CU-B.Sc.TTM-SEM III-Tour packaging- Second Draft-converted

B.SC. TRAVEL AND TOURISM MANAGEMENT SEMESTER III TOUR PACKAGING BTT201

2 CU IDOL SELF LEARNING MATERIAL (SLM)

CHANDIGARH UNIVERSITY Institute of Distance and Online Learning Course Development Committee Prof. (Dr.) R.S.Bawa Pro Chancellor, Chandigarh University, Gharuan, Punjab Advisors Prof. (Dr.) Bharat Bhushan, Director – IGNOU Prof. (Dr.) Majulika Srivastava, Director – CIQA, IGNOU Programme Coordinators & Editing Team Master of Business Administration (MBA) Bachelor of Business Administration (BBA) Coordinator – Dr. Rupali Arora Coordinator – Dr. Simran Jewandah Master of Computer Applications (MCA) Bachelor of Computer Applications (BCA) Coordinator – Dr. Raju Kumar Coordinator – Dr. Manisha Malhotra Master of Commerce (M.Com.) Bachelor of Commerce (B.Com.) Coordinator – Dr. Aman Jindal Coordinator – Dr. Minakshi Garg Master of Arts (Psychology) Bachelor of Science (Travel &Tourism Management) Coordinator – Dr. Samerjeet Kaur Coordinator – Dr. Shikha Sharma Master of Arts (English) Bachelor of Arts (General) Coordinator – Dr. Ashita Chadha Coordinator – Ms. Neeraj Gohlan Academic and Administrative Management Prof. (Dr.) R. M. Bhagat Prof. (Dr.) S.S. Sehgal Executive Director – Sciences Registrar Prof. (Dr.) Manaswini Acharya Prof. (Dr.) Gurpreet Singh Executive Director – Liberal Arts Director – IDOL © No part of this publication should be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording and/or otherwise without the prior written permission of the authors and the publisher. SLM SPECIALLY PREPARED FOR CU IDOL STUDENTS Printed and Published by: TeamLease Edtech Limited www.teamleaseedtech.com CONTACT NO:- 01133002345 For: CHANDIGARH UNIVERSITY 3 Institute of Distance and Online Learning CU IDOL SELF LEARNING MATERIAL (SLM)

First Published in 2021 All rights reserved. No Part of this book may be reproduced or transmitted, in any form or by any means, without permission in writing from Chandigarh University. Any person who does any unauthorized act in relation to this book may be liable to criminal prosecution and civil claims for damages. This book is meant for educational and learning purpose. The authors of the book has/have taken all reasonable care to ensure that the contents of the book do not violate any existing copyright or other intellectual property rights of any person in any manner whatsoever. In the event the Authors has/ have been unable to track any source and if any copyright has been inadvertently infringed, please notify the publisher in writing for corrective action. 4 CU IDOL SELF LEARNING MATERIAL (SLM)

CONTENTS Unit - 1 Introduction To Tour Package......................................................................................6 Unit - 2 Significance Of Tour Package....................................................................................37 Unit - 3 Tourism And Other Organization...............................................................................68 Unit - 4 Tour Formulation Stage-I .........................................................................................104 Unit - 5 Tour Formulation Stage -Ii.......................................................................................117 Unit - 6 Tour Formulation- Stage Iii......................................................................................141 Unit - 7 Tour Costing.............................................................................................................168 Unit - 8 Components Of Tour Cost Sheet..............................................................................178 Unit - 9 Tour Cost Sheet ........................................................................................................185 Unit - 10 Pricing Strategies....................................................................................................198 5 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT - 1 INTRODUCTION TO TOUR PACKAGE 6 Structure 1.0 Learning Objectives 1.1 Introduction 1.2 History of Tour Package 1.3 Evolution of Travel Agency and Package Tour 1.4 Origin of Tour package 1.5. Cox’s & Kings 1.6 Thomas Cook and its origin 1.7 Types of Tour Operator 1.8 Types of tour Packages 1.9. Factors Affecting Tour Formulation 1.10 Itinerary Preparation 1.11 Negotiation 1.12 Costing and Pricing a Package tour 1.13 Tour Brochure 1.14 Summary 1.15 Keyword 1.16 Learning Activity 1.17 Unit End Questions 1.18 References 1.0 LEARNING OBJECTIVES. After learning this unit, you will be able to • Identify the meaning of Tour Package. • Explain the definition for Tour Package. • Describe about the Origin of Tour Package. • Recognize the types of Tour Package. • Describe about the Tour Package CU IDOL SELF LEARNING MATERIAL (SLM)

1.1. INTRODUCTION Package holidays, popularly known as a tour package or simply the word ‘tour’ in the travel and tourism industry refers either to a package tour escorted or not escorted by the tourist guide. When we say tour package, it means a pre-arrangement, prepaid trip that combines two or more travel components like airfare, airport transfer, accommodation, and other services. Practically, to define the tour package concept is complex one rather understands. Holloway defines a tour package as “a total tourism product consisting of transportation from the market area to the destination, accommodation at the destination and recreational activities promoted by the tourists.” According to Gregorg “a tour package is advertised journey including specific features, arranged and promoted with tour literature by a tour operator and paid for in full by the tourists before starting the tour.” Technically, a package tour/tour package is a total tourism product as it generally includes transport from the origin place to the destination, accommodation at an en route place or at the destination and other recreational or travel services. These components are purchased by an individual, firm or company called the ‘tour operator‘. He combines all the travel components in a package and sells them at all-inclusive prices to the clients. 1.2 HISTORY OF TOUR PACKAGE The term ‘tour’ was in vogue as early as 1670. The Britishers travelled to widen their knowledge of the continent, especially to study the culture and social life. This practice was gradually adopted by other lovers of cultural centres. The result of the process was that many European historic and cultural centres were opened to the British tourist. By the early 1730’s the small fishing resorts around the British coast begin to attract tourists seeking to their diseases by drinking the sea-water or by immersing themselves in it. 7 CU IDOL SELF LEARNING MATERIAL (SLM)

The introduction of a rail link between the major centres in 1830, had a profound impact on the pleasure travellers for the first time. Many entrepreneurs began to inspire rail travel by organizing excursions for the public at discounted offers. However, to ‘the origin of package tour’ the credit goes to Mr. Thomas Cook in 1855, Cook, extended his business operation to different countries by introducing the first ‘inclusive tour‘ to Paris. Mr. Cook put together all the components of tourism products and sold them as ‘inclusive tour’ to the tourists. His pre-packaged tour inspired other tour organizations in the travel industry to organize similar tours to all parts of the globe. Most of Cook’s tours were a linear tour i.e., the person went from place to place on a single destination. Basically, Mr. Cook developed the concept of ‘grand tour and escorted tour’, the concept which is still used. Incidentally, World War II has tremendously developed the package tour concept because of the following reasons: • Social and Economic Conditions • Lower Cost • Increase in Aircrafts • Marketing Conditions • Legal Requirements • Integration took place. Today, package tours are a vital segment of the world’s travel and tourism industry. According to WTTC, the package tour sales generate $25 billion annually in the United States, $18 billion in Europe, $19 billion in Britain, and $21 billion in Asia. Today tour sales represented 50 percent of all leisure travel sales and 35 percent of all travel agency revenues. 1.3 EVOLUTION OF TRAVEL AGENCY AND PACKAGE TOURS The business of travel agency has undergone significant changes in the last two decades. Gone are the days when there were no formal travel intermediaries to help travellers visit places of interest. Several travel obstacles discouraged people to travel distance places. Only a selected few managed to travel due to their own curiosity, motivation and spending ability. Many could not make it due to the lack of communication network along with facilities and 8 CU IDOL SELF LEARNING MATERIAL (SLM)

amenities. Leaving behind the job of a travel agent, a destination did not even have minimum facilities to hold the visitors for an hour long. So many changes have taken place over the centuries. Tourism destinations are connected by modes of transport and visitors find a place of stay at the destinations. 4 When modern communication system came into existence in 18th and 19th centuries, the world could witness mass travel leading to the demand of luxury transport and advance arrangement of stay and sightseeing. Those advance bookings of train, ferry, bus, airlines, theatre hall, entry fees, etc were organized by a person with sound experience and information. In the beginning of travel agency business, travel agents could help their own community members or fellow members travel safely. Later, it became a formal business with all professional practices. Gradually, the business has grown in such a scale that competitive multinational travel companies have entered into this travel business. This lesson will explain the origin of travel agency business in the world with reference to the contribution of Richard Cox and Thomas Cook for having set up professional travel agency in the 18th and 19th centuries respectively. 1.4 ORIGIN OF TRAVEL AGENCY BUSINESS The nature of travel agency business is to provide holiday-related services such as ticket booking, transfer arrangement, hotel room booking and arrangement of ground transportation, venue selection and booking for MICE activities. The scope of business of travel agents was narrow and confined to selected services. Moreover, the business was managed with small investment. It was risky business as it was depending upon the natural and socio-political along with cultural factors. The amount of profit was too little to attract new entrants to do this business. A number of restrictions were imposed by the government on travel agents and tour operators for entry into tour operation business. Tour operators had no choice, but to deal with other problems like confirmation of hotel rooms, safety in travel, quality of foods, travel documents, volatile political system, language differences, cultural differences, cumbersome and tedious travelling, long journey, etc. However, invention of railways and steamship as a common mode of transport changed the perceptions of people on travelling distance places. Thus, Thomas Cook could emerge as the first professional Travel Agent in the wake of introduction of affordable railway services in the United Kingdom. However, prior to Thomas Cook, Cox & Kings introduced travel business in UK. You will read about the contributions of these two big travel agents along with a couple of other travel agents in Europe, USA and India in this lesson. 9 CU IDOL SELF LEARNING MATERIAL (SLM)

