How does a travel agency work? (Industry insiders please come in!)

Travel agencies and their overall operating procedures

When travel agencies emerged in Western capitalist countries, our country was transforming from a feudal society to a semi-feudal colonial society. Since 1840, the imperialist powers opened treaty ports, opened factories, built railways, and built docks in China. Businessmen, missionaries, scholars, and adventurers from Western countries have come to China one after another. Their footprints have spread all over the coast and hinterland of our country. All places are required to provide corresponding accommodation, transportation, rest and entertainment facilities. Due to the needs of industrial development, the national bourgeoisie often traveled between different regions, which promoted the strengthening of inter-regional connections and enabled the development of the hotel industry and transportation industry. Some knowledgeable people in China have gone abroad to study and study, and the number of students studying abroad is also increasing. It was against this background that China's first travel agency was born.

The emergence and development of travel agencies in my country

In August 1923, the Shanghai Commercial Reserve Bank first established a travel department to sell travel and ferry tickets for passengers, book cabins, berths and hotels, and undertake the following tasks: Reception tasks, dispatching tour guides, storing luggage and issuing traveler's checks. It has successively set up 11 offices along the railway lines and in major port cities along the Yangtze River, and officially established the China Travel Service on June 1, 1927.

Travel agencies develop with the development of commodity economy. Different social and economic systems will have an impact on the development direction, scope and speed of the commodity economy, and thus will also have an impact on the development of travel agencies. Before liberation, although China's travel agencies had achieved certain development, under the semi-feudal and semi-colonial socio-economic system, the development of travel agencies had to be greatly restricted.

After the founding of New China, in order to protect the legitimate rights and interests of overseas Chinese and their family members and facilitate their inbound and outbound travel, with the care of the party and the government, on November 19, 1949, the Overseas Chinese and Peace Affairs Group of the Xiamen Military Control Commission He took over the old Overseas Chinese Service Agency and opened it in December of the same year. At this point, the first overseas Chinese service agency in New China was born. In August 1956, in addition to the original overseas Chinese service societies in Guangdong and Fujian provinces, Tianjin, Shenyang, Anshan, Dalian, Changchun, Harbin, Fushun, Fuxin, Hankou, Nanjing, Wuxi, Suzhou, Shanghai, Hangzhou, Jinan, and Kunming Overseas Chinese service agencies have also been established in 16 other cities. On April 22, 1957, the Overseas Chinese Travel Service Headquarters was officially established. With the increasing international status of our country, the number of countries that have established diplomatic relations with our country continues to increase, and there are more and more international exchanges. In addition to intergovernmental delegation exchanges, various foreign people's organizations and social elites who are invited to visit China, as well as those who apply to come to China at their own expense The number of tourists is also gradually increasing. Under this circumstance, with the approval of the Government Affairs Council, the China International Travel Service Headquarters and 14 branches in Shanghai and Hangzhou were officially established on April 15, 1954. They are socialist "state-owned enterprises" responsible for undertaking matters related to the reception of foreign guests by government departments and mass organizations; and selling international train and airplane tickets. Not long after its establishment, China International Travel Service has continued to expand its domestic and foreign business activities. It has signed contracts with the Soviet Union, Poland, Mongolia, the Czech Republic, and Albania to accommodate self-funded tourists and exchange visits. And it has business contacts with more than 50 travel agencies in 18 capitalist countries.

In June 1980, China Youth Travel Service was officially established. So far, my country has formed three major travel agency systems. They have contributed to the development of tourism in our country in different scopes. Due to the impact of the domestic situation and changes in international relations, my country's tourism industry has experienced a tortuous development process. After the Third Plenary Session of the 11th Central Committee of the Communist Party of China decided to implement an open policy to the outside world, my country's international tourism industry has developed vigorously as part of the open policy. From 1978 to 1985, the number of overseas tourists reached 67.73 million. With the improvement of domestic people's living standards, my country's domestic tourism has also developed rapidly. According to statistics, the number of domestic tourists in 1985 was approximately 240 million. The development of domestic and international tourism has led to a sharp increase in the number and workload of travel agencies. By the end of 1985, there were more than 450 travel agencies across the country, some of which handled international tourism business and some of which handled domestic tourism business. In 1989, various provinces, autonomous regions, municipalities directly under the Central Government and cities under separate state planning gradually opened overseas travel companies to directly attract overseas tourists, and some began to undertake business for Chinese people to travel abroad to visit relatives. So far, the country has formed a multi-level, multi-functional and highly adaptable tourism reception system with different scales, grades, service objects and ownership forms.

