Group 1
Chapter 1 (Philippine Tourism Industry)
Origin Of Travel Agency
-The modern travel agency first appeared in the
second half of the 19th century.
-Thomas Cook, in addition to
developing the package tour,
established a chain of agencies in
the last quarter of the 19th century,
in association with the Midland
Railway.
-They not only sold their own tours to the public, but in addition,
represented other tour companies.
-Other British pioneer travel agencies were Dean & Dawson, the
Polytechnic Touring Association and the Co-operative Wholesale
Society.
- The oldest travel agency in North America is Brownell Travel; on July
4, 1887, Walter T. Brownell led ten travelers on a European tour, setting
sail from New York on the SS Devoni.
Operations of Travel Agency
-A travel agency's main function is
to act as an agent, selling travel
products and services on behalf of
a supplier.
- Consequently, unlike other retail businesses, they do not keep a stock in
hand. A package holiday or a ticket is not purchased from a supplier unless a
customer requests that purchase.
- The holiday or ticket is supplied to them at a discount. The profit is
therefore the difference between the advertised price which the customer
pays and the discounted price at which it is supplied to the agent. This is
known as the commission.
-In many countries, all individuals or companies that
sell tickets are required to be licensed as a travel
agent. In some countries, airlines have stopped giving
commission to travel agencies. Therefore, travel
agencies are now forced to charge a percentage
premium or a standard flat fee, per sale.
-However, some companies still give them a
set percentage for selling their product. Major
tour companies can afford to do this, because
if they were to sell a thousand trips at a
cheaper rate, they still come out better than if
they sell a hundred trips at a higher rate.
Organization Of Travel Agency
Travel Agents - is a person whose job it is to
arrange travel for clients (individuals, groups, and
corporations) on behalf of suppliers (hotels,
airlines, car rentals, cruise lines, railways, travel
insurance, package tours). His task is to simplify
the travel planning process for their customers in
addition to providing consultation services and
entire travel packages.
-An Agent can be self-
employed, work for an
independent travel agency, or
be part of a Travel Agency
Consortia. Travel agents may
specialize in leisure, business
and/ or other travel markets.
They may be generalists or
specialists. The agents typically
receive a 10 to 15% commission
from accommodations,
transportation companies and
attractions for coordinating
the booking of travel.
-Although booking a hotel or trip through a
Travel Agent saves time, nowadays the number
of Travel Agencies is decreasing due to the
strong online presence of the suppliers (hotels,
airlines) themselves.
OTAs are the (new) online form Agency.
-The businesses in this sector can be broadly
split into the independent travel agencies and
the multiples that are owned and operated by
tour operators and other tourism concerns.
Four basic principles characterize success in each:
1. good quality customer service
2. good management
3. In terms of management, controlling costs,
ensuring highly motivated staff are employed and
building upon a customer base through word of
mouth are all critical.
4. The independent agencies, which are manager-
owned and typically employ fewer than five staff,
contrast with the larger chain agencies, located in
prominent high street or shopping mall locations,
which have high passer-by traffic.
Philippines' Leading Travel Agency
-2GO Travel.
-Golden Sky Travel and Tours.
-Scorpio Travel & Tours.
-TravelOnline.
-WOW Philippines Travel Agency.
Tourism Industry –
a composite industry and
entities, both public and
private, involved in planning,
development, marketing, sales,
operation and evaluation of
destinations, products and
services that cater the needs
of the travelers both foreign
and domestic.
Planning and development of destinations - planning
and development of a specific tour product, often
undertaken by individual private sector entities.
The Marketing of the Philippines and various
destinations - primarily undertaken by the government
sector
Private entities - undertake the marketing and sale of
specific products and services.
Operation of tour products - primary role of the
private sector
Delivery of tourism services - a joint function of
both the government and private sector.
The evaluation of tourism results - government and
the private sector undertake the evaluation of
tourism results vis-a-vas predetermined specific
objectives.
Philippine Tourism industry caters to the needs of
foreign and domestic travelers. (overnight stay,
tourists, pilgrims, delegates, students etc.)
REPUBLIC ACT 9593 KNOWN AS TOURISM ACT OF
2009 IMPLEMENTING RULES AND REGULATIONS
The Department of Tourism (Kagawaran ng Turismo) - 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 allocation of resources that will
help in making effective economic decisions.
The Philippine Tourism Office (PTO) is the primary planning,
programming, coordinating, implementing and regulatory government
agency in the development and promotion of the tourism industry
both domestic and international. It shall instill in the Filipino the
industry's fundamental importance in the creation of employment,
investments and foreign exchange.
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 LGU's, 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
preservations 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 integral marketing program and represent the government in all tourism
conferences and enduring the gov'ts 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 LGU's in destination development, standards setting
and regulatory enforcement; and monitor the LGU's 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, facilitate the process of obtaining travel
documentation and monitor conditions on any destinations and issue timely advisories on the
safety or viability of travel.
Philippine Tourism Promotion Board (TPB)
Mandate
The TPB shall be responsible for marketing and
promoting the Philippines domestically and
internationally as a major global tourism destination,
highlighting the uniqueness and assisting the
development of its tourism products and services,
with the end in view of increasing tourist arrivals and
tourism investment. Specifically, it shall market the
Philippines as a major convention destination in Asia.
