MODULE FOR

TOUR AND TRAVEL

MANAGEMENT
(TPC 1)
2nd SEMESTER - ACADEMIC YEAR 2022-2023

Prepared and Compiled by:

DAVE SIDNEY M. TIRONES

Program Chair, BSTM

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Prepared and Compiled by: Mr. Dave Sidney M. Tirones
College of Tourism and Hospitality Management (CTHM)
Tour and Travel Management (TPC 1)
 GUIDE ON HOW TO USE THE MODULE

A. For Faculty
In the situation we are in today without face-to-face learning and teaching, this module is
designed for Tour and Travel Management (TPC 1).

This will guide the teaching method and help students alleviate the learning difficulties of
the current situation. Your full guidance on students is expected to achieve full learning.

Also, teachers should try to discuss all the contents of the module within the allotted time.
Each teacher is free to use his strategy so that they can be taught based on the ability and needs of
his student. Hoping that teachers will be open-minded and considerate in the various situations the
students are experiencing today and have a broad understanding of any possible shortcomings of
the students in answering and performing in this module.

The distribution of this module is through Google Mail Accounts (Gmail), Google
Classroom, or any most practical distribution medium based on the group to which they belong.

B. For Learners
We are aware of the hardships you are going through at this time so we want you to stay in
your homes, please do not let your learning stop. From here, teachers have prepared this module
for you.

This module was created to tailor and support your needs and interests in the course subject
of Tour and Travel Management (TPC 1). This course will have eight (8) chapters consisting of
lessons and a variety of activities lined up with what you hope to achieve in the future.

In this regard, reading and studying the lessons should be done sequentially based on their
structure so that the understanding of those written in this module is consistent and seamless.

It is encouraged to read the content of the module thoroughly to understand what should
and not should be done. We aim to make time and be serious about answering and practicing tasks.
Remember that everything you do for this course is recorded and graded accordingly.

It is also important to know that all module activities have a set time or specific date of
submission to your teacher. Avoid being late for “deadlines” to refrain from worrying about this
course. We hope that you will excel in this course and that you will succeed.

If you encounter any difficulty in answering the tasks in this module, do not hesitate to
consult your teacher or facilitator. Always bear in mind that you are not alone. We hope that
through this material, you will experience meaningful learning and gain a deep understanding of
the relevant competencies.

We LEARN as ONE! You can do it!

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Prepared and Compiled by: Mr. Dave Sidney M. Tirones
College of Tourism and Hospitality Management (CTHM)
Tour and Travel Management (TPC 1)
 INTRODUCTORY MESSAGE

Welcome to the Tour and Travel Management (TPC 1) Alternative Delivery Mode (ADM)
Module.

This module was collaboratively designed, developed, and reviewed by educators both
from public and private institutions to assist you, the teacher or facilitator in helping the learners
meet the standards set by the Commission on Higher Education (CHED) Curriculum while
overcoming their personal, social, and economic constraints in schooling.

This learning resource hopes to engage the learners in guided and independent learning
activities at their own pace and time. Furthermore, this also aims to help learners acquire the
needed 21st-century skills while taking into consideration their needs and circumstances.

As a facilitator, you are expected to orient the learners on how to use this module. You also
need to keep track of the learners; progress while allowing them to manage t own learning.
Furthermore, you are expected to encourage and assist the learners as they do the tasks included
in the module.

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Prepared and Compiled by: Mr. Dave Sidney M. Tirones
College of Tourism and Hospitality Management (CTHM)
Tour and Travel Management (TPC 1)
 MODULE FOR TOUR AND TRAVEL MANAGEMENT (TPC 1)
Credits: 3 units lecture (3 hours/week)
Pre-Requisite: NONE

Lesson Title: FUNDAMENTALS OF TRAVEL AND TOURS

Lesson Objectives:

At the end of this module, the learners will be able to:

1. cite the differences between a travel and a tour;

2. discuss the nature and scope of travels and tours;
3. discuss the relationship between travel and tours within the context of the tourism industry;
4. explain the key travel and tour operation terminologies; and
5. compare and contrast the different types of travel and tours.

INTRODUCTION

Traveling and touring have long been important social activities for human beings.
Nowadays, tourists can travel anywhere in the world. There are many choices from attractions to
activities they can do during their visit. The choices for travel are essentially becoming unlimited.
The travel and tour industry has been developing for the past decades. Travel has already been a
passion, but recently, travel has become part of people’s daily lives in all income groups. Traveling
is a great source of revitalization and, for some people, a stress reliever. It also offers various
indoor and outdoor activities that give enjoyment and relax the minds of human beings. The travel
industry is now developing because of the contributions of various sectors under it such as
transportation, accommodations, food and beverage, entertainment, and other related sectors. This
lesson will discuss the nature of travel and tours, their relationship within the context of the tourism
industry, and the different types of travel and tours.

Terminologies of Travel and Tours

Every industry has its language. They use abbreviations or acronyms to save time and
effort. However, everyone who is interested in the industry must know what the acronym or
abbreviation stands for to avoid miscommunication and the feeling of speaking a different
language. Below are the terms used most frequently in the travel and tour industry.

• Domestic Tourism refers to travel taken exclusively within the national boundaries of the
traveler's country.
• FAM Tour is an abbreviation for familiarization tours usually offered to travel agents and
tour operators as complimentary or at a reduced rate to familiarize them with a specific
destination or attraction to stimulate sales.

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Prepared and Compiled by: Mr. Dave Sidney M. Tirones
College of Tourism and Hospitality Management (CTHM)
Tour and Travel Management (TPC 1)
 • Group Inclusive Tour (GIT) is a tour in which the tourist travels with the company of other
tourists.
• Independent Inclusive Tour (IIT) is a tour in which the tourist travels to his destination
individually.
• Independent Tour is a tour in which the tourist buys tourism components (transportation,
accommodation, food and beverage, entertainment, etc.) separately. This can be done in
advance through a travel agent.
• International Tourism refers to travel across international boundaries. It is more difficult
to travel outside one's own country because the country to be visited has requirements such
as passports, visas, and other conditions to be met by tourists.
• Package Tour, sometimes called "inclusive tour," is an arrangement in which tourism
components such as transportation, accommodation, food and beverage, entertainment, etc.
are bought by the tourist at an all-inclusive price.
• Tour Operator organizes package tours and purchases other tourism services such as
transport and accommodation in advance, usually at a lower price because he/she is buying
it in bulk.
• Travel Insurance is an insurance product designed for use by different types of travelers
such as those who travel for business, are visiting relatives, and are students during their
domestic and overseas travel (Wang et al.,2019).

Nature of Travel and Tours

Travel refers to a movement from one place to another. This can refer to short- and long-
distance travel, domestic and international travel, and other various forms. It also includes both
round trips and one-way journeys, with a wide array of travel purposes.

The travel industry, therefore, refers to the several aspects of the service industry which
cater to the needs and wants of the people who have traveled and will travel from different parts
of the world. The travel industry is also called the tourism network. Below is a list of the important
sectors of the travel industry with their descriptions.

Sectors of the Travel Industry

1. Transportation

The main purpose of this sector is to make it possible for people to go from one place to
another. There are many ways to do this, from primitive and simple to modern and complex. This
includes a wide variety of different types of travel including air, land, sea, and railway modes.
Thus, taking note of the amount of time spent from major population centers via each mode of
transportation is important to provide quality service. While the act of getting to the chosen

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Prepared and Compiled by: Mr. Dave Sidney M. Tirones
College of Tourism and Hospitality Management (CTHM)
Tour and Travel Management (TPC 1)
destination and staying there is crucial, the cost of transportation must also be considered
(Aquino,2012).

