TTM Flashcards
TTM
is a very important component of the tourism industry that helps facilitate travel. It operates as a legally appointed agent, representing the principal in a certain geographic area. It is also a business that sells the travel industry’s products and services related to the following:
o Airlines
o Cruise lines
o Hotels
o Car rentals
o Railway transport
o Package Tours
Travel agency
is a person who represents a travel agency. Without the travel agents, it will be impossible for clients to interact with a travel agency. They also act as the following:
* The direct point of contact for a traveler who is researching and intending to purchase packages and experiences through an agency
* A specialist in certain types of travel including specific destinations, outdoor adventures, and backpacking, rail, cruise, cycling, or culinary tours to name a few
* Advisers who can help travelers when they seek advice about their trips
* Professionals who operate at a fixed address and offer services both online and at a bricks-and-mortar
(a traditional business serving customers in a building) location
* Intermediaries who can have a face-to-face conversation with their customers or reach them through phone or e-mail
* Professionals who have a specialized diploma or certificate related to travel services.
travel agent
According to the International Air Transport Association (IATA), the international regulating body for airlines, passenger sales agents, and cargo agents, there are two (2) types of travel agents in the Philippines
These are agents accredited by IATA. Having been accredited, they are trusted by the airlines to issue tickets, directly oversee the rebooking, reissuance, or revalidation of tickets issued, or cause the endorsement to other airlines in case needed. Example: Golden Sky Travel and Tours (www.goldenskytravelandtours.com)
o IATA Travel Agents
According to the International Air Transport Association (IATA), the international regulating body for airlines, passenger sales agents, and cargo agents, there are two (2) types of travel agents in the Philippines
As the name implies, they are not accredited by IATA, hence, are not authorized to issue tickets. They either buy from an IATA agent or from an airline company directly. Example: Gulf Air Travel Agents (www.gulfair.com)
o Non-IATA Travel Agents
o It offers a limited number of services, which may be specialized, that has a reputation for personal service and that can be family-owned or owned by an individual. Generally, a small town will have at least a shop for this. Example: Gates Travel (www.gatestravel.co.uk)
- Independent
o It is located in a certain region, which may have a head office to go along with a number of branches that were established with one (1) shop and one (1) owner that has grown. It possesses knowledge of the local market and offers fewer services than multiple travel agencies. Example: Althams Travel (www.althams.co.uk)
MINIPLE
o It is located in many different areas of a particular country that are on main high streets or inside shopping centers. It offers a wide range of products and services in all its shops or branches. Examples: Thomas Cook (www.thomascook.com) and the Flight Centre (www.flightcentre.co.uk)
MULTIPLE
It is also known as the online travel agent that can also be a major tour operator. It operates and sells all travel and tourism products online. Examples: Expedia (www.expedia.co.uk) and Lastminute (www.lastminute.com)
E AGENT
o It is comprised of huge retail travel agencies that can also be in huge shopping centers. It has a specialized staff for the different types of holiday. Example: First Choice (www.holidayhypermarket.co.uk)
HOLIDAY HPERMARKET
o It refers to home-based travel agents or people who are working from home—both part time or full time. Example: Travel Counsellors
HOMEWORKER
o It specializes in particular types of holidays, such as Christmas season and Thanksgiving, and is either an independent or miniple travel agency. Example: STA Travel (www.STATravel.co.uk)
SPECIALIST
o It is believed to be the very first travel agency and is considered as the longest travel and tours company in the world. The beginning of travel agency started in England in the year 1758 with typical rich customers as its clients.
- Cox & Kings (1758)
o He is known as the “father of travel agency.”
o He opened a business that was dedicated to help out the Britons to see the world. He was the first person to organize a packaged tour, especially for travel by groups. In 1926, Thomas Cook opened his headquarters in the very fashionable Berkeley Street in London.
