1. Travel Agency
Transcript of 1. Travel Agency
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Travel Agency atorTaufik Abdullah, A.Md. Par., S.E.
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DefinitionThe United conference on international travel and tourism (Rome,1963)
TourismThe sum of phenomena and relationships arisingfrom the travel and stay of non-resident to and invarious destinations, insofar as they do not lead to
permanent residence and are not connected withany earning activity.
TouristTemporary visitors staying at least 24 hours in the
country visited. Excursionist
Temporary visitors staying less than 24 hours in thecountry visited (including travelers on cruises).
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CONDITIONS FOR THE EXISTENCE OF TOURISM
PEOPLEThere must be people willing to travel and wanting to visit places.Various reasons : Scenery, climate, familiar interests, history.TIME
These people must have spare time (weekend, holidays or vacation)enabling them to leave their residence.
MONEYThey must also have money to spend on pleasure and recreation.TRANSPORTATION
People may reach the place of their choice, there must be a way toget tourist object/destination.
LEGISLATIONTo develop the flow of tourists between different countries,
administrative restrictions must be held to a minimum. too muchred tape at the borders tends to discourage would be tourists.ACCOMMODATION POSSIBILITIES
Once on the spot, the tourist will demand that his/her basic needsbe satisfied : Foodand shelter.
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IMPORTANT UNDERLYING FORCES WHICH HAVE A SIGNIFICANT IMPACTON TOURISM
Early retirement
The growth of government security programs
A reduction in values placed on material ownership
Decline in physical labor ---- attention to health program such as camping, cycling, hiking
and the like A shorter work week
Greater affluence ---- increasing of income/purchasing power
Greater mobility of the population
Growth of employee benefits
Smaller families
Improved transportation and relative decrease in cost
Increase in longevity ---- live longer with greater vigor
Growth of multi-national companies
Rapid communications
Higher education
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THE ROLE OF TRAVEL AGENCY ANDTHE LIKE IN TOURISTS FLOW
Generating countries Holland Germany France Canada USA Japan, etc.
Receiving countries Switzerland Malaysia Indonesia USA Egypt, etc.
TOURISTS
TRAVELDOCUMENT
RESTAURANT
HOTELS AND OTHERACCOMMODATIONS
TOURIST OBJECT
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THE SOCIAL EVOLUTION OF TOURISMWAS CHARACTERIZED BY
Higher salaries
Longer vacations
Holidays and free time almosttotally paid by the employer
A leveling out of social classes
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Travel Agent Pertama di Dunia
Thomas Cook dianggap sebagai orang pertama menemukanprofesi travel agent.
Dilahirkan tanggal 22 November 1818. di Derby Shire (Inggris). Tanggal 5 Juli 1841, Tour yang paling bersejarah yang pernah
diselenggarakannya yaitu A Round Trip Excursion antara kotaLeicester dan Lougborough dengan biaya 1 shilling per orang.
Dengan Pengikut sebanyak kurang lebih 500 orang Tahun 1851, ia menyelenggarakan tour ke London denganpengikut sebanyak 150.000 orang untuk menyaksikan WorldExposition
Tahun 1855 , ia membawa orang-orang Inggris ke Eropa untukmenyaksikan Paris Exhibition di Perancis (Cooks Tour ofEurope)
Kantor Cooks Travel Agent dibuka tahun 1868 di London John Mason Cook, anak Thomas Cook, mulai membantu pada
tahun 1865 dalam menyelenggarakan tour ke Eropa danAmerika
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Usaha Perjalanan
Keputusan Dirjen Pariwisata Kep.16/U/II/1988
Usaha Perjalanan adalah usaha yang bersifatkomersial yang mengatur, menyediakan, dan
menyelenggarakan pelayanan bagi seseorang atausekelompok orang untuk melakukan perjalanandengan tujuan utama untuk berwisata
Peraturan Pemerintah RI No. 67 Tahun 1996 tentangPenyelenggaraan Kepariwisataan
menyatakan bahwa usaha perjalanan tersebut terdiriatas dua jenis usaha pariwisata yaitu:
Biro Perjalanan Wisata (BPW)
Agen Perjalanan Wisata (APW)
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Travel agency
Travel agency is the enterprise who brings togetherthe suppliers of travel services with the buyers, andwho offers buyers sound travel counseling on
destinations, routing, transportation,accommodations, sightseeing, and other elements oftravel.