• Airline Industry – The airline industry is a popular choice among travelers who want
to arrive at destinations quickly. The development of air transportation in the tourism
industry introduced many undiscovered areas to the travel community. It has managed
to increase a significant part of the transportation market in recent years, especially to
destinations farther than 500 kilometers away. A scheduled air transportation system
offers a safe, convenient, reliable, frequent, and consumer-centered service (Basnet,
2015).
• Car Rental – Car rental has been in close connection with airline and railway
transportation since its early years and is considered a similar part of the travel service
industry (Eronen, 2015).
• Water Transport – Water transport is a major factor in tourism and hospitality. An
example of this is the cruise ships which became known in recent years because of the
idea of developing “floating resorts” or “flotels.”
• Coach Services – Buses and coaches are the modes of transportation preferred by those
in any social class to reach their destinations. In the 21st century, buses became a safe,
green, comfortable, and affordable tool for transportation. They cater not only for
intercity lines or long-distance travel but also as charter vehicles for excursions,
corporative trips, or just carrying from an airport or railway station to a hotel and back
(Soloviev,2015).
• Railway – The majority of seasoned travelers prefer to travel by train because of its
safety record and the convenience and satisfaction of viewing the scenery from a
comfortable air-conditioned car. The appeal of rail travel has been further enhanced by
the recent introduction of high-speed trains.
• Spacecraft – Spacecraft is now becoming known as a form of transportation, which is
going to become increasingly influential in the years ahead. The year 2001 marked the
beginning of space tourism as a wealthy California businessman, Dennis Tito, became
the first paying passenger for spaceflight (Britannica Online Encyclopedia, 2013).
Currently, Virgin Galactic remains the only private space tourism company that has
successfully air-launched its SpaceShipTwo vehicle (S. Fox, 2010). However, Virgin
Galactic is not alone in its venture into space tourism as the industry is being looked at
as a lucrative market for many upcoming decades (Seo, 2013).
2. Accommodation

While away from home, the tourist needs to eat and sleep. Sleeping accommodations range
from hotels of international standards to condominiums, campgrounds, and homes of relatives and

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Prepared and Compiled by: Mr. Dave Sidney M. Tirones
College of Tourism and Hospitality Management (CTHM)
Tour and Travel Management (TPC 1)
friends. For a tourist region to succeed, a sufficient quantity of accommodations of the right quality
should be provided, for the tourists.

Appropriate accommodations should always be available for all types of travelers.

Luxurious types of accommodations may be demanded by those who want the best and are willing
and able to pay accordingly. On the other hand, tourists who are budgeted for should have practical
facilities available (Aquino, 2012).

• Hotels – The most popular form of accommodation for tourists, it provides meals and
refreshments for those who may reserve their accommodations in advance but need not
do so. It also provides facilities that meet the needs of modern travelers.
• Shared Accommodation – It is said that Airbnb favors the growth of shared
accommodation. Travelers nowadays use Airbnb as an online platform to rent spaces
for their stay in a destination. This type of accommodation usually includes all the
facilities and amenities of the entire home such as an apartment or a house or just a
room space where the owner/host usually stays.
• Hostels – Hostels provide minimal amenities such as a bunk bed and commonly shared
toilets and bathrooms. They are typically categorized as a budget choice and are usually
provided on a self-catering basis. They appeal mostly to young travelers.
• Camping – This is a type of outdoor accommodation that makes use of a temporary
shelter, usually in the form of a tent. It appeals mostly to families who travel in
recreational vehicles.
• Bed and Breakfast – Bed and breakfast accommodations provide a room, bath, and a
hearty breakfast to tourists. They are known as BnBs.
• Timeshare Accommodation – A timeshare is a modern tourism product that succeeds
in combining tourism and real estate in such a way as to satisfy the ever-changing needs
of the tourist-purchaser. According to the definition by the World Tourism
Organization (WTO) (1996), “Timeshare offers the public the right to enjoy, for a set
period or interval each year, vacation time in an apartment or other type of lodging that
is part of a tourist complex, equipped with a variety of services and facilities.”
3. Food and Beverage

Tourists look for food and beverage services everywhere. It is a significant aspect of
anyone's journey and often shapes one's satisfaction with a trip. In some cases, it is the reason
some people travel.

• Restaurants – A restaurant is a business where people sell food and drinks to customers
in a public place in exchange for money (Han Dian, 2014).

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Prepared and Compiled by: Mr. Dave Sidney M. Tirones
College of Tourism and Hospitality Management (CTHM)
Tour and Travel Management (TPC 1)
 • Catering – The catering industry nowadays plays an important role in the travel and
tourism industry. Like restaurants and take-away outlets, caterers provide products and
services to hotels and airlines. Catering services promote local food and the culture of
the destination through their offerings.
• Bars and Coffee Shops – Bars and coffee shops provide a relaxing atmosphere for
travelers to eat and drink. Bars tend to focus on serving alcoholic and non-alcoholic
beverages. On the other hand, coffee shops tend to focus on serving hot drinks, frappes,
and light snacks. Both environments also provide a place for people to socialize.
• Nightclubs – Nightclubs are establishments that stay open until late at night and offer
food and beverage along with entertainment. Most of them have stage performers and
a spacious dance floor for the customers.
4. Entertainment

Tourists, once arrived at their chosen destination, often look for entertainment, any form
of activity that can satisfy the interest of the tourists during their stay in a destination.

• Casino – A casino is an entertainment establishment that provides people with

opportunities to gamble. It is often connected with hotels, restaurants, resorts, cruise
ships, and other related tourism establishments that are also known for hosting
entertainment such as musicals, concerts, and comedy performances.
• Tourist Information – Travelers usually are overwhelmed with the information and
options they have once they arrive at a new destination. A tourist information center
provides reliable information and resources about the destination. Moreover, it
motivates the tourists to stay longer by feeding them information about what the
destination can offer. In some destinations, tourist information provides a one-stop,
physical location from which travelers can connect with local businesses and services.
It provides a welcoming environment for tourists to learn about the destination's
products and services. Leaflets, brochures, and other promotional materials can also be
displayed in the tourist information center.
• Shopping – Shopping plays an important role in travel and tourism. The majority of
tourists travel to specific parts of the world to experience shopping.
• Tourist Guides and Tours – A tourist guide is an individual who, either as an employee
or an affiliate of a licensed tour operator, accompanies tourists, both foreign and
domestic, for a fee or any other form of lawful remuneration on local sightseeing
excursions to provide pertinent commentary and look after their general well-being.
5. Connected Industries

These are industries that are linked to the travel and tourism industry. They help boost
interest in the travel industry itself. These include companies and businesses that assist to connect
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Prepared and Compiled by: Mr. Dave Sidney M. Tirones
College of Tourism and Hospitality Management (CTHM)
Tour and Travel Management (TPC 1)
travelers with travel and tourism products and local agencies that provide practical support and
assistance for tourists and travelers.

• Foreign Exchange – As Charles Kindle-Berger, an economic historian, put it, “A

foreign exchange market is a place where foreign money is bought and sold.” The
foreign exchange market is an institutional arrangement for buying and selling foreign
currencies. It is especially important when we travel because it is the only way to
transact in a foreign land, be it paying for cab fare or just buying a meal.
• Travel Agents – Travel agents are middlemen that act as intermediaries between
suppliers and tourists. They sell tourist products and receive a commission from the
supplier as their income.
• Tour Operators – Tour operators are wholesalers of tourist products. They produce tour
packages which usually compose of complete itineraries from transportation,
accommodations, food, and beverage, as well as entertainment and the service of a tour
escort or tour guide.
• Online Travel Agencies – An online travel agency (OTA) is very much like the
traditional travel agency when it comes to its role, only that it uses the internet as its
main source of operation. They both connect with tourists to sell travel products and
services on behalf of the suppliers.
• Tourism Organizations – Tourism organizations could be government and
nongovernment units as well as tourism councils which are usually composed of the
different tourism sectors. Their main purpose is to support the interests of the tourism
industry.
• Educational – The educational subcategory includes academic institutions and tourism
organizations that organize or sponsor activities like seminars, conferences,
exhibitions, training, and tourism skills competitions.