1.5 COX & KINGS Cox & Kings in the second half of eighteenth century became pioneer in providing travel logistics to British Army stationed at various locations in the world. It claims to be 5 the oldest travel agency in the world. The origin started from the appointment for making arrangements of auxiliary services to the First Foot Guards as Regimental Agent. Richard Cox worked under the mentor of Colonel Lord Ligonier for providing necessary services to the Army Officers in the overseas. The Company became the most reliable military agents for British Government. In the subsequent period, business got expanded to banking, shipping and tour operation business. Being a 250-year-old company serving leisure and business travellers, it maintains business and operational networks across the world. Over the years, the company has created a huge brand and credibility in the outbound travel market. Its international offices and representatives are located in UK, USA, Japan, Germany, Spain, South Africa, Russia, Italy, Sweden and Australia. Cox & Kings was renamed as the Eastern Carrying Company Limited as per the Indian Companies Act, VII of 1913. Fortunately, the company got back its generic name as Cox & Kings in 1950. It was registered as Private Limited Company in 2001 and an enlisted company of National Stock Exchange of India. It is a premium brand in offering all travel related services in the Indian subcontinent. About 5000 trained staff members are working at 14 offices, 25 associated offices and 44 associate offices in India. In addition to its headquarters in Mumbai, 12 branch offices are located in New Delhi, Chennai, Bangalore, Kolkata, Ahmadabad, Kochi, Hyderabad, Pune, Goa, Nagpur and Jaipur. The company offers competitive tour packages to suit all segments of Indian customers. Its areas of operation include leisure and corporate holidays, insurance and frontier formalities. Its outbound package tours are promoted in the brand name of Duniya Dekho. This particular package has become so attractive due to packaging, pricing and marketing strategies. It is a group tour comprising destinations in Australia, New Zealand, Europe, US, Canada, Far-East, Middle East, South Africa and Mauritius. Cox & Kings is a professionally managed Public Limited Company working for FIT and GIT travel as one-stop travel solutions point. Other services include charter flights, cruises, foreign exchange and MICE. The Flexihols is an outbound holiday for FIT customized for independent travellers wishing to travel to Europe, Far East, America, Australia, New Zealand, and Africa. At the same time, many trade fare packages are also promoted for traders, exporters, importers and manufacturers to organize technical visits, factory visits, and buyer-seller meets. For 10 CU IDOL SELF LEARNING MATERIAL (SLM)

example, Cox & Kings organized package tours for 75 corporate houses in 2006. 6 It is a recognized active member of TAAI, IATA, PATA, ASTA, IATO, ICCA and ICPB Charter. The Government of India, Ministry of Tourism conferred on Cox & Kings as the Best Conference Agent for consecutive seven years. Radius is a business associate to maintain its operations across 4,640 branches around the world. The company acquired Holiday Break PLC for GBP 323.43 million in 2011 and the CVCI private equity investment has been made in Cox & Kings Ltd.’s UK Subsidiary 2012. Reserve Bank of India (RBI) has granted the Company as Category II Foreign Exchange License. It works with authorized dealer’s foreign exchange nominated banks. 1.6 THOMAS COOK AND ITS ORIGIN Thomas Cook is known to have aroused interests to help people in England undertake travel within the country or neighboring country. The 9th June, 1841 is a red letter day in the history of travel trade in the world. On this day, Thomas Cook walked from Harborough to Leicester to attend a temperance meeting and he stumbled upon with an idea of arranging train tickets for the members of Temperance Society where he was serving as an evangelist and Baptist book seller. He started his carrier as a Cabinet Maker. A 32-year-old cabinetmaker could become world’s founder professional travel agent. He achieved many milestones during his lifetime, and many were achieved by his son John Mason Cook. Thomas Cook was much worried about the Victorian social problems due to the consumption of heavy alcohol. He thought of bringing some changes with the travel that could be possible due to invention of railway system. Thomas Cook was the first travel agent who introduced hotel coupons, circular notes, credit cards and advance reservation as part of its travel innovations. Thomas Cook showed the path of travel business to other contemporary travel agents with his organized package tour for leisure tourists. His pleasure and continental travel are now being studied by many new-age entrepreneurs in travel trade. 11 CU IDOL SELF LEARNING MATERIAL (SLM)

Fig 1.1 Thomas Cook First Excursion The history of professional travel agency business started with a day-long excursion tour for his 570 friends in the Temperance Society from Leicester to Loughborough in 1841. He took the services of the British Railway. All his friends were charged one shilling for this excursion. That excursion tour was accompanied with a band to play typical hams and a picnic lunch of hams along with the afternoon tea for refreshment. Thus, the successful conduct of the first excursion tour by Thomas Cook led to introducing all-inclusive package tour. Subsequently, a series of trips were conducted between Leicester, Nottingham, Derby and Birmingham on behalf of Local Temperance 7 Societies and Sunday Schools to provide experience of train travel. Thomas Cook described the first excursion as Enthusiastic Philanthropy as he did not have any intention of making money. He was printing posters and hand bills to facilitate people to travel comfortably. Establishment of Modern Travel Agency The beginning of the establishment of modern travel agency in the world started with the railway journey from Leicester, Nottingham and Derby to Liverpool. He made some profits from this trip. The first mass tour across England with entertainment activities began in 1845 to provide value-for-money package. Sir Joseph Paxton, architect of the Crystal Palace, persuaded Thomas Cook to devote himself to bringing workers from Yorkshire and the 12 CU IDOL SELF LEARNING MATERIAL (SLM)

Midlands to London for the Great Exhibition of 1851. The untapped opportunity was grabbed by Thomas Cook with a lot of determination and enthusiasm. Thomas Cook conducted tours for 150,000 people to visit the Great Exhibition in Hyde Park from Yorkshire and the Midlands in 1851 followed by the first continental tour in 1855. He accompanied two landmark tours to the International Exhibition from Harwich to Antwerp, Brussels, Cologne, Frankfurt, Heidelberg, Strasbourg and to Paris. Travel Innovations Thomas Cook introduced Hotel Coupons in 1868 to help customers check in hotels without any hassle. Hotels also honoured the hotel coupons issued by Thomas Cook. It reduced the cumbersome procedures of payments through cash. Hotels accepted the coupons for providing rooms and other allied services such as food, entertainment, transport etc. Hotels were benefited from the coupons as bulk numbers of rooms were booked in advance and it was only transaction. Thomas Cook in turn received commission from hotels as both maintained the accounts of their periodic transactions. Thomas Cook introduced Circular Note in 1874 to help customers travel safely. Circular Notes were accepted across the hotels, restaurants and transport operators at several tourism destinations and cities in the Europe and the USA. The Cook’s Circular Note got circulated in New York and it was treated as an early invention of traveller’s cheque in the world. More particularly, the circular notes were easily exchanged against the local currency that provided much relief to the travellers in meeting the contingency expenditures like shopping, tips, transfer, extra services, etc. Package Tour for Middle Class The massive industrialization in the mid 19 th century made massive impact on the increase in income and consumption. It created sizable middle-class people with much disposable income. Taking the advantage of the trends, Thomas Cook took the benefits of rising middle- class customers when customized package tours were designed to suit their travel needs. Those middle-class customers demanded for visiting destinations in Switzerland and Italy. He negotiated with innkeepers and hoteliers to provide rooms and meals at good prices. Tour Across Intra-Continental Thomas Cook continued to expand his business in Europe too. He conducted Grand Circular Tours to Brussels, Cologne, the Rhine, Heidelberg, Baden-Baden, Strasbourg and Paris, with return trip to London via Le Havre or Dieppe. He undertook the familiarization tours to 13 CU IDOL SELF LEARNING MATERIAL (SLM)

Switzerland in June 1863 to visit the places of interest, contact hotels and innkeepers. He accompanied sixty affluent class clients and conducted the tour to Geneva. Thomas Cook organized trips in the Northern and Western Europe in 1863. With the co-operation of the Paris, Lyons and Mediterranean Railways, Thomas Cook began to issue Circular Train Tickets (in both English and French) between Paris and the Alps. He then conducted the first circular tours to Switzerland, after having made an immediate success. He also arranged the package tour across the Alps. The first Italian tours organized in the summer of 1864 during which Thomas Cook escorted two large groups. One group was taken to Florence and parts of central Italy and the other one was accompanied to Rome and Naples. Intercontinental Tour Thomas Cook conducted the tour to the USA in the North American continent. He introduced the ready-made package tour to London, Paris, Rome and Geneva. In the subsequent time, the Atlantic Ocean was crossed for conducting outbound tours to North America. It was Mr. John Mason Cook (son of Thomas Cook) who conceived the operation and management of the first-ever American tour. Thomas Cook undertook an exploratory trip to the North America in 1865 for the sake of gathering information about the transport, accommodation, food, sightseeing, safety and security, etc. The Company extended its operation to Egypt and Palestine in the year 1869 in order to cater the demand for visiting Pyramids in Egypt and religious 9 visit to Jerusalem. He managed to develop a system of tours that covered 4,000 miles of railways journey. The objective of aligning with the AMTRK helped in conducting safe and affordable package tour in the USA. Great Journey That trip was practically possible to travel to Egypt via China in 1869 following the opening of the Suez Canal and the completion of a rail network linking the East and West coasts of America. Finally, Thomas Cook and his small party managed to travel across the Atlantic Ocean by steamship to discover a new route of world. In 1869, he conducted his first party up the river Nile with the help of two steamers. He set out for the Round-the World-Tour from Leicester in 1872 when he reached at the age of 63. They travelled from New York to San Francisco by rail. They cruised to Japan followed by to China across the Inland Sea. He visited Singapore, Ceylon and India. While leaving Mumbai (then Bombay), they crossed the Indian Ocean and the Red Sea to Cairo. He travelled back to London from Cairo, Egypt. Thomas Cook alone set off on an extended tour of Egypt and Palestine. Finally, he reached 14 CU IDOL SELF LEARNING MATERIAL (SLM)

