1. travel agency

8/4/2019 1. Travel Agency

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Travel Agency atorTaufik Abdullah, A.Md. Par., S.E.


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DefinitionThe United conference on international travel and tourism (Rome,1963)

TourismThe sum of phenomena and relationships arisingfrom the travel and stay of non-resident to and invarious destinations, insofar as they do not lead to

permanent residence and are not connected withany earning activity.

TouristTemporary visitors staying at least 24 hours in the

country visited. Excursionist

Temporary visitors staying less than 24 hours in thecountry visited (including travelers on cruises).


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CONDITIONS FOR THE EXISTENCE OF TOURISM

PEOPLEThere must be people willing to travel and wanting to visit places.Various reasons : Scenery, climate, familiar interests, history.TIME

These people must have spare time (weekend, holidays or vacation)enabling them to leave their residence.

MONEYThey must also have money to spend on pleasure and recreation.TRANSPORTATION

People may reach the place of their choice, there must be a way toget tourist object/destination.

LEGISLATIONTo develop the flow of tourists between different countries,

administrative restrictions must be held to a minimum. too muchred tape at the borders tends to discourage would be tourists.ACCOMMODATION POSSIBILITIES

Once on the spot, the tourist will demand that his/her basic needsbe satisfied : Foodand shelter.


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IMPORTANT UNDERLYING FORCES WHICH HAVE A SIGNIFICANT IMPACTON TOURISM

Early retirement

The growth of government security programs

A reduction in values placed on material ownership

Decline in physical labor ---- attention to health program such as camping, cycling, hiking

and the like A shorter work week

Greater affluence ---- increasing of income/purchasing power

Greater mobility of the population

Growth of employee benefits

Smaller families

Improved transportation and relative decrease in cost

Increase in longevity ---- live longer with greater vigor

Growth of multi-national companies

Rapid communications

Higher education


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THE ROLE OF TRAVEL AGENCY ANDTHE LIKE IN TOURISTS FLOW

Generating countries Holland Germany France Canada USA Japan, etc.

Receiving countries Switzerland Malaysia Indonesia USA Egypt, etc.

TOURISTS

TRAVELDOCUMENT

RESTAURANT

HOTELS AND OTHERACCOMMODATIONS

TOURIST OBJECT


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THE SOCIAL EVOLUTION OF TOURISMWAS CHARACTERIZED BY

Higher salaries

Longer vacations

Holidays and free time almosttotally paid by the employer

A leveling out of social classes


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Travel Agent Pertama di Dunia

Thomas Cook dianggap sebagai orang pertama menemukanprofesi travel agent.

Dilahirkan tanggal 22 November 1818. di Derby Shire (Inggris). Tanggal 5 Juli 1841, Tour yang paling bersejarah yang pernah

diselenggarakannya yaitu A Round Trip Excursion antara kotaLeicester dan Lougborough dengan biaya 1 shilling per orang.

Dengan Pengikut sebanyak kurang lebih 500 orang Tahun 1851, ia menyelenggarakan tour ke London denganpengikut sebanyak 150.000 orang untuk menyaksikan WorldExposition

Tahun 1855 , ia membawa orang-orang Inggris ke Eropa untukmenyaksikan Paris Exhibition di Perancis (Cooks Tour ofEurope)

Kantor Cooks Travel Agent dibuka tahun 1868 di London John Mason Cook, anak Thomas Cook, mulai membantu pada

tahun 1865 dalam menyelenggarakan tour ke Eropa danAmerika


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Usaha Perjalanan

Keputusan Dirjen Pariwisata Kep.16/U/II/1988

Usaha Perjalanan adalah usaha yang bersifatkomersial yang mengatur, menyediakan, dan

menyelenggarakan pelayanan bagi seseorang atausekelompok orang untuk melakukan perjalanandengan tujuan utama untuk berwisata

Peraturan Pemerintah RI No. 67 Tahun 1996 tentangPenyelenggaraan Kepariwisataan

menyatakan bahwa usaha perjalanan tersebut terdiriatas dua jenis usaha pariwisata yaitu:

Biro Perjalanan Wisata (BPW)

Agen Perjalanan Wisata (APW)


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Travel agency

Travel agency is the enterprise who brings togetherthe suppliers of travel services with the buyers, andwho offers buyers sound travel counseling on

destinations, routing, transportation,accommodations, sightseeing, and other elements oftravel.

