Fig 6.1 Determine how long your trip should last 2. Determine a budget Make a practical budget for yourself early on. This will affect your choice of destination, flights and hotels, and the number of places you can visit. You don’t want to book a fantastic trip just to find out you can’t afford it. Consider how much you can afford to spend on this outing. How much cash do you have now and how much will you save before booking your flights and hotel? Instead of giving you a gift for your birthday or Christmas, ask your friends and family to contribute to your travel budget. Unfortunately, some activities (such as skydiving in New Zealand or scuba diving in Iceland) can cost more than you have in your wallet. When you are switching back and forth, remember to ask yourself if there’s something you would regret not doing if you had the opportunity. If not returning to your grandfather’s hometown to save money keeps you up at night, it could be worth pinching pennies elsewhere. Of course, there are many ways to get more bang for your buck. You could fly during the shoulder or off-season, scour the market for cheap flights and hotels, and cut your trip time in half. 101 CU IDOL SELF LEARNING MATERIAL (SLM)
3. Choose a destination You can choose a destination now that you've developed a budget and a timeline. If you're anything like me, you have a long list of things you want to do. Is there a specific site or activity that you think should be included on this list of must-see travel destinations? You could make a whole trip out of it. Gary and I went to Iceland last year with the aim of seeing the Northern Lights. If this is your first trip and you don't yet have a bucket list, start by reading a few blogs, scrolling through Instagram, and purchasing some travel magazines for ideas. What piques your interest? Is there something in particular that screams at you? Certain destinations are better suited to a particular season, such as Christmas in New York, New Years in Sydney, or seeing the cherry blossoms in Japan in the spring. If you have a specific country or city in mind, it's worth checking to see if there's something exciting going on at that time of year that could enhance your journey. Do you have any festivals in mind that you'd like to attend or participate in? However, keep in mind if a country is especially crowded at that time. During peak season, hotel and flight prices rise. Last but not least, keep an eye on the weather forecast. You don't want to spend your whole vacation in the mud. 4. Think of any documentation and vaccinations you might need. You are not just putting yourself in danger if you do not have the required paperwork and vaccinations for your chosen destination; you might not even be able to enter the country at all. So, before you start planning your trip, and definitely before you book something, find out what documents and vaccines you'll need, how much ahead of time you'll need to start the process, and how much it'll cost. You can discover that their price is out of your reach or that you have waited too long. Most people have a passport, but if you don't, keep in mind that getting one will take anywhere from four to six weeks from the time you apply. Of course, you can pay more to 102 CU IDOL SELF LEARNING MATERIAL (SLM)
speed up the process, but that money will be better spent on the trip itself. If you do have a passport, make sure you know when it expires. You don't want to be caught off guard at the airport when your passport expires. Other general requirements include a passport in good condition, a passport valid for a specific period after your stay, and sufficient free pages in your passport. Find out whether you'll need a tourist visa by doing some testing. If you're planning a longer trip (perhaps a round-the-world trip), you might want to apply for a working visa. These are very adaptable and typically only last a year or two. If you intend to rent a car, keep in mind that you will need a valid driver's licence from your home country. But double-check your driver's license's expiration date. It's worth noting that certain countries need a foreign driver's licence, and that you may be too young to rent a car in others. The foreign office website is also the best place to find out about general safety in the country you intend to visit, as well as any tourism-related issues to be aware of, such as any \"no-go\" areas. It's important to be aware of these because many travel insurance plans are voided if accidents occur in places where you've been told not to go. Certain destinations can necessitate a large number of vaccines and medications (Africa is just one example). Furthermore, certain countries want evidence that you have obtained these vaccines. The website NHS Fit to Travel will assist you in determining which vaccinations you need. If you're visiting a destination where vaccinations are needed, or just for your own peace of mind, it's also a good idea to schedule an appointment with a travel clinic before your journey. 5. Search for cheap flights Since flights to and from a destination are often the most expensive part of a trip, the first thing I look at is if the costs of getting there are reasonable. Flights can be extremely costly in one place and extremely inexpensive in another. So, before you make up your mind on where you want to go, see what flights are available and how much they'll cost you. This is something we like to do with Kayak Explore or Skyscanner Anywhere (just type \"everywhere\" into the destination field). 103 CU IDOL SELF LEARNING MATERIAL (SLM)
Is it possible to get a cheap flight from your local airport? Is it necessary for you to first move to a larger city? Is there going to be a layover? And where does the plane touch down? This research will not only decide your departure point, but also your destination's arrival point and, as a result, the start of your itinerary. You may also be able to save money by flying to one airport rather than another. 6. Make a structural outline of your trip. Now is not the time to book your flights. And if a tempting promotional deal tempts you. Even if the deal is limited in time. Next, make a rough outline of your travel plans. The next step is to plan your path through the country once you know where you're going, when you're going, and how much it'll cost. Will you be staying in the same place for the duration of your journey, or will you be visiting several cities, areas, or countries? Gary and I still try to get a clear overview of the country and its different regions when we schedule a two-week tour. We seldom remain in one location for more than three days. But that's just our way of travelling. Which one is it for you? Do you suffer from FOMO in the same way as we do? You may want to visit the following three websites to help you build a rough itinerary for your trip: Simply search for the country you want to visit on Pinterest. Typically, a slew of pins pointing to suggested itineraries and destinations will appear. Make a Pinterest board and pin the places that appeal to you the most. It's pointless to reinvent the wheel. Type of country into the search bar on Instagram to find a plethora of inspirational photos and places you'll want to visit. Trip Advisor: For almost every destination, this website has compiled a list of the Top Things to Do. Although these are mostly based on common opinion and do not always correspond to our own travel style, it is still worth checking out these guides to ensure you haven't missed anything. Make a list of towns, states, and countries that you absolutely must visit. Determine the ones you have the time and resources to complete. Decide how much time you'll spend in each location now. 104 CU IDOL SELF LEARNING MATERIAL (SLM)
4. Find hotels for each city or area you want to visit The next step is to find a hotel that suits your budget in each city, region, or country you want to visit. You don't want to plan a comprehensive itinerary unless you're sure you'll be able to afford to stay in each place. Of course, you might just book a room at the nearby Hilton and call it a day. You never know when you could come across some truly unique lodgings that are almost as thrilling as the attractions you want to visit. Historic castles, tiny bed and breakfasts, houseboats, eco- friendly hotels, and organic farms should all be on your radar. Take note, budget travellers: Vacation rentals, homestays, farm stays, and house-swapping are all affordable... or even free – accommodation options. Booking.com is my preferred search engine for finding a place to stay because it includes brand hotels, small hotels, guesthouses, and B&Bs. TripAdvisor is my go-to resource for this. Take a look at the average number of reviews per group. It's a positive sign if the bulk of the reviews are outstanding or good. Then look at the bad and mediocre reviews. You may skip the majority of these, but there may be a recurring pattern. Finally, take a look at some of the positive and negative feedback. These are usually the most truthful. The best “unaltered” photos are typically used in blog reviews. 8. Work out how you're going to get from one place to the next and how long it'll take. After you've mapped out a rough itinerary and confirmed that you can afford to stay in each location, you'll need to figure out how to get from one place to another. Put all of your chosen destinations on Google Maps to see how close they are to one another. This will also allow you to make any necessary changes to your itinerary's chronology. The size and proximity of each location should also aid you in deciding where to base yourself and which destinations you can visit in a single day. When Gary and I visited Hakone and Kamakura, for example, we were based in Tokyo. When we went to Nara, we were staying in Kyoto. You'll have to figure out how long it'll take you to get from one place to another and what the best mode of transportation is. This will have an impact on your budget (you may need to prioritise one location over another), as well as how much time you should spend in each location. In my experience, places on the map can appear to be close to one another but, upon closer inspection, take many hours to travel between. Rome2Rio is my go-to resource for this sort of study. Simply enter both addresses, and the website will display various options (along with associated costs) for getting from one location to the other by public transportation or car. You may also seek advice from other travellers by visiting travel forums. Just keep in mind that travel advice from 2009 might be a little out of date! 105 CU IDOL SELF LEARNING MATERIAL (SLM)