Classification and characteristics of travel agencies

1. Classification of travel agencies

Travel agencies are divided into three categories according to their business scope

< p>Category 1: Travel agencies that solicit and receive foreigners, overseas Chinese, compatriots from Hong Kong and Macao, and compatriots from Taiwan to come to China, return home, or travel to the mainland;

Category 2: do not solicit from outside, only operate Category 1 travel agencies or travel agencies that receive foreigners, overseas Chinese, Hong Kong and Macao compatriots, and Taiwan compatriots who come to China, return to the country, or return to the mainland for tourism organized by other foreign-related departments;

Category 3: operating domestic tourism business for Chinese citizens travel agency.

2. Characteristics of travel agencies

my country’s travel agencies have four main characteristics:

1. They are socialist enterprises. A travel agency is an economic entity with independent accounting and responsibility for its own profits and losses. It has the autonomy to operate tourism activities, can obtain tourism revenue and increase corporate profits; it has the function of expanding reproduction.

Due to the socialist nature of the enterprise, our country’s government regulations do not allow foreign capital or private individuals to operate travel agencies. Travel agencies must perform their duties to the state and enterprise employees in accordance with socialist operating principles, that is, pay taxes to the state, and as enterprises Increase in income and continuously improve employee welfare.

2. It is a service enterprise. The main product of a travel agency is services. It has indirect services, arranging board and lodging through hotels and restaurants, and direct services, such as dispatching tour guides. Travel agencies are responsible for the quality of tour guides and must provide quality assurance to tourists in six aspects: pick-up, travel, accommodation, food, shopping, and entertainment. The service products of travel agencies cannot be stored.

3. It is an enterprise engaged in cultural consumption. The customer consumption organized by travel agencies has the outstanding characteristics of cultural consumption. The movement of tourists to tourist attractions means that tourists go to tourist destinations to appreciate and understand, increase their knowledge, and cultivate their culture. Travel agencies are responsible for the dissemination of socialist spiritual civilization in their operations.

4. It is an enterprise in an emerging industry. In economic development, industrial replacement is an inevitable trend. Tourism is a sunrise industry. In the past 10 years, travel agencies have made great progress in quantity and operation, and the prospects are extremely bright.

Business scope of travel agencies

Under the principle of adhering to the principle of doing a good job in travel agency business, various travel agencies can carry out a variety of business activities related to travel agency business.

The first category of travel agencies can operate the following businesses:

1. To solicit or receive foreign tourists and overseas Chinese, Hong Kong, Macao and Taiwan compatriots to come to China, return to the country or return to the mainland for tourism; Promote travel routes domestically; sign travel agreements or contracts with foreign and travel agencies in Hong Kong, Macau and Taiwan to carry out business cooperation.

2. With the approval of the national tourism authorities, when conditions are ripe, Chinese citizens can be organized to visit relatives in foreign countries such as Hong Kong, Macao and Taiwan.

3. Implement alliances on the basis of the principle of voluntary and mutual benefit, form a travel agency economic union, and develop in the direction of groupization.

4. Group travel agencies should formulate articles of association to clearly stipulate the rights of their group members’ business relationships.

The second category of travel agencies can operate the following businesses:

1. Receiving foreign tourists and overseas Chinese, Hong Kong, Macao and Taiwan compatriots.

2. Carry out tourism promotion and sign an agreement with first-category travel agencies or other foreign-related departments to jointly receive foreign tourists and overseas Chinese, Hong Kong, Macao and Taiwan compatriots.

