0% found this document useful (0 votes)
798 views10 pages

TRAVEL AGENCY Reviewer

This document defines different types of travel agencies and how they operate. It discusses general sales agents, retailers, consolidators, and online travel agencies. It also provides a brief history of the travel industry and describes the typical functions and components of a travel agency, including personnel roles like managers, accountants, and marketing staff. Travel agencies make money through service fees, commissions from airlines and hotels, and contracted rates. The document compares full-service travel agencies to online travel agencies.

Uploaded by

Andrea Bernardo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
798 views10 pages

TRAVEL AGENCY Reviewer

This document defines different types of travel agencies and how they operate. It discusses general sales agents, retailers, consolidators, and online travel agencies. It also provides a brief history of the travel industry and describes the typical functions and components of a travel agency, including personnel roles like managers, accountants, and marketing staff. Travel agencies make money through service fees, commissions from airlines and hotels, and contracted rates. The document compares full-service travel agencies to online travel agencies.

Uploaded by

Andrea Bernardo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 10

PRELIM TOPIC 1  

Travel Management Companies/ Travel Agency  GENERAL SALES AGENT 


  - Travel Agencies that act as a Sales and Marketing
ARTICLE OF THE TOURISM CODE OF1980 representative for foreign travel companies, allowing them
DEFINES A TRAVEL AGENCY  to have offices in countries other than where their
  headquarters are located. 
A Travel and Tour Agency is an entity engaged in the -The GSA receives commission of around 3-5%
business of extending to individuals or groups travel commission on all the tours/land arrangements sold in the
services and assistance to include documentations, region/country that they represent 
ticketing, booking for transportation and/ or  
accommodation arrangements, handling and/ or conduct of RETAILER 
tours within or outside the Philippines whether or not for a -Sell tourist products directly to the public on behalf of the
fee, commission or any form of monetary consideration.  product suppliers and in return gets commissions 
   
  CONSOLIDATOR 
Travel Agency  -High volume sales companies that specialize in niche
• A commercial establishment where a prospective traveler markets. They may or may not various types of services at
can secure information, expert advise and make single point of access. These can be hotel reservations,
arrangement to travel by air, sea or land to any part of the flights or car rentals and at times the services are combined
world.  into vacation packages. 
  -They do not sell their product directly to the public, but act
How do Travel Agency Makes Money?  as wholesalers to retail travel agencies. The sole purpose of
o service fees  the consolidators is to sell to ethnic niches in the travel
o net/private fares/commissions from the airlines, industry. 
and  -No consolidators offer everything; they may only have
o Contracted rates/commissions from the hotels.  contracted rates to specific destinations. 
   
  ONLINE TRAVEL AGENCY 
Brief history of Travel Agency  -OTA stands for: Online Travel Agency. OTAs are online
  History of Travel Business  companies whose websites allow consumers to book
  various travel related services directly via Internet. They
In 1822, Robert Smart of Bristol England  are 3rd party agents reselling trips, hotels, cars, flights,
> First steamship agent  vacation packages etc. provided / organized by others.
 Lynmouth harbor port village cost sea boats Bristol (klook, agoda, and trip.com) 
channel North Devon England Europe Great Britain   
 