Your mode of transportation can differ from one country to the next. The bullet train was the fastest and most cost-effective way to fly between cities in Japan. And we were in luck because Japan offers unique tourist Rail passes that make train travel relatively inexpensive. In Thailand, on the other hand, the fastest way to get from one city to the next was to take an internal flight. In some countries, renting a car is the best option, particularly if you want to visit places that aren't easily accessible by train or plane (such as the Irish countryside). Prepare yourself mentally for driving in a foreign country, which can be a terrifying experience when faced with unfamiliar traffic signs, narrow streets, or sheep roadblocks. Another fascinating choice for going from one location to another is to combine walking tours, cycle tours, camping, and adventure tours. If you need to change modes of transportation several times to get from one location to another, make sure you have those schedules planned out with military precision. If you're flying, taking the train, or driving, always allow plenty of time to get where you need to go and save all of your arrival and departure times in several, conveniently accessible places. Also, don't forget to download the applications for the local public transit systems; they'll make your journey a lot easier. 9. Search for sites and activities, organize them by region, and begin completing your travel itinerary. Your itinerary is beginning to take shape, but it's time to flesh it out a little more. You can fill the rest of your itinerary with fun events and locations to visit once you know where you'll be going and how long it'll take to get from one location to another. Repeat the previous steps. To make a list of all the main attractions you want to visit, go to Pinterest, Instagram, TripAdvisor, and Like A Local. Prioritize these depending on your schedule, budget, and available time Testing different sources is still a good idea. Cooking lessons in your neighbourhood can also be enjoyable. Get your guide is an excellent resource in this regard. This is an excellent way to determine whether a location is really worth exploring or merely a tourist trap. Don't forget to inquire of friends who have visited the same country. They have a good idea of what you would like the most. Then, for each day of the itinerary, start filling in the morning, afternoon, and evening activities. 10. Schedule your flights 106 CU IDOL SELF LEARNING MATERIAL (SLM)
Since airfare is usually the costliest and time-sensitive component of your travel, you should book your flights first. Book your flights first, then your accommodations. You must be flexible with your dates. There could be a special deal that is too tempting to pass up. Do not book your flight with the airline directly. Take a look around. There are several websites that sell low-cost flights 12. Book your hotel(s) The next step is to make a hotel reservation (s). The sooner you make plans for your travel, as with almost anything else, the better — particularly during peak season. Return to the list of hotels you created earlier for each destination on your itinerary. However, before booking anything, make sure to check if there are any special deals for that day. These specials shift regularly, and sometimes even daily. Take a look around. Do not book your hotel room via the hotel's contact form. There are several websites that have much better bargains. 13. Think about reserving local transport and activities. You should also think about booking local transportation ahead of time. Especially if you want to fly inside the country or need a rail pass. Whether or not you book tours and tickets to such attractions ahead of time is purely a matter of common sense. Are you planning to visit the attractions during peak season, or do you think the tour will be sold out by the time you arrive? 14. Think about buying travel insurance Travel insurance is always a good idea, particularly if you're going somewhere far away. You should think of trip cancellation insurance, flight cancellation insurance, medical insurance, and other types of travel insurance. The best time to buy travel insurance is right after you've booked your flights and made your hotel reservations. You now know how much you've invested and how much you'll need to insure if you decide to do so.Insurance is available as an add-on for several airlines. However, before you buy, make sure to read the fine print of the airline's plans and compare them to other travel insurance policies. The functions of the travel agency are: travel agencies provide travel-related information travel agency organize travel plan travel agency act as a link with travel suppliers 107 CU IDOL SELF LEARNING MATERIAL (SLM)
a. tour costing b. ticketing c. settlement of accounts d. travel agency organized business tour e. travel agency handles reservation 6.5 STEPS IN DEVELOPING/PLANNING A TOUR ITINERARY Step 1: Look at other tours on the market. When creating an itinerary for your tour, meticulous planning is needed. Taking a tour that is close to the tour you want to create and obtaining copies of other tour brochures for comparison is a useful exercise. This will assist you in developing tour plans, giving you an idea of what is currently available on the market, providing comprehensive details on terms and conditions, and providing future brochure design and content ideas. Step 2: Give your tour a name: ........................................................................ Step 3: Plan out your tour's length, pace, and departure location. What time will your tour start? ................................ am/pm When will you be resuming your tour? ................................ am/pm What is the frequency of your tour? ........................ per week What will be the key point of departure? ................................ Will you be able to pick me up from my hotel? Yes, but Step 4: Make a list of your tour's main sights and highlights. What cities will you visit on your tour? What are the main attractions that tourists can expect to see? ...................................................................................................................................................... .................................. Step 5: Research the material and commentary for your tour. List the key subjects you want to cover in your commentary, such as flora and fauna, history, and culture, as well as the main things to think about for each of these topics and the tools you'll use to research them. Theme Find the following main points: a useful resource Step 6 Include any third-party events, attractions, entry fees, or inclusions in your itinerary. Make a list of any events or entry fees provided by other companies and decide if they will be included in your tour price or included as extras. For e.g., cruises, bike rides, national park visits, cave visits, and so on... a brief description Information on the Provider Cost per person is included in the price of the operation. person YES OR NO 108 CU IDOL SELF LEARNING MATERIAL (SLM)
Step 7 – Obtain access to both private and public properties. If you're driving by, stopping for a meal, or visiting a tourist attraction, you must obtain written permission from the property owner before entering any private property. You may need to apply for a Commercial Operator's License if you are travelling via land owned by the Department of Environment and Conservation. If your travel plans include visiting Aboriginal Land or a restricted area, you may need to apply for Entry Permits to obtain access permission. Step 8: Fine-tuning your tour schedule It's important to plan out your tour itinerary carefully to ensure that you arrive on time for activity and meal breaks, and that you return to your starting point on time. Stops the passage of time Stop type: scenery, meal, or activity Start Stop Number One Stop Number Two Stop Number Three Stop Number Four Stop Number Five Stop Number Six Stop Number Seven Stop Step 9: Put your tour itinerary to the test. It is important to perform many \"try runs\" of your tour itinerary to ensure that the timing is right. It's also a good idea to invite people who are familiar with the industry and are willing to assist you with design. The following points can be used to build an itinerary. • Single or multiple destinations: A single destination or multiple destinations may be included in a single itinerary. • A special interest kit, such as an adventure package, a cultural package, a vacation package, and so on. • Tour package: An itinerary designed for fun and relaxation. • A travel kit is a pre-planned itinerary for a trip. • An outbound package is an itinerary designed for domestic visitors who want to travel to other countries. • Domestic tours: An itinerary prepared for locals to visit their own country • Inbound package: An itinerary prepared for foreigners to visit our country. 6.6 SUMMARY • We have familiarized you with certain details regarding the Itinerary and Travel Plan: definition, differentiation, scope and Significance • Management and day-to-day functions in a tour operator company. 109 CU IDOL SELF LEARNING MATERIAL (SLM)
• It is essential for a tour operator to first gain knowledge about the market conditions and then acquires product knowledge. • Certain aspects like defining itinerary, types of itineraries scope and briefings, etc. which at the surface may appear to you as something trivial but you must remember that these are all vital issues as far, as customer satisfaction is concerned and cannot be taken lightly in a tour operation industry. These are equally important for managers, supervisory staff as well as employees. • This is basic unit and in subsequent units you should again more knowledge related with tour package, different types of package related- special interest tour packages and so forth. 6.7 KEYWORDS • DMO – Destination Marketing Organization • Itinerary- the route of a journey or tour or the proposed outline of one. • Trip advisor- A guide map • Vacation package- Flights, restaurants 6.8 LEARNING ACTIVITY 1. A sightseeing program conducted by a guide such as city tour. ___________________________________________________________________________ ____________________________________________________________________ 6.9 UNIT END QUESTIONS A Descriptive question 110 Short Questions 1. What are the steps involved in planning a Tour Itinerary? 2. Define tour Itinerary? 3. What is meant by itinerary? 4. What are the types of itinerary? 5. What is the role of trip advisor? Long Questions 1. Planning and preparing of tour Itinerary-explain CU IDOL SELF LEARNING MATERIAL (SLM)
2. Mention the types of Itinerary? Explain in detail 3. Give details of preparation of tour package? 4. What are the questions that answer by the travel agent before arranging a tour for customer? 5. How will you determine a budget while traveling for a tour? B. Multiple choice questions 1. Itinerary is a plan of journey showing the route ------- in a packaged tour. . a. Planning b. schedule c. option d. types 2. Planning of tour Itinerary is ---- mandatory function of travel agencies. a. Fourth b. Third c. Second d. First 3. Travel agency has to plan the itinerary to suite the ------- need. 111 a. Public b. individual c. Group d. Clients. 4. ------- mode itineraries are made on request to suite the individuals a. Taylor b. k.p.chen c. Kotler d. Mike CU IDOL SELF LEARNING MATERIAL (SLM)
5. Which of the following people is most likely to use a travel agent to help them plan their vacation? a. Sandy is going to visit her mom in a different state b. Cole is planning a family vacation to a destination that he is very familiar with c. Becky wants to visit a country she's never been to before d. David wants to visit this small town in the country where he grew up 6. What does a vacation package from a travel agent typically include? 112 a. Flight, hotels, and tours b. Just the flight c. Just the tour d. Hotels and car rentals 3. A wholesaler who sells package tour is called a. Travel operator b. Travel Agent c. Travel Agency d. None of these 4. Itinerary is also known as a. Tour plan b. Travel facilities c. Tour product d. Tour services 5. The main purpose of travel and tourism can be a. Business b. Pleasure CU IDOL SELF LEARNING MATERIAL (SLM)
c. Pilgrimage d. All of these 6. The linkages in hotel industry are a. Transportation b. Accommodation c. None of these d. Both (a) & (b) 7. Food & Beverages services in a hotel provide a. Restaurant b. House keeping c. Coffee shop d. Both (a) & (b) Answer 1- b, 2-c, 3- d, 4- a,5-c,6-a,7-c,8-d, 10-d,11-d. 6.10 REFERENCES Reference Books • Travel Agency and Tour Operation, Concepts and Principles – J.M.S. Negi. • Travel Agency Management - Mohinder Chand. • Professional Travel Agency Management – Chunk, James, Dexter &Boberg • The Business of Travel Agency Operations and Management– D.L. Foster . 113 CU IDOL SELF LEARNING MATERIAL (SLM)
