Tour Operator Initiative (TOI)

8/9/2019 Tour Operator Initiative (TOI)

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BACKGROUND PAPERBACKGROUND PAPER

GRI/TOI MeetingGRI/TOI Meeting

Shaping the future of sustainability reporting for theShaping the future of sustainability reporting for thetour operators sectortour operators sector

Paris, Monday 2 Septe!ber 2""#Paris, Monday 2 Septe!ber 2""#


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Introduction

In preparation for the debate on 24 September 2001, participants are invited to begin considering where TourOperators are likel to have the most influence over economic, social and environment sustainabilit and what arethe most practical actions that will mitigate impacts!

To facilitate the discussion, a tpical tour operating business has been analsed with regards to its operatingmodalities and the actions and decisions that would most likel have an influence on sustainabilit!

In preparation for the 24 September meeting, please review the following sections"

1!# flow diagramHow do tour operators package holiday services?depicting the activities involved indeveloping holida packages! The ob$ective is to present how tour operators work, confirm where tour operatorscan influence sustainabilit, and to provide conte%t for the discussion on indicators for a tour operator sustainabilitreport! #n e%ample of a tpical summer tour operating programme has been used to indicate the time framesand the cross section of activities involved!

The chronological se&uence of activities'decisions involved in developing tour packages are shown in the

column of bo%es on the left! The variables and considerations involved with each activit'decision are listed in the bo%es on the right!

The activities'decisions through which tour operators can directl influence sustainabilit are highlighted in

green! The activities'decisions through which tour operators can have an indirect influence and a shared

responsibilit for sustainable business are highlighted in red!

The diagram was compiled with first hand input from the TOI(s )eporting working group as well as numerousprofessionals working on product development, contracting and marketing in the tour operating sector! Page 3

2! # table that summarises the actions/decisions that have a I!"#$ influenceon sustainability *te%t ingreen in the flow chart+, and that suggests considerations that would make the actions'decisions more

sustainable! Page %

! # table that summarises the actions/decisions that have a I&I!"#$ influenceon sustainability*te%t inred in the flow chart+, and that suggests the considerations that would make the actions'decisions moresustainable! Page '3

-urthermore, to help guide ou through our analsis of the attached tables, we have prepared a list of(uestions and considerations) This is intended as a guide to provoke thoughts and discussion for the 24September meeting! Page '% *section +,

2


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0 177"! P!-!077"

$

PLANNING AND DEVELOPMENTYear 1, June to December

%ssess pre&ious yearsperfor!ance

Ma'e !ar'eting plans for eachholiday ser&ice/brand

M%()PRO*+TP-%.SOR

)%0S)R1I)/R%.*

Proft !argins

Mar'et position

usto!et statisfaction data

*e&elop!ents in destinations

Mar'et research data

Profits and !ar'et share pro3ections

.e4 destinations to be launched

Prices, ter!s and discounts for each brand

5hat types of ser&ices are on the !ar'et

Success rates of ser&ice types/destinations

*estination research

Policy decisions on brochure production

*)STI.%TIO.S)-)TIO. Profits and re&enue forecasts

.atural/ultural characteritics

0ealth and Safety standards

Security and infrastructure

I.).TI1)/)*+%TIO.TRIPS

OR6 %G).TS%.*)MP-O7))S

S+PP-I)RS

CONTRACTINGYear 2, January to March

O.TR%TOR

%OMMO*%TIO.

O.TR%TORTR%.SPORT

ORTR%1)-I.G TO%.*ROM*)STI.%TIO.S

O.TR%TORTR%.SPORT

I.-+*)*I.P%(%G)%.*TO+R

.e4 destinations to be introduced

Policies for strengthening brand loyalty

Policies for strengthening supplier

relationships

Price

Ser&ice/brand characteristics

onditions for release of unsold roo!s

0ealth and safety standards

Insurance contacts

harter rights

*istance and ser&ing routes

onditions for cancellations/release

of unsold capacity

Insurance contacts

Speed/distances in&ol&ed

onfort and con&enience

Price rand/ser&ice characteristics

Insurance contracts


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o!p

O.TR%TORS+PP-)M).T%R7S)R1I)S8%TTR%TIO.S, -)IS+R)

S1S, G+I*)S, I.STR+TORS,

)T9:

T).*)ROR*)SIG.%.*

PRI.TI.GORO0+R)S%.*PRI)-ISTS; )*ITIO.S#, 2, $%.*

)ST%-IS0I.GT0)PRI)S%T

50I0*I)R).T0O-I*%7S)R1I)S5I--)R)T%I-)*

PACKAGINGYear 2, June to December

S+O.TR%TR)S)R1%TIO.S

%.*%--).TR) S)R1I)S

OMP-)T)O.TR%TSO

TR%.SPORT, %OMMO*%TIO.