3. Sign an agreement with my travel company and travel agency in Hong Kong and Macau to receive the above-mentioned tour group(s).

The third category of travel agencies can operate the following businesses:

1. Operate domestic tourism business for its own citizens.

2. Various services related to domestic tourism.

3. According to business needs, develop horizontal alliances on a voluntary basis and enter into joint operation and cooperation agreements with similar travel agencies.

The main business of travel agencies and their role in tourism activities

The main business of travel agencies is to engage in the operation of tourism activities, that is, to plan, organize and arrange tourist activities for tourists, and Provide tourists with various tourism services they need and obtain corresponding rewards. Specifically, the main business activities of travel agencies include:

First, undertaking various entrusted agency services related to tourism.

Since its inception, travel agencies have been booking air tickets, train and boat tickets, arranging guest rooms, accepting services and other entrusted services for social groups and sporadic customers. To this day, accepting commissions remains an important part of the travel agency business. In 1984, China International Travel Service received 398,722 passengers, of which sporadic clients accounted for 9.1%. In the same year, China Travel Service received 825,779 foreign Chinese, overseas Chinese and compatriots from Australia and Taiwan, 54% of whom were sporadic clients. When a travel agency carries out this kind of business, it must sign a contract or reach an agreement with the relevant parties in advance, obtain the identity of the agent, and then accept the entrustment of the principal. The expenses are borne by the commissioned person, and the travel agency charges a certain handling fee. It is the labor remuneration paid by the travel agency when handling entrusted matters. Since travel agencies accept a large number of entrusted matters every day, they can handle them centrally, simplifying the cumbersome affairs of booking and purchasing tickets from various relevant departments, which greatly facilitates government officials, businessmen and tourists, especially those in foreign countries. . The entrusted agency business not only occurs between travel agencies of the same family, but is also quite common between travel agencies in different regions and countries. They undertake each other's entrustment matters.

Second, plan and combine tourism products. Travel agencies are not producers of physical products. In the past, it only reached agreements with airlines, car rental companies, hotels, railways, ship companies, etc. that supply sectors of tourism products, acting as an intermediary between tourists and these sectors, and handling related tourism business on their behalf. Later, especially after the Second World War, as more and more people participated in tourism activities, travel agencies ordered a certain number of guest rooms and aircraft seats from these supply departments in advance, and designed package tour routes based on plans and market needs. , and then introduced to the market through sales channels. This is the tourism product processed and combined by travel agencies, which is different from the individual products and services provided directly to tourists by various tourism supply departments.

This combination of travel products is sold to both group travelers and individual travelers. Since the 1960s, tourism products combined with travel have developed rapidly and become the main business of travel wholesalers.

Sales of combined travel products are the main business of my country's first-class travel agencies. Especially the three head offices of China International Travel Service, China Travel Service and Youth Travel Service. They launch some new package tour routes every year for overseas tourists to choose from. The business of some travel agencies with external relations rights selling such travel products is also growing rapidly. For example, in the China International Travel Service system, there were only 23,855 tourists contacted by local CITS in 1982. This number increased to 136,745 in 1984, an average annual growth rate of 54.7%. Among these external tourists, a considerable number of them purchase package travel products, which has transformed travel agencies from the previous passive situation of entrusting agents to a proactive position. This is a significant development in the business activities of travel agencies and one of the main features of contemporary tourism.

Third, receive tourists. According to the package tour routes purchased by tour groups or tourists, travel agencies organize personnel reception, help arrange transportation, food and accommodation, visits to travel agency locations and other matters are the third aspect of travel agency business. In foreign countries, except for a few travel wholesalers and travel organizations, general travel agencies have this business. In my country, all three types of travel agencies operate this business. Especially the second type of travel agencies, their main business is to receive tourists. To receive tourists well, travel agencies must be equipped with full-time or trained part-time reception staff, that is, accompanying or translating tour guides. On the one hand, they act as tourist guides, helping tourists arrange and solve their needs and various difficulties encountered during the journey; on the other hand, they introduce and promote the history, culture, customs and construction achievements of our country and the places they visit, Listen to tourists’ opinions, criticisms and suggestions to improve tourism reception.

