What Is the Role of a Tour Operator

Tour operators develop holiday packages that are high in value and low in cost for

the tourists.

A tour operator comes as a blessing for tourists, opting for an all-inclusive package

holiday. This type of package usually contains tickets to and from the destination,

transportation to and from the hotel or other place of residence and tour guide to

show around the city. The term 'all inclusive' explains that the package is available

at one price either per head or for a couple, as in the case of a honeymoon package.

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1. Role

o A tour operator is more of a service provider, providing the most convenient option

for tourists to visit, stay, as well as leave from the city. He works in coordination

with several key players of the tourism business such as airlines, hotels, restaurants

and tour guides. He is more of a middleman, who connects the customers with

these services.

Responsibilities

o A tour operator is completely responsible for the services rendered to the

customers during the holiday. He ensures that all the services mentioned in the all-

inclusive package holiday are made available to customers. For instance, it's a

common occurrence that a tourist does not get a hotel room, despite making

reservations through travel agents or other means. A tour operator ensures that

such a situation does not arise. He is also responsible for conveying any delay or

cancellation of flight, as well as making alternative arrangements for stay and

departure.

Developing an All-inclusive Package Holiday

o Developing holiday packages includes organizing different services in a manner

that is affordable for the customer as well as profitable for the tour operator. For

instance, airline operators may not always be able to sell all the tickets, where

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some seats are sold to the tour operators in bulk, thus ensuring sale of tickets

indirectly. When bulk orders are placed, tour operators are able to negotiate lower

prices. This is true in case of every service related to tourism industry. This helps

the tour operator in developing holiday packages that are high in value and low in

cost for the tourists.

Use of Advertising

o Developing an effective ad campaign is an important step in developing holiday

packages. This is because a well marketed product is obviously likely to get a good

response from potential clients. An advertisement in the form of banner, leaflet or

brochure helps a tour operator showcase the packages in the best possible manner.

Preparation Required

o The main preparation required for creating a package holiday is to have complete

knowledge of the city for which the package is being developed. A tour operator

must be completely aware of different types of services available including

alternatives if needed. Apart from this, he must also make himself aware of

government policies and regulations with reference to tourists and travel to foreign

countries.

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Package tour

A package tour or package holiday consists

of transport and accommodation advertised and sold together by a vendor known

as a tour operator. Other services may be provided such a rental car, activities or

outings during the holiday. Transport can be via charter airline to a foreign

country, and may also include travel between areas as part of the holiday. Package

holidays are a form of product bundling.

Package holidays are organised by a tour operator and sold to a consumer by

a travel agent. Some travel agents are employees of tour operators, others are

independent.

Organised Tours

The first organised tours[citation needed] dated back to Thomas Cook who, on 5 July

1841, chartered a train to take a group of temperance campaigners

from Leicester to a rally in Loughborough, twenty miles away. By 1872 he was

undertaking world-wide tours, albeit with small groups.[1] Thomas Cook - the

company - grew to become one of the largest and most well known travel agents

before being nationalised in 1948. With the gradual decline of visits to

British seaside resorts after the Second World War, Thomas Cook began

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promoting foreign holidays (particularly Italy,Spain and Switzerland) in the early

1950s. Information films were shown at town halls throughout Britain. However

they made a costly decision by not going into the new form of cheap holidays

which combined the transport and accommodation arrangements into a single

'package'. The company went further into decline and were only rescued by a

consortium buy-out on 26 May 1972[2]

[edit]Package tours

Vladimir Raitz, the co-founder of the Horizon Holiday Group, pioneered the first

mass package holidays abroad with charter flights between Gatwick

airport and Corsica in 1950, and organised the first package holiday to Palma in

1952, Lourdes in 1953, and the Costa Brava and Sardinia in 1954. In addition, the

amendments made in Montreal to the Convention on International Civil

Aviationon June 14, 1954 was very liberal to Spain, allowing impetus for mass

tourism using charter planes.

