much customer demand is there in the market?\" \"How much customer demand is there in the market?\" \"How much customer demand is there in the market?\" \"How much customer demand is there in the market?\" '; 'How useful is the tour? 'How profitable is the tour?' and 'How profitable is the tour? ’. 3. Negotiations with Tourism Vendors/Suppliers: The next step is to negotiate with potential vendors once the itinerary has been finalised. Depending on the nature and size of the tour, the tour planner works with a variety of vendors. Airlines, lodging companies, transportation operators, car rentals, ground operators, sightseeing vendors, and so on are among the most prominent. A tour planner can negotiate directly with an airline or through a travel agency. If the tour company has a long history of operating a large number of inclusive air tours, the tour planner will typically be in a better position to negotiate a better price and terms/conditions than the tour planner/company could get through a travel agency. If the company is new and usually runs railroad tours, however, operating through a travel agent rather than directly would result in a better price and margin, since air carrier vendors typically provide/offer price reductions only to their best clients. Travel agencies purchase significantly more airline seats from airlines than tour operators, especially small-scale tour operators. In practice, a travel company that operates on many air tours and purchases a large number of airline seats has the opportunity to meet with airline marketing executives to discuss potential tour party fares and ticketing. The tour planner, on the other hand, will be directed to the airline community desk if he needs to bargain for discounted air tickets. Most airlines, however, do not allow for this form of negotiation. As a result, any tour company seeking to receive ‘group' rates must follow all formal rules and conditions in order to qualify. Furthermore, the airline's ability to negotiate different services and concessions will be determined by how urgently the seats must be filled. 151 CU IDOL SELF LEARNING MATERIAL (SLM)
Hotel agreements are usually less formal than those with airlines. Negotiations with lodging properties should begin on an appointment basis, preferably with top executives from each property. The tour manager must strike a balance in providing quality accommodation at a price that is affordable for the target group being solicited for participation in the tour, and it is recommended that the negotiated agreements decided upon through consultations with property executives be detailed immediately after each meeting. It's always preferable if the executive with whom you're negotiating agrees to sign a legally binding contract that includes a termination clause if the hotel fails to deliver the promised services and amenities. A tour operator also negotiates with other vendors such as ground operators, hotels, transportation operators, sightseeing vendors, insurance lines, banking companies, cruise companies, and even others that deal with tourist facilities that are part of a tour package indirectly. Ground operators are usually umbrella organizations that provide a wide range of tourism facilities under one roof. Each vendor's level of sophistication is determined by factors such as the scale of their activities and the number of tourists they serve each year. Furthermore, the tour manager must take into account the vendors' dependability and authenticity. As a result, when choosing and negotiating these suppliers, tour planners should be mindful of possible issues that arise when the contracts are finalised. Once fruitful negotiations have taken place, contracts (both national and international) are drawn up with these vendors. Getting a letter of contract, particularly one with penalty clauses for non-performance or performance to a lower level than that agreed to in the contract, is usually one of the best ways to ensure that the vendor's performance will be at least acceptable. As a result, the primary goal of negotiations is to arrive at the most competitive price while maintaining a satisfactory quality-price ratio. • Tour Costing: 152 CU IDOL SELF LEARNING MATERIAL (SLM)
Understanding the meaning and procedures of tour management in assessing the monetary value of a tour package is critical. In layman's terms, the word \"cost\" refers to the overall cost of transforming individual ingredients into a tour package. Since a travel company does not produce a tourism product (tour package), it must assemble or buy individual ingredients/components from different tourism suppliers in order to create the tour package. As a result, the cost of a tour package may be calculated based on the needs of customers, the industry, or organizational strategies. As a general rule, the components that make up the overall cost of a tour package can be divided into many categories, including air travel, lodging, local arrangements, payroll, analysis, publicity, and other expenses. In addition, the cost sheet is intended to display the overall cost/cost structure as well as the breakdown of individual cost components. It demonstrates how the profit margin should be calculated. There is no particular costing strategy used in the tour operator industry today. However, based on current costing procedures, the following step-by-step technique commonly used in the tour operator industry can be visualized. There are several phases in the costing process. Even if these measures are not normal or generic, they can be changed/modified to suit the tour company's specific needs. However, it is recommended that new tour operators take a step-by-step approach to calculating the cost of a tour package. Since cost is the foundation for determining the \"correct\" amount of profit, it is the tour planner's greatest challenge. • Financial Analysis and Pricing: After determining the cost of a package tour, the tour manager calculates exchange rates, forecasts future sale costs, and finalizes tour prices. The tour manager must finalize the price structure at least ten months prior to the tour's departure. 153 CU IDOL SELF LEARNING MATERIAL (SLM)
As a result, in addition to the normal risks of calculating the tour price in advance, tour operators must assess financial risks such as foreign exchange, which must be paid to airlines, hotels, and other destination agencies. The tour price is calculated not only by cost, but also by projected goals such as rate of return, market share (both domestic and international), and the tour package's price competitiveness. Tour pricing is a difficult decision to make, particularly when considering factors such as the degree and strength of linkages, the existence of tour ingredients, competitive tourism markets, and tourist demand issues. Furthermore, due to a variety of external and non-controllable factors such as government policies, climate change, extremism, inflation, competitive prices, consumer segments, and exchange rate volatility, to name a few. As a result, there is no standard tour pricing strategy in the tour operator industry, and the approaches/methods used differ from one tour company to the next. James M. Poynter (1993) devised a tour pricing formula and detailed the steps involved. The tour price can be calculated using the formula by adding the expected profit margin to the overall tour cost. Initially, the Tour Costing & Pricing Manager divides the break-even number of tour participants to measure the per pax break-even point tour price, then compares the estimated per person break-even point tour price (after adding the per person profit) to the budgeted expected per person tour price and makes adjustments as needed. This approach is useful for new tour planners or new tour packages to some degree, but it is ineffective for established tour operators or existing tour products/services because tour planners are forced to reduce their profit margins by the competitive climate, especially suppliers and sophisticated clients. According to Holloway (1992), specialist tour operators with a specific product can have more flexibility in this area and may set prices primarily on the basis of cost plus mark-up, while the majority of tour operators consider the prices of their rivals. 154 CU IDOL SELF LEARNING MATERIAL (SLM)
Most tour operators recoup their costs by calculating a per capita contribution, or per pax break-even rate, based on projected costs for the year and the amount of tourists expected to be transported. However, it has been observed that, in the case of specialist tour operators, rates represent consumer demand at various times of the year and that overheads, such as operating costs, are not distributed evenly. In most cases, operating costs are recouped during peak season. In practice, tour operators are increasingly favoring the following tour pricing methods for adoption. i. Tour pricing based on cost Product cost; Mark-up; Total cost/absorption cost; Rate of Return ii. Tour pricing based on the market Backward; Differential; Penetrating; Skimming Professional tour operators, according to Poynter, claim that a tour should not be conducted unless it can be profitable. It is important for new tour operators to conquer the price barrier on their first tour so that the newcomer does not continually underprice himself. Stop running tours at a loss, settling for lower quality, and underpaying yourself, as well as avoiding unfounded overpricing fears. As a result, tour operators must always bear in mind that any rupee increase in the price of their tour can exclude a percentage of potential tourists from the market. 6. Administrative Staff: Since the tour activity company is seasonal, extra staffing is needed to accommodate the increased demand. When it comes to hiring administrative staff to conduct the extra tasks, tour operators are normally straightforward about what they want, whether it's at a specific destination or at a resort. Tour operators look for people with outgoing attitudes, management skills, a sense of humor, a sense of integrity, decision-making abilities, and a passion for people, places, and travel. 155 CU IDOL SELF LEARNING MATERIAL (SLM)
Tour managers see themselves in a similar light, but they also value overseeing the whole tour, dealing with challenges, educating tour participants about the culture and language, and generating revenue. In most cases, the same employees return year after year to work for the same operator, reducing the need for preparation. Many tour operators hire mainly part-time or seasonal reservation workers, guides, resort staff, sales managers, foreign agents, and other positions. 7. Tour Package Marketing: Tour operators have emerged as the main manipulators of the tourism industry due to their strategic role among the various vendors, which includes airlines, transportation operators, hotels, and others, and their ability to incorporate the various elements of the travel industry into a relatively inexpensive and structured tour package. In both developed and developing countries, they play a critical role in deciding tourist flows to specific destinations. According to Shaw and William (1994), package tours account for approximately 80% of travel from the United Kingdom to Greece. As a result, there are now thousands of tour operating companies in the United States, India, and most Western European countries. 8. Creating a Tour Marketing Plan: The tour marketing plan is focused on the organization's goals. It's important to have a good idea of what the tour operator hopes to accomplish with their marketing strategy. In reality, before designing a marketing strategy, a tour company must first comprehend both its product and its market. For several tour operators, determining a budget is the first step in creating a tour marketing strategy. It is usually calculated as a percentage of expected expenses for the following year. However, the percentage varies from package to package and from current to new tour companies. A larger budget would be expected for new tour companies and specialised tour operators. It may be as much as 25% to 30% of the overall estimated cost. 156 CU IDOL SELF LEARNING MATERIAL (SLM)
