TRAVEL AND

TOUR
MANAGEMENT
BY PHILIPPINE WOMEN’S UNIVERSITY CDCEC
MODULE 2 : MIDTERM
1st SEMESTER, SCHOOL YEAR 2020 – 2021
TRAVEL AND TOUR MANAGEMENT

CHAPTER V – BUSINESS ACTIVITIES THAT GENERATE INCOME

Name:___________________________ Score:___________/20
Yr/Course:________________________ Date:____________
PRETEST
I. FILL IN THE BLANK(S). Read each statement carefully and fill in the blank(s) with the correct
answer. (2pts each)
1. Before the ___________________ became widely available, the business sectors of the
Travel and Tourism industry that generate income for travel agencies were very clearly defined.
2. Saving costs is very important, especially for large __________________ companies.
3. The second most important business requirements is to have ___________________ staff.
4. ___________________ is a fundamental to keeping you ahead of the game.
5. The top business sectors of the Travel and Tourism industry in terms of volume are the
_________________,6. __________________and 7. ________________________.
8. ____________________________ costs are often among the three highest categories of
expense.
9. There must be a good mix and balance between the basic _________________ that are
essential to a successful destination.
10. In the growing Travel and Tourism industry, a combination of high-touch and
_________________skills are necessary.

LEARNING OUTCOMES
L.O 1. Identify the main business sectors of the industry
L.O.2. Identify other related sectors
L.O. 3. Explain the need to be selective

Today, the top business sectors of the Travel and Tourism industry in terms of volume are the
airlines, hotels and tour wholesalers. A second level category includes car rentals, cruises,
railways and other means of transportation. A third level category includes souvenir shops,
restaurants, museums, art galleries and other such amenities and attractions.

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Past and Present

Before the internet became widely available, the business sectors of the Travel and Tourism
industry that generate income for travel agencies were very clearly defined. They were mainly
airlines, followed by hotels and car rentals. As recently it was not uncommon to see most
agencies earning up to 80% or more of their income from sales of airline seats. Over the years,
many agencies diversified into selling tours packaged by wholesalers. As competition among
wholesalers increased and profit margins dropped, some agencies reduced their dependence
on income from leisure travel by selling corporate (business) travel, which could generally earn
the agency more income per ticket than leisure travel. Today, travel.

Make Money by Saving Money

Saving costs is very important, especially for large

multinational companies. For many medium-sized and large
companies, Travel & Entertainment (T&E) costs are often
among the three highest categories of expense. These
companies are continuously looking to cut costs by
renegotiating hotel rates, air fares and car rental charges
and hire professional travel managers to help them do that.
For every peso that companies save in T&E costs, they are
quite happy to pay additional amount of that in service fees
to travel professionals who have the ability to help them save in the travel and entertainment.

Other Related Business Sectors

Underlying the main business sectors of the Travel and Tourism industry are several other
larger sectors on which Travel and Tourism depends. These includes financial services like
charge cards and banking, insurance, telecommunications, the media, energy and agriculture.

Be Selective
While all these business sectors and activities are capable of generating considerable income
for the travel agency, clearly agents have to be selective about what they sell, depending on
office space availability, as well as their own personal expertise, knowledge, experience,
contacts, client base and preferences. The key is to sell what you know best.

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THE 5 A’s ESSENTIAL TO A SUCCESSFUL DESTINATION

Mix and Balance
There must be a good mix and balance between the basic 5 A’s that are essential to a successful
destination. These are:
1. Accommodation
2. Accessibility
3. Activities
4. Amenities
5. Attractions
People like to do different things when they travel. They come from different cultures, have
different likes and dislikes and of course have different budgets. A destination has to cater in
some shape or form to all these needs.
Accommodation - These are the places where people stay. Traditionally a hotel or inn, lodging
types now also includes cruise ship, camper-vans, accredited bed & breakfast private homes,
hostels and others

Accessibility - No destination can function well unless there is a means of getting there, such as
an airline, bus service, railway line or port. Lack of adequate accessibility is frequently cited as
one of the major obstacles to tourism development and investment in a destination

Activities - After reaching the destination, what do you do then? Enjoy a game of golf? Go
scuba-diving? Take a jungle trek? A river cruise? Destinations are working harder than ever to

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widen their range of activities in order to get people to stay longer and spend more time and
money in their localities.

Amenities - Local cruise is often of the top of the attractions of a destination. Restaurants,
designer bars and shopping plazas attract their fair share of visitors.

Attractions - What is there to see? Some like to go to the local museums r art galleries. Others
prefer the thrill of an amusement park, appealing for families with children, one of the fastest
growing holiday segments.

BUSINESS REQUIREMENTS AND COMMERCIAL SKILLS

Fundamental Requirements
The growing complexity of other travel agency has changed many of the business requirements
and commercial skills necessary for a travel and tourism business to operate efficiently.

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A Vision
Do you really want to build a really good travel consultancy? Or an ordinary one? Assuming that
you want to build a really good travel consultancy, you will need to be perfectly clear about
where you are today and where you want to be in ten years. This is where you really have to
decide how best to develop and use your skills, background and experience into a creating
outstanding company.
Enough Money
Having a vision is a good start, but suppliers will still ask you to “show me the money”. Hence,
perhaps the most important business requirement is to have sufficient cash to support the
volume turn over.
Financial Competence
In addition to having enough money, it is important to know how to manage it. You are often
dealing simultaneously with airlines, wholesalers, credit card companies, banks, corporate
clients and your own customers.
Well-Trained Staff
The second most important business requirements is to have well-trained staff. Unlike the
manufacturing business, which requires substantial financial investment, ours is a service
business that is “friendliness-intensive”.
Staff Compensation
If you are a travel business owner, you don’t want your trained staff to leave and join
the competition. While this is perennial problem, it can be minimized through a variety of
bonus, incentive or equity schemes that help staff develop a “sense of ownership” in the
agency.

