TRAVEL MANAGEMENT

COMPANIES

PREPARED BY:

MGSD
 Learning
Competencies:
• LO 2. Describe the travel management
companies and travel agencies
• 1. Describe what travel and tour agency is;
• 2. Differentiate the traditional ―rate-minus
from the evolving ―cost-plus concepts;
• 3. Recognize how travel agencies shift its
roles from the traditional to the new trends
• in distribution cycle.
 3
WHAT IS TMC?
 4
WHY USE A TMC?
 5

Have you ever tried planning for

your travel vacation?
 6

How did you plan for it?

 7

TRAVEL AND TOUR AGENCY

The Tourist Code of 1980 under Article 243, describe the travel and tour
agency as ―an entity engaged in the business of extending to individuals
or groups, travel services and assistance to include documentation,
ticketing, booking for transportation and/or accommodation;
arrangements, handling and/or conduct of tour within or outside of
Philippines, whether or not for a fee, commission or any form of
monetary consideration.‖
TRADITIONAL WAY/TREND 8

ADD A FOOTER
* CONSISTED OF TRAVEL AGENTS WHO ACT
AS A MIDDLE PERSON TO THE VENDOR AND VENDEE.

HOTELS, RESORTS, AIRLINES, TOURISTS/

CRUISE, BUS, COMPANIES, CUSTOMERS/
AMUSEMENT PARKS CLIENTS
 9
TRADITIONAL TRENDS

HOTELS, RESORTS, AIRLINES, CRUISE,

BUS, COMPANIES, AMUSEMENT PARKS

AGENTS TO MARKET THE PRODUCTS AND

SERVICES

TOURISTS/CUSTOMERS/CLIENTS
 10
TRADITIONAL TRENDS
HOTELS, RESORTS, AIRLINES, CRUISE,
BUS, COMPANIES, AMUSEMENT PARKS
 11
TRADITIONAL TRENDS

AGENTS TO MARKET THE PRODUCTS AND

SERVICES
 12
TRADITIONAL TRENDS

TOURISTS/CUSTOMERS/CLIENTS
 Can the vendee go directly to the vendors to 13
avail of their products or services?
ANSWER: Yes, but it can be a rigid task. Furthermore, vendors do not have the luxury
of time to answer every customer‘s inquiry, that is why they prefer to create
agreements with travel agencies to let them promote and explain the products and
services that they offer in detail.
How do travel agency earn from the services 14
they offered?
• This may range from 10% to 15% of the selling price which can
be defined as rate-minus. (Commission)

• The travel agent can also impose markup on the net cost of
products forwarded by the vendor or known as “net-plus.”
which are normally beyond the understanding of the customer.
15

ADD A FOOTER
 16
NEW TRENDS
CRS (COMPUTERIZED RESERVATION
SYSTEM)

GDS (GLOBAL DISTRIBUTION SYSTEM

travel agency is no more an agent for the

vendor or a seller
to the vendee; but a partner to both of the
parties
TMC (TRAVEL MANAGEMENT COMPANY
17
 providing assistance to the vendees
 finding the best supplier of travel products
 determine preferences and budget then find the best match based on
the vendors audited assets
 manage and negotiate with all travel processes of the vendee
How TMC benefit from processing travel arrangements of clients?
18
 TRUE OR FALSE 19

Professional fee is deducted from the original price of

product or services offered by the vendor.

FALSE
 TRUE OR FALSE 20

The TMC will no longer assist the client in case of deal

cancellations and refund due to untoward circumstances.

FALSE
 TRUE OR FALSE 21

Suggestive selling means providing travel deal options and

recommendations that may satisfy the budget requirement of the
client.

TRUE
 TRUE OR FALSE 22

Travel agencies have no right to collect commission from the

vendors/suppliers.

