10 Tour Operations Cycle

8/12/2019 10 Tour Operations Cycle

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TOUROPERATIONSCYCLE


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OBJECTIVES

Understand the different processes involve in

creating a tour package.

Learn the principles of tour costing.

Compute for tour packages


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TOUROPERATIONS

Preparation and implementation of all activities

within an itinerary, within a given time frame, within

the estimated costs, in order to meet the

expectations of the paying client.


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Planning

Contracting

Costing

Quotations

Reservations

FieldOperations

Accounting

Evaluation

THETOUROPERATIONSCYCLE


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PLANNING

Setting objectives to be achieved

Customer satisfaction

Destination or community endorsement

Financial objectives

Organizational promotion


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CONTRACTING

Process of negotiating with the suppliers for the

most favorable rates and conditions.

Contracted ratesdiscounted rates from the suppliers


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COSTING

Process of determining the costs of the various

components, activities or services included in the tour

package depending on the number of passengers

availing the package.


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QUOTATIONS

Cost + profit

Usually prepared for ad hoc package

Prepared based on a minimum number of participants in

accordance with the specific activities, inclusions and

requirements of the clients

For regular packages

Called confidential tariff which is a listing of products offered

by the tour operator with the corresponding prorated cost

and concession based on specific or projected number ofparticipant


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Boracay Package

Hotel Name 3D/2N 4D/3N

Twin Triple SingleSupp.

Twin Triple SingleSupp.

Boracay

Regency

8,900.00 7,200.00 2,300.00 10,900.00

9,200.00 3,600.00

La Carmela

de Boracay

7,900.00 6,200.00 1,400.00 9,800.00 8,200.00 2,500.00

Two

Seasons

9,000.00 8,200.00 2,500.00 11,000.00 10,000.00

4,000.00Fridays 8,900.00 7,200.00 2,300.00 10,900.0

0 9,200.00 3,600.00


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RESERVATIONS

Process of placing advanced requests for available

services at sometime in the future and obtaining

confirmation of these.


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FIELDOPERATIONS

The actual delivery of the services and all the activities

of the travelers from the moment of arrival to the time

of departure.

Shows how effectively the preparations in the office

have been done


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ACCOUNTING

Collection of payments from clients

Paying the suppliers

As much as possible, this is done in advance


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EVALUATION

Comparing the actual results with the objectives set

during planning:

Financial results through profit or lost

Customer satisfaction through feedbacks from clients


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TOURPLANNING

Developing a package that is customerfocused:

Client profile

Destination requested or proposed

Duration

Category of accommodation

Meal plan

Sightseeing or activities requested or suggested

Mode and class of transportation

Ancillary services

Guide and/or tour escort

Number of Free-of-charge (FOC)


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CONTRACTINGCONSIDERATIONS

Class/Type of Service/Room

Taxes, Insurance Fees and Service Charge

Applicable Concessions

Validity of the Contracted Rates Reservation Procedures and Conditions

Cut Off Period

Deposit Payment

Form of Payment/Credit Line


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COSTINGA TOURPACKAGE

The cost of a package is always on a per person

basis

Types of Cost in a Package

Fixed Costsremains constant regardless of the

numbers of passengers

Variable Costs - depends on the number of projected or

proposed participants


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VARIOUSCOMPONENTSOFAPACKAGE

Transportation

Cost by air, sea or land from origin to destination and

viceversa

Transportation cost by scheduled air, sea or land

transportation companies are always based on a perperson fare

Chartered transportation on the other hand is pro-rated


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PRORATEDCOST

The total cost of the vehicle is divided into a pre

determined number of passengers, not exceeding

the vehicles capacity and within its breakeven load

factor50%-60%.


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EXAMPLE

The regular fare for

ManilaBaguio City via

Victory Liner is

PHP495.00 per way and

its capacity is 50 pax.

If a group of 40 persons

chartered the bus going

to Baguio and its total

cost is PHP12,000.00per way, how much will

be the cost of each

passenger?


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TRANSFERCOSTS

Cost of transportation to and

from a destinations getaway

(airport, seaport or bus terminal)

to the lodging facilities

Can also be from one point toanother in the destination

Always prorated except if the

transfer is by regular airport

shuttle Baggage handling fee to porters

are not usually included


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SIGHTSEEINGTOURS

Combined cost of the following:

Transportation within the sites to see

Entrance fees or cost of the activities

Cost of snacks and/or meals

Cost of guides services including guides transportation,

meals and accommodation if necessary.


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ACCOMMODATION

Cost of lodging and meals served within the

accommodation facility

Depends on the number of persons occupying the

room


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COMPUTINGFORROOMRATE

Twin or Double

Shared by two people

Cost is divided by 2

Example: Twin Room Cost is USD 48.00 per night

The cost per person is USD 24.00


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Single

If a person doesnt want to share a room, there is a

single supplement charge representing the difference

between a half-twin and a single occupancy room.

Example: Single room rate at Hotel La Corona is USD42.00

USD42.00USD24.00 = USD 18.00

The single supplement is USD18.00


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Triple

Cost of a twin room plus extra bed divided by 3 persons.

Example: Extra bed in Hotel La Corona is USD 12.00

USD48.00 + USD 12.00 = USD 60.00

USD 60.00/3 pax = USD 20.00

Triple rate is USD 20.00

There is a triple reduction of USD 4.00

A rule of thumb, in most cases, the more persons use the

room, the lower the price will be.


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MEALS

Meals in accommodation establishments are

always based on fixed cost

Outside meals are usually less expensive. However

the cost of transportation to and from the hotel may

increase its price.


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TOURESCORT

Cost of in the accommodation, transportation,

meals, tours of the person accompanying the group

from origin to destination and vice versa.

Apply all applicable concessions

Always pro rate


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CONVERTINGINTOPHILIPPINEPESO

Currency fluctuates according to the economic

conditions of the origin and destination countries.

Allow a small allowance for currency fluctuation.

Documents

10 Tour Operations Cycle