UNIT 7: INCOME OF TRAVEL AGENT Structure 7.0 Learning Objectives 7.1 Introduction 7.2 Sources of income 7.3 Tour operator sources of revenue 7.4 On-line Agency 7.5 Summary 7.6 Keywords 7.7 Learning activity 7.8 Unit End Questions 7.9 References 7.0 LEARNING OBJECTIVES After studying this unit, students will be able to • Identify how the travel agents generate income. • Explain the various sources of Income • Describes the sources of income like commission etc • Clarifies how they charge service charges • Apply the concept in his further studies 7.1 INTRODUCTION The clients they represent and the travel vendors they promote are how travel agencies make money. The proportions are determined by a variety of factors, including the types of travel they manage, the types of clients they represent, and their level of expertise. The advent of online booking platforms, which have rendered the need for the average person to pick up the phone to book a simple flight, for example, has drastically altered the position of many agents and, as a result, their revenue streams. Profit from a business investment is typically expected after the sale of products or the delivery of services. Each travel agency firm's ultimate goal is to make a profit while 114 CU IDOL SELF LEARNING MATERIAL (SLM)
focusing on customer satisfaction. Whether it's a small or large investment, the goal is to get the most out of it. Each company tries to maximize profit from a small initial investment in a short period of time. A travel agency or tour operation company is a form of business that provides services to people with a high income. This industry is not without risk and uncertainty, such as market fluctuations caused by a variety of uncontrollable factors. Once upon a time, a travel agency was a family company run by the women of the household. It has now become a very profitable industry, with global corporations investing in the acquisition of travel agencies. As a result, each travel company works hard to develop a long-term business model that generates revenue while posing the fewest risks possible. It does not occur in all situations, as the amount of revenue that a travel agency will receive annually is determined by the level of service and goodwill. It is primarily a seasonal company, and the sales flow is disrupted during the off season. As a result, travel agencies focus less on core business such as ticketing and car rental for local clients and customers. Travel agents and tour operators, on the other hand, have been observed to try to specialize in one or two areas of operation. Some travel agents sell cruise packages, while others sell pilgrimage packages. It is preferable to see a revenue 88 model from a long-term enterprise. You can find examples of travel agents' and tour operators’ revenue sources in this lesson. 7.2 SOURCES OF INCOME For travel agencies, group travel can be a major source of revenue. However, according to a survey conducted by Travel Weekly and Travel Age West in June 2012, several agencies have not completely accepted this potential revenue stream. According to the survey results, group bookings continue to be a significant source of revenue for many travel companies, with more than a third of respondents reporting that group bookings accounted for more than one-third of their revenues. Individuals with common interests, friends, or businesses interested in sending a top-producing corporate team on an unforgettable getaway should be targeted by travel agencies interested in pursuing this revenue stream. Travel Insurance Many travellers are willing to pay a premium for peace of mind while planning a journey. As a result, many travel companies provide insurance to their customers that covers them in the event of a trip cancellation, trip disruption, flight cancellation, luggage loss, injuries, or accidental illness. Since many travellers do not take the time to research the fine print on insurance plans on their own, experienced travel agents would be well-versed in reminding travellers of the pitfalls that could invalidate a travel insurance policy, such as excessive alcoholic use or failing to report a pre-existing medical condition. 115 CU IDOL SELF LEARNING MATERIAL (SLM)
Cruises Another important source of revenue for travel agencies is cruise vacations. The number of travel agencies charging cruise booking fees has increased since 2007, according to Melissa Teates, ASTA's director of research, because cruise rates have decreased over time. Christine Duffy, president and chief executive officer of the Cruise Lines International Association, stated that cruise ship incidents have not resulted in a major drop in activity for travel agents. Foreign Independent Travelers FIT stands for international independent travellers, also known as free independent travellers. Although the term is defined differently by different travel agencies, the general consensus among them is that FIT travellers resist conventional vacation packages in favour of a more personalised vacation experience. Since more effort is usually involved in arranging these types of journeys, travel agencies can charge higher consulting and service rates for these types of travellers. Commissions Travel agents also receive commissions from suppliers they book for their clients, though this accounts for a much smaller portion of their income than it once did. Since the Internet age has made it too convenient for travellers to book their own tickets, airlines have moved away from paying commissions to travel agents. Airlines occasionally pay commissions if they wish to increase traffic on a new route or if an agent sends them a large amount of business. Travel agents are also paid fees by tour operators, cruise lines, and hotels for bookings. Fees Many travel agencies depend on fees to supplement their income now that commissions are no longer an option. Models differ depending on the agency. Some companies can charge you a flat fee for a simple airline ticket and then charge you more for more complicated itineraries. Others can bill on an hourly basis, with the rate based on how much research your trip necessitates. As a result, agents must often demonstrate their worth to travellers in order to keep their jobs. As a general rule, an agent's fees should equal or exceed the cost of booking on your own, either by reduced prices, analysis, or added value, such as room upgrades or free amenities. Specialized Services 116 CU IDOL SELF LEARNING MATERIAL (SLM)
Some travel agencies specialize in such forms of travel, such as corporate or group travel, and make money off of their knowledge. A corporate travel agency, for example, might provide software that allows employees to book travel and track expenses. It may provide consultancy services to businesses to help them create travel strategies or negotiate deals with airlines, hotels, and other travel vendors. Large agencies like American Express perform and sell analysis, which is often focused on benchmarking data from their diverse client base. Premium Listings By offering premium listing options, some agencies, especially online travel agencies, earn money directly from travel vendors. Hoteliers, for example, can pay a premium to have photographs and a more detailed description of their property displayed as visitors search. For a fee, an online agency may also highlight specific vendors or offers in a quest, making them appear above others. However, agencies must inform travellers that they are providing such services, as agents who bias content without disclosing their bias risk violating government regulations. Any business aims to boost profits by selling more products or services. The main objective is to reach Break-Even Point on the investment in a short period of time. Any business eventually reaches a point where the total cost of producing products or providing services must surpass total sales. Gross and net income are the two forms of profits. Gross profits are calculated by taking the total sale into account, while net profits are calculated by subtracting the cost of production. It includes everything from renting a building for a travel agency or tour service office to paying workers monthly salaries. The ratio of gross and net income to expenditure must be taken into consideration. A travel agency, in the case of modern travel agencies, is a corporate organisation that derives income from a number of sources. Travel agents and tour operators run their companies to collect commissions, so all of those earnings come from fees. Tour operators are charged a markup in addition to fees from various primary service providers. The amount of commission is determined by the type of network that a travel intermediary builds during the course of doing business. A travel agent searches for traditional revenue sources as well as modern commission-based revenue opportunities. However, it is undeniable that the sum of net profits that can be maximised in a given timeframe determines a travel agent's business expansion strategy. Traditional revenue streams, on the other hand, remain a critical business asset. The commissions paid to travel agents and tour operators include the sale of air, rail, bus, and ferry tickets, car rentals, package tours, hotel reservations, insurance, and foreign exchange. Meetings, discounts, travels, conferences, exhibitions and expositions, educational tours, event management, and thematic tours are only a few of the niche industries. These are all examples of pre-arranged all-inclusive community and individual tours. In addition, new revenue streams include group inclusive tours (GIT) and individual package tours for FIT. In 117 CU IDOL SELF LEARNING MATERIAL (SLM)
India 20 years ago, the air ticketing industry was comparable to the package tour industry today. Commissions from the sale of domestic and outbound package tours are the primary source of income for travel agents. An increasing number of travel agents are using franchises or GSAs to handle packaging services in order to maximise revenue. In the current travel agency market environment, negotiating with airlines or hotels for the bulk sale of airline seats and hotel rooms has given rise to a new class of agent, consolidators. Individual elements or company services are sold at a premium by these big consolidators, enabling travel agents to increase average revenue and income. Lower sales during the slow season can be compensated for by increased sales during the busy season. Some of the latest revenue sources include MICE activities, travel counselling, online booking, and corporate advisory services. Specialized facilities are given special attention in today's cutthroat market climate in order to maintain profit levels even during the off-season. The ability of a travel agent to obtain preferential rates or commissions with primary service providers for bulk purchases determines the amount of profit. Via various transactions, the figure depicts the linkage of benefit sharing between travel agents, tour operators, and primary service providers. Figure 7.1 Tour Operators Given the capacity of resources, a travel agent and tour operator can maximize a variety of revenue sources. In the travel agency and tour operation business, the following traditional and emerging sources of revenue earnings are listed. Even though airlines have reduced 118 CU IDOL SELF LEARNING MATERIAL (SLM)