Types of Tours

1. Independent Tour is a tour in which the tourist buys tourism components (transportation,
accommodation, food and beverage, entertainment, etc.) separately. This can be done in
advance through a travel agent.
2. Escorted Tour is a tour in which tourists are accompanied by a tour director or tour
manager who arranges everything and takes charge of the entire tour from the beginning
until its completion. Tourists who avail of this kind of tour are not familiar with the
destination they are visiting.
3. Hosted Tour is a tour where tourists are accompanied by a tour guide once the tourists
arrive at the destination region. It is called a “hosted tour" because the tour operator usually
acts as the host to the tourists during their stay.
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Prepared and Compiled by: Mr. Dave Sidney M. Tirones
College of Tourism and Hospitality Management (CTHM)
Tour and Travel Management (TPC 1)
 4. Incentive Tour is given to employees as a reward for their excellent performance in
achieving the company's or organization's goals. The expenses of this tour are paid or
sponsored by the company or organization.

Key Concepts:

• Travel Industry – The travel industry is composed of businesses that provide services
needed by travelers or tourists when they travel from one place to another. This industry
includes transportation, accommodations, food and beverages, services of a travel agency
and tour operator, foreign exchange, entertainment, etc.
• Travel Services – These are services provided by tour operators and travel agents that have
something to do with the tourists' travel such as ticket reservation, booking, or both, for
local and international, for air, sea, railroad, and land travel. It also includes reservations
for accommodation and other tourism components such as food and beverage,
entertainment, etc.
• Tour Operation Business – This is a type of travel business that assembles tourism products
from different suppliers to create a complete tour package and sells it to the tourists directly
or through travel intermediaries.

REFERENCES:

Herrera, M., Dondi, F., and Tugade, L. (2022). Tour and Travel Management. Sampaloc, Manila;
Rex Book Store Inc. (RBSI)

Po, S. (2021). Tour and Travel Management. 1633 Laguna St., Cor. Oroquita, Sta. Cruz, Manila;
EDRI Publishing House

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Prepared and Compiled by: Mr. Dave Sidney M. Tirones
College of Tourism and Hospitality Management (CTHM)
Tour and Travel Management (TPC 1)
MODULE FOR TOUR AND TRAVEL MANAGEMENT (TPC 1) 3 units lecture (3 hours/week) NONE

Credits: Pre-Requisite:

Lesson Title:

HISTORICAL PERSPECTIVE OF TRAVEL AND TOURS

Lesson Objectives:

At the end of this module, the learners will be able to:

1. discuss the development of the travel agency business in the world,

2. discuss the involvement of Thomas Cook in the growth of the travel agency business;

3. explain the various stages and turning points in the history of the global travel agency business; and

4. cite different milestones in the history of the global travel agency business.

INTRODUCTION

The travel industry already existed way back in the early years of the 19th century, but it was not the
same as what we have to date as we now have a system through travel agencies and tour operations
businesses. Throughout history, people traveled from one place to another for different purposes such
as trade and religious travel. Cox and Kings and Thomas Cook play a vital role in the evolution of the
travel agency and tour operations business.

Historical Background of Travel Agency and Tour Operation

The travel agency industry is a wide-range business in the world that has developed significantly over
the years. It is very fascinating to learn how travel agencies have evolved over the years with the very
first modern travel agency appearing in the 19th century. People must not forget that the travel agency
industry keeps moving forward and is starting to embrace modern business by using technology in every
transaction (Feldman, 2015).

Modern tour operators are organizations, companies, or private entities that cater to travelers by
organizing group tours and independent travel packages. They started way back in the mid-19th
century, and most likely in the past, they were the ticket agents for steamship lines and railroads. Aside
from selling these products, the agents were also tasked to develop or create itineraries and do
reservations for accommodations of their well-to-do clients. With the developments in the travel agency
industry, a more organized business of selling package tours to groups of travelers started to grow. It
was in the 1930s that tour wholesaling continued to grow. However, the growth in the industry did not
last long. Due to the lack of transportation, travel became costly, hindering development in the industry.
It was not until the post-World War II period, beginning with the late 1940s and early 1950s did the
turning point for the tour operator
industry come. Most people in the middle class were encouraged to travel with the introduction of
modern long-range commercial aircraft and the development of the interstate highway system, which
made traveling more comfortable and convenient.

In addition to this, there was also a growth in the number of low-cost airlines, easy access to airport
terminals, and the ability to travel more cheaply. Thus, more people were encouraged to travel from
one country to another country. With the help of the media, more people were encouraged and
developed a high interest in travel, which helped tour operation businesses gain success
(CruiseJobFinder, n.d.).

Today, there are numerous tour operators in different parts of the country. Most of them operate as
wholesalers and sell their packages through travel agents or directly to clients over the Internet. Even
now, when the travel industry works with the power of the internet, where travelers can more readily
create their itineraries, the services of tour operators and travel agencies are still necessary for tourists
to obtain the most remarkable experience during their journey.

Cox and Kings is the oldest established travel company in the world. It started in the 18th century on
May 25, 1758. Richard Cox was appointed the regimental agent to the Foot Guards by his mentor, Lord
Ligonier, the commander-in-chief of His Majesty's Armed Forces. Because of Cox's interest and
dedication to his work, Cox and Co. became a reputable business and grew to be a major agent of British
regiments.

In 1923, Cox and Co. were sold to Lloyds Bank and became Cox and Kings, a shipping company that
operates and organizes travels and tours for their passengers.

In 1970, Cox and Kings Agency became popular and contributed to the growth of the tourism industry in
India. It specialized in cultural and wildlife tours throughout the country. In the 1980s, the company
developed the same concept of travel and tours that catered to Latin America, the Middle East, Africa,
and far eastern Europe.

During this modern age of travel and tours, Cox and Kings is continuously becoming more and more
popular and developing more modernized travel and tour packages that cater to the different parts of
the world.

Thomas Cook and His Contribution to Tour and Travel Management

Thomas Cook established the first travel agency in the world in England in the year 1845.

In 1841, the history of travel trade began when Cook organized a trip by train for 570 members of his
association to a distance of 22 miles. What he did to organize such a trip was to buy railway tickets in
bulk and sell them to people, especially those who are interested in traveling.
The trip was successful, and everybody was delighted. It was a no-profit trip for Cook until he realized
the impact of the trip. This gave him the idea of turning the success of the journey into a tour business.

In 1845, he made up his mind to set up a travel business that was known as the "World's First Travel
Agency" to organize excursions. Due to this pioneering approach, Cook became known as the father of
the travel agency business. He also started to organize railway and steamship excursions throughout
England, Scotland, and Europe.

However, the railways and steamship excursions only gave him a 5%commission, which was not enough
to meet his expenses, so he decided to expand his existing business into tour operations.

In 1855, Cook started to create package tours and offer them to the public. He conducted the world's
first international tour from England to Paris (Tourism Notes, 2018).

Establishment of the Modern Travel Agency

In 1845, Cook organized the first mass tour across England. The trip is not just traditional travel; he
incorporated special activities and entertainment during the tour. The railway journey was from
Leicester to Nottingham, Derby, and Liverpool, and he made some profits from this trip. It was this year
also that marked the beginning of the establishment of the first modern travel agency in the world.

In 1851, Cook's travel business further progressed when Sir Joseph Paxton, architect of the Crystal
Palace, convinced him to organize package tours, bringing workers from Yorkshire and the Midlands to
London for the Great Exhibition. Cook did not hesitate and took the opportunity, leading to another
success in his travel business.

Travel Innovations

As Cook's travel business became more and more successful, more developments in the services were
being introduced to the travelers, one of which was hotel coupons, first introduced in 1868 to help
customers enjoy hassle-free check-in procedures in hotels. The hotel coupon can be used for room
reservations, purchase of hotel food, and availing of the services of the hotel for transport and
entertainment. The hotel benefited from this coupon by receiving bulk numbers of advanced bookings.
In return, Cook received commissions from hotels as both maintained accounts of their periodic
transactions.

In 1874, Cook introduced the Circular Note. This was used during that time by travelers for their safety
during travel. A circular note is the counterpart of today's traveler's cheque. It was
not only accepted in hotels but could also be used for restaurants and transport services in major cities
in the Europe and USA.

Package Tours for the Middle Class

During the mid-19th century, middle-class people started to experience increased income and
consumption. Cook took the advantage of this impact to further develop the travel industry. He thought
of developing a customized packaged tour designed to suit the needs of this market. To make this
package tour more affordable to the new market, Cook negotiated with hoteliers to provide rooms and
meals at good prices. Those middle-class customers demanded to visit destinations in Switzerland and
Italy.