back home after traveling through Turkey, Greece, Italy and France. It was a 222 - day World Tour. He was speechless after seeing the Great Wall of China, the Taj Mahal and the Pyramid. The world tour was a great achievement for expansion of business to different parts of the world. He gathered information about the people, culture, political systems, economic systems, facilities, amenities, transport connectivity, etc. Free Independent Travelers (FIT) started buying packages from Thomas Cook. There were more demands of FITs to buy the Round-the-World Package Tour. Independent travellers visited those places explored by Thomas Cook and his party. Some of them travelled to Asia via Australia and New Zealand rather than China and Japan. Second Generation Thomas Cook Business Thomas Cook was very fortunate to have his son John Mason Cook as an able successor to manage promotion, marketing and administration of company affairs. Mr. Cook could manage the Thomas Cook’s business empire during the World Tour. His son took the control of Thomas Cook business after the head office got shifted to Ludgate Circus. Mr. Cook went for expansion of business to different countries, and he took the decisions at a time when telegraphy was in the beginning and telephone was not invented. Mr. Cook set up overseas editions of “The Excursionist”. It was the newspaper launched by Thomas Cook in 1851 to educate customers about the places interest in France, Germany, India, Australasia, America and the Far East in the package tour. The newspaper was renamed as “The Traveller’s Gazette” in May 1902. It continued to be published until 1939. John Mason Cook’s Remarkable Contribution The British Government appointed John Mason Cook in 1884 to organize a relief expedition up the Nile to rescue General Gordon from Khartoum. Arrangements were made for the movement of 18,000 troops, nearly 40,000 tons of supplies, 40,000 tons of coal and 800 whale boats. Mr. Cook undertook The Gordon Relief Expedition for the British Government as a part of social service to the nation. Mr. Cook and his Egyptian managers supervised the entire operation. Despite all the efforts, Khartoum fell in January 1885 and Gordon was killed. Merger and Acquisition Thomas Cook and John Mason Cook died successively during the 1890s when the company got consolidated its operations worldwide. Mr. Cook’s three sons Frank Henry, Ernest 15 CU IDOL SELF LEARNING MATERIAL (SLM)

Edward and Thomas Albert could manage the operation. They introduced winter sports holidays, tours by motor car and commercial air travel. The company was registered as Thomas Cook & Son Ltd in 1924. The office headquarters was shifted from Ludgate Circus to the aristocratic residential area at Berkeley Street in Mayfair in 1926 Later, the headquarters of Thomas Cook and Son Ltd was used as the Centre of London Society. Thomas Cook & Son Ltd was sold to the Belgian Compagnie International edges Wagon slits et des Grands Express Europeans in 1928. The Wagons Lits was a leading operator of most of Europe’s luxury sleeping cars, including the Orient Express. The Wagons-Lits headquarters in Paris was seized by British forces and Mr. Cook’s British assets were requisitioned by the British Government immediately after the outbreak of World War II. A deal was struck to sell the company to Britain’s Four Mainline Railway Companies. Thomas Cook & Son Ltd struck a deal with Wagons-Lits to hold 25% stake in overseas business. The Nationalized British Railways has taken over the company in 1948. In 1972, Thomas Cook & Son Ltd was taken over by a consortium of Midland Bank, Trust House 11 Forte and the Automobile Association. A new standardized corporate logo was conceived and introduced. Fortunately, Thomas Cook managed to overcome that period and survived the recession in 1970. As a result of which, Thomas Cook enhanced its reputation for providing excellent service by launching a Money Back Guarantee scheme in 1974. Thomas Cook began to concentrate on its long-haul tours program by acquiring Rankin Kuhn Travel in 1982. It closed the operation of short-haul travel market in 1988. The company made a comeback to the core short hauls package tour market in 1996 after it acquired Sun world. Thomas Cook family members celebrated 150 years of its long journey in 1991. The company was acquired by Westdeutsche Landes bank (West LB). It is the Germany’s third largest bank and the LTU Group became the Germany’s leading charter airline in 1992. Thomas Cook Ltd. became a wholly owned subsidiary of West LB in 1995. Thomas Cook & Son Ltd. got benefited from the Post-World War holiday boom, which witnessed one million British nationals travelling abroad by 1950. The Company set up a Business Travel Service (BTA) and renovated the holiday camp at Prestatyn (which had opened shortly before the outbreak of war). Although Cook’s remained the largest and most successful company in the industry, but its dominance in the ravel market was subsequently being contested by the emergence of new travel firms. 16 CU IDOL SELF LEARNING MATERIAL (SLM)

The First German Travel Agencies The first German Travel agencies in the line of modern travel agencies were known as Immigration Agencies. These agencies were engaged in booking ship’s passages and sometimes group journeys from a collection point to the point of embarkation. The oldest of such agencies was Reiseburo Rominger in Stuttgart in 1842. This agency subsequently extended its activities to the whole range of travel services in Europe. To make traveling simple for the individual, the concept of tickets for means of transport were introduced and issued by these larger agencies in Europe. The First Indian Owned Travel Company Pallonji Katgara & Jamshedji Dastoor created the Jeena and Company (a shipping and export company) with a seed capital of US$ 75 in 1900. The Jeena Tours and Travels was established in 1920 with the privilege of being the first Indian - owned travel company. In 1961 the Company was merged into Travel Corporation (India) Pvt Ltd to become India’s largest travel company under the leadership of the Katgaras. 12 Later in 1951 Travel Agents Association of India (TAAI) was established to represent the issues of travel agency business to the government and protect the interest of its members. Prior to TAAI, travel business in India was in the hands of Jeena &Company, Lee and Muirhead India Pvt. Ltd. and N. Jamnadas and Co. Ltd. The Jeena and Company had entered into outbound tours as well. Along with the Indian travel companies, Thomas Cook and Sons and Cox & Kings and American Express came to India for inbound and outbound tour operation. 1.7 TYPES OF TOUR OPERATOR Tour operators are classified as they do tour business and area of operation of package tours. Each category of tour operator is unique in their own ways of providing services. This classification is suggested to distinguish difference of meanings and functions. They are called as inbound tour operators, outbound tour operators, domestic tour operators, specialist tour operators and ground tour operators. Figure presents travel trade intermediaries that include types of travel agency and tour operators. Travel Trade Intermediaries Travel Agency Tour Operators Retail Wholesale Inbound Tour Operators Outbound Tour Operators Domestic Operators Ground Operators 17 CU IDOL SELF LEARNING MATERIAL (SLM)

Travel Trade Intermediaries Travel Agency Tour Operators Retail Wholesale Inbound Outbound Domestic Ground Tour Tour Operator Operator Operators Figure 1.2- Types organization in Modern Travel Trade business Inbound Tour Operator They handle inbound foreign tourists in the host country. They provide them various services on their arrival and departure such as transfer, accommodation, transportation, sightseeing, entertainment, currency, insurance services etc. They are known as inbound tour operators or incoming tour operators as they specifically operate for handling incoming foreign tourists or guests. Inbound tour operators make tour packages individually or in collaboration with foreign tour operators. Packages are promoted and sold directly or through intermediaries. In fact, inbound tour operators attach much added appeal into tourism products. They earn foreign exchange that increases foreign exchange reserve ratio of the host countries. Some of the major inbound tour operators in India are TCI, Indo-Asia Tours and Travels and STIC Travels. An inbound tour operator prepares package tours on their own and conducts tours through ground operators at host destinations. Reception upon arrivals and departures of guests and arrangements of stay and sightseeing are some of the functions of inbound tour operators. 18 CU IDOL SELF LEARNING MATERIAL (SLM)

They get ground arrangements managed inside a country for inbound tourists. For example, a group of 16 Germany nationals including group leader purchased package tour from travel agent at Berlin and arrived at IGI airport, New Delhi. It is the representative of STIC travel to receive the guests upon arrival and handles tour in Delhi. Ground operators are appointed at other places to provider services as per vouchers. Thus, STIC is called as inbound tour operator as it sold and conducted package tours. STIC did not take the services of handling agents and tour conducted in Delhi and STIC has establishments to handle the group. For example, a tour operator needs to adopt innovative marketing strategies to promote the package holidays and work continuously to offer special interests tours to cater the special needs of foreign tourists visiting to India. Outbound Tour Operators They sell package tours highlighting the destinations in foreign countries. These operators are specialized in designing and promoting multi-national tours. Like inbound tour operator, outbound tour operator sells a package tour to an individual or a group of people of a country to another country or a number of countries for a temporary period. They arrange travel documents, transportation and hotels and sightseeing, inbound tour operators/ground operators provide accommodation, transportation, local sightseeing and other services. For example, a group of Indian visitors have bought packages to visit Singapore, Thailand and Bangkok from Cox and Kings Office in Chennai. The Cox and Kings Chennai office takes care of the ground arrangements at these countries through an inbound tour operator. Generally, outbound tour operators appoint inbound tour operators/ground operators to make arrangement of services. They receive the guests at airport, transfer group from airport to hotel and arrange local sightseeing for business or leisure-oriented customers. Domestic Tour Operator Domestic tour operator is one which conducts tour within the country. Domestic tour operators operate within the boundary of home country and cater the diverse needs of individuals and group travellers like inbound and outbound operators. They promote tour packages both through their own outlets and other retail travel agents. For example, a group of pilgrimage from Odisha visited Allahabad as part of religious tour. They bought package tour from the IRCTC and it is the IRCTC to conduct tours for the group at Allahabad. The 19 CU IDOL SELF LEARNING MATERIAL (SLM)

