Basic Travel Components of a Tour Package PDF

TH1804 Basic Travel Components of a Tour Package A tour package is the product of tour operators that is a combination of two (2) or more travel components. A travel agent can come up with a tour package provided that the basic travel components are included, namely: transportation, meal plans (som...

TH1804 Basic Travel Components of a Tour Package A tour package is the product of tour operators that is a combination of two (2) or more travel components. A travel agent can come up with a tour package provided that the basic travel components are included, namely: transportation, meal plans (sometimes inclusive in accommodation), accommodations, sightseeing tours, tour coordinator services, and tour guide services. Meal plans or other food services may sometimes fall under accommodations, especially if the places where clients are supposed to stay are in hotels, resorts, or apartment hotels. As previously mentioned in Tour Planning, it is a fundamental element. However, not all tour packages include this, particularly the non-cost- effective ones. The basic travel components of a tour package are elaborated as follows (Claravall, 2013): TRANSPORTATION entails the movement of passengers, mail, parcels, and cargo from the point of origin to a destination point and points beyond by air, sea, or land. The four (4) types of a transportation product are passage (the transportation product for passengers), postal services (for mail), parcel (for courier services), and freight (for cargo). o Air Transportation – This transportation industry involves companies that provide scheduled air services and air taxi operators. It is divided into two (2) categories, which are as follows:  Scheduled Air Services – This service is comprised of air carriers that provide regular services on a fixed time and frequency schedules. It is also further divided into legacy carriers, such as Philippine Airlines (PAL), that provide full traditional services. There are also low-cost carriers, such as Cebu Pacific, Air Philippines, and AirAsia (Philippines), which operate both trunk routes and flights to secondary and tertiary Philippine destinations.  Air Taxis and Charter Operators – These are air transportation companies that operate aircraft of different configurations for private charters. o Sea Transportation – It includes all water transportation operators, whether saltwater or freshwater service. Here in the Philippines, this sector is divided into the following:  Dive cruises include live-aboard fleet and live-aboard motor vessels with regularly scheduled diving expeditions in the Philippines, such as Apo Explorer and Oceanic Explorer (both are under The Expedition Fleet).  Inter-island shipping is a combined resources and capabilities of two (2) shipping companies that include passage, parcel post, freight, and cargo. An example of this is 2GO Travel that supports Super Ferry and Negros Navigation.  Roll-on/roll-off, popularly known as “RoRo”, is a type of vessel that is flat-bottom with vehicular access ramps at the fore (front part) and aft (at the stern of a ship), or on both ends. It enables the carriage of passenger buses, cargo trucks, private cars, and public utility vehicles. An example of this is Star Horse Shipping Lines of Southern Luzon.  Fast craft service is provided by a sea craft that travels at speeds of about 20–25 knots, thus greatly reducing the travel time between ports. An example of this is Ocean Jet from Cebu. 06 Handout 1 *Property of STI  [email protected] Page 1 of 8  TH1804 o Land Transportation – It involves all land transportation entities, either by rail or road, from the smallest to the largest units. It is classified as follows:  Train travel is a land transport that operates and runs on a rail (e.g., Light Rail Transit [LRT] 2).  Bus travel is one of the main modes of transport in the Philippines. It has designated stopover places and bus terminals (e.g., Victory Liner).  Car rental may be chauffeur-driven or self-driven and caters to travel agencies (e.g., Avis).  