Surat Keputusan Direktur Jenderal Pariwisata No.

Kep. 16/U/II/88 Tgl 25 Februari 1988Agen perjalanan adalah badan usaha yangmenyelenggarakan usaha perjalanan yang bertindaksebagai perantara di dalam menjual dan atau

mengurus jasa untuk melakukan perjalanan.


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Tour operator

Dennis L. Foster (2000) mengungkapkan pengertianbiro Perjalanan perjalanan wisata sebagai sebuahperusahaan perjalanan yang menjual rancanganperjalan secara langsung kepada masyarakat danmenjual jasa angkutan (udara, darat dan laut),akomodasi , wisata pelayaran , paket wisata, danproduk-produk lain yang berhubungan denganperjalanan tersebut.

Tour operator (Wholesaler) adalah suatu perusahaanyang usaha kegiatannya merencanakan dan

menyelenggarakan perjalanan orang-orang untuktujuan pariwisata (tours) atas inisiatif dan resikosendiri dengan tujuan mengambil keuntungan daripenyelenggaraan perjalanan tersebut.


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The function of travel agency on the travel industry

activities

SECONDARY SUPPLIERSMusicians, Chauffeurs, Caterers, etc.

MIDDLEMEN Travel agency Wholesalers

Retail tour operator

Traveler

PRIMARY SUPPLIERS Airline Cruise ship Bus line

Hotels Restaurant Resorts, etc.


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The functional activities of a travel agency

1. Travel information and itineraries Travel information is to be required by the people

who wish to travel and this information relates :

Travel itineraries is given by travel agency as anadvice to people on the type of travel itinerarieswhich they should select for their holiday orbusiness travel. People seek travel agency for travel

itineraries due to its capability as a travel expertand think about efficiency


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2. Ticketing Transport ticketing

Airline travel (schedule, charter/affinity charter)

Ship line travel (passenger, cruise) Rail transport (domestic, international)

Bus (coach) transport

Transfer service (intercity transfer, terminal transfer)

Touring service

Other ticketing Sport events

Cultural performance

Sight seeing, excursion, package tour (product of other travelagencies)



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3. Accommodation Hotel (other types of accommodation)

reservation

Restaurant booking

Theater booking

Special events reservation



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4. Tours (leisure) Sight-seeing and excursion

City sight-seeing tour Country side tour

Combination between city sight-seeing and countryside

Intercity sight-seeing transfer

Inclusive tour charter (IT/ITC)

An aircraft charter that carries an inclusive tour. The tourto be provided in connection with charter transport.



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4. Tours (leisure) Package tour

Domestic tour

Outbound tour

Inbound tour

Escorted tour

Unescorted tour

Group inclusive tour (GIT) Foreign inclusive tour (FIT)

Special interest tour

Out off the beaten track tour

Incentive tour



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5. Related travel services Provide transport on transfer in and out Terminal to terminal transfer Terminal to hotel V.V. Intercity transfer :

Hotel to hotel Hotel to terminal V.V. Terminal to terminal

Rent a car service (incl. Rent-a-car packages) Drive-yourself (U-drive service) Chauffeur driven service



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5. Related travel services Money changerA travel agent should be appointed as an

authorized agent from the travelers checkscompany, and earned agency-commission fromit.

A travel agent becomes an agent of a moneychangers company, and get the profit from thedifferences of the conversation rate.



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5. Related travel services Insurance

The loss of baggage and personal possession The damage and theft of baggage and personal

possession

The illness or injury

The death Trip cancellation (an excellent way to safeguard

clients from cancellation made by transportationcompanies, accommodation, etc.)