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Good Negotiating Skills
Another critical requirement is to enhance the Unique Selling Proposition of your travel
business. To have to be able to secure the best product at the best prices.

Market Information and Intelligence

Although this is not strictly a business requirement, you must keep up-to-date on
products, sales channels, pricing, company ownership, senior management position, changing
laws and regulations and many other issues affecting your business environment, investors and
suppliers.

A Balanced Product Mix

Again, not technically a “business requirement” but good advice to keep in mind: Never
put your eggs in one basket. Even if you specialize, make sure that your product range is
diversified enough to support your business in case anything happens to affect any one sector
of your mistakes.

Creativity
Creativity is a fundamental to keeping you ahead of the game. This ranges from
creativity in coming up with business solutions to knowing when to apply that little extra touch
that wins you a new account.

CHARACTERISTICS, ATTRIBUTES AND SKILLS

Desirable Characteristics
In the growing Travel and Tourism industry, a combination of high-touch and high-tech skills are
necessary.
Requirements to be able to deliver the service and finalize sale:
 Creativity
 A love for the job
 Communication and presentation skills
 Service-mindedness
 Resourcefulness
 Patience
 A cool head
Qualifications:
 Multi-cultural Background

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 Language Skills
 Good Organizational Skills
 Professional Integrity and Ethics
 Team Spirit
 Good Knowledge of Geography
 Finance, Accounting and Managerial Skills
 The Finer Points
Here are the few tip, which are in line with developments taking place in the industry ate
large:
 Know your customer
 Know your product
 Focus on the Time & Money Factor
 Balance your Business
 Don’t Forget about the little touches
 Focus on the advice factor
 Think small

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Name:___________________________ Score:___________/20
Yr/Course:________________________ Date:____________
ACTIVITY NO. 1
I. Write TRUE if the statement is correct, FALSE if it is wrong.

_____1. Customers come to an agency only to look for the best price
_____2. It helps to know several languages if you wish to work in Travel and Tourism
_____3. If you do your job well independently, it is not important to function well as a team
member.
_____4. To advance your career in the travel business, knowledge of finance, accounting and
managerial skills is an advice.
_____5. Human touch which may simplify and sort our complex matters is a requirement in
working in travel and tourism industry.
_____6. A good knowledge of geography is not a major requirements in working with travel and
tour business.
_____7. Working in the travel business, one needs to know where and how to get the
information.
_____8. Handling customer complaints is an art.
_____9. Enjoying what you are doing will likely to increase your self-confidence.
_____10. Ability to present information about your products in persuasive, pleasant manner is
a personal requirements in working in travel industry.

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Name:___________________________ Score:___________/15
Yr/Course:________________________ Date:____________
QUIZ NO.1
I. Answer the following question(s). (5pts)
1. What is the connection of business in tourism industry?
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________

2. How do you define a successful destination?

______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________

3. What is cost cutting and why is it important?

______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________

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CHAPTER VI – TYPES OF TOURS AND TOUR COMPONENTS

Name:___________________________ Score:___________/20
Yr/Course:________________________ Date:____________
PRETEST
I. FILL IN THE BLANK(S). Read each statement carefully and fill in the blank(s). (2pts each)
1. World travel and tourism is expected to generate a growth rate of ____________ per year over the
next ten years.

2. F.I.T stands for _________________________________________.

3. On an ________________________, tour participants generally receive sightseeing vouchers and

admission tickets to featured attractions in advance.

4. A tour can be defined as any form of travel from place to place, with multiple features that can be
packaged and sold as a ________________________.

5. Participants in an independent tour can depart and return on any day and can even adjust the length
of their stay to suit their individual needs and __________________.

II. Answer the following question(s). (5pts each)

1. Define tour and travel management.

_____________________________________________________________________________________

________________________________________________________________________
_____________________________________________________________________________________

_______________________________________________________________________
_____________________________________________________________________________________

2. In tourism industry, how a tour can generate income?

_____________________________________________________________________________________

________________________________________________________________________
_____________________________________________________________________________________

_______________________________________________________________________
_____________________________________________________________________________________

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LEARNING OUTCOMES
At the end of this chapter, the learner will be expected to:
L.O 1. Identify five different types of tours
L.O.2. Describe the major components of a pre-packaged tour
L.O. 3. Describe the advantages of selling tours

DEFINITION, HISTORY AND TYPES OF TOURS

Without question, one of the most significant segments of the global, leisure-travel market is
that of tours. According to the World Travel and Tourism Council (WTTC), world travel and
tourism is expected to generate a growth rate of 4.3% per year over the next ten years. Major
tourism associations believe that the package tour product will continue to be highly popular
with the traveling public. Social trends predict that a large portion of the growth of tour
products will be in “partly packaged” holidays, customized holidays (F.I.T. “Foreign Independent
Tour”) and dynamic packaging, while interest in traditional all-inclusive tour packages may
drop.

A tour can be defined as any form of travel from place to place, with multiple features that can
be packaged and sold as a single unit. Most people, including students of the travel industry,
have preconceived notions about what tours really involve. Usually, they imagine tours as
regimented, sightseeing expeditions conducted by tireless guides with grueling itineraries. As
we shall see, however, tours comprise an ever-growing choice of travel possibilities that is a
result of ever changing needs and wants of a traveler.

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Custom-Designed Tours
Travelers who desire the highest degree of control over all of the elements of a tour will often
select a custom-designed tour. Travel professionals create custom-designed tours usually by
working closely with the client, to accommodate all of the individual needs and requests a
client makes with respect to the tour elements.