IRCTC is a domestic tour operator that operates within the boundaries of the country for nationals of the same country. Ground Handlers/Operators Ground operator is otherwise known as reception operator or destination management operator or handling agencies. These operators are generally expected to provide arrangements and ground logistics at a particular destination. Thus, a ground operator provides the services required by large tour companies and they do not have a local branch/office. They do not deal with the principal suppliers such as hoteliers, transport operators, car rentals, entertainment organizations and so forth. The operator coordinates, supervises and handles accounts/payments of all services related to tour. For example, Swosti is a ground operator for tribal tour in Odisha. Thus, inbound as well as outbound operators must look into the following aspects before the selection of a ground handling operators. ➢➢ Convenient of Location ➢➢ Size of business ➢➢ Professional staff ➢➢ Length of business ➢➢Reputation and membership with International and national travel and tourism associations ➢➢ Credit facilities The wholesale tour operators primarily depend on ground operators for the following reasons. ➢➢ Introduction of new product or plan to promote these exotic destinations. ➢➢ Lack of control over the government regulations ➢➢ Lack of personal contract ➢➢ Language of barrier ➢➢ Unfeasible to maintain own branches at each destination 20 CU IDOL SELF LEARNING MATERIAL (SLM)

Special Interest Tour Operator This type of tour operator offers and promotes the special interest package tours. They mostly do direct marketing for the packages or through the retail agents. For example, Shikhar Tours and Travels, New Delhi is organizing adventure tours in the Himalayas in India and Nepal. These are the wildlife and ecotourism tour operators, and they design wildlife and ecotourism packages for group in the niche market. This type of tour operator does not plan for mass market as buyers are limited in number. When the company plans for dealing with specialized areas, there must be potential buyers for the package tours as the nature and cost component is relatively higher unlike the conventional package tours. The specialist tour operators only organize tours in the pleasant climate and the business is mostly seasonal in nature. In the recent years, many specialist tour operators are moving towards corporate travel, incentive travel, MICE travel, ecotourism, rural tourism and cultural tourism. They are also called as personalized or customized tour operators as package tours are made on the choice and suggestions of tourists. These are the following areas that specialized tour operators do promote package tours. • Ayurveda and Health • Archaeology and historical sites • Adventure and ecotourism sites • Buddhism and Jainism ancient religious sites. • Special cuisines at each place. • Desert and jungle safari tour These are the following activities that specialized tour operators carry out during the tour. ➢➢ Arrangement of visit of fairs and festivals venues ➢➢ Arrangement for shopping and exhibitions grounds. ➢➢ Provision of hiring equipment’s for sports and games (Golf, winter sports and water sports.) ➢➢ Provision for scholarly interpretation of objects with the help of experts at the museums ➢➢ Arrangements for host community interaction ➢➢ Organizing special cultural programs in the palaces 21 CU IDOL SELF LEARNING MATERIAL (SLM)

➢➢ Special amenities for the tourists in the train or bus journey Roles and Characteristics Tour Operator In this package tour market, tour operators showcase destinations though their unique package tours. Thomas Cook, American Express and Cox and Kings follow the customer- driven approach for designing package tours to cater the demands of customers. Roles of tour operators are given below. ➢➢ It is a wholesaler as it assembles packages as per the trend of market and capacity of distribution channel. ➢➢ It deals with customers directly as a principal agent or foreign travel agent without off-loading tours to ground handling agents. ➢➢ Tour operator has liberty to amend the tour itinerary and program if it warrants. ➢➢ It invests much of time and resources to chart out delightful and value-added tour itinerary for meeting the demand and expectation of tourists. ➢➢ It gives much stress on selling the tour than the conducting the tour. ➢➢ Tour operators are mostly located in the mega cities or in the cities with the international airlines services for the strategic advantage of controlling the package tours. ➢➢ It mostly provides international transfer from hotel to airport and vice-versa, if offices of tour operators are located. ➢➢ It deals with both the tourists and primary service providers as direct intermediary. ➢➢ Tour operators design the tours in such a way that handling agents may not get extra excursion tours directly from tourists. ➢➢ It accepts foreign currency for the tour package and gets accreditation from the Reserve Bank of India money exchange dealer. ➢➢ It gives ample importance to become the professional member of national and international tourism, travel, and hospitality and aviation associations. ➢➢ It is committed to work as a responsible partner in the tourism industry to popularize destinations and explore new potential destinations through their package tours. 1.8 TYPES OF TOUR PACKAGES 22 CU IDOL SELF LEARNING MATERIAL (SLM)

A travel agency/tour operator deals with variety of ‘tour packages,’ catering to the diverse needs of tourists such as adventure, beach, architecture, cultural, business, conference, incentive tours, ayurvedic packages, Buddhist, religious, incentive tour, special interest tours, cruise tour group tour, educational tour, heritage, monuments, wildlife lovers, etc. These are broadly classified into five categories: 1. Independent Tours 2. Escorted Tours 3. Hosted Tours 4. Incentives Travel/Tours 5. Freedom Tours Tour Packages Independent Freedom Tour Tours Escorted Tours Incentive Tours Hosted Tours Independent Tour Independent tours are prepared/formulated for those tourists who want to travel independently. The components of such tours are air travel, air transfer, accommodation, travel documents, sightseeing, boat riding, entertainment, and other travel services. However, in some cases, the tourists are free to purchase every single component separately. Thus, this type of tour provides the tourists considerable freedom to plan the activities according to their own choice. An independent tour may or may not be an all-inclusive tour. Therefore, tour price varies depending on the type of air travel, air transfer, accommodation and is inclusive of other tour 23 CU IDOL SELF LEARNING MATERIAL (SLM)

components. The foreign independent travel (FITs) and domestic independent travel (DITs) are examples of an independent tour. Escorted Tour When a travel agency includes the services of a well-educated and trained tour manager in its package, the tour is called an escorted tour. Basically, escorted tours are meant for those travellers who are planning to visit a foreign country first time. The escort’s responsibilities and duties are to provide comprehensive information and assistance to the group or individual traveller, at the origin, en route and the destination place. The excursion tours are the example of escorted tours. Hosted Tours A hosted tour means when an agency utilizes the services of another agency at a particular destination. Suppose a group of French tourists is coming to India. When the group arrives in India, they are greeted at the airports by TCI, which assists them in clearing their baggage and transfer them to the hotel. Their tour-host (TCI) is available to offer device and information about the local attractions and entertainment. Further, when the group arrives at another designation in India, a different travel agency greets them at each tourist spot. Thus, a hosted tour provides the tourists maximum level of pre-arranged and personalized services. Incentives Travel/Tour It is a motivational programme or a fully paid holiday which is given to the employees by the enterprises as a reward. Mostly in medium and large-scale companies and usually too distant destinations to spur them in maintaining their track record, to increase output, improve the image and moreover to earn the long period loyalty of the employees. There are a number of the other packages offered by a tour company such as a custom tour an excursion tour, an adventure, and special interest package tours. Freedom Tours Freedom tours are becoming very popular these days among the working class. These tours are designed as per the choice of tourists. The tourist is free to choose and plan how they want to travel and enjoy their holidays. These types of tours are meant for that kind of people who like to decide how, when, and where to travel. 24 CU IDOL SELF LEARNING MATERIAL (SLM)

This tourist may an individual, family, group holidays for families and group travel for business. These tours are promoted and developed by the ORBIT. Components of Tour Package What is to be included in a package tour largely depends and varies from one tour organization to another, or from the one country to another, or from one destination to another and from one market to another market. But there are certain well-defined travel services which always turn a part of a package tour irrespective of the tour operator/travel agency, destination and even the market condition. If we study and see the package tours offered by Thomas Cook and Sons Ltd., Cox and King Ltd., and other international travel companies, we find that a package tour has two major components. Therefore, a standard package tour has two basic components namely: Fig 1.3 Components of Tour package 25 • Travel • Ground Arrangements CU IDOL SELF LEARNING MATERIAL (SLM)

Travel industry experience has shown that the first component, i.e. ‘Travel’ is directly bought by the agency from the principal providers like airlines and transport operators and for ground arrangement, the travel agency management asks the ground operators. The reason behind buying ground arrangement from a handling agency is that it represents as a ground operator at a particular destination for the numerous tour organizations. Secondly, the price offered by it are much lower than an individual agency obtain. Thirdly, it is very difficult to get credit from the supplier and finally, it ensures professional travel services. 1.9 FACTOR AFFECTING THE TOUR PACKAGE FORMULATION Generally, the business of package tours involves great risk, high breakeven, high-quality product, and competitive prices. Therefore, the tour management requires in-depth tour planning and market survey. However, before a tour is designed the tour manager should take into consideration certain factors which are crucial in the formulation process. These factors have a profound impact on the tourist’s satisfaction. The main factors are: • Purpose of Tour • Choice of Destinations • Tourist Budget • Legal Requirement • Types of Tourist Accommodation • Tour Period • Departure and stay information • Tour price; inflationary condition • Tour Reference Tools • Tour Features – political stability • The relationship between the host and tourist generating nation Tour Package Design and Selection Process The quality of a package tour is entirely based on the above factors. Essentially, to design/formulate a travel product, the tour manager has to take the biggest responsibility, intuitiveness, imagination, and innovation coupled with a lot of business activities which range from finding new exotic destinations and planning, organizing or promoting such tour. The following are the main stages in the tour design and selection process: 26 CU IDOL SELF LEARNING MATERIAL (SLM)

