TRAVEL MANAGEMENT COMPANIES AND
TRAVEL AGENCIES (TM)
LEARNING OUTCOME 1 – Describe the Travel Management
Companies and Travel Agencies
OBJECTIVES
• At the end of the lesson, you are expected to:
– 1. describe what is travel and tour agency;
– 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.
Have you ever tried to plan for your travel vacation? It
seems to be a very exciting activity but you might end up
disappointed in dealing with difficulties on how and at what
point you can start. There are so many concerns that should
be arranged and rigid matters to research on in travelling;
whether looking for the best travel destination in magazines
or internet that can satisfy your limited budget, securing for
the necessary travel documents, plus the hassle of packing
your clothes and personal necessities
• It is really a good thing that there are travel management
companies and travel agencies that can guide, plan, and
coordinate the plans for your dream vacation. Consulting a
travel company is the best solution especially for beginners
like you. Travel companies will surely find the best travel
deal that suits your needs. 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.
THE NEW TREND
• Innovations brought by the computer technology
have great impact on the way travel agencies
function nowadays. Through the internet, people
can already book their flights directly with airline
companies, reserve for rooms on different hotels
through the Computerized Reservation System
(CRS) and a Global Distribution System (GDS).
This time, travel agency is no more an agent for
the vendor or a seller to the vendee; but a
partner to both of the parties. They are now
called as Travel Management Company (TMC).
A TMC is responsible for providing assistance to the vendees
in terms of finding the best supplier of travel products that
can satisfy their needs at their convenience and with their
purchasing power. TMCs conduct evaluation of the vendee to
determine preferences and budget then find the best match
based on the vendors audited assets. TMCs will also manage
and negotiate with all travel processes of the vendee. In
return, TMCs will explain and charge a professional fee from
the vendee or the ―cost-plus‖. Unlike ―netplus‖, the
―cost-plus‖ is openly communicated to the vendee
Which of these ways do you think would be the best thing to do to find
the best travel deal that suits your budget: browsing the magazine,
searching the internet, or consulting a TMC/travel agency? Majority of
you might choose the second option which is browsing the internet. Well,
you are right that the World Wide Web is really a good source to search
on and many travelers today transact their travel deals online. However, it
is also true that many travel deals posted on some websites are only
scams or may have some hidden charges behind the declared deal rates.
In this case, you would need somebody or an expert to help you out in
finding the right travel deal that will not go beyond your budget such as
travel management companies or travel agencies.
HERE ARE SOME OF THE ADVANTAGES THAT CUSTOMERS
MAY GET FROM BOOKING IN A TRAVEL AGENCIES:
– 1. They are experts in their field – Travel agents will surely find the best
travel solution since they are professionals in doing this kind of job
everyday.
– 2. They conserve time and effort for you – They gather information from
suppliers and clients, arrange company agreements, coordinate details of
the travel plans and file the needed documents. You have nothing to
worry about because somebody is doing the task for you.
– 3. They know the best supplier – Travel management businesses have a
wide range of company linkages and profiles. They compare price rates
and marketability of the travel products form one company to another and
will not stop until they find the most economical and desirable deal for
you.
– 4. They take charge of responsibilities - Whenever things go wrong,
conflicts are immediately resolved by the company since travel agents
have direct attachments to customers. Unlike online travel transactions,
there is no guarantee the your problems will be addressed since some
hotline centers of online agencies may either be understaffed or not
existing at all.