A custom-designed tour is commonly referred to as an F.I.T. (FIT) which is short for “foreign
independent tour”. The term FIT, is used loosely to describe both domestic and foreign tours.
FIT is usually organized for leisure travel, but there is a growing demand for pre, post and family
tours which can add a leisure component to the business traveler’s trip.

Independent Tours
An independent tour, as the name implies, is a tour where participants travel independently
without a group or guide. Participants in an independent tour can depart and return on any day
and can even adjust the length of their stay to suit their individual needs and preferences.
Travelers on this type of tour may not even realize they are on a tour at all. It does, however, fit
the destination of a tour because participants are purchasing some or most of their travel
elements as a package.

Hosted Tours
Hosted tours offer travelers an opportunity to travel independently, but also to receive
guidance and assistance from a host at each of the tour’s destinations. Typically the host is a
representative of a tour company or ground operator who assists participants with the planning
and organizing their activities and other tour arrangements.

Escorted Tours
Escorted tours commonly visit many destinations and as result the tour participants are
frequently on the movie. Unlike independent and hosted tours, which frequently focus on a
single destination, escorted tours often stop in several different locations throughout the tour.

PRE-PACKED TOUR COMPONENTS

Transport
Nearly all tours include transport as part of the tour package. Transport for tours comes in
many forms and may include air, car, motor-coach, train or ship to name the most common
forms. More exotic modes of transportation might be found on adventure tours including riding
an elephant or a carabao or even a dug-out canoe.

Accommodation
Almost all pre-packaged tours that are longer than a single day in duration include some type of
accommodation. Accommodations range from a simple tent to luxurious hotels and resorts,
and as such can be tailored to fit almost any traveler’s budget. Participants sometimes have the
option to choose their accommodation from different price ranges.

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Itineraries
Selecting a tour with an appropriate itinerary for the individual client is another important
component of pre-packaged tour. The elements of an itinerary include the routine, distances,
travel times, activities and sightseeing during the tour.
When considering tour itineraries, it is helpful to understand some basic guidelines
which may be broken down into five categories: Pace, Routing, Interests, Details and Energy
(P.R.I.D.E.)

An explanation of these categories are as follows:

 Pace – refers to how quickly an itinerary moves
 Routing – this should not be both interesting and efficient. Whenever possible, tour routes
should avoid back-tracking, double back or routing a client in circles
 Interests –on very significant way to add value to your clients’ tour is to match their interests
with corresponding activities and attractions along the way
 Details – once you have determined interests when planning a tour itinerary, it is very
important to pay attention to details
 Energy – finally, matching the energy level of the client with the energy level and intensity of
the tour itinerary is another way to assure the overall success of the tour

Sightseeing
Many tours include some type of sightseeing. Some tours, particularly escorted tours may have
itineraries that are packed with sightseeing. On an independent tour or hosted tour, tour
participants generally receive sightseeing vouchers and admission tickets to featured
attractions in advance.

Meals
As regard the meals, a wide range of meal plans should be available on pre-packaged tours. The
following is a breakdown of several types of plans that are commonly found as part of a tour:
 European Plan (EP)
 Continental Plan (CP)
 Modified American Plan (MAP)
 American Plan (AP)

Advantages of Selling Tours

Selling tours to travel clients offers a variety of advantages both the clients and the travel
professional. Advantages to the clients include the following:
 Time Efficiency – because many tours are planned and operated according to a time
schedule, they are very time efficient. This means that a tour participant can see more
destinations in less time
 Comfort and protection due to the presence of the escort – this may be particularly
important to travelers who are touring a part of the world with which they are totally
unfamiliar and in areas where they do not speak the language

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 Ease and convenience – because on most tours the components are pre-paid and packaged
together, it makes arranging and understanding details of the experience much easier for
the clients than if they have to arrange the details on their own
 Cost Savings – because tour operators and suppliers have access to tour components at a
wholesale cost, there may be a cost savings to the tour participants depending on the size
of the group
 Easier and Safer Niche Travel – for clients seeking a niche travel experience such as river
rafting, mountain climbing or an Africa Safari, a tours simplifies the details and affords the
tour participants much greater safety and security than doing the same itinerary on their
own
 Social – for many travelers, tours offer a ready-made social situation with a group of people,
who by virtue of the fact that they are on the same tour are likely to have similar interests

Benefits in marketing and Selling Tours

1. Profit Potential
2. Customer Relationship Development
3. Repeat Business Development
4. Provide Real Client Value

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Name:___________________________ Score:___________/10
Yr/Course:________________________ Date:____________
ACTIVITY NO.1
I. WRITE TR if the statement is true, FALSE if it is wrong. (1pt each)
______1. When a tour offers the “European Plan”, participants receive all three daily meals as
part of their tour package
______2. On a “hosted tour”, a participant travel together as a group and as always
accompanied by a professional escort, to coordinates the group’s itinerary and activities
______3. Helping a client select a tour with an appropriate itinerary is an essential function for
a professional travel agent and is an effective way to gain client trust
______4. Travelers place a high value in having accommodations that suits their particular
tastes and needs
______5. Almost all pre-packaged tours that are longer than a single day in duration include
some type of accommodation
______6. On escorted tours, the tour participants do not say at the same accommodations and
this warrants special consideration
______7. A rail tour is a tour whose primary mode of transport during the tour is by train
______8. Transfers are not limited to transport between airports and hotels
______9. A travel professional you must pay particular attention to accommodation when
booking tours for your clients
______10. Itinerary include the route, distances, travel times, activities and sightseeing during
the tour

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Name:___________________________ Score:___________/20
Yr/Course:________________________ Date:____________
QUIZ NO.1
I. Make a recorded video of a certain destination and persuade travelers to invite them visit
your chosen destination. (Max of 2mins only)
1. Your video will be collected by your class president.
2. Your class president will collate your videos into one folder only.
3. Your class president will send your videos on my email account
nicanatividad@pwutarlac.edu.ph
4. Your file name on your videos should be “Lastname-CHAP6-QUIZ1”

