TOUR OPERATIONS

cycle of preparing and implementing (or

delivering) all the activities comprising a
tour package as detailed in the itinerary,
 within a given time frame,
 within the estimated costs,
 generating the projected revenues
 in order to meet the expectations of the
paying client and attain objectives.
 TOUR OPERATIONS CYCLE
1. Tour Planning
2. Itinerary Development
 TOUR OPERATIONS CYCLE
3. Contracting Rates
4. Costing and Pricing
5. Quotations and Proposals
6. Reservations and Confirmations
 TOUR OPERATIONS CYCLE
7. Field Operations
8. Billings and Accounting
9. Evaluation
 TOUR OPERATIONS CYCLE
Tour Planning
The process of determining the objectives
to be achieved, whether these
 involve customer satisfaction,
 destination and/or community
endorsement
 organizational promotions
 financial gains
 TOUR OPERATIONS CYCLE
Tour Planning –
Customer Focused Tour Package
 client profile
 destinations requested/proposed
 duration
 category of accom
 meal plan (cont’)
 TOUR OPERATIONS CYCLE
Tour Planning –
Customer Focused Tour Package
(cont’d)
sightseeing or activities requested
mode and class of transpo
ancillary services
guide and/or tour escort services
FOC
 TOUR OPERATIONS CYCLE
Itinerary Development
the process of building an itinerary
and identifying and selecting the
best suited to provide the services
required in the tour package
 CONTRACTING RATES
Contracting is the process of
negotiating competitive rates, terms
and conditions, and tour services with
the identified suppliers.
 CONTRACTING RATES
get the best available rate,
with the most concessions,
and most favorable terms and
conditions
 CONTRACTING RATES
Important things to consider:
 Basic Inclusions
 Class/Level/Type of Service
 Taxes, Insurance Fees, Service Charges
 Applicable Concessions
 Validity of Contract
 Booking and reservation procedures
 Payments and credit line
 Taxes, Insurance Fees,
Service Charges
“net inclusive” – term used for a rate
that includes all charges
“plus-plus” (nett ++) – taxes and
service
 Concessions
Free ticket for a specified number of
full-paying tickets (e.g. 15+1)
Hotel meals are usually not
complimentary
Supplier will grant room concessions
based on the TO/TA’s track record
 Validity
Must indicate the validity of the
contract rates both in terms of time,
and markets
e.g. year round with peak/lean or high/low
seasons ( Xmas, Nyear, holy week)
Markets (Chinese, US, Japanese)
 COSTING and PRICING
Costing is the process of determining
the actual cost of a tour package by
detailing the various components of
the package.

Review:
fixed costs vs variable costs
per pax vs. per unit
 COSTING and PRICING
General steps / guidelines
1) Outline the itinerary
2) Determine the needed supplier/services in the entries
3) Indicate the costs/rates payable to suppliers
4) Determine whether fixed or variable
5) Add up total costs
6) Divide by total no. of pax (to obtain cost/pax)
7) Mark-ups / service charge / taxes / commissions
8) Determine tour package price / pax