commission rates, travel agents and tour operators cannot abandon the ticketing market. Some airlines have even dropped the traditional commission in favor of a flat fee based on the total number of tickets sold. Due to the nature of the travel and tour business, it has been proven that online travel agents cannot overpower so-called street corner travel agents. To maximize ticket sales, all online travel agencies have authorized travel agents. B2B, or business to business, is the technical term for it. Whether it's domestic or international airline tickets, cruise line tickets, train tickets, or bus tickets, the role of travel agents and tour operators in increasing ticket sales cannot be overlooked, especially with the rise of B2C business via the internet. Travel agents and tour operators sell individual services such as berth plus breakfast or full inclusive services on behalf of cruise lines. For example, travel agents promote fly-drive packages, and with their help, the maximum sale is achieved. On the sale of a package, cruise lines offer commissions, which are paid out monthly or quarterly. At the same time, airlines work with IATA-accredited travel agents to sell tickets, with a fee limit of one to three percent of the ticket price. For the reservation and cancellation of train and bus tickets, travel agents charge a service or transaction fee to customers. Tour operators, on the other hand, go for bulk sales of hotel rooms, airline seats, and cruise line berths, for which the primary service providers offer significant discounts or special rates. 7.3 TOUR OPERATORS SUCCESSFULLY USING REVENUE MANAGEMENT While many tour operators may be unfamiliar with revenue management, it is not entirely new to the industry. Operators all over the world have observed, tested, and successfully implemented revenue management techniques used by airlines and hotels. 1. Dynamic Pricing: We've been advised that dynamic pricing isn't allowed in the tours and activities industry. It simply does not work. In 2018/19, LAAX & Films Ski Resort disproved this belief by introducing dynamic pricing for regular ski passes based on data from previous years. Prices for quieter time slots and days were decreased, while prices for busier time slots and days were increased. 2. Incentives for direct bookings Need an entertaining website, a calendar with live availability to 'book now,' and (most importantly) a justification to book direct to maximize direct bookings. There are three compelling reasons for a customer to book directly with Park Guell in Barcelona. 119 CU IDOL SELF LEARNING MATERIAL (SLM)
2. Demand-based distribution: The Van Gogh Museum struggled with scale, with long lines forming from both OTA and ticket office bookings. There is such a thing as too much of a good thing. The Van Gogh Museum, as an extreme example of distribution management due to surging visitor volume, had an algorithm developed based on previous years' results. This helped them to anticipate demand and divide their regular ticket allocation between their ticket office and online ticketing services. Customer satisfaction has improved as a result of demand- based distribution, which has almost eliminated queue time during guest visits. Commissions from Package Tour Sales For travel agencies, selling package tours has become a lucrative business opportunity. Branded travel companies are seeing an increase in demand for structured domestic, inbound, and outbound package tours. Customers buy package tours directly from travel agencies at the price listed on tour brochures. Retail travel agents are hired by tour operators or wholesalers to sell package tours under different terms and conditions. Tour operators receive a 10% commission on total package tour sales, as well as rewards for meeting sales targets. Thomas Cook and Raj Travels, for example, use their registered travel agents to reach out to customers in various small towns and cities. Hotel Room Reservation Commission In comparison to other sources of revenue, travel agents typically find the selling of hotel rooms for a specific period of time to be very lucrative and appealing. Despite the fact that customers can book rooms directly online, all types of accommodation operators find selling rooms through retail travel agents to be very easy and feasible. Hotels charge a 10% to 20% fee on room sales, as well as exclusive discounts to tour operators for bulk room sales and free rooms to party leaders or travel agency executives. Transportation Booking Commission Earning commission on ground transportation reservations is a traditional source of income on which each travel agent relies heavily when booking various modes of transportation for their own clients. There are transport companies that have hundreds of vehicles available for hire. They are hired by tour operators for city sightseeing and excursions. On the cumulative transaction of booking a transportation facility, transport operators charge a 10% fee. Benefits of Organizing MICE Events MICE events are also organized by travel agencies for business houses and corporations. Trade shows, exhibits, conferences, gatherings, congresses, 120 CU IDOL SELF LEARNING MATERIAL (SLM)
political rallies, yoga camps, and meetings of various scales and sizes are all handled by specialized event management firms. These practices are promoted both directly and by retail travel agencies by wholesalers. Travel agents are paid fee by event management or destination management firms. Creative Travel in New Delhi, for example, is a wholesale agent or tour operator specializing in MICE. The HRG SITA, for example, generates revenue from the selling of airline tickets, sightseeing tours, hotel reservations, conference hall reservations, exhibition reservations, ground transportation, and outbound tours. The Kuoni Group of Travel in India is one of its most profitable divisions. Since 2007, it has been collaborating with the Hogg Robinson Group (HRG). The company, which has a 160- year history and a global network of 89 countries, is known for providing high-quality corporate services to multinational corporations and business conglomerates. Around 500 multinational and Indian companies are handled by HRG SITA India. 7.4 ON-LINE TRAVEL AGENCY In today's fast-paced world, online travel agencies such as Expedia and MakeMyTrip have a significant impact on how travelers book tours. These online travel agencies have many advantages to travelers by bundling hotel reservations with car rentals, airline tickets, and other services. Online travel agencies compete not only for clicks and sales, but also with hotel chains and airlines that offer their products directly via their websites. We need creative strategies to raise sales in the travel industry, which is quickly becoming a very competitive sector. In this article, we'll go through some of the most important revenue-generating tactics for online travel agencies. 1. Have A Good Website We come across several travel agency websites that are ineffective. As a result, having a nice, attractive, and user-friendly website for your Online Travel Agency is critical. To begin, when developing your website, make sure that it has high-quality professional photographs and proper functionality to attract customers quickly. As shown in the image below, your website should explain each and every service offered by your company, such as hotel reservations, car rentals, and flight reservations. Make sure that all of your services are connected to the appropriate service tab. You may also use pop-ups on your website's side panel to show the latest deals or offers. This will draw the attention of 121 CU IDOL SELF LEARNING MATERIAL (SLM)
visitors to your website and pique their interest in learning more about the available best deals or offers and booking them. Second, make sure your website is well-optimized for search engines and can be easily found. Your domain name should be simple to remember and prominently display your brand. Booking.com is the perfect example of this. By reading the domain name, everyone can tell that this company is in the booking industry. 2. Engage with Social Media The use of social media is a very common sales strategy for travel agencies. With a strong social presence, the content will rank higher in search results. Having an excellent website is insufficient. Additionally, you must connect with social media platforms such as Facebook, Twitter, LinkedIn, and Instagram. This is because Google prioritizes content distributed through these networks over other types of content. Have you noticed how much your friends share holiday images on Facebook or Instagram? This is because people enjoy bragging about their travel experiences on social media. Individuals are swayed by their friends' photographs and book their trip accordingly. As you can see from the statistics below, 52% of people are swayed by images of their friends on Facebook, while 48% stick to their weapons. Create a page on such social media sites where people can share their most recent experiences through stories, photographs, and videos. Additionally, it is appropriate to have some exclusive offers or best deals on this page in order to boost revenue for your travel agency. 3. Offer Packages By selling bundles, you can combine the various services you provide to create a truly unique experience. You may advertise unique seasonal packages, publicize hot airline offers, and attempt to deliver a better price by bundling hotel and operation. This can be both fascinating and beneficial for you and your clients. Selling travel packages online has become popular. To maximize their sales, all of the leading online travel agencies such as Orbitz and Booking.com use this technique. Customers like tour packages because it is well prepared in advance by the travel agent, allowing them to relax and enjoy their vacation as well. If you provide excellent service in addition to attractive and competitively priced packages, your customers will almost certainly return for their next ride. This is how you can develop your online travel business's revenue. 122 CU IDOL SELF LEARNING MATERIAL (SLM)
4. Offer Added Value The best way to maximize revenue per customer is to provide additional value to their experience in exchange for paying the tour price. Your customer will be satisfied if you provide them with anything in addition to the deal. For instance, you might include a complimentary lunch or dinner as part of your tour package. Additionally, you can deliver a complimentary day of sightseeing. If your tour was booked by a couple, you could deliver a glass of wine and tapas prior to the viewing to add to the romance. 5. Upload Videos According to Forrester research, video accounts for 60% of all online traffic. Individuals who enjoy travelling often enjoy documenting their journeys by photos or videos and sharing them. You should still solicit feedback from your customers about their experiences. Their entire experience can be shown on your website and social media platforms. For instance, when customers book a room online, they want to see exactly what they're getting. When shooting videos and creating virtual tours, emphasize the hotel's exterior, public areas, dining facilities, conference rooms, guest rooms, and bathrooms. Individuals planning their trips will get a sense of the experience by watching those videos and making an informed decision. 6. Encourage Your Customers to Leave Reviews Checking reviews before making a reservation is becoming increasingly popular. Customer reviews have the potential to increase your sales fivefold. You can entice customers to leave valuable feedback by holding seasonal contests for the best travel photo with reviews and awarding a reward or even a slight discount on their next trip. The web enables people to learn more about their intended travel destination, and they will almost certainly conduct a review quest. Therefore, allow previous customers to leave a summary of their trip experience on your website so that new customers can book with confidence. Reviews can be written for any service; for instance, you can visit the review page for Hotel Bay View in Singapore to get a sense of what to expect. 7. Manage Online Reviews and Take Action Reviews are a barometer that can be used to determine if the services you provide are performing well and also to find areas where you can improve. It is not mandatory to receive 123 CU IDOL SELF LEARNING MATERIAL (SLM)
