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It deserves to be a top priority for national development because of the following reasons:
It is a powerful and efficient industry;
Its impact on social development are broad and deep;
It creates strong peripheral benefits;
The Philippines can compete and win; and
It helps maintains cultural integrity, essential ecological processes, biological diversity and
life support systems.
It promotes and creates strong peripheral benefits to other economic sectors and society as a
whole through:
Tourism infrastructure spending;
Catalyzing entrepreneurship; and
Improving the image of the country in international trade and investment
The Philippines can compete and win in developing its tourism sector because:
It possesses ‘timeless’ competitive advantage of proximity to North-East Asia, especially
China, Japan, and Korea, and it has also world class natural attractions;
It is relatively free of restrictions unlike the other sectors of the economy; and
It can create sizeable niche markets.
To harness growth in the tourism industry, focus, execution and coordinated leadership
against priority tourist markets and destinations are required.
Department of Tourism
Mission
The Department of Tourism (DOT) shall be the primary government agency charged with the
responsibility to encourage, promote, and develop tourism as a major socio-economic activity to
generate foreign currency and employment and to spread the benefits of tourism to both the
private and public sector.
Office of the Secretary
The Office of the Secretary provides leadership, direction, and substance to the overall operations
of the Department. It formulates policies, plans , programs, rules, and regulations; reviews and
evaluates the performance of the Tourism Master Plan and advises the President on all matters
affecting the tourism program of the country.
Tourism Promotions Sector
The Tourism Promotion Sector has the primary function of promoting the Philippines as a tourist
destination domestically and internationally. It devises integrated marketing and promotional
activities such as information dissemination, public relations, special events, and related tourism
programs. It likewise supervises the overseas field offices established to implement and enhance
the tourism development and promotion program of the Department in the international field.
Tourism Services and Regional Offices Sector
The Tourism Services and Regional Offices Sector is tasked to ensure the pleasant entry, stay, and
exit of tourists. It formulates standards of quantity and efficiency for tourism-oriented
establishments, among others, done through an accreditation system. Tourist establishments'
compliance to policies are monitored to make sure that their facilities and services are operated
and maintained according to acceptable international norms. The Sector also supervises DOT's
regional operations established to implement the policies, plans, programs, and regulations of the
Department and to maintain the delivery of efficient and effective frontline services for the
tourism industry.
Planning, Product Development and Coordination
The Tourism Planning, Product Development and Coordination Sector is responsible for the
formulation and updating of the Tourism Master Plan, together with its component programs.
The Sector monitors the effective implementation of the Tourism Master Plan and, in
coordination with the private sector and other government institutions , develops and
conceptualizes new products and investment opportunities designed to enhance tourist sites and
facilities.
Internal Services Sector
The Internal Services Sector ensures the smooth and legal functioning of the operations of the
Department through the provision of effective and efficient advice and services in the areas of
personnel management, human resources development, general services administration,
computerization and information technology services, budgetary, financial and management
services, and including investigatory and advisory services.
CHAPTER II – TRAVEL AGENCY
A commercial enterprise where a traveller can secure information and expertise, get
impartial counselling, and make arrangements to travel by air, sea or land to any point in
the world.
Acts as an agent for different suppliers or providers of products and services.
Retailer
Counsellor
Derives income from a pre-determined fixed commission dictated by suppliers or a
professional fee negotiated with client
Charges fees for ancillary services.
TOUR OPERATOR – an enterprise regularly engaged in the business of inbound and/or local tour
operation such as making online reservations, arranging and booking for transportation and
accommodation, handling and/or conducting tours for a fee, commission, or any form of
remuneration.
TRAVEL AGENCY – an enterprise regularly engaged in the business of providing services such as
reservations/bookings, documentation of travel papers, sales and/or issuance of tickets and
selling of outbound tours for a fee, commission, or any form of remuneration.
Administration
Deals with the day-to-day management activities of the company
Has four functions: General Administration, Personnel, Accounting and Finance
Operations
Core of the Travel Agency business
Engaged in the efficient and effective delivery of the organizations services.
For larger-sized TMCS operations are divided into two: 1.Travel Operations 2.Tour
Operations.
This department has the following employees: Travel Managers and supervisors
Reservations and ticketing officers and; Liaison Officers
Online Agencies
Online agencies operate almost excusively through their web sites.
These agencies concentrate on selling travel commodities such as air, lodging and car
rentals.
They do also sell experiential products such as cruises and tours.
A travel agent who works for the online travel agency can explain their products thru
phone or online chat.
CHAPTER III – CORPORATE TRAVEL MANAGEMENT
The travel agent like employees of these division are usually called corporate travel managers.
Corporate travel management personnel have many duties.