The tour marketing strategy is usually a one- to three-year plan that directs the tour operator. It gives the tour marketing operation a consistent path based on a systematic approach to planning and execution. It also coordinates the tour company's resources in order to meet the defined goals. Tour operators recognise the value of tour marketing and establish the necessary mechanisms to create successful tour marketing strategies. It demonstrates how the tour marketing planning process can work and ensures that marketing plans are in line with the tour company's finances, time constraints, and goals. Choosing tour marketing strategy is perhaps the most difficult part of the planning process. The development of an effective strategy is directly related to the design and form of the tour, i.e., which strategy is best for inbound tours, outbound tours, or reward tours is determined by its ability to generate a significant return on investment. In the case of outbound tours, for example, tour operators use a variety of tactics to approach travel agencies. Every year, large-scale tour operators implement a few different tactics in order to maximise their profits. Such techniques are only used for a particular season/destination, while others may be used on a daily basis and checked or tracked on a regular basis. The tour operator creates an annual publicity strategy, promotional plan, sales plan, direct mail plan, and telemarketing plan after determining marketing strategies. In practise, tour operators create marketing plans in two ways: annual marketing plans, which serve as a template for the entire year, and individual tour marketing plans. All marketing campaign elements must be organised in such a way that they work together efficiently and effectively, and thus can be implemented economically. 9.Marketing Inbound and Outbound Tours: 157 CU IDOL SELF LEARNING MATERIAL (SLM)
Marketing international tours is generally more complicated and challenging than marketing domestic tours. The international tour market is primarily made up of tours that are organised and scheduled in one country and run in another. Although the tour components vary between different types of tours, the tour marketing is quite similar. As an inbound tour operator, you'll be in charge of these tours in various countries and destinations. For example, an India-based tour operator managing international inbound tours will be required to provide complete tour services as part of the package in the same way that tour operators in the United States, the United Kingdom, and France do, though the components which differ. Obtaining contracts to manage inbound tours is unusually different from obtaining contracts to handle outbound tours. In the case of outbound tours, the tour operator is typically expected to approach each and every tour participant directly or via travel agencies to sell its product (package). In certain cases, a tour operator contracts with inbound tour operators or ground operators to provide services as specified in the tour itinerary. A tour operator, on the other hand, obtains lists of tour companies and travel agencies interested in doing business in the destinations served by inbound tour operators in order to sell inbound tours. Participation in international meets, marts, conventions, and other organisations is a popular way to do this. In practise, these activities are so well-planned that international tour companies and travel agencies can buy the travel ingredients they need from various country- based inbound tour operators in order to run their tours in the coming years. As a result, it is obvious that a tour operator would either sell his tours directly to the public or via travel agencies. Whatever type of distribution he chooses, sales would be dependent on how goods are advertised in brochures produced by tour operators, as well as marketing tactics and advertising campaigns. 158 CU IDOL SELF LEARNING MATERIAL (SLM)
10.Tour Operator Brochures: The tour operator's tour brochure, which provides detailed details to convince and inspire prospective tourists to buy tourist products/services, is a critical marketing tool. Middleton (1988) shows that tour marketing is much more reliant on brochures than other types of consumer marketing. The brochure sets expectations of quality, value for money, product image, and status at the retail level, but the total tourism product is nothing more than a concept at the time of sale. The information that should be included in a tour operator's brochure is described by Holloway (1992). I. Name of the tour company in charge of the tour; II. Name of the airline, type of aircraft, and use of scheduled or charter services are all examples of transportation modes. III. Destinations, itineraries, and travel times; IV. Tour length – nights and days; V. Destination descriptions; types of lodging and meals; ground transportation services; VI. Extra charges are clearly stated in the price; VII. Unique arrangements and services are detailed; full booking conditions, including cancellation policies, are detailed; VIII. Any insurance coverage, whether optional or mandatory; IX. Documentation required for travel to the featured destinations; and X. Any health risks or vaccinations that are recommended. XI. As a result, the tour brochure is divided into parts and sub-sections. The title, date, theme, tour code, and name of the tour company are all shown on the brochure cover. The tour features, a brief itinerary, modes of transportation, types of lodging, payments, unique appeal of destination(s), payment terms, insurance, currency, records, internet address, website(s), and a self-mail flag/page on which prospective tourists can fill in tour registration details to sign up for the tour are all highlighted on the inside pages/flaps. Large tour companies, especially in the United Kingdom, the United States, India, Germany, Japan, and France, print over 1,000 copies of their tour brochures and distribute them through retail travel agencies/ground operators, as well as their own retail outlets. 159 CU IDOL SELF LEARNING MATERIAL (SLM)
Brochures are often sent directly to past clients and others found via market research, especially corporate houses. However, tour operators must make an informed decision in this regard, as approximately half of all tour brochures are discarded without being seen by the general public or corporate entities. As a result, by setting precise standards/norms, wastage can be regulated or minimised. As a result, sales managers should categorise their agents and clients before distributing tour brochures. It would undoubtedly aid in the reduction of waste as well as costs. Tour operators use a variety of promotional programmes to promote tour packages, including personal selling, sales promotion, and publicity campaigns, in addition to tour brochures. Tour promotion is a set of communication activities planned and carried out to affect the size of the clientele on which the tour operator's short and long-term revenues are dependent. It is not enough to influence just target markets; travel agents, manufacturers, travel writers and journalists, destination firms, and governments must also be influenced. Because of the variety of specialisations in the tour operation industry, tour promotion is fundamentally different from other travel products/services. As a result, in order to plan and implement the most successful promotional tools/techniques, a tour company must clearly identify marketing/promotion objectives. In practise, tour companies use the following advertising strategies to raise awareness of their tour packages and develop their brand image: Advertising, Direct Mail, Sales Promotion, Public Relations, Personal Selling, Literature, Sponsorship, Exhibitions, Travel Marts, Films and Video, Familiarization Tours, Telemarketing, Conferences and Debates, and other similar activities. Surprisingly, effective communication of tour ingredients is needed for tour package promotion. A tour package is a set of different goods and services that can only be truly appreciated at the time of consumption and cannot be replicated in exactly the same way. 160 CU IDOL SELF LEARNING MATERIAL (SLM)
As a result, in an increasingly competitive tourism industry, tour marketing success is often determined by access to information. Participation in Computerized Reservation Networks and Global Distribution Systems is important for tour operators. Tour operators now have access to information on all airlines, hotels, and related goods and facilities, as well as the ability to deliver their packages through a global delivery system network. 11.Tour Operation and Execution: A tour operator's performance is determined by how well it runs a tour. This stage is critical because it has the ability to transform promises into realities. As a result, extreme caution must be exercised to ensure that anything promised in the package tour is delivered to visitors. A tour manual is created by an experienced tour operator for the tour manager, tour escort, tour guide, Destination Company, and other providers to provide an understanding of how the tour company needs to run and handle tours. A tour manual outlines guidelines and policies for conducting tours in a more professional manner, as well as how procedures can be carried out as the tour progresses. In practise, a tour manual will contain sections on daily duties, rules, instructions for communicating with vendors and tour participants, and emergency procedures. It aids in the establishment of a norm and a reputation for the tour business, as well as providing tour managers with instructions for responding to questions about the location/destination. It means that a problem can be solved right away rather than waiting for headquarters to provide instructions. When it is managed professionally, the tour industry activities have proven that it is not only one of the most efficient, but the only effective and profitable system of running and executing tours. Surprisingly, most tour companies lack this technical approach to tour operations. 161 CU IDOL SELF LEARNING MATERIAL (SLM)