In 1841, Thomas Cook First Rail Excursion Agent  Comparison between FULL T.A and OTA 
> He began running excursion train from Leicester to  
Loughborough 12miles trip. He carried 570 pax  FULL-SERVICE TRAVEL AGENCY 
  o Expertise. Can suggest and arrange travel plans 
In 1850, Thomas Bennett  o Service. During cancellation, rebooking,
-First specialist in individual inclusive travel set up a assistance is on the way. The hassle will be pass on to
business as a trip organizer and  the agents 
Provided tourist with itineraries, carriages, provisions and a o Can block the same rate within 
travel kit  o 24hrs or more 
-He frequently arranges individual scenic tour in Norway  o No hidden charges/fees 
o Makes travel less stressful 
Types of Travel Agency  o Provide personalized attention 
 Consortium   
 General Sales Agent (GSA)  ONLINE TRAVEL AGENCY 
 Retailer  o Convenient. Booking anytime day or night. 
 Consolidator  o Easy Access. You can check the customer
 Online Travel Agents  reviews of the things/places you want to go. 
  o Less phone time 
CONSORTIUM  o Price. You can shop around 
-  A group of travel companies that enter into a voluntary and choose the best price. 
association to share resources in order to gain market o Get instant answer to availability inquiries 
advantage. In travel, usually used to refer as groups of  
suppliers that offer higher commissions and other Functions & Components of Travel Agency 
incentives to travel agencies. (the advantage travel Travel Management Company Cycle 
partnership, worldchoice, and elite travel group)  1. Providing travel information and advice 
2. Determining fares, rates and professionals’ fees  General Manager / Managing Director 
3. Preparing quotations and travel proposals  -Supervises the functions of the whole office branch or the
4. Requesting reservations and obtaining total business itself. 
confirmations   Secretary / Executive Assistant 
5. Issuing tickets, tour vouchers and exchange -Perform required tasks by the manager 
orders  -Monitor office correspondence 
6. Providing travel documentation assistance  -Answer calls 
7. Processing travel accounts  -Maintain effective filing system 
8. Evaluating delivery  -Prepares minutes of the meeting in the company 
   
Providing travel information and advice  Administrative Officer / Administrative Staff 
First step is to obtain all necessary information from the -Assists the Executive Assistant or the Manager in their
prospective client and providing suitable recommendations tasks. 
that meets the client's needs, preferences or fancies; this  
will enable the preparation of a travel arranges proposal and PERSONNEL SECTION / HUMAN RESOURCE 
the checking of availability of proposed suppliers.  DEPARTMENT 
  o HR Manager 
Determining fares, rates and professionals’ fees  o HR Officer / HR Staff / HR Specialist 
Putting together the costs of transportation, -Involved in the hiring of employees 
accommodations, sightseeing tours and tour packages, -Formulates hiring policies and compensation scheme 
cruises or other service included in the itinerary is the next -Education and training esp. in GDS trainings 
step. Part of this step is to determine the appropriate mark- -Keeps all the 201 Files or the Employee's Data 
up, service charge or professional fee and see the client's -Evaluation of staff performance 
acceptance of the proposed arrangements.  -Implement disciplinary actions 
   
Preparing quotations and travel proposals  ACCOUNTING SECTION/DEPARTMENT 
This step aims to get the client's consent on the travel o Accountant 
quotation or proposal and agreement to reserve and -Does all tasks pertinent to billings, credit, collection 
purchase the travel services based on the price proposed or -Billings/Invoices 
amount indicated  -Prepare the payroll and pay slips 
  -Vacation Leave and Sick Leave Ledgers of
Requesting reservations and obtaining confirmations  employees 
This step entails requesting for space or services with the -Prepare financial statements 
suppliers in advance by preparing all necessary forms and -Prepares annual reports to BIR, SSS, PhilHealth, Pag-
correspondence. Obtaining the corresponding confirmations Ibig 
and seeking alternative supplies in case of need - when o Bookkeeper / Billing Officer 
space is fully booked is also included in this step  - Assist the accountant in his tasks 
 
Issuing tickets, tour vouchers and exchange orders  FINANCE SECTION
Once all arrangements are confirmed, preparing and issuing o Cashier 
transportation tickets, exchange orders and tour vouchers
-Handles all cash records 
for the suppliers is the next step. 
-Oversees the cash flow of the organization 
 
-Receives all payments 
Providing travel documentation assistance 
-Monitor (payment) collections 
On a case-to-case basis, provide assistance in the
-Process petty cash/cash advances disbursements 
preparation, filing and acquisition of all necessary
-Prepares deposits and checks 
documents for travel and the necessary supporting
-Ensure that payments to suppliers are duly deposited 
documents thereof. 
 