They do the following:
Set corporate travel policy
Plan meetings, conferences and convetion programs
Negotiate with suppliers
Manage travel budgets
Arrange personnel relocation and housing
Communicate with management in other departments of the corporation
Rate Minus
Ticket Price: USD 1,000.00
Commission: 7% of the ticket price
TA’s income: USD 70.00
Payable to TG USD930.00
Suppose TG gave you a special rate of USD900.00 per MNL-PAR-MNL ticket.
Net Plus
Ticket Net Price: USD 900.00
TA’s Mark Up: USD 100.00
TA’s income: USD 100.00
Payable to TG USD 900.00
Setting up a Travel Management Company/Travel Agency
PARTNERSHIP
Securities and Exchange Commission
Articles of Partnership
Bank Certificate of Capital fund paid-up
CORPORATION
Securities and Exchange Commission
Articles of Incorporation
By laws
Bank Certificate of the capital fund paid- up
Incorporations bio data
Office shall be adequately furnished and properly equipped for the conduct of business.
Equipment checklist: Air Conditioning Units/Electric Fans, Tables and Chairs, Filing Cabinet,
Sitting Area and Lounge, Counter, Brochure Rack, Telephone and Fax Machine, Computers and
Printers, Global Distribution System (GDS) or Computer Reservation System (CRS), Fire
Extinguishers
Kinds of Tours
Escorted Tours- The group of people who separately bought the tour package and are meeting
for the first time, structured journeys on which the tour participants are accompanied by a travel
professional who sees to their needs. On an escorted tour, the person in charge of ensuring an
enjoyable experience called tour manager.
Hosted Tours- similar to escorted tours but the “host” (a tour representative) only meets with
the tour travellers when they need to see him or her. 3. Day Tours- are tours that last fewer than
24 hours most city tours would fall into this category they usually conducted via motor coach,
minibus, van or as a part of walking tour.
Day Tours- are tours that last fewer than 24 hours most city tours would fall into this category
they usually conducted via motor coach, minibus, van or as a part of walking tour.
Adventure Tours- features physically active, exotic and sometimes demanding experiences. The
packages may include hotel accommodations, a round trip flight, three meals a day, a climb up the
mountain.
Coordinate all travel logistics, such as hotel check- in, baggage handling and group
transportation
Guide the travelers through the tour’s itinerary, keeping everyone well informed and on
schedule
Offer fun and fascinating commentary while traveling and sightseeing, often in conjunction
with local sightseeing guides
Handle any and all problems, personally conflicts, and emergencies
Sometimes accompanies the group on the first and last days flights
Time and Money- Travel may be reward for work, a tour that’s through fully arranged and
conducted promises travellers that they’ll get their destination and see the sights in a
reasonable amount of time and comfort.
Quest of Knowledge- learning is the most important benefit of a tour.
Camaraderie- The tours in which the group members already know each other. Its
members will have similar interests and be of comparable socio-economic status.
Inbound Operator
An inbound operator concentrates on tours in a particular city, area or country
Outbound Operator
An outbound operator takes groups from particular city or country to another city or country.
CHAPTER III – TRAVEL DOCUMENTS
Passport
A document issued by the Philippine Government to its citizens requesting other
government to allow its holder to pass safety and freely and in case of need give him/her
lawful aid and protection.
The passport is the traveller badge of citizenship proclaiming his / her national affiliation.
The country state foreign affairs department issues passport only to its citizens.
Consulate /Embassy also issued passport to citizens who happen out to the country.
Characteristics of Passport
It is a distinguished mark
Incorporated hologram seals
Made up of special paper
With unique serial number
VISA
A foreign document through its consular offices issued this authorization and its specifics. The
terms under with a government is to allowed entry on that foreign country.
Purpose of Journey
Maximum length of stay
Period of validity for VISA
Types of VISA
Tourist Visa
Working/Business Visa
Student VISA
Transit VISA
Minor VISA
Seaman VISA
Flight Reservations
Sector / Leg Segment: Sectors travelling, that is the point of origin to point of destination.
Date of Travel: Date the passenger(s) is / are travelling per sector.
Flight Number / Class: The preferred flight number and class.
Passenger(s) Name: and how many passenger (adults / children with corresponding ages) or
are seats are being reserved.
After providing the above information, the airline will give you the transaction/reservation status
Ex. Confirmed, Waitlisted or Unable, the Passenger Number Record (PNR) which the code
reference for all the transactions, and the ticket option which is the date and the time when the
ticket(s) has to be purchased / issued in order not to lose the reservation.
Immigration
The process by which a government official controls movement of people across its
borders.
To do this, it verifies a person’s citizenship through passport, visa or other document
Customs
The procedure by which government agents inspect luggage and other goods entering a
country to check for forbidden items or restricted ones.
Customs assesses whether duties or taxes on items purchased on the trip.
MIDTERM PERIOD
CHAPTER IV – TRAVEL AND THE INTERNET
For those in the travel industry, one of the most important and powerful emerging technology
trends, which needs to be understood and explored, is the Internet of Things, or IoT for short. It has
the potential to fundamentally change how many tourism companies operate, improve their revenue
management, and enhance the customer experience.