12.Post-Tour Management: This is a more important step, as it entails the preparation of many reports and their assessment. In reality, it shows the tour's performance, indicating where the tour planner can go for a comparative review of the tour's perceived targets, real accomplishment, and measuring tourist satisfaction, financial benefits, and tour package effectiveness. Many tour companies have a policy about obtaining tour managers' impressions of what tour participants (members) enjoyed and hated about the journey. In order to assess the services and products offered by these vendors, detailed vendor reports are often needed. These findings are assessed and scrutinised in order to determine whether or not there are any actual or future issues. In general, tour companies mandate that if there were severe enough vendor issues to warrant a change, the tour manager can expedite the documentation so that the next tour package would include the appropriate ingredients. The tour members' ratings of the ingredients and facilities are primarily used for two purposes. To begin with, decide how tourists feel about the tour and its components. Second, to remind tour participants of how much fun they had on the tour and to encourage them to sign up for future tours. As a result, both general and relevant questions must be included in each tour member's tour evaluation report. In most cases, each assessment answer is statistically analysed to measure a mean average that is used to determine the overall opinion of tour participants. Other statistical methods, on the other hand, may be used to produce more precise data. These results provide insight into how the next tour will be organised, developed, and promoted. 9.3 MARKET RESEARCH Marketing research may be exploratory, descriptive, diagnostic, or predictive. When a marketer has a limited or limited understanding of a situation or a limited knowledge of a particular issue, they perform an exploratory role. For instance, a business may be losing customers but is unsure why. Marketing may be used to unearth any latent thought patterns or desires that are impeding the customer's buying decision. Exploratory marketing analysis is used to conduct a preliminary evaluation of an issue or situation in order to identify study parameters. Descriptive function: Compiling, analysing, and presenting data about a marketing situation. For instance, identify who a particular customer's target market is or how this customer makes purchasing decisions. 162 CU IDOL SELF LEARNING MATERIAL (SLM)
Diagnostic Function: This study identifies and examines relationships and phenomena within collected data. Certain studies delve deeper into the subject by using both quantitative and qualitative data. This study is beneficial in a variety of circumstances and is critical because it enables marketers to discover data relationships. Data is used to forecast the outcome of a marketing decision or even a consumer intervention. For instance, businesses may use predictive functions to forecast which goods a consumer will buy in combination, when this customer will purchase, and even the effect of a sales offer. 9.4 TOUR PACKAGE FORMULATION Factors Influencing the Development of Tour Packages Generally, the package tour market entails considerable risk, a high breakeven point, a high-quality product, and competitive pricing. As a result, tour management needs extensive tour preparation and market research. However, before designing a tour, the tour planner should weigh many critical factors. These variables all have a significant effect on the tourist's satisfaction. The primary factors are as follows: I. Tour Intent II. Destination Selection III. Tourist Budget IV. Legal Requirement V. Types of Tourist Accommodation VI. Tour Duration VII. Departure and Stay Details VIII. Tour Price; Inflationary Situation IX. Tour Reference Tools X. Tour Features – Political Stability As tourism has a significant social, cultural, economic, and environmental effect on a country's profile, numerous tourism organisations are established at various levels. 163 CU IDOL SELF LEARNING MATERIAL (SLM)
Several of them put together national tourist associations and other tourism-related service providers – airlines, hoteliers, and travel agents, for example. World Organisations: Today, the United Nations World Tourism Organization (UNWTO) is the most widely recognised and leading international organisation in the field of travel and tourism. It is a United Nations specialised organisation. It serves as a global platform for tourism policy discussion and a repository of practical tourism knowledge. The International Civil Aviation Organization (ICAO) is a United Nations specialised body charged with the advancement of international civil aviation. The International Air Transport Association (IATA) is a trade association for airlines dedicated to the growth and regulation of the air transportation industry. Regional International Organizations: The Pacific Asia Travel Association (PATA) is a collaboration of governmental and non-governmental organisations dedicated to advancing the tourism industry's professionalism in Asia and the Pacific. The European Civil Aviation Conference (ECAC) is a regional organisation focused on tourism and concerned with the cooperation and coordination of European airlines. ecac-ceac.org www.ecac- ceac.org The European Travel Commission is a strategic coalition of thirty-three European national tourism organisations. National Organizations: Government involvement in tourism affects revenue generation, a country's reputation, economic stability, natural resource conservation, national security, public health, and jobs. Global tourism organisations include the Singapore Tourism Board, Tourism Malaysia, and the British Tourism Board, among others. Functions of Tourism Organizations: They generally include the following: research; information and promotion within the country; promotional activities outside the country; international relations; development of tourist areas; overall tourism policy and promotion; and support for critical tourism interests during a financial crisis. Some Prominent Tourism Organizations: United Nations World Tourism Organization or UNWTO: The UNWTO is especially committed to promoting tourism in developing countries and has pledged to contribute to the achievement of some of the United Nations' Millennium Development Goals. The United Nations World Tourism Organization reminds travellers to be educated and respectful in order to better appreciate other cultures. Pacific Asia Travel Association (PATA): This organisation was founded to promote the Pacific region as a vacation destination. It works to promote tourism in South East 164 CU IDOL SELF LEARNING MATERIAL (SLM)
Asia, especially India. Its operations are concentrated in the United States, which accounts for a sizable portion of the world's tourist traffic. European Travel Commission (ETC): The ETC was established to assist European nations in collaborating to increase tourism within Europe, to share knowledge about tourism and its marketing, and to conduct research and promotional activities. Indian Ocean Tourism Organization or IOTO: This organisation is dedicated to promoting tourism in the Indian Ocean region. It promotes the Indian Ocean region as a unique travel destination, assists members in cooperating and coordinating policies, facilitates improved transport facilities between members, and assists in reducing travel barriers. International Air Transport Association (IATA): IATA is an association comprised of almost all foreign airlines. IATA works to standardise ticketing, baggage handling, and accounting procedures; it also works to promote business, environmental and consumer concerns, as well as policy and legal oversight. International Civil Aviation Organization (ICAO): The International Civil Aviation Organization (ICAO) is a non-governmental organisation comprised of governments dedicated to promoting protection and quality in civil aviation worldwide. It develops and implements standards and procedures, as well as laws governing civil aviation and navigation plans, among other things. International tourism organisation: International Tourism Organisation AG (ITO) is a consulting firm of tourism and leisure industry specialists that provides guidance on tourism policy and master planning, growth and investment strategy, and marketing programmes. The British tourism Office represented by VISITBRITAIN. It was created by the merger of the British Tourist Authority and the English Tourism Council and is an independent public body accountable to the Department for Culture, Media, and Sport. Dubai Tourism Department: DTCM is the primary authority responsible for planning and supervising the growth of the emirate's tourism sector. Its teams are thus organised to allow its customers – the travel industry, investors, visitors (business and leisure), and other government agencies – to transact information and business with it efficiently. 165 CU IDOL SELF LEARNING MATERIAL (SLM)
Singapore Tourism Board: STPB actively promotes infrastructure growth, including the construction of hotels and tourist attractions such as the Jurong Bird Park and Sentosa, which has grown in popularity among both tourists and local residents. Additionally, the board promotes the city as a conference destination and hosts activities to draw tourists. The United States Travel and Tourism advisory Board: The United States Travel and Tourism Advisory Board (Board) advises the Secretary of Commerce on issues pertaining to the United States travel and tourism industry. South African National Department of Tourism the South African National Department of Tourism is responsible for the growth of the tourism sector and international promotion of South Africa as a tourist destination. Tourism Malaysia: Tourism Malaysia is an agency of the Malaysian Ministry of Tourism. Its mission is to place Malaysia as the region's premier destination of excellence. Its vision is to make tourism a significant contributor to the nation's socioeconomic growth. Indian Association of Tour Operators – IATO: This organisation IATO is another organisation that represents the Indian tourism industry. It accepts membership applications from tourism organisations in other countries and focuses on internationalisation of India's travel industry. It has several committees that focus on various aspects of tourism and publishes industry-related information. IATO works closely with the Government on all crucial issues affecting the Indian tourism industry, with a particular emphasis on facilitation. It works in close collaboration with all government ministries and departments, chambers of commerce and industry, and diplomatic missions, among others. It serves as a bridge between decision makers and industry, presenting both sides with a comprehensive perspective and facilitating their shared agenda of tourism facilitation. All IATO members adhere to the highest ethical standards and provide individualised support to their clients. India Tourism Development Corporation or ITDC: India Tourism Development Corporation is one of the country's largest hotel chains. The business is divided into many divisions to cater to the diverse needs of visitors. Ashok Travels & Tours, Ashok Group of Hotels, Ashok International Trade, Ashok Creativity, Ashok Institute of Hospitality and Tourism Management, and Ashok Consultancy are the company's divisions. 166 CU IDOL SELF LEARNING MATERIAL (SLM)