Surat Keputusan Direktur Jenderal Pariwisata No.
Kep. 16/U/II/88 Tgl 25 Februari 1988Agen perjalanan adalah badan usaha yangmenyelenggarakan usaha perjalanan yang bertindaksebagai perantara di dalam menjual dan atau
mengurus jasa untuk melakukan perjalanan.
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Tour operator
Dennis L. Foster (2000) mengungkapkan pengertianbiro Perjalanan perjalanan wisata sebagai sebuahperusahaan perjalanan yang menjual rancanganperjalan secara langsung kepada masyarakat danmenjual jasa angkutan (udara, darat dan laut),akomodasi , wisata pelayaran , paket wisata, danproduk-produk lain yang berhubungan denganperjalanan tersebut.
Tour operator (Wholesaler) adalah suatu perusahaanyang usaha kegiatannya merencanakan dan
menyelenggarakan perjalanan orang-orang untuktujuan pariwisata (tours) atas inisiatif dan resikosendiri dengan tujuan mengambil keuntungan daripenyelenggaraan perjalanan tersebut.
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The function of travel agency on the travel industry
activities
SECONDARY SUPPLIERSMusicians, Chauffeurs, Caterers, etc.
MIDDLEMEN Travel agency Wholesalers
Retail tour operator
Traveler
PRIMARY SUPPLIERS Airline Cruise ship Bus line
Hotels Restaurant Resorts, etc.
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The functional activities of a travel agency
1. Travel information and itineraries Travel information is to be required by the people
who wish to travel and this information relates :
Travel itineraries is given by travel agency as anadvice to people on the type of travel itinerarieswhich they should select for their holiday orbusiness travel. People seek travel agency for travel
itineraries due to its capability as a travel expertand think about efficiency
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2. Ticketing Transport ticketing
Airline travel (schedule, charter/affinity charter)
Ship line travel (passenger, cruise) Rail transport (domestic, international)
Bus (coach) transport
Transfer service (intercity transfer, terminal transfer)
Touring service
Other ticketing Sport events
Cultural performance
Sight seeing, excursion, package tour (product of other travelagencies)
The functional activities of a travel agency
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3. Accommodation Hotel (other types of accommodation)
reservation
Restaurant booking
Theater booking
Special events reservation
The functional activities of a travel agency
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4. Tours (leisure) Sight-seeing and excursion
City sight-seeing tour Country side tour
Combination between city sight-seeing and countryside
Intercity sight-seeing transfer
Inclusive tour charter (IT/ITC)
An aircraft charter that carries an inclusive tour. The tourto be provided in connection with charter transport.
The functional activities of a travel agency
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4. Tours (leisure) Package tour
Domestic tour
Outbound tour
Inbound tour
Escorted tour
Unescorted tour
Group inclusive tour (GIT) Foreign inclusive tour (FIT)
Special interest tour
Out off the beaten track tour
Incentive tour
The functional activities of a travel agency
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5. Related travel services Provide transport on transfer in and out Terminal to terminal transfer Terminal to hotel V.V. Intercity transfer :
Hotel to hotel Hotel to terminal V.V. Terminal to terminal
Rent a car service (incl. Rent-a-car packages) Drive-yourself (U-drive service) Chauffeur driven service
The functional activities of a travel agency
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5. Related travel services Money changerA travel agent should be appointed as an
authorized agent from the travelers checkscompany, and earned agency-commission fromit.
A travel agent becomes an agent of a moneychangers company, and get the profit from thedifferences of the conversation rate.
