HE001-Home Economics Literacy

Learning Module

Travel Services
Rolando De Garcia

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 PREFACE

This Module will help you to understand what is Travel services and Its function and
how they going to help you to your distention and how does Travel services support
industry development and the delivery of guest experiences Travel agencies, Online travel
agencies, Tour operators and Destination marketing organization A travel agency is a
business that operates as the medium between the travel industry The agency can further
function as a broker between the traveler and hotels, car rentals, and tour companies A tour
operator packages all or most of the components of an offered trip operator who packages
suppliers together hotel + activity or specializes in one type of activity or product Tourism
services other services that work to support the development of tourism and the delivery of
guest experiences Travel agency a business that provides a physical location for travel
planning distention.

Also in this module you will understand what requirement you need to travel what things
have to remember for your destination and this are some example Receipts, Service
Voucher/s, Tickets, Travel documents (passports, visas, immigration clearances, etc),
Insurance Certificates, Information packs, Travel reminders, Updated brochures, Updated
maps, Updated Official Hotels & Resorts Guide, Official Cruise line Guide ,Official Train
Guide, Updated Destination Travel Planner, Updated Official Airline Guide. Hope you this
module help you to travel safe on your destination

I would like to express my special thanks of gratitude to my teacher the gorgeous Nona
Nagares thank you for giving us so much time to do this module Travel services And also
Would like to thank my self for finishing this work your so amazing I'm proud of you to my
friend who help me in doing this Research you are the reason that I finish this work by
barrowing your laptop thank you and I'm just lucky I Learn new many things specially about
travel services and lastly To my parent That I love the most thank you for your love and
support and to God also all glory upon the king of the world thank you.

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 TABLE OF CONTENTS

Preface……………………………………………………………………………… ……..2
Table of Contents………………………………………………………………….………3
What is this module about?.......................................................................................4
How to use this module?...........................................................................................5

Lesson 1: THE PHILIPPINE TOURISM INDUSTRY (PT)

Learning Outcome 1 Understand the Vital Function of the Philippine
Tourism Offices……………………………………………………….……….6-13
 Review of Learning outcome 1………………………………….13-14
Learning Outcome 2 Describe the Role of the Private Sector in the
Philippine Tourism
Industry…………………………………………………………...15-21
 Review of Learning outcome 2…………………………………..22-24
Lesson 2: Travel MANAGEMENT COMPANIES AND
TRAVEL AGENCIES (TM)
Learning Outcome 1 Describe the Travel Management Companies
and Travel Agency………………………………………………………25-27

About the Writer…………………………………………………………………..30

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 WHAT IS THIS MODULE ABOUT?

Welcome to the world of Travel Services!

This Module is an exploratory course which leads you to

Travel Services1. It covers 3 common competencies:

1. Participate in workplace communication.

2. Work in a team environment
3. Solve/address general workplace problems

These 3 common competencies are covered separately in 1

Lesson. As shown below, each Lesson is directed to the attainment
of three learning outcomes:

Lesson 1: The Philippine Tourism industry (PT)

 LO1: Understand the Vital Function of the Philippine Tourism
Offices
 LO2: Describe the Role of the Private Sector in the Philippine
Tourism Industry

Lesson2: Travel Management Companies and Travel Agencies (TM)

 LO1: Describe the Travel Management Companies and Travel
Agencies

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HOW TO USE THIS LEARNING MODULE?

Here are some reminders for you as you use the

modules. Be sure to take note of them.
1. A diagnostic test precedes the activities in this learning
material. Prepare answer sheet where you can
accomplish the tests in each learning episodes.
Complete the diagnostic test first before you go
through the activities. The diagnostic test determines
how much you know about the lessons in the learning
material and identifies the areas you ought to learn
more. Your teacher will assist you to check and to
analyze your score in relation to your learning needs.
2. Each learning material has a sequence of activities. It
contains integrative and relevant information worthy of
learning prescribed competencies and performing the
necessary tasks. Go over each activity carefully. If you
encounter difficulties, do not hesitate to consult your
teacher for assistance. Do not skip any topic unless
you are told to do so. REMEMBER that each activity is
a preparation for the succeeding activities.
3. For every lesson/learning outcome an enhancement
activity follows to help enrich the knowledge and skills
you have gained.
4. When you have successfully finished all tasks in the
learning material, answer the post test to be given by
your teacher. Your score will be analyzed and will be
used by your teacher for the computation of your
grade.
5. Lastly, DO NOT mark the learning material in an

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Icon for
Learning Learning Outcome 1 Understand the Vital Function of
Outcome
the Philippine Tourism Offices

Objectives

At the end of this lesson, you are expected to:

1. explain the role of National Tourism Office, its attached

agencies, and Local Government Unit in the tourism
industry;
2. define the role of the various sub-sectors that comprises
the tourism industry; and
3. recognize the vital functions of each government agency
in managing and developing the Philippine tourism.