CHAPTER VII – TRAVEL MANAGEMENT CYCLE

Name:___________________________ Score:___________/20
Yr/Course:________________________ Date:____________
PRETEST
I. Define the following term(s) below. (2pts each)
1. Professional fee
_____________________________________________________________________________
_____________________________________________________________________________

2. Travel Management
_____________________________________________________________________________
_____________________________________________________________________________

3. Travel Information Slip

_____________________________________________________________________________
_____________________________________________________________________________

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4. Flight Status
_____________________________________________________________________________
_____________________________________________________________________________

5. Itinerary
_____________________________________________________________________________
_____________________________________________________________________________

II. Answer the question below. (10pts)

1. How are you going to persuade a “DIY Traveler” to consult with a Travel Management
Company? Explain your answer.
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________

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LEARNING OUTCOMES
At the end of this chapter, the learner will be expected to:
L.O 1. Describe the tasks involved in managing travel arrangements for leisure travel.
L.O.2. Organize a travel information required to prepare travel arrangements.

The TRAVEL OPERATIONS DEPARTMENT is the core of the travel business. It involves the
efficient and effective delivery of the organizations services as partners of the travelers and
travel services suppliers.

TRAVEL MANAGEMENT CYCLE

1. PROVIDING TRAVEL INFORMATION AND ADVICE – the first step is to obtain all necessary
information from the prospective client and providing suitable recommendations that meets
the client’s needs, preference or fancies; this will enable the preparation of a travel
arrangement proposal and the checking of availability of the proposed suppliers.
2. DETERMINING FARES, RATES, AND PROFESSIONAL RATES – putting together the costs of
transportation, accommodations, sight-seeing tours and tour packages, cruises or other service
included in the itinerary is the next step. Part of this step is to determine the appropriate mark-
up, service charge or professional fee and seeking the client’s acceptance of the proposed
travel arrangements.
3. PREPARING QUOTATIONS AND TRAVEL PROPOSALS – this step aims to get the client’s
consent on the travel quotation or proposal and agreement to reserve and purchase the travel
services based on the price proposed or amount indicated.
4. REQUESTING RESERVATION AND OBTAINING CONFIRMATIONS – this step entails requesting
for space or services with the suppliers in advance by preparing all necessary forms and
correspondence.
5. ISSUING TICKETS, TOUR VOUCHERS AND EXCHANGE ORDERS – once all arrangements are
confirmed, preparing and issuing transportation tickets, exchange orders and tour vouchers for
the suppliers is the next step.
6. PROVIDING TRAVEL DOCUMENTATION ASSISTANCE – on a case-to-case basis, provide
assistance in the preparation, filling and acquisition of all necessary documents for travel and
the necessary supporting documents thereof.
7. PROCESSING TRAVEL ACCOUNTS – this step involves the collection of final payments due
from clients and payment due to suppliers.

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8. EVALUATING DELIVERY – the last step is the assessment of the client’s satisfaction in the
travel arrangements. This is usually a post-trip activity.

PROVIDING TRAVEL INFORMATION AND EXPERT ADVICE

Providing travel information and expert advice aims to capture a sales transaction. These
transactions are the results of providing proper travel information and expert advice. The first
step is to identify the needs, interests or fancies of the clients. A set of basic information
enables the travel counselor or counter staff to provide relevant information and make
appropriate suggestions and recommendations.

TRAVEL INFORMATION SLIP

The basic travel information is capture in the TRAVEL INFORMATION SLIP (TIS). This slip is
prepared by the operations staff while interviewing the clients to determine the travel needs.

WOW TRAVEL AND TOURS SOUTH

Passenger/s Name/s Adult: Date of Inquiry:
1.
2 Children:.
3.
Passenger/s Contact Details

Inclusive dates of Trip Preferred Destination & Nights per

Destination
Hotel Category: Type & No. of Meal Base and Date of Mals:
Rooms:
Preferred Sightseeing

Travel Documentation Presented (if any) Special Requirements (if any)

Once the essential travel information is at hand, arrange the preferred destination cities in the
proper sequence – following the itinerary planning rules – by locating in a map the location of
these cities, thereby determining the first, second, and third city to be visited.
A duly accomplished TIS, with the basic information and obtained from the clients, enables the
proper planning of these arrangements.

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Once the itinerary is determined, all other travel arrangements such as the lodging
establishments, transport schedules of flights or any other transportation mediums and the
recommended sightseeing tours, tour packages or cruises – are identified and sourced.

FREEDOMS OF THE AIR

To better appreciate the principles and processes of flight itinerary, it is essential to have an
understanding of the Freedoms of the Air. These are a set of commercial aviation rights
granting a country’s airline(s) the privilege to enter and land in another country’s airspace.
These were formulated in the Convention on International Civil Aviation of 1944. (known as the
Chicago Convention). The convention was successful in drawing up a multilateral agreement for
a standardized set of separate air rights which may be negotiated between states.
Freedoms of the air apply to commercial aviation, allowing air transportation companies to
carry paying passengers, transporting cargo and/or mail.