- Thomas Cook (1841)
who was chosen to be the general agent to the regiment of Foot Guards in India under the command of Lord Ligonier. He worked on housing and feeding the guards and carrying favor with the military of Britain establishment. He became successful because of his ability to seek funds from various sources and creative business partners. He went on a partnership in the year 1765 with Mr. Drummond, whose family ran the London Bank, and had flourished their partnership becoming agents for eight (8) more regiments.
RICHARD COX
o This era helped travel agencies boom as a business because of commercial aviation. Many of the brands that are familiar today, such as the Queensland and Northern Territory Aerial Service (also known as Qantas), Delta, American Airways (today’s American Airlines), and Pan American World Airways (PanAm), were formed at this time.
- Aviation Development (1920s)
o Countless travel agencies were already present since Cox & Kings, which was believed to be the first travel agency. After the World War II, middle-class people were the target market of the travel agents. This was the time when families could afford beach holiday packages. Travel agencies became more popular particularly to the high-class society who wanted a hassle-free vacation. People began to realize that it was very convenient and practical for them to have a package holiday tour rather than doing all things by themselves, like planning and preparing.
- Post World War II (1947–1953)
o On a parallel track with the growth of the airlines was the growth of travel agencies. Many travel agencies became important sales and booking channels for the airlines. As airline routes and booking processes became more complicated, travel agents became a more popular method for consumers to book their airline tickets. However, travel agents wanted more access to airline schedules and fares so they could sell tickets more efficiently and automate their side of the booking process. Thus, it gave birth to other airline companies creating their own systems—one of which was Delta Air Lines’ own Delta Automated Travel Account System (DATAS).
- Airline Reservation System (1960s)
o There are various travel agencies nowadays. As the time changes, the demand also changes with different trends. Travelers expect more options and a customized approach in their travel needs. Changes in booking and reservation can also be observed.
PRESENT TIMES
plays a vital role in the travel business. It assists individuals or groups who wish to do any of the following:
o Take trips
o Plan different itineraries
o Make a reservation for tours, transportations, and hotels
o Obtain or prepare airline tickets
o Perform other related services such as designing a different tour and keeping the suppliers’ product and brand knowledge.
TRAVEL AGENCY
A travel agency can serve as the source of information, especially for first-time travelers. It can provide a brief history, culture of the people, and specialties of a traveler’s target destination. It can also easily determine whether the prospective travelers are in need of travel documents like a passport.
- Provide information and expertise
A travel agency can recommend a specific mode of transportation or an airline schedule that best suits the client’s location preference, budget, and the purpose of the travel itself. It can also recommend activities that would live up to the client’s expectations of the forthcoming trip.
- Recommend a particular destination, suppliers, products, and services that tailor fit the needs of the client
A travel agency can assist in securing the necessary travel documents, such as a passport, a visa, and immigration clearances.
- Assist in securing tourist or business travel documents
is an official travel document provided by the government of a country which proves that the owner is a citizen of that particular country. It also allows people to travel overseas. Here in the Philippines, one can simply get a passport by securing a passport application schedule online care of the Department of Foreign Affairs (DFA).
PASSPORT
is also an official document or mark made on a passport that will enable one to enter or leave a particular country. Internet nowadays has automated processing of most travel documents, which some clients find more convenient and cost-effective. However, clients can simply ask for the services of a travel agency to monitor the progress and the outcome of the travel arrangements along with most of their travel documents.
VISA
Some destinations require registered travel agencies to secure for travelers
VISA
– A travel agency can determine the total cost of the travel arrangements and the issuance of the transportation documents and tour vouchers.
- Take care of travel arrangements by placing a reservation, obtaining confirmation, and issuing corresponding tickets or tour vouchers
Booking with a travel agency includes the clients’ safety. If an accident took place during the tour or trip, the clients should be aware of what liabilities the agency can cover and which ones cannot. The safety of the clients should be of utmost priority. However, some travel agencies found a way to avoid being liable and any form of misuse or misconception by asking their clients to sign a waiver.