FALSE
 GROUP ACTIVITY:
PERFORMANCE TASKS NO. 2 23

TO BE PRESENTED
ADD A FOOTER NEXT WEEK
(MONDAY)
 GROUPINGS: 24

ADD A FOOTER
 25
How TMC Works?
26

ADD A FOOTER
Travel Agency (TA) 27
 Assista client with the requirements before, during
and after a trip.
 Advise traveler of the necessary documents such
passport, visa and roundtrip ticket.
28

ADD A FOOTER
29

ADD A FOOTER
Tour Operator 30
 Contractand purchase separate travel components
and assemble them into one package
 Create travel itinerary
31

ADD A FOOTER
 Read the paragraph below and determine what is being referred to in the questions that
follow: 32

ADD A FOOTER
 The Explorers' Travel and Tours is perceived to be the best travel agency in town and is well-known for
great customer service. Janet, the manager of Explorers entertained the couple, Mr. Gino Rivera and
wife Rachel. The couple inquired about a trip to any nice place in Asia for a short five-day stay. Janet
found out that the couple has three children, namely, Kristopher, 16, Bella, 14 and Baby Brylle who is
10-months old. Janet advised them to just go to Hong Kong so that «all of them, especially the kids can
enjoy Disneyland. Janet searched that PAL has the lowest airfare rate which is PHP9,980 for a round
trip ticket. The couple also agreed to take PAL as well as to be booked in Shangri-La Kowloon for four
nights. They are booked in a deluxe room with twin beds that costs PHP14,500 per night. The couple
said they willjust take care of their tours when they get to Hong Kong. Janet informed them that Baby
Bryl le is a lap passenger so he will only be charged 10% of the airfare while the rest of them will be
charged full.
QUESTIONS: 33

ADD A FOOTER
 1. What is the cost of the air ticket for one adult passenger
if Explorers will add a cost-plus of 25%?
 2. How much is the commission of Explorers for one full
fare passenger if the rate-minus is 10%?
 3. What is the total cost of all their air tickets if Explorers
gives a cost-plus of 25%?
 4. How much is the commission of Explorers for all
members of Rivera family if the rate-minus is 10%?
QUESTIONS: 34

ADD A FOOTER
 5. How much is the commission of Explorers for the hotel room for one night if
rate-minus is 10%?
 6. What is the total amount of their hotel bill?
 7. If Shangri-La Hotel gives a rate-minus of 10%, how much will be the
commission of Explorers?
 8. As a whole, how much will Mr. and Mrs. Rivera be spending on airfares and
accommodations?
 9. How much is the total earnings of Explorers from the transactions with the
Rivera family considering both airline and hotel gave a rate-minus of 10%?
 10. How much earnings does Explorer get with the cost-plus of 25% from the
airfare of all members of the Rivera family?
 Unlocking of Difficulties:

• Accreditation – the act of granting recognition

to an establishment that maintains a suitable
standards.
• Itinerary- a schedule of sites and travel activities
arranged in chronological order.
• Travel Management Companies (TMC) – a
commercial establishment where a prospective
traveler can secure information, expert advice
and make arrangements to travel by air, sea,
land to any part of the world.
 THE FUNCTIONS OF TRAVEL 36
MANAGEMENT COMPANIES
TMC HAS FIVE MAJOR FUNCTIONS AND THESE ARE THE
FOLLOWING:
1. PROVIDE INFORMATION AND EXPERTISE
2. RECOMMEND DESTINATION PRODUCTS
3. PROVIDE ASSISTANCE IN SECURING TRAVEL DOCUMENTS
4. PROCESS TRAVEL ARRANGEMENTS
5. ASSIST IN CASES OF REFUNDS AND CANCELLATIONS

ADD A FOOTER
 37
1. PROVIDING INFORMATION AND EXPERTISE

AVAILABLE INFORMATION OF AIRLINES, AIR FARES, ARRIVALS, DEPARTURES AND

THE BEST PLACE TO GO DEPENDING ON THEIR BUDGET.

TMC professionals are well-equipped with available information on airlines, airfares, arrivals,
departures, the best place to go depending on their budget, purpose of travel, location
preference, specific airline of choice or other mode of transportation.