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5. Related travel services Cargo handling

The overweight of passengers baggage

Accompanied baggage

Unaccompanied baggage

The special delivery of souvenir cargo



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5. Related travel services Travel document handling

Passport and exit permit requirementsVisa/entry permit/tourist card permitting a

traveler to enter, such as :

Visa application service

Visa extension service

Health certificate and quarantine service


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5. Related travel services Convention services The travel needs of convention participants :

Meeting and transfer in & out services Providing transport to the destination

Providing tour/sight-seeing : Pre conference tour

Official conference tour

Post conference tour The overseas convention arrangements :

Convention registration

Travel services related to the need of participants in thedestination


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5. Related travel services Guiding and tour conducting

Travel agency can provide specializedpersonnel to be used for making a tour, thatis :

- tour guide- tour conductor.


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The advantages of being travel agent

Involves much traveling all over the world

Given VIP treatment wherever you go (large

discounts on travel components costs) Enjoy the interest in geography, history,

literature, art, culture, etc.

Has a chance to brush up the study of

foreign languages Collects bonus as addition in salary


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The disadvantages of being travel agent

Has a lot of hard works, such as : Natty-gritty

Detailed work to do

Able to travel much of the time

Complex office works

The must exacting business : An error might came the reservation not in order

A mistake of only a few minutes might came to miss a connection

Requires careful checking and double checking fortaking care of accurately and properly

Has to wit stand adverse situation caused bycircumstances


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Kegiatan Biro Perjalanan UmumKeputusan Menteri Perhubungan No. PM 9/PW 104/Phb-77

Menyusun dan menjual paket wisata luar negeri kepada umumatau atas permintaan

Menyelenggarakan dan menjual pelayanan wisata (cruise)

Menyusun dan menjual paket wisata dalam negeri kepadaumum atau atas permintaan

Menyelenggarakan pemandu wisata ( guiding and tourconducting

Menyediakan fasilitas sewa mobil untuk wisatawan

Menjual karcis (ticket) sarana angkutan dan lain-lain Mengadakan pemnesanan sarana wisata

Mengurus dokumen-dokumen perjalanan sesuai denganperaturan-peraturan yang berlaku.


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Kegiatan Agen PerjalananKeputusan Menteri Perhubungan No. PM 9/PW 104/Phb-77

Menjual karcis (ticket) sarana angkutan danlain-lain

Mengadakan pemnesanan sarana wisata

Mengurus dokumen-dokumen perjalanansesuai dengan peraturan-peraturan yang

berlaku.

CONTOH BAGAN STRUKTUR ORGANISASI BIRO PERJALANAN UMUM


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CONTOH BAGAN STRUKTUR ORGANISASI BIRO PERJALANAN UMUM

DEWAN KOMISARIS

UR. WIS. UMUM KE DLM NEGERI

UR. WIS. KHUSUS KE DLM NEGERI

UR. WIS. INSENTIF KE DLM NEGERI

SEKSI WISATA KE DLM NEGERI

UR. WIS. UMUM KE LUAR NEGERI

UR. WIS. KHUSUS KE LUAR NEGERI

UR. WIS. INSENTIF KE LUAR NEGERI

SEKSI WISATA KE LUAR NEGERI

UR. WIS. UMUM DI DLM NEGERI

UR. WIS. KHUSUS DI DALAM NEGERI

UR. WIS. INSENTIF DI DALAM NEGERI

SEKSI WISATA DI DLM NEGERI

UR. PELAYARAN WIS. KE DLM NEGERI

URUSAN WISATA TIRTA

SEKSI PELAYARAN WISATA

BAGIAN WISATA

UR. TICKET ANGKUTAN UDARA

UR. TICKET ANGKUTAN LAUT

UR. TICKET ANGKUTAN DARAT

UR. TICKET LAINNYA

SEKSI TICKET

URUSAN HOTEL

URUSAN AKOMODASI LAINNYA

SEKSI AKOMODASI

URUSAN PASPOR DAN EXIT PERMIT

URUSAN VISA DAN KARANTINA

UR. KEWARGANEG. & PERIZ. KERJA

SEKSI DOK. PERJA & PERIZ. KEIMIG.

