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

2. What Is a Travel Agency
• A travel agency is one that provides travel and tourism related services to the public on behalf
of suppliers such as airlines, car rentals, cruise lines, hotels, railways, and package tours.
• A travel agency's main function is to act as an agent, selling travel products and services on behalf of
a supplier.
• The holiday or ticket is supplied to the agency at a discount. The profit is therefore the difference
between the advertised price which the customer pays and the discounted price at which it is
supplied to the agent. This is known as the commission.

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

4. Duties and Role of the Department

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

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

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

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

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

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

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

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

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

14. Establishing the prices at which different holiday services
will be retailed with brands
Subcontract reservations and call centre services
Complete contracts of transport, accommodation and
supplementary services
•Costs of services purchased
•Markup to cover overheads and profits
•Overheads allocated to each services
•Competitors prices
•Experience
•Language ability
•Previous contracts
• Satisfactory health and safety inspection
• Price
• Conditions for the release of unsold capacity
PACKAGING03

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

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

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

18. Handling of Customer / ageny
complaints
• Ensure prompt handing procedures
• Type and nature of complaint
• Compensation policies
Evaluation of customer satisfaction
questionnaires
Appraisal of the season
• Revenues and profit
• Level of customer satisfaction
• Market penetration of new services and
brands
• Supplier issues
EVALUATION05

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

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

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