Great Journey

In 1869, Cook and his company succeeded in traveling across the Atlantic Ocean by steamship to
discover new points of interest for his travel business. The trip was made possible by traveling to Egypt
via China, following the opening of the Suez Canal and the completion of a rail network linking the east
and west coasts of America.

In the same year, he conducted his first party trip up the river Nile with the help of two steamers. At the
age of 63, he planned for a Round-the-World Tour from Leicester in 1872. He and his companions
traveled from New York to San Francisco by rail. They cruised to Japan and then to China across the
Inland Sea. He visited Singapore, Ceylon, and India. While leaving Mumbai (then Bombay), they crossed
the Indian Ocean and the Red Sea to Cairo. He traveled back to London from Cairo, Egypt.

After the trip, Cook decided to extend his tour by himself and travel to Egypt and Palestine. Finally, he
returned home after traveling through Turkey, Greece, Italy, and France. It was a 222- day world tour.
For Cook, his achievement was not just a world tour but also his learnings for his travel business.
Traveling to different parts of the world brought him first-hand information about places of interest,
cultures of the countries, ways of living of the different nationalities in the world, knowledge of up-to-
date facilities and amenities of travel components, etc.

Key Concepts:

1. Free Independent Travelers (FIT) - These are travelers who organize their tours and choose to travel
alone or in small groups. They pick their destination, meal arrangements, and activities for their travel.

2. Travel Trade- This is the buying and selling of travel products that are either sold directly to
consumers or other tour operators and buyers. It is a distribution network for travel. Products include
accommodations, attractions, transportation, food, beverage, etc.
The Philippine Tourism industry caters to the needs of foreign and domestic travelers. (Overnight stay,
tourists, pilgrims, delegates, students, etc.)

The Department of Tourism (Kagawaran ng Turismo) is the executive department of the Philippine
government responsible for the regulation of the Philippine tourism industry and the promotion of the
Philippines as a tourist destination.

Government Sectors

Its primary function is to impose the allocation of resources that will help in making effective economic
decisions.

a. Department of Tourism (DOT)

DEPARTMENT

OF

TOURISM

PHILIPPINES

The Department of Tourism (DOT) is the primary planning, programming, coordinating, implementing,
and regulatory government agency in the development and promotion of the tourism industry both
domestic and international in coordination with its attached agencies and other government
instrumentalities. It shall instill in the Filipino the industry's fundamental importance in generating
employment, investments, and foreign exchange".

As summarized (from 19) stated powers and functions of DOT:

a. Formulate, coordinate, implement, and supervise tourism policies, plans, and projects for the
development of tourism as an engine of socio-economic and cultural growth; and in consultation with
LGUs, the private sector industries and other industry stakeholders, rules and regulations governing the
operation and activities of all tourism enterprise. b. Support, advance and promote the protection,
maintenance, and preservation of historical, cultural, and natural endowments in cooperation with the
appropriate gov't agencies and private sector; and take appropriate measures against acts or omissions
contrary to these objectives.

c. Provide an integrated marketing program and represent the government in all tourism conferences
and enduring the government compliance and obligations arising from these.
d. Evaluate tourism development projects for the issuance of permits and the granting of incentives by
the appropriate government agencies, and encourage private sector investments and participation in
tourism-related projects.

e. Provide technical issuance to the LGUs in destination development, standards setting, and regulatory
enforcement; and monitor the LGUs' compliance to national standards in the licensing of tourism
enterprises; and

f. Perform other public sector services to the tourism industry such as tourism research and studies,
compilation and integration of data, facilitating the process of obtaining travel documentation and
monitoring conditions on any destinations, and issuing timely advisories on the safety or viability of
travel.

b. Philippine Tourism Promotion Board (PTPB)

The Philippine Tourism Promotions Board (PTPB) is an attached agency of the Department of Tourism
which is primarily responsible for implementing an integrated domestic and international promotions
and marketing program for the Philippines as a tourism destination as well as for tourism investments.

Mandate

TPB PHL

TOURISM PROMOTIONS BOARD PHILIPPINES

a. The TPB shall be responsible for marketing and promoting the Philippines domestically and
internationally as a major global tourism destination, highlighting its uniqueness and assisting the
development of its tourism products and services, with the end view of increasing tourist arrivals and
tourism investment. Specifically, it shall market the Philippines as a major convention destination in
Asia.

b. To this end, it shall take charge of attracting, promoting, facilitating, and servicing large-

scale events, international fairs and conventions, congresses, sports competitions, expositions, and the
like. It shall likewise ensure the regular advertisement abroad of the country's major tourism
destinations and other tourism products, not limited to TEZs. It may also provide incentives to travel
agencies abroad which can draw tourists and tourism investments to the country.
Functions

The Tourism Board shall have the following powers and duties:

a. Organize the PTPB in a manner most efficient and economical for the conduct of its business and the
implementation of its mandate.

b. Develop and implement a plan to market the Philippines as a premier tourist destination. c. Direct and
coordinate the resources and efforts of the government and the private sector in the tourism and allied
fields for the full realization of the tourism marketing plans and programs.

d. Develop and promote the Philippines as a center for international meetings, incentive programs,
conventions, exhibitions, sports and wellness, medical tourism, and other special

events.

e. Engage in the business of tourism and perform acts in consonance therewith, such as but not limited
to, creating subsidiaries in support of its marketing functions in partnership with the private sector; as
well as attending conventions and other events abroad in the representation of the country,
encouraging sales promotions and advertising, and implementing programs and projects to promote the
country and entice tourists to visit its tourism destinations and to enjoy its tourism products;

f. Contract loans, indebtedness, and credit, and issue commercial papers and bonds, in any local or
convertible foreign currency from international financial institutions, foreign government entities, and
local or foreign private commercial banks or similar institutions under terms and conditions prescribed
by law, rules, and regulations;

g. Execute any deed of guarantee, mortgage, pledge, trust, or assignment of any property to finance the
programs and projects deemed vital for the early attainment of its goals and objectives, subject to the
provisions of the Constitution (Article VII, Section 20 and Article XII, Section 2, paragraphs (4) and (5));

h. Receive donations, grants, bequests, and assistance of all kinds from local and foreign governments
and private sectors and utilize the same.

i. Extend loans through government banks and financial assistance for manpower training, heritage
preservation, infrastructure development, and other programs of the Department.

j. Obtain the services of local and foreign consultants and enter contracts locally and abroad in the
performance of its functions; and

k. Perform all other powers and functions of a corporation.

Branding Campaign

The operationalization of Philippine tourism's new marketing branding campaign "It's More Fun in the
Philippines" led TPB's flagship projects during the period. This branding exercise
marked the start of a more focused and cohesive approach to the promotion of Philippine tourism,
internationally and domestically. In the succeeding months following the launch in January 2012. DOT-
TPB, along with BBDO Guerrero as a creative agency, BBDO Proximity as a website/social media
developer, CTV as a production company and Dents Philippines as Media Planning and Placement
Agency, produced generic advertising materials such as 5 versions each of 15s and 30s TVC's (including
CNN), 7 versions of 3-minute AVP's, 12 photo layouts for print and OOH options and, Radio Ads.

The ASEAN Tourism Forum (ATF) in Manado, Indonesia, and the International Tourismus Borse (ITB) in
Frankfurt served as the launching pads of the Philippine tourism branding campaign for the Asia and
European markets, respectively.

Media Planning

Transmitting the messages to the various target publics entails the review of the available distribution
channels. The following project proposals were evaluated based on TPB's mandate, corporate
plan/Strategic map, Market brief, and Media plan:

Digital Campaign

With BBDO Proximity, in September 2012, the TPB launched the website
www.itsmorefuninthephilippines.com. The TPB intends to develop this website into a dynamic and fun
site that will not only provide information on destinations but will also be a site for Business to Business
(B2B) and Business Consumers (B2C) transactions, social networking platforms such as Facebook,
Twitter, and YouTube as well as fun-filled web-based promotional activities. This project has a budget of
18 million pesos.