The main responsibility of the government is to provide general

policies and regulations which will be complied by tourism sectors and sub-
sectors. Implementing guidelines set by the government may pertain to
regulations of tourism establishments and investment, operations of the
tourism facilities, development of travel destinations, training and
development for tourism personnel, channel of communication among tourism
agencies and private sectors, provisions for researches, statistics, and
publication, marketing and promotions of tourism activities and others.

Government Agencies Involved in Managing

the Tourism Industry

1. Department of Tourism (DOT)

By virtue of Presidential Decree No. 189, the

Department of Tourism was institutionalized in 1973. It
was reorganized through Executive Order No. 120 in
accordance with Article II, Section 1 (a) and Article III of
the 1986 Constitution. DOT is the prime tourism agency
mandated to plan and set the fundamental policies involving the tourism
sector, coordinate the policy to other tourism agencies and become an
administrative entity for the executive branch of government.

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The DOT has the power to effect the following functions::

a.) hold meetings and conferences pertaining to tourism
b.) amend travel regulations and guidelines
c.) review all government projects concerning tourism
d.) issue licenses to tourism personnel such as tour guides, travel
agents, and travel operators
e.) regulate, supervise, and license all tourism sub-sectors such as
hotel, motel, restaurant, resorts, and others

Organizational Structure of DOT

The agency is headed by its Secretary of Tourism with a cabinet

rank. The cabinet secretary is assisted by the four undersecretaries and an
assistant secretary in overseeing the stability of the tourism industry in the
country. Each of them has definite functions and responsibilities.

Secretary of Tourism

Undersecretary for Undersecretary Undersecretary

Planning, Product for Tourism for Tourism
Development and Promotion Services and
Coordination Regional Offices

Assistant secretary
for Internal Services

 Undersecretary for Planning, Product Development and

Coordination
All of the department undertaking concerning researches, surveys,
recommendations for future plans and policies, coordination and assistance
in the implementation of tourism-related projects, and formulation of tourism
statistics are within the jurisdiction of the Undersecretary for Planning,
Product Development and Coordination

 Undersecretary for Tourism Promotions

The function of the office primarily is to deal with public-relations,
marketing of tourism activities and projects, provide assistance to private
sectors, organize events promoting the country‘s finest destinations, and

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dissemination of tourism information of the country and its products. It is

the duty of the Undersecretary for Tourism Promotions to create good
impression in the eyes of foreign visitors for the Philippines.

 Undersecretary for Tourism Services and Regional Offices

The formulation of tourism standards, approval in the construction
of tourism establishments and facilities, accreditation of travel agencies,
coordination and supervision to all Regional Offices are the major
responsibilities of this office. Through the regulations set by the DOT, the
Regional Offices will then act for its implementation in coordination with
the other Regional Offices, government offices and Local Government
Units (LGU)

 Assistant Secretary for Internal Services

The office of the Assistance Secretary for Internal Services
performs the administrative services and support (personnel information,
communications, record keeping, etc.), financial and management
services (budgetary and accounting concerns), and legal services and
litigations in assistance to the staff and other related matters that may be
assigned by the Secretary of Tourism.

2. Philippine Convention and Visitors Corporation (PCVC)

The Philippine Convention and Visitors Corporation is a non-profit

corporation that aims to promote the Philippines as one of the prime tourist,
convention, and incentive travel destination in the world. It is the country‘s
tourism arm in the domestic and international market. In order to attain this
goal, PCVC adopts an Integrated Tourist Marketing Plan that guides that
industry in strengthening promotional campaigns through marketing
research, skills development of marketing representatives, build mutual
linkages among private sectors to effectively implement the marketing
activities, and reaching the tourism products to local and foreign consumers
through participating in travel trade expositions and media advertisements.
The agency was formerly named as Philippine Convention Bureau
which was created in 1976 through the Presidential Decree No. 867. In effect
to the reorganization of the Department of Tourism in 1987, it was then
renamed as Philippine Convention and Visitors Corporation by virtue of
Executive Order No. 120-A.