The above three items are the main businesses of travel agencies. In order to successfully carry out these businesses, improve the quality of tourism services, facilitate tourists, and expand tourism market share, travel agencies also need to carry out other related activities. Such as dispatching overseas agencies to engage in tourism promotion, research and public relations activities.

The expansion and strengthening of these business activities of travel agencies have improved the status and role of travel agencies in tourism activities.

Travel agencies are no longer just intermediaries between travel demanders and travel suppliers, entrusted by tourists to handle entrusted matters. They are not only agents of travel suppliers, but also act as travel supply departments such as airlines and hotels. An extension of the sales link, acting as their agent to sell guest rooms for transportation tickets. At the same time, as an independent operator of tourism activities, on the one hand, he plans and assembles tourism products and appears in the tourism market with a completely different appearance; on the other hand, he participates in the ranks of tourism suppliers and sends out escorts or tour guides to undertake tours. Reception tasks. This role of the travel agency has changed its previous position of simply adapting to the needs of the tourism market to playing a certain regulatory role in the tourism market. It uses its special position in tourism supply and demand to influence the flow and flow of tourists. It can also induce and supervise the production and sales direction of the products and services provided by the tourism supply department.

Conditions and application procedures for opening a travel agency

1. Conditions for opening a travel agency

1. Travel agency charter that mainly complies with national regulations. The travel agency charter is the norms and code of conduct that the travel agency produces and guides future business activities. Its basic spirit and content should comply with the relevant laws formulated by the Chinese government, such as the "Interim Regulations on the Management of Travel Agencies" and so on. Generally speaking, the main contents of the travel agency's charter should include the name, nature, purpose and purpose of the travel agency, organizational structure, business scope and type, source of funds and financial management system, as well as the responsibilities that should be borne to protect the legitimate rights and interests of tourists. responsibility or obligation.

2. There must be a fixed business location and necessary business equipment. The actual usable areas of the business premises of Category I, II and III travel agencies are 200 square meters, 100 square meters and 30 square meters respectively. Category I societies must have telex machines, fax machines, direct telephones (not less than 4), computers, copiers, and typewriters; Category II societies must have telex machines, direct telephones (not less than two), and photocopiers. , typewriter; Category III cooperatives must have direct telephone lines. This is the minimum condition for travel agencies to operate. For the first and second categories of travel agencies, there must also be certain organizational structures and legal representatives, that is, some departments should be set up under the travel agency manager, such as the department responsible for liaison or reception of foreign tourists. In business dealings with foreign travel agencies and other tourism departments, travel agencies must have a legal representative with full authority to represent the agency. Usually the legal representative of a travel agency refers to the main person in charge of the travel agency, such as the chairman, general manager or manager. According to my country's "Interim Regulations on the Management of Travel Agencies", the person in charge of the tourism administrative department cannot serve as the legal representative of the travel agency.

3. A certain amount of registered capital is required. That is, the fixed funds and working capital owned by travel agencies for business operations. They are the material basis to ensure that travel agencies maintain the normal operation of their business, and are also an important basis for applying to relevant administrative departments for business operations. According to my country's "Interim Regulations on the Management of Travel Agencies", Category 1 travel agencies that operate to solicit and receive overseas tourists must have a registered capital of more than RMB 500,000. Category II travel agencies operating to receive overseas tourists must have a registered capital of more than RMB 250,000. The third category travel agency operating domestic travel business must have a registered capital of more than RMB 30,000.

4. The organization must have the ability to provide tourists with services that meet the service requirements according to the business scope of the business. To organize tourism activities, travel agencies must provide tourists with basic services such as food, accommodation and transportation that are needed for the smooth progress of tourism activities. Travel agencies must be able to sign agreements or contracts with relevant parties through their own organizational capabilities to ensure that they provide tourists with various services that comply with regulations.