%.*S+PP-)M).T%R7S)R1I)S

o!!ission rates

)


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?

MARKETING AND SALESYear 2 September to Year 3 September

RO0+R)SO.T0)M%R()T,

STOR%G)%.**ISTRI+TIO.TO%G).TS/ORPOR%T)R)T%I-O+T-)TS

-%+.0%G).7PROMOTIO.S,

%.*M)*I%%.*TR%*)PR)SS

%*1)RTISI.G

S)--0O-I*%7P%(%G)S/S)R1I)S *IR)T6 R)T%I-O+T-)TS,

P0O.), %.*I.T)R.)T I.*IR)T6 I.*)P).*).T

TR%1)-%G).TS

I.1OI)+STOM)RS

YEILD MANAGEMENTYear 3, May to September

)STIM%T)+.SO-*%P%IT7%.**)T)RMI.)*ISO+.TS

On ti!e deli&ery

orrelate deli&ery >uantity to sales

record

Mar'eting ob3ecti&es of each brand

*e!and and price elasticity

Strength of co!petitors

haracteristics of target !ar'ets

+nsold capacity

eha&iour of co!petitors

O&erheads

)&ents at destinations

PR)P%R) %.**ISTRI+T)TR%1)-*O+M).TS8TI()TS,1O+0)RS, TR%1)-TIPS:

HOLIDAY PACKAGES/SERVICES ARE CONSUMED


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@

EVALUATIONYear 3, September Onwards

0%.*-I.GO+STOM)R/%G).7OMP-%I.TS

)nsure pro!pt handing procedures

Type and nature of co!plaint

o!pensation policies

)1%-+%TIO.O+STOM)R

S%TIS%TIO.=+)STIO..%IR)S

%PPR%IS%-OT0)S)%SO. Re&enues and profit -e&el of custo!er satisfaction

Mar'et penetration of ne4 ser&ices and brands

Supplier issues

INTERNAL CORPORATE PROCEDURES AT:

HEADQUATERS

BRANCH AND OVERSEAS OFFICES

SUBSIDIARIES

THAT SUSTAIN AND FEED INTO ALL THE ABOVE PROCESSES

0+M%.R)SO+R)S

I.%.I%-P-%..I.G%.*I.1)ST)M.T

+SI.)SSP-%..I.G

M%R()TI.G

).1IRO.)M).T%.*SOI%-S+ST%I.%I-IT7

%*MI.ISTR%TIO.


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8) $-! -P"!0$-!1 0#$I6I$I"1 0& "#I1I-&1 $H0$ H06" 0I!"#$ I&94"" -& 11$0I&0:I4I$5

Activities a! Decisi"s Va#ia$%es a!

C"si!e#ati"s &"#Decisi" 'a(i)

S*++%ie#s a!

S*$si!ia#iesIv"%ve!

C"si!e#ati"s t,at -"*%!

'a(e t,e Activities a!Decisi"s '"#e S*staia$%e

CO.OPERATION /ITH DESTINATIONS

P%ai) a! Deve%"+'et

Ma'e product plans for

each type of holiday

ser&ice6

Pac'ages

Inclusi&e Tours

ly *ri&es

ruises

Seat only Sales

Probable ne4

destinations

*estination research

InAdepth co!parison

of alternati&e

destinations Policy decisions on

design of brochures

and nu!ber to be

printed

5hat features

sites/attractions areecologically,

archeologically and

cultural sensiti&ityB

.u!ber and reliability

of locallyAo4nedtouris! ser&ices

pro&iders9 5hat is thepotential to contract

4ith the!B

0a&e protected areas

been designatedB 5hat

special considerations

does this re>uire 4hen

it co!es to &isitor

nu!bers and acti&itiesB

5hat pre&ailing

en&iron!ent and social

concerns are li'ely to

be e


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*estination selection6

Identify ne4

destinations

Orientation site

&isits

*eter!ine

destinations to be

continued anddiscontinued

)sti!ate sales for

each destination

)sti!ate hotel

capacity at each

destination, duration

of tours and

departure dates

Profit, return and

re&enues forecasts

Potential to increase

!ar'et shares

Potential to grain

prestige through!ar'et leadership

indings of consu!er

studies

=uality and

uni>ueness of naturalD cultural

features/attractions/sit

es

Possible acti&ities D

euate 0ealth and

safety standards

%bsence of cri!e D

security assurance ree fro! political

and ci&il strife

ondition of

infrastructure

Transport

%cco!!odation

Supple!entary

Ser&ices

Inco!ing%gents 8alsocalled inbound

tour operators:

*oes the ecological

and cultural sensiti&ity

of sites/destinations

4arrant i!posingli!its on the nu!ber of

&isitorsB

To 4hat e


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SUPPLY CHAIN MANAGEMENT

C"t#acti)