 
GENERAL SERVICE SECTION 
Processing travel accounts 
o Security 
This step involves the collection of final payments due
from clients and payment due to suppliers.  o Sanitation Officer (Janitor) 
  o Maintenance 
Evaluating delivery  o Communications (IT Technicians) 
The last step is the assessment of the clients' satisfaction in  
the travel arrangements. This is usually a post-trip activity  Sales and Marketing Department 
 
Structure of Travel Management Company  SALES 
 Administrative Department  o Counter Sales (in-house): Sales Manager,
GENERAL ADMINISTRATION  Travel Counselors, Travel Specialist,
Ticketing Officer, Reservation Agent/Officer,
Counter Sales Office, Sales Account Executive, TRAVEL LINKAGES 
Account Executive 1. Transportation Companies 
-Accommodate walk-in clients' inquiries, reservations  2. Accommodation Companies 
-Book and issue airline tickets  3. Insurance Companies 
-Negotiate rates with suppliers  4. Global Distribution System (GDS 
-Prepare tour proposals / quotations  5. Government Agencies 
-Prepares sales report  6. Travel Trade Association 
-Follow-up with accounts/clients through Telemarketing  7. Organizations 
-Represent the company in business-related social  
activities  Components of Travel agency 
Any sales activity  Transportation Companies 
o Field Sales (corporate): Corporate Sales  Transport providers are those operating any major form of
Manager, Corporate Sales Executive, Account transport. They could be: 
Executive, Sales Account Executive  -Airlines 
-Same tasks with in-house sales staff  -Cruise Lines 
-Corporate Sales - visits different companies in and out of - Car Rentals 
the country.  -Rail Companies. 
-Accompany clients in their tour (as necessary) 
-Any sales activity  A tourist's choice of transport would depend on the travel
  budget, destination, time, purpose of the tour, and
MARKETING  convenience to the point of destination. 
o Product Development Officer / Product   
Development and Research Officer /  Airline Companies 
Business Development Officer  The list of Airlines enumerates local airlines in the
- Reviews existing customer database, product,  Philippines which have a current Air Operator's Certificate
and market profiles  issued by the Civil Aviation Authority. 
-Analyzes product characteristics, strengths, weaknesses  o Passenger Airlines 
-Upgrade product offerings based on market  o Regional Airlines 
needs/wants and current trends  o Charter Airlines 
-Negotiate special rates  o Cargo Airlines 
-Prepares travel tariff (price list)   
-Makes tour packages  Passenger Airlines - A passenger airline is an airline
  dedicated to the transport of passengers. There are several
Operations Department  types of passenger airlines, mainly; 
o Operations Manager  Mainline airlines or Premium airlines, operate flights by
- Monitors and oversees all tour operation activities  the airline's main operating unit. Also known as "Full
o Airport Representative  service" or "Legacy" 
-Tasked to welcome and pick-up guests at the airport Low-cost carriers, giving a "basic", "no-frills" and
and bring them to their accommodation  perceived inexpensive service 
o Operations Staff / Tour Coordinator  Business class airline, an airline aimed at the business
-Monitor the whole tour operation  traveler, featuring all business class seating and amenities 
Accompany the group during their tour   Flag carriers, the historically nationally owned airlines
o In-house Tour Guide  that were considered representative of the country
-Accompany the group during the tour and give overseas. 
substantial information about the  Regional Airlines - airlines that operate over shorter non-
destination/attraction; includes hotel check-in and intercontinental distances, often as feeder services for
check-out procedures  legacy mainline networks. 
Drivers / Driver Guides  Charter Airlines - operating outside regular schedule
-Bigger TMCs have their own tourist vehicles and drivers intervals; renting an entire aircraft 
for their ours.  Cargo Airlines - Cargo airlines (or airfreight carriers, and
  derivatives of these names) are mainly dedicated to the
Components of Travel agency  transport of cargo by air. 
 What is travel?   
Travel is moving location using different types of Cruise Line Companies 
transport.  Cruise products available in the Philippines Today are
Whereas people can travel by: road, air, sea or rail.  divided into DOMESTIC and INTERNATIONAL 
 Though we know that travel is changing location, A travel o Domestic Maritime Products 
agency serves two types of clients:  o International Luxury Cruises 
 Business travelers   
 Leisure travelers  Car Rentals Companies 
  -may be chauffer driven or self- drives. 