UR. PAKET WISATA UMUM

UR. PAKET WISATA KHUSUS

SEKSI PAKET

BAGIAN PERJALANAN

UR. LITBANG PRODUK WISATA

URA. LITBANG PASARAN WISATA

SEKSI LITBANG

URUSAN PERENCANAAN

URUSAN PRODUKSI

SEKSI PERENCANAAN & PRODUKSI

URUSAN PROMOSI DAN IKLAN

URUSAN PENJUALAN

SEKSI PROMOSI DAN PENJUALAN

BAGIAN PEMASARAN

URUSAN ANGGARAN

URUSAN KASIR

SEKSI KEUANGAN

URUSAN AKUNTANSI UMUM

UR. ANALISA LAPORAN KEUANGAN

SEKSI AKUNTANSI

URUSAN PERSONALIA

URUSAN RUMAH TANGGA

SEKSI UMUM & PERSONALIA

BAG.ADM. & KEUANGAN

PIMPINAN

RAPAT UMUM PEMEGANG SAHAM


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BAGAN STRUKTUR ORGANISASI AGEN

PERJALANAN YANG MEMILIKI CABANG

DEWAN KOMISARIS

BAGIAN PERJALANAN BAGIAN WISATA

BAGIAN PEMASARAN BAGIAN ADM. DAN KEUANGAN

CABANG

PIMPINAN

RAPAT UMUM PEMEGANG SAHAM


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Potential profits of a travel agency

Income Commission or mark-up on tickets and tours

Other commissions such as from hotelreservations, travel insurance, car rental, etc.

Investment profits, such as bank interest,revaluating of fixed assets, etc.

Expenditure Personnel expenses

Sales and promotion expenses

Administrative expenses

PROFIT = INCOME - EXPENDITURE


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Mix ratio

Mix ratio is the ratio percentage of total income (gross profit

or total commission & add-on profit) to total gross sales.

Total income (gross profit)

Mix ratio = -------------------------------- X 100 %Total gross sales

Incidentally, 8 % to 8.5 % mix is about average for the industry,

though some agencies may run lower if they concentrate onheavy volume of commercial business, while others mayoperate at 10 % or better if they enjoy high revenue sales. Itfollows that the larger the mix the greater the income.


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Competition on travel agency business

Other travel agencies

The competition is a healthy competition if all the agencies

operate on an ethical basis.

Suppliers

Suppliers like airlines, steamship, rail and coach companies,

tour operators, sight-seeing firms, hotels, car rental firmssolicit and accept business directly from the public.

Organizers and tour directors

Many travel agents oppose local group organizers with the

result that the organizer goes directly to a supplier and the

revenue is lost to the agency.


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Competition on travel agency business

Non-profit organizations

These competition may come from :

A club

Labor union School organizer

Social organizer, etc.

Other competitionThere are many other non-industry organizationsand people competing with travel agents. Such asemployees annual leave handled by employer.


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Risk of failure on Travel Agency business

Under capitalization

Failure to thoroughly investigate an agency prior topurchasing

Deficiency in knowledge of travel agency operation Deficiency in knowledge of travel industry in general

Unrealistic evaluation of market potential

Inefficient manager and/or staff

Inexperienced manager and/or staff Too much competition or poor location

Poor business climate


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Risk of failure on Travel Agency business

Lack of professionalism

Failure to have an agency evaluated and investigated by anexpert prior to purchasing

Failure to listen to, or to heed the advice of the manager. Absentee ownership (loss of control)

Inadequate record keeping

Excessive extension of credit, thereby seriously restricting

the cash flow

An egotistical attitude

Inability of the owner to properly handle, or motivate staff


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The benefits of consider retaining a consultant

Will help eliminate costly errors

Will reduce business risk

Can advice on a variety of important functions Location

Lease

Layout

Accounting

Filing and efficiency system

Advertising and promotional campaigns

Budgeting

Developing a training program, etc.