Transfers are defined as transportation services from a destination’s gateway (airport, pier, or bus station) to the place of lodging and vice-versa. MEAL PLANS refer to the number of meals per day included in the tour package, whether served in the place of lodging or in a restaurant. These are classified as follows: o Full-board basis, full pension, or American plan includes all meals (breakfast, lunch, and dinner). o Half-board basis, demi pension, or modified American plan includes breakfast and lunch or dinner. o Bed-and-breakfast includes full breakfast meal only. o Continental breakfast is a light breakfast, typically consisting of coffee and rolls with butter and jam. o European plan does not include any meal. ACCOMMODATIONS include all commercial establishments that cater to the local and domestic markets. Here in the Philippines, these are mainly classified as follows: o Hotels – These are establishments found in most major urban centers that provide accommodations, meals, and other services for travelers and tourists (e.g., Manila Hotel). o Resorts – These are the popular destinations for vacations or recreations found in a semi-urban setting (e.g., Shangri-La Mactan Resort and Spa). o Other lodging establishments – These establishments are a combination of lodging with gaming or other leisure and relaxation activities (e.g., Entertainment City of PAGCOR such as City of Dreams Manila, Okada Manila, and Solaire Resort & Casino). SIGHTSEEING TOURS are a combination of transportation within the destination to sights and sites of interest, tour guide services, entrance fees, entertainment or activities and, when necessary, snacks and meals. These are classified based on duration or type of operation which are as follows: o Evening Tours – tours operated after 6:00 p.m. or 18:00 (e.g., sunset or dinner cruises). o Full-day Sightseeing – includes tours lasting from eight (8) to 10 hours and normally includes lunch. o Half-day Sightseeing – operated either in the morning or in the afternoon, inclusive of snack. o Hop-on/Hop-off Tours – organized by transportation companies using their scheduled service. Passengers board and de-board from the vehicle at designated route stops to sightsee at their own leisure, re-board to go to the next stop, and so on. o Optional Tours – sightseeing tours that are excluded in the basic tour package. A client who wants to experience it may need to pay extra, which is usually at premium rates. o Private Tours – operated exclusively for individual travelers or group of individuals, usually conducted by a multilingual-speaking tour guide. 06 Handout 1 *Property of STI  [email protected] Page 2 of 8  TH1804 o Seat-in Coach Sightseeing – the operation of guided sightseeing tours (and regular tour packages) on fixed daily schedules regardless of the number of participants. TOUR COORDINATOR SERVICES refer to individuals who travel with the clients from the point of origin and back. They also act as the tour manager or tour leader. TOUR GUIDE SERVICES are provided in connection with sightseeing at the destination and occasionally during the meet and assist or transfer services. Creating a Tour Package With the aid of the basic travel components, a travel agent can be guided with the following steps in creating a tour package (VETS Tours, 2019): 1. Choose or identify who will be your target customers/clients. Tour packages would vary depending on the target customers/clients along with their travel needs. For example, a tour package for a family may highlight staycation activities; whereas, for employees, it may be more of a team-building type. 2. Match your target customers with the right service supplier/s or business partner/s. This is where the basic travel components are scrutinized to ensure that the target customers will be matched with the service supplier/s or business partner/s who can provide most of their travel needs. Examples of this could be a hotel for accommodation purposes; a car rental company for transportation; and a restaurant for meal plans. There are instances where all of these services can be supplied by the same supplier or business partner. Otherwise, services can be from different suppliers or business partners. 3. Negotiate a contract with the service supplier/s or business partner/s. This is where the rates on how much the services to be provided by the supplier are discussed. There are instances when a travel agency or tour operator has a one-year contract with one of their service suppliers. Otherwise, services are being sold in wholesale depending on the number of customers requiring the services for their tour package. 4. Create a draft of your tour package. This is where the tour package can be created while putting the following in consideration: a. Title or name of the tour package – The name of the tour package should highlight the destination where the tour would take place. Example: Ilocos getaway package b. Duration of the tour – This is where the number of days and nights are identified. For example three (3) days/two (2) nights. c. Travel dates – Check if the tour package has blackout dates. These are dates when travel rewards and other special discounts or promotions are not available. These are usually applicable on major holidays or peak travel seasons. Example: Christmas season d. Tour package inclusions – This is where the travel needs of your target customers should be matched with the arranged services with suppliers or business partners. Pax account means that the service is to be paid by the customer/client separately. e. Tour package costing – This is where the overall cost of the services that has been arranged for the tour package and the maximum number of customers that the tour package can accommodate is checked. 