This effectively turns them into ‘smart’ objects, capable of ‘talking to’ or interacting with one
another. The technology allows devices to be controlled or monitored remotely, and to perform
actions automatically. Examples might range from smart energy meters, through to internet-
connected vehicles and driver less cars.
The use of smart devices can help to optimise the physical state of a hotel and its rooms, and can
reduce energy costs. On planes, sensors could even be used to alert staff when someone’s anxiety
levels elevate above a certain level. Meanwhile, the IoT can provide tourists with greater control
and access to information via their phone.
IoT Examples Within the Travel Industry
1. Personal Control
One of the most widespread uses of IoT technology within the travel industry so far has been to
enable a greater degree of personalisation within hotels, and on flights, and this is primarily
provided by enabling customers to control more appliances or services through a centralised
device, such as a tablet or even their own phone.
By implementing internet-enabled heating, lighting and television, customers can turn them on
and off from one place. They may even be able to choose a specific temperature and light level,
and have the devices maintain those levels automatically. Similar technology can also be used on
flights, regulating seat temperature or air conditioning.
2. Seamless Travel
Another great use for the Internet of Things involves streamlining as much of the customer
experience as possible, across all areas of the travel industry. In airports, this may mean using
sensors and sending information to passengers’ smartphones, alerting them when their baggage
is nearby and allowing them to locate it faster.
In hotels, the check-in process can be made seamless, with hotels sending electronic key cards to
guests’ phones which, when used, automatically check them in without them ever having to stop
at the front desk. Sensors might also be used to alert restaurant staff when a guest arrives, and
automatically send them the right table number.
A similar principle can also apply to lighting and, already, some hotels are using IoT technology to
control its power. Sensors automatically detect the levels of natural light in the room, reducing
the power of light bulbs in the process, meaning less energy is wasted and high powered lighting
is only used when light levels are low enough.
4. Location Information
Companies operating in the travel industry can also use the Internet of Things to send location-
specific information to customers, and to gather valuable data too. By combining smartphone
capabilities with beacon technology or other sensors, messages can be sent to tourists at the
point they are most relevant, based on where they are.
For instance, this might mean sending messages about local attractions and times when they are
least busy, or to point out nearby public transport services. The IoT can also be used to gather
accurate data about the number of people using specific hotel facilities at different times, so that
staffing levels can be optimized.
For example, hotel staff can be alerted if a radiator or light bulb starts to deteriorate. Away from
hotels, the Internet of Things can also be deployed to allow airlines to fuel aeroplanes more
efficiently, or replace parts at the right time, striking the ideal balance between gaining maximum
value and maintaining safety.
Ultimately, the Internet of Things (IoT) involves adding internet connectivity to everyday
devices and appliances, allowing them to communicate with one another, and this offers
numerous benefits for those operating within the travel industry, including the ability to
deliver a superior customer experience and to optimise internal processes.
Understanding Robots
Although most of us have a concept of what a robot is, it can be more difficult to clearly define
what ‘robot’ means. Effectively, a robot is a machine, which has been designed to automatically
perform specific tasks accurately. This could include physical tasks, such as part assembly in a
factory, or text or speech related tasks.
In terms of appearance, while you may immediately think of a human-like android, in reality
robots can take many different forms. They can be completely autonomous, or semi-autonomous,
operating with some human assistance. Modern robots use technology ranging from collision
detection to speech recognition, as well as artificial intelligence.
For those in the travel industry, it is AI that is perhaps the most exciting robot-related technology,
because it can facilitate machine learning and the performance of more complex tasks, which
have typically required human cognitive function. Put simply, AI is the ability for a machine to
mimic this kind of cognitive ability.
Definitions outlining precisely what counts as artificial intelligence are somewhat fluid.
Nevertheless, it is usually agreed that speech recognition, problem solving, learning from human
interactions, completely autonomous movement and the demonstration of logic and reasoning all
fall within this particular field.
In terms of actually delivering excellent customer services, robots provide hospitality companies
with several benefits. For example, chatbots can be made available 24/7, with almost
instantaneous response times, which would be virtually impossible for human staff. They can also
be used to reduce queue sizes.
1. A Robot-Staffed Hotel
One of the most exciting examples of robots in the tourism and travel industry comes from
Nagasaki in Japan. Here, the Henn-na Hotel is recognised as the world’s first robot-staffed hotel,
with robots being used on the front desk, as customer information points and for storage
purposes, making use of voice, facial recognition and AI technology.
Hilton have deployed robot technology in the form of Connie, an artificially intelligent concierge,
developed in collaboration with IBM. Connie is able to interact with visitors, using speech
recognition technology to respond to their queries. It also learns from each interaction, meaning
the more it is used, the better its responses will become.