Tender and confir!

contracts for the design,

production and printing of

brochures and price lists,editions #, 2, $, and 9

.u!bers to be

printed

Prices

Run on prices

*esign and

inno&ation 8photos,art 4or', !aps etc:

Paper type and 4eight

inding

Pac'aging

Pre&ious contracts

and relationship

*esigners

Printers

Include infor!ation on

the sustainability issues

in destinations, ho4tourists can contribute

to !aintain destination

>uality and ad&ise on

ho4 to ha&e a

sustainable holiday

an a reduced nu!ber

of brochures be

printedB

5hat is the current

percentage ofbrochures being

discarded/in&alid

before it reaches the

potential touristB

an price lists be

printed separately to

a&oid reprinting the

entire brochureB

an better design

reduce the nu!ber ofpages in so!e

brochuresB

an partly recycled

paper be used for so!ebrochuresB

Ma'e brochures

a&ailable on the

internet

-oo' into the

en&iron!ent policies

and practices of

printers such as preApre

technologies, choice of

paper, co!position ofin's, o&erprint

coatings, bindings and

glues etc9

In>uire into suppliers

social policies andacti&ities such as such

as !ini!u! 4ages,

benefits, 4or'place

issues child and forced

labour, co!!unity

de&elop!ent,charitable

contributions, hu!an

rights

In&ite suppliers to

i!pro&e en&iron!entand social perfor!ance

;agree on a

incre!ental

progra!!e of action

Plan 3ointA efforts to

i!pro&e theen&iron!ent and social

F


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11/17

Pac(a)i)

)stablish the prices at

4hich holiday ser&ices

4ill be retailed

osts of ser&ices

purchased o!!ission to be

paid

i


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Ite#a% C"#+"#ate P#"cesses

Ongoing internal

processes at6

0ead>uarters,

ranch and

O&erseas Offices Subsidiaries

that sustain the

de&elop!ent of holiday

pac'ages6

%d!inistration

0u!an resources

inancial planning

usiness planning

In&est!ent

)n&iron!ent

!anage!ent 8reduce

4ater, energy,transport and

!aterial inputs and4aste outputs:,

orporate social

obligations 8such ase!ployee benefits,

4or'place issues

co!!unity

de&elop!ent,

charitablecontributions etc9:

Reduce !aterial and

energy use and reduce4astes output

Meet corporate social

accountabilityobligations such assuch as !ini!u!

4ages, benefits,

4or'place issues child

and forced labour,

co!!unity

de&elop!ent,charitable contribution,

hu!an rights

#2


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3) $-! -P"!0$-!1 0#$I6I$I"1 0& "#I1I-&1 $H0$ H06"0& I&I!"#$ I&94"" -& 11$0I&0:I4I$5

Activities a! Decisi"s Va#ia$%es a!

C"si!e#ati"s &"#

Decisi" 'a(i)

S*++%ie#s a!

S*$si!ia#ies Iv"%ve!

C"si!e#ati"s t,at

-"*%! 'a(e Activities

a! Decisi"s '"#e

S*staia$%e

SUPPLY CHAIN MANAGEMENT

C"t#acti)

ontracting for

%cco!!odation9O4nership rages fro!

subsidiaries, coAfunded,

franchised, long leased or

contracted properties9

Preli!inary site

&isits

0ealth and safety

inspection Second round of site

&isits

.egotiation and

confir!ation of

bloc' boo'ings

Price

0oliday

ser&ice/brand

characteristics

acilities, le&el of

ser&ice and location

*istance fro! 'ey

features, attractions

and ser&ices

0ealth and safety

standards

usto!er

satisfaction data

onditions for the

release of unsold

capacity

Pre&ious contracts

and relationship

-ength of

contracting period

%cco!!odation6

- SelfAcatering

- %part!ents

- 1illas

- 0%-)TS9- 1illas

- Guest houses

- 0otels

- H

-a!pgrounds

0ealth and Safety

Specialists

)fforts to contract

4ith local o4ned

businesses

)uality,sustainable

purchasing andsupplier

!anage!ent, and

training9

In>uire into the

social policies andperfor!ance of

suppliers, 4hich

include !ini!u!

