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MODULE IN MICROPERSPECTIVE OF TOURISM AND HOSPITALITY, , Lesson, , Travel Agencies, Tour, Operators, and Tour Guides, , Introduction, This lesson introduces you to the different types of travel agencies, operations, of travel agencies, and requirements for accreditation of travel agencies. Also, the, different tour packages, types of tour operators, and differences between tour, operators and travel agent. It will boost students’ familiarity with the industry of tourism, and its functions to the economy., , Learning Outcomes, , After the completion of this lesson the you are expected to:, ▪, ▪, ▪, , identify the different travelers served by travel agents,, expound the roles of tour guides, travel agents, and tour operators; and, discuss the function of tour guides, travel agents and tour operators., , What you know?, 1. To be successful in everything, you need to possess certain qualities and, characteristics. What are the characteristics a travel operators, agents, and, tour guides must possess?, 2. What are the different requirements in opening a travel agency? What are the, different tour packages?
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MODULE IN MICROPERSPECTIVE OF TOURISM AND HOSPITALITY, , Lesson Proper, Here’s a famous saying that says “To function well in today’s world, you need, a good doctor, a good lawyer, and a good travel agent.”, A tour operator combines several products that eventually become a holiday, package. This package may be retailed to travel agencies. The tour guides escort the, visitors to the destinations they have transacted either with a tour operator or travel, agency. Tour managers transact on behalf of the tour operators to ensure that the, program is carried out according to the tour operators and travelers’ specifications., Typical tour operator services include air travel, ground transportation, lodging, (including airport shuttles), meals, and sightseeing (including tickets to attractions)., In certain circumstances, a tour operator's services are produced and offered, to the general public. When a wholesale travel agent advertises them under the, agency's name through retail agencies or airlines, they are structured in accordance, with their specifications., Customers' needs are met by the services of travel agents. They act as gobetweens for travelers. It's everything taken care of for you, from the tour operators to, the hotels, by them. Both their suppliers (hotels and tour operators) and their clients, (principals and consumers) pay commissions to these companies., , Around 570 individuals signed up to follow Thomas Cook on a journey from, Leicester to Loughborough in 1841, the beginning of the travel agency idea., Accommodations and meals were included in the package. It is the primary job of a, travel agency to supply consumers with retail travel services. Additional income comes, from the commission they receive from several tourist industries, including airlines,, hotels, and tour operators., Types of Travel Agencies, , 1. Independent. It is common for independent agencies to operate in close, proximity to each other. Most of their revenue comes from returning customers, in a certain market segment that they have identified as a target demographic., 2. Miniples. It is independent, has many locations, and has a head office in the, local region. The various branches may trade under several names.
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MODULE IN MICROPERSPECTIVE OF TOURISM AND HOSPITALITY, 3. Multiples. Multiples are privately owned businesses having a strong presence, on the high street in most major cities and towns. It is not uncommon for them, to be a part of larger travel and tourist businesses. Customers flock to them by, taking advantage of significant discounts., 4. Mega Travel Agencies. Because of their size and scope, they've been given, this term. They have complete control over every area of their business. In, addition to transportation, lodging, and other services pertinent to the needs of, their clients, they also offer comprehensive travel services., 5. Consortiums. They've teamed up with each other in order to get the best deals, and share information., 6. Independent Travel Agencies. These are small businesses that focus on a, particular market segment, such as business travel or other types of specialist, travel., 7. Conventional, full-service agencies. These travel firms offer a wide range of, services, including air, accommodation, vehicle rentals, retail travel, cruises,, and tours., 8. On-line Agencies. Almost all of these agencies are doing business online. A, few examples include Priceline, Expedia, and Orbitz. Air, housing, and vehicle, hire are the main items they focus on marketing. Cruises and excursions are, among the experimental items offered by online travel providers., 9. Home-based Agencies- Many agencies allow their employees to work, remotely, including from their own homes., There are several international and national organizations where the Philippine, travel industry is represented, including the Philippine Travel Agencies Association, (PTAA). In 1979, the PTAA was established as a result of a merger between national, organizations representing both outward and inbound tour operators. Visit the website, www.ptaa.org.ph/index.asp) for the different members of the agency., , Types of Travelers Served by Travel Agencies, Travel agencies serve three types of travelers: business travelers, leisure, travelers, and international travelers., 1. Due to the shrinking global market, businessmen travel all around the globe, to expand and seek business. With the advent of international agreements, between countries, the business arena is becoming viable to have dealings, with other countries. The nature of the agreement of business travelers is, predetermined as meetings and appointments have been set prior to the, guest's arrival.