Maharashtra Tourism development Corporation or MTDC: Maharashtra Tourism offers adventure enthusiasts a choice of over 45 adventures spanning the state's length and breadth. It has over 550 forts to tour, including over 20 sea forts, 720 kilometres of coastline, and breath-taking views of its western ghats, which are home to abundant wildlife and camping opportunities. From water to land to air, Maharashtra offers a diverse range of adventures. MTDC vigorously promotes Maharashtra's tourist and historic attractions. Jammu and Kashmir Tourism Development Corporation: This Corporation is the government agency charged with the management of government hotels and catering establishments in Jammu and Kashmir. It was established in 1970 and now has a daily capacity of 2200 beds. The Corporation owns and operates 37 restaurants in the state. 9.5 SUMMARY • The business of package tours involves great risk, high breakeven, high-quality product, and competitive prices • Tour Operators buy a range of tourist products in bulk – airline’s seats, hotel rooms, coach services. They ‘package’ them for subsequent sale to retailers or consumers. Their product is also called as Inclusive Tour Packages. • Tour management requires in-depth tour planning and market survey 9.6 KEYWORDS • HOV—High occupancy vehicle. • MTDC- Maharashtra Tourism development Corporation • ITDC- India Tourism Development Corporation • IATO- Indian Association of Tour Operators • STPB- Singapore Tourism Board 9.7 LEARNING ACTIVITY 1. Study about various tour packages provided by IRCTC? ___________________________________________________________________________ ____________________________________________________________________ 9.8 UNIT END QUESTIONS A.Descriptive Questions 167 CU IDOL SELF LEARNING MATERIAL (SLM)
Short Questions 1. What are basic responsibilities of tour operator? 2. Definition of tour operator? 3. Describe on UNWTO. 4. Describe the function of PATA 5. What is meant by Diagnostic Function: in market research? Long Questions 1. Explain in detail the tour package formulation? 2. Explain in detail about Market Research 3. What is MTDC? 4. Before entering the tourism industry, what are all the steps a tour operator takes conceptually? 5. What are all the information that should be included in a tour operator's brochure which are described by Holloway? B. Multiple choice questions 1. Explanatory marketing research is used for-------examination a. Secondary b. final c. Preliminary d. Middle 2. _____________is one who buys the individual elements in the travel product on his own account and combines them in such a way that he is selling a package travel, the tour, to his clients. a. Travel agency b. Tour operator c. Customer d. None of these 168 CU IDOL SELF LEARNING MATERIAL (SLM)
3.__________ pricing in tourism occurs, when a company sells product or service at two or more prices. a. Promotional b. Discriminatory c. Mark -up d. Follow the leader 1. Visit to witness rich flora, fauna and natural attractions of a particular place is considered as __________ tourism product. a. Dark b. MICE c. Religious d. Eco 2. ________ of tourism Products is one of the important features of Tourism industry. a. Independence b. Interdependence c. Irrelevance d. Conflicts 3. Customers‟ relative perception is one of the ----_factors influencing pricing of tourism products. a. Internal b. External c. Unrelated d. Unimportant 4. The most basic level of tourism product is called _______ product. a. Augmented b. Expected c. Core d. Potential Answer 1-c,2-a,3-b,4-d,5-b,6-b, 7-c 9.9 REFERENCES Reference Books 169 CU IDOL SELF LEARNING MATERIAL (SLM)
• 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 170 CU IDOL SELF LEARNING MATERIAL (SLM)
UNIT 10: TOUR OPERATOR-OTHER FUNCTIONS Structure 10.0 Learning objectives 10.1 Planning a tour itinerary 10.2 Summary 10.3 Keywords 10.4 Learning activity 10.5 Unit end Questions 10.6 References 10.0 LEARNING OBJECTIVES After studying this unit, the student will be able to • Identify the concept of principles of liaison officer. • Recognises the duties and responsibilities of liaison officer • Explain about planning a tour package 10.1 PLANNING A TOUR ITINERARY STEP 1: Research other tours in the marketplace When creating an itinerary for your tour, meticulous planning is needed. A beneficial exercise is to take a tour that is comparable to the one you are developing and to obtain copies of other tour brochures for comparison. 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: Name your tour STEP 3: Map out the duration, frequency and departure details • When will your tour depart? • When will your tour return? • How often will the tour operate? • Where will the central departure point be? • Will you offer accommodation pick up? STEP 4: List the major locations and tour highlights 171 CU IDOL SELF LEARNING MATERIAL (SLM)
Where will your tour travel to? What are the main locations and highlights that visitors are going to experience? STEP 5: Research tour content and draft commentary List the major subjects you wish to cover in your commentary, such as flora, fauna, history, and culture, as well as the major points to remember about each of these subjects and the sources you may use to gather details. STEP 6: List any 3rd party activities, attractions, entrance fees and inclusions List any activities offered by other companies or entrance fees and determine if they will be included in your tour price or offered as extras. Step 7: Organise suppliers for meals Which meals - morning and afternoon tea, lunch, or dinner - will you provide during your tour? You may wish to prepare meals yourself or arrange for them to be prepared for you by a restaurant, roadhouse, hotel, or farm. If you want to make your own meals, you must ensure that you have proper knowledge of food handling, food supplies, and cooking facilities. Additionally, you can need to obtain approval for food handling from your city council and adhere to health department regulations. STEP 8: Organise accommodation approvals (if required) Whether driving through, stopping for meals, or visiting attractions, it is important that you obtain written permission from the property owner before entering any private property. If you want to drive via Parks and Wildlife property, you must apply for a Commercial Operator's Licence. Step 9: Perfect your timing It is important to plan your tour itinerary precisely in order to ensure that you arrive on time for activities and meal stops and return to your starting point on time. Create a table detailing the start, end, and length of each venue, attraction, or operation. Step 10: Test drive your itinerary It is important to conduct many 'dry runs' of your itinerary to ensure the timing is correct. Additionally, it is a very good idea to allow individuals who have some experience of the industry and are willing to provide positive feedback to do so. The following elements are critical for planning, designing, marketing, and selling, as well as for achieving success and acceptance. Accommodation 172 CU IDOL SELF LEARNING MATERIAL (SLM)
Accommodation is a significant component of package tours, accounting for a sizable portion of the overall cost. Housing may be primary or supplemental in nature. The category star hotels, resorts, corporate hotels, and international hotels are the primary service providers. They are traditional lodging operators that provide room service, food, and ancillary services. Additional service providers include lodges, homestays, guest houses, bungalows, and service apartments. Depending on the size of the community kit, operators incorporate the appropriate type of hotel accommodation. A comfortable and secure stay is often a top priority for visitors, and this factor contributes significantly to the strength of a tour package. Attractions/Sightseeing Incorporating the most desirable attractions into a package tour Sightseeing is a critical component of a package tour. The best experiences are determined by the type of sightseeing undertaken, not to mention that attractions included in a package tour must be sequenced in such a way that customer satisfaction is increased from point to point. The most exciting activities should always be mentioned last, and the itinerary should be structured accordingly. Without a doubt, sightseeing is the backbone of the entire tour package, since it serves the primary purpose of a tourist's visit to a destination. Transportation Travel is an integral part of every tour. Thus, transportation becomes another critical component of a package tour to a destination (host country or place of visit), since it entails tourists' movement and needs an appropriate mode of transport. Tourists desire secure, convenient, and fast modes of transport. Faster modes of transport allow tourists to spend more time at their destinations while also visiting more locations within a region. Air travel, railways, buses, aircraft, and automobiles are all modes of transportation. Airways: Air transportation has a major impact on the travel industry in the modern era. Package tours, especially international tours, have reaped significant benefits. This is a fast mode of transport, and the majority of international tourists prefer it. Air travel is comprised of international and domestic airline fares, as well as on-board facilities. Railways: In countries such as India and even Europe, railways are the most frequently used mode of transport for package tours. Railways link destinations that are not served by airports or are inaccessible by air. For instance, the Indrail pass, the Eurail pass, the Brital pass, and the AMTRAK pass are all reserved in advance to provide tourists with an alternate and faster mode of transport as well as a unique experience. IRCTC offers a range of package tours in India, including Bharat Darshan. 173 CU IDOL SELF LEARNING MATERIAL (SLM)
Water transport is accomplished through ships, cruise ships, and ferry services. Ferries, for example, connect Chennai, Vizag, and Kolkata to the Andaman and Nicobar Islands. Certain operators offer package tours to these islands through this mode. They provide on–board accommodations, food, beverages, sightseeing, entertainment, and a casino. Bus services: Bus services are mostly used for short-distance package tours in domestic tourism. Regional tour operators use this to transport visitors to interior destinations that are otherwise inaccessible by air or rail. Though bus services are not very common, they are an integral part of any destination tour for group tours. Post tour operation A tourist guide must prepare a post-tour report in order to assess and analyze tour activities in compliance with travel agent requirements. The Tourist Guide who is competent in post-tour information gathering, analysis, and generation of tour report sample survey questions shall be able to obtain on-tour information, review tourist input, and generate tour report sample survey questions. 1 .Obtain on-tour information Survey on New Places of Interest and Products A tour guide must be constantly on the lookout for new points of interest and products in the region. He/she must pay a visit to these new locations and product centres in order to collect as much information as possible about them, including security protocols, legal requirements, information about the product itself, and services available at the centre. A location that does not meet the national requirements for tourism must not be recommended as a tourist destination. The data collected on possible new points of interest or new tourism products can be used to promote new national destinations and tourism products. Conduct field research and evaluations Field studies and assessments are essential, even more so when considering adding a new destination to an itinerary. Among the data that must be collected and analyzed are the following: 1. security 2. geographical place 3. distance 4. accessibility 5. information about the product/location 6. costs 174 CU IDOL SELF LEARNING MATERIAL (SLM)
