CHAPTER

4
Operations of Travel
Agents
TOUR AND TRAVEL MANAGEMENT
 TABLE OF CONTENTS

4.1 4.2 4.3

Functions of Travel Characteristics of a Travel Revenue Sources of a Travel
Managemnet Companies Management Companies Management Comapnies

4.4 4.4.1
Duties and Benefits Duties and Responsibilities of a
of a Travel Agent Travel Agent
Travel Management Company

Provides on-going services with the aim of providing

cost savings, keeping control of a travel policy and
allowing the client to spend less time on time-
consuming travel arrangements. A travel management
company will typically use a GDS ( Global Distribution
System like Sabre or Amadeus) displaying real time
availability to book flights, hotels, and cars as well as
other trusted software systems like Evolvi for train
bookings.
 Travel Management Company

In order to be a successful travel agency, the members

behind it such as travel agents must possess the
characteristics of a travel agent and be able to meet the
requirements needed to be an agent.
4.1

FUNCTIONS OF TRAVEL
MANAGEMENT
COMPANIES
CHAPTER #4 OPERATIONS OF
TRAVEL AGENT
 4.1 FUNCTIONS OF TRAVEL
MANAGEMENT COMAPNIES
1 PROVIDE INFORMATION AND EXPERTISE
-TMC professionals are proficient with information regarding airlines, airfares, best places to go
with an affordable budget.

2 RECOMMEND DESTINATIONS, PRODUCTS, AND SERVICES BEST SUITED

TO THE NEEDS OF THE CLIENT
-Personalized services are the best forte for TMC professionals where they recommend
destinations, packages suited to the preference of the client.

3 PROVIDE ASSISTANCE IN SECURING TRAVEL DOCUMENTS

-Travel documents such as passports, visas, and plane tickets.
 4.1 FUNCTIONS OF TRAVEL
MANAGEMENT COMAPNIES
4 PROCESS TRAVEL ARRANGEMENT
-TMC professionals can make reservations for tourists regarding their booking confirmation.

5 ASSIST IN CASES OF REFUNDS AND CANCELLATIONS

-TMC professionals must be able to assist their clients in securing refunds. Changes in scheduling
of flights may even be advised by the TMC personnel.
4.2

CHARACTERISTICS OF A
TRAVEL MANAGEMENT
COMPANY
CHAPTER #4 OPERATIONS OF
TRAVEL AGENT
4.2 CHARACTERISTICS OF A TRAVEL
MANAGEMENT COMPANIES

1 TMC as the arranger of

3 Derived their revenues from a
predetermined fixed commission
dictated by the suppliers of travel
travel services
services or from a professional fee
negotiated with a client

2 Acts as a counselor/advisor to
the end-user and as agents
4 TMC charges fees for ancillary
service such as travel
and/or intermediaries for
documentation
suppliers
4.3

REVENUE SOURCES OF A
TRAVEL MANAGEMENT
COMPANIES
CHAPTER #4 OPERATIONS OF
TRAVEL AGENT
 4.3 REVENUE SOURCES OF A TRAVEL
MANAGEMENT COMPANIES
1 TMC charge an open and negotiated professional or handling fee (cost plus) which maybe fixed
amount or percentage oof travel cost.

TMC receive either fixed commissions on a regular fare (rate minus) or are allowed a reasonable
2
mark-up on a net fare (net plus).

3 For certain ancillary services, such those for travel documentation, TMCs collect service fees
from the clients.

4 In some cases, they also receive production incentives and rebates from the suppliers.
4.4

DUTIES AND BENEFITS

OF A TRAVEL AGENT
CHAPTER #4 OPERATIONS OF
TRAVEL AGENT
 4.4 DUTIES AND BENEFITS OF A TRAVEL
AGENT
4.4.1
Duties and Responsibilities

 Handle deposits and

payments for bookings.
The main duty of a travel agent
 Stay within the client’s
is to book all aspects of travel budget.

for their clients, from airline  Review visas,

vaccinations, and other
tickets to hotel and car rental
travel necessities.
reservations, and others  Resolve issues and
emergencies.
 Maintain accurate records.
 4.4 DUTIES AND BENEFITS OF A TRAVEL
AGENT
Benefits of a Travel Agent
Travel agents receive excessively discounts
or even complimentary stays at hotels
around the world. Hotels and hospitality
chains tend to grant them extension of
discounts to ensure that they will enjoy their
stay and would recommend it to their
clients.
Travel Benefits
4.4.2
These trips are offered to travel agents anticipating that
they will create a personal relationships with properties
and destinations around the world. Mostly, governmental
tourism boards, hotel companies, tour operators and
airlines provide a certain amount of all expenses paid
trips to a select group of top selling and large agency
travel agents each year. This reward implies to inspire the
agents so that they will work harder to market their
products or the destination itself.
Familiarization Trips
Travel agent rates are available to anyone
with an IATA number. IATA numbers are
identification numbers issued by the
International Air Transport Association to
travel agents granting discounted rates and
special access to deals and promotional
materials needed to market their packages
and products.
Percentage Discounts
 4.5

LICENSES, CERTIFICATIONS
AND REGISTRATIONS OF A
TRAEL AGENT
CHAPTER #4 OPERATIONS OF
TRAVEL AGENT
4.5 LICENSES, CERTIFICATIONS AND
REGISTRATIONS OF A TRAVEL AGENT
To secure the agents employment, the Travel Institute offers education and training that leads to two types of
certifications: Certified Travel Associate (CTA), and Certified Travel Counselor (CTC).