-Most travel agencies are able to book a selection of vehicle -Travel insurance protects the travelers against the personal
types anywhere in the world.  as well as baggage losses resulting from a wide range of
-As a rule, a valid international driver's license is travel related happenings and problems. 
REQUIRED.   
-Some may be DOT ACCREDITED TOURIST What does a Travel Insurance Cover? 
TRANSPORT  1. Travel insurance can reimburse you on the
OPERATORS and have offered a variety of transportation following expenses: 
solutions to fit each travelers' different needs.  2. Canceled trips 
  3. Medical emergencies 
Rail Companies  4. Lost baggage 
In the Philippines presently is used mostly to transport 5. Emergency Evacuation 
passengers within Metro Manila and the nearby province of 6. Legal costs (for unexpected incidents you didn't
Laguna, as well as a commuter service in the Bicol Region.  cause) 
  7. Protection of property (gear and possessions) and
Major operators  more. 
Government: DoTr (PNR, LRTA)   
Private: LRMC (Line 1, O&M), MRTC (Line 3), MRT7I Global Distribution System 
San (Line 7)  -Is a primary reservation tool for travel agents. And most
  travel business, used the GDS. These is a network/platform
DAY TRAINS  that enables travel agencies and their clients to access travel
Coach Car Seating-open with center aisle and two seats on data, shop for and compare reservations options and book
either side  travel. 
  o Travelport (Galileo, apollo, wordspan) 
First Class Seating- two seats on one either side of the o Amadeus
aisle and seats on either side  o sabre 
 Second Class Seating 
- two seats on either side of the aisle.  Government Agencies 
 Compartment Car - separated in to cabins which open to There are local and international agency that assisted and
corridor along side of the car.  promoted tourism. Some of those are; 
o Department of Tourism 
NIGHT TRAINS  o Philippines Embassies and Consulate Offices 
Sleepers - Are separate compartments, with 1,2, or 3 beds. 
o National Tourism Offices 
Sometimes it has a wash bin inside the cabins. 
  o Tourism Infrastructure and Enterprise Zone
Couchette Car - Offer standard sleeping accommodation Authority 
where they offer a place to lie down with a pillow, a o Tourism promotions board 
blanket and a sheet.  o Intramuros association 
 Sleeperette - In some night trains "Reclining  o National parks development committee 
Seats" are available.  o Nayong Pilipino foundation 
In the Philippines we have similar to this in our Philippine   
National Railways (PNR)  Travel Trade Association 
  TRAVEL TRADE
Components of Travel agency  - is made up of travel agents and tour operators, also
Accommodation  referred to as intermediaries or middle men, and the tour
guides. 
Accommodation Companies  -Trade associations are set up to represent the interests of
The accommodation may be marketed individually or their members. 
through the tour operators in the form of package. This -AITO stands for Associations of Independent Tour 
component consists of those who provide accommodation Operators and was set up for smaller travel companies. 
to the people in the form of;  -These companies are in place so if anything goes wrong on
o Hotels  your holiday, all your money is protected and safe 
o  Resorts
o Apartments / Transient Lodging   Travel agency is one of the most important organization
o Inns or Guest Houses etc.  in the tourism private sector which plays a significant and
  crucial role in the entire process of developing and
Insurance Company  promoting tourism in the country or at a destination. It is a
Insurance Companies  travel agency which packages and processes all the
attractions, accesses, amenities and ancillary services of a
Travel Insurance  country and present them to tourists. travel agency is
-Some large-scale travel agencies perform additional known as 'image builder 'of a country. 
functions to serve its clients. 
Tour Operators is an organization, firm or company who Organizations 
buys individual travel components, separately from their The National Professional tourism organizations in the
suppliers and combines them into a package tour, which is Philippines are the following: 
sold with their own price tag to the public directly or o Philippine Travel Agencies Association (PTAA) 
through middlemen.  o Hotel and Restaurant Association of the
  Philippines (CHRAP) 
Organizations  o Tourism Educators of Schools, Colleges, and
World Tourism Organization:  Universities (TESCU) 
Tourism Organization In The Philippines:  o Women in Travel Philippines (WTP) 
o International Civil Aviation Organization o Network of Independent Travel Agencies
(ICAO)  (NITAS) 
o International Air Transport Association (IATA)  o Guides Incorporated Philippines (GIP) 
 