4ages, benefits,

4or'place issues

8such as retention,

nonAdiscri!ination:,child and forced

labour, co!!unity

de&elop!ent,

charitable

contributions, andhu!an rights9

In&ite suppliers to

i!pro&e

en&iron!ent andsocial perfor!ance ;

agree on a

incre!ental

progra!!e of action

*e&elop 3ointinitiati&es to infor!

and engage the

tourist

#$


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ontracting for Transport

to and fro! *estinations

harter rights into

destination

*istance to

destination

Speed

o!fort andcon&enience

Ser&ing routes

Internal

!anage!entpolicies

haracteristics of

holiday

ser&ice/brand

Price

Ground handling

costs

onditions for the

release of unsold

seats and thecancellation of

charters

Penalties

Pre&ious boo'ings

and relationship

Setting up the tour

operating flightplans 4ith dates and

fre>uency of

operation, airports

used, etc9,

%irline6

harters D schedule

flights

Rail charters D

scheduled 3ourneys

oaches

erry ser&ices

an rail transport be

considered as an

alternati&e to air

transport fortra&elling to shortA

haul destinationsB

In>uire into

suppliers

en&iron!ent policiesand perfor!ance

including fuel

consu!ption, fuel

efficiency, fleet,

e!issions,

haardous 4aste,4ater 4aste 4ater,

noise, purchasing

and supplier

!anage!ent,

In>uire into

suppliers socialpolicies and

perfor!ance 4hich

include !ini!u!

4ages, benefits,4or'place issues

8such as retention,

non discri!ination:,

child and forced

labour, co!!unity

de&elop!ent,charitable

contributions,

hu!an rights9

In&ite suppliers toi!pro&een&iron!ent and

social perfor!ance ;

agree on a

incre!ental

progra!!e of action

*e&elop 3oint

initiati&es to infor!

and engage tourist

#


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ontract for transport

integrated in the

pac'age/inclusi&e tour6

Transfers at

destinations and

points of origins

Transport for

inclusi&e tours

Transport for

ruises pac'ages

Transport for

e


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Pac(a)i)

SubAcontracting for

reser&ations and call

centre ser&ices

)uire into reser&ations

and call centre

contractors en&iron!ent

and social polices and

practices 8as detailedabo&e:9

INTERNAL MANAGEMENT

P%ai) a! Deve%"+'et

Plan and conduct

incenti&e/education trips

for suppliers

.e4 brands and

destinations

Policies for

strengthening

supplier/agent

relationships

Policies for

strengthening brandloyalty and

!oti&ation

Transport

%cco!!odation

Supple!entary

Ser&ices

Inco!ing %gents

8also called inbound

tour operators:

Tra&el %gents

Infor! participants

about pre&ailing

en&iron!ent andsocial issues and

response/control

efforts in place

Include &isits to sites

that pro&ide asho4case for

sustainable touris!

+se suppliers 4ith a

good trac' onsustainability

#@


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+) ;"1$I-&1 0& #-&1I"!0$I-&1

Overview of the businessA Tour Operating is about securing significant discounts through bulk purchases and using them

to make convenient and cost.effective holida packages!

/ni&ueness of each tour operating businessesA rofile" Subsidiaries, organisation and structure, and sieA i% of 3olida services offeredA hat environment and social improvements have alread been implemented5A 3ow much does current polic encourage environmental and social responsibilit amongst

management and emploees5A hat are the services and brands offered5

Importance of customer awarenessA 3ow can tour operators raise the conscious of their client base on environmentall and sociall

awareness5

A 3ow can tour operators meet the needs of clients demanding more sustainable holidaservices5

A 3ow can tour operators help facilitate consumers to follow through with their actions whentheir purses sa the 6prefer green(5

)eliance on supplier and contractor relationshipsA 3ow can tour operators access information about environmental and social policies of

suppliers5A hat kind of relationship do tour operators have with the different suppliers5A 3ow can relationships with suppliers be developed so that tour operators have more control

over indirect sustainabilit impacts5A 3ow can the act of reporting b tour operators influence and educate suppliers about their

choices and options towards sustainable practices5

A 3ow man of their suppliers are subsidiaries vs! independent companies, and over whom dothe have more influence5

A 7o tour operators have more influence over suppliers at points of origin or over suppliers atdestinations5

A ill it be more feasible to start a dialogue on sustainabilit with suppliers in certaindestinations5

A Is easier to start a dialogue on sustainabilit with suppliers of the more e%pensive andspecialist services that those at the cheaper end5

A ill the suppliers involved in certain products'brands be more receptive to issues ofsustainabilit and disclosure than others5

A 3ow man of our suppliers and contractors work e%clusivel with tour operators5 3owdependant are certain suppliers on the business tour operators bring them5

A hat environment and social actions have been implemented b suppliers to tour operators5A 3ow advanced are tour operator(s suppliers when it comes to sustainabilit5

Importance of destination characteristicsA hat destinations are forecasted to do well in the ne%t few ears5A hich destinations are e%periencing environment and social problems that are effecting *or

will soon effect+ the &ualit of tourism5A hat are the dnamics of tour operators with local authorities5A #re tour operators in contact with environment and social 89Os5A h do tour operators decide to discontinue some destinations5A hat stakeholders( voices *local and non.local+ are heard and considered when making

destination choices5

#C

Documents

Tour Operator Initiative (TOI)