The functional activities of a travel agency
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5. Related travel services Insurance
The loss of baggage and personal possession The damage and theft of baggage and personal
possession
The illness or injury
The death Trip cancellation (an excellent way to safeguard
clients from cancellation made by transportationcompanies, accommodation, etc.)
The functional activities of a travel agency
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5. Related travel services Cargo handling
The overweight of passengers baggage
Accompanied baggage
Unaccompanied baggage
The special delivery of souvenir cargo
The functional activities of a travel agency
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The functional activities of a travel agency
5. Related travel services Travel document handling
Passport and exit permit requirementsVisa/entry permit/tourist card permitting a
traveler to enter, such as :
Visa application service
Visa extension service
Health certificate and quarantine service
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The functional activities of a travel agency
5. Related travel services Convention services The travel needs of convention participants :
Meeting and transfer in & out services Providing transport to the destination
Providing tour/sight-seeing : Pre conference tour
Official conference tour
Post conference tour The overseas convention arrangements :
Convention registration
Travel services related to the need of participants in thedestination
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The functional activities of a travel agency
5. Related travel services Guiding and tour conducting
Travel agency can provide specializedpersonnel to be used for making a tour, thatis :
- tour guide- tour conductor.
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The advantages of being travel agent
Involves much traveling all over the world
Given VIP treatment wherever you go (large
discounts on travel components costs) Enjoy the interest in geography, history,
literature, art, culture, etc.
Has a chance to brush up the study of
foreign languages Collects bonus as addition in salary
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The disadvantages of being travel agent
Has a lot of hard works, such as : Natty-gritty
Detailed work to do
Able to travel much of the time
Complex office works
The must exacting business : An error might came the reservation not in order
A mistake of only a few minutes might came to miss a connection
Requires careful checking and double checking fortaking care of accurately and properly
Has to wit stand adverse situation caused bycircumstances
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Kegiatan Biro Perjalanan UmumKeputusan Menteri Perhubungan No. PM 9/PW 104/Phb-77
Menyusun dan menjual paket wisata luar negeri kepada umumatau atas permintaan
Menyelenggarakan dan menjual pelayanan wisata (cruise)
Menyusun dan menjual paket wisata dalam negeri kepadaumum atau atas permintaan
Menyelenggarakan pemandu wisata ( guiding and tourconducting
Menyediakan fasilitas sewa mobil untuk wisatawan
Menjual karcis (ticket) sarana angkutan dan lain-lain Mengadakan pemnesanan sarana wisata
Mengurus dokumen-dokumen perjalanan sesuai denganperaturan-peraturan yang berlaku.
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Kegiatan Agen PerjalananKeputusan Menteri Perhubungan No. PM 9/PW 104/Phb-77
Menjual karcis (ticket) sarana angkutan danlain-lain
Mengadakan pemnesanan sarana wisata
Mengurus dokumen-dokumen perjalanansesuai dengan peraturan-peraturan yang
berlaku.
CONTOH BAGAN STRUKTUR ORGANISASI BIRO PERJALANAN UMUM
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CONTOH BAGAN STRUKTUR ORGANISASI BIRO PERJALANAN UMUM
DEWAN KOMISARIS
UR. WIS. UMUM KE DLM NEGERI
UR. WIS. KHUSUS KE DLM NEGERI
UR. WIS. INSENTIF KE DLM NEGERI
SEKSI WISATA KE DLM NEGERI
UR. WIS. UMUM KE LUAR NEGERI
UR. WIS. KHUSUS KE LUAR NEGERI
UR. WIS. INSENTIF KE LUAR NEGERI
SEKSI WISATA KE LUAR NEGERI
UR. WIS. UMUM DI DLM NEGERI
UR. WIS. KHUSUS DI DALAM NEGERI
UR. WIS. INSENTIF DI DALAM NEGERI
SEKSI WISATA DI DLM NEGERI
UR. PELAYARAN WIS. KE DLM NEGERI
URUSAN WISATA TIRTA
SEKSI PELAYARAN WISATA
BAGIAN WISATA
UR. TICKET ANGKUTAN UDARA
UR. TICKET ANGKUTAN LAUT
UR. TICKET ANGKUTAN DARAT
UR. TICKET LAINNYA
SEKSI TICKET
URUSAN HOTEL
URUSAN AKOMODASI LAINNYA
SEKSI AKOMODASI
URUSAN PASPOR DAN EXIT PERMIT
URUSAN VISA DAN KARANTINA
UR. KEWARGANEG. & PERIZ. KERJA
SEKSI DOK. PERJA & PERIZ. KEIMIG.