By the late 1950s and 1960s, these cheap package holidays — which combined

flight, transfers and accommodation — provided the first chance for most people in

the United Kingdom to have affordable travel abroad. One of the first charter

airlines was Euravia, which commenced flights from Manchester Airport in 1961

and Luton Airport in 1962. Despite opening up mass tourism toCrete and

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the Algarve in 1970, the package tour industry declined during the 1970s. On 15

August 1974, the industry was shaken when the second-largest tour operator, Court

Line which operated under the brand names of Horizon and Clarksons, collapsed.

Nearly 50,000 tourists were stranded overseas and a further 100,000 faced the loss

of booking deposits.

In 2005 a growing number of consumers were avoiding package holidays and were

instead travelling with budget airlines and booking their own accommodation. In

the UK, the downturn in the package holiday market led to the consolidation of the

tour operator market, which is now dominated by a few large tour operators. The

major operators are Thomson Holidays and First Choicepart of TUI

AG and Thomas Cook AG. Under these umbrella brands there exists a whole range

of different holiday operators catering to different markets, such as Club 18-30 or

Simply Travel. Budget airlines have also created their own package holiday

divisions such as Jet2 Holidays.

The trend for package holiday bookings saw a comeback in 2009, as customers

sought greater financial security in the wake of a number of holiday and flight

companies going bust, and as the hidden costs of 'no-frills' flights increased.

Coupled with the search for late holidays as holidaymakers left booking to the last

moment, this led to a rise in consumers booking package holidays.[3]

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Dynamic packaging

Main article: Dynamic packaging

Dynamic packaging is a method that is becoming increasingly used in package

holiday booking procedures that enables consumers to build their own package of

flights, accommodation and hire car instead of a pre-defined package.[4]

United States Tour Operators Association

United States Tour Operators Association

Industry Travel

Founded 1972

Headquarters New York, New York

Website http://www.ustoa.com/

The United States Tour Operators Association (USTOA) is a 501(c) registered

nonprofit professional association representing the tour operatorindustry. Its

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members are made up of companies whose tours, vacation packages, and custom

arrangements encompass the entire globe but who conduct business in the U.S. As

a voice for the tour operator industry, USTOA represents this sector in matters

pertaining to the travel industry as a whole, both in the U.S. and abroad. Among

USTOA's goals are consumer protection and education,[1] and its high standards

and work in this area have earned USTOA the endorsement of the United States

Government's Consumer Action Handbook.[2]

USTOA member companies must meet a number of ethical and financial criteria, [3]

[4] including participation in the association’s Travelers Assistance Program, which

among other things protects consumer payments up to $1 million in case the

company goes out of business.[5][6]

Motto

Integrity in Tourism

Mission

USTOA's mission is focused on improving industry standards[7] and consumer

advocacy through the following:

Inform the travel industry, government agencies and the public about tour

operators' activities and objectives.

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Educate consumers on matters pertaining to tours and vacation packages.

Help consumers recoup financial loss arising from an Active Corporate Member's

bankruptcy or insolvency.

Help maintain a high level of professionalism within the tour operator industry.

Represent the tour operator community and cooperate with other trade

organizations and government agencies.

Facilitate and encourage tourism on a worldwide basis.

Principles

USTOA Active Corporate Members pledge to adhere to the following principles:

Ethical Conduct: Members must conduct business with competence and

professionalism, representing truthfully and accurately all facts, conditions and

requirements relating to their tours and travel packages.

Truth In Advertising: Advertising and quoting of prices must clearly show total

deliverable prices, accurately identifying facilities, accommodations and services

used. Any changes or substitutions must be communicated expeditiously to the

travel agent and/or client involved.

Ethical and Financial Responsibility: Active members' business conduct must

instill confidence in their financial stability, reliability and integrity.

Membership Categories & Standards

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USTOA has three categories of membership: Active, Associate, and Allied.