Initial Research (i) The Destination Research The decision to develop and formulate a new package is a multi-stage process that involves various positive and negative points/steps. Normally, the idea for a new product comes either from the tour executive within the company due to a review of the questionnaire completed by the previous tour members because of the political, economic and social development in a particular area. When a tour manager see that a large number of old clients are interested in taking a trip to particular destinations, naturally, those destinations become the nucleus of a new ‘tour concept’. (ii) Market Research Since tour package is a complete tourism product, obviously, before formulating/designing this product, market research needs to be analyzed and assessed in a systematic manner. Market research provides us the answer to the following questions: • What is the size of the tourism market? • Who are the existing clients? • Where do they live? • Who will be their potential buyers? • Who are their competitors – their strategy and area of business leisure? • How many tourist ones want to cater? • What price will the clients accept? • What facilities are available and required? • What are the constraints viz., license, permission, finance, restrictions, taxes, and others? Once we know the basic components of the package tour, distribution channels, market conditions, constraints in the tourism market, we can develop the marketing strategy. It enables the smooth functioning of the agency and also offers a clear picture of the tour programme. Practically, market research is conducted by the private tour companies/ private tourism enterprises in order to penetrate the market. 1.10 ITINERARY PREPARATION 27 CU IDOL SELF LEARNING MATERIAL (SLM)

By itinerary one means the designing of a programme which one wants to sell and it includes destinations, stopping points, number of days and the travel services that are to be included in the programme. Whether it is a lean season or an offseason, escorted or not escorted, consumer-oriented or readymade tour programme, the itinerary is prepared to identify the origin, destinations, stopping points, accommodations, sightseeing and other travel services on travellers’ trip. Handling Agency or Destination Company The appointment of handling agency not only ensure excellent travel services to the tourist but also make the operation smooth and profitable. It is a matter of great significance as the success of travel business largely depends upon the clients are actually taken care of during the tour. It is a positive match between the promised services and tourist’s actual experiences or feelings. Thus, the tour operator should consider the experience of the handling travel agency in the business, the area of operation, reputation, credibility, professional staff, credit facilities and the competitive price in appointing a handling agency. 1.11 NEGOTIATION It is another important management decision area in tour designing and planning. Once the decision has been made regarding the destination’s concerning their date, duration and number of clients to be carried during the trip, the tour management starts negotiations with the principals’ suppliers for a normal contract. Negotiation means talk between the travel companies and the principal suppliers for the terms, conditions, and prices of the components of a tour package. When both parties are satisfied, it leads to a formal or informal contract between them. The tour company negotiates with the following tour vendors/suppliers: • Airlines • Accommodation • Transport Operations- Rail and Road • Ground Operators • Cruise Companies • Car Rental Companies 28 CU IDOL SELF LEARNING MATERIAL (SLM)

• The overseas representatives • Ancillary Service Organizations 1.12 COSTING AND PRICING A PACKAGE TOUR The cost of a package tour encompasses the air ticket, the hotel room, car rental, entertainment charges, administrative costs, promotional costs, and other travel services. The confidential tariff helps the travel company in preparing the cost sheet which will enable the concern to determine its price strategy. Tour pricing is a big factor in the success of the company’s tour programme. The price of a package tour is, whether it is an escorted, independent or hosted the tour, often lower than the combined costs of the same components purchased separately from the principals. However, the purchase price of a travel product is based on three factors: Cost, competition, and demand. Every tour package sold by a vendor has a quantifiable cost. To produce profit the price paid by the tourists must be greater than the agency’s cost. 1.13 TOUR BROCHURE The tour package is an intangible product which has to be purchased by the tourists/clients without inspection and sometimes even without adequate knowledge. In these circumstances, the brochure becomes the principal instrument to perform the major tasks to inform the clients about the products and to pursue them to purchase it. Designing, printing, and distributions of tour brochures require necessary skills and knowledge about the components of the tour package. Basically, in the era of specialization and intense competition, tour brochure creates awareness and provides the description of the holiday programme. Thus, tour management should consider various pros and cons while preparing a tour brochure. A brochure should contain the following information: • Name of the Travel Company • Means of transport • Details about destinations • Itinerary 29 CU IDOL SELF LEARNING MATERIAL (SLM)

• Accommodation, types, location, meals • Name of the overseas representative • Duration of each tour • Booking, reservation and cancellation conditions • Details of other services – insurance, currency, entertainment Travel documents required • Details of price Development of Reservation System The next step in tour formulation process is reservation system. The agency management in order to put a package into operation must develop and implement a scientific reservation system. The system depends on whether the reservation is to be handled manually or with a computer working on the distribution method. Whatever method the agency may adopt, the agency management should always keep in mind the sole objective of the reservation system. Marketing of Tour Package Once a tour package is ready, travel agency management has to make a careful decision regarding promotion and marketing of the particular package tour. The basic objective of management is to make a tour package widely known to make it more and more attractive. To achieve these objectives, the management must consider the budget available, promotion mix, potential market, easiest and most effective media, campaigning through the international, regional or the public/private sector etc. The promotion of a package tour means increasing its sales potential and creating an awareness of the existing and potential markets. The following methods are commonly used to promote package tours: • Middlemen – Retail Travel Agents, GSA, consolidators • Familiarization tours • Building Brand Loyalty • Encouraging Potential Buyers • Competitive Market • Courier 30 CU IDOL SELF LEARNING MATERIAL (SLM)

Tour Handling/Actual Tour Operation After the successful marketing and achieving target sales, the next and final step in the process of tour designing is tour handling. It means an actual operation of tours, which generally includes administrative work and passenger handling like maintaining reservations, handling deposits, sending advice to ground operators, arranging travel representation, analysing the feedback received from clients/escorts/ground operator and so on. All this is not an easy task. At every stage, one has to face different types of queries and problems due to lack of coordination and communication. Significances of Tour Package Tour package is beneficial to travel companies, travelers, destinations and other organizations which are directly or indirectly involved in the tourism business. The main benefits are: • Time Saver • Increase the seasonality of a destination cost/price • Earn foreign currency • Better quality of products professional services • Wide variety of the tour package • Provide bulk business to organizers 1.14 SUMMARY • A tour package is a pre-arrangement, prepaid trip that combines two or more travel components like airfare, airport transfer, accommodation, and other services. The term 'tour' was in vogue as early as 1670. Thomas Cook introduced the first 'inclusive tour' to Paris in 1855. He combined all the travel components in a package and sold them at all-inclusive prices to the clients. The concept of a tour is complex, but the concept is complex one rather understands. • Most of Cook's tours were a linear tour i.e., the person went from place to place on a single destination. Package tours are a vital segment of the world's travel and tourism industry. According to WTTC, the package tour sales generate $25 billion annually in the United States. Today tour sales represented 50 percent of all leisure travel sales and 35 percent of travel agency revenues. The business of travel agent has undergone significant changes in the last two decades. 31 CU IDOL SELF LEARNING MATERIAL (SLM)

• The modern communication system came into existence in 18th and 19th centuries, the world could witness mass travel. Travel agency business is to provide holiday- related services such as ticket booking, transfer arrangement, hotel room booking and arrangement of ground transportation. Cox & Kings in the second half of eighteenth century became pioneer in providing travel logistics to British Army stationed at various locations in the world. Thomas Cook could emerge as the first professional Travel Agent in the wake of introduction of affordable railway services in the United Kingdom. You will read about the contributions of these two big travel agents along with a couple of other travel agents in Europe, USA and India in this lesson. • The company offers competitive tour packages to suit all segments of Indian customers. Cox & Kings is a professionally managed Public Limited Company working for FIT and GIT travel as one-stop travel solutions point. It is a recognized active member of TAAI, IATA, PATA, ASTA, IATO, ICCA and ICPB Charter. The Flexihols is an outbound holiday customized for independent travelers wishing to travel to Europe, Far East, America, Australia, New Zealand, and Africa. • The company acquired Holiday Break PLC for GBP 323.43 million in 2011 and the CVCI private equity investment has been made in Cox & King's UK Subsidiary 2012. Thomas Cook conducted tours for 150,000 people to visit the Great Exhibition in Hyde Park from Yorkshire and the Midlands in 1851. First mass tour across England with entertainment activities began in 1845 to provide value-for-money package. Thomas Cook introduced Hotel Coupons in 1868 to help customers check in hotels without any hassle. Circular Notes were accepted across the hotels, restaurants and transport operators at several tourism destinations and cities in the Europe and the USA in the 1870s. • Cook's Circular Note got circulated in New York and it was treated as an early invention of traveler's cheque in the world. Industrialization created sizable middle- class people with much disposable income. Circular notes were easily exchanged against the local currency that provided much relief to the travelers. Thomas Cook conducted the tour to the USA in the North American continent. The Company extended its operation to Egypt and Palestine in the year 1869 in order to cater the demand for visiting Pyramids in Egypt and religious visit to Jerusalem. 32 CU IDOL SELF LEARNING MATERIAL (SLM)

