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
 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.
 Basic Organization Structure
Chairmen & CEO

Managing Director

Director / General Manager

Finance Department Advertising & Reservation / Travel Dep Outbound Dep MICE DEP HR DEP
Marketing Department

Outbound Tour Consultant

Inbound Tour Guide

Duties and Role of the Department
 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
 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

 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

 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

 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

 Process Of a Travel Agency & Identifing the
Expences and Income with a System Of Control
01
ASSESS PREVIOUS YEARS PERFORMANCE
MAKE MARKETING PLANS FOR EACH
HOLIDAY SERVICE/BRAND
Make product plans for each
service/brand
Destination selection
Incentive/education trips for :
•agents and employees
•Suppliers
PLANNING AND DEVELOPMENT
•Proft margins
•Market position
•Customet statisfaction data
•Developments in destinations
•Market research data
•Profits and market share projections
•New destinations to be launched
•Prices, terms and discounts for each brand
•What types of services are on the market
•Success rates of service types/destinations
•Destination research
•Policy decisions on brochure production
•Profits and revenue forecasts
•Natural/Cultural characteritics
•Health and Safety standards
•Security and infrastructure
•New destinations to be introduced
•Policies for strengthening brand loyalty
•Policies for strengthening supplier relationships
02 CONTRACTING
Price
Service/brand characteristics
Contract for Accommodation Conditions for release of unsold rooms
Health and safety standards
Insurance contacts

Charter rights
Contract for Transport for traveling to and from Distance and serving routes
Destinations Conditions for cancellations/release of unsold
capacity
Insurance contacts

Speed/distances involved
Confort and convenience
Contract for transport included in package and Price
tour Brand/service characteristics
Insurance contracts
 Commission rates
Contract for Supplementary Services Experience, reliability, trainning
(attractions, leisure svs, guides, instructors, Price
etc.) Insurance contracts
Previous contracts

Number to be printed
Tender for design and printing of brochures Paper type and weight
Binding and packaging
and price lists
Design features
03 PACKAGING
•Costs of services purchased
•Markup to cover overheads and profits
Establishing the prices at which different holiday services •Overheads allocated to each services
will be retailed with brands •Competitors prices

•Experience
Subcontract reservations and call centre services •Language ability
•Previous contracts

• Satisfactory health and safety inspection

• Price
Complete contracts of transport, accommodation and
• Conditions for the release of unsold capacity
supplementary services
Recruit and train seasonal employees such as •Experience and qualifications
guides, hostesses, chauffeurs, animators, •Language ability
instructors, etc. •Previous contracts

Compile and distribute customer satisfaction questionnaires

04 MARKETING / SALES AND OPERATIAON

On time delivery

Brochures on the market, storage and distribution to
Correlate delivery quantity to
agents/corporate retail outlets
sales record

Marketing objectives of each

brand
Demand and price elasticity
Launch agency promotions, and media and trade press Strength of competitors
advertising Characteristics of target markets
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)
05 EVALUATION

• Ensure prompt handing procedures

Handling of Customer / ageny
• Type and nature of complaint
complaints • Compensation policies

Evaluation of customer satisfaction

questionnaires

• Revenues and profit

• Level of customer satisfaction
Appraisal of the season
• Market penetration of new services and
brands
• Supplier issues
Income and Expenditure Of The Travel Agency
Shown in a Statement Form
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___

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)