Active Corporate Members must meet the definition of a tour operator. In

addition, they must:

have 16 references from reputable travel industry organizations, plus two from

USTOA Active Members.

be in business at least three years under same ownership and/or management.

meet specific minimums in terms of passengers and/or sales volume.

carry minimum $1,000,000 of professional Travel Agent/Tour Operator liability

insurance, with worldwide coverage.

participate in USTOA's Travelers Assistance Program, which among other

requirements, stipulates that each Active Corporate USTOA member post a $1

million bond to help protect consumers in case of bankruptcy or other insolvency.

Associate Members are organizations, common carriers and suppliers of tour

products and services, other entities connected with travel not directly serving

travelers on tour itineraries. Includes Worldwide Airlines, Car Rental Companies,

Hotel/Resort/Restaurant Groups, Tourist Boards, Trade Associations.

Allied Members are carriers (other than common carriers) and suppliers whose

products or services bring them into contact with travelers on tour itineraries.

Includes Advertising & Public Relations, Airlines (Local), Airport Authorities,

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Attractions, Cruise Operators, Financial Services, Ground Tour Operators,

Independent Hotels/Restaurants/Resorts, Insurance & Medical Assistance, Legal

Services, Marketing & Travel Related Services, Media, Technology &

Reservations Systems, Trade Shows, Visa and Passport Services.

Whether you prefer to work at home or abroad, hospitality and tourism offer a

variety of opportunities to use and develop your language skills. A wide range of

casual or seasonal work is also available, which can help you develop and build

your language skills for other careers.

1.1 Product Details:

The tourism product which is mainly destination (tangible) can only be

experienced (intangible). The panoramic view of the location (destination), travel

to the destination, the accommodation & facility as well as entertainment at the

destination all forms the tourism product. Thus tourism is a composite product

combination of attraction, facilities and transportation. Each of these components

has it is own significance in the product mix and in absence of even one single

component, the product mix is incomplete.

Attraction of the destination, include:

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• Natural site: Beach resorts, hill stations.

• Places of historical interest: Monuments, archeological sites and museums.

• Events: Trade fair, musical festival, games, etc.

• Cultural attractions: History & folklore, theatre, religion, arts, etc.

Facilities compliment attraction. These make it possible for the tourist to stay &

enjoy the attraction.

• Accommodation: Hotel, hostel, campsites.

• Food: Restaurants, cafes, bars.

• Local transport: Taxis, coaches.

• Recreational facilities: Entertainment, sport activity, shopping facilities.

Accessibility is the means by which the tourists arrive at the location as without

the transportation facility the attraction is of no use.

• Infrastructure: Roads, rail, airport, etc.

• Equipment: Speed & size of the vehicle.

With increasing number of destinations, travel methods & choice of

accommodations, the firm offers these products in the form of package tours to

facilitate consumers to choose from the combinations. These package tours cater to

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varying tastes, economy, attitudes & the need for exclusive service. The idea that

service products are intangible is an important one, but increasingly firms are

trying to make their offering more tangible, and thereby increasing their

recognition amongst the target-buying group. Tangible gifts such as toiletries,

flight bags, even bath robes bearing the company’s logo or brand name.

Branding plays a very important role in tourism marketing. Hotel chains, airlines,

& travel operators in particular employ tremendous efforts to ensure that their

name is widely recognized & synonymous with quality, value etc. Product

positioning helps in identifying the images & perceptions of the tourist products as

well as tourists organizations, which match the needs of the tourist customers.

1.2 Technology Details

The tourism industry is broadly people centric. The work starting from destination

enquiry, selection, booking, ticketing, etc. everything has a human touch to it.

Even now people providing such service sit with their customer to make them

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decide on their spots. Now, with the advent of modern technologies some jobs such

as ticketing & hotel reservations are done through internet and the industry is

progressing towards medium contact.

Technology plays a major part in the promotion of a place. Better communication

facilities are one of the first prerequisites for growth in the inflow of tourists. This

has been made possible with technology. Better technologies in the field of

communication with cheaper costs have seen many remote and inaccessible areas

of the country get connected to the rest of the world. This connectivity has made

these places visible to the world.