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MODULE IN MICROPERSPECTIVE OF TOURISM AND HOSPITALITY, 2. Leisure travelers, as the same denotes, are travelers whose primary, purpose is rest and recreation. Travel agencies have designed various, packages to meet and entice these travelers to avail of “worry-free”, vacation packages., 3. International travelers can either be business or leisure travelers., Travel Agency Operations, To successfully market the different properties to intended clients, the travel, agency must have extensive information about the property. These can be derived in, several ways:, 1. Airline Computer Reservation System (CRS) lets travel agencies scan flight, information and availability and basic hotel information. Some famous CRS, are Galileo, Amadeus, Abacus, Patheo, Smi-Automatic Business Research, Environment (Sabre), and Worldspan, 2. Global Distribution System (GDS) is a major CRS that books reservations, in the hospitality industry, 3. Familiarization Tour (fam tour) is conducted in order to educate travel, agents, and potential clients about the sponsoring property's amenities, a, complimentary or reduced-rate travel program are offered., 4. Hotel brochures and property’s website, 5., , Strategic alliances websites show the alliances between two or more, emerging properties. Alliances are made to cope with the global expansion, of bigger hotel chains and the increasing number of travelers. Partnerships, with various properties allow hotels to have strategic positioning across the, globe and benefit from each other strength., , Requirements for Accreditation of Travel Agencies, Below are the lists of the requirements to be submitted for Accreditation of, Travel Agencies:, 1. A Filipino citizen who is a permanent resident in the Philippines., 2. A partnership formed under Philippine law, with at least 60% of its capital, owned by Filipinos, 3. At least 60% of the subscribed common or voting shares of the company's, stock are owned by Filipino nationals, and at least 60% of the board of directors, are composed of Filipinos., Supporting Documents to be submitted with the application:, 1. Documentation that shows that your business is a sole proprietorship or, partnership, as well as any revisions to your business name certificate and by-
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MODULE IN MICROPERSPECTIVE OF TOURISM AND HOSPITALITY, laws. If you are a corporation or partnership, a certified accurate copy of the, articles of partnership or incorporation and its by-laws., 2. If there are any tour guides or travel representatives on the list of executive, officers, their country, residence, and prior or current affiliation with the job and, duration of service are included., a. Proof that the manager has three (3) years of management experience in, tour operations, a Bachelor of Science in Tourism degree, or has, successfully completed a tour operator's course is required., b. Tour operator expertise is required for at least two (2) of the company's, permanent employees., 3. A valid visa from the Bureau of Immigration and the relevant permission from, the Department of Labor and Employment are required for alien officials and, workers., 4. Lessor's sworn declaration declaring that the agency is the lessee of his, building and the amount of space it occupies, or a contract of lease or contract, to lease the agency's office space, 5. Mayor’s permit/Municipal license, 6. A minimum of Php500,000.00 in operating capital as shown in the most recent, tax return and audited financial statements., 7. For each year, the company provides a sales report and a tariff sheet outlining, the service's validity period as well as its terms and conditions., 8. Department may request additional documentation from time to time., Additional Requirements for Travel Agency using a Motor Vehicle:, a. Unless a vehicle is registered with the government and has a tourist, license plate, no Travel Agency may provide tours or carry visitors in a, motor vehicle., b. Commercial districts are preferred, not residential ones. Tour operators, will only be allowed to use it for this purpose; thus, it needs to be, immediately recognizable. Travel agencies cannot accept vehicles, without a tourist license plate or departmental accreditation., 9. Accreditation Fee: After compliance with all the requirements under these rules,, a certificate of accreditation shall be issued to the applicant upon payment, of an accreditation fee of Php 1,100.00 per annum for the main office and, Php550.00 for each branch, 10. Validity of Accreditation. As a condition of receiving accreditation, the certificate, of accreditation must be valid for at least one year.