Among the most innovative uses of robots within the travel industry so far is Travelmate, a
robotic suitcase, which removes the hassle from travel. The suitcase is able to follow its owner
around autonomously, utilising collision detection technology and 360 degree turning
capabilities, removing the need to carry the case.
Hotels and airports are deploying robotic assistants to fundamentally change the customer
experience. Tourists can ask these assistants questions, find out information and even get them to
perform key tasks, like room service. Many of these robotic assistants are also able to understand
and communicate in multiple languages.
Another area where robots are being experimented with is within travel agencies, especially as a
means of entertaining customers at busy times. Used in this way, the robots are able to gather
important information about what the customer is looking for and then feed it back to a travel
agent, improving efficiency.
In much the same way that online bookings revolutionised tourism, chatbots have started to do
the same. One particularly good example of this is the SnatchBot Booking Travel Template, which
makes use of AI to guide customers through the booking process, asking intelligent questions
along the way.
With a constant need to improve airport security, robots are being deployed in some locations to
assist human security staff. For instance, Knightscope robots are being used in some airports for
the purpose of detecting concealed weapons and other hidden items that are not permitted on
flights.
Finally, there are a variety of other uses for robots within the travel industry. These include robot
luggage porters and butlers, which are able to navigate hotels and provide valuable services for
customers, as well as robots that are capable of handling check-ins and check-outs, making for a
much swifter experience.
CHAPTER V – USE OF TECHNOLOGY ON TRAVEL AND TOURISM
Technology has changed the way people are living their life. It has become a part of everyone’s life
as a necessity to live. When it comes to travel, technology has changed the way people are now
traveling. In this article, we are going to talk about the use of technology in Travel.
“Technology has dependably helped us in our day by day lives. It has transformed us into’ each
field. In a case that we talk about transport, planes can enable us to reach those parts on which
are dangerous to walk.
Various things like mobile, computer and more have changed the way we sell, buy, work and
essentially change each part of our lives. It has ended up being an assistant for our lives. Its
impact on the travel part is immense. “
Travel simply implies Locomotion, thus the travel method was initially connected with the
computer reservation system of the airline business, however, at this point, it is generally utilized,
in which the travel industry alongside its hospitality industry is furthermore utilized.
As far as “electronic tourism” or “electronic travel”, travel technology can further be known as e-
tourism / e-tourism or e-travel/e-travel (e-Tourism)
As one can figure, we all prefer to travel. Going out and seeing the world is waking up once more.
Even though, while the adventure is an excellent stress reliever, the establishment of a vacation
can be a pain.
We need to include the fact that the establishment of a vacation can be a pain not just for the
traveler, in a case that he wants to arrange booking process by himself, but for the travel
specialist, in a case that he does not have the right facilities for the passengers’ requests. And
here’s the place where another important step was made in travel technology.
There was a need to come with an ever-increasing number of innovative solutions that could
settle the bust of a travel plan with access to 24/7 and quick reaction. These days, couple-
travelers wants a private tour with carefree experience and comfortable experience.
At the point when travel experts do this, they build customer loyalty. Global Distribution System is
one of the major developments in the travel sector, where a single contact point is used for hotel,
car or airlines booking.
Apart from this, the improvement of mobile technology in the travel industry has helped various
individuals, and the advancement of online business has affected the travel industry and tourism
as clients can see different travel alternatives by surfing the web through their mobile.
Applications
Dynamic packages are one of the processes of travel technology, which used to provide a new
option.
Internet
Hospitality and Tourism are among those, who are most affected. For some organizations and
spots, the experience starts before a traveler arrives – it begins with the main visit to the site
when an individual sees a photo of the area and understands what’s in store.
In tourism and the hospitality industry, productive utilization of the Internet can improve income.
Social media, Websites, online ordering, blogs, and online advertising, all used to attract and
support customer for choosing his place and business.
Computer Systems
Since numerous travel industry organizations are scattered and large, they use PC frameworks to
remain connected. PC frameworks allow communication among locations and branches which
makes it simple to simplify the booking and cross-organization policies.
They are utilized internally to keep every one of the employees on the similar web-page and
access to information that can improve the visitor experience: housekeeping information, guest
preferences, and the details of reservation are kept on a similar framework.
The continued development of information technology has greatly affected the travel agency
industry. The broad public utilization of the Internet has made many situations of a game changer
– both harmful and beneficial ways – for the modern travel organization.
Therefore, in the 21st century, many travel organizations have needed to make an incredible
adaptation to stay relevant and solvent.
Mobile Communication
Mobile communication has become an essential part of a traveler’s life. People are using google
maps for GPS and other valuable information about the places they want to visit. Most of the
communication used to happen with the help of mobile communication only.
Technology has given more environmentally friendly and less time-consuming travel.