favorable reviews on a consistent basis. Indeed, negative feedback still motivate you to progress in areas where you fall short. Every day, millions of people read the reviews posted on the websites of Online Travel Agencies before making a decision. It is not advisable to constantly post favorable feedback for your travel agency. As a result, you can still handle both positive and negative customer feedback. The following statistics illustrate the effect of online feedback on tourists and passengers. Additionally, you should respond to negative feedback and work to develop your services. This is the most effective way for online travel agencies to raise sales. 8. Ask for Referrals If implemented properly, customer referrals are one of the most successful ways for Online Travel Agencies to raise revenue. Requesting referrals can become a routine to increase clientele. It's a minor effort for a significant reward. Occasionally, individuals feel uncomfortable asking for referrals. Small companies are always unable to ask for referrals out of embarrassment and discomfort. They believe that by offering superior services/products, their clients will be pleased and will therefore spread the word about them. However, this does not work. It is not that they are unable to assist you; rather, it is that it never occurs to them before you inquire. Thus, it is important to solicit referrals from your clients and to be precise with your request. If you do not inform your contacts about your target client, you are wasting their time. Referrals may be requested via email or social media channels as well. You should write the referral email for your client and request that they include their name in the email and forward it to their mates. You can also create a blog post about your services and share it with your customers via social media platforms such as Facebook, Twitter, and others. Encourage them to post on their page or to leave a message tagging their mates. 9. Know Your Audience Another critical step toward increasing your sales is developing a thorough understanding of your audience. You should begin by attempting to comprehend your customer's needs. Only then will you be able to communicate in their language, meet their expectations, and ensure their satisfaction with your services. In order to gain a thorough understanding of your audience, you must ask them some questions; however, questions should not be too lengthy or repetitive. It should be succinct and to the point. For instance, you might inquire about 124 CU IDOL SELF LEARNING MATERIAL (SLM)
their financial situation. How many days do they want to spend on a trip? Which location do they wish to visit? and so forth. With the assistance of this response from your audience, you will be able to get to know them better and will be able to offer your best performance as well. Because you are aware of your audience's expectations and requirements, you can give them the most advantageous deals/packages. This will undoubtedly convert your audience into satisfied customers and contribute to your sales growth. 10. Engage Your Audience • Once you've identified your audience, the logical next move is to approach them based on their behaviors. • Sometimes, the agency will work with the same clients for years, building a strong partnership that makes it easier for them to choose a product they'll enjoy. • However, even though you work with a diverse group of clients, you can involve them by educating them on the latest sales, offers, and hot travel destinations. This will assist them in locating a travel product that is a good match for them. • You can engage your audience on social media and your website by writing engaging blog posts and regularly updating your content. Local new outlets and newspapers are both effective vehicles for capturing the audience's attention. • Consider the following picture, which illustrates how an online vacation planner company called Zicasso utilises such tools to maintain daily engagement with their audience. • Engage Your Audience • You can also engage your audience by promptly responding to their questions and sending thank-you emails or messages in response to their comments on your blogs. 11. Start A Blog When your customers are planning their next trip or just fantasizing about one, they would love to hear about other people's experiences with you. Create a blog where your audience can learn about all the beautiful places your agency can sell, as well as the reviews of your previous customers. You can either write the trips yourself or invite your customers to share their journeys and accept them as guest posts. This is a complement to both your own and user-generated content. 125 CU IDOL SELF LEARNING MATERIAL (SLM)
Effective writing is a sales strategy that aids in the development of client relationships. Online travel agencies such as MakeMyTrip and Travelocity use this sales strategy to boost their revenue. 12. Develop A Trusted Reputation People are always on the lookout for exciting adventures at a reasonable price, but they also want to work with a reputable Online Travel Agency who can guide them safely, appropriately, and offer the best deal for their journey. Developing a reputable online travel agency is not an easy job. You must work diligently and differentiate yourself from your rivals in order to be the best. It all depends on the services you deliver, the best offers you provide, and the level of customer satisfaction you provide. Customer service is critical in establishing the agency's credibility. If, for whatever cause, your customers lodge complaints or cancel bookings, how you handle those situations and provide adequate service to your customers is critical at that stage. Customer service also contributes to the development of a positive image, especially when your customers do not speak the language of the country for which they have booked a trip. It is important that you communicate clearly with the customer and that they fully understand what they have booked. 13. Be Responsive and Always Available Waiting for a response is the most aggravating experience the customers may have. As a result, you can respond to all customer inquiries promptly. You should maintain a high level of responsiveness through email, social media, and your website. Prompt response can also assist you in establishing a positive reputation for your Online Travel Agency. Prompt response from the side improves your company's image, which results in increased sales. 14. Use Professional Photography and Good Description The website should be distinct and one-of-a-kind. It should not be identical to those of other rivals. Consider the customers' perspective on the matter. Suggestions from the customers will help to improve. They are the individuals who can provide with the correct opinion. Solicit their feedback and use it to improve our website's overview of all the services you offer. Additionally, we can use professional photography on our site to create a friendly and attractive appearance that will entice visitors to stay. A high-quality image is critical for travel websites to attract their tourists. 126 CU IDOL SELF LEARNING MATERIAL (SLM)
We can see how Airbnb utilizes professional photography and averages 2-3x bookings. This undoubtedly draws buyers and often leaves a favorable impact on them. 15. Send an Email Newsletter For a very long time, email marketing has been a wise option for direct contact. This is still so, despite the rise of social media and other high-tech marketing platforms. Email is an excellent way to create leads and keep people updated about the travel agency's news and updates. Bear in mind that your email marketing plan should include a weekly or monthly newsletter to keep the brand fresh in your consumers' minds. We can advertise unique seasonal packages, reveal hot offers from airlines and other travel partners, or share helpful travel tips from our agents by sending emails to our customers. Utilize the email newsletter to educate travellers about what the website has to offer. We can use technology and storytelling to construct highly personalized emails. 16. Host a Contest • Another often used tactic for encouraging people to get involved with your agency is to host a contest. • Everybody enjoys the chance to win something, whether it's a free trip, a free hotel night, or a discount. • Contests are an excellent method of engaging the audience. • The following picture illustrates how MakeMyTrip hosts contests and sends contest alerts. • Organize a Contest • You can request a photo gallery or video of your customers' best vacations or a 500- word description of their dream destination. • One of the best examples is Alaska Airlines' Chicago Contest, which was held via a special tab where viewers could upload a video or photograph in which they \"put the smackdown on ordinary.\" They must solicit votes from their acquaintances. • Alaska Air Group (Formerly Virgin Airlines) • The winner will receive a complimentary flight from Chicago to California on a rival airline, as well as a complimentary California getaway and return flight on Alaska Airlines' inaugural flight. • The expectation was that if people flew another airline once and then experienced Virgin, they would convert a few fans. 127 CU IDOL SELF LEARNING MATERIAL (SLM)
• Similarly, you must motivate the audience to earn the prize or enticing discounts. They'll be eager to share their stories, and they're likely to return for their next trip even if they don't win. 17. Regular Content Update Google adores fresh, exclusive material. When we update our content regularly, Google gains trust in our company as an entertaining, successful one and can rank our site higher in the search results. Individuals seek timely information. Daily updates on exclusive deals, activities, and hotel information can ensure that can attract additional customers. It is important to maintain an educated and updated audience. As the travel industry becomes more competitive on a daily basis, adding new content demonstrates that the company is active. By demonstrating our involvement and interest in providing information, we demonstrate our commitment to your customers. 18. Be Clear Clarity in writing is one way to pique and maintain our customers' attention. Be precise, descriptive, and audacious in your prose. If we are offering specials or running a contest, be precise and concise. There should be no hidden costs or additional charges. Keeping in mind that your website can be used by a variety of different types of consumers, use straightforward language that is easily understood by all audiences. Being transparent also benefits your customers who do not speak the language of the country for which they have booked; it is important that you communicate clearly with your customers and that they understand what they have purchased. Ascertain that the customer leaves with a good understanding of the pick-up time and place, what to carry, how to pay upon arrival, and any additional costs. 19. Tailored Sales Promotion Nowadays, people tend to book a tailor-made tour in order to experience their destinations in the manner they want while remaining within their budget. As a result, customized sales promotion is critical for can the travel agency's revenue. 128 CU IDOL SELF LEARNING MATERIAL (SLM)