DOCUMENTATION ASSISTANCE
FACILITATION OF PASSPORTS AND ACQUISITION OF VISA FOR A CERTAIN COUNTRY
2. RECOMMEND DESTINATIONS, PRODUCTS AND 38
SERVICES BEST SUITED TO THE NEEDS OF THE
CLIENT
PERSONALIZED SERVICE
KNOWING THE BUDGET
PURPOSE OF THE
TRAVEL

Personalized service is what the LOCATION PREFERENCE

SUGGEST, ADVICE AND
SPECIFIC AIRLINE OF
TMC personnel do best. They CHOICE
RECOMMEND
suggest, advice and recommend DESTINATIONS
destinations that best fit the MODE OF TRANSPORTATION
preference of the tourists.

ADD A FOOTER
 39
3. PROVIDE ASSISTANCE IN SECURING TRAVEL
DOCUMENTS

PASSPORT
VISA
FLIGHT TICKET OR CRUISE TICKET
CONFIRMATION INVOICE
There are varied travel documents that tourists
must be able to present when travelling
ADD A FOOTER
 STEP-BY-STEP PASSPORT APPLICATION 40
PROCESS
IN THE PHILIPPINE SETTING:https://onlineappform.passport.gov.ph/

1.Set an appointment online. Before anything else, the online

appointment is FREE. ...
2.Fill out the application form. ...
3.Pay the passport processing fee. ...
4.Show up at your chosen DFA Office on your appointment
date. ...
5.Pick up your passport.
• Is an important identification needed when traveling international
• Is normally issued by authorized officials of a country in order to enter or exit a country
• In the Philippines, this document is issued by DFA (with 10 year validity)
• It contains personal information about the applicant, place and date of issue, expiry date and passport
number.
41

ADD A FOOTER
 VISA 42

• Is a certificate issued or stamp marked on the applicant’s passport by the immigration

authorities of a country to indicate that applicant’s credentials have been verified and he/she
has been granted permission to enter the country for a temporary stay within a specified period.
43

ADD A FOOTER
 44
SOME COUNTRIES REQUIRING A VISA:

• UNITED STATES OF AMERICA

• EUROPE
• AUSTRALIA
• NEW ZEALAND
• JAPAN
• KOREA
• CHINA
 SOME COUNTRIES IN ASIA DO NOT 45
REQUIRE A VISA:

• THAILAND
• SINGAPORE
• HONGKONG
 46
FLIGHT TICKET AND CRUISE TICKET

• Travel by air- airline ticket that may be issued by TMC or the respective airline.
• Electronic tickets (e-tickets) - Passenger can secure their own tickets online which are
a detailed receipt of a travel transaction on the airline database which can be availed
upon the presentation of proof identity by the passenger.
47

ADD A FOOTER
48

ADD A FOOTER
49

ADD A FOOTER
50

ADD A FOOTER
51

ADD A FOOTER
 52

4. PROCESS TRAVEL ARRANGEMENT

MAKE RESERVATIONS FOR THE TOURIST

HAVE ALL BOOKINGS CONFIRMED

Travelling starts with all the

What Documents Do you Need when
preparations of the tour. A tourist
Traveling to Another Country?
needs to have confirmed tickets for a
flight, confirmed booking in hotels Passport, Travel Visa and National ID
and a confirmed schedule of tours. Card
TMC personnel can make Health Travel Documents
reservations for the tourist and have
Travel Itinerary Details
all bookings confirmed after the
tourist have agreed to the price and
ADD A FOOTER Medical and Travel Insurance Proof
given schedule.
 53
5. ASSIST IN CASES OF REFUNDS AND
CANCELLATIONS
SECURING FOR REFUND
CHANGES IN SCHEDULE OF FLGHTS
MAY EVEN BE ADVISED BY THETMC
STAFF

ADD A FOOTER
 RETAILER AGENT

it buys travel products from suppliers (travel-related

establishments) and it negotiates and help the suppliers in distributing travel products
sell them to buyers (the consuming public). to the end
user or client

COUNSELOR PROFIT
EARNER

it generates revenues from every service rendered to suppliers and 54

clients such as professional fee (cost-plus), rate-minus, net-plus, and service
it guides the clients in using the best travel products that suits fee from
their needs. auxiliary services.