Special Promotions Projects

TPB implemented nine (9) major programs and projects such as the Pinoy Homecoming Program,
Calendar of Events, and the Philippine Heritage Capital. The Philippines' hosting of the PATA Travel Mart
2012 was one of the major international events held in Manila that TPB handled.

• The Tourism Infrastructure and Enterprise Zone Authority

Republic Act No. 9593 or "The Tourism Act of 2009" declares a national policy for tourism as an engine
of investment, employment, growth, and national development, strengthening the Department of
Tourism and its attached agencies to implement that policy effectively and efficiently, and appropriating
funds thereof. The Act supports the establishment of Tourism Enterprise Zones (TEZS) which will
contribute to the accelerated creation of employment
opportunities by encouraging and supporting investments in the development and operation of

these zones.

INFRASTRUCTURE

AND

ENTERPRISE

ZON

LONE AUTHORITY

TOURISM

TIEZA

The Tourism Infrastructure and Enterprise Zone Authority or TIEZA (formerly Philippine Tourism
Authority), an attached agency to the Department of Tourism, is an agency of the Philippine national
government under the Department of Tourism responsible for implementing policies and programs of
the department pertaining to the development, promotion, and supervision of tourism projects in the
Philippines, is mandated to:

a. To designate, regulate, and supervise tourism enterprise zones established under R.A. 9593 b. To
develop, manage and supervise tourism infrastructure projects nationwide

c. To provide technical and financial assistance to qualified tourism projects, investors, and proponents
(both government and private)

d. To generate revenues to fund both national and corporate developmental needs and/or undertakings

e. To exercise PTA functions under P.D. 564.

The TIEZA is governed and its powers exercised by a Board of Directors (TIEZA Board) composed of The
Department Secretary, The TIEZA Chief Operating Officer, The Tourism Promotion Board Chief Operating
Officer, the Department of Public Work and Highways Secretary, the Department of Environmental and
Natural Resources Secretary, the Department of Internal and Local Government Secretary, and five (5)
representative directors that will be recommended by the Tourism Congress.

. Duty Free Philippines Corporation

DUTY FREE Philippines

Duty Free Philippines Corporation is a government corporation that operates the duty tax- free
merchandising system in the Philippines to augment the service facilities for tourists and returning
Filipino travelers to generate foreign exchange and revenues for the government. The followings are the
powers and functions of Duty Free:

a. Exclusive authority to operate and/or franchise out the operation of stores and shops that sell duty
and tax items in international air and seaports and TEZ.

b. Authority to operate stores within the international air and seaports

c. Operate without any prejudice to any privatization in the future.

Tourism Coordinating Council

Serves as the coordinating body for the national tourism development effort.

Functions of the Tourism Coordinating Council

• Prepare a five-year (5) strategic plan to develop and enhance a culture of tourism

Approve the annual tourism infrastructure programs that shall promote access to and from air and
seaports, and TEZ and other tourism destinations

Create committees and technical working groups in pursuit of their functions.

The Local Government Units

The LGU is empowered to regulate the establishment and operation of travel agencies in the context of
the stated paragraph:

"Regulate the establishment, operation, and maintenance of cafes, restaurants, beerhouses, hotels,
motels, inns, pension houses, lodging houses, and other similar establishments, including tourist guides
and transports"

Responsibility of LGU Tourism Officers

• Preparing, implementing, coordinating, monitoring, and updating local tourism development plans,

• Ensuring the enforcement of tourism standards, laws, rules, and regulations.

Submission of regular tourism-related reports

Coordination with the department and its attached agencies in the development and promotion of
tourism in the locality.
15 Best Places to Visit in the Philippines
planetware.com/philippines/best-places-to-visit-in-the-philippines-phi-1-13.htm

Written by Anietra Hamper

The Philippines is a destination that is easy to visit multiple times due to its more than 7,000
islands. The most difficult decision you make as a traveler, is figuring out which places to visit
first. The Philippines is divided into the three main island groups of Luzon, Visayas, and
Mindanao, representing different regions in the country.

The scenery in each region of the Philippines ranges from mountainous and tropical to
metropolitan. You can enjoy a day of walking the historical colonial streets of the capital city
of Manila or catch a rare glimpse of tiny tarsier monkeys at a private sanctuary on the island
of Bohol. The steep, plush mountains provide unforgettable hiking experiences.

Since you are surrounded by the Pacific Ocean, it's not surprising the Philippines has some
of the best beaches in Asia, and the scuba diving opportunities are outstanding.

Plan your travels around this tropical island nation with our list of the best places to visit in
the Philippines.

1. Boracay

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 Boracay

There is a reason that Boracay Island is considered the beach capital of the Philippines
because there are more than 12 beaches. This tiny island in the west Visayas region is ideal
for beach-goers who are after simple relaxation in the sun or water activities. White Beach,
on the west side of the island, is one of the best beaches in the Philippines.

Puka Shell Beach is on the tip of the island and is a favorite spot for shell collectors.
Cagban Beach is a quiet spot with nearby caves that are rumored to still contain treasure
chests. Diniwid Beach is a tiny beach at the north end of White Beach that has the best
view of the island from a platform rock located there.

This island is known for its many resorts, so finding a place to stay is easy. For a panoramic
view of the island, take a day trip to Mount Luho, its highest point.

2. Bohol

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 Tarsier

The island of Bohol in the Philippines' central Visayas region runs at a slower pace, and it's a
destination that showcases the country's natural beauty. One of the most unique natural
wonders on the island is the Chocolate Hills in Carmen. This UNESCO-protected site is a
collection of 1,200 geological formations that turn brown in the dry season, resembling a
landscape of chocolate candy kisses.

Bohol is home to a family-owned sanctuary for the tiny tarsier primate, known for its large
engaging eyes. For a small fee, you can take an intimate walk through the grounds, and
stand inches away from the small nocturnal mammal.

The top draw of Bohol is the beach. Panglao Island features some of the best beaches in
Bohol: Alona Beach and Danao Beach, which have fantastic diving; Dao Beach and
Bingag Beach, which are popular resort areas; Bolod Beach, which has a large stretch of
shoreline; and Doljo Beach, which is fairly remote but fantastic for finding seashells.

3. Cebu

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 Snorkeling with a whale shark

The island of Cebu, in the central Visayas region, is considered the port to some of the best
diving and snorkeling in the Philippines. If you are an underwater enthusiast, Cebu is one of
your best options for excursions that get you up-close to whale sharks, coral reefs, and sea
turtles.

Some of the most spectacular scenery from the water near Cebu are the sea caves that
attract photographers and outdoor enthusiasts looking for unique diving and snorkeling sites.
The Sudlon National Park, located approximately an hour from Cebu City, is a breathtaking
park to explore and hike.

While Cebu's greatest draw is its water, Cebu City is a metropolitan area, with tourist
attractions like museums and cathedrals that will interest history buffs.

4. Banaue

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 Banaue

The rice terraces of Banaue are one of the most striking things to see in the Philippines. The
emerald-green terraces are an agricultural wonder in this area. Some of the terraces are
estimated to have been hand-carved into the mountainside more than 2,000 years ago.

The Batad Rice Terraces and the Bangaan Rice Terraces are protected UNESCO World
Heritage sites.

For a deeper taste of this region, take a stroll through the Banaue Ethnic Village or the
Hiwang Village to mingle with the Indigenous people who farm the rice terraces.

Your most impressive view of the terraces is at sunrise, when clouds and fog lift off the
mountain to reveal the intricate landscape of the terraces. You can base yourself in the town
of Banaue and hike or drive to the Batad rice terraces, or arrange a stay in a native hut of the
Ifugao people for a more authentic experience.

5. Vigan

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 Bantay Bell Tower in Vigan

The historical city of Vigan in the northern Philippines is one of the most charming towns to
visit in the Luzon region. Its culture is a fusion of Chinese and Spanish influences originating
from settlers to the area.

Take a ride in a horse-drawn kalesa through the streets and admire the colonial architecture,
courtesy of the Spanish who colonized the area in the 18th century. Vigan is a city with many
nuances to explore.