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Organizational Structure of PCVC

The Secretary of Tourism is the Executive Director of PCVC. Together
with the chairperson are the nine (9) Board of Trustees who are drawn from
both government and private sector that holds relevant organizations
involvement in the marketing and development of the travel industry in the
Philippines.
Travel Trade

Conventions Advertising
and Incentive and
Travel Publications
PCVC

Corporate Foreign
Affair Offices

The organization is structured into five distinct units that functions in

accordance with the PCVC Integrated Tourist Marketing Plan, namely:
 The Office of the Travel Trade
 The Office of Conventions and Incentive Travel
 The Office of Corporate Affair
 The Office of the Foreign Offices
 The Advertising and Publications Department

3. Philippine Tourism Authority (PTA)

Pursuant to Presidential Decree No. 189 and amended by Presidential

Decree No. 564 in 1973, the Philippine Tourism Authority is a government-
owned corporation that acts as the policy implementing body of the
Department of Tourism to better realize the tourism standards, collect taxes
as may be imposed by the law, and provide and maintain tourism facilities
and infrastructures.

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Vision
The PTA is envisioned to be a self-government corporation,
contributing to the national development objectives, serves as the epitome of
public service as it pioneers sustainable, environmentally responsible,
socially responsive and culturally catalytic tourism development.

Mission
The PTA is committed to effectively and efficiently implement
sustainable tourism development undertakings as guided by the following
national development thrusts: cultural awakening, countryside development,
environmental conservation, foreign exchange generation, employment
creation, and poverty alleviation.

Functions
The functions of the PTA are:
1. To develop identified priority areas: Areas with vast tourism
potentials that are programmed for priority development as identified by DOT
under its Tourism Master Plan (TMP).
2. To operate, maintain, and promote facilities in pioneering capacity:
Solely owned or thru joint ventures, the PTA properties include resorts,
hotels, golf courses and other tourism facilities in the various areas of the
country.
3. To provide technical and financial assistance to qualified tourism
projects: Guidelines have been designed for project proposals to be
evaluated and recommended by the Corporate Planning Department for
priority development by granting technical and/or financial assistance.
4. To generate revenues to fund national and corporate development
undertakings: Travel tax collection is PTA‘s main source of income. Travel
tax is a levy imposed by the government on individuals (citizens of the
Philippines, and permanent resident aliens who have stayed in the country
for more than a year) who are leaving the country irrespective of the place
where the air ticket is issued and the form and place of payment, as provided
for by Presidential Decree No. 1183 as amended by Presidential Decree No.
1205, Batas Pambansa Blg. 38, and Executive Order No. 283 on travel tax.

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4. The Local Government Units

Republic Act No. 9593, also known as The Tourism Act of 2009,
clearly stated the shared responsibilities of the National and Local
Government to the Department of Tourism in implementing policies and
programs of the tourism sector.

― Section 118 – Coordination between National and Local Government

(a) The Department (pertaining to DOT) and the Department of
Interior and Local Government (DILG) shall integrate all local tourism
development plans by LGU in the formulation and annual updating of the
national tourism development plan.
(b) The Department shall provide assistance, training and other
capacity-building measures to the LGUs in the formulation, implementation
and monitoring of national tourism development plans, gathering of statistical
data and enforcement of tourism laws and regulations…

Section 119 – National Tourism Development Planning

The Department in coordination with its attached agencies, LGUs and
the private sector shall continuously update the national tourism
development plan taking into consideration the evolving needs and
capabilities of LGUs, approved local tourism development plans as well as
domestic and global tourism market trends.