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The benefits of consider retaining a consultant

Can stop the attitude of Ill do it my way

The slightest evidence of a problem can besolved at the time of arising, before it gets outof control

His/her practical experience which is gainedthrough exposure to a variety of situations andproblems.


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Start a new travel agency or buy an existing

agency

To start a new travel agency Has to find and decision a good location

Less of capital

Has to secure suppliers appointment Has to hire and train personnel

To buy an existing travel agency Should has a good existing

By a very thorough investigation

Already operating

Has a functioning staff


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Considerations on buying an agency

Is there an agency for sale within the price rangein the general area desired to locate ?

Is it for sale at a reasonable and realistic price ?

Can it arrange a moderate down payment withattractive payout time ?

Does it have a consistent record of steady sales,

growth, and earnings ? Does it measure up to the criteria standardized

for a good existing travel agency ?


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The advantages of buying a travel agency

Already is at an approved location, staff, andprinciples

Immediate earnings commission

(if already has clients)

Buyer can get benefit from the owner : Expertise of the business

The community Possible to buy an agency at a low or bargain

price.


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The disadvantages of buying a travel agency

Pay too much, because the inaccurateevaluation of the worth of agency

The agency may be in default

If the owner leaves immediately after theclosing of the sale much of the business maydiminish

The location may be poor

The owner may have had a bad reputation

May be loss of important commercial account,departure of key staff.


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Guidance on pricing a travel agency

To effort arriving at an equitable or realistic price

Should be aware of that evaluating a servicebusiness is always more complicated than pricing a

manufacturer or retailer (service business isintangible and unknown, manufacturer has arealistic assets and inventories)

The previous history and prevailing condition

records should be utilized as an adding orsubtracting consideration

Consider factors that could influenceon pricing.


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Factors that should be taken into

consideration on pricing a travel agency

Asset value :the cost of the asset new, the depreciated value,the replacement, or fair market value.

The potential :to discern the potential which is right to beexploited.

The good will (consists of intangible factors) :good reputation, convenient location, steady and repeat clientele,competent and efficient staff, attractive offices, high mix, and otherfactors related

Eagerness and desire The business climate

The evaluating factors


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The factors on evaluating the price of a travel agency

Positive factors Substantial vacation business

Long established

Consistently good sales

High mix

Good commercial volume

Favorable lease

Good location

Attractive dcor

Quality of furniture and equipment Stable management and staff

All conference appointments

Good cash flow

Owner will remain during transition


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The factors on evaluating the price of a travel agency

Negative or minus factors High turnover staff Too much commissioned sales people

An excess of : charter business, studentbusiness, ethnic business, fraternal business,group business.

Poor cash flow

Slow paying commercial accounts High rent Recently established Owner will depart after closing


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Establishing a new travel agency

1. Factors to be considered in choosinglocation

Offers the best potential for growth and profit

Type of business

Location of travel agency competition and supplier Cater to the carriage trade in a large community

Type of sales service

Plenty of free parking

A ground floor location or an adequate elevator services (for a

multi storied building) Good traffic pattern

Easily accessible to the clients

Exposed to as many people

The history of the site


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2. Physical lay out

decor Has a good portion ratio between sales activities area and administrative

activities area (depends on the type of its business activities)

The reception area is a polite receptionist who may double as the telephoneoperator

General sales counselors should be located near the entrance Separation based on departmentalization activities should be existed

clearly

Has a folder (brochure) rack display in the reception area

Take the advantages on window display possibilities

Has a uniform office furniture such as desks, chairs and filing cabinets

The flow of the clients should be act in accordance with the officeprocedure

Besides the lay out of counter sales should be considered too the placementof the manager office, accounting office, tour/travel administrativeoperation office, a supply and mailing office, storage and file space.