The best view of the area is from the Bantay Bell Tower, which is also a noted landmark in
the area. The Calle Crisologo historic district is a walkable district, where you will encounter
many local craftsman and see historical architecture.

A visit to the St. Paul Metropolitan Cathedral is breathtaking and a perfect spot to sit and
people-watch as you take in the local culture.

6. Manila

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 Jeepney in front of the Minor Basilica of Saint Lorenzo Ruiz, Manila

The Philippines capital of Manila, on the island of Luzon, is a bustling city with non-stop
activity. Hop on board one of the colorful jeepneys, the main form of public transportation, to
get a taste of local life while you visit Manila's top attractions.

Usually over-packed with locals, the bumpy ride through the streets on the iconic and kitschy
jeep/bus hybrid vehicles will be one of the highlights of your visit.

Plan stops to the main park in the city, Rizal Park, and the San Agustin Church, which was
built in the 16th century. Buy local fruits and handmade gifts at the public market at Quiapo
Church, where you are likely to see several thousand people show up on Fridays for
worship.

7. Davao City

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 Philippine eagle

For a city scene outside of Manila, head to Davao City, which has a large metropolitan area.
Davao City is the main city in the southern Philippine region of Mindanao.

Despite its malls and large population, Davao City features many natural elements, including
the Eden Nature Park, Philippine Eagle Center, and the Davao Baywalk near the sea.

One of the best places to visit in Davao City is Mount Apo, the highest mountain in the
Philippines. Davao City is a prime location for shopping, as there are several large malls,
including Abreeza Mall and SM Lanang Premier Mall. For a peek into Davao City history
and culture, the tiny Davao Museum of History and Ethnography is worth a visit.

8. Sagada

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 Hanging coffins of Sagada

One of the most unique experiences you can have in the Philippines is in the northern tribal
region in Sagada. Nestled in the rugged and remote Cordillera Mountains are tribes that
embrace the occasional visitor.

This area is a paradise for the advanced outdoor enthusiast. The steep mountains and high
elevation enhance the thrill and skill level required for outdoor adventure. Hiking is popular in
Sagada, particularly to Mount Ampaco, which has the highest peak in the region or through
Echo Valley, which has steep and rugged terrain.

One of the best places to visit in this region of the Philippines is the hanging coffins that
hide deep in the mountains. It is best to connect with a local guide to take you to this
incredible site because this is not a tourist area, but rather an authentic tribal region hiding
an experience worthy of bragging rights.

9. Coron Island

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 Coron Island

One of the top diving destinations in the world, Coron Island is a tropical paradise, with
electric blue and green water that almost seems unreal. The mountainous island sits on the
tip of the Palawan island region, the western-most section of islands in the Philippines.

The island is popular for diving because of the numerous wrecks here. Many of the
preserved shipwrecks are located in depths ranging from shallow water at just three meters
to deep water at 42 meters.

Some of the wrecks require more than one dive to explore due to their size, but you can
easily spend a week diving in this area. For non-shipwreck diving, check out Barracuda
Lake, a former volcano with many unusual rock formations and fish.

10. Baguio

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 Baguio

Baguio is a city tucked away in a mountainous region on Luzon Island. Though it is a city,
Baguio is intimate and reminiscent of a cottage-type environment. Baguio is called the City of
Pines for the rich pine forests and cooler temperatures that surround it.

You can explore one of the many hiking and biking trails or take in a round of golf at one of
the resorts in the area. Baguio is unique to other destinations in the Philippines because the
city is surrounded by trees and not water.

Parks like Mines View and Burnham let you enjoy some of the flora and fauna that are
special to this region. Be sure to spend some time along Session Road, which is the main
drag through Baguio, where you can take in a slice of local life.

11. Puerto Princesa

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 Puerto Princesa

The rock islands, caves, and natural parks of Palawan Island are the hidden paradise of the
Philippines. The coastal city of Puerto Princesa is where you should base yourself in order to
explore some of these natural gems of the country.

The Subterranean River National Park is a great first stop to see a five-mile underground
river and impressive limestone caves. The UNESCO World Heritage site has boat tours that
take you through the national park.

Other must-see spots in Puerto Princesa are Honda Bay, which is popular for snorkeling,
and Ugong Rock, where you can try ziplining and caving.

12. Samal

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 Samal

On Samal Island, also called Garden City of Samal, hiking, diving, and kayaking are a way of
life. One of the top things to do on Samal Island, besides relaxing at the beach, is visit the
Monfort Bat Sanctuary, which is home to millions of bats in the caves.

An enjoyable day trip away from the beach is to Hagimit Falls, where you can walk on the
nature trails and cool off in one of the pools below the tropical waterfalls. Samal Island is a
short distance away from Davao City, which makes a great change of pace when you want a
more metropolitan scene or a broader range of dining.

13. Apo Island

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 Sea turtle in the waters off Apo Island

If a swim with sea turtles sounds like the experience of a lifetime then you will want to head
to Apo Island in the Philippines. The reason this location lends itself to swimming with turtles
and other sea life is because of the protected marine sanctuary. The Apo Island Marine
Reserve is where you can take guided trips to see the sea turtles up close and snorkel at the
coral reefs.

The island is an eco-traveler's dream. The protected landscape is some of the most
untouched in the country. For great views of the island and the water go to the Apo Island
View Deck. To get a sense of life on the island for the locals take a stroll on the Lagoon
Trail through the Apo Village to see the local flora and fauna and engage with those who
live on the island.

14. El Nido

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 Aerial view of El Nido, Palawan, Philippines

El Nido is a stunning place to visit in the Philippines for its clear water lagoons, marine life,
coral reefs, and limestone cliffs. You can even take part in cliff climbing excursions, or go to
Taraw Peak to experience a canopy walk with the best views of the landscape.

El Nido is also known for its pristine beaches, like Nacpan Beach and Lio Beach, and as
the launch point for island-hopping adventures. Island hopping excursions to places like El
Nido Big Lagoon or Snake Island to experience the cliffs and caves from the water are a
memorable way to experience El Nido.

15. Siargao

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 Wooden walkway for surfers to access the Cloud 9 surf break on Siargao Island

Travelers that enjoy making an itinerary up as they go should put Siargao Island on the
agenda. The small island is big with experiences, from sought-after surfing waves to unusual
rock formations and stunning waterfalls.

Surfing is what Siargao is most known for. The famous Cloud 9 break is here, but there are
many coastline spots that bring in large waves. So, even if you do not surf, watching some of
the championship surfers that come to the island is a fun activity.

Deep sea fishing is popular out of Siargao as anglers try year-round for sailfish and mahi-
mahi. Another trip option when you visit Siargao is to do a bit of island hopping to places like
Bucas Grande, where you can see the Sohoton Caves and the non-sting jellyfish.

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 MODULE FOR TOUR AND TRAVEL MANAGEMENT (TPC 1)
Credits: 3 units lecture (3 hours/week)
Pre-Requisite: NONE

Lesson Title: ROLES OF TRAVEL AGENCIES AND TOUR OPERATORS

Lesson Objectives:

At the end of this module, the learners will be able to:

1. explain the natures of a travel agency and a tour operation;

2. differentiate between a travel agency operation and a tour operator;
3. identify the different types of travel agencies and tour operators;
4. discuss the role of travel agencies and tour operators in the tourism industry; and
5. identify the emerging technology in the operations of travel agencies and tour operators.

INTRODUCTION

In the travel industry, travel agencies and tour operators play an essential role. They are the
ones who are responsible not only for selling and promoting tourism products and services but for
also producing them. They are also involved in the development of these products for the
satisfaction of the tourists' demands. Regarding the process of developing tourism products, both
the travel agencies and tour operators contribute to the entire process before they can be patronized
by tourists. It is the role of travel agents to develop and create tour packages of all types and offers
them to tourists (Tourism and Travel Services, n.d.).

Travel Agency and Its Nature

A travel agency is a type of business that acts as an intermediary or middleman between

the tourism products' suppliers and the tourists/travelers. One of the main functions of this business
is to market and promote all types of tourism products and services which includes tour packages,
accommodations, transportation, and other components of the travel industry (Goeldner & Ritchie,
2003). Travel agencies are private entities that could operate as sole proprietorships, partnerships,
or corporations.