Section 120 – Local Tourism Development Planning

(a) Pursuant to Republic Act No. 7160, otherwise known as the Local
Government Code of 1991, LGUs shall prepare, adopt, implement and
monitor their local tourism development plans, enforce standards for tourism
enterprises and collect statistical data for tourism purposes.‖

4. Other National Government Units

One important key indicator in the success of tourism is the

consistency of policies being implemented by the government at any
destination in the economic territory. Tourism takes place almost everywhere
at any point in time. As people travel more often, the more tourism sectors
are benefitted. In order to address the needs of tourists upon their visit in the
Philippines, there are national government agencies that are always ready to
provide assistance, comfort and security during their stay.

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 Securities and Exchange Commission (SEC) – all corporations and

partnership business entities are being registered, licensed, and
regulated by the agency.
 Board of Investments (BOI) – promotion of investment in the
Philippines is the task of this agency which is attached to the
Department of Trade and Industry
 Philippine Economic Zone Authority (PEZA) – it ensures that
foreign investors who wish to establish a business in the Philippines
will find a suitable strategic location.
 Bangko Sentral ng Pilipinas (BSP) – preserves monetary stability
and convertibility of the Peso which is an important factor in the entry
of foreign visitors to the country.
 Department of Transportation and Communication (DOTC) –
responsible for the regulation and supervision of the Philippine
transportation and communication system.
 Civil Aeronautics Board (CAB) – the government agency that
controls and supervises economic aspects of air transportation which
may include air carriers, monitor cargo sales agents, properties and
facilities.
 Civil Aviation Authority of the Philippines (CAAP) – implements
policies on aviation or air travel system in order to assure the safety of
travelers.
 Maritime Industry Authority (MARINA) – the counterpart of CAAP in
the maritime industry, the government agency that creates policy for
all means of transportation with regards to bodies of water.
 Philippine Ports Authority (PPA) – manages the operations and
financing of all public ports in the country.
 Land Transportation Franchising and Regulatory Board (LTFRB)
– issues, suspends and cancels certificates of convenience to all
public and transportation services.
 Department of Public Works and Highways (DPWH) – facilitates
the construction and maintenance of the transportation infrastructures
which include roads and bridges.
 Department of Foreign Affairs (DFA) – coordinates and builds
harmonious relationship among countries in all parts of the world.
 Bureau of Immigration (BI) – monitors the entry and exit of foreign
nationals in the country.

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 Department of Finance (DOF) – facilitates the collection of revenues

from the tourism industry
 Department of Labor and Employment (DOLE) – promotes
employment opportunities to Filipinos in the tourism industry.
 Department of Environment and Natural Resources (DENR) –
oversees the preservation of the natural environment.
 Philippine National Police – enforces peace and order in all tourist
destinations.

Review of Learning Outcome 1

A. MATCHING TYPE
Directions: Match the government agency in Column B with its
appropriate functions in Column A. Write your answer on the answer sheet.
Column A Column B
Government Agency Function
1. Philippine Tourism
A. Implements policies concerning
Authority
air travel safety
2. Department of Labor B. Enforces peace and order on all
and Employment tourism destinations
3. Philippine Ports Authority C. Promotes the Philippines as the
best convention venue
4. Department of Interior D. Generates job opportunities
and Local Government through the tourism industry
5. Securities and Exchange E. Monitors the entry and exit of
Commission foreign nationals in the country
6. Philippine Convention and Visitors F. Imposes travel taxes on individuals
Corporation for travel services incurred.
G. Registers and license all
7. Civil Aviation Authority of the
corporation and partnership
Philippines business in the Philippines
H. Manages the operations and
8. Department of Tourism financing of all public sea ports
I. Implements tourism policies on
9. Bureau of Immigration their constituents
J. Sets general policies for the
10. Philippine National Police tourism industry
K. Oversees the preservation of the
country‘s natural environment

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B. QUICKWRITES
Directions: Shortly explain the roles and responsibilities of the
following Department of Tourism offices.

Office of the Tourism Secretary

Undersecretary for Undersecretary for Tourism

Tourism Promotions Services and Regional Offices

Undersecretary for Assistant Secretary for

Planning, Product and Internal Services
Development and Coordination

SCORING RUBRICS FOR ASSESSING QUICKWRITES

2 – Beginning
4 – Developing
6 – Approaching
8 – Proficient
10 - Advance

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Icon for
Learning
Learning Outcome 2 Describe the Role of the Private Sector
Outcome in the Philippine Tourism Industry

Objectives

At the end of this lesson, you are expected to:

1. define the role of various sub-sectors of the private sectors

that comprises the tourism industry;

2. identify specific entities in the private sector and explain their

specific functions in the tourism industry; and

3. show interest in understanding how the private sector

contributes to the economic growth of the tourism industry in
the Philippines.

