TRAVEL
MANAGEMENT
What is Travel?
Travel is a commercial business activity that organizes, and provides services for an individual or group of people, to travel with the main
purpose of traveling.Travel is also a business that provides tour planning and organizing services, including ticketing,
accommodation, and travel documents
Tasks and services provided by Travel
1. Provide mentoring services or communicate with clients to determine the tour package to be selected. Starting from the
destination, transportation,
departure and return dates, budget, and accommodation needed.
2. Determine travel and accommodation costs
3. Book transportation and hotel 4. Offer tour package options to
consumers
5. Cooperate with hotels and tourist attractions
6. Advise clients on travel equipment such as visas or passports
Benefits Of Travel
The main benefit of travel management is the ability to reduce costs associated with travel. This
can include everything from airfare, hotel room rates and travel insurance. Generally, travel management specialists will have enough industry
contacts and experience to find or negotiate the
best deals.
Advantages and Disadvantages of using Travel
1. Easy to buy tickets for traveling 2. No need to
bother looking for lodging when traveling 3. Easier to take care of travel documents 4. Vacation can be
more efisience
1. Higher/
expensive costs just for
temporary pleasure
2. Many overhead costs
3. Language and cultural barriers
Advantages Disadvantages
Income
Conventional travel agent businesses usually get 5% commission from ticket sales. Traveloka applies the same business model but perhaps with a thinner margin because based on my experience
the prices at traveloka and other online travel agents are cheaper than conventional travel agents.That's just from airplane
tickets. If the commission from hotels is more, it can be up to 20%-30% depending on the negotiation.In addition, there are features to book trains, cars, credit, etc.I dare say Traveloka is
the most profitable startup business in Indonesia, much more profitable than Gojek and Tokopedia. If I'm not mistaken, Traveloka controls 40% of the airplane ticket sales market in Indonesia. There are 100 million passengers a year, so you can
estimate the revenue and profit.
The impact of the coronavirus (Covid-19) pandemic on travel agent companies in the country is quite large. almost 90 percent of the total 7,000 companies have been temporarily closed since April 2020.Of the approximately 5,000
companies that have temporarily closed, the number of workers affected has reached 50,000 people.In fact, 61.2% of the 85 respondents have closed their businesses after the pandemic, while 37.6% admitted that they did not close their businesses, while the rest did not know. Not only that, as many as 81.2%
have terminated employment (PHK) or laid off employees. It was also noted that less than 20% or only 18.8% answered no.Trying to survive is not easy because most travel agents use services as part of their products. So the assets they have are not as many as actors in other tourism subsectors.
With business strategy innovation, namely changing business
strategies through various innovations, such as
presenting the latest services or products, as well as maximizing the application of digital technology in tourism services, then being
transparent and consistent in health protocols, and finally regulating the entry of foreign tourists.