• The objective of aligning with the AMTRK helped in conducting safe and affordable package tour in the USA. Thomas Cook organized trips in the Northern and Western Europe in 1863. In 1869, he conducted his first party up the river Nile with the help of two steamers. He set out for the Round-the-World-Tour from Leicester in 1872 when he reached at the age of 63. He was speechless after seeing the Great Wall of China, the Taj Mahal and the Pyramid. • His son took the control of Thomas Cook business after the head office got shifted to Ludgate Circus. Mr. Cook was fortunate to have his son John Mason Cook as an able successor to manage promotion, marketing and administration of company affairs. Thomas Cook was founded by John Mason Cook in 1884 to organize a relief expedition up the Nile to rescue General Gordon from Khartoum. Mr. Cook's three sons Frank Henry, Ernest Edward and Thomas Albert could manage the operation. They introduced winter sports holidays, tours by motor car and commercial air travel. • The company was sold to the Belgian Compagnie International edges Wagons-lit’s et des Grands Express Europeans in 1928. The Nationalized British Railways has taken over the company in 1948. Thomas Cook began to concentrate on its long-haul tours program by acquiring Rankin Kuhn Travel in 1982. The Company set up a Business Travel Service (BTA) and renovated the holiday camp at Prestatyn. The oldest of such agencies was Reiseburo Rominger in Stuttgart in 1842. • The Jeena Tours and Travels was established in 1920 with the privilege of being the first Indian - owned travel company. Thomas Cook and Sons and Cox & Kings and American Express came to India for inbound and outbound tour operation. 1.15 KEYWORD • CRS- Computer reservation systems, or central reservation systems, are computerized systems used to store and retrieve information and conduct transactions related to air travel, hotels, car rental, or other activities. • FAM (familiarization) tour – A free or reduced-rate trip offered to travel professionals to acquaint them with what a destination, attraction, or supplier has to offer. 33 CU IDOL SELF LEARNING MATERIAL (SLM)

• Group tour – A travel package for an assembly of travelers that has a common itinerary, travel date, and transportation. Group tours are usually prearranged, prepaid, and include transportation, lodging, dining, and attraction admissions. See also escorted group tour. • Group Travel – group travel refers to a category of travel with a group arranged by an outside company or organization or travel with a group of friends and family that you have organized yourself. Some groups are small, private and escorted, while others large. • Guided tour – A local sightseeing trip conducted by a guide. • GDS- A global distribution system is a computerized network system owned or operated by a company that enables transactions between travel industry service providers, mainly airlines, hotels, car rental companies, and travel agencies. 1.16 LEARNING ACTIVITY Learn about the effect of COVID 19 on Tourism industry and how it has affected Tour operators and Revenue of the Tourist spots ___________________________________________________________________________ ___________________________________________________________________________ 1.17 UNIT END QUESTIONS A. Descriptive Questions Short Questions 1. Define escorted Tour? 2. Explain What is Mass Tourism? 3. Describe briefly about incentive tour? 4. What do you Understand by familiarization tour? 5. What is a tour brochure? Long Questions 1. What is a package tour? Explain the various types of Tour packages? 34 CU IDOL SELF LEARNING MATERIAL (SLM)

2. Describe the evolution of travel agency and package tours. 3. What are the components of Tour Package? 4. Describe about the history of Thomas cook and travel company. 5. Explain Cox’s & Kings and its contribution to tourism industry. B. Multiple Choice Questions 1. CRS stands for a. Computer Reservation system b. Customer Reservation system c. Consumer Reservation system d. Computer Reservation software 2. Itinerary is also known as a. Tour plan b. Tour product c. Travel facilities d. Tour services 3. Who is known as the father of Travel Agency business? a. Cox and Kings b. Jeena & Co. c. Lee and Muirhead d. Thomas Cook 4. When a travel agency provides the service of a well-educated, trained tour manager during the course of travel, it is known as a. Escorted tour b. Hosted tour c. Inclusive tour d. Incentive tour 5. Motivational program provided for the employees of an organization is known as 35 a. Hosted tour CU IDOL SELF LEARNING MATERIAL (SLM)

b. Incentive tour c. Inclusive tour d. Escorted tour 6. A dictionary of package tour available for sale by travel agencies is a. Consolidated tour manual b. Tour voucher c. Tour brochure d. Tour package Answers 1-a 2-a 3-d 4-a 5-b 6-a 1.18 REFERENCES Text Books: • Holloway, J.C., The Business of Tourism, Prentice Hall, London. • Roday. S, Biwal. A & Joshi. V., Tourism Operations And Management • Oxford University Press, New Delhi. • Goeldner, R & Ritchie. B, Tourism, Principles, Practices And philosophies, John Wiley & Sons, London 36 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT - 2 SIGNIFICANCE OF TOUR PACKAGE Structure 2.0 Learning objectives 2.1 Introduction 2.2 Advantages and disadvantages of Tour package 2.3 Types of Tourist destinations 2.4 Tour package and Itinerary 2.5 Package Tours of Thomas cook 2.6 Summary 2.7 Keywords 2.8 Learning activity 2.9 Unit end Questions 2.10 References 2.0 LEARNING OBJECTIVES After studying this unit, the student will be able to • Analyze the importance of tour package. • Examine the significance of travel for economy. • describe the meaning of tour destinations. • List the types of destinations. • evaluate the significance in relation to tour destinations. 2.1 INTRODUCTION Recreational traveling is supposed to be a lot of fun, but this isn’t always the case, unless you are a travel addict, who will enjoy traveling even if you have to eat from a roadside stall or spend the night in a van. In case you are traveling with your spouse or family, you need a lot 37 CU IDOL SELF LEARNING MATERIAL (SLM)

of planning, money, a bit of luck, and a lot of things to fall in place in order to enjoy a thoroughly pleasant trip without any hiccups. Planning for a full-fledged trip, when you are looking to visit more than one place or destination can be quite difficult, especially when you don’t have a lot of traveling experience, or a friend or family member who has been to those places in the recent past to guide you. This is when getting in touch with a tourism company and choosing from one of their several tours or packages can be a good idea. When we think of tour package, we think mainly on three things namely attraction of the destination, accessibility to the destination and facilities/services available at the destination. However, the fact that tourists’ choice to spend their holidays away from home is likely to have a significant bearing on the level of satisfaction they drive from it. Thus, for the tourist, the holiday is more than simply the activities and services of the destination. In fact, it is the experience as a whole including attitudes and expectations, from the time of leaving point of origin to the time of return. The tourist’s visit involves a mix of various elements such as travel, accommodation, transportation, attraction, excursions, facilities and so forth. These components, if combined, are perceived by the tour operator as ‘Tour Package’. Practically, a tour package is a Total Tourism Product which is planned, organized, combined and sold as an ‘Inclusive Tour’ at a set price to tourists by tour operators. Although, the origin of the modern concept of tour package is quite difficult to trace, yet it would be pertinent to adduce that the creation of transportation facilities in various countries thousands of years ago but before the birth of Christ and the use of sea transport for travel by the British, Greece, Romans, Phoenicians and many more had a profound impact on the concept of a tour package. Further, the well-planned trips by Romans, Phoenicians, and Europeans for pilgrimage, adventure, pleasure, and navigation during different eras, must have been the motivational forces at the rear of the development of ‘Grand Tour Concept’. This concept paved the way for the development of tour package of the 19th, 20th and 21st centuries. The term package tour was in use as early as 1600s. The first inclusive travel was organized by Thomas Bennett in 1821. In 1850, he set up a business as a ‘Tour Operator’ and developed 38 CU IDOL SELF LEARNING MATERIAL (SLM)

first individual tourist itinerary and made other reservations such as rooms for accommodation. But the concept of tour package was used for the first time in its distinguished sense by Thomas Cook in 1855. Mr. Cook was a man of vision who put together all ingredients of a tour package and sold it as an ‘Inclusive Tour’ to the tourists. The inclusive tours inspired other travel/tourism entrepreneurs to organise and offer similar tours to other parts of tourist destinations. Mr. Cook also coined the concept of ‘Escorted Tour’ which is still in use. Thus, the evolution of the concept of ‘Tour Package’ is mainly accredited to Thomas Cook for his imagination, innovation, idea and care he took in planning, organizing and marketing his tours to minimize the problems. Conceptually, to analyse the concept of tour package systematically is complex one rather to understand. According to Betsy Fay (1990) “A tour package is a combination of travel elements prepared for an individual/or a group traveller by a tour operator”. It means a package tour takes into consideration the requirements of travellers. Holloway (1992) states that “A tour package is a total tourism product as it generally consists of transport from the generating area to the destination, accommodation at the destination and possibly some other recreational or business tourist services”. This definition helps to identify the components of total tourism product. Gregory (1985) points out that “a tour package is advertised journey including specific features, arranged and promoted with tour literature by a tour operator and paid for in full by the tourists before starting on the tour”. The American College Dictionary (1995) defines a tour package as “travel from place to place, a long journey including the visiting of a number of places in sequence”. The above definitions reveal how broad is the concept of tour package to be defined in order to embrace all forms of tour ingredients. Therefore, given these differing perspectives, it is rather impossible to have one definition of the tour package which can satisfy all positions in the travel industry. So, conceptually, an attempt has been made to define ‘Tour Package’ in a broader sense. 39 CU IDOL SELF LEARNING MATERIAL (SLM)