UR. PAKET WISATA UMUM
UR. PAKET WISATA KHUSUS
SEKSI PAKET
BAGIAN PERJALANAN
UR. LITBANG PRODUK WISATA
URA. LITBANG PASARAN WISATA
SEKSI LITBANG
URUSAN PERENCANAAN
URUSAN PRODUKSI
SEKSI PERENCANAAN & PRODUKSI
URUSAN PROMOSI DAN IKLAN
URUSAN PENJUALAN
SEKSI PROMOSI DAN PENJUALAN
BAGIAN PEMASARAN
URUSAN ANGGARAN
URUSAN KASIR
SEKSI KEUANGAN
URUSAN AKUNTANSI UMUM
UR. ANALISA LAPORAN KEUANGAN
SEKSI AKUNTANSI
URUSAN PERSONALIA
URUSAN RUMAH TANGGA
SEKSI UMUM & PERSONALIA
BAG.ADM. & KEUANGAN
PIMPINAN
RAPAT UMUM PEMEGANG SAHAM
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BAGAN STRUKTUR ORGANISASI AGEN
PERJALANAN YANG MEMILIKI CABANG
DEWAN KOMISARIS
BAGIAN PERJALANAN BAGIAN WISATA
BAGIAN PEMASARAN BAGIAN ADM. DAN KEUANGAN
CABANG
PIMPINAN
RAPAT UMUM PEMEGANG SAHAM
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Potential profits of a travel agency
Income Commission or mark-up on tickets and tours
Other commissions such as from hotelreservations, travel insurance, car rental, etc.
Investment profits, such as bank interest,revaluating of fixed assets, etc.
Expenditure Personnel expenses
Sales and promotion expenses
Administrative expenses
PROFIT = INCOME - EXPENDITURE
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Mix ratio
Mix ratio is the ratio percentage of total income (gross profit
or total commission & add-on profit) to total gross sales.
Total income (gross profit)
Mix ratio = -------------------------------- X 100 %Total gross sales
Incidentally, 8 % to 8.5 % mix is about average for the industry,
though some agencies may run lower if they concentrate onheavy volume of commercial business, while others mayoperate at 10 % or better if they enjoy high revenue sales. Itfollows that the larger the mix the greater the income.
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Competition on travel agency business
Other travel agencies
The competition is a healthy competition if all the agencies
operate on an ethical basis.
Suppliers
Suppliers like airlines, steamship, rail and coach companies,
tour operators, sight-seeing firms, hotels, car rental firmssolicit and accept business directly from the public.
Organizers and tour directors
Many travel agents oppose local group organizers with the
result that the organizer goes directly to a supplier and the
revenue is lost to the agency.
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Competition on travel agency business
Non-profit organizations
These competition may come from :
A club
Labor union School organizer
Social organizer, etc.
Other competitionThere are many other non-industry organizationsand people competing with travel agents. Such asemployees annual leave handled by employer.
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Risk of failure on Travel Agency business
Under capitalization
Failure to thoroughly investigate an agency prior topurchasing
Deficiency in knowledge of travel agency operation Deficiency in knowledge of travel industry in general
Unrealistic evaluation of market potential
Inefficient manager and/or staff
Inexperienced manager and/or staff Too much competition or poor location
Poor business climate
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Risk of failure on Travel Agency business
Lack of professionalism
Failure to have an agency evaluated and investigated by anexpert prior to purchasing
Failure to listen to, or to heed the advice of the manager. Absentee ownership (loss of control)
Inadequate record keeping
Excessive extension of credit, thereby seriously restricting
the cash flow
An egotistical attitude
Inability of the owner to properly handle, or motivate staff
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The benefits of consider retaining a consultant
Will help eliminate costly errors
Will reduce business risk
Can advice on a variety of important functions Location
Lease
Layout
Accounting
Filing and efficiency system
Advertising and promotional campaigns
Budgeting
Developing a training program, etc.