Similarly better transportation facilities have led to a dramatic increase in the

number of tourists visiting any particular place. The presence of an airport and the

availability of frequent flights are a great convenience to any traveller.

1.3 Investments

Investments by the state:

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With a view to encourage flow of investments into development of tourism

infrastructure, the state tourism has formulated the investment subsidy scheme.This

would hinge on the scale of investments and also on the regions where the tourism

projects come up.

The micro tourism units with an investment up to Rs 25 lakh can avail an

investment subsidy of 25 per cent in special tourism zones (STZs) and 20 per cent

in other regions. For the mini tourism units with investments in the range of Rs 25-

50 lakh, the investment subsidy would be 20 per cent of the investment amount or

Rs 7.5 lakh for the projects coming up in the STZs. For setting up projects in other

regions, the mini-tourism units are entitled toan investment subsidy of 15 per cent

of the invested amount or Rs. five lakh. Similarly, the small tourism units pumping

in Rs 50 lakh-Rs one crorecan enjoy an investment subsidy up to 10 per cent of the

invested amount or Rs 7.5 lakh. In case of projects being developed in STZs, they

can avail an investment subsidy of 15 per cent or Rs 10 lakh.The medium as well

as large tourism units are also eligible for interest subsidy on term loans. The

medium tourism units who invest in the range of Rs 1-10 crore are eligible for an

interest subsidy of five per cent on term loans while the large tourism units with

investments from Rs 10-50 crore can get an interest subsidy on term loans. In case

of mega tourism projects with capital investment exceeding Rs 50 crore, the state

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government may consider a special package, excluding the tax based incentives, on

a case to case basis. The interest subsidy would be paid only for the first five years

from the commencement of commercial operations of the project.

Foreign Direct Investment:

Government of India is allowing 100% FDI in Hotels and Tourism, through the

automatic route and alsoidentified the investment opportunity of about $8-10

billion in the next 5 years in tourism sector. India hassignificant potential for

becoming a major global tourist destination. It is estimated that tourism in India

could contribute Rs.8,50,000 crores to the GDP by 2020 ( approx. 1800 million

USD) if you properly planto develop and invest on Connectivity Infrastructure,

Tourism Infrastructure, Tourism Products, CapacityBuilding and Promotion &

Marketing (WTTC report). It is estimated there is a need of around 10 BillionUS $

required for development of tourism as per the different state tourism estimates for

the next fiveyears. When you think about the long term capital requirement of all

states, it is estimated around 56billion US $ for the next 20 years.

A rapidly growing middle class, the advent of corporate incentive travel and the

multinational companiesinto India has boosted prospects for tourism. India's easy

visa rules, public freedoms and its manyattractions as an ancient civilization makes

tourism development easier than in many other countries. Inorder to attract more

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visitors, India needs to increase room supply, open further its skies to increase

aircapacity, and upgrade its airports, roads and other infrastructure to global

standards. Also tourismdevelopment needs to be pursued with a focus on

sustainability.

Though the Government of India is allowing 100%FDI in automatic route to India

in tourism sector andthere is a wide gap between the demand and supply of hotel

rooms and other tourism infrastructureprojects, we have attracted the FDI for a

volume of 660.87 million US $ which is 1.46% of the totalFDI inflow into our

country from April 2000 to December 2007.

Reasons for FDI investment in Tourism:

• Economic liberalization has given a new impetus to the hospitality industry.

• The Indian hospitality industry is growing at a rate of 15% annually. The current

gap betweensupply and demand expected to widen further as the economy opens

and grows.

• The government forecasts an additional requirement of 200,000 rooms by the turn

of the century.

• The travel and hospitality industry continues to be the sector, which has largely

profited from the fastgrowing economy of India. This has largely been due to the

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3.9 m tourist arrivals in FY06 (15%growth) over the previous period. The

compounded growth in tourist inflow over the last ten years(FY89-FY09) has been

8.2%, while in the last five years, growth stands at 9.1% per annum.

• This increase in the number of tourist arrivals in the country lifted the country’s

standing in the worldof tourist destinations. The country is ranked fourth among

the world’s must see countries. Thesector continues to face certain problems.