7. interest in tourism 8. the path to the destination 9. additional programs On-Tour Information Sources These are channels by which details about on-tour activities are collected, in order to ensure the authenticity, accuracy, reliability, and accountability of the data recorded. Logbook of Tourist Guides. The Tourist Guide Logbook is one method of capturing and recording details about a tourist guide's assignment. It aids in the collection of accurate information about the itinerary and can be used as a record in the event of inconsistency. 2 Study tourist feedback A survey is required in order to find out the feedback form the guests regarding: 1. Place of interest 2. Accommodation 3. Restaurants 4. Coaches 5. Tourist guide performance In order to carry out a survey, a tourist guide may request formatted survey form from the travel agent. If such survey forms are not available, a guide may create himself the following form. ▪ Manual tourist feedback form ▪ Online tourist feedback form such as google form 175 CU IDOL SELF LEARNING MATERIAL (SLM)
Sample of survey result The result of survey shall determine: 1. Irregularities during tour 2. Prospective tourism products 3. Tourist verbal inputs 4. Classification of situations and finding during tour 5. Gather Feedback from Tourist Tourist Feedback Form Tourist Feedback Form contained the most direct information from the tourists. It captures their satisfactions and dissatisfactions and also their constructive feedbacks that can be useful and act as a reference for the tourist guides or travel agencies’ next itinerary planning. 176 CU IDOL SELF LEARNING MATERIAL (SLM)
SAMPLE 1: PLACES VISITED SAMPLE 2: TOURISM PRODUCT 177 CU IDOL SELF LEARNING MATERIAL (SLM)
SAMPLE 3: ABOUT TOURIST GUIDE 178 CU IDOL SELF LEARNING MATERIAL (SLM)
179 CU IDOL SELF LEARNING MATERIAL (SLM)
SAMPLE 4: COMPLAINT FORM 1 Generate tour report Procedures to write post tour report a. Write the Tour Report ▪ Compile all completed forms, segregate feedback according to type ▪ Analyze the causes of complaints, find solutions and also note positive comments for things that should be continued or maintained. ▪ Make relevant and practical recommendations and suggestions. b. The tour report information should be linked back to: 180 CU IDOL SELF LEARNING MATERIAL (SLM)
▪ Policies such as on quality, values and others ▪ Vision ▪ Mission ▪ Objectives ▪ Business Development c. Submit Tour Report to the travel agents SAMPLE 5: TOUR REPORT 181 CU IDOL SELF LEARNING MATERIAL (SLM)
10.2 SUMMARY • It is crucially important to map out your tour itinerary accurately to ensure that you arrive on time for activity and meal stops and return to your original destination at a reasonable time. • A survey is required in order to find out the feedback form the guests regarding : • Place of interest • Accommodation • Restaurants • Coaches • Tourist guide performance 10.3 KERWORDS • Post tour operation-A tourist guide must prepare a post-tour report in order to assess and analyze tour activities. • On-Tour Information Sources-These are channels by which details about on-tour activities are collected, in order to ensure the authenticity, accuracy, reliability, and accountability of the data recorded. • Tourist guide performance- The result after visit • Tour operator- Function activating steps of tour visit 10.4 LEARNING ACTIVITY 1. Visit an office of the nearby travel agency/tour operator, collect as many package tour brochures as possible, study them and design a brochure of your own. ___________________________________________________________________________ ___________________________________________________________________ 10.5 UNIT END QUESTIONS A.Descriptive Questions Short Questions 1. Explain the steps involved in the tour package formulation process. 2. Planning of Itinerary tour operation –explain? 3. Write short notes on Accommodation component of a package tour. 4. List out the procedures to write post tour report 182 CU IDOL SELF LEARNING MATERIAL (SLM)
Long Questions 1. Explain the meaning, types and elements of package tours. 2. Describe the preparation of Itinerary tour operations? 3. How transportation is more important in the tour package? 4. What is meant by Post tour operation? 5. Mention the types of tour operator. B. Multiple choice Questions 1. ________ are most used form of transport for package tours in country like India a. Roadways b. Railways c. Waterways d.None 2. The LO informs agencies on the ------------ plan. a. demobilization b. mobilization c. department d. manger 3. Who Was the Inclusive Tour’s Founder a. Thomas Cook b. Dennis c. Wright Brothers d. None of These 4. Which of the following Tourism Involves People Travel Within the Country? 183 a. Domestic Tourism b. International Tourism c. Inbound Tourism d. Outbound Tourism CU IDOL SELF LEARNING MATERIAL (SLM)
5. The International Tourism’s Peak Season in India a. Oct To Feb b. Feb To March c. Oct To March d. April To September 6. -------------- Tourism Is the Time When an Individual Can Do What He Likes to Refresh a. International Tourism b. Leisure Tourism c. Recreational Tourism d. None of These 7. Who Stays At Least One Night in Collective Accommodation in The Country Visited a. Visitor b. Excursionist c. Tourist d. None of These Answers 1-a, 2-b, 3 – a,4 – a, 5 – c,6 – b, 7 – c, 10.6 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 184 CU IDOL SELF LEARNING MATERIAL (SLM)
UNIT 11: SETTING UP OF TOUR OPERATIOR UNIT Structure 11.0 Learning Objective 11.1 Introduction 11.2 Practical exercise 11.3 Basic requirement 11.4 Setting up a travel Agency & tour operation unit 11.5 Summary 11.6 Key Words 11.7 Learning activity 11.8 Unit End question 11.9 References 11.0 LEARNING OBJECTIVE After studying this unit, the student will be able to • Recognises the requirement needed to start a tour operation • Explain the concept of setting of travel agency • Analyse the evolution of travel agency business. 11.1 INTRODUCTION Tour operator is a high-risk venture. This is because a tour operator purchases plane tickets, hotel rooms, and other services in advance from the principal suppliers, and if he or she is unable to sell them, significant losses result. Thus, before establishing a tour operator company, one must be willing to accept this risk. Similarly, a tour operator must be crystal clear about the type of company they want to conduct. For instance, does the company specialise in inbound tours, outbound tours, domestic tours, or any combination thereof? This can be determined at the planning stage, while the project report is being prepared. Additionally, all businesses, large or small, must meet certain minimum standards, including a sound financial foundation, suitable facilities, skilled and knowledgeable personnel, regulatory licences, and authorization to sell on behalf of industry principals in exchange for commissions. Being a tour operator has many advantages, but it takes a lot of effort to get started. Before you can succeed in this market, there are a lot of moving parts that must come together. It can 185 CU IDOL SELF LEARNING MATERIAL (SLM)
be difficult to know where to begin with so many tools available. This post will serve as a guide as you progress through the stages leading up to and following your first tour. It will assist you in concentrating on the activities that will have the greatest effect. Owning and operating a tour company can be a rewarding and lucrative experience. But it will take a lot of effort, dedication, and enthusiasm. Discover your true calling. Knowing what you're passionate about is the first step in launching your own tour business. Building a company takes a lot of energy, which might sound corny. Furthermore, tours are rather repetitious. You'll get tired of hearing the same stories three times a day if you're not serious about it. And your visitors will take note. Nothing is more annoying than listening to a guide who appears bored. Take some time to consider what would motivate you to get out of bed every morning and share with others. If you enjoy hiking, for example, you may want to consider starting an outdoor adventure business. Examine your city. It's time to look at your city once you've decided on your passion. Is it a well-known tourist attraction? What are the current patterns? Is there something that hasn't been looked into? Although passion is significant, there must also be a chance to pursue it. A hobby is nothing more than a hobby if you don't have the ability to pursue your passion. Consult the local tourism board and see if they have any market study studies outlining the industry's opportunities and challenges. Determine who your target market is. Now that you've come up with some new tourism ideas, you'll need to figure out who your ideal customer is. Consider the types of people who would be interested in attending your trip. Do they like spending time outside? Do they like eating? Would they want to converse with the locals? What would pique their interest? Many of the choices you make later will be influenced by who your customer is. So, right now, spend some time getting to know this guy. Investigate your rivals. You're almost ready to register your tour company now that you've found your tour concept and assessed the demand in the previous portion. 186 CU IDOL SELF LEARNING MATERIAL (SLM)
Choose a name for your tour company. The first step is to give your company a name. Your name will appear on all of your paperwork. Make your name unforgettable as well as descriptive. And, most importantly, if the domain is available these days. If your name meets all of the criteria, send it to your local Registrar of Companies for approval before purchasing your domain. Create an account for your business. Now that you've decided on a name for your company, it's time to register it. There are many ways to register, including sole proprietorships, associations, and companies. Before you make a decision, weigh the advantages and disadvantages of each choice. Obtain the required permits and licences for your company. You'll need to get a local business licence after you've registered your company. To do this, contact your local government. Depending on where you operate and if you have any cars, you can need to obtain additional permits and licences. Sign up to be a tour guide. You can need to take a course to become a qualified tourist guide if you are guiding. This helps you to show visitors around a specific geographic region. Check with your local tourism board to see if you need to register as a guide. Open a bank account for your company. After you've obtained your business licence, the next step is to open a corporate bank account. This will make accounting much easier by allowing you to keep track of all of your expenditures and income. When it comes to accounting, you may want to hire an accountant or invest in accounting software. Invest in liability insurance. Get liability insurance to protect the company and yourself. This eliminates the possibility of your business being held liable for risks. Your insurance provider will assist you in determining your coverage requirements. Commercial General Liability (CGL), Property Insurance, and Accounts Receivable Insurance are all basic requirements in the tourism industry. 187 CU IDOL SELF LEARNING MATERIAL (SLM)