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The benefits of consider retaining a consultant
Can stop the attitude of Ill do it my way
The slightest evidence of a problem can besolved at the time of arising, before it gets outof control
His/her practical experience which is gainedthrough exposure to a variety of situations andproblems.
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Start a new travel agency or buy an existing
agency
To start a new travel agency Has to find and decision a good location
Less of capital
Has to secure suppliers appointment Has to hire and train personnel
To buy an existing travel agency Should has a good existing
By a very thorough investigation
Already operating
Has a functioning staff
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Considerations on buying an agency
Is there an agency for sale within the price rangein the general area desired to locate ?
Is it for sale at a reasonable and realistic price ?
Can it arrange a moderate down payment withattractive payout time ?
Does it have a consistent record of steady sales,
growth, and earnings ? Does it measure up to the criteria standardized
for a good existing travel agency ?
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The advantages of buying a travel agency
Already is at an approved location, staff, andprinciples
Immediate earnings commission
(if already has clients)
Buyer can get benefit from the owner : Expertise of the business
The community Possible to buy an agency at a low or bargain
price.
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The disadvantages of buying a travel agency
Pay too much, because the inaccurateevaluation of the worth of agency
The agency may be in default
If the owner leaves immediately after theclosing of the sale much of the business maydiminish
The location may be poor
The owner may have had a bad reputation
May be loss of important commercial account,departure of key staff.
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Guidance on pricing a travel agency
To effort arriving at an equitable or realistic price
Should be aware of that evaluating a servicebusiness is always more complicated than pricing a
manufacturer or retailer (service business isintangible and unknown, manufacturer has arealistic assets and inventories)
The previous history and prevailing condition
records should be utilized as an adding orsubtracting consideration
Consider factors that could influenceon pricing.
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Factors that should be taken into
consideration on pricing a travel agency
Asset value :the cost of the asset new, the depreciated value,the replacement, or fair market value.
The potential :to discern the potential which is right to beexploited.
The good will (consists of intangible factors) :good reputation, convenient location, steady and repeat clientele,competent and efficient staff, attractive offices, high mix, and otherfactors related
Eagerness and desire The business climate
The evaluating factors
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The factors on evaluating the price of a travel agency
Positive factors Substantial vacation business
Long established
Consistently good sales
High mix
Good commercial volume
Favorable lease
Good location
Attractive dcor
Quality of furniture and equipment Stable management and staff
All conference appointments
Good cash flow
Owner will remain during transition
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The factors on evaluating the price of a travel agency
Negative or minus factors High turnover staff Too much commissioned sales people
An excess of : charter business, studentbusiness, ethnic business, fraternal business,group business.
Poor cash flow
Slow paying commercial accounts High rent Recently established Owner will depart after closing
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Establishing a new travel agency
1. Factors to be considered in choosinglocation
Offers the best potential for growth and profit
Type of business
Location of travel agency competition and supplier Cater to the carriage trade in a large community
Type of sales service
Plenty of free parking
A ground floor location or an adequate elevator services (for a
multi storied building) Good traffic pattern
Easily accessible to the clients
Exposed to as many people
The history of the site
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2. Physical lay out
decor Has a good portion ratio between sales activities area and administrative
activities area (depends on the type of its business activities)
The reception area is a polite receptionist who may double as the telephoneoperator
General sales counselors should be located near the entrance Separation based on departmentalization activities should be existed
clearly
Has a folder (brochure) rack display in the reception area
Take the advantages on window display possibilities
Has a uniform office furniture such as desks, chairs and filing cabinets
The flow of the clients should be act in accordance with the officeprocedure
Besides the lay out of counter sales should be considered too the placementof the manager office, accounting office, tour/travel administrativeoperation office, a supply and mailing office, storage and file space.