A tour package is a total tourism product planned and operated for either independent travellers or for groups to one destination or multi-destinations consisting of air travel and land arrangement segments for number of days as specified, with a set of features (intangible and tangible) and for a set price. 2.2 ADVANTAGES AND DISADVANTAGES OF PACKAGED TOURS From both a travel agent’s and a consumer’s perspective, package tours provide a number of advantages, which often outweigh the disadvantages. Advantages for the consumers • Cost saving and budgeting - the price of a trip when organized as a package is generally less as travel agencies bulk buy their package deals and therefore can sell the tours at a lower and more competitive rate. This is an instant cost saving benefit for the consumer, as the discount travel agencies receive is generally passed on to the consumer. Also, as the tour often includes all meals or trips for example, this reduces any uncertainty about the additional costs and allows the consumer to budget properly for costs associated with their travel. For example, if airport pick-ups or taxi transfers are pre-booked and paid for beforehand there is no potentially expensive surprise when travelling to the accommodation on arrival at the destination. • Responsibility is on the operator - the lack of responsibility on the traveler is an advantage. If something goes wrong, e.g., a flight is delayed, resulting in the traveler missing a connecting flight, it is not the traveler’s responsibility to arrange a new ticket. The responsibility lies with the airline or tour operator. In a certain respect, travelers can relax knowing if something goes wrong, someone else is there to solve the problem. • Convenience and time-saving - this is definitely the most convenient way to arranging a vacation or tour. The travel agency deals with all the arrangements relating to airlines, hotels, transfers directly through the tour provider. This saves the consumer the effort and the time of contacting each company/service individually. • Social - this is frequently a main reason why people may opt to travel on a package tour. The chances of social interaction are higher, allowing the fostering of short- or long-term friendships. People regularly choose a tour which ensures they are socializing with people of a similar age, for example, young people who like to party may opt for an 18- 40 CU IDOL SELF LEARNING MATERIAL (SLM)

30 party group tour, some adults may choose to stay in accommodation which caters to the needs of children and will opt for a family tour or some people may choose to go on adult only tours to avoid children completely! • Quality of service - tour operators (those who provide the travel agency with the tour package) spend a great deal of time assessing the airlines, hotels, sight-seeing operators etc, which they use to make up the tour package. By doing so they ensure a high standard of quality and the consumer can have peace of mind. Tour companies are eager to meet their own business needs and so they ensure that the most frequented areas of interest (cultural or geographical) are included in their tour, thus meeting the needs of the consumer. Advantages for the travel agent: • Agent commission - travel agents normally receive 10% commission on all tours they confirm. Clearly the financial incentive means travel agencies find it extremely advantageous to sell tour packages and not solely flights and/ or accommodation. • Savings in time and cost – in order for a travel agent to put together all the components of a package tour, this would take extensive communication with the different service providers, initially to check rates and availability and then to send through deposits and secure bookings. By using a tour provider, the travel agent only needs to make one call, send one email or use an online booking system once to confirm the tour package. Clearly this saves a great deal of time, freeing up the agent to work for other consumers, thus increasing sales and commission. • Wide variety of package tours available - this means the travel agent can always make suggestions on tours which match the needs of the consumer. The high number of very different packages available allows people with possibly lower budgets to still enjoy tours. Disadvantages for the consumer: • Inflexibility - when a traveler purchases a tour, they commit to follow the itinerary, flight schedule and accommodation arrangements. Generally, they are unable to change or reschedule their tour and whilst on the tour they cannot change their plans as they wish. For example, they must be at a point of pick-up at a certain time and if they are not there, they delay the rest of the tour (if they are booked onto a group tour that may create 41 CU IDOL SELF LEARNING MATERIAL (SLM)

problems and possibly complaints from other travelers). Also, if travelers have any special requirements, again for example, dietary requirements, but they are out camping in the bush overnight, the tour provider may not be able to meet their needs but substituting the food provided. It is the responsibility of the travel agent at the time of booking to ensure all possible issues are raised and the traveler’s needs are addressed due to the inflexible nature of a tour package Disadvantages for the travel agent: • Control - travel agents have little or no say over the tour operator’s choice of services, restaurants, accommodation or attractions included in a tour package. As a result, they must ensure they carefully choose the correct package which provides a high standard of quality, or is the most appropriate for the particular market. Also, the business of tour packages and the number of tour providers is vast. This makes is very difficult for all travel agents to become and remain knowledgeable of all the available tour ‘products and so extensive time must be spent researching choices and selecting the best one for the consumer. The saving in time and money a travel agent saves a consumer is invaluable. Contacts in the industry regarding reservations and availability then acquiring the best prices to suit an individual cannot be overlooked when considering travelling. Travel agencies receive 10% commission on most packaged tours; however, if the agency has a preferred product arrangement with a certain company this amount could be higher. As a commission is taken out before forwarding the final payment to the tour operator, the agency is able to receive the reward for its effort without delay. Tour operators and wholesalers often reserve the right to alter their itineraries for various reasons such as weather, strikes or the outbreak of fighting in a particular area. Any price changes that might occur prior to departure are likely to be passed on the client. 2.3 TYPES OF TOURIST DESTINATIONS There are various types of destinations as given below: Centred Destination It is the most common type of tourist destination, where tourists spend most of their time on occasional excursions to nearby places of attraction. For example, Andaman Island is an entered destination. 42 CU IDOL SELF LEARNING MATERIAL (SLM)

Base Destination It refers to that type of destination where tourists need to travel and explore surrounding region. For example, Sossusvlei Desert Camp of Sesriem is a base destination from where tourists can explore the nearby desert mountain dunes and Sesriem river canyon. Multi-Centre Destination Here the destination comprises two or more destinations of equal importance. For example, India is a multi-centre destination where each Indian state or region offers different culture, nature, and culinary experience. Touring Destination, A touring destination refers to a place to visit as part of linear itinerary. Transit Destination It is a place of a brief halt en-route while the tourists are heading towards the final destination. For example, Abu Dhabi is a transit destination where tourists take a short break for going to Cape Town, South Africa Building Online Destination Awareness Exploiting the widespread reachability of the internet, the tourism businesses need to build their online presence not only for offering various tours but for creating destination awareness as well. Destination websites act as the gateway for tourism information. They can also provide a number of services such as promoting local attractions, culture, and activities, list of the local ancillary tourism services, and provide regional historical and geographical information about the destinations. This helps to shape the curiosity of the prospective tourists and can bring momentum in tourism. 2.4 TOUR PACKAGE AND ITINERARY Itinerary is a systematic method of arranging places of interest. It enhances value and appeal of package tour and provides maximum satisfaction to customers. The scalability and marketability of any package tour is determined by tour itinerary. Customers always check nature and type of tour itinerary that provides ample information about the operation of tour. Places of tourist importance are logically arranged while taking the interest, convenience, cost, availability of services, climate, terrain, sunrise, etc into considerations. Tour operator has the sole responsibility of designing tour itinerary and it involves several stages of finalizing itinerary. It requires several rounds of survey of tourist destinations, priority of visits and connectivity. This lesson will present the meaning, types, nature and importance of tour itinerary. Meaning of Itinerary 43 CU IDOL SELF LEARNING MATERIAL (SLM)

An itinerary is a schedule or an arrangement of programmes or events. It is prepared for designing package tour. The origin, destination and en-route halting points and duration of halts along with elements of services like hotel rooms, transports, activities and miscellaneous services are clearly described in tour itinerary. An itinerary gives detailed information about nature, type, length and quality of package tour. Importantly, it determines sales of package tour and it is aptly a selling point for alluring customers to buy package tour. Importance of Itinerary Itineraries are also prepared for customers for air travel. The nature of air travel or train travel or road travel does not include other essential components of package tour. The air or rail itinerary highlights on departure and arrival time of flight or trains, terminal or station details, number of flight and trains, baggage limits, transits, seat allocation and minimum check-in time in case of flight and suggested arrival time at station. However, it is an itinerary designed for FIT and they themselves arrange other component of services. However, it doesn’t explain the type of marketing plan and strategy for positioning or branding package tour in market. An itinerary includes all kinds of requirement of package tour and it is basically regarded as complete itinerary to satisfy travel, stay and activities. It is essentially important to ensure quality of package tour. The quality can be measured from the suitability, nature and comprehensiveness of a tour itinerary as it is described in tour brochures. It gives much confidence and interest to undertake journey to places of interest. Or else, it gives so much uncertainty and other problems in the tour. Thus, tour itinerary is printed in brochures with elaborate description of places of interest and kinds of services. Tour brochures are printed after expert team visits the places of interest, properties and other on-site activities. Accordingly, it includes logical inclusion and exclusion of services and sequential arrangement of a variety of features considering the needs and pleasure of customers. The core business of tour wholesalers or tour operators is package tour. A planned itinerary eliminates much of the tension and problems at the time of operation of tour. For example, when a particular tablet or injection is prescribed to heal the diseases without experimentation or test, it may have serious negative impacts and there may be many side effects. The same example may be applicable to use itinerary without having proper test. Itinerary gives a frame through which package tour is conducted and other features are also incorporated to enhance value of package. Thus, logical planning along with familiarization trip is generally done to 44 CU IDOL SELF LEARNING MATERIAL (SLM)

ensure precision in the operation of tour. There can be additions or deletions as the process continues to produce an appealing itinerary. Before the finalization of tour itinerary along with the route, one or two FIT or small group tours are conducted to analyse the feedback of customers. One tour operator can design package tour on the basis of itinerary as it is a final product for sale. Tour operator provides seamless itinerary, and it can be tailor-made or customized or specialized. Thus, it is important to study the meaning and importance of itinerary planning and tour packaging. Types of Itinerary A tour itinerary is usually divided into five different types taking the duties and responsibilities of tour managers, vendors, coach drivers and escorts, interpreters and guides into considerations. So that, there are itinerary for tourist, tour manager, escort or guide, vendor and coach driver. Itinerary may also be classified as GIT, FIT, tailor-made and special interest itinerary as per the convenience of tourists and tour operators. Itinerary for Tourists Itinerary is designed to give elaborate descriptions to help customers or members of GIT select package tour. It is used as the reference for conducting package tour. A tourist itinerary is basically a reference for tourists to follow during journey comprising place of transit, sojourn, arrival and departure time, meal plans, check-in check-out time, mode of transport, activities etc. The unique feature of any itinerary is to meet the personal requirements of a tourist that he expects from tour operators to include as per the itinerary. Tourist itinerary is more useful for tour planners to check its feasibility of operations. Destination survey through ground operators is done to gather information. While designing tourist’s itinerary, the following aspects must be given due importance to make more precisions in operation of tour, Purpose of tour 45 • Budget • Accommodation • Transportation • Choice of destinations • Attractions • Activities at destinations CU IDOL SELF LEARNING MATERIAL (SLM)

