Travel Agency Operation

1. Travel Agency Institute of Human Resource Advancement University of Colombo Diploma in Executive Diploma in Tourism Events, Hospitality Management (EDETHM) Academic Year 2015 / 16 Presenter – A. Praveen Raj St No - EDTEHM/01/15/25

2. What Is a Travel Agency A travel agency is one that provides travel and  tourism  related  services  to the  public  on behalf of  suppliers  such as  airlines ,  car rentals ,  cruise lines ,  hotels ,  railways , and  package tours . A travel agency's main function is to act as an  agent , selling travel products and services on behalf of a supplier . The holiday or ticket is supplied to the agency 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 .

3. Basic Organization Structure Chairmen & CEO Managing Director Director / General Manager Reservation / Trave l Dep Advertising & Marketing Department Finance Department Outbound Dep MICE DEP HR DEP Tour Consultant Tour Guide Outbound Inbound

4. Duties and Role of the Department

5. Reservation / Tour Operation Department Offer best deals with competitive rates Tailor-made group programs to include original sightseeing with best value hotels as per requirements and prepare Colorful , timed and detailed itineraries Select Professional , knowledgeable, comprehensible and enthusiastic guides services Arrange Deluxe air conditioned motor coaches with professional drivers for tour as per client need. Follow-up enquiries, quotations, after sales, relationship building with agents Follow-up with destination offices related to costing, quotation, invoicing & ground handling Business generation responsibility for all segments. Reporting & follow-ups and do the relevant Hotel / Travel booking for the Client / Agent

6. Human Resources Department Recruitment and selection process Training and Development process Use financial management skills, such as overseeing budget Co-ordinate merchandising functions through retail buyers Research new products

7. Sales, Marketing & Advertising Department Developing new business/products/services and generating new sales lead Responsible for sales of Travel related services to Travel Agents Maintain relationship with existing clients & generating new clients to develop business Coordination with operation team for pre sales & post sales requirement The targets have to be set for each segment (SBU) and have to be distributed as per agency. It has to be evaluated every quarter To follow up on the targets and support the agencies to reach the targets To circulate all promotions and tariffs if at all published To target markets where the company needs to build up market share To plan appointments before visiting outstation

8. Accounts/Finance Department Maintaining and checking all books of accounts including Bank-books, General-Ledger, bank-statement, Trial-balance. Ensured and check all entries of system Preparing monthly departure wise / group wise profitability and sharing with the Management . Support and finish related task of accounts and monthly reconciliation of Branch, Debtor, Supplier, Bank and Head Office Accounts . Handling & Analyzing Accounts payable and Receivables entry with clients and conduct variance analysis . Maintain, scrutinize and review general ledger and prepare financial statements . Analyze Balance Sheet, P & L accounts and prepare Trial balance at monthly & year end . Control on Financial issued related to expenses, cash, and payment

9. Mice and Special Events Department Theme party & themed event organization Creation of team-building activities VIP Program development & implementation Custom-designed daytime activities & tours Award program design & organization, Stage Design, audio-visual equipment management & technical support Selection of room gifts, decoration & production of souvenirs Coordination of accommodations & in-house activities

10. Process Of a Travel Agency & Identifing the Expences and Income with a System Of Control

11. PLANNING AND DEVELOPMENT ASSESS PREVIOUS YEARS PERFORMANCE Proft margins Market position Customet statisfaction data Developments in destinations MAKE MARKETING PLANS FOR EACH HOLIDAY SERVICE/BRAND Market research data Profits and market share projections New destinations to be launched Prices, terms and discounts for each brand Make product plans for each service/brand What types of services are on the market Success rates of service types/destinations Destination research Policy decisions on brochure production Destination selection Profits and revenue forecasts Natural/Cultural characteritics Health and Safety standards Security and infrastructure Incentive/education trips for : agents and employees Suppliers New destinations to be introduced Policies for strengthening brand loyalty Policies for strengthening supplier relationships 01

12. CONTRACTING Contract for Accommodation Price Service/brand characteristics Conditions for release of unsold rooms Health and safety standards Insurance contacts Contract for Transport for traveling to and from Destinations Charter rights Distance and serving routes Conditions for cancellations/release of unsold capacity Insurance contacts Contract for transport included in package and tour Speed/distances involved Confort and convenience Price Brand/service characteristics Insurance contracts 02

13. Contract for Supplementary Services (attractions, leisure svs, guides, instructors, etc.) Commission rates Experience, reliability, trainning Price Insurance contracts Previous contracts Tender for design and printing of brochures and price lists Number to be printed Paper type and weight Binding and packaging Design features

14. Establishing the prices at which different holiday services will be retailed with brands S ubcontract reservations and call centre services Complete contracts of transport, accommodation and supplementary services Costs of services purchased Markup to cover overheads and profits Overheads allocated to each services Competitors prices Experience Language ability Previous contracts Satisfactory health and safety inspection Price Conditions for the release of unsold capacity PACKAGING 03

15. Compile and distribute customer satisfaction questionnaires Recruit and train seasonal employees such as guides, hostesses, chauffeurs, animators, instructors, etc. Experience and qualifications Language ability Previous contracts

16. Brochures on the market, storage and distribution to agents/corporate retail outlets MARKETING / SALES AND OPERATIAON On time delivery Correlate delivery quantity to sales record Launch agency promotions, and media and trade press advertising Marketing objectives of each brand Demand and price elasticity Strength of competitors Characteristics of target markets 04

17. Sell Holiday packages/services direct: retail outlets, phone, and Internet Indirect: Independent travel agents Invoice customers/ Agents Prepare and distribute travel documents (tickets, vouchers, travel tips)

18. Handling of Customer / ageny complaints Ensure prompt handing procedures Type and nature of complaint Compensation policies Evaluation of customer satisfaction questionnaires Appraisal of the season Revenues and profit Level of customer satisfaction Market penetration of new services and brands Supplier issues EVALUATION 05

19. Income and Expenditure Of The Travel Agency Shown in a Statement Form

20. Revenue (+) 01. Tour Package Income xxx 02. Transport / Hire Income ___xxx___ Total Income xxxx Cost Of Sale (-) 01. Accommodation / Airline Ticket Payment Expense (xxx) 02. Transport / Hire Payment Expense __(xxx)__ __(xxx)__ Gross Profit ( Revenue – Expense) xxx Other Income (+) Dividend Income, Interest Income, Exchange Gain xxx Other Expenses (-) Administrative Expense – ( Salary, Rent, Electricity, Stationery, Etc ….) (xxx) Marketing Expense – (Travel/ promotion Expense, Agent Entertainment, Etc..) (xxx) ___(xxx)___ Nett Profit ___xxx___

21. Sample of Mistake on Accounts and a Control to Solve It Client has booked a Tour Package and We have invoiced him wrongly at a higher value – (Invoice Raised) also the client has made the payment – (Payment Receipted). We will have to Refund the Payment Create a Credit Note Reduce it as Over payment at the Income Statement Raise a Cheque to Refund the Over Payment To The Client By ( Deposit / Pay it in Hand)