o Movement of Incentive Travel Executives
Regional tourism organization 
(MITE). 
-Organization for Economic Cooperation and Development
 
(OECD) 
Difference between Travel Agency and Tour Operators 
-Pacific Asia Travel Association (PATA) 
 
- Asia Pacific Economic Cooperation (APEC) 
TRAVEL AGENTS 
 
-Retailer. Transact business directly with the travelers 
Tourism organization in the Philippines 
-Act as counselors/advisers to the traveler and are agents or
 Philippines Travel Agencies Association the supplier 
(PTAA)  -Revenues are fixed and predetermined by the suppliers/
 The Hotel and Restaurant Association of the vendors. 
Philippines (HRAP)  -Charge fee for documentation an ancillary service 
 Tourism Educators of Schools, Colleges and  
Universities (TESCU)  TOUR OPERATORS 
 Council of Hotel and Restaurant Educators of the -Wholesalers. Deals primarily with the retailers (travel
Philippines (COHREP)  agencies) 
 The Association of Administrator in Hospitality, -Act as middlemen to supplier/vendors 
Hotel and Restaurant Management Educational -Have variable but limited revenues income and profit
institutions (AARMEI)   margins 
  -Sell optional products and services and make us of
SECTORAL ORGANIZATION are associated with a deposits 
particular sector of the tourism industry such as transport,  
accommodation, attractions, courier services or recreational Travel and Tour Business 
pursuits of Tour Operators.  Management 
   Travel and Tourism Industry 
Hotel 
Characteristics of a service products 
 International Hotel and Restaurant Association  o Intangibility - services cannot be seen, touched,
 American hotel and lodging association  smell, taste or stored on a shelf prior to
 Cambodia hotel association   purchased. 
o Inseparability - The production and
Travel agencies  consumption of services are inseparable. The
 World association of travel agencies  consumer has a direct experience of the
 Philippine travel agencies association  production of service. 
 International airline travel agency network  o Perish ability- Services are instantly perishable 
   
Transportation  Characteristics of a service products 
 -Hotel Association of New York  o Heterogeneity - Services are not identical it
 -International Air Transport Association  varies based on the personality and demand of a
 -European Region Airlines Association  customer. 
 -Cruise Lines International Association  o Ownership - When a customer buys a service
product, he or she does not receive the ownership
Tour operators  of anything tangible. Service buyers are buying
 -European Tour Operators Association  for the use of this facility only. 
 
 -international Association of Antarctica Tour
Important factors in Travel & Tours strategic
Operators 
planning: 
 -Cebu Association of Tour Operators 
 High Cost - Travel and tourism products
represent high-cost purchase for consumers.
Taking a holiday, buying airline tickets and why are you losing existing customers, what are the
staying at a hotel are expensive and it represents common complaints from customers) 
as a highest single item expenditure for a b. Customers Analysis - analysis of customers
consumer in a given year.  trends, needs/wants and behavior. (What are the 3
 Seasonality - has for the price and quantity of important trends, how the industry is changing, how
tourism products supplied between seasons. A many market segments do you serve and where is the
management can respond to these seasonality greatest growth potential?) 
problems by developing or acquiring counter c. Competitor Analysis - Analysis of competitors
seasonal business  current position, capabilities. strategy and actions.
  (Top 3 competitors, what are their strengths and
Situational Analysis  weakness, how do you compare the price, service and
-It is a method manager use to analyze both the internal and quality) 
external environments of an organization in order to 3. SWOT Analysis is a strategic planning method
understand the firm's own capabilities, customers and used to evaluate the Strengths, Weaknesses,
business environment.  Opportunities, and Threats in a business. 
-"The systematic collection and study of past and present 4. Porters Five Forces Analysis - A good tool tor
data to identify the performance of the business and the reviewing the 5 forces around the organization
choice of appropriate strategies” which determine the competitive strength
and attractiveness of the market  
Two main stages in Situational Analysis: 
1. The Examination of an organization's internal REVENUE AND COST CONSIDERATION
environment 
2. The Examination of the organization's external REVENUES - it is the total amount of money received
environment  (gross sales or income) from carrying out the business
operations such as sales.
Macro-environment - It contains range of influences that o Total Sales - total amount sold to all pax
affect not only an organization in an industry, but the whole o Total Revenue - total amount of set mark-up
industry. 
PROFIT - is the amount of money left after deducting all
Factors that affect the Macro-environment  the expenses from the revenue (net profit/income).
1. Political 
2. Economic  NET PROFIT or NET LOSS - it is the difference
3. Socio-Cultural  between the gross profit or loss and the total indirect
4. Technological  income/expenses of a business.
5. Environmental 
6. Legal  If the difference is a positive value, it's Net Profit, and if the
difference is negative, then it's Net Loss for a business.
Micro-environment - It comprises the industry in which
the  EXPENSES - is a type of expenditure that flows through
organization competes (Ex. competitors, suppliers, the income statement and is deducted from revenue to
agencies, etc) arrive at net income.
 