• The country continues to be marred by poor infrastructure facilities like poor road

management, rail and air and sea connectivity. However, the present government

in its endeavor has taken a few initiativeslike opening of the partial sky policy.

This allows private domestic airline operators to fly on theIndian skies. Some

states continue to be in political uncertainties.

• As per the 2004 findings, the total number of approved rooms by the Government

of India stands ataround 99,000 (estimated). These rooms are further classified into

various segments out of which,five star and five star deluxe hotels account for

around 27% of the total capacity, three star hotels(22%), four star (8%), two star

(9%), one star and Heritage hotels (2% each) and the rest is dividedbetween

unclassified and unapproved hotels.

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• A rapidly growing middle class, the advent of corporate incentive travel and the

multinationalcompanies into India has boosted prospects for tourism. India's easy

visa rules, public freedoms andits many attractions as an ancient civilization makes

tourism development easier than in many othercountries.

• The five star hotel segments have grown the fastest during the last five years at a

CAGR of 12%.Further, this segment can be divided into 3 sub-segments Luxury,

Business and Leisure. The growthin this segment indicates the genre of travelers

coming into the country. Over the last few years thecountry has witnessed a large

influx of business travelers in the country owing to relaxation of thegovernment’s

stand on Foreign Direct Investments (FDI) for most of the sectors in the country.

• Many foreign companies have already tied up with prominent Indian companies

for setting up newhotels, motels and holiday resorts. The entry of McDonald’s,

PepsiCo’s Kentucky Fried Chicken,Domino’s and Pizza Hut has given an

international glitz to the hospitality sector.

• It costs an average of US$50-80 million to set up five-star hotels with 300

rentable rooms in India.The gestation period is usually between three and four

years.

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Reasons for Low FDI in Indian Tourism

The following are the some of the reasons for low foreign direct investment in this

sector. They are:

• Multitude of taxes: Ours is the highest tax structure on tourism projects in

the Asia Pacific region. Multitude of central and state taxes- luxury tax,

expenditure tax - is the fundamental problem plaguing the tourism sector. There is

no national wide tax policy there by some international hotel chains are hesitating

to establish their subsidiaries in the India.

High Taxes: One of the fundamental problems plaguing the Indian tourism sector

is a multitude of Central and State level taxes, which lead to an increased cost to

the tourists. A comparison of the Corporate Tax level in India, which affects the

hospitality sector, in comparison with our neighbours, shows India’s poor

competitive positioning.

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On the indirect taxes front also, India fairs poorly as compared to competing

destinations. The followingtable and figure showcases tourism related major

indirect taxes benchmarked across comparable locations.

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• Delay in FDI Approvals & Govt. Policies: Huge delay in Foreign Direct

Investment approvals in Hotel & Tourism sector. Due to delay in approvals and

lack of guidelines in the tourism policy, the Alfred Ford’s proposed Himalayan

Sky Village is pending since last three years. If it is approved it is one of the

highest FDI in the country in tourism sector with US$ 300 million which also

provides employment to around 3000 people.

• Highest import duty on imported liquor used in hotels: Under the WTO

Negotiations for Market Access under the Agreement of Agriculture (AoA), India

had bound its tariffs at 100% for primary products, 150% for processed products

(this is the relevant category for liquor) and 300% for edible oils, except for certain

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items (comprising about 119 tariff lines), which were historically bound at a lower

level in the earlier negotiations.

With the additional duties and sales tax levied by the State Governments the cost

of alcoholic spirits sold in hotels to bonafide guests is exorbitant. The international

precedence for liquor related levies also do not substantiate the current level of

taxes. Rationalization of the tax on liquor is therefore important to make.

• Service Tax on Tour Operators: The services provided by a tour operator

typically includes a wide range of services covering transportation, boarding and

lodging arrangements, local sight-seeing and guide services, etc. which are

procured through sub-agencies. Even though 60% abatement is provided, taxation

of the gross service amount leads to double taxation and increases the burden for

the tourists.