5. There must be management personnel, tour guides and service personnel who can ensure service quality and are familiar with the tourism business. The organization of tourism activities is a job that requires high political and ideological requirements, always considers tourists, and is highly professional. In particular, the organization and reception of international tourists must have the idea of ??serving tourists wholeheartedly, a high policy level, and a deep understanding of international tourism business. Therefore, having a group of various personnel who are familiar with the tourism business is a basic element for travel agencies to ensure the quality of tourism services. Various personnel who are familiar with the tourism business include managers, accounting personnel (accountants are required for Class I agencies, and assistant accountants for Class II agencies), sales staff, and translators and tour guides (the number of tour guides and external liaison personnel for Class I agencies is not less than 25 people, including no less than 20 foreign language staff; Category II societies have no less than 15 tour guides and no less than 10 foreign language staff) and other service personnel.

Different types of travel agencies have different levels of business familiarity and cultural level requirements. For the first and second categories of travel agencies, managers should have a college degree, technical secondary school degree or above, or equivalent education, and have experience in tourism work and economic management work. For the third category of travel agencies, they must be familiar with the tourism business and have certain management capabilities. All types of travel agency managers must pass the assessment of the tourism administrative department.

2. Application procedures for opening a travel agency

Units applying to open various travel agencies should fill in the national The "Registration Form for Application for Operating Travel Business" uniformly printed by the Tourism Bureau will be issued with a "Travel Agency Business License" upon approval by the relevant tourism administrative department; then, take this certificate and other relevant approval documents to the industrial and commercial administrative department for registration Registration procedures.

Units that apply to open a travel agency should submit the following documents:

1. Application for opening a travel agency.

2. Travel agency charter. The contents of the articles of association should include: the name of the travel agency (the first and second categories of hotels should be accompanied by English translations); office address, telex and telephone numbers; economic nature; purpose and purpose; business scope; registered capital amount and funds Source; organizational structure; financial management system; responsibilities to tourists; other issues that should be explained.

3. Resumes of the general and deputy managers of the travel agency.

4. Credit certificate issued by the superior financial department.

5. If you rent an office or camp site, you should provide proof of a contract that has been for at least one year.

6. Agreements on ticket purchase, housing, etc. signed with civil aviation, railways, highway transportation, shipping, hotels, etc.

7. Travel agencies that use a group name must submit documents proving that the group agrees to use its name.

8. If the unit applying to open a travel agency is restricted or prohibited by the state, the central government department shall present the approval document of the State Council; the local department shall present the approval document of the provincial, autonomous region, or municipal government directly under the Central Government.

When a first-category travel agency operated by a central government department establishes a local branch due to business needs, it must first obtain the consent of the local tourism administrative department and report it to the National Tourism Administration for review by the provincial, autonomous region, or municipality tourism bureau. Can be set up later.

Financial management of travel agencies

Using monetary form to comprehensively manage the business activities of travel agencies. It is a general term for various management tasks in the formation, distribution and use of monetary funds in travel agencies, and is an important part of travel agency operations and management.

The business activities of travel agencies must be carried out with the help of certain property and materials. Due to the existence of commodity production and commodity exchange, travel agencies must use currency, a unified value scale, to have economic relations with all aspects. To measure the amount of labor provided to tourists and obtain labor remuneration; as a means of payment and accumulation; to measure various financial materials of enterprises. Various properties and materials expressed in the form of currency during the operation process are the funds of the travel agency. It includes fixed funds, working capital and special funds.

The business activities of travel agencies are realized with the help of the movement of funds. According to the regularity of capital movement, we must correctly organize financial revenue and expenditure in a planned and purposeful manner, handle various economic relationships in the process of capital movement, and make good use of various funds to develop tourism business, increase tourism foreign exchange income, and increase profits. , Obtaining better economic benefit services is the significance of travel agency financial management.

The chief accountant of a travel agency is a member who participates in business decision-making. Only when the financial department of a travel agency actively participates in travel agency economic activities can the travel agency achieve good results and transform into a profit-oriented enterprise.