REPUBLIC ACT 9593 The Republic of the Philippine as FIXED COST - refers to the cost of a business expense
well as the Congress of the Philippine implement the that doesn't change even with an increase or decrease in the
republic act no. 9593, also known as the " the tourism act number of goods and services produced or sold. (Salaries
of 2009" declaring a national policy for tourism as an and Wages (include benefits), Rent, Insurance Premiums,
engine of investment, employment, growth and national Interest Payments, Professional Fees, Municipal Fees and
development, and strengthening the department of tourism Licenses, Depreciation of Capital Equipment)
as a whole. The act encourages activities and programs
which promote tourism awareness and also improve our VARIABLE COST - is a corporate expense that changes
infrastructure to attract more tourist  in proportion to how much a company produces or sells.
  (Advertising and Promotions, Education and Training,
The situation analysis consists of several methods:  Travel Expense, Representation and Entertainment, Office
1. PESTEL Analysis (more recently named Supplies, Miscellaneous Fees)
PESTLE) is a framework or tool used 
by marketers to analyze and monitor the macro- TOTAL SALES = Tour Package Selling Price x No. of
environmental. Pax Sold
2. 3Cs Analysis a tool used for internal and external
analysis to identify opportunities and risk. TOTAL REVENUE = Total Sales x Set Mark-up (in
a. Company Analysis - Assessment of capabilities decimal form)
of organization and its current marketing position.
(What is your uniqueness? What is your weakness,
TOTAL VARIABLE COST - Add all the cost/amount of Board of Directors. 
variable costs  
*list down in alphabetical order  
Documentary requirements for new application  
TOTAL FIXED COST = Add all the cost/amount of fixes -Valid mayor’s Permit and/or Business 
costs License from the Local Government Unit 
*list down in alphabetical order -If Single Proprietorship, valid DTI Business Name
Certificate 
TOTAL COST = Total Variable Cost + Total Fixed Cost - If Corporation/Partnership, SEC Registration Certificate
and Articles of Incorporation and its By Laws 
NET PROFIT (NET LOSS) = Total Revenue - Total Cost -Proof of working capital of 
  P500.000.00. 
Financial Management & Cost Control   For Corporation/Partnership, 
Objective of Financial Management  P500,000.00 Paid-up/partners capital; 
o To ensure regular and adequate supply of funds  For single proprietorship, original copy bank
to the concern.  certification 
o To ensure adequate returns to the shareholders -For General Manager, documents to prove a minimum of
which will depend upon the earning capacity, market three (3) years managerial experience in travel and tour
price of the share, expectations of the shareholders.  agency operations or proof of passing the Travel and Tour
o To ensure optimum funds utilization. Once the Agency Management Course or its equivalent. 
funds are procured, they should be utilize in maximum  
possible way at least cost   -Notarized List of Names of all Officials and employees
  (with office designation and 
"Refers to planning, organizing, directing and controlling Nationality)  
the financial activities such as procurement and utilization  
of funds of the enterprise."  Office requirements 
  -Located in a commercial area and/or building 
Legal and Commercial Aspects for Travel Agency  -Easily identifiable and used exclusively for 
SET-UP OF A TRAVEL AGENCY  Travel & Tour business operation 
  -Adequately furnished for the conduct of its business 
1. Identify the type of business establishment  -Office floor area shall be a minimum of 18 square meters 
-Sole or Single  Shall have a minimum of 3 employees: 
-Proprietorship   General Manager 
-Partnership   Reservation Officer 
-Corporation 
2. Secure the documentation needed according to your  Tour/Product Development Officer 
type of business.  -All offices shall be ventilated maintaining a temperature
-Sole or Single  bet. 20-25 degrees year round 
-Proprietorship   
-Partnership  IATA Accreditation 
-Corporation  -IATA supports airline activity and helps formulate
3.Get accreditation  industry policy and standards. 
-Department of Tourism (DOT)  -IATA accreditation simplifies the business relationship
-International Air Transport Association (IATA)  between travel agents and airlines. 
Travel Agency Legal Aspect and   
Accreditation  Benefits 
-DOT accreditation  -Access to IATA airline members with a single 
-IATA accreditation  Sales Agency Agreement which authorizes the sale of
  international and/or domestic tickets. 
DOT accreditation- A certificate issued to document that -Access to IATA's Billing and Settlement Plan (BSP), an
an establishment has complied with the department's efficient interface for invoicing and payment between the
minimum standards of its operations to ensure the comfort agent, airlines and transport providers 
and convenience of its client. Valid for 2 years  -Unique identification throughout the global travel industry
with the "IATA Numeric Code" (283) 
Who may apply for accreditation?  -Use of the "IATA Accredited Agent" logo providing
-Resident Filipino citizen registered as a single or sole visibility and credibility on premises and website. 
proprietorship.  -Standardized procedures to ensure fair dealings with the
 -Partnership organized under Phil. Laws, 60% of capital airlines. 
owned by Filipino citizen.   
 -Corporations organized under Phil. Laws, 60% of shares Terminologies of the Industry 
of stock owned by Filipino citizen & 60% Filipino citizens Industry Terminologies 
as   
Ad HOC tour package  A fee collected by a supplier for failure of a client to use a
A tour put together according to the specification of a reserved space, without having cancelled the reservation
client  within the allowed cancellation period. 
   