In a case that you go, with the extremely valuable help of innovation, travel can turn into a lot eco-
companion. Those days are gone, when there was a need to print boarding passes, airline tickets
or hotel reservations.
On account of mobile check-ins, online reservations, and e-tickets, we don’t need to travel with
the documents now and can save a lot of paper. Aside from this, online reservations and
appointments are helping to consider that there is no line to get tickets.
Saving a lot of time by minimizing the packaging routine with the help of technology.
These days, innovation is attempting to crush all most of the jobs and functions into a tiny gadget.
We never again need an iPod to tune in to music, we simply need an iTunes or Spotify account and
we can stream music on the go.
Furthermore, is also applies for books, as fitting them inside the bag was an extra load over our
shoulders. Cobo (e-Reader) or Amazon Kindle save a huge amount of space in our backpacks.
Google’s Translate application gives you a chance to translate menus or signals progressively
utilizing your cell phone’s camera. Also, applications like Duolingo enable you to become familiar
with another language or to improve an individual you definitely know, without burning through
cash.
Chatbots has turned into the ideal travel buddy. Numerous flights and hotels groups offer the
option of sending messages to their clients ahead of time, either enabling them to text through
their own application or to set up informing channels like WhatsApp, Messenger or Facebook.
However, chatbots are a revolution – they are getting to be huge resources for this industry.
Chatbot enables an individual to interact with artificial intelligence or human intelligence through
chat interfaces.
Remembering that messaging applications are becoming new online life, it just makes sense that
organizations begin coordinating these kinds of services in their execution list.
Digital Payments
Samsung Pay, Apple Pay or Google Wallet – Everything seems so smooth with the help of
electronic payments. Among the benefits of being cashless, it is worth to feature two of them:
convenience - there is no need to keep a huge amount of cash with you.
Also, fewer chances of risk – particularly when traveling abroad is valid, where money loss or
theft can be a huge cause of the problem. Once completely integrated, you don’t need to worry
about CC frauds.
Advantages
The significance of technology in travel have brought all the far places very close. The speed of
time has expanded its criteria, one day trip is very common these days, the adventure is
comfortable and fast.
Things that should be possible in 60 minutes, they would now be able to be done in a moment or
even in a second, to acknowledge themselves for technology. Places that cannot contact
individuals regularly; Now can be reached in a minute. Technology gives us tools that can make a
remarkable trip.
As indicated by Lelyings, (Lelyings, 2011) Today, the innovation has progressed in enormous
bounds and leaps. We cannot envision the world without technological advancements, for
example, LEDs, Computer and machines, etc.
Even though, there are a few disadvantages and advantages of the strategy. Most importantly,
technology plays an important job in the general public since it makes life less time consuming
and less easy to live.
Technology can make easy routes at work. Individuals don’t need to work hard currently, people
use innovation to make plans for their journey, which makes it progressively advantageous and
simple. They can inquire about the places at their own pace, look for the best hotels and charges
and reserve a place from their mobile or computer.
Disadvantages
The flood of development and industrialization has contaminated our environment. Let’s take a
case where the exhaust of machines and vehicles affect air quality and damage the ozone layer.
Furthermore, technologies additionally result in financial issues in families since most of the
technologies are costly similar to computers. The individuals who cannot afford to purchase this
kind of innovation will live in stressful lives.
As I would see it, the significance of innovation in the movement and the travel industry is to get
data through research, to help increment the organization’s incomes, to get data from its clients
and other important organizations, gives incredible speed, reaching the viewers who have
physically isolated from the sender and increase availability and receptiveness in an organization.
And the bad part about innovation is that it can cause conflict and stress, can be utilized
effectively, Often ailing insecurity and can genuinely end business profitability.
IMPORTANT ROLE
An important role is played by technology in the field of travel and tourism since last decade.
Introduction of technology in tourism has directly helped in decreasing the cost, improve
services, enhance operational efficiency and customer experience.
It can be said that both businessmen and travelers are getting benefit from technology, there are
some of the examples to support this: enhanced guest service systems, reservations, and
improved communication.
Technology has assisted the travel industry and friendliness ventures with transforming costly
human work with specialized work. It helps in decreasing work costs, yet in addition, maintains a
strategic distance from client administration issues.
CHAPTER VI – CONSUMER BEHAVIOR
Consumer behavior is one of the most researched areas in tourism. This studies why a tourist
chooses a particular destination and what are the driving factors that influence his decision for
travelling.
They record higher level of satisfaction and They record comparatively lower level of
enjoyment as they see an activity as a mean enjoyment as they go through the stress of
of enjoyment itself. competition.
Time passes faster for them. They are focused on passage of time.
PREFINAL PERIOD
CHAPTER VII – PRODUCTS AND SERVICES
The tourism industry as a whole survives because of various tourism products and services.
Tourism industry is flexible. The products of tourism cannot be easily standardized as they are
created for the customers of varied interests and demands. As the tourism products are mainly
the tourists’ experience, they can be stored only in the tourists’ memories.