Tailored promotional promotions include a variety of items to create a truly special experience. Create a bundle and attempt to deliver a better deal by bundling the hotel, travel, and operation. This can be both fascinating and beneficial for you and your clients. You can browse the Cox & Kings website to get a sense of the tailor-made vacations they sell. 20. Mobile Friendly Additionally, it is critical to ensure that your travel website is properly sensitive across a variety of mobile devices, including iPhones, Android devices, and iPads. This is critical since people nowadays tend to view and book their vacations through mobile devices, tablets, and so on. Having a mobile-friendly travel website enables smooth system transitions and a far more enjoyable user experience. Mobile-friendly travel websites are easier to access and load more quickly. Thus, it streamlines the booking process and enables customers to book from anywhere, at any time, and at their convenience. Google's Mobile-Friendly Test is a useful tool for determining the mobile-friendliness of your website. This will helps to determine the mobile-friendliness of any travel website: We can review these 20 Main Strategies for Online Travel Agency Revenue Growth and introduce them to help our business expand. 7.5 SUMMARY • Group travel can be a significant source of income revenue for travel agencies • One of the most popular sales techniques for travel agencies is the use of Social Media • Customer Referrals are one of the top and most effective way to increase revenue for Online Travel Agencies if implemented correctly • Another most important steps to increase your revenue is to know your audience properly. You should try to understand the needs of your customer first. 7.6 KEYWORDS • FIT---Foreign independent travelers • GIT- Group Inclusive Tours • Cruises-Another important source of revenue for travel agencies is cruise vacations • GDS—Global distribution system 129 CU IDOL SELF LEARNING MATERIAL (SLM)
• Internet travel agents- Internet travel agencies are Internet-based travel agencies 7.7 LEARNING ACTIVITY 1. Analyze the impact of Social media on tourist place marketing ___________________________________________________________________________ ____________________________________________________________________ 7.8 UNIT END QUESTIONS A. Descriptive Questions Short Questions 1. Comment – Tour operator source of revenue. 2. Explain FIT in detail 3. Explain in detail about price listing. 4. Write short notes on cruises vacations. 5. How FIT helps travel agency? 6. Describe on dynamic pricing. Long Questions 1. Explain in detail the sources of revenue for travel Agents? 2. Explain the income through on-line? 3. What are the sources of income for tour operator? 4. Describe role of travel insurance while planning a journey? 5. List out the tactics for a good online travel agency. 6. How the online travel agency will engage their audience? B. Multiple choice Questions 1. Experienced travel agencies will be versed in advising travelers of the pitfalls that might invalidate a travel ---------- policy a. Pricing 130 CU IDOL SELF LEARNING MATERIAL (SLM)
b. income c. medical d. insurance 2. -----------friendly travel sites are easier to navigate a. Student b. tourist c. user d. mobile 3. Which of the following tourism service suppliers has been the most aggressive in marketing through direct distribution channels? a. Hotels b. Rental car companies c. Cruise ships d. Airlines 4. Availability of trained _____________is essential for tourism a. Manpower b. Candidates c. Caterers d. Hoteliers 5. India needs to change its ____________ marketing approach to modern marketing approach for developing Tourism a. Planning b. Organising c. Traditional d. Management 6. _____________holidays are one of the type of tourism 131 a. Wellness and health b. Music and Recreation c. Sports CU IDOL SELF LEARNING MATERIAL (SLM)
d. Entertainment 7. Tourism activity is ______________generating activity a. Income b. Recreation c. Travel d. Destination 8. Advertising agencies create jobs in ______________field a. Banking b. Copywriters c. Production Department d. Technology field 9. The place at which a traveller terminates his journey is called ________________ a. Destination b. Domestic Tourism c. Excursionist d. Mass tourism 10. Tourist ___________is a composition of series of operations that are result of study of the market a. Infrastructure b. Motel c. Itinerary d. Multiplier 11. Destination area must have __________ appeal to tourist a. Attraction b. Accessible c. Available d. Affordable 12. Tourism Industry offers _________ means of creating jobs in comparison to manufacturing industry 132 CU IDOL SELF LEARNING MATERIAL (SLM)
a. High-Cost b. Low Cost c. Profitable d. Affordable Answer 1-d, 2-d,3-, 4-a, 5-c,6-a,7-a,8-b,9-a,10-d, 11-a,12-b 7.9 REFERENCES Reference Books • Travel Agency and Tour Operation, Concepts and Principles – J.M.S. Negi. • Travel Agency Management - Mohinder Chand. • Professional Travel Agency Management – Chunk, James, Dexter &Boberg • The Business of Travel Agency Operations and Management– D.L. Foster 133 CU IDOL SELF LEARNING MATERIAL (SLM)
UNIT 8: TOUR OPERATOR -I Structure 8.0 Learning Objectives 8. 1 Introduction 8.2 Definition 8.3 Types of tour operator 8.4 Rules for recognition of tour operation 8.5 Role of tour operators 8.6 Summary 8.7 Keywords 8.8 Learning Activity 8.9 Unit End Questions 8.10 References 8.0 LEARNING OBJECTIVES After studying this unit, students will be able to • Identify the concept of Tour operator. • Explain the various types of tour operator • Analyse the rules of tour operator • Define the role of tour operator • Apply the concept in his further studies 8.1 INTRODUCTION A tour operator is an agency, corporation, or company that purchases individual travel components from suppliers and incorporates them into a package tour that is sold directly or through middlemen to the general public. Tour operators that are more specific are mainly responsible for providing and executing the services listed in a particular package tour. They can either supply these services themselves (as some own cars and coaches, hotels, and other travel-related services), or they can procure them from other suppliers. That is why they are referred to as tourism product manufacturers. 134 CU IDOL SELF LEARNING MATERIAL (SLM)
Tour operators are sometimes referred to as wholesalers, although this is only partly accurate since a wholesaler purchases goods and services in bulk for the purpose of preparing a tour package and then retails it through travel agencies or directly to clients. However, a tour operator who owns one or more components of a tourist product (SOTC, TCI, Thomas Cook, Indo Asia KUONI) develops a new tourist product, such as 'inclusive tours.' Generally, tour operators sell a range of package tours to meet the needs of various types of travelers. Customers (tourists) and primary service providers are linked by tour operators. This is also known as a wholesaler and serves as a major destination promoter. It is a specialist agent capable of purchasing services in bulk and selling them in a methodical and coordinated manner across the channel. It is critical to comprehend the concept of tour operator. It is an agency, business, or corporation that has the expertise and capacity to purchase individual travel components from various suppliers and assemble them into appealing packages by adding a markup. It is offered to consumers directly or through middlemen at various prices (Travel Agent). The tour operator is primarily responsible for ensuring that services are delivered in accordance with the tour itinerary's contract. A tour operator is a professionally run organization that specializes in the preparation and management of pre-paid and pre-planned vacation and business travel packages. For the provision of bulk travel facilities, tour operators sign long-term contracts with air carriers, hotels, cruise liners, and other suppliers. Individual travel services are combined to form various tour packages that include round-trip transportation, lodging, ground transportation, and sightseeing. Consumers hold tour operators responsible for the travel facilities included in each tour package. Package vacations are organized by tour operators, who sign annual contracts with hoteliers, airlines, and ground transportation firms. They produce brochures that detail each service part. The services are usually provided separately by tour operators, and tours are held in the cities where the offices are located. These facilities, on the other hand, can be arranged by other providers in a variety of locations. Package tours are sold to consumers through travel agents or directly. However, depending on market conditions, our operator might have ready-made or tailor-made packages. Box tour company delivery goes through many phases. Tour Operators' Dominant Roles 135 CU IDOL SELF LEARNING MATERIAL (SLM)
A tour operator purchases (or, in some cases, owns) a large amount of travel services such as carriers, lodging, and services. Consumers may then buy these facilities as part of a kit. Travel packages are distributed by independent and operated travel agencies, as well as over the phone and the internet. The essence of different tour operators' primary activities • Integrated – Business Conglomerate • Inbound – Describing important locations in the world • Outbound – Highlighting holidays in other countries • Domestic – Specializing in domestic holidays within the country • Specialist–Special interest travel to destinations • Independent – Specialized in specific holiday Integrated – Business Conglomerate • Mass Market- Targeting more sale In package tours, the tour operator provides the following services: • Airport and hotel transfers • Arrangements for conventional reception at arrival points • Arrangements for luggage transfer in airports and train stations • Arrangements for guided sightseeing tours • Options and selections for destinations all over the world • Detailed itinerary preparation • Appropriate hotel selection and reservation • Meeting, conference, and meeting arrangements • Exhibition and factory visits • Theme parties, festivals, and sightseeing Air tickets & travel documents such as passports, VISAs, health certificates, and currency, insurance, and permits for entry into restricted areas • Foreign exchange and travel insurance are two of the most important aspects of any trip. • Experienced and experienced tour guides, escorts, interpreters, and tour managers. • Personalized services at destination • Coordination with local tourism organizations at destination 136 CU IDOL SELF LEARNING MATERIAL (SLM)
8.2 DEFINITIONS OF TOUR OPERATOR According to Poyther (1993), a tour operator is someone who is responsible for putting together the tour ingredients, selling them, taking reservations, and managing the actual operation. According to Holloway (1992), tour operators perform a unique role in the tourism industry because they acquire individual tourism products/services and incorporate them into a package tour that they offer directly or indirectly to visitors. Tour operators are categorized according to the type of tour they provide and the region in which they operate package tours. Each type of tour operator has its own distinct way of delivering services. This classification is proposed to differentiate between different definitions and functions. Inbound tour operators, outbound tour operators, domestic tour operators, professional tour operators, and field tour operators are the different types of tour operators. The figure depicts travel trade intermediaries, which include various types of travel agencies and tour operators. Figure 8.1 Travel Trade Intermediaries 137 8.3 TYPES OF TOUR OPERATORS As shown in figure 8.1 the types of tour operators are follows: CU IDOL SELF LEARNING MATERIAL (SLM)
