items are always extra and will have to be included in the costs.
Ancillary services
127
When requested, the costs of these are always prorated. Their inclusion will always depend of the client's request. Example a Russian-speaking tour guide.
Guide and/or tour escort services.
128
This aspect is always subject to the concession and availability from suppliers and the entitlement based on number of participants. The present industry practice is one FOC for every ften
(15) full-paying participants, maximum four (4).
Number of Free-Of-Charge (FOC) allowed or required.
129
It is the process of determining the actual cost of a tour package by detailing the various components of the package, and attaching a specific cost represented by the contracted rate to each, according to the costing methods detailed in this section.
Costing
130
It is determining the selling price by adding a mark-up or margins to the costs. Costing can be done for specific sightseeing tours, Ad Hoc or Regular tour packages and for a Rate Sheet or Confidential Tariff.
Pricing
131
a schedulé of activities and destinations arranged in a chronological order
Itinerary
132
the day-to-day destination-oriented schedule that is proposed and preliminary without any specific times schedules, durations and supplier's names.
SKELETAL ITINERARY
133
specifies the transportation arrival and departure schedule, number of destination involved, the name of accommodations establishments and the length of stay in each, the duration of sightseeing tours and long land transfers involved (if any).
TECHNICAL ITINERARY
134
provikles a narrative of the planned activities and destinations visited. It is produced primarily for marketing purposes.
DESCRIPTIVE ITINERARY
135
The date or the day number of the itinerary
Day
136
All the services and components are itemized and individually specified in chronological order, on a day-to-day basis
Service or Trip
137
It indicates the net unit cost of each service, trip or component
Unit Net Cost
138
This box provides the number of persons per bracket to be used in pro- rating all costs. ______ numbers follow the configuration of the equipment being used.
Passenger' Brackets
139
in order not to re-cost in case of an increase in number of participants, this bracket is based on the proposed number of participants less twenty (20%) percent
Middle column
140
this bracket indicates the proposed number of participants and is the basis for brackets 5 and 7
Left column
141
in order not to re-cost in case of an increase in number of participants, this bracket is based on the proposed number of participants plus twenty (20%) percent
Right column
142
this is the _______ column where details of all cost not entided to complimentary services by the suppliers are written
FOC - Free of Charge
143
this is the _______ column where all details and their costs are specified
Tour Guide
144
this column calculates the total due for individuals opting or single occupancy room;
SWB Supplement
145
This calculates the total reduction due to each navica opera to occupy a triple room with friends or relatives
Triple Reduction
146
the sum of all the costs involved, per person and for each FOC and tour guide
Sub-Total of Cost
147
the total cost of the FOC/s is/are divided by the number in column 5, 6 and 7. Be sure to allocate one (I) FOC for every fifteen (15) participants. In case there are more than one FOC, multiple this cost by the number of FOCs before pro-rating,
Pro-rate FOC
148
the total cost of the tour guide/s is/are divided by the number in column 5, 6 and 7. Be sure to allocate one (I) tour guide for every vehicle.
Pro-rate Guide
149
the sum of all the cost per person, based on the numbers indicated in columns 5, 6 & 7 including the tour escort/s and tour guide/s
Total Cost
150
calculate and add-up the desired percentage of mark margin or profit
Mark-up/Margin
151
This represents the net amount due to ure tour operator (No. 15 plus No. 16)
Net due to Operator
152
It represents the 12% value added tax due calculated by dividing the net to tour operator by 88 (1.00 minus.12 = 88) and added to the net due to tour operator;
Tax due
153
It represents the total amount due to the tour operator (No. 17 plus No. 18)
Total Amount Due
154
should a commission be included for the cient's TMC, this row shows the commission allocated for the retailer;
Agent's Commission
155
This is the total sum of No. 19 (total amount due) and No. 20 (agent's commission);
Sum Total
156
This represents the total amount due with a built-in commission (No. 17 + No. 18 + No. 19) rounded-off as a gross selling price of the package.
Rounded-off as Gross Selling
157
The basic rule to remember when calculating "mark-up/margins" for Ad Hoc packages is:
"The lower the cost, the higher the margin"
