1 Travel Agency Management (1) Travel Agencies’ management & Environment Istvan Talabos MSc Senior Lecturer BGF KVIK 2013

2 Issues Travel agency’s environment Legislation

3 Environment 1980 appr enterprises Travel Agencies appr. 15 (i.e. IBUSZ, Budapest Tourist, Express, Omnibusz, Utas Tours, Lokomotív Tourist, OTP-Penta Tours, Carlson Wagon Lit ) Legal environment – economical environment

4 After 1989/1990 No. of enterprises – appr. 1.5 million (70 % operates) No. of Travel Agencies 1170 (2011 1st quarter)

5 Environment  Nature  Socio-cultural environment  Economical – market - environment  Cultural environment  Technology  Legal environment

6 Environment  Natural resources, (infrastructure, financials, HR)  Relating Tourism Industry (i.e. gastronomy, hoteliers, transportation)  Company strategy/competition  Demand Porter’s (1990) 4 determinants (Tourist/Customer – sophisticated customer

7 Travel Agencies and their environment (3) (Porter rhombus model) Market of Tourism (Competition - domestic) Technology Economical environment Social & Cultural Environment Political environment Potential Service providers Products (Supplimenting) Travel Agents

8 Tourism should be treated as environmental, social, cultural and economical, legal environment. These „parts” are in strong relationship with each other – travel companies (agents and tour operators) work in this environment and both local and global processes should be taken into consideration..

European Union 9 No tourism policy (HOtel REstaurant CAtering – HORECA general rules Legislation is in harmony: process of generating and bringing legal rules to understand and apply the rules of each other National legal rules apply and are in force

EU Rules Decision making is autonom EU law is applied Cooperation Legal rules must be in harmony with the european rules i.e. acquis communautaire-rel) 10

EU legislation LAWS compulsory in all member states Regulations – most direct form of laws (as soon as passed – binding in all EU member Directives: EU directives lay down certain end results that must be achieved in every Member State. National authorities have to adapt their laws to meet these goals, but are free to decide how to do so. (90/314 directive about the travel package ), Decisions: Decisions are EU laws relating to specific cases. specific parties are addressed – fully binding EU recomendations and opinions – non compulsory (tax, employment etc.) 11

National Sport Tourism Committee of the Hungarian Parliament Generating decisions, laws in connection with tourism – follow up in legislation Following up socio-economical effects of laws Control and supervison of the national tourism organisation. Initation of any actions 12

National Tourism Committee Gives opinion about usage of Tourism Aid (Turisztikai Célelőirányzat) aims and supports, a education of torism experts socio-economical effects of tourism, any other questin in connection with tourism Gives opinion about the marketing strategy of touristic regions Keeps in touch with tourism related organisations 13

National Tourism Board Main marketing organisation of tourism Budget for 2012 HUF 6.5 billion 14

Levels of legislation LAWS Gov. Decrees Gov. Decisions Ministerial Decrees 15

16 Legal environment CXVII. law LXXXI. law C. law XCII. law CLXIV. law IV.law Foreign Exchange V. law IATA membership CXXVII. law 297/2001 (XII.27) Governmental Decree 281/2008 (XI. 28.) Gov. Decree 213/1996 (XII. 23. ) Gov. Decree IATA – BSP rules

213/1996 –Personal –Financial –Tangible and intangible assets 281/ Travel contract 17

18 Thank You for Your kind attention!