Establishing a new travel agency


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The decor of travel agency office should possessed an

impression of the client with consideration as hereunder

The decor is to be set in accordance of travelservices

Has a colorful and glamour impression

To perform an attractive, exciting andefficient-looking office

Utilizing brochure, poster, air models, etc. as

a decor aids material Supplemented by colorful maps (tourist or

airlines map)


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Furniture, fixtures, and equipment

Bookcases

Chairs

Copy machine

Desks

Dictating equipment

Filing cabinets

Lamps

Literature racks

Safes and vaults

Shelving

Storage cabinets

Tables

Ticket imprinter (order fromATC)

Typewriters

Waste paper basket

Computer sets with link system

Telephone and facsimile

Miscellaneous, accessories, etc


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Estimated of start-up cost

Fixtures and equipment

Advertising and other openingpromotional expenses

Conference, filing and applicationfees

Decorating and remodeling

Incorporation and otherorganizational expenses

Insurance, bond, etc.

Legal and other professional fees

Printing (letterheads, envelopes,etc.)

Travel agency supplies and forms

Accounting and other office supplies

Subscription to tariffs, manuals, tradejournals, etc.

Telephone, facsimile, and internetinstallation

Outside signs

Other expenses

Sub total

Add 10 % contingency

Total estimated start-up expenses


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Annual operating and expense budget

Salary of owner

Salary of manager

All other salaries and wages

Advertising and promotions

Conference fees Depreciation

Dues and subscription

Entertainment

Insurance premium, bond

Legal and accounting

Miscellaneous expenses

Postage

Rent and utilities

Stationery and supplies

Taxes

Telephone and telegraph

Travel expenses

Other

Sub total

Ten percent contingency

Total annual operating expenses


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Check list for opening a travel agency

Contact conferences for information andapplications

Order catalogs from travel agency printers

Consult with your attorney to decide form oflegal structure

Complete the worksheet in this book

Decide on a name for the agency

Locate suitable office space

Read lease carefully. Attorney to reviewbefore signing

Form the corporation

Open a bank account

Arrange for design of logo

Order all letterheads, envelops, businesscards, etc.

Set up the accounting system

Order all supplies from travel agencyprinters

Order all furniture, office machines andother equipment

Other subscriptions to tariffs, manual,and trade journals

Plan opening promotion, advertisingand mail campaign

Order installation of telephone,facsimile and internet

Hire manager to conform withconference regulations

Obtain ATC bond and take out

insurance policies as needed

Establish contact with tour operatorsand other suppliers

Carefully review and completeconference applications

File for appointments


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Setting travel agency office

Considerations Cost and benefit analysis The needs of the staff The dictates of business efficiency

Travel agency management consists of : Corporate management office

Building Personnel equipment

Operation management office Merchandising Office work : records, figures and computation, retention of

products, internal and external communication


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Travel agency form

The function of travel agency form

To register the transaction

To transfer the information To present the data for controlling

To reduce administration error

To formulate the end product


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Classification of travel agency office form

Internal form

Inter office memo

Inter office order

Sales department report, etc.

External form

Service order

Travel voucher Reservation form

Receipt

Invoice, etc.


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Utilizing form

The important reason of utilizing form The possibility for repetition

The possibility for getting uniformity

To be utilized as work instruction The possibility to be implemented for mechanic process

The advantages of utilizing form To reduce the cost

To present the information need To store the perfect and correct information and able to

give the information quickly

To become an effective control aid (internal and external)


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Consideration factors in designing form

Functional considerations The aim (objective) of the form

The information to be filled in

The complete identification The logical items in accordance with the flow of steps

The utilizing of space

The number of copy to be needed

Physical considerations Types of printing (letters, inks, duplicating)

Types of paper

Size of form

Cost of printing


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Consideration points in financing proposal

A total description of the proposed venture, including aprojection of estimated sales, income, operating expensesand net earnings.

Include as many statistics, about the area, buying power,median incomes, and any other commercial informationconcerns with travel agency business.

An estimate of your start-up expenses, including cost of

furniture, office equipment and other necessities. List of references which are familiar with the business.