Inbound Tour Operators Inbound tour operators are those that negotiate with and manage directly inbound international visitors, providing them with a variety of facilities upon their arrival and departure, such as transfer, lodging, transportation, sightseeing, entertainment, currency exchange, and insurance. This form of tourism is often referred to as international tourists and incoming operators. International visitors and incoming operators are citizens of countries other than the one being visited who travel for tourism purposes. Incoming tourism contributes to the country's economic growth. Outbound operators: Outbound operators are those that assist travelers from one country in travelling to another. For instance, outbound operators assist residents of the United Kingdom in travelling to another country for tourism purposes. International tourists are another term for this kind of traveler. Virgin Holidays offers its clients outbound travel services. The organization helps customers plan foreign trips and offers travel packages to European countries, South Asia, the United States, and Africa. Domestic operators: Domestic operators offer tourist services throughout the host countries. The operators sell tours such as national park tours, train tours, and river boat cruises. This type of operator offers day tours or tours that last less than a day. This form of tourism is often referred to as international tourists and incoming operators. International visitors and incoming operators are citizens of countries other than the one being visited who travel for tourism purposes. Incoming tourism contributes to the country's economic growth. This is often referred to as domestic tourism, which refers to people visiting destinations within their own country's borders for tourism purposes. Estimates of the size of this segment of the market differ since domestic tourism is not properly calculated in many countries at the moment. Within domestic tourism as a whole, same-day visits are the most difficult to measure. In the majority of developing countries, the frequency of day visits is now so high that it is difficult to quantify using conventional survey methods, as people find it difficult or impossible to recall how many trips they made over a span of months or even weeks. 138 CU IDOL SELF LEARNING MATERIAL (SLM)
Direct sell operators: Some operators sell their services through a network of tour agents. This type of operator sells their packages directly to the public in order to obtain the higher prices. Trade associations regulate the tourism industry and provide guidance for the creation of vacation packages. The following are the trade associations: Association of Independent Tour Operators: AITO's primary objective is to provide consumers with adequate services by focusing on three factors: choice, quality, and operation. Virgin Holidays has complied with the AITO's rules governing the protection of customers' interests. Additionally, operators are bound by AITO's own code of conduct. Operators/Ground Handlers Reception operator, destination control operator, and managing agencies are all terms used to describe ground operators. These companies are typically required to make plans and handle ground logistics at a specific location. As a result, a ground operator offers services to major tour companies without having a local branch or office. They do not deal with major vendors such as hoteliers, transportation companies, car rental companies, entertainment companies, and so on. All tour services are coordinated, supervised, and accounts/payments are handled by the operator. As a result, before selecting a ground handling operator, all inbound and outbound operators must consider the following factors. i. Place convenience ii. Company size iii. Professional personnel iv. Business length v. Reputation and membership in international and national travel and tourism associations vi. Credit facilities For the following reasons, wholesale tour operators depend heavily on ground operators. i. Introduce a new product or devise a marketing strategy to promote these exotic destinations. ii. Inability to maintain own branches at each destination due to a lack of control over government laws, a lack of personal contracts, and a language barrier. Operator of Special Interest Tours 139 CU IDOL SELF LEARNING MATERIAL (SLM)
This form of tour operator specialises in special interest package tours and promotes them. For the packages, they mostly use direct marketing or retail agents. These are wildlife and ecotourism tour operators that create wildlife and ecotourism packages for niche market groups. Since the number of customers is small, this type of tour operator does not prepare for a mass market. When a company deals with specific areas, there must be potential customers for package tours because the nature and cost factor is higher than for traditional package tours. Specialist tour operators only schedule tours when the weather is pleasant, and their company is mostly seasonal. Many specialist tour operators have shifted their focus in recent years to corporate travel, reward travel, MICE travel, ecotourism, rural tourism, and cultural tourism. They are also known as tailored or customised tour operators because package tours are created based on tourist preferences and suggestions. During the tour, specialist tour operators carry out the following activities: I. Arranging visits to fairs and festivals venues II. Arrangements for the grounds of shopping and exhibits. III. Providing sports and game facilities for hire (golf, winter sports, and water sports). IV. Provision for scholarly interpretation of objects with the help of experts at the museums V. Arrangements for host community interaction VI. Organizing special cultural programmes in the palaces VII. Special amenities for the tourists in the train or bus journey 8.4 RULES AND CONDITIONS 1. Requests for recognition should be submitted to the Director, IATA Agency Investigation Panel. 2. The application for approval must be submitted in the required format. The aim of recognition is to promote and expand the global, regional, and national air transportation and tourism industries. 3. The travel agency must have been in operation for at least two or three years. 4. The travel/tour company's personnel must be professional and educated at IATA- accredited institutions. Suppliers trump agents/distributors This is especially the case when selling complex multi-day tours (hence metasearch more likely to win long term vs distributed transactions where the sale takes place on a 3rd party website) 140 CU IDOL SELF LEARNING MATERIAL (SLM)
Curation trumps aggregation Setting up as a tour guide or tour operator has a very low entry barrier (much lower than to setup a hotel or an airline). Thus, curation is critical. Curation involves a thorough understanding of the product/destination in order to be achieved correctly. If you're trying to aggregate, you need the courage to call out a supplier or a commodity that's substandard (or use consumer reviews to do that for you) Don't overcomplicate inspiration functionality on your website The product is inherently inspirational - let it shine. Instead focus on tools that aid product comparison and let the product do the inspiration rather than the UI. Video works too. Customers rarely travel to the same destination regularly As a result, CRM and long-term relationship building via social layers are much less effective than they are in chain hotels/airlines (where a longer term multi transaction relationship can be built up). As a result, community building around the website is difficult (NOTE: Tough, not impossible) In multi-day tours, efficiency trumps automation - in day tours, automation trumps efficiency Recognize that they are not synonymous and necessitate a significantly different approach strategically, marketing-wise, and in terms of how you can create relationships for onward delivery. For instance, while automation implies a commoditized product, efficiency entails human tailoring services in a clever manner. Be aware of agent requirements Agents for small tour operators (who will generate a sale every few weeks) will never gain sufficient knowledge of your product to sell without first approaching you. Therefore, when designing an agent interface, whether the agent is a high volume agent, treat their desires similarly to those of a first-time user. 141 CU IDOL SELF LEARNING MATERIAL (SLM)
Don't launch a startup without thinking about the industry foundations on which it is built It's really easy to create a website in a month that looks awesome but contains stale / insufficient / minimal data or lacks an automated feedback loop that maintains data accuracy. Data is the bedrock upon which you can create a valuable startup. It's preferable to have a limited number of high-quality products than hundreds of low-quality products. While it is possible to create a company without solid foundations, a funded startup must solve a problem in a scalable manner in order to achieve the ultimate value required for funding. Don't get distracted by products that never sell This sector is unique in that you can produce goods that never sell (for example, tour itineraries). They simply sit on websites and do nothing (except attract a few search engine visitors who then buy your core tours). When airlines, hotels, and other travel-related businesses are featured on travel websites, they often list only items that exist! Keep this in mind when calculating the number of tours on a website or performing market research on a new destination. 8.5 ROLE OF TOUR OPERATOR With the advent of the internet, it has become trivial to find something under the sun. However, the challenge is in compiling and using the data. Organizing a trip can be a difficult job. While it can seem easy, planning an itinerary is unquestionably time consuming. It is physically impossible to contact all airlines or hotels in the vicinity of your vacation destination in order to obtain a competitive rate. Each tour operator is responsible for a distinct function. When the booming travel industry is this large, it is only rational to divide these specialists into four categories in order to provide more personalized service to each traveller. • Inbound tour operators To be precise, they are the tour operators who accept visitors and plan for their stay in the host country. An inbound tour operator's responsibility is to attend to the needs of an incoming traveller. • Outbound tour operators These are the travel agents who arrange for your international travel, whether for business or 142 CU IDOL SELF LEARNING MATERIAL (SLM)
pleasure. Traveling to a foreign country for the first time can be daunting and trigger anxiety about arrangements. • Domestic tour operators Domestic travellers are catered to by these specialised tour operators, who collect information and combine them into an all-inclusive tour to provide a detailed experience. • Ground operators To make travelling easier for travellers, ground operators or handling companies appoint overseas operators to handle tour arrangements, ensuring that their clients have a smooth experience. Since no single travel company can cover all aspects of travel, including understanding the destination country's government policies and local excursion providers, they rely heavily on ground operators. For instance, when you book a trip to Bali, Indonesia, the ground operator will assign you a jet skiing excursion guide who is familiar with the safest and most reputable supplier in order to avoid language barriers or compromise on safety. Travel advocates taking the lead The primary determinant of a thriving tourism industry is the level of service. When your reputation is built on their word of mouth, it becomes critical to build a cordial relationship with visitors and make them feel welcome. Having said that, several other factors contribute to the development of curiosity and rapport among current and prospective travellers. As previously mentioned, tour operators play a critical role in inspiring people to fly. They are, without a doubt, the tourism industry's backbone. Due to the nature of their company, they are entitled to significant discounts on goods and services purchased in bulk. We as travellers’ profit from an assembled and personalised kit under one roof only because of their close-knit network. Recognized as a big influencer, it becomes their primary duty to maintain an enduring relationship with their clients. 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. 1. It is a wholesaler as it assembles packages as per the trend of market and capacity of distribution channel 2. It deals with customers directly as a principal agent or foreign travel agent without off- loading tours to ground handling agents. 3. Tour operator has liberty to amend the tour itinerary and programme if it warrants. 143 CU IDOL SELF LEARNING MATERIAL (SLM)