Have you ever experienced to travel? Where was your most distant
travel experience? Filipinos are really fun of going to places, mingling with
people of different culture, tasting delicacies in the regions, and explore new
places they have never been before.
We do travel for various reasons, some visit places for leisure, while
others travel for business purposes. Many travel for both leisure and business
such as when the board of directors of a certain company agrees to hold their
meeting in a beach resort in Puerto Galera, Oriental Mindoro; some
employees might decide to extend their stay for a couple of days to enjoy,
relax and escape from the everyday routine of their work.
Travelling nowadays has been made easier as compared before. With
just a few clicks in the computer, you can book for reservation, secure travel
documents, and then off you go to the desired destination. You will not worry
anymore of being stranded or being lost in places you have never been before
because there are tourism sectors, public and private transports that will
surely guide you on your way home in a safe and convenient manner.
For you to understand the role of the private sector in Philippine tourism
and travel, let us classify the sub-sectors into six (6) major travel-related
industries.

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1. Transportation Sector

Transportation is the gateway to the success of tourism; without roads,

bridges, sea vessels, and airplanes, travelling to far places will not be
possible. The transportation sector exists in various forms whether by air,
land, and sea.
By Air
During the beginning years of the airline
industry in the Philippines in 1960s, the industry
was contained in a ―one country, one plain policy‖;
making the Philippine Airlines as the virtual
monopoly in the airline sector. As the deregulation
of domestic airline industry took effect in 1970s,
many investors found interest to join in the growing business trend. At present,
travelers have better options to choose the right airline company that can
satisfy their travelling preference and finances.
Here are the list of some commercial airlines that have good service
reputation and compliant to the standards set by the Civil Aviation Authority of
the Philippines.
 AirAsia Zest
 Cebu Pacific
 Fil-Asian Airways
 PAL Express
 Philippine Airlines
 Philippine AirAsia
 Sky Pasada
 Spirit of Manila Airlines
 Tigerair Philippines
 SEAIR International

By Land
According to the National Statistics
Coordination Board, as of 2011 there are already
7,138,942 registered motor vehicles in the
country; this includes the 788,372 cars, 1,764,865
utility vehicles, 8,769 buses, 3,206,255
motorcycles/tricycles, and 291,746 trucks. For that

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particular year alone, the total passenger traffic had reached to 49,815,295. In
the year 2008, railway transports in the country had carried 346.1 million
passengers which comprises to a total of 4.6 billion pesos revenue.
All land transportation entities such as public bus companies, tour bus
companies, tricycle associations, rail transport companies, taxicabs and car
rentals belong to this sector. Here are some of the noted private land transport
companies in the Philippines:
 Public buses – Philtranco, Santrans, Victory Liner, Mega Bus Line,
Baliwag Transit, Bataan Transit Co.,Bicol Isarog Transport System Inc.,
Calamba Megatrans, Inc., Dagupan Bus Co., Dimple Star Transport
(Iloilo), Dominion Bus Lines, First North Luzon Transit, Five Star Bus
Company, Lucena Lines, Northstar Transport Inc., Philippine Rabbit,
Silver Star, etc.
 Railway Transport – Philippine National Railways (PNR), Manila Light
Rail Transit System (LRT-1 and MRT-2), Manila Metro Rail Transit
(MRT-3)
 Taxi and car rentals – Avis, Budget Rent-A-Car, Dollar Rent-A-Car,
R&E Transport, Nissan Rent-A-Car

By the Sea
There are also various modes of
transportation that can be experienced by
tourists in their journey to the waves of the sea.
Philippine Ports Authority revealed that in 2012,
there are a total of 49,998,936 passengers who
had travelled in the sea through shipping
vessels. The usual means is by travelling through shipping lines such as
Sulpicio Lines, Aboitiz & Co., and William Lines. But if you want better comfort
and relaxing ambiance, why not try travelling in a cruise ship. In shipping, the
vessel carries both the cargos and passengers with limited amenities and
facilities yet offers affordable travel fare; while in cruises, the vessel is solely
dedicated for passengers‘ comfort and one of a kind travel experience,
offering first class facilities and amenities, and flexible travel routes. Lastly,
traveling through the ferry will be the best solution for shipping in short-
distance trip such as from the entry point in Sorsogon crossing the sea to
Samar, or may be from Batangas City to Calapan City.