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MODULE IN MICROPERSPECTIVE OF TOURISM AND HOSPITALITY, 11. Primary customer- A customer group that must be satisfied in the overall, mission of the organization's products of services and has to report, satisfaction and give feedback., TOUR OPERATORS, Packager, wholesaler tour operator, tour wholesaler and wholesaler are terms, used interchangeably with tour operators (Cook, et al. 1999). Holloway (2002), described tour operators as having a distinct function in the tourism industry as they, purchase separate elements of transport, accommodation, and other services and, combine them into a package which they then sell directly or indirectly to consumers., He illustrated below the tour operator., Carriers, Accommodation, , Tour Operators, , Services, , Customer, Travel Agents, , The main product of a tour operator is a tour package. A tour package is a set, of accommodation, services, transportation, and activities that are provided for the, travelers for his/her travel to a particular destination with a corresponding amount. One, of the most important considerations for tourists in selecting a tour package is the price., There is a slew of variables that go into determining the final cost of a trip package, all, of which are disclosed in the brochure and any accompanying materials., A tour professional must be adept in explaining and interpreting details to the tourist to, avoid misconceptions and to ensure a smooth trip and understanding., A Tour operator must have extensive knowledge and skill in a personal, relations, geography, sales and marketing, English communication, active listener, and, of course service-oriented. Furthermore, a tour operator must book hotel and, transportation services for tourists, collect payments for transportation and, accommodation, plan and sell itinerary tour packages and promotional travel, incentives, and print requests for transportation carrier tickets and linkages to other, carriers., The different Tour Packages, A tour can be defined as any form of travel from place to place, with multiple, features that can be packed and sold as a single unit. Below are the different tour, packages and their classification., A. Special Interest Tours – These tours are designed and organized for a, specific group of tourists, which may or may not be led by a tour guide.
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MODULE IN MICROPERSPECTIVE OF TOURISM AND HOSPITALITY, B. Escorted Tours- tour participants find themselves constantly on the go. These, are tour groups of tourists not familiar with each other and are led by a tour, guide. This group has a tour director, who confirms hotel reservations,, schedules transportations, oversees the baggage handling, leads the, sightseeing excursions. It has a fixed set of destinations., C. Foreign Independent Tours- This is also known as Custom-Designed Tours., This type of tour is much easier to travel agents to offer to tourists because of, its wider array of choices of products, tourist has no fixed itinerary, they don’t, travel in a group. It is usually organized for leisure travel., D. Group Inclusive Tours- These tours are offered to groups that share a, particular affiliation, such as clubs or business organizations. These tours are, comprised of tourists with different interests but are more interested in pooling, their purchasing power to get some savings. (Libosada & Bosangit,2007)., Types of Tour Operator, 1. Inbound Operators – arrange and package holidays for visitors entering the, country where the operator is based., 2. Outbound operators- create packages for people going outside the country., 3. Specialty operators-concentrate on a specific destination or type of, accommodation or special interests, 4. Domestic operators- develop inclusive tours for residents who will travel within, their country., , Difference between Travel operator and Travel Agent, Tour operators are considered as the manufacturer of tour packages, while, travel agents are the retailers. As a retailer, they do not re-sell any goods or services, to clients. The travel agents get a commission from the tour operator or suppliers for, selling these to clients. Commission, as defined by Gee (1997) is payments received, by travel agents for the sale of air transportation, hotel accommodation, tours, car, rentals, and other products and services usually computed as a percentage of the sale, made by the agent., Tour Guides, Tour guides are essential to the tourism industry and play a pivotal part in its, success. Dahles (2002) maintain that tour guiding constitutes a strategic factor in the, representation of a destination area and in influencing the quality of tourist experience,, length of stay, and the resulting economic benefits for a local community. Having a tour, guide is an essential part of a tourist's experience in a new place. They serve as a, conduit for travelers, assisting them in their quest to forge their own identities through