Th f it l f b i


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The sources of capital for buying or

existing travel agency

Own capital

Equity capital

Venture capital Bank loans :

Short term loans

Long term loans


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TRAVEL RETAILING

The role of travel agents Did similar to that of most other retailers in that an agent does not

purchase travel for resale to the customers. Therefore the travel agentdoes not carry stock of travel products. The two implications for thebusiness of travel distribution : The cost of setting up in business is comparatively small compared to other retailing

business.

No obligation to dispose of products that has to be purchased and therefore has lessbrand loyalty towards a particular product or company than do other retailers.

To provide a convenient location for the purchase of travel. At theselocations they act as booking agents or as a source of information and

advice on travel services.


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Travel agency operation

The essence of travel agency operation on retailing business

will be expected to cope with all the activities associated with

the booking of travel, which will include :

Advising potential travelers on resorts, carriers, travel companies and travel facilitiesworldwide.

Making reservations for all travel requirements

Planning itineraries of all kinds travel needs

Accurately computing airline and other fares

Issuing travel tickets and vouchers

Corresponding by phone call and letter with travel principals and customers

Maintaining accurate files on reservations

Maintaining and displaying stocks of travel brochures

Interceding with principals in the event of customer complaints.

Th N ti d P iti i f


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The Negative and Positive view of

travel agent

The negative view of travel agent The remuneration in getting commission on sales

A questionable on providers of information (particularly in thearea of long-haul travel)

Travel agency work still has of a glamour image for youngpeople (lack of basic knowledge on travel agency business)

A questionable on the grounds of its impartiality

Displaying promotional in their shops not to play an active roleon promotion.

The positive view of travel agent Increasing the sales of principals

Agency commission able to compensate the expense in settingup sales offices and direct marketing cost.

M thl fit d l t i t l


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Monthly profit and loss account in travel agency

SalesLess cost of sales

Gross profit

Expenditure :Administration

Rent

Light and cleaning

Insurance

Postage, telephone, and facsimile

Printing and stationary

Advertising and promotion

Salaries and wages

Bed debt

Subscriptions

Bank charges/interest on loans

Total

Net profit before tax

Net profit before tax = gross profit total expenditure

The only means of improving profitability is toincrease efficiency by : Achieving higher turnover at the same cost Achieving similar turnover at reduced cost

The impact of computer on travel retailing


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The impact of computer on travel retailing

Computer operation can be in isolation or tolink with the reservation system of travel

principals. Can change the atmosphere of travel retailing.

Existing modern means of communication.

Travel agency operation will become moreefficient.

Travel agency will need to become moreknowledgeable in marketing and sales skill.


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In travel agency operation, computer

can manage the handling of :

The requires system of registering availability oftransport and accommodation at short notice.

Making immediate reservation.

Amendments and cancellations on such facilitieswith a correct manner.

Quoting complex fares and conditions of travel.

Rapidly processing documents such as tickets,invoices, vouchers and itineraries.

Providing accounting and managementinformation.

Th f f l i


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The future of travel agencies as

retailer could be affected by :

The wide net links of using computers notonly links between agency and principals.

The automated selling by suppliers. Inability of travel agencies to meet

increasing costs.

Decisions of supplier not to use travelagencies as mediator.

Deregulation of the environment.

T t


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Tour operator

Most business calling themselves tour operators undertake a

distinct function in the tourism industry; they purchase separateelements of transport, accommodation and other services andcombine them into a package which they then sell directly or

indirectly to consumers.

Carriers

Accommodation

Services

Travel Agents

Tour Operators Customers


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Integrated services usually consists of :

Transport service (aircraft seats)

Accommodation at the destination

Transfer between hotel terminal or intercity

Excursions or sight-seeing

Car hire on the destination

Entertainment or performances services.


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Cost saving probability in order to

increase profit

Chartering of entire aircraft instead ofpurchasing a block seats on a scheduled flight.

Using time series charters, aircraft were leasedover longer periods of time rather than for adhoc journeys.