Adjoining rooms  Check-in 
two or more continuous rooms  Formalities attendant to the arrival of a guest at the place of
  lodging, including the filling out the registration forms 
Airport representative   
An employee of a travel agency, tour operator or Check-in time  
accommodation establishments who assist arriving quest.  Guest may occupy the room based on the established
  check-in time. Normally at 1400H 
American breakfast   
A morning meal consisting of fresh fruits or juice cereals, Checked- in baggage  
coffee or tea, eggs with bacon, ham or sausages toast and Accompanied baggage turned over by the passenger to 
marmalade  the carrier. 
   
American plan  Check-out 
A meal plan basis which includes three (3) meals a day;  Departure of a guest upon completion of stay, including
also Known as full board or full pension  settlement of personal accounts. 
   
Arrival transfer  Check-out time  
A trip from the destination s gateway to a place lodging.  A specified time at which the hotel guest must vacate the
  room, normally at 1200H. 
Availability   
Space or services read for sale. reservation or commitment Commercial rate  
to a customer. at the time of inquiry or need  A special price tor a regular guest of a hotel 
   
Baggage allowance   Complimentary
The volume and weight of luggage that may be carried on A service or product provided free of charge 
board by a traveller without an additional charge   
  Complimentary room 
Baggage tag  Non-revenue rooms offered by the hotel in a ratio to the
An Identifying tag strapped to the passenger’s luggage  total number or rooms occupied, usually one
issued by the carrier for identification purposes.  complimentary bed for ever fifteen (15) beds 
   
Blocked off   Conducted tour 
A specific number of rooms or seats sets aside at a  A pre-arranged tour accompanied by a tour escort
Specific rate, for a specific date  throughout. Also known as "Escorted Tour" 
   
Booking  Confidential tariff 
A reservation for a seat. room. tour or service  A list of wholesale rates distributed by confidence to 
  travel agents and wholesaler by tour operators. 
Booking order   
A document prepared by the reservations staff of travel  Confirmed reservations 
Agencies or tour operators. Requesting space or  An advise that a reservation has been accepted and will 
services from the suppliers. Also known as "Reservation Honored 
Request"   
  Connecting rooms 
Bump off  Two or more rooms with private connecting doors. 
To off load passengers from a flight or trip  permitting access between the rooms. 
   
