Lesson 2 TA

8/6/2019 Lesson 2 TA

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LESSON: 2

Travel Agency


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Travel Agent

* may be an individual/firm or corporation whichis commonly known as travel agency. An agency

means office of the travel agent or organizationwhere all travel goods and services are assembledand coordinate for the smooth conduct of travelagency business. Travel agency which packages and

process all the attractions, accesses, amenities andancillary services of a country and presents them tothe tourists. Thats why travel agencies are known asimage builderof a country.


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Travel agency

* is a person who has full knowledge

about tourist product destinations, modes oftravel, climate, accommodation and other

areas of service sector. He acts on behalf of

product providers/ principals and in returngets commission .


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Functions of Travel Agency

1. Provide information and expertise.

2. Recommend destinations, products and

services best suited to the needs of the client.3. Provide assistance in securing travel

documents.

4. Process travel arrangements.5. Assist in cases of refunds and cancellations.


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Organizational Structure, Departmental

F

unctions & Job Descriptions* Administration

This department is common to all

commercial enterprises and businessentities and necessary for the conduct of

the day-to-day business activities

pertaining to its management.


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4 Sections of Administration

Department

1. General Administration

2. Personnel

3. Accounting

4. Finance


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* General Administration Section

* Within this area of responsibility are the legal

aspects of the organization, which are normally

handled by lawyers on a retainer basis. This aspect

of the company is necessary for a) protection from

errors; b) third-party liability coverage: and c)

labor relations with the company employees.


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Duties of General Manager or Asst.

General Manager

* Insurance coverage- accidents, financial losses,

fire, burglary, employees health care, pension &

retirement.

* Purchase & maintenance of furniture, furnishing &

office equipment

* Formulation of Company Policies, Standard

Operating Procedures, company forms, filingsystems, electronic data & information processing

systems


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Duties of Secretary

1. Receives all incoming correspondence, logs, and distributes thesame accordingly.

2. Collects all outgoing correspondence and insures its delivery eitherby company messenger, post, and company mail or courierservices.

3. Designs, develops and maintains an effective filing system, bothelectronic and manual.

4. Monitors and maintains an adequate level of office supplies for alldepartments.

5. Efficiently operates all electronic communication system of the

organization.6. Prepares minutes of staff and departmental meetings.

7. Performs any other task as required.


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Personnel Section

The management and development of human

resources is an integral part of the Administrative

Department. This aspect involves hiring policies and

compensation schemes, specifically the qualifications

required of prospective employees and

compensation packages commensurate to theapplicants credentials.


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Education and training of the staff particularly in

work-related skills, such as those required for the

global distribution systems and training in the

handling of travel documentation, fall under thepurview of the personnel officer. The duties and

responsibilities are as follows:


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1. Assists in the development and maintenance of House Rules anddevelops an Employees Manual for general circulation.

2. Implements and enforces the house rules and issues commendationsand disciplinary notice when required.

3. Establishes the employees salary scale according to duties,degree of responsibility and qualifications.

4. Maintains an updated organizational chart for generalinformation.

5. Regularly updates employees benefits in line with general tradepractices.

6. Monitors the licensing requirements of the employees inaccordance to government regulations.

7. Maintains a central file of employees data (201 files).

8. Initiates employees training and development.


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Accounting Section

The Accounting section handles all records of the

company, including all pertinent government licenses

and permits. This section is also responsible for the

custody of accountable forms, such as

Provisional/Official Receipts, Invoices, Purchase

Orders, Tour Vouchers and suppliers tickets stocks.


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1. Post daily transactions, which include the following documents:a. Cash vouchers- recorded according to subsidiary

b. Officialreceipts- recorded according to subsidiary

c. Bills and invoices- recorded according to subsidiary onweekly basis only.

2. Maintains Subsidiary Ledgers for Accounts Payable and Accounts Receivable.3. Check Cash Vouchers and monitors cash position daily.

4. Prepares quarterly financial statements including bank reconciliation.

5. Prepares monthly, quarterly annual reports to BIR, SSS, Phil. Health and Pag IbigFound.

6. Prepares collection letter for all accounts.

7. Prepares the playroll, the pay slips, Vacation Leave and Sick Leave Ledgers ofstaff.

8. Prepares Cash Flow forecast when necessary.

9. Performs any other task as directed.


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Finance Section

The finance person assists the general manager in the

cash flow management of the organization. The

Cashier reports to the Administrative Officer or the

general manager and performs the following duties

and responsibilities:


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1. Receives all payments and makes sure that these are in order, and issuescorresponding provisional/official receipts.