Establishing a new travel agency
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The decor of travel agency office should possessed an
impression of the client with consideration as hereunder
The decor is to be set in accordance of travelservices
Has a colorful and glamour impression
To perform an attractive, exciting andefficient-looking office
Utilizing brochure, poster, air models, etc. as
a decor aids material Supplemented by colorful maps (tourist or
airlines map)
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Furniture, fixtures, and equipment
Bookcases
Chairs
Copy machine
Desks
Dictating equipment
Filing cabinets
Lamps
Literature racks
Safes and vaults
Shelving
Storage cabinets
Tables
Ticket imprinter (order fromATC)
Typewriters
Waste paper basket
Computer sets with link system
Telephone and facsimile
Miscellaneous, accessories, etc
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Estimated of start-up cost
Fixtures and equipment
Advertising and other openingpromotional expenses
Conference, filing and applicationfees
Decorating and remodeling
Incorporation and otherorganizational expenses
Insurance, bond, etc.
Legal and other professional fees
Printing (letterheads, envelopes,etc.)
Travel agency supplies and forms
Accounting and other office supplies
Subscription to tariffs, manuals, tradejournals, etc.
Telephone, facsimile, and internetinstallation
Outside signs
Other expenses
Sub total
Add 10 % contingency
Total estimated start-up expenses
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Annual operating and expense budget
Salary of owner
Salary of manager
All other salaries and wages
Advertising and promotions
Conference fees Depreciation
Dues and subscription
Entertainment
Insurance premium, bond
Legal and accounting
Miscellaneous expenses
Postage
Rent and utilities
Stationery and supplies
Taxes
Telephone and telegraph
Travel expenses
Other
Sub total
Ten percent contingency
Total annual operating expenses
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Check list for opening a travel agency
Contact conferences for information andapplications
Order catalogs from travel agency printers
Consult with your attorney to decide form oflegal structure
Complete the worksheet in this book
Decide on a name for the agency
Locate suitable office space
Read lease carefully. Attorney to reviewbefore signing
Form the corporation
Open a bank account
Arrange for design of logo
Order all letterheads, envelops, businesscards, etc.
Set up the accounting system
Order all supplies from travel agencyprinters
Order all furniture, office machines andother equipment
Other subscriptions to tariffs, manual,and trade journals
Plan opening promotion, advertisingand mail campaign
Order installation of telephone,facsimile and internet
Hire manager to conform withconference regulations
Obtain ATC bond and take out
insurance policies as needed
Establish contact with tour operatorsand other suppliers
Carefully review and completeconference applications
File for appointments
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Setting travel agency office
Considerations Cost and benefit analysis The needs of the staff The dictates of business efficiency
Travel agency management consists of : Corporate management office
Building Personnel equipment
Operation management office Merchandising Office work : records, figures and computation, retention of
products, internal and external communication
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Travel agency form
The function of travel agency form
To register the transaction
To transfer the information To present the data for controlling
To reduce administration error
To formulate the end product
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Classification of travel agency office form
Internal form
Inter office memo
Inter office order
Sales department report, etc.
External form
Service order
Travel voucher Reservation form
Receipt
Invoice, etc.
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Utilizing form
The important reason of utilizing form The possibility for repetition
The possibility for getting uniformity
To be utilized as work instruction The possibility to be implemented for mechanic process
The advantages of utilizing form To reduce the cost
To present the information need To store the perfect and correct information and able to
give the information quickly
To become an effective control aid (internal and external)
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Consideration factors in designing form
Functional considerations The aim (objective) of the form
The information to be filled in
The complete identification The logical items in accordance with the flow of steps
The utilizing of space
The number of copy to be needed
Physical considerations Types of printing (letters, inks, duplicating)
Types of paper
Size of form
Cost of printing
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Consideration points in financing proposal
A total description of the proposed venture, including aprojection of estimated sales, income, operating expensesand net earnings.