4. It invests much of time and resources to chart out delightful and value added tour itinerary for meeting the demand and expectation of tourists. 5. It gives much stress on selling the tour than the conducting the tour. 6. 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. 7. It mostly provides international transfer from hotel to airport and vice-versa, if offices of tour operators are located. 8. It deals with both the tourists and primary service providers as direct intermediary. 9. Tour operators design the tours in such a way that handling agents may not get extra excursion tours directly from tourists. 10. It is committed to work as a responsible partner in the tourism industry to popularise destinations and explore new potential destinations through their package tours. 8.6 SUMMARY • Tour operator are those who connects people to their desired places. • There are in-bound and out bound types of tour operator. • There are many rules and regulations for a tour operator. • Tour operator is a person who brings tourists by his various packages 8.7 KEYWORDS • AITO—Association of independent tour operators. • CRM—Customer relationship management • Travel Agent- middlemen at various prices. • Domestic – Specializing in domestic holidays within the country • Specialist–Special interest travel to destinations 8.8 LEARNING ACTIVITY 1. Prepare a package for Temple tours and Students Tours ___________________________________________________________________________ ____________________________________________________________________ 8.9 UNIT END QUESTIONS A. Descriptive Questions 144 Short Questions 1. Explain about inbound tour operators in detail 2. Explain about outbound tour operators in detail CU IDOL SELF LEARNING MATERIAL (SLM)
3. Define and explain role of tour operators? 4. What is AITO? 5. What are the services provided by tour operator in the package tours? 6. Write short on Inbound Tour Operators Long Questions 1.What are the types of tour operators? 2.Explain the rules and conditions of tour operator? 3.Explain the role of tour operators? 4.List out the essence of different tour operators' primary activities 5.List out the activities that are carry out by the specialist tour operators during tour. B. Multiple choice Questions. 1. Tour operators are sometimes called------- a. retailer b. whole salers c. shopkeeper d. traveller 2. Most significant determinant of a tourist business is ________ a. Destination b. price c. both a and b d. Quality of service 3. One of the step in destination planning is ___________ 145 a. Goal setting b. Tourism planning c. Resource Planning d. Profit making 4. _________________is a part of tourism destination planning a. Human Resource Planning b. Ecotourism c. Public relations d. Government policies CU IDOL SELF LEARNING MATERIAL (SLM)
5. _________ is a very powerful pull marketing strategy for tourism products. a. Word of mouth b. Trade show promotion c. Sales promotion d. Exhibitions 6. ________ tourism products include visit to natural resources and natural environment. a. Adventure b. Symbiotic c. Manmade d. Natural 7. __________ characteristics of Tourism creates the challenge of fluctuations in demand for tourism products. a. Storability b. Separability c. Tangibility d. Seasonality Answer 1-b,2-d,3-c,4-a,5-a ,6-d, 7-d 8.10 REFERENCES Reference Books • Travel Agency and Tour Operation, Concepts and Principles – J.M.S. Negi. • Travel Agency Management - Mohinder Chand. • Professional Travel Agency Management – Chunk, James, Dexter &Boberg • The Business of Travel Agency Operations and Management– D.L. Foster 146 CU IDOL SELF LEARNING MATERIAL (SLM)
UNIT 9: TOUR OPERATOR -II Structure 9.0 Learning Objectives 9.1 Introduction. 9.2 Definition 9.3 Market Research 9.4 Tour Package Formulation 9.5 Summary 9.6 Key words 9.7 Learning activity 9.8 Unit end questions 9.9 References 9.0 LEARNING OBJECTIVES After studying this unit students will be able to • Identify the concept of market research • Analyse the tour package formulation. • Recognises the primary functions of tour operator 9.1 INTRODUCTION A tour operator is responsible for the finer aspects of a holiday or tour, such as hotel, lodging, meals, and transportation. Tour operators offer travel guides and escorting services, as well as arrange for all of your travel needs and desires. 9.2 DEFINITION Tour operators purchase in bulk a variety of tourist items – plane tickets, hotel accommodation, and coach services. They then 'package' them for resale to retailers and customers. Additionally, their offering is referred to as Inclusive Tour Packages. A tour operator is someone who purchases the individual components of a travel product on his own account and then mixes them in such a way that he can sell his clients a package travel, or tour. He is compensated by a proportional markup on the rates he charged to suppliers of the facilities that comprise the packages. 147 CU IDOL SELF LEARNING MATERIAL (SLM)
Tour operators can be divided into a variety of categories according to the nature of their jobs, i.e., the business area they serve and their level of specialization. The roles of tour operators have changed dramatically over the years. Clearly, the variety, pattern, structure, and scale of the tour operation have grown significantly. Today's tour operators face intense international competition in the form of competition, and they must design and build tour packages to meet the demands of ever-demanding and sophisticated customers. Indeed, they must have a thorough understanding of the tourist-generating industry as well as the quality-price ratio of the packages they want to offer. Many tour operators believe they are unable to design/plan tours because they lack the necessary experience, skills, expertise, and ‘something' to meet market demands. They can, however, prepare, design, and run both international and domestic tours if they approach it in a systematic, scientific, and businesslike manner. Working with retail travel agencies and vendors/principal suppliers, formulating effective and extensive marketing plans, determining cost and price, operating and managing a tour, dealing with travel documents and legal formalities, and handling the finances are all activities that require commitment, determination, and foresight. As a result, the process of designing and preparing a tour package and thus satisfying visitors can be thought of as a sequence of stages beginning with market analysis and ending with actual tour service. Stages of Tour Package Creation and Planning 1. Market and Destination Research: Tour packaging research's main goal is to analyze and comprehend the key elements associated with a specific tourist market and destination. In general, many tour operators find it extremely difficult to plan anything for everybody. If a person wants to work in the tour industry, he or she will focus on defining his or her areas of interest and specialization. As a result, the tour operator will conduct research not only on the tours that seem to match those areas of interest and specialization, but also on the potential demand for those areas. Some tour operators develop a tour product first and then look for a market for it. The destination area, which includes tourism potential, tourist appeal, lodging, and other facilities, 148 CU IDOL SELF LEARNING MATERIAL (SLM)
is their tour product. Before entering the tourism industry, a tour operator takes the following steps conceptually: i. Identifying economic, political, social, and climatic factors that affect the potential production of package tours. ii. The target market: when the target market is small, the tour operator must obtain a large percentage to make a tour profitable, but when the market is large, the tour operator aims to catch a smaller percentage; iii. Tailoring the tour to the specific requirements of the target market. iv. Identifying primary destinations and conducting a comparative analysis of alternatives. v. Making contact with suppliers. vii. Making policy choices is the next step. Essentially, tour operators should take a constructive progressive approach by studying both tour ingredients and the market, i.e., the clientele, competition, and tourist resources in the destination region. As a result, this is not to say that no one should join the tour business; rather, it is to emphasize the importance of conducting market research before investing money and time in a tour that the research has shown to be unprofitable or unpromising. 2. Tour Itinerary Growth: After the destination and target market studies have been completed, the next step in the development process is to create a successful tour itinerary. It is focused on two things: new tour operators researching both destinations and tour ingredients, and existing tour operators reviewing questionnaires filled out by previous tour participants. In general, new tour operators go on a \"familiarization tour\" before developing an itinerary after a good run. The itinerary is a condensed tour schedule that identifies the starting points, ending points, en route points, lodging, transportation, sightseeing activities, and other services. 149 CU IDOL SELF LEARNING MATERIAL (SLM)
Furthermore, an itinerary displays the sequence of different tour ingredients and offers important details such as the meeting place, starting point, departure date, and tour length, legal criteria, destination features, optional activities, meal, and possibly more. As a result, itinerary production has become the crux and/or central point for a tour company's success. There are two basic approaches to developing an itinerary in theory. The first involves approaching vendors without revealing his identity. The reasons for this strategy are that the tour planner makes reservations separately from the vendor companies as a visitor or as a tour planner to see how they handle the \"ordinary tourist.\" It aids him in categorizing vendors into extreme good and extreme poor groups. That is, the tour manager begins the ‘tour' as a tourist who is unremarkable in comparison to the other visitors. It gives the tour manager a significant benefit in that it allows them to assess vendors and their services from the perspective of the general public (tourists). However, the method has the drawbacks of being both costly and time consuming. The second method entails a tour manager signing a contract with all possible vendors ahead of time in order to bring together all of the ingredients. When the ‘fam tour' is done this way, the tour manager brings all of the tour's potential components together and creates the final tour itinerary. Obviously, the average tourist does not receive nearly as much as a tour planner does. During the tour planner's visit, most vendors provide more convenient and comfortable facilities. This approach, however, has the drawback of giving the tour planner a skewed perspective on all aspects of the tour. The combined approach is most often used by tour planners to develop an itinerary, according to industry practices. As an unidentified individual traveler, the tour planner undertakes all possible aspects of the tour, then repeats each tour ingredient as an identified tour planner. As a result, when creating an itinerary, a tour planner will have a much more realistic perspective. More importantly, before designing and planning an itinerary, the tour planner must try to answer three key questions: \"How much customer demand is there in the market?\" \"How 150 CU IDOL SELF LEARNING MATERIAL (SLM)
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