GENERAL MANAGER
ADMINISTRATION
It formulates administrative policies with
regards to standard operating procedures of the
company; manages all legal dealings, processes
insurance needs of personnel, as well as the
purchase and maintenance of the company’s
physical facilities.
It keeps all company records, permits,
licenses, bills, ledgers
and other accounting documents.
55
– It sets all administrative policies concerning
General Administration human resource
and development including personnel
qualifications, screening, professional and
personality development trainings of employee. It is
also in-charge of monitoring its
Personnel Section personnel ‘s work performance; recommends
increase in compensation or promotion
for efficient agents and imposes disciplinary actions
on negligent staffs.
Accounting Section
It manages the collection of revenues, transacts
with banks, prepares financial reports and
Finance Section disburses money to defray all financial
responsibilities of the company such as salary
of employees and utility bills.
GENERAL MANAGER
56

OPERATION
acts as the implementer in the delivery of the company’s core product which is to serve as intermediary
between the suppliers and the client.

Travel Operations

This division takes care of the normal services catered

by the TMC such as advising, information seeking,
processing, reserving and
ticketing, and securing of the travel documents for the
clients.

Tour Operations

It is the division responsible for the ―preparation and

implementation of all activities within an itinerary, within a
given time frame,
and within the estimated costs, in order to meet the
expectations of the paying
clients.
GENERAL MANAGER 57

MARKETING SALES

 are segmented activities which aim to uplift the sales revenue of the
TMC.

 marketing pertains to any activities that may cause public awareness about the
company and the product or services it offers.

 The Department is headed by the Sales and

Marketing Manager; followed by the Business Development Supervisor and the Product
Development Supervisor.
58

ADD A FOOTER
59

ADD A FOOTER
60

ADD A FOOTER
61

ADD A FOOTER
 62
How does the different department of Travel
Management Company play a significant role in
travel industry?
 What is the essential function of Travel 63
Management Company/travel agency in the
Philippine travel industry?
 GROUP YOURSELVES INTO SEVEN. EACH MEMBER OF THE
GROUP IS GIVEN A TASK. ACT OUT A SCENARIO WHERE
YOU CAN SHOW THE FIVE BASIC FUNCTIONS OF TMC. ALL
TEAM MEMBERS MUST BE ABLE TO PERFORM AND
ENGAGE IN A SUBSTANTIAL DIALOGUE THAT HE OR SHE
GROUP IS TASKED TO DO

ERICACTIVITY
AND CARINA ARE GETTING MARRIED ON JUNE 16, 2023. THEY WANT TO SPEND THEIR
HONEYMOON IN ASIA. THEY WANT TO STAY IN A HOTEL FOR 4 NIGHTS AND TOUR THE PLACE AS
WELL. IT IS THEIR FIRST TIME TO TRAVEL AND BOTH HAVE THEIR PASSPORT YET. THEY
APPROACH YOUR TRAVEL AGENCY TO SEEK FOR ADVICE. HOW WOULD YOU TALK TO THEM,
TAKING NOTE OF THE FIVE BASIC FUNCTIONS OF TMC?
TMC HAS FIVE MAJOR FUNCTIONS AND THESE ARE THE FOLLOWING:
1. MEMBER 1: PROVIDE INFORMATION AND EXPERTISE
2. MEMBER 2: RECOMMEND DESTINATION PRODUCTS
3. MEMBER 3: PROVIDE ASSISTANCE IN SECURING TRAVEL DOCUMENTS
4. MEMBER 4: PROCESS TRAVEL ARRANGEMENTS
5. MEMBER 5: ASSIST IN CASES OF REFUNDS AND CANCELLATIONS
6. MEMBER
ADD 6&
A FOOTER 7 : A COUPLE OR TRAVELERS MUST KNOW WHAT APPROPRIATE QUESTIONS TO ASK THE TMC 64
65

ADD A FOOTER
66

ADD A FOOTER
 67

ADD A FOOTER
END OF
END OF
DISCUSSION
DISCUSSION