• Legal issues • Behavior of local community members Itinerary for Tour Manager The role of tour manager is crucial to any package tour as he has to perform different duties from planning to actual operation of the tour. Professional expertise, knowledge of different travel issues, crisis management and personal experiences helps in organizing a tour. Tour manager’s itinerary includes the complete details of tour from first day to last day. Apart from the general details as listed in a tourist’s itinerary, a tour managers’ itinerary also carries information about alternative arrangements, contact details, quick references, differential rates and tariff details, details of coach drivers and escorts and guides. This helps the tour manager manage the smooth conduct of the tour as well as execute contingency plans if required at times. Itinerary for Tourist Guide Itinerary is designed for escort or interpreter or guide and it provides common information along with specific information to them. A ground operator or handling agency prepares itinerary containing the information about the name and nationality of guests, mode of arrivals, name of hotel, programmes, activities, time management etc. Other instructional details include voucher to be countersigned from guests, arrangement of loading and unloading of baggage and valuable belongings, photography, helping physically challenged guests and women. A guide or escort should essentially have experience of handling FIT and GIT tour, managerial abilities to handle ground difficulties, crisis management, presence of mind, etc. For example, a guide can make the tour interesting or boring and it all depends on the ability of showing places of interest within the specified time. This type of itinerary contains summary of tours. Itinerary for Accommodation and Transport Operator Itinerary is prepared for hotels, transporters and other vendors for smooth conduct of tours. Hotels or transporters shall have to provide services as per guest’s itinerary. Hotel or transport is a vendor that works for tour operators. This is also called as vendor’s itinerary. There must not be any deviations from tour voucher. However, tour operator sends short instructional itinerary or programme to hotels and transporting agencies to be ready before the commencement of tours. 46 CU IDOL SELF LEARNING MATERIAL (SLM)

Vendors play a major role for the success of tour at a particular destination. The specific parts of tour itinerary instructs for making necessary arrangements in advance. For example, welcome drinks and traditional reception upon arrival in hotel is arranged as per vendor’s itinerary. Itinerary for Drivers Itinerary is prepared for cab or coach driver to make proper coordination with guides, hotels and guests. Information for a typical driver’s itinerary includes place and time of arrivals, parking areas, name of hotel, route to hotel and other sightseeing places, cleanliness of vehicle, checking air condition, break, public address system, etc. The summary of guests’ itinerary is generally handed over to drivers to follow in tour. Driver’s itinerary contains certain instructional information like attending duty with uniform, starting air condition 15 minutes before the guests boarding coach, greetings guests, etc. For example, drivers are instructed to reduce the speed inside the city and other important monuments, buildings and market areas for viewing and photography. These are the following steps for planning tour itinerary. Reviewing and Analysing Competitor’s Tour Systematic planning is required for developing an itinerary for package tour. A comprehensive analysis of tour itinerary of other tour operators is done to find the strength and weakness of tour programmes. It is always better to have a unique programme that must be elaborate, value for money and satisfying. This review and analysis of competitor’s itinerary is collected from printed brochure. It gives much idea about tour itinerary and other special features. Working Out Duration, Frequency and Departure Point Each tour itinerary is worked out with much emphasis on duration and frequency of tour along with stopover points. The following format is generally used to arrange length of stay, frequency of visit and departure of place. What is the time of departure? __________ am/pm What is the time of arrivals? __________ am/pm What is the frequency of operating tour? __________ per/ wk. Where is the last departure point? __________ Domestic/International Airport Whether the pickup or drop prevision is included.  Yes  No Destinations and their Significance 47 CU IDOL SELF LEARNING MATERIAL (SLM)

Itinerary must include key locations/cities/transit points. It must give a brief description about the historical/cultural/natural significance of places of importance. It is the work of tour operator to keep the places of interest in logical order while taking connectivity, geographical disadvantage, priority, mandatory stopover point, time, comfort, etc into considerations. Places of interest are listed out in case of FIT and GIT and these places are arranged as per the convenient route map. This step reduces the cost of designing package tour and provides ample time to guests to enjoy the places of interest. Highlights of places of importance must be given in tour brochure or pamphlets. Itinerary for Group Inclusive Tour (GIT) A Group Inclusive Tour (GIT) itinerary follows the fixed itinerary and schedule. In a typical GIT package tour, options are limited to clients or gusts or group members and follow it as per tour itinerary. The primary reason is that it is a ready-made package and common activities are encouraged rather than individual interests. There is no scope for alterations as many things are pre-arrangement. Cancellation of rooms in case of group bookings is not allowed at the eleventh hour. Any change in itinerary may create crises situations and disturbance and disturb distribution channel. Services of a package tour along the itinerary like hotel rooms, cars, guides, flights, events, entry fees, toll taxes, etc are fixed and they are confirmed much in advance. Any modification results in loss and reduction of profit amount. The entire schedule is spoiled. It practically becomes very difficult for operator and supplier to rectify or rearrange schedule. Immediate alternative changes may not be possible, and it incurs loss for all operators in the process. Groups with specific travel limits or individuals with the intention of moving with pre-arranged services may certainly prefer GIT itinerary as it has the following merits. • Enjoying the companion of like-minded people • Reduction of package price • Confirmed pre-arranged services • Accompanying group leader or tour manager • Ensuring the arrangement of overnight halt at safe places • Minimum cost for conducting several activities • Economic of scale for tour operators 48 CU IDOL SELF LEARNING MATERIAL (SLM)

Free Independent Tour (FIT) Free Independent Tour (FIT) itinerary is, on the contrary, preferred for its freedom to select hotels, places, transport, guide and other services. Modifications may be possible at the last hour due to change in programme or any untoward incidences. There are flexible options and clients may meet personal requirements at their disposal. Clients may ask the operator to make certain changes as per interest and preferred activities. Operators can do the needful against the availability of flights, trains, vacant rooms and other services. Such an itinerary lends good space for tourists to do activities of personal choice and interest. An immediate change in the schedule and alternate arrangement is possible unlike GIT. Thus, independent travellers prefer FIT tours as there are possibilities of additions and deletions to the itinerary. However, FIT clients are relatively affluent and do as they wish. These are the following merits of FIT itinerary. • Enough scope to satisfy personal interests • Select the preferred rooms and transports • Possibility of minimizing the price of package tour • Arrangement of small elements of services Tailor-Made Itinerary An itinerary is customized in such a manner that most of the specific travel needs are tailored taking the affordability of customers and capability of tour operator organize such tours. This type of itinerary is mostly designed for FIT than GIT package tour. The itinerary satisfies convenience and interests of tourists. Tour operators adopt the changes as per the preference and affordability of customers. Designing tailor-made itinerary needs the involvement of highly experienced executives to ensure value for money for customers in tour programmes and help earn profits. Tour operators furnish information as soon as they receive queries of package tours. For example, tailor-made itinerary is prepared for single women travellers, small group, backpackers and business executives. Special-Interest Itinerary It is a type of tour itinerary that takes care of special interest or motivations of customers by incorporating special events or attractions in tour programmes. Given the increasing demand for visiting special tourism destinations followed by the creation of tourism product 49 CU IDOL SELF LEARNING MATERIAL (SLM)

portfolios, tour operators have made intensive market survey and familiarization trips to those special interest destinations to ensure customer satisfactions. Both group and independent travellers wish to visit special places of tourism importance. It is however important for tour operators to strengthen resources and supply chain for smooth operation of tours. For example, MICE operators and adventure tour operators promote special interest tour packages. Itinerary is a methodical way of arranging the organized package tours. There are advantages of conducting tour with help of tour itinerary. It adds value and appeal of package and gives much scope for meeting the group as well as individual needs. Tour itinerary increases the scope of sale of package tour. A typical itinerary includes places of tourist importance are logically arranged while taking the interest, convenience, cost, availability of services, climate, terrain, sunrise, etc into considerations. Tour operator designs itinerary after several rounds of test for finalizing itinerary. Steps involved in developing your package tour • Identify the experiences and features of target market desires by undertaking marker research. • Set clear sales and customer expectation objectives for package tour • Evaluation of area attractions and traveler services. • An appealing list of experiences. • Attractions and support services to sell package necessarily. • Developing a package concept by including setting a theme and a market position (economy, deluxe or other), and the specific products to be offered chosen on the basis of the best fit with the target market • Pricing the package on a per-customer basis. • Establish management and quality control systems to coordinate your plans with package partners, • Establish credit policies, contingency arrangements, customer communications and tracking of results Packaging: A Tool for Tourism Product Marketing Time is a most valuable thing for the travellers in the recent times. Families with double income find it almost difficult to make schedule of their vacation time and family members are also busy in their jobs or activities that also stand as a barrier to their vacation. It is also 50 CU IDOL SELF LEARNING MATERIAL (SLM)