CHAPTER 4 TOUR OPERATION CONCEPTS OBJECTIVES Features of

CHAPTER 4 TOUR OPERATION CONCEPTS

OBJECTIVES • Features of tour operation business • The process of travel decision making

HOW IS THE PLAN? • Why are you travelling? • Where are you travelling? • Travel Planning? • Package Tour?

INTRODUCTION • Tour operation business is an important constituent of the tourism industry. • The tour operator is a partner in the distribution channel for catering to outbound, inbound, and domestic tourists. • The business of tour operation is integrated with other tourism business as it is a linking point between the tourist and other service provider. • Consequently, the tour operation business generates ample in come sources for the host county and • Offers wide range of service and • Other ancillary services in a professional manner

ROLES OF TOUR OPERATORS • The roles of tour operators also have become diverse. They work as • Agents • Promoters & • Image builders of other destinations • With the tourism business evolving & changing with every passing year, tour operators have changed their functions and operation techniques • To adapt to the changes and to cater to the various needs of the mass tourism market.

CHANGING FEATURES OF TRAVEL • The volume of travel trade business have been growing significantly over the last decade as holidays or vacationing is a new concept • Determining the life style in the developing countries. • As a result, the size of the travel market has become so large that several attractive and value added services are offered at competitive rates to satisfy the expectation of the tourists.

CHANGING QUALITY ASPECTS OF TRAVEL • Personalized services are the hall marks of the travel trade business today. The cost factor is substituted with quality of services • Now a days, the tourists are more concerned about for having authentic experiences and for being in novel attractions.

REACH OF TOUR OPERATION BUSINESS • Considering the thriving economic conditions of the Middle East, South East Asia, Central Asia, Asia Pacific and the Western European Region, the prospects of tour operations business are certainly bright.

WHAT IS TOUR OPERATIONS ULTIMATELY • The tour operator is not only a wholesaler, buyer of bulk services, and manufacturer of package tour but also • A destination promoter who creates comprehensive itinerary and innovative packages.

MEANING • The tour operator is a vital link between tourists and the primary service providers. • It act as a destination promotion agency • Professionally tour operators are recognized as wholesalers as the • Capacity of buying in bulk and • Distributing through the channel is undertaken in a methodical and organized fashion.

THE TOUR OPERATOR BUSINESS • The tour operation business is defined as an organization firm or company which, • Buys individual travel components separately from different suppliers and • Assembles them into package tours by adding certain value and • Selling them with their own price tag to the public • Directly or through middle men (retail travel agents/ travel portal, excursion agents, etc. )

FEATURES OF TOUR OPERATION BUSINESS • Tour operators are largely responsible for making timely delivery of services and • Providing the services as per the contract • Tour companies are professionally managed with much expertise and experience in the • Planning and • Operation of pre paid and pre planned vacation packages for the general public • Directly or through franchise travel agents

HOW TOUR OPERATORS WORK? • Tour operators enter into long terms contracts with air carriers, hotels, cruise liners and other suppliers for the provision of bulk travel services. • The travel services are assembled into a package tour featuring • Round trip transportation • Ground transportation • Accommodations • Tour of local sites • Arrivals & departure transfers • Entrance fees • Cultural program

HOW TOUR OPERATORS WORK? (CONT. ) • However, package tours are offered to the general public through intermediaries who function as a retailer. • Tour operators are principal agents or wholesalers that are responsible for the provision of components of travel services of each tour package • An individual or company of entity (including all types of hotels & tourist accommodations) that offer • Tour packages & services such as transfer, lodging, meals guided tours are called Tour Operators • Tour operators are the organizer and the providers of all inclusive tours or components of package holidays.

HOW TOUR OPERATORS WORK? (CONT. ) • Tour operators can provide the services independently if • They have their own cars & coaches, hotels and other travel related services or • These services can be arranged through suppliers in the distribution channel. • Thus tour operators are recognized as manufacturer of package holidays and are popularly known as wholesalers because they are • Engaged in buying services in bulk in order to design various tour packages • The package tours are retailed through the travel agencies or directly to the clients.

TYPES OF TOUR • The tour operator is a manufacturer of tours and initiates the process of assembling varied services from the principal service providers • Tours are conducted in • Different names and • The component of services and arrangements of ground services vary from one types of tour to another.

TYPES OF TOUR BASED ON THE OPERATIONS & TYPES OF SERVICES OFFERED Independent Tour Escorted Tour Hosted Tour Incentive Tour ORGANIZED PACKAGE TOUR Group Tour Individual Tour Sponsored Tour Special Interest Tour Package Tour Escorted Tour Independent Hosted Tour Incentivized Tour Escorted Tour

INDEPENDENT TOUR • A package tour is designed for independent tourists whose, needs and priorities are different in terms of selecting destinations, accommodation and transportation. • It is a type of tour that gives enough freedom to travel. Each individual element of service (service element) can be purchased or a combination of related package tour components can be included.