FREEDOM DESCRIPTION
1st The right to flyover a foreign country without
landing there.
2nd The right to refuel or carry out maintenance
in a foreign country on the way to another
country
3rd The right to fly from one’s own country to
another
4th The right to fly from another country to
one’s own
5th The right to fly between two foreign
countries during flights while the flight
originates or ends in one’s own country
6th The right to fly from a foreign country
another one while stopping in one’s own
country to for non-technical reasons
7th The right to fly between two foreign
countries while not offering flights to one’s
own country
8th The right to fly between two or more airports
in a foreign country while continuing service
to one’s own country
9th The right to do traffic within a foreign
country without continuing service to one’s
own country

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ITINERARY PLANNING
Flight itinerary planning is the process by which cities to be visited are arranged in the desired
sequence to conform with the passenger’s desired travel plans, starting from the point of origin
to the destination or destinations to be visited in the desired sequences.
When planning a flight itinerary there are three (3) basic rules to follow:
1. Avoid crisscrossing the sectors/ segments of the itinerary
2. Avoid backtracking when determining the city-pair; and
3. The lesser number of carriers used in the flight selection the more competitive and better
airfare.

WHERE TO CHECK FLIGHTS IN TRAVEL PORTALS

Following are the summaries of known travel web sites, such as Asia Travel, Orbitz, RezkEy,
Travelers Net and Expedia.
1. ASIATRAVEL.COM – is the leading Pan Asia online hotel and travel reservation service
provider supported by a network of operation and customer service offices in Singapore,
Malaysia, Indonesia, Thailand, Philippines, Hong Kong, China, UAE, Japan, Korea, Taiwan, Sri
Lanka, India and Maldives. It offers discounted hotels worldwide and airfares for all major
airlines departing from countries in Asia. Its goal is to provide all information and necessary
reservations for your business, or leisure travel and this information can be at your fingertips
anytime, anywhere.

2. ORBITZ.COM – is a leading global online travel company that uses innovative technology to
enable leisure and business travelers to research, plan and book a broad range of travel
products.

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3. REZKEY.COM – is a privately held corporation registered in California. RezKey provides an
integrated online booking engine and reservation service that enables travel, destinations, and
event websites, intranets, extranets, and call centers to dramatically increase their revenues
and productivity by providing real-time booking and reports.

4. TRAVELERSNET.COM – is a pioneer in the Online Travel Business, since 1995. Travel Net’s
powerful booking engines connect directly to the central reservations systems of airlines, hotels
and car rental companies worldwide, resulting in better rate and product descriptions and in
many cases a greater variety of rates.

5. EXPEDIA.INC – is a leading online travel agency in the United States of America. Its Expert
Searching and Pricing (ESP) technology delivers the most comprehensive flight options available
online. ESP also allows customers to build complete trips that combine flights, lodging, ground
transportation, and destination activities.

PREPARING AN ITINERARY
When preparing an itinerary, follow the step-by-step procedure below:
1. Sequentially arrange the city-pair to determine the trip’s segment.
2. Determine the date and day of each flight segment;
3. Select the appropriate flight – if no direct flights are available, select an intermediate hub and
revise the city-pair sequence – dual-city pair;
4. Fill-out the boxes in the form below;
5. At this point, it is not required to fill-out boxes “G, H and I” below. These boxes will be filled
up when placing the reservations and obtaining confirmations.

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Date From To Flight/Train ETD ETA Status Option PNR Airfare
No/ Class
A B C D E F G H I J

Total fare Per Passenger K

Applicable Per Person taxes, fees and surcharges L
Total Fare Per Passenger with taxes and surcharges MxN No. of Pax = O

SOURCING ACCOMMODATIONS ESTABLISHMENTS

When sourcing or selecting accommodation establishments, follow the step-by-step procedure
below:
1. Sequentially arrange the cities in the same order as the trip’s itinerary
2. Determine the check-in and check-out dates as per the flight itinerary
3. Select the appropriate hotel based on the requested category and location
4. Determine the room type and number of rooms that will accommodate the number of guests
in the transaction
5. Determine the applicable room rate, per room type
6. Determine the amount due, per city, based on the number of nights;
7. Fill-out the box in the form below.

SELECTING SIGHTSEEING TOURS AND TOUR PACKAGES

When selecting a sightseeing tour follow the step-by-step procedure below:
1. Sequentially arrange the cities in the same order as the trip’s itinerary
2. Determine the date of the tour is to be availed, the departure time and pick-up place;
3. Determine the name of the sightseeing tour;
4. Determine the duration of the sightseeing tour in terms of hours and the time of day AM,
PM, FD (full-day AM plus PM) or EV (evening)
5. Take note of the inclusions – tour guide, entrance fees, snacks, (or lunch);
6. Determine the rate per person
7. Determine the number of persons;

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8. Determine the amount due, per city, based on the number of persons.

When selecting a tour package follow step-by-step procedure below:

Determine the name, durations and inclusive dates of the tour package to be availed of:
1. Determine the start date, time and location/place and the end date, time and place/location
2. Carefully check the inclusions – accommodation basis (twin-share, dorm-type, meal base,
transfers, and sightseeing tours included (if any)
3. Determine the package rate per person (half-twin basis) and single-occupancy supplement
and triple reduction as applicable to the clients;
4. Determine the number of persons and accommodation (room) requirements and
5. Determine the amount due based on the number of persons and rooms required.

DETERMINING FARES, RATES AND PROFESSIONAL FEES

TRANSPORTATION FARES
The amount to be charged for an air journey is dependent on the type of journey to be
undertaken. For example, a passenger who boards an aircraft at point A, flies direct non-stop to
point B and disembarks will be charged the corresponding fare (published/net) for that trip.
However, most journeys are not that simple. A passenger may ask for intermediate stops,
return trips or different class of service. This requires a calculation of the total fare for the
various components of the journey.
In the Philippines today travel management companies use any of four different ways to
calculate airfares.
1. The first and most common source is the RATE SHEET provided by the respective
corresponding net airfares.
2. The second source is the AIR PASSENGER TARIFF (APT) a two-book set which gives the
applicable air fares on the various sectors, regardless of airline.
3. The third source is an airline’s RATE DESK which provides quick air fare calculations for very
complex and difficult itineraries.
4. The fourth source is the global distribution system FARE QUOTATION DISPLAY (FQD)

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HOTEL AND OTHER RATES
In the course of sourcing accommodation, tours and tour packages, cruise and any other service
component of the proposed travel arrangements, it is essential to determine the unit cost of
each component.