Make a business plan. After you've taken care of the legalities, it's time to start writing your business plan. A business plan is a document that contains all of the proposals in one place. It's your road map that will help you figure out how to proceed. Including an overview of your venture, a market analysis, collaboration opportunities, and your small business objectives. Make a marketing strategy, an operations strategy, and a product and service list. Make financial forecasts and ensure that seasonality is taken into account. It's fine if you don't have all the answers right away, but knowing what to concentrate on as you progress is beneficial. Make your own Exclusive Selling Proposition (USP). It's time to nail down your unique selling proposition now that you have your business plan in hand. This clarifies what distinguishes your tour from the competition. It's a perk that travellers can only get if they book with you, such as the fact that you offer ethical travel and tours. You should be able to sum it up in a single sentence. Calculate the cost of your trip. It's time to decide how much you'll charge now that you've assessed your market and decided the value of your tour. Although operating costs and market value are significant, the most important thing to consider is what consumers are willing to pay. Seasonality, as well as costs for children and classes, should be considered. Also, keep in mind that you should test before you find. Create a narrative for your company. Now comes the fun part: coming up with a captivating storey for your trip. Ensure that it has a clear beginning, centre, and end. Look for recurring themes that you can use in the experience. Your tour would be more memorable if you have a simple storey. The aim is for your guests to tell their friends about all of the interesting things they learned in the weeks to come. Create a tour logo. It's time to plan your brand around the storey you've built for your tour. The initial step is to design a logo. Your company's visual image is your logo. It'll appear on all of your marketing materials. Choose a straightforward design that complements your niche and tale. More company branding strategies can be found here. 188 CU IDOL SELF LEARNING MATERIAL (SLM)
Create a travel-related website You've finally decided to establish an online presence for your business. When people are looking for places to visit, this is where they can find you. You have a few choices if you don't know how to build a website: hire a contractor, hire someone in-house, or use Check front’s code-free Site Builder. Make sure your website is optimised for bookings, regardless of which option you choose. Become a member of an online reservation system. You don't just want people to find you on the internet; you want them to book and pay for reservations right there. You'll need an online booking system for this. Your booking system can also be used to process reservations made in person or over the internet. Here are a few resources to help you find the best forum for you. The ideal number. 11.2 PRACTICAL EXERCISE Establishing a tour company requires considerable effort. As in any other company, numerous pieces must come together before success can be achieved. And with so many tools available, it's often difficult to know where to begin. This post can be used as a guide to walk through the stages leading up to and following a first tour. It will assist us in concentrating our efforts on the activities that will have the greatest effect. Operating a tour company can be a satisfying and lucrative endeavour. However, it will require dedication, determination, and a great deal of passion. The first step in starting your own tour company is determining your passion. This will imply that developing a company requires a significant amount of energy. Additionally, tours are very repetitive. If anyone is really passionate, they would tyre of hearing the same stories three times a day. Additionally, a visitor will notice. There is nothing more irritating than listening to a guide who appears bored. Spend some time determining what motivates one to wake up and share with others each morning. Take a look at the city first. Is it a well-known tourist attraction? What are the prevalent trends? Is there anything left unexplored? Although passion is critical, it is also critical that there is an opportunity. Without chance, passion is merely a hobby. Consult a local tourism board to see if they have any market study studies outlining the industry's prospects and challenges. We have suggestions, but we need to sketch out our ideal customer. Consider the kinds of people who will attend the tour. Are they adventurous? Are they foodies? Can they seek out locals to speak with? What would pique their interest? Who the consumer is can influence a great deal of subsequent decisions? 189 CU IDOL SELF LEARNING MATERIAL (SLM)
Register the business with the local tourism board and learn about the conditions for establishing a tour company in that area. Here are some of the legalities that we can encounter. • Land acquisition. • Negotiate and contract with other suppliers. • Management of arrivals and departures. • Organize and plan local package tours. • Accompanying visitors. By supplying consumer data, developers stepped in to provide solutions, making itinerary development far more convenient. These software solutions are designed to streamline the process and increase tour operators' efficiency by automating numerous steps. Tourism professionals can now design itineraries in minutes thanks to the software's inclusion of five major categories: lodging, activities, transportation, fees and insurance, and destination information. Additionally, you can use a single piece of software to make hotel or travel reservations. Several key features include the ability to accept client proposals, submit booking requests, create flexible quotations, and facilitate client-tour operator communication. There are a few names to consider in the tech industry if you want to turn your business into a travel company. Unlike any other type of company, travel is conducted through wholesalers and retailers. It's strange to hear the idea of wholesale and retail travel goods for the benefit of both consumers and suppliers in the tourism industry. The primary service providers, such as hotels, resorts, ferry, cruise ship, rail, airlines, coach, and car rental, as well as businesses, rely heavily on wholesalers and retailers to sell their goods. It would be economically unviable for cruise line operators to reach out to customers in every location. For example, an airline cannot sell its goods directly to all customers; instead, it must sell tickets through Passenger Sales Agents (PSAs) or retail travel agents. The requirement for a wholesaler is critical for increasing airline ticket and hotel room sales. Hotels sell rooms directly or through retail travel agents; tour operators are referred to as wholesalers, while travel agents are referred to as retailers. Additionally, airlines and cruise lines employ General Sales Agents (GSA) to maximise sales over a specific season. A wholesaler is someone who sells tour packages or hotel rooms directly to their customers. It establishes regular and special commissions for retailers when these services are sold. For instance, British Airways has named the GSA to control the selling of airline tickets in various regions throughout India. The travel agency company is no different from any other traditional business in terms of the selling of travel goods. This lesson will define, describe, and demonstrate the functions of retail and wholesale travel agents. 190 CU IDOL SELF LEARNING MATERIAL (SLM)
A travel agency is a business that is authorised to offer to the general public services such as tours, cruises, transportation, hotel accommodations, meals, transfers, and sightseeing. This business enterprise was established with the purpose of providing services and earning income. The travel agency company makes use of many critical management techniques, including division of labour, hierarchical control, and accountability. The travel agency schedules, organises, guides, controls, coordinates, and allocates all resources necessary to get her there in a timely and efficient manner. When management's functional areas are aligned with corporate goals, a travel agency benefits after pleasing clients. For example, Thomas Cook and Cox and Kings have grown to be global leaders in the travel agency industry as a result of their consistent efforts to ensure customer loyalty and delight. A travel agency is a business company or firm that sells package tours or other customised travel arrangements to customers on behalf of airlines, hotels, tour operators, and cruise ships. Nowadays, travel agents have developed separate departments to cater to the leisure and business travel needs of their clients. In general, a travel agent advises visitors on the environment, distance, history, and do's and don'ts to observe when visiting specific destinations or towns. Currently, the majority of package vacations are offered by travel agencies. Modern travel agents never forget the legendary Thomas Cook's contribution to several creative activities and Sir Henry Lunn's (Lunn Poly) invention of skiing as a leisure sport. Travel companies should be dynamic and organised, with operational expertise, in order to handle their operations efficiently. It is critical to examine both fixed and variable costs associated with operating the company. Apart from the seasonal nature of industry, other external factors such as natural disasters, disease outbreaks, and ethnic wars all have a detrimental effect on business prospects. Travel agents book airline, train, sea, and road tickets, make hotel or guest house reservations, and arrange for taxi service, among other services. Apart from domestic airline tickets, travel agents often book international flights and exclusive business tours or conferences. On the opposite, tour operators are responsible for the organisation and management of group travel as well as FIT and GIT travel. It is referred to as the primary agent or wholesaler. It delegated responsibility for receiving and dropping off guests at airports/railway stations, as well as sightseeing plans, to ground handling officers. Notably, tour packages are primarily promoted by travel agencies by tour 19 operators. Additionally, tour operators sell specialised packages such as deep-sea diving, snorkelling, and Himalayan trekking. 11.3 BASIC REQIOREMENT In today's volatile market, travel organisations work to promote India's illustrious tourism heritage through the creation of structured package tours for inbound, outbound, and domestic tourists. Thomas Cook, American Express, and Cox and Kings are all examples of international travel companies that pioneered the travel agency and tour operation industries. 191 CU IDOL SELF LEARNING MATERIAL (SLM)