06 Handout 1 *Property of STI  [email protected] Page 3 of 8  TH1804 f. Competitive pricing – This is where the competitor’s tour package pricing is checked. The tour package should stay competitive to stay on course. Consider all other elements as well, such as the total revenue or commission, entrance fees, government taxes, guide fees, and meals and accommodation of the driver. 5. Put your contact details and your brand. A company logo, along with the contact details, helps the target customers/clients remember the company and know how to contact if they have further concerns or inquiries. Tour Package Variables Regardless of the type of package, whether regular or ad hoc, tour packages may vary according to the following (Claravall, 2013): Duration – the number of days and nights included in the tour package. Normally, three (3) days would mean two (2) nights. However, when a package crosses the international dateline or spends an overnight inside an aircraft, the number of nights in the package is the same as the number of days. Destination – A package may be for a single destination or multiple destinations. This is where tours, activities, and events take place. Category of Accommodations – There are five (5) levels of accommodation standards, ranging from one (1) to five (5) stars, applicable to hotels, resorts, and apartment hotels. o One star – These enterprises appeal to budget-minded travelers. There is a limited range of facilities and services. o Two star – These enterprises appeal to the tourists seeking more than basic accommodation. They offer expanded facilities and a higher level of comfort. o Three star – These enterprises offer an excellent level of accommodation. There are more spacious public areas, higher quality facilities, and a greater range of services. o Four star – These properties are upscale in all areas. Accommodation is refined and stylish. Service is responsive and often includes an extensive array of facilities. o Five star – These properties reflect the characteristics of luxury and sophistication. The facilities are world class in every manner, and the meticulous service exceeds all guest expectations. Mode and Class of Transportation – This refers to air, sea, or land travel. Class refers to the grade of service, facility, and amenities offered to the passengers. o Air Travel (Airline) is classified as the following:  Economy Class is also known as coach, standard, main cabin, or cattle class. It offers the narrowest seats and smallest legroom (space where a seated person can put his/her legs).  Premium Economy Class offers wider seats and more legroom than an economy class. It is also cheaper than business or first class. 06 Handout 1 *Property of STI  [email protected] Page 4 of 8  TH1804  Business Class has wider seats than that of the premium economy class which can be reclined to flat beds.  First Class is the most luxurious and expensive class among air travel classes. o Sea Travel (Cruise Line) is classified as the following:  Inside/Interior cabin is equivalent to the economy class of air travel. It is usually intended for short staying guests who plan to spend most of their time enjoying the cruise ship and its facilities.  Oceanview cabin is an improved interior cabin that offers either a window or porthole (a small exterior window in a ship) view.  Balcony cabin is a more spacious cabin that may include a living area. It also offers a balcony view.  Suite is considered the “first class” of cruise ships and the most luxurious among sea travel cabins. o Land Travel is classified as the following:  Air-conditioned bus is a bus that has centralized air conditioning. Some buses have added public restrooms, especially those coming from the city bus terminals that are provincial-bound. These buses have fewer bus stops than ordinary buses.  Ordinary bus is a bus that has opened windows and has more bus stops than an air-conditioned bus.  Rail transport refers to trains that travel by rail.  Car rental refers to private cars that can be hired for short periods of time, ranging from a few hours to a few weeks. 06 Handout 1 *Property of STI  [email protected] Page 5 of 8  TH1804 Sample Tour Package with Itinerary Tours and Co.  