 For accommodation, the key information includes room category, cruise and any oter room
rate, number of rooms and number of nights.
 For sightseeing tours, the essential information includes the per person tour rate duration of
the tour.
 For tour packages, the necessary information includes half-twin rate, the single supplement
and the triple reduction. Also the duration of the package expressed in night.
 For cruises the required information is like a tour package with the additional information on
the category and type of accommodations onboard an pre and post cruise accommodations
and airfares.
 For land transfers and vehicle rentals, these are normally sold on at published rates, which
are commissionable to bona fide travel arrangers and tour operators.

PROFESSIONAL FEES
Aside from the traditional rate-minus scheme, which is paid by the principal, as a source of
revenues, TMCs rely on three other ways to generate revenues. These are the mark up on net
costs, service charge and professional fee, which depend of a number of factors determined by
the travel management company – such as the company’s overhead fixed and variable costs.

 Mark-up on net cost is the traditional way. This is hidden from the client. However, the
over-all price must be competitive.
 Service Charges are open, fixed amounts per person paid by the client for ancillary services,
such as assistance in securing travel-related documents; and
 Professional fees are open and negotiated, These are divided into three (3), namely: 1. Fixed
amount per person; 2. An agreed percentage based on the total cost of the travel
arrangement; 3. A fixed amount per transactions, regardless of the number of passengers.

PREPARING QUOTATIONS AND TRAVEL PROPOSALS

This step aims to get the client’s consent on a travel quotation and proposal and to agree to
purchase based on the price proposed or amount indicated. A travel quotation is the sum total
price of services requested or proposed; while a travel proposal details the services to be
availed of during a trip. Combined, they form a formal offering for the client’s acceptance.
The formal offering follows either a verbally estimated price or an informal written note such as
an SMS (text) message or a short e-mail quotation. In either case, this formal written proposal

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contains full details in a business letter format. The price is always followed by the inclusions,
the restrictions, the terms and the conditions.

PROCESSING RESERVATIONS AND OBTAINING CONFIRMATIONS

Reservations are advanced advance requests for available space and services at some time in
the future. A confirmation is a written advice by a supplier that a reservation has been accepted
and will be honored, thus the term “confirmed reservations.”
There are three basic ways of placing reservations:
1. MANUAL RESERVATIONS – direct contact with the supplier’s staff by mobile or regular
phone.
2. ELECTRONIC RESERVATIONS – through the supplier’s e-mail address or interactive website
that receives reservations, provides request status and generates confirmations, and
3. AUTOMATED RESERVATIONS – through an intermediary global distribution system wherein
the registered supplier provides availability and accepts reservations.

FLIGHT RESERVATIONS
MANUAL RESERVATIONS
Manual reservations are the traditional way of placing reservation before the advent of e-
commerce and the Internet. This method involves direct contact with the supplier’s staff by
mobile or regular phone. It is highly personal and fosters client-intermediary and intermediary-
supplier commercial relations.
When making manual reservations with a scheduled air carrier or an airline, provide the
following information:
1. SECTOR/LEG REQUIRED – sectors being traveled, that is point of origin to point of
destination.
2. FLIGHT NUMBER/CLASS – the preferred flight number and class.
3. DATE OF TRAVEL – date the passenger(s) is/ are travelling, per sector/leg.
4. PASSENGER(S) NAME, and HOW MANY PASSENGERS (adults/children – with corresponding
ages) or required seats.

ELECTRONIC RESERVATIONS (E-MAILED BOOKINGS)

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The use of e-mail correspondence involving writing to the e-mail address of the supplier, and
receiving a reply from a department or individual introduced electronic reservations. This is less
personal since the human contact is indirect.

AUTOMATED RESERVATIONS
Automated reservations are made through a GDS wherein the supplier is a subscriber or
member. Unlike electronic reservations where fields or boxes in the screen are filled-out with
the necessary details, this method provides the availability of a service first, allowing the client
to make a choice. After the selection is made and inputted the system provides confirmations.

AMADEUS AUTOMATED RESERVATION SYSTEM

The rapid growth of the travel business and the increasing demand for fast, reliable and open
technology requires a system that delivers the control and effectiveness needed for efficiently
processing leisure travel and travel business transaction. Fast, reliable and open technology is
available through the Amadeus System in the public internet, named Amadeus Selling Platform
(ASP) designed specifically for travel intermediaries.

OBTAINING CONFIRMATIONS
Placing reservations is the first part of the reservations process. The second part, obtaining
confirmations is equally important as reservations without confirmations are no reservations at
all.
Nowadays confirmations are obtained immediately upon placing the reservations, especially if
these are made online. However, there are instances when reservations are not immediately
accepted, in which case these are awaiting confirmation or wait-listed.
To options may be availed of in these cases. First is to wait until the reservations are confirmed
or declined; second is to make protection bookings. A protection booking is a parallel
reservation on the same date or for the same period with another supplier.

ISSUING TICKETS, TOUR VOUCHERS AND EXCHANGE ORDERS

Only after the reservations have been processed and confirmed and the applicable airfares
calculated, can be the Ticketing Officer process the air ticket. The issuance of the air ticket is the
final step in managing a passenger’s air travel requirements. It represents a contract between a
passenger and a carrier and represents a passenger’s payment to the travel management
company.

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A few years ago, the paper ticket was the preferred mode of providing the contract of carriage
for air transportation companies, while the e-tickets were the exception. Today the reverse is
true, e-ticket are the rule while paper tickets are the exceptions.