- Ensure the clients’ safety
the travel arrangements made for a client’s trip didn’t go as planned due to unavoidable circumstances, and legitimate claims for a refund is in order, a travel agency may assist a client to secure the refund from the supplier of services.
- Assist in cases of refunds and cancellations
As travel specialists, travel agencies can help clients maximize their tour/trip, most especially for those who have limited time. An itinerary is a travel document that serves as a record of the schedule, timetable, agenda, program, tour, destination, accommodation, and mode of transportation for a trip or tour.
- Make time-saving itineraries
the ability to speak clearly and directly, to establish and use networks (people-connection) and fluency in other languages aside from English.
- Verbal and written communication
The ability to know how to define one’s role as a member of a team and identify the strengths and weaknesses of team members.
- Ability to work independently and with a team
the ability to develop creative, innovative, and practical solutions, to show independence and initiative to identify and solve problems, and to resolve customer concerns about complex project issues.
- Problem-solving
can translate ideas into action, generate a range of options, and identify opportunities not obvious to others.
- Initiative
can manage time wisely and set priorities, can allocate people and other resources to tasks, and is resourceful.
- Planning and organizing
has the enthusiasm for continuous learning, open to new ideas, and has the ability to acknowledge the need to learn to accommodate change.
- Interest and willingness to learn
has a foundation of basic information technology (IT) or computer skills, which includes documentation, research and support, and able to use IT to organize data and use technology as a means of communication.
- Technology-savvy
the ability to think and react quickly.
- Ability to think on one’s own feet
has a sense of responsibility.
MATURITY
has no issue to work across different ages irrespective of gender, race, religion, or political persuasion.
ABILITY to create rapport with different kinds of
the ability to express oneself confidently and has self-recognition.
- Confidence
has adaptability or the ability to adjust to change; team-oriented; being positive at all times to motivate others; and passionate in one’s craft.
leadership
focuses on areas like ticketing (air, train, and cruise), domestic hotel bookings, coach reservations, car rentals, package tours, conferences, meeting arrangements, and trade fairs for earning revenue
travel agency
Travel agencies generally find the sale of hotel rooms for a certain duration as very profitable and attractive than other sources of income. Even though online bookings are made available directly for customers, all categories of accommodation also consider the sale of rooms through retail travel agencies as a very convenient and cost-effective option.
- Hotel room reservation commission.
sell package tours directly to customers on the price printed on tour brochures, making them as intermediaries between the suppliers and the customers. They earn commissions or incentives after selling the suppliers’ products and services which are inclusive in package tours. The percentage of how much travel agencies get depends on their agreement with the suppliers.
. Travel agencies
Selling package tours has become an appealing business option for travel agencies. There is a growing demand for organized domestic package tours, as well as inbound and outbound package tours, from travel companies.
- Package tour commission
Earning commissions for reservation of ground transport is a traditional source that a travel agency heavily depends on while booking different types of transports for their own clients. There are transport operators having hundreds of vehicles that are available as transportation service providers.
- Transport booking commission.
Travel agencies organize MICE activities for business houses and companies. Specialized event management companies deal with trade fair, exhibitions, conference, conventions, congress, political rally, and meetings of different scale and size. The wholesalers of these activities promote directly and through retail travel agencies.
- Meetings, Incentives, Conventions and Exhibitions (MICE) commission
. Travel agencies do the retailing of foreign currency directly to customers who plan to travel abroad. They also earn commission from the wholesale foreign exchange dealer for the transactions of foreign currencies. Most of the foreign exchange dealers deal with US dollar, Great Britain pound, Singapore dollar, Australian dollar, euro, Japanese yen, and franc.
- Transaction of foreign exchange commission
Travel agencies take the insurance services from insurance companies for package tours and suggest the clients to apply for an insurance policy covering medical aid in case of emergency. There are merits of taking insurance policy while traveling. Insurance companies offer commission on the insurance policy.