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2. Oil Companies
Oil companies play important role in the
tourism industry since the fuel is the core source
of energy in all modes of transportation that are
motor operated. All actions of the tourism
industry lie dependently to the oil companies in
terms of people and goods mobility from one
place to another. Furthermore, an increase in the fuel price will rapidly affect
the economic stability of the country. Among many of the oil companies that
can be named in every road of the country‘s territory, there are three major oil
players that stand out and significantly affecting the consuming public,
namely: Pilipinas Shell Petroleum Corporation, Chevron Philippines (formerly
Caltex), and Total Philippines (an independent oil firm). Union groups in the
country often call them as the ―big three‖.

3. Lodging Industry
As we always say, ―there is no place like
home‖. There is really no place in the world
indeed that could ever replace the comfort and
security that can be felt inside our own residence,
but what the lodging industry tries to offer is the
superb experience that you may remember for the rest of your life.
There are plenty of lodging establishments in the country that can
satisfy every guests needs for relaxation and delightful endeavors during their
stay. Filipinos are naturally hospitable that makes the lodging industry a very
competitive sector in the Philippines.
Lodging properties in various establishments vary depending on the
strategic location, luxury of facilities and amenities, number and size of room,
management standards, types of guests they cater and other factors.
 Hotel – Like any other lodging establishments, hotels provide short-
term accommodation services primarily as a comfortable place for
sleeping. For hotel guests, it is more than just a place where they can
spend the night but also a wonderful venue to experience luxury in its
amenities. Hotels can be categorized as:
o Resort Hotel – It has amenities and facilities that guests can use
for their recreation such as swimming pool, golf course, food
chains, fitness gym, etc. These hotels are usually situated near the
beaches, theme parks and tourist attractions.

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o Business/Corporate Hotel – This type of hotel have facilities

suitable for holding meetings, conferences, conventions, and other
business events, making the hotel as an extension of their
workplace but in a much lighter setup.
o All-Suite Hotel – It means that the hotel is open for all kinds of
dealings for as long as the properties and facilities are suitable to
the needs of the guests. These hotels have rooms larger than the
conventional type which are called as suites or junior suites. The
room has no concrete partitions between different areas of the
room such as between bedrooms and living room, only curtains as
barriers and in some cases, there are no barriers at all. These
make it ideal for group vacationers or families that need plenty of
space and prefer to spend time together.

 Motels (Motorist Hotel) – The concept of motel establishments

started to flourish in the 1920s when the lodging industry determined
the demand to address motor travelers‘ needs for inexpensive lodging
that are easily accessible to motoring public. The lodging
establishment was then called motel (derived from the words ―motor‖
and ―hotel‖) and can also be called as motor hotel or motor inns.

 Apartel – According to the Department of Tourism, apartel or

apartment hotel are ―any building or edifice containing several
independent and furnished or semi-furnished apartments, regularly
leased to tourists and travelers for dwelling on a more or less long term
basis and offering basic services to its tenants, similar to hotels.‖

 Condotel – It is the lodging establishment in between a condominium

and hotel that are also leased to tourists, similar to apartel.

4. Food and Beverage Industry

Physiologically, humans need food in

order to sustain their daily activities. Since the
tourism industry caters to people of different
nationalities, food and beverage industry is also
associated to it as a sustainable source of
income for many, as well as a means of introducing the rich culture of natives
in the place which are manifested in their cuisines.

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Specifically, food and beverage industry consists of various food

service entities such as:
 Restaurant – This consists of cafeterias, fast-food chains, coffee
shops, specialty restaurant, and full-service restaurant.
 Travel food service – This pertains to food service entities in airplanes,
cruise ships, trains, hotels and motels.
 Institutional food service – This describes the presence of food service
sector in companies, nursing homes and hospitals, and other service-
related entities.