These travel agencies were instrumental in bringing this concept to light, and in the subsequent period, travel agencies in a variety of countries began operating on their model. Unlike travel intermediaries in European countries, India's travel trade sector did not experience such growth during the pre-independence period. However, during the post- independence period, the central government took some steps that made it easier for travel agents to widen the reach of their activities and business environment. Travel agents' roles are not restricted to the sale of travel-related services; they also take an active role in promoting tourism destinations. Travel agencies did not experience rapid growth and development during the first phase of the post-independence era. Following that, numerous steps were taken to increase India's share of the international tourism market, and travel originations benefited significantly from the increased flow of tourist traffic to India. In the second phase of India's liberalisation, the travel industry underwent a paradigm change, with travel organisations diversifying their operations to target the rising outbound and domestic tourism markets. Day-to-Day Requirements Travel agents are expected to have a breadth of information about a variety of destinations worldwide. Clients look to them for recommendations on the best modes of transportation, hospitality facilities that suit their needs and budget, as well as restaurants and other forms of entertainment. Additionally, travel agents are expected to understand and communicate with clients about customs regulations. This involves the acquisition of passports, visas, and, when required, vaccinations. Travel agents are expected to make all reservations on their clients' behalf. They make airline and train reservations. They book hotel rooms and cruise ship cabins. Additionally, they ensure that any special orders, such as dietary requirements, are conveyed to the client prior to their travel. Travel Agency in Bulk Wholesaling in the tourism sector is not dissimilar to commodity market wholesaling. A wholesale travel agency assembles various service components to create tour packages for FIT and GIT travellers. A wholesaler is someone who initiates the process of organising organised tours or who sells individual components directly or indirectly through franchise or retail agents. For instance, a wholesaler approved by Singapore Airlines, Taj Hotels, or Sterling Time Share Group is authorised to sell airline tickets or hotel rooms on behalf of the principal service providers. A wholesaler may be a consolidator, a tour operator, or a general sales agent (GSA). It purchases service components in bulk from a variety of vendors, packages them, and then sells or resells them. If the tour wholesaler is involved, the process begins with research and is followed by itinerary development. A tour wholesaler's primary responsibility is to price packages in a way that places the product in the market; on the other hand, a wholesale travel agent is hired to 192 CU IDOL SELF LEARNING MATERIAL (SLM)
facilitate outbound package tour sales in a specific area. Numerous retail travel agencies in smaller cities and towns are also allowed to sell outbound package tours. Retail agents are compensated on a periodic basis. However, retailer companies are responsible for promoting the items. Travel wholesalers may also sell directly to consumers through their own retail divisions. Thomas Cook, for example, operates its own network of branch offices in major cities to deliver tour packages directly to customers. Thomas Cook also employs retail travel agents. It earns money by negotiating volume discounts with major service providers such as hotels, airlines, railways, car rental companies, coach operators, and ground handlers. Travel Agency for Retail According to the Airlines Reporting Corporation (ARC), a travel agency is \"a company that quotes fares and prices, makes reservations, arranges travel tickets and accommodations, arranges travel insurance, foreign currency, and records, and accepts payments.\" A tail travel agency is one that sells directly to consumers across a network of small locations in cities and towns. The retailer is compensated on gross sales of hotel rooms, airline, rail, bus, and cruise tickets, as well as insurance and foreign exchange. Commission is the primary source of revenue for the company. A two-way marketing strategy used by a large travel agency entails commission and a mark- up price. A marked-up price is one that has been added to the expense of the tour. It is more expensive. Additionally, the market-up price is determined by the difference between the retail and wholesale prices. Retail travel agencies play a critical position since the majority of primary service providers are unable to raise sales without the assistance of retail travel agents. Thus, a mushrooming development of retail travel agents specialising in the booking of hotel rooms, airline tickets, cruise ship tickets, and so on. They consider it easy, fair, and sustainable to reach customers through retail agents or to promote the hotel or airline through retailers. Full-Service Advertising Agency It is a form of travel agent that handles a variety of different services. It could be referred to as a full-service travel agency. Apart from being an IATA or other major service provider-accredited partner, this full-service travel agent operates a transport fleet and charter flights and cruises. Commercial Advisory It is a form of non-traditional travel agency that specialises in business travel. It arranges for the rental of conference centres and show space in exhibition centres. Additionally, it arranges for the location of small and large meetings. Agency for Implants It is a form of travel agent that operates out of corporate offices pursuant to agreements. Group Incentive organisation It is a new type of travel agency company in which a specialist category of agent serves as an intermediary to handle bulk bookings for corporate employees and clients. Travel Agency on the Internet Its facilities are identical to those of an offline travel agency. It operates online through a website that is linked to a global distribution system. The OTAs use ecommerce operating processes and conduct business with their customers online. The OTAs provide information, hotel and car reservations, and seat reservations on airlines, railways, ships, and buses. They sell tour packages, customise tours, 193 CU IDOL SELF LEARNING MATERIAL (SLM)
and respond to inquiries. Payments can also be made electronically through online payment methods such as credit/debit cards, internet banking, and pay-pal. A large travel agency performs the following critical roles and responsibilities: I. It acts as a retailer, selling package tours on behalf of a wholesaler. The selling of package tours is subject to the commission rate specified in the agreement. II. It guarantees horizontal convergence in order to maximise sales. III. It acts as a liaison between tour operators and visitors, offering package tours and conducting sightseeing tours for outbound tours and inbound tours, respectively. IV. It suits the tour itinerary and has little to do with the itinerary. V. Travel agents also provide clients with destination transfer services based on the tour itinerary. VI. It serves as a local agent for the tour wholesalers, confirming and reconfirming the services reserved. VII. It resolves issues in accordance with the instructions of tour wholesalers. VIII. It negotiates commission terms and conditions with principal suppliers. It occasionally hires specialised personnel. IX. It acquires new technologies for company operations. X. It gathers input from manufacturers and customers. XI. It shares information and knowledge XII. Educational Requirements Travel agency businesses commonly require that successful job applicants possess training in subjects relevant to the industry. An educational background in geography or world history, as well as the ability to speak foreign languages, for example, is preferred of candidates in this field. Many colleges and university administer undergraduate and graduate-level curricula in travel, tourism and hospitality. Alternatively, propriety schools and junior colleges across the country offer coursework in the field. Student enrolled in these programs are trained in geography, sales and marketing. Qualitative Requirements To succeed in the travel agency market, candidates must possess a variety of skills. Travel agents-to-be must be prepared. International travel planning involves meticulous attention to detail, such as correctly filling out visa applications and understanding a hotel's cancellation policies. Failure to dot all \"I's\" and cross all \"T's\" will result in a client's financial loss, eroding the travel agent's credibility. Additionally, success in the travel agency industry necessitates excellent communication skills. Travel agents must be excellent listeners, ensuring that and client's interests and needs 194 CU IDOL SELF LEARNING MATERIAL (SLM)
are understood. Additionally, agents must be able to communicate clearly with clients about departure and arrival dates, addresses, and details about local laws and customs. To an operator, the following are required. • A manifested curiosity in travel. • Familiarity with famous vacation destinations. • Foreign language proficiency. • Outstanding leadership skills. • Effective communication skills. • Aptitude for customer service. • Organizing abilities. • Information technology expertise. Numerous legal, non-legal, voluntary, and common standards apply to organizations providing tourism services to the European market. European tour operators must adhere to stringent regulations that guarantee their customers' financial security and personal safety when travelling abroad. The Package Travel Directive is the most critical piece of legislation for European tour operators. Tour operators' liability insurance usually covers three areas: • Third-party or municipal liability insurance protects you from personal harm and physical damage caused by consumers under your care. • Contingent auto liability is extra auto liability coverage over and above the state's mandatory car insurance requirement for privately owned, rented, and non-rented automobiles. • Contingent watercraft liability protects owners, hirers, and non-owners of watercraft equipped with engines and capable of transporting paying passengers. Local tour operators who plan to partner with cruise ships must have excursion insurance. 11.4 SETTING UP A TRAVEL AGENCY & TOUR OPERATION UNIT In today's volatile market, travel organisations work to promote India's illustrious tourism heritage through the creation of structured package tours for inbound, outbound, and domestic tourists. International travel organisations and a few travel agencies were instrumental in bringing this concept to light, and in the ensuing period, travel agencies in a variety of countries began operating on their model. Unlike travel intermediaries in European countries, India's travel trade sector did not experience such growth during the pre- independence period. However, during the post-independence period, the central government took some steps that made it easier for travel agents to widen the reach of their activities and 195 CU IDOL SELF LEARNING MATERIAL (SLM)