Let us understand more about tourism products and services −
These are the products and services created primarily for the tourists and also for the locals.
These products need a great share of investments in private sector. A few of them are −
Accommodations; For example, Taj, ITC Hotels.
Transportation; For example, Owning taxis, luxury buses, and boats.
Retail Travel Agents
Tour Operators
Shopping Centers such as malls
Cinema Theatres such as PVR
Restaurants for Food and Beverages
Tourism Information Centers
Souvenirs Outlets
Museums, Temples, Gardens, and Theme parks
Residents Oriented Products (ROP)
Here, the products and services are created mainly for the local residents staying at a particular
tourist destination. This category requires investment in public sectors more. Some of them are −
Hospitals
Public Parks
Banks and ATMs
Petrol Pumps
Postal Service
Intangible Products of Tourism
They include −
Bookings of accommodations, theatres, and at various sites.
Tourists’ experience by visiting a destination, eating at a restaurant, or performing an
activity.
Tourists’ memory which is created by storing the details of events and experience on the
tour. The high degree of satisfaction or dissatisfaction is often stored as a long term
memory.
Transportation of tourists and their luggage from one place to another.
To realize the facilities and experience a tourism product offers, service is required by skilled and
qualified staff. The tour operator provides the following typical products and services −
Accommodations
The tourist destinations are equipped with different types of accommodations. They cater for
tourists’ stay at the destination.
Serviced − This type of accommodation is supported by skilled staff such as
housekeepers, drivers, guides, and cooks.
Self-catering − This accommodation offers staying facilities but dining is required to be
self-catered. It is equipped with cooking, fuel and facility, some basic supplies such as
tea/coffee/sugar sachets, and a drinking water source.
Hotels − Budget rooms to 7* hotels with classy amenities. The hotels contribute a major
share of imparting the experience to the tourists by providing best services and amenities.
Guest Houses − Owned by business or government organizations, which can be used by
its staff and staff relatives.
Camping Sites − They are open sites often located in areas of lush greenery. They are
equipped with clean place to pitch the personal tent, a water supply, and electric supply.
Camp sites have common rest rooms.
Reservations
The tour operator is responsible for making reservations for special events or activities the
tourists are interested in. At some places, the reservations are required to be done well in
advance to avoid last minute hassles. The events or activities such as a music concert or a theatre
show, visiting a theme park or a zoo, require people to secure seats or avail entry with prior
reservations.
Guided Tours
The tour operators can arrange guided tours. Some qualified staff who can get access to the place,
explain the importance of the place, support, and guide the participants through the entire visit.
The guide is arranged to accompany the tour participants as a part of tour.
Transport Facilities
The tour operators can book accommodation that provides dining facilities or it can tie up with
the local restaurants which are ready to entertain groups. If the tour package is all inclusive, the
tour operator pays for breakfast, lunch, and dinner. If not, the tourists need to pay from their own
pocket.
Here is an onion shell diagram that depicts elements of a tourism product. The diagram shows
progression of elements from core to outer shell depicting the declining direct management
control. It shows that the consumer’s involvement is maximum at the outermost shell. The
tourism product is not just presence of all five elements but it is also the interaction of these
elements among themselves.
It is tangible and is composed of various resources on which the tourism is based. Plainly, the
physical plant is nothing but the destination with sound and catchy architecture that enhances
tourists’ experience. It can be −
A natural attraction such as a landscape, wild life, natural structure.
A man-made attraction such as a resort.
A fixed property such as an accommodation.
A mobile property such as a ship or an airbus.
A natural or manmade condition such as weather, crowd, infrastructure at the
destination.
Service
The features or facilities of the physical plant are put to use for the tourists with service.
Providing services calls for a major contribution from human resources. It pertains to performing
tasks for the benefit and satisfaction of the tourists. For example, serving food in a hotel is a
service by the staff there.
Hospitality
It is the attitude with which the service is provided. Hospitality includes performing the service
with smile, enthusiasm, untiringly, and with dedication. For example, arranging guest room
supplies or serving food or beverage in a presentable manner is a part of hospitality.
Freedom of Choice
It is offering the tourist some acceptable range of options in order to elevate their experience. The
degree of freedom varies greatly depending on the type of tourism (pleasure, business, family, or
other), the tourist’s budget, previous experience, knowledge, and reliance on a travel agent.
A good tourism product must include some choice for its consumers. By offering some freedom to
the tourists, the product gives some sense of control to the tourists. The freedom to choose an
airline, a route, a seat, an accommodation, or a restaurant can enhance a tourist’s satisfaction.
Freedom also implies good surprises. When the tourists come across unanticipated events, they
get the feeling of being very fortunate to be in the right place at the right time, thereby gaining
extra value from the visit.