5. Attractions and Activities Industry

Majority of travelers are looking for
places that will give them the thrill to discover
new things, exploring the breath-taking
sceneries of nature, be entertained in various
events, and appreciate artistic creations of
man. Tourist attractions and activities in the
place are really a big factor that pushes every
person to travel. For instance, when international superstars like Katy Perry
and Justine Bieber perform in a world tour concert at Araneta Coliseum, avid
Filipino fans would probably not leave this chance to meet their idols which
will cause them to buy tickets and go travel even if they are living from a far
away province of the country. Educational field trip in schools are also
organized to expose students from real thing learnings such as visiting
historical parks and landmarks, industrial plants and sites, amusement and
theme parks.
Tourist attractions and events in the Philippines mainly involve the
following activities:

1. Recreation – these are any facilities that will bring relaxation and
relieve stress to the visitors during their spare time such as amusement
parks, theme parks, resorts, casinos, fitness centers, bowling centers, spa
centers, etc.
2. Shopping – Aside from having a stress relieving effect and
acquisition of new items for personal belongings, the industry is a good
source of income for entrepreneurs. Facilities connected to shopping activities
are shopping centers and malls, souvenir shops, specialty stores, boutiques,
convenient stores, supermarkets, bazaars, and others.

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3. Entertainment – This pertains to any activities that catch the

attention of the audience through drama, music, dance, storytelling and
others. Facilities associated to entertainment are theater and movie houses,
concerts, sports events, festivals, etc.
4. Education – These are places and facilities that enrich the learning
of tourists in terms of culture, historical events and heroes, inventions,
innovations and technology. It includes historical parks and monuments,
relevant landmarks, museums, and others.

6. Other Private Sectors

The broadcast media has a vital role in motivating the public to
participate in the tourism industry of the country. According to the National
Commission on Culture and the Arts, 85% of the household have access to
radio in the Philippines, while 65% of household are entertained in their
televisions. Media have great impact in creating positive image to the tourism
industry and allows the public to gain information about travel destinations,
travel tips, legal documents, and other concerns. Here are other private
sectors associated to the broadcast media and tourism.
 Publishing Companies – printed ads serve as concrete guide and
evidence for travelers and tourists. It is the task of publishing
companies to ensure that the public is always updated of the new
trends and happenings in the tourism industry.
 ITC Service Provider – They act as a support group for different travel
organizations in producing electronic and printed manuals,
guidebooks, atlases, time table, and operational handbooks including
Computerized Reservation System (CRS) and Global Distribution
Systems (GDS)
 Marketing and Public Relations Organizations – These are private
entities that plan and manage marketing research, sales marketing
activities, and conduct place analysis for possible new markets.
 Event Organizers – These are sectors involved in the planning and
organization of events associated to tourism. They coordinate with
lodging establishments for venues of meetings, conventions, exhibits,
and other corporate activities of the client company.
 Miscellaneous Service – These are entities that might be apart from
the tourism industry, yet should be considered as affiliated sector
because of the essential services they cater for the tourist and
travelers. It includes the hospitals, nurseries, police, communication,
trash collection and disposal, insurance, and others.

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Review of Learning Outcome 2

A. MIX AND MATCH

Direction: Write the following tourism sub-sectors according to its
appropriate classification.

Condotel Hotel Public Buses Concert

Coffee shop Shopping Mall Amusement Park Apartel
Museum Motorcycle Restaurant Zipline
Taxicab Cafeteria Ferry Festival

Food and Attraction and

Transportation Lodging
Beverage Activities

B. QUICKWRITES
Direction: Shortly explain the difference between the two key terms
presented below.

Cruise Ship

Hotel Motel

Recreation/Leisure Entertainment

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SCORING RUBRICS FOR ASSESSING QUICKWRITES

2 – Beginning
4 – Developing
6 – Approaching
8 – Proficient
10 - Advance

Enhancement

SELF –ASSESSMENT QUESTIONS

Direction: Answer the following questions in any clean sheet of paper.

1. What are the vital roles of the government and private sectors in
the Philippine Tourism industry?
2. What will be the possible conflicts if the tourism policies of the
government are not communicated well to the public?
3. Given the chance to become the Secretary of Tourism, what
policies will you impose to better improve the Tourism Industry of
our country?
4.

Let’s Do it!
Research Time

Choose your desired topic to research on the internet.