Business class  Continental breakfast 
Air travel by a class superior to economy but lower than A morning meal generally consisting of coffee or tea, rolls
first class service  and croissant. butter and marmalade. 
   
Business traveller  Double-up 
A person who travels primarily for business purposes  An assignment of two unrelated persons to share one twin 
   
Cancellation  Day rate 
The release of the confirmed reservation  A special rate tor non-overnight use of a hotel room 
   
Cancellation charge  Demi-pension 
A meal plan basis which includes breakfast and either lunch Reservations secured by the guest agreement to pay for the
or dinner. Also termed as "Half Broad or "Modified  room whether it is used or not
American Plan 
  GIT
Denied boarding  An acronym for Group Inclusive Tour that indicates there
When passenger is not allowed to board a flight due to are more than ten or fifteen travelers in a pre paid tour
insufficient or improper travel documents.  package of specific components and value
 
Departure transfer  Guided tour
A trip from a place of lodging to a destination's departure A sightseeing tour conducted by a tour guide
point. 
  Twin rate
Deposited reservation  The per person rate of a twin or double room to be
A reservation for a which payment has been received  occupied by two persons
and obliges the supplier to hold the reservations. 
 
Double room  Hand carry luggage
A room with matrimonial bed for two persons  Personal effect carried by the passenger inside the aircraft
  cabin

Double room rate  High/low season


Full price of a room with matrimonial bed for two  The time of the year at any given destination, when traffic
Persons  and rates are the highest/lowest
 
Early check-in   High/low season rate
The arrival of quest before the standard 1400H check-in A maximum/minimum room rate charged when demand is
time  heaviest/lightest
 
Economy fare  Hotel contracted rate
The fare for economy class service  A negotiated net rate agreed upon by a tour operator and a
  hotel, where- in the latter commits to supply rooms of a
European plan  specific category at a flat rate
Hotel accommodation with no meals included 
  Hotel package
Excess baggage  Combination of board, lodging, transfers and use of hotel
The amount of luggage by weight. volume or number of facilities offered as a package by accommodating
pieces that exceeds the baggage allowance set by carrier  establishments

Extra bed Incidental charges


An additional bed placed in a room to accommodate an Charges for personal services rendered that are not included
additional guest in the arrangement made by the tour operator or travel
agent
FIT
An acronym for FREE INDEPENDENT TRAVELLER Inclusive tour
that indicates that the travelers is not part of a tour group A tour package classification consisting of transportation
to/from a destination, transfers, sightseeing tours,
Familiarization Tour accommodations and specified meals
A complimentary or reduced rate tour for media people or
travel agents designed to acquaint them with specific Itinerary
destination A schedule of sites and activities arranged in chronological
order
Flight
A scheduled air service identified by a flight number Land arrangements
A tour package classification that comprises transfers.
Ground arrangements Sightseeing tours, accommodation and specified meals in a
A tour package classification that compromises only destination
transfers and sightseeing tours at a destination
No show
Group rate A reservation that is neither cancelled or fulfilled
A special, discounted hotel room rate offered to a group
Net rate
Guaranteed reservations A wholesale rate to be market up for eventual resale
No show charge
A fee collected by a supplier for a reservation that is neither
cancelled or fulfilled. It may be considered a last-minute
cancellation

One-way fare
The fare for one point to another with no provision for the
return trip

Optional tour
A tour that is not part of the basic package

Overbooking
The practice of committing more room or seats than are
available; a hedge against “no show”

Published fare/ Rack rate


A rate with built in commission, no discount in anyway,
quoted by the suppliers

Roundtrip fare
This fare from the origin point to another and back to the
origin point by the same route

Triple room
A room that can accommodate three adult persons
regardless of its configuration (eg. Twin room plus extra
bed; double room plus extra bed)

Twin room
A room for two persons, in two separate beds

Upgrade
The full price of a room for two persons each occupying
one bed

Waitlist
A supplier list of customers who seek space on a date that
is sold out

Walk-in
A client who comes to a supplier without prior reservations
or arrangement

 
 
 
 
 

 
 
 

You might also like