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MODULE IN MICROPERSPECTIVE OF TOURISM AND HOSPITALITY, the travel experience. Tour guides are frontline staff who provide the ‘moment of truth’, for tourists and can make or break the trip (Zhang and Chow, 2004). It was possible, for the tourist to have a positive experience with all aspects of the place working as, planned and a tour guide providing the required connection. A bad performance by, destination components might be avoided if the visitors are guided by an experienced, tour guide. Another possibility is that a location has done all possible to provide a great, tourist experience, but a bad tour guide might ruin the whole thing for the visitors., According to this theory, it is the duty of tour guides to ensure that travelers are happy, with the amenities and services they get while on the road. According to Ham (1992), and Moscardo (1998), interpretation enhances visitor satisfaction and contributes to, the commercial viability of tourism operations. Their (tour guides) performance to a, large extent affects repeat and new business, and also the image of their tour, companies and even the destinations themselves (Geva and Goldman, 1991;, Mossberg, 1995; Pearce, 1982; Schmidt, 1979; Whipple and Thach, 1988; Wong, Ap,, and Sandiford, 1998). According to Moscardo (1996): Tour guiding (interpretation) is, trying to produce mindful visitors, visitors who are active, questioning, and capable of, reassessing the way they view the world. Moscardo (1998) identifies three primary, ways in which tour guides can help tourists enhance the quality of their experience- (1), providing information on available options so that tourists can make the best choices, about what they do and where they go; (2) providing information to encourage safety, and comfort, so tourist know how to cope with and better manage encountered, difficulties (e.g. advise on drinking water) and understand messages given by the, warning signs (e.g. do not smoke here); and (3) creating the actual experience so that, tourist can participate in activities such as heritage walks, adventure, visit art galleries, and learn in areas of educational interest. It is recognized by our government those, guides are essential for a high-quality tourist experience. “Guides play a vital role in, bringing satisfaction to tourists visiting a country or region/state. The opportunity of, direct interaction with the tourists makes them all the more responsible for projecting, the correct image of the country/region, giving factually correct information about the, destination, ensuring the safety and well being of the tourists as well as pleasant and, satisfying stay for them during their visits” (Ministry of Tourism, GoI, 2005). As a result,, stakeholders, including destination managers, must carefully consider the competency, of tour guides and the role they perform. Understandably, the roles of guides in, conveying information, offering explanations, and developing narrations have become, a current research theme (Dahles, 2002). While greeting and enlightening tourists is, still a primary function, tour guides are now expected to have a much broader role., They are no longer lone wolves operating in the wilderness. A destination's marketing
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MODULE IN MICROPERSPECTIVE OF TOURISM AND HOSPITALITY, plan must include them in order for them to succeed. Goldman (1991) has suggested, that ‘it is the guide that sells the next tour.’ As a result, the function of tour guides is, determined by the people in charge of setting the destination's strategy and putting, together the local guides. As an illustration, in India, the Ministry of Tourism,, Government of India is responsible for the training and licensing of tour guides at the, regional, state, and, in many cases, local levels, with the expectation that these guides, will serve as information brokers and cultural ambassadors. They are expected to, assume the function of tour managers when tour businesses nominate or fund, someone to attend a tour guide training program, such as in Taiwan.