business environment. Travel agents' roles are not restricted to the sale of travel-related services; they also take an active role in promoting tourism destinations. Travel agencies did not experience rapid growth and development during the first phase of the post-independence era. Following that, numerous steps were taken to increase India's share of the international tourism market, and travel originations benefited significantly from the increased flow of tourist traffic to India. In the second phase of India's liberalisation, the travel industry underwent a paradigm change, with travel organisations diversifying their operations to target the rising outbound and domestic tourism markets. Reservations or guest rooms, taxi services, and so on. Apart from domestic bookings, all travel agencies handle international reservations as well as special business tours or conferences. On the opposite, tour operators are primarily interested in the organisation and management of group and individual travel. It acts as the principal agent or wholesaler and transfers business to ground handling officers. The majority of tour packages are marketed by the tour operator through travel agents. Tour operators can put together customised packages that include deep sea diving, snorkelling, Himalayan trekking, and even camel safaris in the Thar Desert. Individuals are inspired by the glamorous and well-organized India package tours. Numerous Europeans had a variety of interesting perceptions and emotions about India and its cultural and natural wonders. Towards the middle of the nineteenth century, a sizable number of young Indians sailed to England, mostly for the purpose of obtaining higher education and sitting for civil service examinations; in later times, Indian political leaders travelled to England to engage in many round table discussions on resolving socioeconomic and political problems. Certain tours utilised train tickets, reserved government-run guest houses, arranged for small cars and mini coaches, and reserved horse carts and animal-driven carts to transport tourists from the railway station to their accommodations, followed by conducting sightseeing tours throughout the region. There are insufficient services and facilities such as roads, bridges, train stations, lodging, money exchangers, and public restrooms. Inadequately skilled tour guides, escorts, and interpreters. Inexperienced workers in guest houses and other dining establishments. Cab drivers who lacked important characteristics worked for travel agents The following factors contributed to the deterioration in service quality: I. Travel agents were not adequately staffed with skilled and trained personnel. II. The absence of technology was a critical impediment to the growth of the travel agency market. III. Inability of the travel agent to obtain credit for the reservation of hotel rooms and airline tickets. 196 CU IDOL SELF LEARNING MATERIAL (SLM)
IV. Lack of market diversification was also a significant factor V. Limiting the reach of revenue generating opportunities growth. In terms of integration with travel agents and tour operators for the promotion of inbound and domestic package tours, the Indian railways system was significantly underdeveloped. The topic has not been completely discussed to date. Similarly, airlines had a small involvement in collaborating with travel agents and, at the same time, there were few airlines connecting to India. Since airlines were mostly run within the domestic sky and countries refrained from extending airline services beyond the country's borders for two critical reasons: political instability and insufficient engine power for long haul journeys. The expansion of business opportunities for travel agencies and tour operators is contingent upon governments taking an active role in formulating specific strategic objectives for the tourism sector's growth. These strategies include five critical actions: elevating tourism to a national priority, increasing India's competitiveness as a tourism destination, enhancing and expanding product growth, developing world-class infrastructure, and developing successful marketing plans and programmes. This expansionist approach implies a plethora of possibilities for travel agents and tour operators. Although travel agents have benefited from the recent tourist boom, a number of them still feel threatened and concerned about the future. Airlines' commission reductions and rapid technological development, especially the increasing proliferation and usage of the Internet, have compelled the travel agent community to rethink their business models and strategies in order to ensure not only future growth, but also survival. Airlines and hotels have mostly shunned intermediaries in recent years, choosing to invest heavily in their corporate websites and deliver best-rate guarantees in an effort to court e-tourists. In response to these commission cuts, many travel agents are attempting to diversify their operations by offering additional services and also rebranding themselves as travel consultants, a transformation that occurred in developed markets many years ago. Another recent development that is wreaking havoc on independent travel agents is the consolidation of the travel distribution network, which has resulted in a substantial reduction in the number of travel agencies. Currently, the Indian travel industry is undergoing a transformation toward maturity, and adaptation and creativity are the watchwords for all stakeholders. One path forward is to embrace the concept of service fees. This approach emphasises the travel agent's advisory function as a specialist or consultant, where clients pay for the agent's advice rather than suppliers paying a fee. A consultant's position fits perfectly with the trend toward personalised travel. Today's Indian visitors are well-travelled and seek a measure of independence. They desire to fly off the beaten path while benefiting from the hassle-free preparation and expertise provided by a travel agent. This requires agents to be adaptable in order to deliver personalised travel items. Apart from adapting their business models to meet 197 CU IDOL SELF LEARNING MATERIAL (SLM)
future challenges, travel agents and tour operators also have a larger and critical role to play in tourism growth. They can work in collaboration with the Ministry of Tourism and other relevant central and state ministries to develop facilities, ensure tourist safety and protection, and disseminate information. The Ministry of Tourism certifies travel agents, tour operators, tourist transport operators, and adventure tour operators in the country in order to promote quality standards and services. In the Indian market, the travel agent served as an intermediary, connecting travellers with travel goods. Historically, travel agents were compensated with a base commission and an override commission. Pay-for-performance commissions are normally reserved for major travel agencies. The larger the travel agency, the more revenue the airline paying the override will generate. This revenue stream is typically unavailable to small travel agents, who have no influence over an airline's market share. With airline commissions decreasing rapidly, agents who adopt technology and introduce new revenue sources and service fee models can thrive and flourish. Apart from ticketing, travel agencies are also offering additional services such as travel insurance and hotel reservations. Although package tours will continue to be a mainstay of the industry, tour operators will need to increase their versatility in creating holiday packages to cater to the growing self-service market. Whether catering to inbound, outbound, or domestic markets, tour operators seem to have been the most forward thinking in terms of product and service innovation. Numerous tour operators have experienced significant financial losses as a result of COVID- 2019's negative effects. As the global population continues to recover, the industry is seeking new ways to prosper. Utilizing technological advancements is a popular method for tour operators to improve their performance, particularly in terms of software solutions. 11.5 SUMMARY • Tour operator is a risky business. This is because a tour operator buys airline's seats, hotel rooms, etc. much in advance from the principal suppliers and if he or she fails in selling them, there are heavy losses involved • Prospective travel agents must be well organized. Planning international travel requires that attention be paid to intricate details, such as properly filling out visa applications and comprehension of a hotel’s cancellation policies. • The Ministry of Tourism, Govt. of India gives away the National Tourism Awards to the tour operators such as inbound operators, adventure tour operators, domestic tour operators, MICE operators, Most Innovative Tour Operator and Tourist Transport Operators on the basis of their foreign exchange earnings and innovation in promoting 198 CU IDOL SELF LEARNING MATERIAL (SLM)
11.6 KEY WORDS • FLS - Front Line staff • GTO - Group Tour Operators • Itinerary - Plan of the trip • FIT and GIT travellers- Visiting tourist spots 11.7 LEARNING ACTIVITY 1. Find out the requirements for starting a travel Agency ___________________________________________________________________________ ____________________________________________________________________ 11.8 UNIT END QUESTION A. Descriptive Questions Short Questions 1. What is the educational requirement to run a Tour operator business? 2. What are the basic requirements of a travel agency? 3. Who is PSA? Describe their role? 4. Write short notes on Educational requirement 5. Name the 3 areas that are covered by Tour operators' liability insurance Long Questions 1. Explain the growth and development of the travel agency? 2. What are the major issues of travel agency business? 3. Explain the setting up of travel agency and tour operator? 4. List out the large travel agency critical roles and responsibilities. 5. How will you examine your city while setting up a travel agency? B. Multiple choice questions 199 1. --------organizations work towards showcasing India’s rich tourism heritage a. FHRAI b. travel c. IRCTC d. Archaeology CU IDOL SELF LEARNING MATERIAL (SLM)
2. In order to encourage quality standards and services, the ________approves travel agents, tour operators, tourist transport operators and adventure tour operators in the country a. Ministry of External Affairs b. Ministry of Tourism c. Ministry of Home affairs d. None 3. Visit to a particular place where an event is the main attraction, it is called ________ based tourism product. a. Natural b. Event c. Historic d. Religious 4. When a tourism company directs its marketing efforts at channel participants to encourage them to increase sale of tourism product, it is called _______ a. Pull Strategy b. Push Strategy c. Throw Strategy d. Catch Strategy 5. Prospecting is one of the _______ skills required in tourism. a. Sales technique b. Buying technique c. Analysing technique d. Conceptual 6. ________is one of the features of the tourism product a. Tangibility b. Separability c. Storability d. Intangibility 7. __________ pricing in tourism occurs, when a company sells tourism product at different prices in different locations. a. Promotional 200 CU IDOL SELF LEARNING MATERIAL (SLM)
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