The travel agency is considered one of the most essential businesses in the tourism industry.
As stated above, it plays an important role in the entire process of developing and creating tourism
products and services. It normally creates itineraries for all-inclusive tours and offers them to
tourists. With this, the travel agency is also known as the "image builder of a country"
(TourismNotes, 2018).

Another service offered by the travel agency business, aside from offering package tours,
is the service of arranging tourism sectors such as ticketing and booking and reservation for air,
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College of Tourism and Hospitality Management (CTHM)
Tour and Travel Management (TPC 1)
rail, land, and sea travel. They also assist and arrange travel documents such as passports, visas,
and other documents required to travel. They can also secure travel insurance and foreign currency
for their clients (TourismNotes, 2018).

The travel agency is an axis of tourism. Tourism activities revolve around travel agencies.
In the definition of tourism as "the movement of people from one place to another," the travel
agencies generate the movement. With this, we can say that a travel agency is a generator or creator
of tourism. It plays a vital role in tourism as the brain in the human body. Without travel agencies,
tourism will have no joint effort, no planning, and no programming. In the present context, we
cannot imagine tourism without the travel agencies that join them together to form a travel
industry.

A travel agency is a commission agent. It makes agreements with different service agencies
and develops products and sales for customers to gain profit or to collect commission. Facilitating
the tour of a traveler is the objective of a travel agency. Travel agencies are the organizations that
make arrangements and schedules for travel. They help a great deal in saving time for the tourists;
they keep close direct living contact with all tourist service producers. They provide quality
services to tourists; they coordinate between enterprises and customers. They collect commission
or service charges for coordinating work. They are the bridge that fills the gaps between the
customer and service agencies and the facilities they provide. They stimulate and motivate people
to travel.

A travel agent is someone who acts as the direct contact of a traveler or tourist who is
seeking assistance and planning to visit a certain destination through a travel agency. He/She
arranges tours according to the needs and wants of the tourists. In the same as a tour guide, travel
agents could also specialize in a certain type of tour such as adventure travel, educational tour,
cruising, pilgrimages, etc.

Some travel agents work permanently and are associated with a travel agency business
while others work as freelancers (go2HR, 2014). Aside from providing consultation services and
entire travel packages, travel agents simplify the process of planning a trip for their customers.
They may book transportation such as flights, car rentals, cruises, and hotels for accommodations
and other events. Travel agents cater to a wide sector of the tourism market, serving both
individuals and corporations. They may also concentrate on a special segment of the field such as
leisure travel and business trips.

Tour Operator and Its Nature

A tour operator is an organization, firm, or company that buys travel components

individually and combines them into a package tour to be sold to their direct customers or through

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Prepared and Compiled by: Mr. Dave Sidney M. Tirones
College of Tourism and Hospitality Management (CTHM)
Tour and Travel Management (TPC 1)
a tourism channel. Tour operators are also known as manufacturers of tourism products and
services as they are responsible for delivering and performing all the products and services
included in the packaged tour they offer to their customers.

Tour operators are sometimes also called wholesalers because they buy goods and services
in bulk to prepare a tour package and then retail it through travel agencies or directly to their
clients. Tour operators generally offer a variety of tour packages to provide the needs and want of
different types of tourists and travelers.

Definition of Tour Operators

According to Pother (1993), the "tour operator has the responsibility of putting the tour
ingredients together, marketing it, making reservations, and handling actual operation." Holloway
(1992) stated that one of the main functions of tour operations is to purchase products and services
of the travel industry, put them together to create a new product-a package tour--and sell them to
the tourist directly or indirectly.

Tour operators nowadays are becoming very competitive. They try to attract great numbers
of travelers, both domestic and international tourists. The success of the tourism industry, mostly
in developing countries, depends on the performance of the tour operators on how they market and
promote the countries' tourism products and services.

Functions of Tour Operators

A tour operator provides the most convenient option for tourists to travel to and enjoy their
stay in their chosen destination. A tour operator, most of the time, owns businesses within the
tourism sector such as transportation, accommodations, and food and beverage. As cited in
TourismNotes (2018), some of the most important functions of tour operators are the following:

1. Planning a Tour

The tour operators assist the travelers to plan the most memorable experience that they
could have during travel, which includes the making of an itinerary for their chosen destination.
They also offer different types of tour packages from which the tourists may choose.

2. Creating Tour Packages

One of the main functions of tour operators is the development of tour packages. They
purchase travel components separately for transportation, accommodation, food, and beverages,
to tourist attractions and assemble them to create new travel products known as tour packages.
This final product can be sold by the tour operator to the tourists directly or indirectly.

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College of Tourism and Hospitality Management (CTHM)
Tour and Travel Management (TPC 1)
 3. Organizing a Tour

Tour operators can also arrange or organize a tour package based on the preferences of the
tourists. As their goal is to give tourists satisfaction with their travel, they can arrange a tour
package that would give a unique experience to the tourists.

4. Providing Travel Information

Another task of the tour operator to complete the travel experience of the tourists is to
provide them with the necessary information concerning their travel to the chosen destination. This
pertinent information includes the mode of transportation, types of accommodations, tourist spots
for sightseeing and other activities, immigration process, health and security rules and protocols,
and other documents required to visit a certain country or destination.

5. Making a Reservation

Tour operators are tasked to assist tourists in the reservation of the travel components
needed for their travel and stay in the chosen destination such as tickets for transportation, room
for accommodation, meals, etc.

6. Managing a Tour

One of the responsibilities of the tour operator is to manage the entire tour availed by the
tourist. Tour operators should check every detail of the tour from the time of its execution until its
completion. Aside from the activities in the itinerary of the tour chosen by the tourists, tour
operators should also provide the services of a tour guide and other escorting services.

7. Evaluating the Available Options

Tour operators usually assess and evaluate the tour packages that they offer to tourists.
They make sure to consider all the possibilities and other options to make the travel of the tourist
a memorable and remarkable one.

8. Promotion

All tour packages and other travel products offered by the tour operation and travel agency
businesses are also promoted. They promote them to their target and regular clients, both domestic
and international.

9. Sales and Marketing

As part of the transactions in the tour operation business, tour operators also do sales and
marketing especially to their target markets to attract their attention and eventually have them avail
their products and services.

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College of Tourism and Hospitality Management (CTHM)
Tour and Travel Management (TPC 1)
 10. Taking Care of Problems that may Arise

Since tour operators oversee the entire tour travel of the tourists, they take charge of all the
issues and problems that may arise during the tour. They are prompt to fix identified glitches and
provide the best solution.

Travel Agency Versus Tour Operator

Travel Agency Tour Operator

Acts like an independent reseller and receives Purchases travel components from different
commissions for the sale of the tour operator’s suppliers, forms a single tourist product, and
package tour sells them using its pricing

Small to medium enterprise Usually, large companies

Acts as the distributor/reseller of the tourism Acts as the supplier or manufacturer of tourism
products products

Deals with one component of travel products Offers a variety of tour programs

Types of Travel Agencies

Retail Travel Agency

Retail travel agencies act as resellers of tourism products and services. They sell their
products and services directly to tourists and receive commissions from the suppliers as their
income. Aside from commission-based selling of tour packages, retail agencies could also do
markup prices in which they add markup costs to the product and then sell it at a higher rate. The
markup price is the difference between the retail price and the wholesale cost.

The functions of retail travel agencies are as follows: preparing tour quotations for the
tourists, booking, and reservation of transportation, accommodation, food and beverages,

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Prepared and Compiled by: Mr. Dave Sidney M. Tirones
College of Tourism and Hospitality Management (CTHM)
Tour and Travel Management (TPC 1)
entertainment, visa assistance and other travel documents, foreign exchange, and arranging travel
insurance.

Wholesale Travel Agency

Wholesale travel agencies purchase travel components in bulk from suppliers, assemble
tour packages, and sell them to tourists through retail travel agencies. Assembled package tours
are usually all-inclusive trips that include transportation, accommodation, meals, entertainment,
and other activities and services required by the tourists.