Include as many statistics, about the area, buying power,median incomes, and any other commercial informationconcerns with travel agency business.
An estimate of your start-up expenses, including cost of
furniture, office equipment and other necessities. List of references which are familiar with the business.
Th f it l f b i
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The sources of capital for buying or
existing travel agency
Own capital
Equity capital
Venture capital Bank loans :
Short term loans
Long term loans
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TRAVEL RETAILING
The role of travel agents Did similar to that of most other retailers in that an agent does not
purchase travel for resale to the customers. Therefore the travel agentdoes not carry stock of travel products. The two implications for thebusiness of travel distribution : The cost of setting up in business is comparatively small compared to other retailing
business.
No obligation to dispose of products that has to be purchased and therefore has lessbrand loyalty towards a particular product or company than do other retailers.
To provide a convenient location for the purchase of travel. At theselocations they act as booking agents or as a source of information and
advice on travel services.
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Travel agency operation
The essence of travel agency operation on retailing business
will be expected to cope with all the activities associated with
the booking of travel, which will include :
Advising potential travelers on resorts, carriers, travel companies and travel facilitiesworldwide.
Making reservations for all travel requirements
Planning itineraries of all kinds travel needs
Accurately computing airline and other fares
Issuing travel tickets and vouchers
Corresponding by phone call and letter with travel principals and customers
Maintaining accurate files on reservations
Maintaining and displaying stocks of travel brochures
Interceding with principals in the event of customer complaints.
Th N ti d P iti i f
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The Negative and Positive view of
travel agent
The negative view of travel agent The remuneration in getting commission on sales
A questionable on providers of information (particularly in thearea of long-haul travel)
Travel agency work still has of a glamour image for youngpeople (lack of basic knowledge on travel agency business)
A questionable on the grounds of its impartiality
Displaying promotional in their shops not to play an active roleon promotion.
The positive view of travel agent Increasing the sales of principals
Agency commission able to compensate the expense in settingup sales offices and direct marketing cost.
M thl fit d l t i t l
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Monthly profit and loss account in travel agency
SalesLess cost of sales
Gross profit
Expenditure :Administration
Rent
Light and cleaning
Insurance
Postage, telephone, and facsimile
Printing and stationary
Advertising and promotion
Salaries and wages
Bed debt
Subscriptions
Bank charges/interest on loans
Total
Net profit before tax
Net profit before tax = gross profit total expenditure
The only means of improving profitability is toincrease efficiency by : Achieving higher turnover at the same cost Achieving similar turnover at reduced cost
The impact of computer on travel retailing
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The impact of computer on travel retailing
Computer operation can be in isolation or tolink with the reservation system of travel
principals. Can change the atmosphere of travel retailing.
Existing modern means of communication.
Travel agency operation will become moreefficient.
Travel agency will need to become moreknowledgeable in marketing and sales skill.
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In travel agency operation, computer
can manage the handling of :
The requires system of registering availability oftransport and accommodation at short notice.
Making immediate reservation.
Amendments and cancellations on such facilitieswith a correct manner.
Quoting complex fares and conditions of travel.
Rapidly processing documents such as tickets,invoices, vouchers and itineraries.
Providing accounting and managementinformation.
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The future of travel agencies as
retailer could be affected by :
The wide net links of using computers notonly links between agency and principals.
The automated selling by suppliers. Inability of travel agencies to meet
increasing costs.
Decisions of supplier not to use travelagencies as mediator.
Deregulation of the environment.
T t
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Tour operator
Most business calling themselves tour operators undertake a
distinct function in the tourism industry; they purchase separateelements of transport, accommodation and other services andcombine them into a package which they then sell directly or
indirectly to consumers.
Carriers
Accommodation
Services
Travel Agents
Tour Operators Customers
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Integrated services usually consists of :
Transport service (aircraft seats)
Accommodation at the destination
Transfer between hotel terminal or intercity
Excursions or sight-seeing
Car hire on the destination
Entertainment or performances services.
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Cost saving probability in order to
increase profit
Chartering of entire aircraft instead ofpurchasing a block seats on a scheduled flight.