Functions
● The Tourism Board shall have the following powers and duties:
● Organize the PTPB in a manner most efficient and economical for the
conduct of its business and the implementation of its mandate;
● Develop and implement a plan to market the Philippines as a premier
tourist destination.
● 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.
● Develop and promote the Philippines as a centre for international meetings, incentive
programs, conventions, exhibitions, sports and wellness, medical tourism and other
special events.
● Engage in the business of tourism and perform acts in consonance there with, such as,
but not limited to, creating subsidiaries in support of its marketing functions in
partnership with the private sector;
Functions
● Contract loans, indebtedness and credit, and issue commercial papers and
bonds, in any local or convertible foreign currency from international
financial institutions,
● Execute any deed of guarantee, mortgage, pledge, trust or assignment of
any property for the purpose of financing the programs.
● Receive donations, grants, bequests and assistance of all kinds from local
and foreign governments and private sectors and utilize the same.
● Extend loans through government banks and financial assistance for
manpower training, heritage preservation, infrastructure development and
other programs of the Department
● Obtain the services of local and foreign consultants and enter into
contracts locally and abroad in the performance of its functions; and
● 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.
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 the Media plan:
Digital Campaign
• With BBDO Proximity, in September 2012, the TPB launched the
website www.itsmorefuninthephilippines.com. The TPB’s intention is
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 to 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, and strengthening the Department of Tourism and its attached
agencies to effectively and efficiently implement that policy, and appropriating
fund thereof.
The Tourism Infrastructure and Enterprise Zone Authority or TIEZA (formerly
Philippine Tourism Authority), an attached agency to the Department of
Tourism, is mandated to:
• To designate, regulate, and supervise tourism enterprise zones established
under R.A. 9593
• To develop, manage and supervise tourism infrastructure projects
nationwide
• To provide technical and financial assistance to qualified tourism projects,
investors and proponents (both government and private)
• To generate revenues to fund both national and corporate developmental
needs and/or undertakings.
• 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 Corporation is a government
corporation that operates the duty ax-free merchandising
system in the Philippines to augment the service facilities for
tourist and turning Filipino travellers to generate foreign
exchange and revenues for the government.
Power and Function of Duty Free
-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 in TEZ.
-Authority to operate stores within the international air and seaports
-Operate without any prejudice to any privatization in the future.
Tourism Coordinating Council
-Serves as the coordinating body for national tourism
development effort.
Function of 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
its functions
The Local Government Units
-The LGU is empowered to regulate the
establishment and operation of travel
agencies.
Summary of Power of LGU Tourism
Responsibility of LGU Tourism officers
1. Preparing, implementing, coordinating, monitoring, and up-dating
local tourism and development plans.
2. Ensuring the enforcement of tourism standards, laws, rules and
regulations.
3. Submission of regular tourism-related reports.
4. Coordination with the department and its attached agencies in the
development and promotions of tourism in the locality.
Other National Government Agencies
● Department of Transportation and Communications (DOTC)
● Civil Aeronautics Board (CAB)
● Civil Aviation Authority in the Philippines (CAAP)
● Air Transportation Office (ATO)
● Maritime Industry Authority (MARINA)
● Philippines Ports Authority (PPA)
● Land Transportation Franchise and Regulatory Board (LTFRB)
● Department of Public Works and Highways (DPWH)
● Department of Environment and Natural Resources (DENR)
● Department of Foreign Affairs (DFA)
● Department of Trade and Industry (DTI)
● Department of Interior and Local Governments (DILG)
● Philippines National Police (PNP)
● Department of Justice (DOJ)
● Department of Finance (DOF)
● Bureau of Internal Revenue (BIR)
● Bureau of Customs
Private Sectors in Tourism
Six Principal Industries directly involved in Tourism:
1. The Transportation Industry.
2. The lodging Industry or hostelry industry.
3. Food & Beverage.
4. The Activities and Attractions Industry or Entertainment Industry.
5. The Travel Trade.
6. Other Private Sector Entitles.
Industry Suppliers
Lodging Industry
-It features various kinds of luxurious hotels to lavish resorts and
campgrounds.
Examples:
• Hotels • Resorts
• Spa
Other examples:
-Motels
-All Suite Hotels
-Convention Hotels
-Space Hotels
Food and Beverage Industry
Examples:
Restaurants Travel Food Service
Institutional Food Service
Form of service to the way food and beverage is
presented to the guests.
Other Examples:
-Cafeteria Service
-Quick counter
Table Service Buffet Service (Catered) Service
-Take out service
-Delivery Services
“Meals on wheels”
Banquet Table Service Room Service
Attraction and Activities Industry
- Also referred to as the entertainment, recreation, and leisure sector.
Natural Attractions
Examples:
Pangasinan’s Hundred Islands Albay’s Mayon Volcano
Palawan’s Underground river Bohol’s Chocolate Hills
Manmade Attractions
Examples:
The Walled City of Intramuros Cebu Sto. Nino Cathedral
Ilo-Ilo’s Jaro Cathedral
Thankyou for
Listening!