• Inland Air Travel Tax:Air connectivity and Pricing are proven to be critical

barriers in India’s ability to become competitive in the global tourism market. In

the current context, domestic air travel is much more expensive than international

destinations located at a similar distance. The disparity between Foreign Travel

Tax (FTT) and Inland Air Travel Tax (IATT) is one of the major factors. FTT

constitutes between 2%- 3% of the ticket price while IATT effectively constitutes

12%-13% of the total ticket price, except for north-eastern states where the latter

has been exempted. The cost of domestic air travel is too high in India as

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compared to international standards. The primary reason for this is costly Aviation

Turbine Fuel, which constitutes close to 40% of an airlines operating cost. This in

turn is due to the structure of duties and levies prevalent in India. The basic

customs duty of 20% with a CVD of 16% results in a total tax of 39.2%. The

differential rates of sales tax being charged by state governments further

complicate the duty structure. This has led to increased costs to the airlines, which

in turn gets passed on to the consumer.

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1.4 OTHER POINTS (if any)

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Travel and tourism

The travel and tourism industry includes businesses such as:-

tour operators

travel agencies

business travel specialists

villa rental companies

airports

airlines

ferry operators

tourist boards

and local authority tourist departments.

If you are competent in a foreign language, you may be at an advantage for many

posts. Though a lot of visitors to the UK speak English, there is a growing

awareness in Britain that we could do more to welcome tourists if staff across the

leisure and hospitality industry had better language skills. Entry-level positions

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may not always require a degree, but language skills can be an excellent way to get

noticed and build a career.

Many companies use a tour manager to accompany groups and ensure all

arrangements throughout the trip run smoothly. Language skills would be useful

when liaising with accommodation, attractions and restaurants and knowledge of

culture, history and the country would be essential when pointing out places of

interest to the group.

Seasonal jobs are also available on cruise ships which often have all the facilities

of a town, with employees in virtually every sector, from housekeeping to

entertainment. Even some business functions such as human resources, finance and

IT can provide shipboard assignments which increase your chances to travel and

use your languages. Roles would rarely be graduate-specific and careers at sea tend

to be relatively short-lived, but these skills can easily be transferred.

Some airlines and holiday companies recruit graduates of any discipline to

graduate development programmes in departments such as marketing, finance and

information management. Foreign languages will make you more effective,

particularly in areas involving direct contact with customers or overseas

companies. Outside the graduate programme, staff with languages might work in

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air terminals, or as aholiday representative, and an additional modern language is

sometimes needed for air cabin crew.

Tourism officers develop plans to attract visitors to a specific site or region and

language skills would be useful for such roles in overseas destinations or to

promote the UK to foreign tourists. Marketing and sales skills are important in the

work, but employers are increasingly concerned with the sustainability

agenda.VisitBritain has an overseas network of outlets, from which it markets

Britain as a holiday destination. Occasionally there are vacancies for graduates

who are friendly, customer-focused and fluent in at least two languages.

Hotels and catering

Foreign language skills are not usually a requirement for work in British hotels, but

having another language may be an asset in establishments and destinations with a

high proportion of foreign guests. Applying to international groups with hotels in

several countries will increase your chances of overseas postings and language

skills would be a further advantage.

The roles most likely to use language skills are front of house, such as reception,

where excellent communication and customer care skills are essential. It is

common for hotels to hire staff from diverse backgrounds, which means language

skills and cultural awareness may also help in supervisory roles.

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Some major hotel groups and restaurant chains operate graduate training schemes,

but it is common in this industry for graduates to begin their careers in operational

roles. Direct experience, from casual jobs or university placements, is highly

valued and sometimes a pre-requisite for management training. See hotel

manager and restaurant manager.