2. Insures that all collection are duly deposited with the bank and creditedto the companys current/savings accounts.

3. Processes duly-approved and documented Petty Cash disbursement, and

makes sure that the Petty Cash is maintained at authorized levels.4. Prepares payments (cash and/or check) after these are approved and

signed, release the same, and makes sure that these are properlydocumented.

5. Liaises and follows up with the banks inward and outward remittances;and monitors exchange rates for proper disposition of foreign currency

when rates are favorable.6. Prepares financial reports, such as:

a. Daily Cash Position Reportb. Daily Cash Transaction Reportc. Monthly Cash Position Report


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Operation

The Operation Department is the core of the

TMC/travel agency business. It is primarily

engaged in the efficient and effective delivery of

the organizations services as an intermediary or as

agents of travel suppliers.


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1. To provide all necessary information requested byprospective travelers.

2. To recommend products and services best suited to thetravelers needs including best routes, carries,gateways and stopovers.

3. To fill out and log in all required information in theBooking Card for travel.

4. To relay all changes and confirmations to client.

5. To process refunds and cancellation fees.6. To prepare invoices as and when required.

7. To prepare company reports on counter sales.


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Marketing and Sales

The Marketing and Sales Manager, who reports

directly to the general manager, undertakes (or

representatives) do the active selling.


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1. Prepare an annual marketing plan directed towardsmaintaining and increasing predetermined levels of revenue.

2. Participate in the preparation of the organizations budget.

3. Supervise and coordinate all activities of the accountexecutive.

4. Decide on negotiated rates and concessions as needed.

5. Perform any other duties as directed.

6. Is in-charge of all marketing activities including attendancein local and international fairs and events, preparation ofpress release, marketing material, give-aways and the like.


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Sales

Counter sales are transactions captured by the travel

counselors or counter staff that is always geared to

service walk-in clients. For an organization that

employs its own Sales Agent/Representative or

Account Executives the duties and responsibilities

are as follows:


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1. Prepares and conducts monthly and daily sales call plans.

2. Submits regular reports on all sales activities.

3. Prepares proposal letters as needed.

4. Participates in developing the annual marketing plan.5. Negotiates ad hoc rates and credit facilities with suppliers

when necessary.

6. Represents the organization in business related social

activities and meetings when directed.7. Undertakes monthly evaluation of accounts in relation to

production, payments and credit.

8. Performs any other task as directed.


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III Travel Agency-Linkages


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Airlines

International Air Transport Association (IATA) operates

a network by which travel agencies sell airline and

receives commission.


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Accommodation Companies

Most hotels and other lodging companies, including

major Indian and international hotel chains, pay

commission to the travel agencies.


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Cruise Companies

The Cruise companies are informally regulated by its

own governing body, i.e., cruise lines associates,

which must approve any travel agency that desires

to sell booking on behalf of any member of a cruise

company.


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Insurance Companies

Today, many travel companies have included travel

insurance in their package tours like Thomas Cook.

The company insured the travelers to protect themagainst accident, loss of baggage and missed

flights.


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Banking Companies

Travel agencies offer banking facilities to the

travelers like clearance of traveler cheques and

arrangement of foreign currency.


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Educational Institutions

An agencys success depends almost entirely on thecompetence of management and expertise of the

staff. It develops manpower planning in such a waythat will help to conduct on campus selection andmatch the students to the requirements of thecompany. The linkage between travel companies

and tourism education institutions will solve theproblem of human resource requirements of presentand future.


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Other Organizations

The travel agencies need to maintain close ties with

many other organizations offering travel related

services like cultural and entertainmentorganizations, foreign tour companies, regional

passport office, department of tourism both at

centre and states, sports operators, transport

operators, food and beverage business etc.


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Retail Travel Agencies

A retail travel agency sells tourist products directly to

the public on behalf of the product suppliers and in

return gets commission.


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* According to Airlines Reporting Corporation (ARC)

a retail travel agency is defined as a business that

performs the following functions: quotes fares, rates,make reservations, arrange travel tickets and

accommodation, arrange travel insurance, foreign

currency, documents and accepts payments.


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Wholesale Travel Agency

* These agencies are specialized in organizingpackage tours, which are marketed to the

customers/tourist through the network of a retail travelagency or directly to the prospective clients (if thewholesale travel agency has a retail division). Awholesale travel agency purchases tourist productcomponents in bulk and designs package tours.

Wholesale travel agencies assemble package holidaysand sell them to the clients through retail travelagencies.


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V. Features Of Travel Agency Business


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An important link between the clients and principalsuppliers.

Image-builder

Ensures rapid travel service Provider of an authentic and reliable travel

information

A social and continuous process

Establishes good relationship with clients andvendors.

Date post:	08-Apr-2018
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Lesson 2 TA

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