Topic # 1: Puerto Princesa Subterranean River
Topic # 2: Tubbataha Reefs Natural Park
Topic # 3: Coron Island

Visit websites associated to the chosen topic and compile information

about the following areas:
1. Unique descriptions of the tourist destination
2. Government and NGO environmental protection programs
3. Role of the public in the preservation of the environment and
heritage sites

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Individual product/performance will be evaluated using the scoring

rubrics below:

Direction: OVER ALL EVALUATION

Level PERFORMANCE LEVELS
Let the teacher Achieved
assess your 10 - Can perform this skill without supervision and
product in the with initiative and adaptability to problem situations.
following critical
task and 7 - Can perform this skill satisfactorily without
performance assistance or supervision.
criteria. 5 - Can perform this skill satisfactorily but requires
some assistance and/or supervision.
3- Can perform parts of this skill satisfactorily, but
requires considerable assistance and/or supervision.

Instructor will initial level achieved.

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 LM-Travel Services HE001

LESSON 2 TRAVEL MANAGEMENT COMPANIES

AND TRAVEL AGENCIES (TM)

Icon for
Learning Learning Outcome 1 Describe the Travel Management
Outcome
Companies and Travel Agencies

Objectives

At the end of this 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.

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 LM-Travel Services HE001

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 Traditional Trend

In the traditional way of selling travel products, travel agencies act as
middlemen between the vendors and vendees. Vendors pertain to
commercial entities such as hotels, resorts, airlines, cruise and tour bus
companies, amusement parks, and others; travel agencies serve as the
agents to market their product or services offered. On the other hand,
vendees pertain to you or any person who buy the products offered by the
vendors; in this case, travel agencies provide guidance on customers.

Vendors/Commercial Entities

Middleman/Travel Agency

Vendee/Customers

Can the vendee go directly to the vendors to avail of their products or

services? The answer is yes; but as explained earlier, 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.
As stipulated in the law, travel agencies have the right to collect
commission from the vendor. This may range from 10% to 15% of the selling
price which can be defined as ―rate-minus‖. Aside from this, the travel agent

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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.

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).

Commercial Entities

Travel Management Company

Customers

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 ―net-
plus‖, the ―cost-plus‖ is openly communicated to the vendee.

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 LM-Travel Services Grade 10

Review of Learning Outcome 1

A. WORD HUNT
Direction: Mark the ten (10) hidden words in the puzzle below
based on the lesson discussed.

T R A V E L P R O D U C T P
N E T P L U S W L F W L K R
O V J B N K U F T I F N Z O
I K H W Y O N J B M O Y W F
S R C B F H I Y H D C F D E
S B W H Q W M I V N L T K S
I K I R T N E V E N D E E S
M L J O K I T G Q T W I W I
M T W D F D A B V F O L Q O
O V O N H L R J G D S F V N
C W Y E E N T W D L Y W T A
N J K V F B K Y K B K H J L
W I A D M I D D L E M A N F
Q R N W Z H W J O H J L W E
T F K B F S U L P T S O C E

B. QUICKWRITE
Direction: Differentiate the words in Column A from Column B.

Rate-Minus Cost-Plus

Vendor Vendee

Travel Agency Travel Management Company

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 LM-Travel Services Grade 10

SCORING RUBRICS FOR ASSESSING QUICKWRITES

2 – Beginning
4 – Developing
6 – Approaching
8 – Proficient
10 - Advance

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 LM-Travel Services Grade 10

ABOUT THE WRITER

Dr. Nona D. Nagares is a professor at Southern Luzon State University – Lucena

Campus in Lucena City. She was a former Dean at Interglobal College Foundation Inc.,
Secondary School Teacher III at Quezon National High School and taught Food
Preparation and Service Technology at Quezon National Agricultural School. Aside from
working in academe, she also rendered her service as Food and Beverage Supervisor at
Riverview Resort and Conference Center, Quality Assurance Specialist in Pacific Meat and
Co, Inc. and Front Desk Officer at Princetown Inn, Inc. She is an assessor and trainer of
Cookery NC II, Food and Beverage Services NC II, Bread and Pastry Production NC II,
Bartending NC II and Food Processing NC II. Dr. Nagares finished her Doctor of
Philosophy in Development Education at Southern Luzon State University, her Master of
Science in Applied Nutrition at University of the Philippines Los Baños and Bachelor of
Science in Food Technology at PUP Sta. Mesa

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