ELECTRONIC AIR TICKET

This familiar paper ticket in booklet format with air coupons has been phased-out, except for
cases that still require their issuance, such as:
1. For multi-sector, multi airline itineraries by carriers with no interline agreements between
them;
2. For airline companies with no reservations data base for electronic or automated systems;
and
3. In remote areas where no electricity or automated systems exists

The e-ticket on the other hand is a paperless electronic document used for ticketing passengers
in the commercial airline industry. The ticket per se is stored in the airlines vast data base that
computerizes their reservation system, while the passenger is provided with a so-called
transaction receipt, which specifies all details of the air journey. All information that a so-called
paper ticket contains is electronically stored in the system and detailed in the transaction
receipt issued to the traveller after payment is received.
E-ticketing simplifies the issuance of paperless e-tickets, generates electronic reports and
monitors materialization of bookings. E-ticketing and reporting provide the most significant
opportunities to reduce costs and improve passenger convenience. It reduces ticket processing
charges, eliminates the need for paper and allows greater flexibility to the passenger and the
travel manager to make changes to the itinerary.

REMINDERS PRIOR TO THE RELEASE OF AN AIR TICKET

Once the trip itinerary and receipt has been inputted and printed, the following steps should be
done before it is released to the passenger:
1. Check the accuracy of all flight details.
2. Inform the passenger of the restrictions and/or limitations of the ticket (if any) such as
“limited validity”, “non-re-routable”, “non-endorsable” and the like, and the applicable fare
rules.
3. Remind the passenger of the standard baggage allowance.
4. Remind the passenger of the check-in time, departure time and aircraft type, if available.

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5. For international flights, double-check the required travel documents and provide additional
pertinent information.
6. Thank the passenger for patronizing your travel organization and wish him/her a pleasant
trip.

AUTOMATED AIRLINE CHECK-IN

An added benefit resulting from the introduction of the e-ticket is the capability of some
airports in the world for to automate the check-in process. Automated airline check-in can
speed up check-in time by as much as 50%.
In automated airport check-in, passengers enter identifying information using the “keyboard”
shown on the touch screen such as the flight confirmation code or frequent flyer number.
Passengers who have already check-in online scan their boarding pass or swipe an identification
document and the boarding pass and corresponding luggage tags are printed and release by the
check-in machine. Passengers touch a “clear” or “backspace” key if a mistake is made.

PURCHASE ORDERS
For travel management companies that are non-IATA accredited and as such do not have the
capability to have e-ticket printed by their respective GDS, ticketing functions are done through
IATA accredited travel management companies or directly with the airlines or other
transportation companies, by issuing a PURCHASE ORDER after arrangements for credit
facilities and the acceptance of these have been made with the providers.

The PURCHASE ORDER is a document issued by a travel management company requesting an

IATA-accredited travel entity or an airline/transportation company to issue corresponding
tickets in favor of the passenger/s named in the document.

EXCHANGE ORDERS OR TOUR VOUCHERS

The Exchange Order/ Tour Voucher is a document issued by the travel counselor of a TMC or
the reservations staff of a TO, specifying services to be provided to the bearer. This is
surrendered to the supplier in exchange for the services stipulated in the Exchange Order/ Tour
Voucher.

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PROVIDING TRAVEL DOCUMENTATION ADVICE AND ASSISTANCE
A TMC provides advice and assistance in applying and legally obtaining government – related
travel documentations necessary for travel. These are divided as follows:
1. Documents required for leaving the country of origin
2. Documents required for transit countries;
3. Documents required entry to, and exit from, the destination country;
4. Documents required for re-entry to the country of origin;

Travel documentation advice and assistance involves the review of travel documents presented
by the prospective passengers to ascertain that the period of validity of these documents has
not expired, and that they meet the requirements of the country in transit or destination.
1. Citizen (or National) – a person who possesses the nationality of a country.
2. Alien – a person living in a country where he or she is not a citizen.
3. Tourist – a person who temporarily visits a country for at least 24 hours.
4. Transit Passenger – a person passing through a country’s airport without leaving the
international transit area.

GENERAL VISA REQUIREMENTS

Another essential travel document is the “visa: which is issued by the intended country of visit.
When applying for a visa the applicant’s passport must be valid for at least six (6) months from
the date of filing. The “visa” does not necessarily allow entrance to the country; this is
determined at the country’s point of entry by its immigration officials.

The required support documentation varies from country to country. Generally, however, the
following will be required.
NON-IMMIGRANT U.S VISA
Nonimmigrant U.S Visa Application Procedures, the application procedure for first time non-
immigrant visa applicants and applicants who were previously issued a non-immigrant visa is
the same.
Application Process consists of five (5) steps:
1. Payment of Application Fee

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2. Required Documents
3. Schedule an Interview
4. Go for the Interview
5. After issuance of visa

KOREAN TOURIST VISA

Philippine passport holders and individuals who intend to visit or work in Korea are required to
secure a visa at the Consular Office.

Visa exemptions are as follows:

1. Frequent visitors who made more than 4 visits to Korea in the past two years, or more than
10 visits overall may enter Korea without a Korean visa as long as they have no immigration
offense or other criminal records. (Except for Chinese, Cuban and Macedonian)
2. Travelers with a valid visa or a re-entry permit to U.S., Japan, Canada, Australia or New
Zealand (5 countries) and travelling to any one of those countries through Korea. They must
have a confirmed onward flight ticket for departure within 30 days after entering Korea to any
of the mentioned countries. In addition to having no record of criminal offense in the five
countries mentioned above.
3. Travelers who will arrive directly to Jeju Island by flights or ships. Except for nationals of the
following countries (Iran, Iraq, Sudan, Libya, Cuba, Syria, Macedonia, Palestine, Afghanistan,
Nigeria, and Ghana). 30 days stay only.
4. A staff of the United Nations or special organization that have a travel document, namely,
LAISSEZ-PASSER issued by U.N office is allowed to enter Korea without a visa and is granted to
stay for 30 days.
5. APEC Business Travel Card Holders (to qualify for this, please check if Korea is written at the
back of your APEC card)

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6. If Nationality is among the list of those exempted from securing a visa. For information, or list
of these nationalities, you may visit the website.