Involvement
It depends upon the quality of inner four elements. These elements prepare the tourists for
physical, intellectual, and/or emotional involvement in tourism services. Involvement is not only
the physical participation, but also a sense of engagement in an activity- may it be for pleasure or
business.
More the involvement of the tourists, more they are interested in striking conversation happily
with others, more they are enthusiastic and curious to try out new things, and time passes fast for
them.
Thus, a combination of tourists’ involvement, freedom of choice, service with hospitality and
perfect destination (with all A’s present) can make the best tourist product.
A tourism product can be of any type from cultural, educational, recreational, heritage site, or a
business hub. Tourism Product Development should −
Be authentic and should reflect the unique attributes of the destination.
Have the support of the host community.
Respect the natural and cultural environments.
Be different from the competitors, avoiding copying developments blindly.
Be of sufficient scale to make a significant economic contribution, but not very large to
create high economic leakage.
The creation of a tourism product is a complex process. The following table shows the steps of
creating tourism product −
Primary Final Output
Intermediate Inputs Intermediate Output
Inputs (Tourist
(Tourism Facilities) (Tourism Services)
(Resources) experiences)
Human
Accommodations Vehicle parking service Social contacts
resource
Restaurants/Food
Fuel/Energy Cultural performances Recreation
Joints
The product creation process starts with primary inputs such as resources, raw materials, other
materials for construction, energy, and fuel. This could also include the agricultural products
required to prepare food for the tourists.
The primary inputs are then processed further through manufacturing or construction
into intermediate (or processed) inputs. The intermediate inputs are nothing but the tourism
facilities such as gardens, parks, museums, art galleries, shopping centers, convention centers,
accommodations, restaurants, and gift or souvenir shops. They facilitate and support the tourism.
The intermediate inputs are further refined through expert management, workforce, and
technical services, and packaging into intermediate outputs. The intermediate outputs are
nothing but the services associated with tourism industry.
For example, the intermediate input such as a hotel room remains just as a commodity unless it is
occupied by the tourist and turns into a part of a tourism product by incorporating the occupant’s
experience. Similarly, the food at restaurants needs to be cooked and presented by the staff at any
restaurant and needs to be ordered and consumed by the tourists.
The final outputs are nothing but the personal experience the tourist takes from availing
services and by carrying out various tourism-related activities. The tourists utilize the
intermediate outputs (or services) to generate intangible but a high value experience such as
satisfaction, recreation, and completion of a business related task or maintaining a contact of
friends or relatives.
The following general steps are taken for tourism product development −
Research the Market
At this step, the tourism marketing force conducts research on the current market to identify the
opportunities. In includes economy, study of various market segments and their varied
requirements, past market data, and current market and tourism trends.
Match the Product with Market
By assessing the market segments and conditions for tourism, different packages are created for
various market segments such that they can satisfy the requirement of each segment of
individuals.
Assess the Destination
Since destinations form the basis of product development, the product development force visits
the prospective tourism destination to assess its tourism potential and its ability to accommodate
and serve the tourists, features of the destination, and its shortcomings. It is assessed to judge if
the destination is fulfilling the requirement of Accommodation, Attractions, Activities, or
Amenities. It is also checked for the ease of Accessibility.
Understand the Stakeholder Role
At this step, the product is actually built using required resources and consultations of the
expertise to create intermediate inputs (facilities and amenities) and intermediate outputs
(services). It encompasses not only development of destination infrastructure but also support
for special activities and experiences.
Marketing & Promotion
The functional and emotional benefits of the tourism at the tourist destination are communicated
to the market. The marketing people create brochures, place advertisements on the business
portals, and contact media to promote the destination and the product on the television and
radio. They also use various other marketing techniques to increase the product visibility.
Providing Human and Technical Resource
It includes providing skilled staff and contemporary technology to cater the needs of tourists
efficiently, to handle all tourism related operations at the destination effectively, and to
communicate with the staff easily.
FINAL PERIOD
CHAPTER X – DESTINATION MANAGEMENT
After having seen what is meant by destination and what are its different types, it’s time to look
into what destination management is, what do they do to manage a destination, and why it is
important to manage a destination.
Destination Management puts in place programs and strategies that will spread the unique story
of a particular destination. Thus, inviting more tourists and enhancing tourism in that particular
region. It proves to be a key to success for tourism management, at large.
Since tourism directly depends on the customer’s experience, collecting and auditing tourists’
experience is vital. A deep understanding of the destination, the market, and the tourists’
experience can help to target the needs, desires, and expectations of a particular market segment.
The destinations are managed so that they provide excellent memorable experience to the
tourists in terms of accommodations, facilities, amenities, activities, and food with a continuous
upgraded progress thereby increasing the tourists’ influx and generating revenue.
Since the tourists are at the destination since they arrive till they leave, the destinations
contribute major portion of enhancing tourism experience. Right from hospitality to a wide range
of services, the provision of excellent experience to the visitors is worked out by united effort of
many organizations.