1. Tasks of travel agency financial management

The financial management tasks of travel agencies mainly include four aspects:

1. Strictly implement the country’s financial system and correctly handle the enterprise Economic relations in all aspects, both internal and external. First, the relationship between enterprises and the state: that is, the relationship between enterprises and competent authorities and the relationship between banks and financial departments. This relationship is the financial aspect of appropriation, payment and loan expressed in monetary form.

When dealing with the relationship between enterprises and the state, we must establish an overall concept, distinguish the sources of various funds, and do not squeeze costs according to the prescribed cost and expenditure range; profits that are paid taxes in full and in a timely manner must not be in arrears; according to the national foreign exchange The hypergeometric distribution of management is determined, and the procedures for handing over and retaining tourist foreign exchange are handled in a timely manner. Second, the relationship between travel agencies and other enterprises: mainly manifested in the division of labor, collaboration and mutual support between enterprises. When handling, we must strictly abide by the material management system, price system and settlement system in accordance with national regulations, fully perform economic contracts, and price and settle all economic transactions based on the principle of equal exchange. Third, the relationship between the company and its employees: mainly reflected in the distribution relationship between the company's financial results and employees' income and welfare benefits. The company's financial results must be linked to employees' wages, bonuses and welfare benefits, and the employees' interests must be fully mobilized. Work actively and creatively to continuously improve the reception service level of travel agencies.

2. Actively provide business services, promote the development of travel agency business, and fully complete the tourism reception tasks and the development of related business undertakings. The financial management of travel agencies must correctly organize the supply of funds according to the needs of tourism business and diversified business development, meet the business needs of enterprises in a timely manner, make funds reasonably distributed at various stages of the business process, speed up turnover, and promote the efficiency of business operations. development and comprehensively complete the tourism reception tasks and related undertakings. In this way, enterprises can expand operating income, reduce costs, increase profits, expand financial resources, accelerate capital turnover, and fundamentally improve the financial status of enterprises.

3. Carry out correct financial supervision and protect the property of socialist enterprises from infringement. The financial management of travel agencies covers both cash and materials. In order to protect the company's property and materials from losses, it must establish and improve various reasonable systems for the receipt, use and storage of property and materials, clarify economic responsibilities, and prevent the loss and damage of property and materials. and waste, we must conduct regular property inventory and inventory, grasp the increase and decrease of various properties and materials, and ensure that the accounts are consistent; we must conscientiously implement the country's financial system, strictly enforce financial discipline, and resolutely fight against those who embezzle, steal, and violate financial discipline. Struggle with behavior.

4. Implement strict monetary supervision over all business activities of travel agencies. A large part of the business activities of travel agencies are carried out through currency receipts and payments. This requires financial management to reasonably control monetary expenditures, correctly organize monetary income, link income and expenditure, supervise various economic activities, promptly discover and correct deviations in the operating activities of travel agencies and groups, and complete various financial plans.

2. Travel agency quotation, settlement and appropriation

Travel agency group quotations are mainly made by the external sales department in accordance with price regulations and charging standards. The financial department is responsible for review and key review. The reception department is responsible for collecting the money paid by tourists after coming to China. Settlement and appropriation are the business of the finance department.

my country's travel agencies that engage in foreign solicitation must adhere to the principle of "no fees, reception later" when settling fees for foreign travel agencies. Some travel agencies have also adopted the practice of collecting a deposit in advance three months in advance. For regular visitors to China, the deposit will be part of the package price. If a traveler who has scheduled a trip to China cancels his or her trip to China, the deposit will not be refunded.

The National Tourism Administration issued the "Interim Measures for the Settlement of Travel Expenses by Foreign Travel Agencies" in 1988, which stipulates that foreign travel agencies must send the travel expenses payable by the group to our travel agency account at Bank of China before the tour group enters the country. Above; During the tour group's trip to China, the person in charge of the travel agency agreed that additional late fees will be charged for delayed delivery.