Package Holidays: Static and Multicenter

• Package holidays (package tours or tour packages) are the combination of at least two travel components
• These components are transportation, accommodation, meal plans, sightseeing tours, tour coordinator, and tour guide services
• Convenience is the key principle of package holidays
• Package holidays are believed to be effective, less expensive, safer, comfortable, and more secure than DIY package tours
• Package holidays are divided into two types: regular and ad-hoc

Types of Package Holidays

• Static holidays are single-destination stays in a single location

• Known as all-inclusive, they include meals, beverages, snacks, facilities, and services which are included in the upfront price

• All-inclusiveness depends on the brand and market

• El Nido Resorts in Lagen Islands, Palawan offers this

• Multicenter holidays combine two or more destinations into one trip

• Tourists can see more than one place

• Magellan's Cross Tour in Cebu paired with Shangri-La's Mactan Resort and Spa is an example

• Tour/guided vacations are travel programs that happen at several destinations and come in the following forms:

• Escorted tours are prearranged travel programs led by a tour manager or leader

• Provides tourists with services and information

• Can include expert local tour guides such as the Cordillera Escorted Tour in Banaue, Batad, and Sagada

• Guided tour hosted packages let tourists travel independently with guidance from a local host

• The host is a representative or ground agent who offers meet and greet services

• They help with planning, transfers, tour guides, and ticketing such as the 7-day Palawan Tour from Puerto Princesa to El Nido

• Independent tours are for tourists who travel without a group

• Travel components depend on the tourist's profile and requests

• Includes options for sports, cultural events, and excursions like Exploring Volcanoes: Mt. Pinatubo, Taal Volcano, and Camiguin

• Tailor-made packages are designed to meet client's needs and fit their requirements

• May be more expensive

• Siquijor Island Getaway for the Dela Cruz Family is an example

Other Tour Package Types

• Hotel Accommodation Only is a hotel accommodation with breakfast
• Hotel Accommodation with Add-ons is a hotel booking with one or two add-ons (airport to hotel transfers included)
• Land Package (hotel with breakfast, transfers, and tours) is a full set land arrangement package that includes city tours
• Customized packages are for clients who have specific requests in their itinerary

According to Destinations and Tours

• Free and Easy (F&E) tour packages are single destination tours with non-compulsory day tours

• These are on a Seat-in-coach (SIC) basis (shared bus), not private arrangements

• Private arrangements incur additional surcharges

• Compulsory tours are budget tour packages arranged by tour operators that offer compulsory city tours on an SIC basis

• Clients get penalized if they opt out

• Combo tours combine two or more destinations with day tours that may or may not be compulsory

• Meetings, Incentives, Conferences, and Exhibitions (MICE) tour packages plan, book, and facilitate conferences, seminars, and other events

According to Duration of Stay

• 3 DAYS 2 NIGHTS (3D2N) is a three days and two nights tour package
• 4 DAYS 3 NIGHTS (4D3N) is a four days and three nights tour package
• 5 DAYS 4 NIGHTS (5D4N) is a five days and four nights tour package

According to Booking

• Book and buy deals cannot be reserved and must be finalized to reserve it
• Reservations deadlines can be reserved with a deadline to finalize, auto-cancel and auto-finalize

According to Meals Inclusive

• Full Board Meal Package includes breakfast, lunch, and dinner
• Half Board Meal Package includes breakfast and lunch
• Breakfast-Only Package includes breakfast

The Operating Environment

• Tour operators have to work within their environment and respond appropriately to changes
• Activities depend on the current issues/events in the country where they're based, as well as destination
• Operators align with the demand of their market and other countries

Chain of Distribution

• Package holidays are basic travel components distributed by intermediaries known as wholesalers/retailers

• Tour operators are wholesalers, and travel agencies are retailers

• Brokers work in the airline industry

• They offer accommodation and travel services and purchase in bulk to sell to other tour operators/travel agencies

• They buy large amounts of seats/rooms for a lower price to make profit

• Consolidators work in the airline industry to purchase tickets directly from airlines to resell to travel agents/consumers at discounted rates

• Level 1 distribution (direct) has tour operators sell packages directly to consumers

• Level 2 distribution has retailers selling and promoting the packages

• Commissions are given to intermediaries for product/service sold

The Need for Integration

• Horizontal integration occurs when companies buy or merge with companies on the same distribution level

• Companies offering similar products, like a tour operator buying another tour operator

• Vertical integration occurs when a company develops its operations or merges with another component from a different distribution level

• Travel agency promoting tour operator packages, or a tour operator purchasing a charter airline/hotel

• Provides control over supply and standardization of service quality through aligned competencies

• Diagonal integration occurs when businesses try to enter another service that may assist its products

• Tour Operator offering travel/vehicle insurance to support consumer package holiday