DMO is a collaboration of multiple private and public sector organizations working together
towards a common goal, to promote and market the destination, and to retain its tourism value
all the time.
Objectives of DMO
Retail outlets such as specialty and independent shops, and shopping centers.
Transport operators such as surface and air transport providers.
Public sector organizations such as state services for availing licenses and permissions.
Characteristics of DMO
The DMO is completely aware that the experience of the tourists directly drives the economy. It
works with all its capabilities to manage the destination by
Establishing a regular communication with the industry through newsletters, business
opinion surveys, marketing opportunities, and annual reports.
Conducting annual forums to discuss the progress and plans of destination management.
Conducting topic-specific workshops to discuss key issues.
Getting feedback on the progress.
Conducting regular periodic meetings with participating businesses.
Organizing festivals, lectures, talks, theme holidays, and events.
Travel Itinerary
Careful planning is required when developing an itinerary for your tour. A helpful exercise is to
take a tour which will be similar to the tour you wish to develop and obtain copies of other tour
brochures for comparison. This will help you develop ideas for your tour, give you an idea of what
is already in the marketplace, give you detailed information on terms and conditions and provide
possible ideas for brochure design and content.
STEP 2: Name your tour
Where will your tour travel to? What are the main locations and highlights that visitors are going
to experience?
STEP 5: Research tour content and draft commentary
List the main topics you wish to include in your commentary, such as flora, fauna, history, culture,
as well as the main points to consider with each of these topics and the resources you will use to
find the information.
STEP 6: List any 3rd party activities, attractions, entrance fees and inclusions
List any activities offered by other companies or entrance fees and determine if they will be
included in your tour price or offered as extras.
Step 7: Organize suppliers for meals
What meals will you provide during your tour - morning and afternoon tea, lunch or dinner? You
may wish to provide meals yourself or make arrangements for a restaurant, roadhouse, hotel or
farm to provide them for you. Should you choose to prepare your own meals, you will need to
ensure you have adequate food handling knowledge, food supplies and cooking facilities. You may
also need to seek food handling approval from your local council and meet health department
regulations.
STEP 8: Organize accommodation approvals (if required)
Whether you are passing through, stopping for meals or visiting attractions, it is imperative you
obtain permission in writing from the property owner prior to accessing any private property.
Step 9: Perfect your timing
It is crucially important to map out your tour itinerary accurately to ensure that you arrive on
time for activity and meal stops and return to your original destination at a reasonable time.
Prepare a table that shows start, stop and duration times for each location, attraction or activity.
Step 10: Test drive your itinerary
It is very important to several 'dry runs' of your itinerary to ensure you get the timing right. It is
also a very good idea to invite people who have some knowledge of the industry and are prepared
to give you constructive comments, to do a tour.
CHAPTER XII – TOURISM AND COVID – 19 IN THE PHILIPPINES
Introduction
Without a doubt, the tourism industry is among the sectors that have been greatly affected by the
COVID-19 pandemic. The closing of borders, airports, and hotels as well as restrictions on mass
gatherings, land travel and related services across the world put around 100 to 120 million jobs
at risk, as estimated by the World Tourism Organization.
In the first quarter of 2020, the period when the travel restrictions and lockdowns in most
countries started, international tourist arrivals declined by 22% resulting in an estimated loss of
US$80bn in global tourism receipts. In such period, 97 destinations have totally or partially
closed their borders for tourists, 65 destinations have suspended international flights totally or
partially, and 39 destinations were implementing the closing of borders (i.e., banning the arrivals
from specific countries).
In the Philippines, the government closed the airports in Luzon on 20 March as part of the
Enhanced Community Quarantine (ECQ) that started in the island on 16 March. The tourism
sector has already felt the negative impact of the pandemic on its performance much earlier. In
other countries, travel restrictions and measures have started as early as January of this year, and
have impacted the Philippine international tourist arrivals. Domestic tourists, on the other hand,
also limited their travel for fear of contracting COVID-19. The Department of Tourism reported
that international tourist receipts in the first quarter of the year declined to PHP85bn, 36% lower
than the revenues in the same period last year.
To understand the impact of COVID-19 on the Philippine tourism industry, PwC Philippines,
together with the Department of Tourism, surveyed 247 decision makers across the different
subsectors in May 2020.
Forty-four percent of the respondents are from the tourism services sector (i.e., travel agencies,
bookings, tours, etc.), and 34% are from the accommodations sector. According to the survey,
97% say that COVID-19 has the potential for significant impact on their business operations, and
is causing them great concern. Such finding is not surprising given that only businesses related to
essential services and products were the only enterprises allowed to operate during the ECQ.
Because of the low demand and restrictions, majority of the respondents say that they
temporarily stopped offering a service/product, reduced their level of operations, and reduced
the employee headcount.