Using time series charters, aircraft were leasedover longer periods of time rather than for adhoc journeys.
Productivity achieved through high load factors
- the number of seats on each aircraft actuallysold as a percentage of total capacity.
Maximize the utilization of the aircraft during itsperiod of charter.
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Other revenues to increase profit besides commission
The revenue as a result of the time lapse occurring betweencustomers paying for their trip and the tour operatorsobligations to settle their accounts with their principles.
The profits achieved through the sake of ancillary service, such
as : Duty free gods sold on board
The package insurance policies
The sale of optional excursions
Car hire at the destination
The revenue achieved by the imposition of cancellation charges. The profit gets through the judicious buying forward of foreign
currency at times where exchange rates are favorable.
The profit as result from direct selling instead through travelagent as mediator (avoiding payment of agency commission).
Tour pricing
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Tour pricing
Total tour components costs per person .
Add mark-up .
Selling price .
Mark-up can be in the calculation of :
To cover marketing and administrative cost
To cover the agency commission
To cover the desired profit (gross)
Or
To cover marketing and administrative cost
To cover the desired profit (gross)
On this matter, agency commission should be calculated separately.
In developing a pricing strategy for package tours, the tour operator musttake into account a number of variables which has influences on pricing,such as : types of product, special reduction, a subsidized fare, high/lowseason price, etc.
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Types of operator
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Types of operator
Mass market operators. Sell large numbers ofinclusive bay air and/or coach.
Domestic operators. Those who assemble andsell inclusive tours to a destination within thecountry in which the tourist reside. Canoperate as :
Domestic tour for domestic people Incoming tour for foreign people
Types of operator
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Specialist operators. May range from local travel agentsorganizing an ad hoc tour for thirty local passengers up tobusiness offering long-distance inclusive tours to exclusivedestination.Specialists may be subsidiaries of carries or
accommodations, existing to provide a sales outlet for theorganizations products. It is convenient to group into :
Inclusive tours to particular destination
Inclusive tours from specific generating areas
Inclusive tours which is using a specific accommodation Inclusive tours which is using specific transport
Inclusive tours offers a special interest people
Types of operator
Th t b h
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The tour brochure
The brochure becomes the principle means of :
Informing people about the product
Persuading people by purveying dreams to purchase it.
The production of the tour brochure represents amajor proportion of a tour operators marketingbudget. It is essential to see that this enormousexpenditure achieves the intended results.
The first task of a brochure is to attract the attentionof the consumer. To gain attention, operators havedeveloped a house style in which multi colors coverscombine with an eye-catching symbol and housename across the top of the brochure to obtain
maximum impact.
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The brochure at least should contain the
following information
The name of the firm responsible for the inclusive tour
The means of transport used
Full details of destination, itinerary and times of travel
The duration of each tour Full description of the location and type of accommodation
provided, including meals
Whether services or representative are available abroad
A clear indication of the price for each tour
Exact details of special arrangements Full condition of booking and cancellation
Details of any optional or compulsory insurance coverage
Details of documentation required for travel to the destinations.
The tour reservation system
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The tour reservation system
The design of the system will depend on :
The manual system of reservation
The computer system of reservation The selling system of product : Direct selling
Through retail travel agent
Through a combination of these two system.
Note : All reservation system is to get a clear,accurate and fast confirmation.
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Negotiation with principles
The airline. The negotiation was made in order toearn contract with spell out the conditions of :
The release of unsold
The cancellation The settlement
Rate or special contract fare
Ensure the available capacity.
The hotels. Hotel negotiations to be distinguishedinto :
Small and specialist tour operator with a free sale agreement
Long terms contract, for a big tour operator with a block ofroom system.
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On the negotiations process with hotel
industries, tour operator seek to get clear on :
Reservation and registration procedures
Accommodation requirements for any
representatives or couriers. Handling procedures and fees charged for port rage.
Special facilities available or need
Language spoken by hotel staff
System of settlements and the contract rate
System of payment for personal/guests account