Contents Introduction chapter 1

participants are revised. 
FORM OF PAYMENT/CREDIT LINE 
The contract agreement specifies the form of payment (e.g. cash, company check, 
bank draft) and currency. It also specifies when payment is due (e.g. “upon check-
out”) and if credit lines are extended, the amount and time limit to pay up is spelled 
out (e.g. P1000,000 or thirty days, whichever comes first.) When chartering 
equipment from transportations companies, the insurance fee is normally included. 
However, in some instances, this fee appears separately. The same applies to toll fees. 
Rates for passage on a per-person, per-sector basis always includes the insurance 
fees. Terminal fees are taxes, however, are reflected separately. The insurance fees 
and corresponding coverage is more comprehensive for tourist vehicles than other 
commercial vehicles. It is very important to note here that violating the conditions of 
an insurance policy, such as loading more passengers than those allowed by the 
nsurance policy, or operating in sectors and areas not covered by the policy, renders 
the insurance coverage null and void. Cover charges in restaurants and discos are 
inclusive of tax. The minimum charge policies of some disco houses, and pubs are 
subject to tax and, in most cases, service charge. 
APPLICABLE CONCESSIONS 
Suppliers normally grant concessions to tour operators. Tour operators in turn, pass 
these on to their clients. Transportation companies would normally grant and free 
ticket for a specified number of full-paying tickets issued, if these are travelling 

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together on the same sector, flight and date. Concessions when chartering 
transportation equipment may extend to one hour of usage free, for every five full 
hours of usage. In the hospitality industry concessions range from one free bed for 
every fifteen paying beds, up to maximum four beds, to free welcome drink or 
breakfast included in room rate. As a rule of thumb, free meals are not granted as 
concessions. Each supplier will grant concessions in accordance to the perceived 
potential or actual track record of the tour operator. 
VALIDITY OF CONTRACTED RATES
Suppliers of services and products must indicate the validity of the contracted 
rates, both in terms of time-year-round with peak/lean or high/low seasons and 
markets. Some suppliers have different rates for different markets. As a rule of 
thumb, rates are valid either 01 January through 31 December or 01 April through 31 
March. For some European operators, the season may be from 01 October through to 
30 September. The following are always considered peak seasons in the Philippines: 
Christmas, 
New 
Year, 
Chinese 
New 
Year 
and 
Holy 
Week.
Figure 5. Key components of tourism industry 
Source; by author