- Insurance commission
Travel agencies receive advance payments for booking hotel rooms, airline seats and a berth in cruise lines, airline and train tickets, and hiring a coach or light vehicles. Travel agencies get time to rotate the money or go for term deposits for which they can get interest or make down payments for borrowing loans from banks.
- Revenue from bank interests.
Travel agencies can also take payments through credit or debit cards to get commissions from banks. Many customers find it more convenient to make card payments. The concept of “travel now and pay later” has gained more leverage. With this, travel agencies get a percentage (depends on the agreement with the bank or credit/debit card company) if their clients opt for card payment.
- Revenue from card payments
has no more than 10 employees, with the manager supervising all the three
(3) departments as shown in Figure 1. On the administrative side, the backup staff is made up of a secretary, a bookkeeper, a cashier, and a utility staff for janitorial and messenger services. Operations has a travel counselor or counter staff, backed up by a ticketing and reservations staff, and a liaison officer. The manager acts as the marketing person, backed up by an account executive to perform the sales functions. To reduce staff costs, the accounting functions would be out-sourced (Claravall, 2013).
- Small-sized travel agency
refers to the arranged combination of at least two (2) of the following travel components: transport, accommodation, and other tourist services that account for a significant proportion of the package. A good example of a tour operator’s product is 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 (1) price. It also organizes conducted tours to the various tourist spots and manages the travel and stay of tourists (Sharma, 2018).
package holiday
had about 20 or so employees, with three (3) department heads. The upper management is made up of a general manager, an individual to oversee all electronic data and manage the automated systems and procedures, and an assistant general manager backed up by a secretary as shown in Figure 2. A full-time accountant, who in turn is assisted by a bookkeeper, a cashier, and a utility person, backs up the administrative manager. The operations manager, backed up by a travel supervisor, oversees the travel counselors or counter staff and the ticketing and reservations staff. There would be an additional liaison staff. The upper management acts as the agency’s marketers, while a sales manager oversees the account executives (Claravall, 2013).
- Medium-sized travel agency
controls, books, devises the whole trip, and typically combines tour and travel components to create a package holiday
tour operator
has at least 30 employees headed by the managing director or a general manager—the former being a stockholder and member of the board of directors, the latter an employee. A deputy managing director or an assistant general manager backs them up. A comptroller oversees the management of the company’s database and ensures that electronic and automated systems and procedures would be in place. An executive assistant augments the general manager. On the administrative side, a personnel officer is hired to handle human resources and a number of collectors is added to collect the ever-growing amount of receivables. The operational functions are divided into travel management and tours operation as shown in Figure 3 (Claravall, 2013).
- Large-sized travel agency
This type of operator caters to both local and foreign travelers visiting the destination where the tour operator is based. Its clientele is generally off the street and over-the- counter sales and, occasionally, other tour operators in the country. It operates regular sightseeing tours or tour packages to popular destination in the locality. An LTO is primarily a retailer since it directly deals with clients and occasionally acts as a wholesaler when servicing requirements of another tour operator. A good example is ABC Tours & Co. Manila facilitating an Intramuros Tour for Malay expats.
- Local Tour Operator (LTO)
It is a type of tour operator that designs and assembles tour packages for the residents of a country where the tour operator company is based—either foreign or local, bound to destinations overseas. The popularity of a destination overseas or the specification requirements of the traveler, either groups or individuals, determine the type of package. A good example is ABC Tours & Co. Manila sending Filipino teachers to Cambodia for an Angkor Wat Tour.
- Outbound Tour Operator (OTO).
This type of tour operator usually provides local associations, schools, companies and corporations and, occasionally, individual travelers their summer outings, out-of-town meetings, and incentive trips to national destinations. The packages it prepares are usually on an ad- hoc (formed/arranged) basis, as and when contracted, are tailor-made to the needs of the client. A good example is ABC Tours & Co. Manila facilitating National Museum of Natural History Tour for the students of STI.