CERTIFIED TRAVEL ASSOCIATE

Agents with at least 12 months of experience in the retail travel industry may apply for the CTA certification. This
may involve completing a 15-module curriculum that cover topics such as ethics, customer needs, planning
itineraries, touring the world, and travel insurance.

CERTIFIED TRAVEL COUNSELOR

CTC certifications allows individuals with at least five years of experience to prove they have the skills necessary to
be effective managers.
4.5 LICENSES, CERTIFICATIONS AND
REGISTRATIONS OF A TRAVEL AGENT
Some state or countries require agents to have a business license to sell travel services. Requirements among countries
varies greatly. For more information regarding the requirements, contacting your individual country licensing agencies is
needed.
4.6

CHARACTERISTICS OF
A TRAVEL AGENT
CHAPTER #4 OPERATIONS OF
TRAVEL AGENT
 4.6 CHARACTERISTICS OF A TRAVEL
AGENT

ADVENTUROUS COMMUNICATION CUSTOMER SERVICE

SKILLS SKILLS

DETAILED ORGANIZED MARKETING

ORIENTED SKILLS SKILLS
 4.6 CHARACTERISTICS OF A TRAVEL
AGENT
ADVENTUROUS
1 Travel agencies that specialize in alluring destinations or types of travel such as adventurous travel or
ecotourism, the company should prefer to hire travel agents who share these interests.

2 COMMUNICATION SKILLS
Travel agents must listen to customers, understand their travel needs, and offer appropriate travel advice
and information.

CUSTOMER SERVICE SKILLS

3 When customers need to make last-minute changes in their travel arrangements, travel agents must be able
to respond to questions and complaints in a friendly, calm and professional manner.
 4.6 CHARACTERISTICS OF A TRAVEL
AGENT
DETAILED ORIENTED
4 Travel agents must pay attention to details in order to ensure that the reservations they make match travelers’
needs. Reservations should be at correct dates, time and locations to meet the travelers’ schedules.

5 ORGANIZED SKILLS
Travel agents often work on itineraries for many customers at once. Keeping client information in order and
ensuring that bills and receipts are processed in a timely manner is essential.

MARKETING SKILLS
6 Travel agents must be able to persuade clients to buy their products or packages such as
transportation, lodging, or tours.
4.7

CHALLENGES
ENCOUNTERED BY TRAVEL
AGENTS
CHAPTER #4 OPERATIONS OF
TRAVEL AGENT
 4.7 CHALLENGES ENCOUNTERED BY
TRAVEL AGENTS
Building and Maintaining the Credibility of Online
Presence
One of the biggest concerns for a travel agent is
to establish and maintain a reliable online
presence. Having your own website is not
sufficient enough to help you be visible in such
demanding competitive field.
Dealing with Duplicate Data Entries
In a travel business, travel agent receives a great deal of data from
different sources like website, call center, social media, resellers and so
on. It makes them create double entries, which means to create twice
the same buyer. Although it’s not hard for travel agents to tackle
different lead sources by getting rid of duplicated data, it will surely
consume a great deal of time. Moreover, an excellent communication
within your team and even between multiple agencies is needed if
necessary.
 4.7 CHALLENGES ENCOUNTERED BY
TRAVEL AGENTS
Tedious Operational Management Coping with a Flood of Inquiries

The agency’s daily operations can create a huge problem

for travel agents. If you don’t manage them efficiently
and properly. This is why most travel business owners
find it stressful to handle bookings, customer requests,
and so on. It’s wise to improve the operational
management for an effective and efficient results.
The demand in travel industry is increasing day
by day, which leave travel agencies helpless,
especially when it comes to dealing with flood of
inquiries.
4.7 CHALLENGES ENCOUNTERED BY
TRAVEL AGENTS

Expense Management

Every business is aware that it is not easy know every single penny spent if you are
managing your expenses manually.
 CHAPTER #4: OPERATIONS OF TRAVEL
AGENT
MASILANG, DIANNE MARTINEZ, MARGA

CHAPTER 4 PARTS: PARTS:

• 4.1 • 4.2
REPORTERS • 4.5 • 4.7

MARCAIDA, PRINCESS NAVARRO, APPLE

PARTS: PARTS:
• 4.3 • 4.4.1
• 4.6 • 4.4.2