INDEPENDENT TOUR (CONT. ) • The services elements of the independent tour comprise • Domestic air tickets, hotel room services, procession of travel formalities, arrival & departure transfers and sightseeing. • Other services include • Adventure sports, cultural events & health related activities that generally enhance the value of the independent tour. • Tourists generally look for independent tour for two reasons • To minimize the total cost • Ensure flexibility in the tour

ESCORTED TOUR • An escorted tour is conducted for a group as well as for independent travel. The need of the tour is to provide timely assistance and guidance to group members as they are unfamiliar with the culture & environment of the destinations. • This form of tour helps the group members in visiting places safely. • This an escorted tour is accompanied by • Qualified, well informed trained & experience & professional tour managers or guides.

ESCORTED TOUR (CONT. ) • In most cases, an escort com language interpreter accompanied the guests from the first to last leg of the tour. • Basically, escorted tours are meant for those tourists who plan to visit destination for • The first time or may be physically weak. • In an escorted tour, information and assistance to the group at • The origin • En route and • At the destinations are provided by tour escorts

ESCORTED TOUR (CONT. ) • The primary task is to coordinate hotel & flight check in, meal, arrangements & baggage handling along with interpretation during sight seeing. • They also advise group members for • During at safe places and • Use their free time for shopping and • Other health related activities • Familiarity with people of the destination and advise on the dress code is the part of the tour.

TOUR ESCORT HELPS IN • Seating arrangements in flights, trains & sight seeing coaches • Advises about smoking rules/ etiquettes in public areas. • Baggage & belongings are tagged and arranged to identify them easily. • An important aspect of escort tour is the affinity group package that comprise • Members of a community club to travel together as they are known to each other. It offers club members an opportunity to socialize

HOSTED TOUR • A hosted tour id conducted at the destination region. • The tour is called hosted tour because the local operator acts as the host to guest • It truly fosters the host guest relationship and tourists or guests try to understand the local culture and people with the help of the local agents.

HOSTED TOUR (CONT. ) • A hosted tour can be described as a form of tour which is handled by the • Ground operators or destination management agencies, authorized representatives of the wholesale tour operators that have to provide ground logistics as per the contract. • The wholesale tour operators appoints the service providers at the destinations to ensure the provision of services. • It involves the utilization of services if one operator by another due to peculiar nature of tour operation business.

HOSTED TOUR (CONT. ) • Example, Guests are transferred to the hotel and a city sight seeing tour is also conducted to them. The local tour operator is instructed to make ground arrangements much before the arrival of the group • Thus it is the duty of the local tour operator to • Offer a warm welcome at the airports or at the railways stations. Lot of personal care and attention is given in the tour as the reputation and credibility of the principal tour operator depends upon the hospitality extends to the guests.

INCENTIVE TOUR • A package tour that is fully sponsored by business firms or organizations is conducted for the employees. • The tour is an incentive for employees to enhance their performance. • It is a form of a tour that includes all essential components of a standard tour. • They are usually all-inclusive tours • Incentive tour are motivational tour which are full sponsored by the employer which is also known as Paid Holiday.

FORMS OF ORGANIZATION Tour Operators Inbound Operator Outbound Operator Domestic Operator Ground Operator

TYPES OF TOUR OPERATORS • Tour operators are classified on the basic of • The nature of the tour business and • The areas of operations of the package tour • The primary purpose of different inbound & outbound tour operators is to • Showcase the tourism attractions by offering package tours to the mass markets, • There by increasing the tourist influx to the host country

TYPES OF TOUR OPERATOR (CONT. ) • Similarity, domestic tour operators take the lead role in building • The attractive of the tourist destinations through innovative tour package. • Specialized tour operators show interest in • the off the beaten track destinations to cater the niche market

FUNCTIONS IN TOUR OPERATION BUSINESS Travel information • Counseling, Immigration, passport, Visa, Custom, Clearance & Procedure, Health & Security Checks Itinerary Preparation • Various types of itineraries of special Interest Tours Airline Ticketing & Reservation • International, Domestic Accommodation Reservation • Hotel, Motel, Resort, Others Reservation of Surface/ Sea/ Transport • Rail, Road, Sea

FUNCTIONS IN TOUR OPERATION BUSINESS Tour Package • Liaison with providers, Market Research, Costing& Pricing, Promotion of Package, Executives of Tour package Travel Insurance • Personal Baggage Foreign Currency • Currency Exchange Organizing • Seminars, Symposium, Conferences, Exhibition As Handling Agency • As handling or Excursion Agent Reservation for • Entertainment, Cultural, Programs, others

TRAVEL INFORMATION • Whatever can be the size of the tour operator, it has to provide necessary travel information to the tourists. This task is utterly difficult and very complicated. • A tour operator must give up-to-date, accurate and timely information to the tourists regarding • Destination, modes of travel, accommodation, sight seeing, shopping, immigration, health and security rules and about various permits required to travel in particular area etc. • Further the tour operator are image builders of a country. Therefore, they should present an accurate picture of various tourists resources and potentials of a country to the tourists.