TARGET CLIENT: Employees (Call Center Agents)  TITLE OF THE PACKAGE: 3DAYS/2NIGHTS ILOCOS GETAWAY PACKAGE  RATE PER PERSON: PHP 5,800.00 (minimum of 12 PAX/person travel together)  TRAVEL DATE: January to June 20XX, with departure every Thursday except for holidays like Holy Week, Chinese New Year, and Labor Day  PACKAGE INCLUSIONS:  Overnight accommodation in Pagudpud or Blue Lagoon  Overnight accommodation in Vigan  Van transfers (Manila - Ilocos - Manila)  Tours specified in itinerary  Driver's meals and accommodation  Government taxes and surcharges and guide and entrance fees  LIST OF ACCOMMODATIONS: ***Hotel/Lodge/Accommodation upgrade is available upon request  LAOG CITY AREA o La Elliana Hotel o Parklane Hotel o UKL Hotel o Pacific Grace  PAGUDPUD o Michaelo Angelo's House (Transient)  OPTIONAL ACTIVITIES:  Sand Dunes 4x4 Ride and Sand Boarding  Marcos Museum Film Showing  Hannah's Zipline  THINGS TO BRING:  Umbrella  Sunblock  Sunglasses  Swimming attire (Kabigan Falls and Blue Lagoon) 06 Handout 1 *Property of STI  [email protected] Page 6 of 8  TH1804 DAY 1 22:00 Evening departure from Manila to Pagudpud Travel time to Pagudpud DAY 2 Arrival in Laoag (breakfast on pax account) 07:00 Pagudpud Tour After breakfast, proceed to Pagudpud Tour Visit the following: Cape Bojeador Lighthouse Kapurpurawan Rock Formation 09:00 Bangui Windmill Patapat Viaduct Blue Lagoon Late lunch at a local restaurant (pax account) 13:00 Check-in at Michaelo Angelo's House (Transient) Free time for leisure DAY 3 07:00 Breakfast at the hotel (free until 10:30) Laoag City Tour Check-out 10:30 Proceed to Laoag Lunch at local restaurant (pax account) After lunch, proceed to Laoag City Tour to visit the following: St. William Cathedral Sinking Bell Tower 12:00 Museo Ilocos Tobacco Monopoly and La Tabacalera Malacañang of the North Paoay Lake Paoay Sand Dunes (excluding ride) Paoay Church Dinner at local restaurant (pax account) 18:00 Check-in at Laoag hotel/transient DAY 4 07:00 Breakfast at the Laoag hotel/transient Vigan City Tour - Departure to 9:00 Check-out at Laoag hotel/transient. Proceed to Vigan. Manila Start of Vigan City Tour with Lunch at local restaurant (pax account) After lunch, proceed to visit the following: 10:00 Calle Crisologo/Heritage Village St. Paul Cathedral Burgos Museum/National Museum Pagburnayan/Pottery Making 06 Handout 1 *Property of STI  [email protected] Page 7 of 8  TH1804 Crisologo Museum Baluarte Bantay Church and bell tower Back to Manila 15:30 Dinner (pax account) 23:00 Arrival in Manila END OF TOUR Note: Itinerary may change due to unavoidable circumstances. Minimum of 12 PAX travel together; otherwise, rate may change. Marketing a Tour Package Marketing is the management function which organizes and directs all those business activities involved in assessing customer needs. It is also the process of converting customer purchasing power into an effective demand for a specific product or service to the final consumer to achieve the target profit and other company objectives (Sharma, 2018). When marketing a tour package, tour operators need to research on the following (Sharma, 2018): Consumer satisfaction – Getting feedback from both regular and new clients is one (1) way of checking the clients’ satisfaction with the products and services. This can be in the form of a survey. A tour package that is cost-effective should also be customer-focused. Industry trends – The travel industry is very dynamic and would not be time-bound. It could change any time, especially if a product or service has low demand. Tour operators need to ensure that they would be able to understand the preferences of their clients while considering their budget and profit as a business. The following are the guidelines on how to market a tour package: Make a research about the profile of both clients and potential clients. Tailor fit the tour package with the profile and budget of the clients. Check if the list of destinations in the tour package fulfilled the five (5) A’s of tourism: o Accommodation – the place where clients can stay during their tour o Attractions – sights and sites that clients can see during their tour o Activities – things that clients can experience and do during their tour o Amenities – facilities that clients can use during their tour o Accessibility – how easily can clients be able to reach or enter all the other A’s of tourism. References: Claravall, B. G. (2013). Travel and tour operations in the Philippines. Sampaloc, Manila: Accumiro I.T. Solutions. Evans, N. (2015). Strategic management for travel and tourism. Taylor & Francis. Page, S. (2015). Tourism management. London, New York: Routledge. Sharma, S. (2018). Tour operation management in tourism. New Delhi, India: Random Publications. Velasco, E. O., Javier, D. A., & Perez, E. (2017). Hospitality and tourism marketing with MC. Intramuros: Unlimited Books Library Services and Publishing, Inc. 06 Handout 1 *Property of STI  [email protected] Page 8 of 8