Description of Good Practice

In 2002, First Choice, an outbound tour operator that offers

package holidays and flight bookings, developed a strategy

aimed at achieving the integration

of sustainability principles into its business processes whilst remaining

appropriate to the structure and culture of the organisation. Catalysts for this

strategy development included the commitment First Choice had made upon

becoming a member of the Tour Operators’ Initiative, as well as its participation

in the UK Sustainable Tourism Initiative. The company’s commitment to move

towards more sustainable practice is sponsored by the Managing Director of the

UK & Ireland Division, thus ensuring leadership from the top of the organisation.

With guidance and facilitation from Forum for the Future, a sustainable

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development think-tank and charity, First Choice embarked on a series of

workshops. Initially, the UK & Ireland Board Directors were involved, and

subsequently about 25 senior managers. At these workshops, the company’s

activities were mapped, and their social and environmental impacts identified and

prioritised, using the framework developed

by the Natural Step (www.naturalstep.org). These priority impacts became the

basis for the company’s Sustainable Tourism Policy (see Box 1). The actual

wording of the policy was drafted by a subgroup of the senior managers involved,

before being reviewed by the entire team, ‘signed off’ by the First Choice Group

Executive Committee and printed in the subsequent Annual Report & Accounts

Benefits

Anticipated long-term benefits of this strategy include:

• Environmental protection of the company’s core product (beaches, seawater,

landscapes, etc.);

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• Improved relations with and benefits to destination stakeholders;

• Business practices aligned with investor and consumer expectations;

• Attraction and retention of talented employees;

• Lower operating costs due to more efficient operating practices; and

• Reduced regulatory intervention.

Comments

One year after the development of the Sustainable Tourism policy, First Choice

is receiving increased interest from both internal and external stakeholders in its

sustainable tourism activities. Work is now underway to develop a formal

stakeholder engagement plan to support two-way communication on

sustainability issues. Involvement in sustainable development issues has helped

First Choice play an active role in the recent launch of the UK's Travel

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Foundation, an independent charity that will fund sustainable tourism projects

and which the company will support by facilitating a customer levy on package

holidays sold from Autumn 2003 onwards.

Description of Good Practice

The Hotelplan Swiss Group, a Swiss tour operator that

offers mainly outbound package tours and guided tours,

published an environmental report illustrating the actions

the company has taken in different operational areas to

improve its environmental performance. After the

company’s

first environmental report was released in 1998, Hotelplan decided to

produce a public report on its environmental activities, taking into account the

Global Reporting Initiative’s Sustainability Reporting Guidelines and

Performance Indicators.

The environmental report is divided into two main sections: statements, which

includes the company policy statement and letters signed by the CEO, the

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Delegate of the Board of Directors of Environmental Affairs and the Manager of

Corporate Ecology, and descriptions of activities taken in four key action areas –

product management and development, internal management, supply chain

management and co-operation with destinations. Additional information includes

the company’s goals for 2004 (see Box 1), key financial figures, a glossary and a

statement of support by another tour operator.

Among the activities described in the 2001/2002 report are:

• Product Management and Development: This section includes the results of a

study to assess the overall impact of Hotelplan’s holiday packages to Tenerife

and Crete and a report on the company’s efforts to better understand the

ecological conditions of its destinations.

• Internal Management: This section includes the results of an analysis of

environmental impacts generated at the company’s headquarters.

• Supply Chain Management: This section highlights the progress made in the

use of Hotelplan’s Environmental Award and lists award winners since

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1998.

• Co-operation with Destinations: This

section discusses the company’s actions to

support conser-vation and social

development, including details on projects

supported, goals and benefits achieved and

funds disbursed.

The analysis of Hotelplan’s environmental

performance at headquarters is supported

by:

• Quantitative data, presented as inputs

(energy and materials) and outputs

(products, catalogues, waste disposal and

outside transport) in a table that also

includes data from the biennia 1998/1999,

1999/2000 and 2000/2001, thus providing

the opportunity to verify the company’s

improvements.

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• Diagrams to help visualize the changes

in performance from 1998 to 2001, as

well as the weight of the different areas

in headquarters.

• The results of the comparative study of the

environ-mental impacts of holiday

packages in Tenerife and Crete are also

supported by diagrams, which help

visualize the different impacts.

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