AIRLINE TICKETING & RESERVATION • Airline ticket and reservation is still a major source of revenue. Air tickets (International & domestic) the travel agents/ GSA/ Online portals are selling the major share. • The computerized reservation system (CRS) has changed the entire scenario of travel industry. • Today by using CRS, the travel agency may serve a wide variety of clients and fulfill their needs and requirements. Almost 90% of the international tickets and 60% of the domestic are either issued or booked by travel agents and tour operators.

TOUR PACKAGING & COSTING • A tour package is a combination of various tourism services, transportation, accommodation, other facilities at en route an ultimate destination • A tour package has two basic components • Travel • Destination services • Tour operator prepare a package keeping in view the preference of target market which is based on different factors like • Modes of travel, client choice, income, age, group, country and region • After the identification of target market, the tour operator liaisons with services/ goods providers and enters into a contract with them.

COSTING & PRICING • The costing and pricing of tour package depend on to a large extent on the liability of tour operator, how effectively they are able to negotiate with GSA/ retail agent/ similar service providers. • The cost of a tour is calculated on the basic of what they have negotiated with the producers. Some extra cost is added for unforeseen emergencies. • Thus costing is done by adding each element of cost : • Transportation, accommodation, guiding and other expenses. • For fixing up the price of a tour package, one has to add some percentage of profit margin to the cost (based on competitiveness of the product/services)

AS A TOUR PACKAGE • Once the package is formulated and priced, it means that it is ready for sale. • The travel agent/ tour operator needs to promote its package so that targeted clients. • May come to know about it and are motivated to purchase it • Technically this is known as marketing of tour package.

TRAVEL INSURANCE • Some tour operators also features travel insurance also which covers travel and tourist’s baggage also • A travel insurance generally covers • Personal accidents • Medical & related expense • Baggage loss • Trip cancellation etc.

CURRENCY SERVICES • Tour operators which are permitted by FEMA (Foreign Exchange Management Act) to deal with foreign currency offer • Currency exchange services to intending clients • This is a very important facility to the tourists as it saves their time and energy. However for this, tour operator will charge their commission.

THE PROCESS OF TRAVEL DECISION MAKING • The process of travel decision making is based on the 1. Tourism need 2. Information gathered & deliberation 3. Decision making 4. Travel preparation

1. TOURISM NEED • Desire to travel • Reasons for travelling to as specific destination • Should be a • Independent traveler/ group traveler/ or • Should avail certain travel components only

2. INFORMATION GATHERING & DELIBERATION • • Study travel catalogues Advertisement Popularization of packages/ nation/ destination Trends / family/ travel advises

3. DECISION • Deciding a • Destination • Transportation • Restaurant • Budget • Time (how long) • Activities

4. TRAVEL PREPARATION • Bookings & reservations • Travel funds • Complying with travel formalities of the visiting country

TO SUM UP • • Travel decision making process is complex Influenced by many variables and sources The steps of the process might change Push & pull factors as well as motives come into play

MODE IN DESTINATION SELECTION • • Travel stimuli External variables Social & personal determinants of travel behavior Features of service distribution

TRAVEL STIMULI 1. 2. 3. 4. Advertising and promotion Travel literature Suggestion/reports from other tourists Travel trade suggestions and recommendations

2. EXTERNAL VARIABLES 1. 2. 3. 4. 5. Trust in touristic intermediaries Image of the destination Touristic experience Assessing objectives/ subjective risks Constraint of time. Cost, etc.

3. SOCIAL AND PERSONAL DETERMINANTS OF TRAVEL BEHAVIOR • • Socio-economic status Personality traits Social aspirations and influences Attitude towards values • Motivations • Desires/needs • Expectation • • The desire to travel Accumulation Information Comparing travelling alternatives Decision

4. FEATURE OF SERVICES DISTRIBUTION • Quantity and quality of touristic services • Types of provided travelling arrangements • Cost/ value relation • Offered attractions/ facilities • Range of travel opportunities

CONCLUSION