TOUR AND

TRAVEL
MANAGEMENT

BLESSIE B. CABANTING, DBA

R U B Y L E N E J A N E T. B A C TA D A N , M B A
CHAPTER 1

GOING PLACES: AN OVERVIEW OF THE TRAVEL

INDUSTRY

Course outcomes:
Define key terms used in the travel business
Explain what each major segment of the travel industry represents
Analyze different kinds of consumers and what satisfies their travel needs
If there’s something predictable about human behavior, it’s
this:

Some of the greatest adventures of humankind have been fueled by a need to experience FRESH,
NEW PLACES.
INTRODUCTION
Beginning in the late 19th century, travel became easier.
Roads were better, trains could carry passengers
hundreds of miles in relative comfort, and more people
could afford the time and expense of taking holiday.
These trends reached full force in the 20th century, when
almost everyone industrialized nations gained the ability
to indulge in travel.
SOME DEFINITIONS: TRAVEL
TERMINOLOGY
Let’s step back and ask ourselves a basic question:

What is travel?
 Act of traversing through a geographic region or moving from one place to
another. This can be temporarily, as is often the case, and can be for a short
period of time.
 Travel is actually rather complex, with multi-”going from one place to another”.
TRAVEL
is usually divided into two broad categories:
a) Leisure travel
b) Business travel
Leisure Travel
 Is a travel for the purpose of enjoyment. The person travels to take a
vacation, to get away from the his or her everyday home life and
job.
Business Travel
 Is a travel beyond one’s general home area for reasons related to
work also called as corporate travel.

Meet with clients

WORK OR PLEASURE?
Corporate and leisure travel can and often do overlap. When visiting
an interesting city, a business traveler might choose to extend the trip
a day or two to see some of the city’s attractions.
Attraction - is anything that leisure travelers find interesting, such as
a famous building, museums etc. “It attracts visitors”.
In fact, studies show that about 20-25% of all business travelers take
time off during work-related trip to engage in some leisure activities.
THE BOTTOM LINE: Business and leisure travel frequently
intermix these days.
Leisure Travel can be further subdivided in several ways. Many
people today opt to travel through a Travel Package.
Travel Package - is one in which several travel components are
“bundled” together and sold as one product.
Includes:
Accommodation
Meals
Transportation
Destination activities
For some travelers, might buy an escorted tour.
Escorted Tours – refers for which transportation, sightseeing, some
(or all) meals, lodging, and the services of a tour manager are all pre-
arranged.

Other examples of travel packages are:

Independent tours – many of travel components are prearranged
but the buyer travels independently.
All inclusive- which include accommodation, meals, entertainment
and many activities for one price.
Most leisure travelers, travel on their own, not through a package.
They set up their own trips or enlist the help of a travel agent.
Travel agent- a professional who analyzes a traveler’s needs and then
prices, recommends, arranges and sells one or more components of
that person’s trip.
A common form of travel – in fact, the most prevalent- is VFR
(Visiting Friends and Relatives) travel.
 ACTIVITY 1 AND ASSIGNMENT 1

- will be posted in your Google Classroom .

SECTORS OF THE TRAVEL INDUSTRY
Important sectors of travel and tourism:
 Air industry – this segment includes airlines
of all sizes and sorts as well as the industries
that directly support them such airline
catering services.
 Lodging companies – lodging companies is
huge. It embraces a much broader spectrum
of lodging types.
 Travel agencies – travel agents operate
independently out of their homes, most
work at travel agencies, business that help
the public with their plans and needs.

 Cruise line – one of the fastest growing

segments in travel. Cruise companies such
as Carnival, Caribbean , Norwegian, etc.
 Motorcoach operators – these companies
owned and operate buses.

 Tour operators – tours are one of the most

common forms of packaged travel.

 Food services – Fast food outlets, and

other dining venues cater primarily to
locals, food survives appears to be
something apart from the travel industry.
 Car rentals - sometimes located on or near
airport property, in city or sub urban locations.

 Rail Travel – the dominant form of transit, rail

travel especially in Europe and Asia. Some of
them are public companies.

 Meetings and conventions – this sector of the

travel industry facilitates the event functions of
all sizes for businesses, organizations, and
societies. It encompasses not only meetings
and conventions, but also trade shows,
expositions, conferences, and world fairs.
 Sports and entertainment management
– Events have an appeal well beyond
locals, because so many people travel from
afar to attend. Entertainment entourage
moves from city to city, transportation and
lodging are extremely important.
 Theme parks – is a sort of “super”
attraction, the updated inheritor of the old
amusement park concept. Orlando area
has the highest concentration of theme
parks like Walt Disney World, Universal
Orlando, and Sea World.
 Stores and shops – store rely on tourism
for profitability.

