AS someone who personally knows their plight, travel agents in the country are hoping that incoming Tourism Secretary Wanda Corazon T. Teo will help them survive the onslaught of the online booking sites and the ill effects of the new International Air Transport Association (IATA) reporting system.
The Philippine Travel Agencies Association (PTAA), with corporate membership of over 500, said these are the concerns where the industry needs Teo’s interventions.
PTAA President Maria Michelle Reyes-Victoria said since 2010, when most airlines and hotels started offering their services online, travel agencies were reduced to a marginalized sector, with a lot of the smaller firms closing operations.
“Travelers now are going online; but what they do not know is that the rates could potentially be more expensive. It is just the marketing of airlines and hotels at work,” Victoria said.
Victoria said that since the public took to booking online, most travel agencies are now just being approached for land arrangements, transfers and visa applications. She said what is keeping the travel agencies afloat are the corporate accounts that they handle. Before, travel agencies handle a mix bag of clients. “Individual travelers just book online.”
However, she said travel agencies in the country, numbering more than 2,000, are slowly coping and evolving with the competition brought about by online bookings. “We are also using online services, and some of the big travel agencies have incorporated online booking into their services. They are now 24/7 available,” Victoria said. She added travel agencies are now also offering specialized packages that cannot be availed of when booking online.
There are also concerns that travel agencies have with the IATA, which is now requiring weekly reporting, making it financially difficult for travel agencies to operate long term.
Remittance of payments from travel agencies has been reduced from 15 days to seven days.
“There is a big impact, as travel agencies give their corporate accounts credit terms,” Victoria said, adding that corporate accounts are usually given 30 to 60 days to pay for the services they provide.
“It is now difficult to stretch funds. It is a lost of business, especially on the part of smaller travel agencies. Pahabaan ng pisi,” she said. Victoria said travel agencies in the country have manpower capacities anywhere between three and 50.
Victoria said they welcome the appointment of Teo, since she comes from the same sector, being a travel agent herself who rose from the ranks. She believes the new secretary of the Department of Tourism (DOT) sees the significant role travel agencies play in the country’s tourism industry.
“Although she comes from a different organization, Teo has the same background as all of us working in travel agencies and tour operators in the country. We fully expect her tenure as DOT secretary to continuously look after the welfare of our sector in the tourism industry,” Victoria said.
She added: “The one thing that has been overlooked since every player in the industry started going online is the fact that travel agencies and tour operators remain the backbone of tourism.”
Victoria said the PTAA is more than willing to work closely with Teo, not just on travel agencies concerns, but on the overall development of the local tourism industry.
“There are issues that we would likewise request Teo to look into and address. Over the years, we have a track record of working closely with the DOT,” Victoria aired.
Victoria said they believe the momentum gained during the term of outgoing Tourism Secretary Ramon Jimenez Jr. will continue under Teo’s helm and remain as one of the country’s sunshine industries.
“President Duterte knows how economies work in the provinces, and how greatly tourism creates job opportunities for those living there. This can only speed up the development of tourism destinations across the country,” Victoria stated. Teo, a veteran in the country’s tourism industry, is the president of the National Association of Independent Travel Agencies, which is composed of small and medium travel agencies.
The PTAA is the biggest national tourism association in the country.