VISA REQUIREMENTS FOR TOURISTS

1. Application Form
2. Original Passport (5 Mos. Valid), Copy of passport first page.
3. 2 Passport sized colored picture
4. Copy of valid visas and arrival stamps to all OECD member countries within the past 5 years.
5. Itinerary. Copy of round trip tickets or itinerary
6. Hotel Reservations. Copy of confirmed hotel reservations
7. Payment of Visa Fees

VISA FOR AUSTRALIA AND OTHER COUNTRIES

For travel to Australia, an applicant must present a travel insurance policy, a medical certificate
that the person is fit to travel, and a duly accomplished application form with the following
documents:
1. Original Copy of the Income Tax Return
2. A Bank Certificate confirming a bank account and when it was opened
3. A Certificate of Employment; or if self-employed, Business Registration Certificate
4. Old and New Passports
5. Passport-size pictures

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TRAVEL INFORMATION MANUAL (TIM)
An important publication for visa documentation purposes is the Travel Information Manual
(TIM) the leading source for information on air travel requirements, which is jointly published
by members of IATA. Millions of passengers find their way to final destinations time after time
with the TIM. The never-ending movement of people and commodities continues to run
smoothly when players are informed of the specific requirements to be completed by travelers
intending to visit international destinations.

The TIM is a must for all who are involved in the travel industry. This unique manual lists rule
and regulations for more than 216 countries on subjects such as:
1. Passports
2. Visas
3. Health Information
4. Airport Tax
5. Customs and Currencies
6. Latest News

It is the responsibility of the TMC to inform the traveler about the requirements to be
completed to legally enter a foreign country. Knowledge of these terms is necessary in order to
understand the rules and regulations of the TIM. The TIM gives details on the amount of
currency which a traveler may import to, or export from, a specific country. These restrictions
must be brought to the attention of the traveler as a violation can result in imprisonment or
heavy fines.

BUREAU OF IMMIGRATION SERVICES

The Bureau of Immigration acts as the enforcement arm of the Department of Justice and the
President of the Philippines in ensuring that all foreigners within its territorial jurisdiction
comply with existing laws.

It assists local and international law enforcement agencies in securing the tranquility of the
state against foreigners whose presence or stay in the Philippines may be deemed threats to
national security, public safety, public morals and public health, and is the repository of all
immigration records pertaining to entry, temporary sojourn, admission, residence and
departure of all foreigners in the country.

EVALUATING OF DELIVERY
The last step in the travel management cycle is the assessment of the client’s satisfaction in the
travel arrangements planned, arranged and delivered through the TMC. This post-trip activity
involves contacting the clients upon their return to determine their level of satisfaction on the
products and services purchased.

The following are methods of evaluation:

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1. A standard post-trip evaluation form which the client fill-out upon return and is mailed to the
TMC for collation and evaluations and possible port-trip action, such as reply to complaints of
suggestions received about the trip;
2. An e-mailed message requesting informal comments and suggestions about the trip just
concluded;
3. A personal phone-call to solicit answers about the trip
4. A personal meeting with the clients.

The ultimate objective is to ensure client satisfaction and thus repeat business in the future and
word-of-mouth endorsement to the client’s friends and relatives.

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Name:___________________________ Score:___________/20
Yr/Course:________________________ Date:____________
ACTIVITY NO.1
I. Answer the following question(s) below. (5pts each)

1. What is travel management cycle?

_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
2. What is the difference between passport and a visa?
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
3. How the travel management cycle affects the whole operation of Travel Management
Companies?
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________

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Name:___________________________ Score:___________/20
Yr/Course:________________________ Date:____________
QUIZ NO.1
I. Online Activity.

1. Choose one country (no repetition)

2. Discuss the process of acquiring tourist visa for Filipinos.
3. Make a short powerpoint presentation and share it to the class.
4. Be prepared on answering possible questions.

CHAPTER REVIEW EXAM

Name:___________________________ Score:___________/
Yr/Course:________________________ Date:____________
I. Define the given term(s) below on your own words. (2pts each)

1. Customer Service
______________________________________________________________________________
______________________________________________________________________________

2. Passport
______________________________________________________________________________
______________________________________________________________________________

3. Visa
______________________________________________________________________________
______________________________________________________________________________

4. Bureau of Immigration
______________________________________________________________________________
______________________________________________________________________________

5. Attraction
______________________________________________________________________________
______________________________________________________________________________

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6. Ammenities
______________________________________________________________________________
______________________________________________________________________________

7. Itinerary
______________________________________________________________________________
______________________________________________________________________________

8. Hosted Tours
______________________________________________________________________________
______________________________________________________________________________

9. Financial Competence
______________________________________________________________________________
______________________________________________________________________________

10. Tour Vouchers

______________________________________________________________________________
______________________________________________________________________________

II. Arrange the jumbled word(s) given. (2pts each)

1. SENSSUBI - _____________________________
2. CACYITLIBISES - _________________________
3. TMISRUO - _____________________________
4. HISGTEIESNG - __________________________
5. AENROEUPLPNA - _______________________
6. VARTLEVASIA - _________________________
7. OIONATTUQ - __________________________
8. SAPREGNES - __________________________
9. MIMINNONTARG - ______________________
10. EINLA - _______________________________

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III. ESSAY. (10pts)
1. Explain this statement by Matthew Karsten: “Investment in travel is an investment in
yourself”.
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________

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