Productivity achieved through high load factors

- the number of seats on each aircraft actuallysold as a percentage of total capacity.

Maximize the utilization of the aircraft during itsperiod of charter.


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Other revenues to increase profit besides commission

The revenue as a result of the time lapse occurring betweencustomers paying for their trip and the tour operatorsobligations to settle their accounts with their principles.

The profits achieved through the sake of ancillary service, such

as : Duty free gods sold on board

The package insurance policies

The sale of optional excursions

Car hire at the destination

The revenue achieved by the imposition of cancellation charges. The profit gets through the judicious buying forward of foreign

currency at times where exchange rates are favorable.

The profit as result from direct selling instead through travelagent as mediator (avoiding payment of agency commission).

Tour pricing


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Tour pricing

Total tour components costs per person .

Add mark-up .

Selling price .

Mark-up can be in the calculation of :

To cover marketing and administrative cost

To cover the agency commission

To cover the desired profit (gross)

Or

To cover marketing and administrative cost

To cover the desired profit (gross)

On this matter, agency commission should be calculated separately.

In developing a pricing strategy for package tours, the tour operator musttake into account a number of variables which has influences on pricing,such as : types of product, special reduction, a subsidized fare, high/lowseason price, etc.

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Types of operator


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Types of operator

Mass market operators. Sell large numbers ofinclusive bay air and/or coach.

Domestic operators. Those who assemble andsell inclusive tours to a destination within thecountry in which the tourist reside. Canoperate as :

Domestic tour for domestic people Incoming tour for foreign people

Types of operator


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Specialist operators. May range from local travel agentsorganizing an ad hoc tour for thirty local passengers up tobusiness offering long-distance inclusive tours to exclusivedestination.Specialists may be subsidiaries of carries or

accommodations, existing to provide a sales outlet for theorganizations products. It is convenient to group into :

Inclusive tours to particular destination

Inclusive tours from specific generating areas

Inclusive tours which is using a specific accommodation Inclusive tours which is using specific transport

Inclusive tours offers a special interest people

Types of operator

Th t b h


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The tour brochure

The brochure becomes the principle means of :

Informing people about the product

Persuading people by purveying dreams to purchase it.

The production of the tour brochure represents amajor proportion of a tour operators marketingbudget. It is essential to see that this enormousexpenditure achieves the intended results.

The first task of a brochure is to attract the attentionof the consumer. To gain attention, operators havedeveloped a house style in which multi colors coverscombine with an eye-catching symbol and housename across the top of the brochure to obtain

maximum impact.


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The brochure at least should contain the

following information

The name of the firm responsible for the inclusive tour

The means of transport used

Full details of destination, itinerary and times of travel

The duration of each tour Full description of the location and type of accommodation

provided, including meals

Whether services or representative are available abroad

A clear indication of the price for each tour

Exact details of special arrangements Full condition of booking and cancellation

Details of any optional or compulsory insurance coverage

Details of documentation required for travel to the destinations.

The tour reservation system


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The tour reservation system

The design of the system will depend on :

The manual system of reservation

The computer system of reservation The selling system of product : Direct selling

Through retail travel agent

Through a combination of these two system.

Note : All reservation system is to get a clear,accurate and fast confirmation.

N ti ti ith i i l


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Negotiation with principles

The airline. The negotiation was made in order toearn contract with spell out the conditions of :

The release of unsold

The cancellation The settlement

Rate or special contract fare

Ensure the available capacity.

The hotels. Hotel negotiations to be distinguishedinto :

Small and specialist tour operator with a free sale agreement

Long terms contract, for a big tour operator with a block ofroom system.


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On the negotiations process with hotel

industries, tour operator seek to get clear on :

Reservation and registration procedures

Accommodation requirements for any

representatives or couriers. Handling procedures and fees charged for port rage.

Special facilities available or need

Language spoken by hotel staff

System of settlements and the contract rate

System of payment for personal/guests account

1. travel agency

Documents