In terms of function, a wholesaler travel agency that typically sells package tours can also
be known as a tour operator. However, technically there is a difference between a wholesaler travel
agency and a tour operator.

Difference Between Wholesale Travel Agencies and Tour Operators

Wholesaler Travel Agency Tour Operator

Does not sell its products and services directly Sells different travel components directly to
to the public tourists

Deals with one component of travel products Offers a wide variety of tour
and services products/programs

Medium to large business enterprise Larger business organization

Types of Travel Operators

A tour operator is an organization, firm, or company that purchases tourism products and
services separately and combines them into all-inclusive tours that, with their price rate, sell
directly to tourists or through travel agencies.

A tour operator can also be defined as a private entity that assembles travel components to
create a package tour that can be offered to tourists.

Today, tour operators are becoming highly competitive. They aim to achieve a high volume
of turnover from the maximum number of market shares both from domestic and international
markets. Furthermore, the success of most developed and developing countries as tourist
destinations depends heavily on a tour operator's ability to entice tourists through its promotional
strategies and the development of tour packages.

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College of Tourism and Hospitality Management (CTHM)
Tour and Travel Management (TPC 1)
 Tour operators, based on the nature of business and their operations, are categorized into
four types.

1. Inbound Tour Operators

Inbound tour operators are also known as incoming tour operators. Their role is to receive
tourists in the host country and handle all their land arrangements. They are based locally, and they
normally offer local destinations, attractions, events, and other services to tourists. They usually
partner with local travel agencies and work hand and hand to boost the travel industry within their
locality.

Example: A group of historian tourists from China goes on a tour of the Philippines. They
visit the National Museum, Intramuros, and Luneta Park. The tour operator who organized their
travel is a Philippine-based company that offers local, Philippine tours.

2. Outbound Tour Operators

Outbound tour operators promote tours for foreign destinations. They normally worked
with international travelers and offer specialized tour packages in a particular country or region.
Their role is to develop and create tour packages that will allow tourists to visit and enjoy their
stay from one country to another country.

Example: The Sarmiento family is a family with five members from Cebu, Philippines.
They want to spend their summer vacation in Dubai, UAE. They book a trip through Delmar Travel
and Tours, a well-known tour operator in Cebu which specializes in outbound travel. They are
based in Cebu, but they work with foreign partners to facilitate holidays overseas.

3. Domestic Tour Operators

Domestic tour operators create and assemble travel components into all-inclusive tours and
market them to domestic travelers. They provide travel services within the country of the tourist's

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College of Tourism and Hospitality Management (CTHM)
Tour and Travel Management (TPC 1)
residence. They also operate tour packages that are composed of travel components within the
boundary of the home country and offer them to domestic travelers.

Example: Carlo and his friends from Metro Manila want to travel to Aklan for the summer
break. They want to explore and discover the local attractions in the area and have some time to
relax on its famous white sand beach on Boracay Island. They organize their travel through the
tour company Boracay Adventures Travel and Tours, a well-known company specializing in
domestic travel within Aklan.

4. Ground Operators

Ground operators are also known as handling agencies, and their main role is to organize
and arrange tours for incoming tourists on behalf of overseas operators. They see to it that the
entire travel to the destination is following the package tours or agreements the tourists have with
the overseas operators.

Example: Mrs. Santos is planning to spend her Christmas holidays in Pampanga. She wants
her vacation to be a remarkable one, so she decided to book her trip with a well-known tour
operator in the country, Philippines Tour and Travel. They offer different types of tour packages
all over the country, but it is difficult for them to have office branches in every region and province
in the country. So, what they do is partner or network with the local ground operators who do the
work on the ground. In this arrangement, the ground operator is ERC Travel Services, a tour
operator based in Angeles, Pampanga.

Role of Travel Agency and Tour Operations in the Tourism Industry

The tourism industry is one of the fastest-growing industries in the world. With millions of
people traveling across different countries, it favors the growth of its economy, especially those in
developing countries. Whatever purpose or reason people have, it is the role of tour operators and
travel agencies to entice them to travel, thus having a remarkable hold in sustaining the growth of
the travel and tourism industry all over. the world (Jain, n.d.).

Mainly accountable for providing comprehensive packaged travel services, travel agencies
and tour operators act as experts who take charge of every aspect concerning the needs and wants
of the travelers every time they travel. Their role starts from the development and creation of a
package tour and continues during the entire travel of the tourists. They also provide a hassle-free
travel experience and make sure of the satisfaction of their clients by providing them with quality
travel services.

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College of Tourism and Hospitality Management (CTHM)
Tour and Travel Management (TPC 1)
Emerging Technology in the Operation or Travel Agencies and Tour Operation

A few years ago, planning a tour or a holiday escapade meant that you had to go and scout
for well-known travel agencies or tour operators for your travel needs. Then, all you had to do is
ask for a quotation and the price for your chosen package tour. They will take care of everything
about the trip.

Those days are undeniably gone. We must accept the fact that we cannot turn back to the
good old days of doing business, especially in the travel industry where technology matters. Travel
agencies and tour operators must adopt the current trends because we cannot deny that at this time,
doing business has changed dramatically and will be continuously changing in the future.

Technology nowadays has a huge impact on different businesses, not to mention travel
agencies and tour operations. This has also been observed by the travel industry from the different
transactions that they do such as booking and reserving, ticketing, etc.

Travel agencies must embrace and adapt to the technological changes that may affect their
business. They have to reinvent themselves so that they can still compete and be profitable. Below
are some of the fundamental technological changes that have affected travel agencies and tour
operation businesses (KeyforTravel, n.d.):

1. Internet usage – In the 21st century, the most powerful source of business is the Internet.
Everything has to do with the web. The internet helps create modern travel agencies and
tour operators. Every transaction involved in the process can be done over the internet;
thus, to remain in the business world, they must go with the flow.
2. Use of social media – Travel agencies and tour operators need to have personalities of their
own. They can use social media as part of marketing and communications strategies.
3. Mobile technology – Nowadays, travelers have all the pertinent information about their trip
in the palm of their hand. Travel agencies and tour operators have to adapt to this swift
change, in reality, to be able to sustain their business.
4. Digitalization – Digitalization helps travel agencies and tour operators to be highly
competitive in the business world. With this technological strategy, they can transform the
experiences of tourists most conveniently.
5. Big data – A customer database can help a travel agency or tour operator analyze its
customers' behavior patterns as well as guide it in forecasting based on their behavioral
information.
6. Artificial intelligence – Artificial intelligence nowadays is incorporated into mobile
devices and applications. It is a great help for travel agencies and tour operators, offering
convenient and comfortable services in assisting their clients.

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College of Tourism and Hospitality Management (CTHM)
Tour and Travel Management (TPC 1)
 7. Virtual reality – Virtual reality can be used by travel agencies and tour operators as a
marketing tool to entice more people to travel as virtual reality allows them to explore their
dream destinations.

Revolution in the travel industry is a must. It is about facing the world of reality.
Technology increases the speed and comfort of transacting business; as a result, it responds to the
client's needs and wants better than ever before. It also makes the customer satisfied, leading to a
more profitable business.

In reality, with the existence of modern technology, various opportunities have become
available in this era, leading to a range of markets and better revenue. Most of all, it is giving all
travel agencies and tour operators the chance to survive in this modern business world.

Key Concepts

• Travel Technology – Also called tourism technology and hos automation, it is the
application of Information Technology Information and Communications Technology
(ICT) in the travel, and hospitality industry.
• Travel Trend – This is a pattern of gradual change and develop the products and services
of the travel industry.

REFERENCES:

Herrera, M., Dondi, F., and Tugade, L. (2022). Tour and Travel Management. Sampaloc, Manila;
Rex Book Store Inc. (RBSI)

Po, S. (2021). Tour and Travel Management. 1633 Laguna St., Cor. Oroquita, Sta. Cruz, Manila;
EDRI Publishing House

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Prepared and Compiled by: Mr. Dave Sidney M. Tirones
College of Tourism and Hospitality Management (CTHM)
Tour and Travel Management (TPC 1)