 Parks and recreation programs –

programs don’t come to your mind
immediately when you think of travel.
Yet some of the greatest travel facilities
and attractions are operated by local,
state, or national governments.
 Financial companies – certain
banks, credit card companies,
accounting firms, and financial
software providers have close
relationship with travel logical
solutions specific to travel business
have become essential for industry
success.
 Travel publications – this industry
sector is divided in to two general
categories:
a) Consumer publications –
target the travelling
public.
b) Trade publications –
address the readership of
travel professionals.
 Tourism Associations and Organizations in the Philippines – this
refers to the organizations that represent their interests, provide a forum
for information exchange, furnish training opportunities, and perhaps do
research.
HOW TRAVEL IS SOLD
Travel is complex industry. To fully comprehend how it works, you
need to understand three keywords:

Consumer
Supplier
Intermediaries
THREE KEY WORDS:
Consumer – who purchase or “consume” the travel product.
Different sectors of the travel business will refer to you in many
ways:
Hotel, cruise lines and theme parks call you a guest.
Travel agents refer to you as a client.
Airlines, tour companies, motor coach operators, rail service
providers will label you are passenger (often abbreviated as pax)
 THREE KEY WORDS:
Suppliers – are companies that are create, own, and provide the travel
products being sold.
Examples are the sectors of the travel industry.

Intermediaries – these are companies that act as go-betweens linking

suppliers with the traveling public.
The most obvious example is travel agency.
Usually they neither create nor own the product they sell, nor they actually
provide travel experiences and they distribute these products- Retailers (they
sell travel directly to consumers on behalf of suppliers). Unlike suppliers, travel
agencies make their money through sales commissions from suppliers.
DISTRIBUTION SYSTEM
• Suppliers (airlines, hotels, tour
operators, cruise lines, car rental
companies, rail companies etc
Indirect

Direct
Travel
Agencie
s

• The public
COMMODITY OR EXPERIENCE
The way people buy travel is determined by the public's perception of
each product – whether it’s viewed as commodity or experience.

Commodity is a product that is simple, similar to other products in its

sector, and is usually bought based on price and logistic factor alone ex.
Air ticket, car rentals

Experience it is usually a complex product, one where suppliers in that

sector provide very different types of vacations.
ex. Contiki tour (designed for people younger than 35), lodging facilities
SEASONALITY
 When people travel is as important to travel business as how or why
they travel.
High/peak season
Low season
 Prices of course parallel seasonality.
 CHAPTER 2
DEALING WITH DREAMS:

THE TRAVEL AGENCY

INDUSTRY
• Course outcomes:
Explain why consumers use travel agents
Describe the different kinds of travel agencies
Contrast the skills of leisure agent with one who
deals primarily with business travelers
List the sources that agents use to obtain
information
TRAVEL AGENT'S VALUE
Reasons why consumers book their trip through travel agents:

1. Travel agent is more skilled at finding the best travel solution.

 TA do the sorting of things all day, every week, all year. They are
professionals who know what they are doing. They can decipher
jargon, spot hidden drawbacks, discover opportunities, and be
marvelously resourceful.
2. Travel agent can find the best deal
 Agents are better at spouting genuine values. Yet in most
“competitions” that travel magazines have staged, travel agents can
find better air prices than consumers. Nevertheless, most people feel
that the internet can easily help them discover the best price on say,
an air ticket or hotel stay.

Note: Travel agents today go well beyond being “agents” for suppliers, they sometimes refer to
themselves as travel counselors/consultants/advisors/travel planners.
TERMS USED IN TRAVEL AGENCY
ENVIRONMENT
Free Independent Traveler (FIT) – this refers to any trip assembled
by an agent from scratch, rather than a package.
Approval code – a number issued by a credit card company that
indicates its authorization of credit card transaction.
Debit memo – a request for payment, usually from an airline when
the airline believes that at ravel agent or agency made an error on a
fare and provided too little money to the airline for that ticket.
Queues or cues – a feature of a CRS/GDS to remind the agent of an
important transaction to be taken or message to be delivered.
3. A travel agent saves time and trouble
It often makes plenty of sense to pay a professional to do certain tasks
for you also applies in planning and booking travel.

4. A travel agent is accountable

5. A travel knows the suppliers better
6. A travel agent is largely impartial
KINDS OF TRAVEL AGENCIES
1. Conventional, full-service agencies
2. Online agencies
3. Specialized agencies
4. Home-based agencies