- Domestic Tour Operator (DTO)
This is done to meet the needs of a specific client to address the perceived needs of a target market (regular market).
- Conceptualizes plans and develops tour packages
This type of tour operator is locally based and works to promote the destination as a whole to non-residents traveling to another country. It makes local arrangements for airport pickup and drop-off, and for activities, hires local guides, attends to all the details of the stay, and helps in times of emergency. A good example is Mr. Park, a factory worker in Korea, who asked ABC Tours & Co. Manila to facilitate a Davao City Tour for him and his family.
- Inbound Tour Operator (ITO)
is to essentially sell accommodation, transport, activities, and transfers in a combined all-inclusive package.
The role and importance of a tour operator
is where a tour operator plans and develops a tour package based on a set of specific travel components provided by a specific request. These requests include the number of pax (the number of participants), the duration of the package, the preferred destinations, the category of hotel desired, among others.
Ad-hoc Tour Package
is where a tour operator puts together a tour package without considering the specific and special interest or requirements of a certain traveler or group.
Regular Tour Package
This means having access to negotiated rates (or contracted rates) from travel suppliers who are more competitive than retail prices. These can be negotiated based on the tour operator’s production track record, the market potential of the package being developed, or the influence of the negotiator. This also means that tour operators have special terms and conditions with the suppliers, such as not having to pay the deposit payment to receive confirmation of reservations, having seats or beds allocation, and having reasonable cut-off dates.
- Negotiates with suppliers of travel services
It means that a tour operator acts as an integrator. It contracts the transportation services, such as airlines, bus/car operators, shipping or cruise lines, the hotels for lodging and meals, the restaurants and nightclubs for entertainment, and tour guides. It also contracts the most suitable or competitive travel components of transportation, accommodations, and other services, and combines these into a single tour package that is more competitive than purchasing the services individually.
- Assembles and integrates the various travel components into a single tour
This refers to the tour operators’ capability to provide the most suitable option for the tourists to stay in, visit, or leave the city because most of them own a high volume of travel services across carriers, services, and accommodation.
- Provides the most convenient option
The contracted rate is negotiated based on the tour operator’s production track record, its market potential, or influence.
- Variable mark-up based on the contracted rate from the suppliers
This means that a tour operator can gain an advantage which may translate to additional revenues or favorable purchase conditions over its competitors. For example, a tour operator may be required to pay a one-night deposit at a lodging establishment before obtaining a confirmation while another tour operator may be exempted from this requirement. A tour operator may have a 60-day credit line, while another may have a 90-day credit facility with the supplier. Tour operators may also be given complimentary services from suppliers, which they can include as part of their tour packages for a fee.
- Seeking and negotiating for favorable terms, conditions, and concessions
means a thing that is granted, especially in response to demands.
Concession
This means that the sale of a service which is excluded from the price of the original tour package purchased. At the end of the tour, clients may decide to extend their stay at the end-point (final stage of a period or process) of the tour package, thus generating extra sales for the tour operator.
- Sale of optional tours, excursions, and extension stays
means a short journey or trip; that during the operation of the tour package, additional revenues may be generated by the sale of optional tours or services.
Excursion
Souvenir shops may grant a tour operator with commissions depending on the number of generated sales. However, it is the tour operator’s responsibility to ensure that those souvenir shops that grant commissions on sales generated will maintain reasonable retail prices that are at par with the other retailers.
- Shopping commission on sales generated
QUALITY
is a significant economic activity of the travel, lodging, retail, and entertainment subsectors supplying the needs of tourists. It is a significant socio-cultural activity providing cultural experiences to tourist markets
Tourism
QUALITY
● It has two (2) main elements:
movement, and
overnight stay outside the permanent residence in various destinations.
QUALITY
referring to the travel to and from a destination
movement
