2. This presentation covers the following
points:
The planning procedure for a tour
The various negotiations that occur
while confirming a tour
The strategy related with pricing a
package
The sources of information
Contd....
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3. Contd
Factors responsible for deciding a
tour pricing
The pre tour preparations
The various immigration and travel
formalities
The implementation procedures
during a tour
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4. Packages or inclusive tours consists of a series
of integrated travel services such as:
Transportation
Transfers
Accommodation
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5. Recreational or business tourist services
Other services
Excursion
Car hire.
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6. The complete time scale for a tour operating
programme may be divided into the following five
stages :-
Stage One: Research And Planning
Stage
Stage Two: Negotiations Stage
Stage Three : Administrative Stage
Stage Four : Marketing Stage
Stage Five : Departure Stage. 6
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7. Stages Activities
Research and planning stage i) Study the economic/political
factors influencing the future
development of package tours
ii) Identify the promising or hot
destinations
iii) Check for the upcoming new
destination.
iv) Decide on tour size, duration
(number of days) and fixed/
flexible departure dates.
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8. Stages Activities
Negotiation stage i) Initial negotiations with printer
for printing brochures/ vouchers
ii) Negotiation with airlines for
chartered flight/ group fare
iii) Negotiation with hotel, transfer
services, optional excursion
operators
iv) Art work and text under
development at design studies,
with layout suggestions
v) Contact with sightseeing
services
vi) Negotiations with destination
management companies
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9. Stages Activities
Administrative stage i) Determine exchange rates
ii) Estimate selling price based
on inflation
iii) Proofs from printers and
making corrections(if any)
and finalizing the proof
iv) Recruitment and training of
reservation/ administration
staff
v) Final tour pricing to printer
vi) Establishment of brochures
printed
vii)Reservation system
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10. Stages Activities
Marketing Stage i) Appointing Marketing
Executives
ii) Distributing Brochures on
market destination among
agents
iii) Initial agency sales
promotion including launch
iv) Advertising through local
and national newspapers
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11. Stages Activities
Departure stage i) Peak advertising and promotion
through trade fairs and public
interaction
ii) Recruitment and training of
resort representatives, escorts
etc
iii) Sum up details of the tour
programme.
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12. Tour operators can collect information on
destinations by:
Tour operator staff.
Stakeholder contribution.
Dialogue with competitors.
Customer feedback
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13. PROCESS OF TOUR OPERATOR NEGOTIATING
1) Airlines negotiation
Once the dates of departures have been fixed,
negotiations start with different parties e.g.
Airlines, hotels and other tourism
counterparts, leading to formal contracts
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14. PROCESS OF TOUR OPERATOR NEGOTIATING
Spell out the conditions for the release of
unsold accommodation or of block bookings on
air-seat of a scheduled flight, or the cancellation
of aircraft flights with any penalties that the tour
operator will incur
10% of the total cost for a deposit to be paid
upon signing the contract
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15. PROCESS OF TOUR OPERATOR NEGOTIATING
Reputation of the tour operator is very
important determines the terms and conditions
and pricing for the contract
Determined dates and frequency of departures,
airports to be used and times of arrival and
departure
Consolidated into a form suitable for printing
into a tour brochure
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16. PROCESS OF TOUR OPERATOR NEGOTIATING
2) Hotel Negotiations
Generally more informal
Hotel agrees to guarantee accommodation
based on receipt of the notification of
booking from the tour operator, whether by
phone, mail fax or e-mail
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17. PROCESS OF TOUR OPERATOR NEGOTIATING
Long-term contracts can be blocking of rooms,
attraction of providing the tour operator with the
lowest possible prices
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18. PROCESS OF TOUR OPERATOR NEGOTIATING
Tour operator must also clarify a number of
other facts; including :-
Reservations and registration procedures
Accommodation requirements for tour guide or
representatives
Handling procedures and fees charged for Porter
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19. PROCESS OF TOUR OPERATOR NEGOTIATING
Special facilities availabilities
Languages spoken by hotel staff
Systems of payment by guest of drinks or other
extras
Reassurance on suitable fire and safety
precautions
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20. PROCESS OF TOUR OPERATOR NEGOTIATING
3) Ancillary Services
Inbound tour operators and coach companies
to provide coach transfers between airport
and hotels
Car rental companies’ commission
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21. The overseas representative’s duties include:-
handling of guest inquiries
advising on foreign exchange
organizing and supervising social activities at
the hotel
providing cab if required by the guest
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22. keeping updated with the tours progress
guiding the group with upcoming events(If any)
booking optional excursions
handling special requirements of customers
handling of complaints
Handling other miscellaneous problems
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23. PACKAGE PRICE STRATEGY
There are two important aspects of pricing – the
open market rate or rack rate, and
the discounted price to which conditions are
attached
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24. Elements of Pricing are :-
Flight and Hotel cost
Resort agent’s handling fee
Transfer cost and Gratuities, porter
age etc.
Mark up for agency services and
their profit
Marketing and administrative cost
and
cost of welcome gift/ souvenirs for
the group etc
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25. The factors which effect tour operation pricing are
:
Exchange rate fluctuations,
Seasonality,
Inflation rate in the destination country, and
Increase in fuel or other costs.
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26. Selection of Wardrobe
Reconfirmation Calls
Immigration and Custom procedures abroad and
returning home
Tipping Policy and Gratuities
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27. The main pre-tour preparations a tour manager should
make are:
Confirming reservations
Writing out reports
Evaluating services.
Copy of client’s itinerary
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