MODULE 1

Introduction

J A N T O N I O M B A LTA Z A R
V2.0 - 2017
 DEFINITION
W H AT I S A T O U R PA C K A G E ?

Complete trip, usually including fare,

accommodation, meals, ground transport,
tour guides, taxes, etc., in one ALL
INCLUSIVE PRICE.

Source: BusinessDictionary.com
 T O U R PA C K A G E C AT E G O R I E S

TYPES & CHARACTERISTICS

Package tours can be broken down into six

(6) specific tour types. Tours available range
from Special Interest tours, Adventure tours,
City or Regional tours, Group tours, Fully
Escorted tours and Business tours.
SPECIAL INTEREST TOURS

SPECIAL INTEREST TOURS are designed

around a particular interest area which
could include arts, food and wine, sport,
cultural or agricultural.

Specialist tours may include an expert or

celebrity guide who relates to the theme
of a tour (e.g. a gardening expert
accompanying a garden tour, or an art
expert accompanying an art tour).
ADVENTURE TOURS

ADVENTURE TOURS are designed to allow

the consumer to participate in their area
of interest for the length of the tour and
more experience based. They generally are
physical and require a certain level of
fitness. However, it can sometimes be
modified to meet your needs depending
on other travelers.

Some examples of this tour type include

diving, rock or mountain climbing, horse
riding, skiing or cycling.
CITY OR REGIONAL TOURS

CITY OR REGIONAL TOURS normally last

for one full day or less. They follow a fixed
itinerary and will visit areas of interest in a
specific place, whether that is historic,
religious or cultural. Refreshments or
meals are often included.
GROUP TOURS
GROUP TOURS also follow a fixed and pre-
arranged itinerary. They often only take
place depending on the number of
travelers, i.e. they require a certain
number of travelers in order to go ahead
or it becomes a financial cost rather than
profitable.

It is also worth noting there are a

maximum number of travelers on group
tours too, as determined by the mode of
transport that can accommodate a set
number of people. Group tours are
generally always escorted or a tour guide
service is provided.
FULLY ESCORTED TOURS

FULLY ESCORTED TOURS are often a good

idea for solo or a much smaller number of
travelers. This type of tour offers a sense
of security or overcomes language and
cultural barriers.

These types of tours are often somewhat

educational, the escort providing local,
historical and cultural knowledge or insight
gives the consumer a more worthwhile
experience and understanding of the place
(or country/area) visited.
BUSINESS TOURS

BUSINESS TOURS are significantly different in

many ways from that of other tour packages.
However, the pleasure element can not be
separated from the business tours.

Because business persons travel for a variety of

reasons – destinations are not chosen by them
but predetermined and more often attractions
are added to make business tours more
effective and attractive.

Two (2) forms of business tours have received

a special attention from the tour operators
namely, Conference Package and Special Events
Package.

These packages include a wide range of

activities such as venues for business meetings/
conferences, accommodation, transportation,
secretarial services, conference equipments,
local sightseeing and other facilities.
 T O U R PA C K A G E A D V A N TA G E S & D I S A D V A N TA G E S
A D V A N TA G E S V S D I S A D V A N TA G E S

From both a travel agent’s and a consumer’s

perspective, package tours provide a number
of advantages, which often outweigh the
disadvantages.
ADVANTAGES FOR THE CONSUMER

COST SAVING AND BUDGETING. The

price of a trip when organized as a
package is generally less as travel
agencies bulk buy their package deals
and therefore can sell lower at more
competitive rates.

This is an instant cost saving benefit for

the consumer, as the discount travel
agencies receive is generally passed on
to the consumer.

Tours often include all meals or trips for

example, this reduces any uncertainty
about the additional costs.

For example, if airport pick-ups or taxi

transfers are pre-booked and paid for
beforehand there is no potentially
expensive surprise on arrival at the
destination.
ADVANTAGES FOR THE CONSUMER

RESPONSIBILITY IS ON THE OPERATOR. The

lack of responsibility on the traveller is an
advantage. If something goes wrong, e.g. a
flight is delayed, resulting in the traveller
missing a connecting flight, it is not the
traveler’s responsibility to arrange a new
ticket. The responsibility lies with the airline
or tour operator. In a certain respect,
travelers can relax knowing if something
goes wrong, someone else is there to solve
the problem.
ADVANTAGES FOR THE CONSUMER

CONVENIENCE AND TIME SAVING.

This is definitely the most
convenient way to arranging a
vacation or tour. The travel
agency deals with all the
arrangements relating to airlines,
hotels, transfers directly through
the tour provider. This saves the
consumer the effort and the time
of contacting each company/
service individually.
ADVANTAGES FOR THE CONSUMER

SOCIAL. This is frequently a

main reason why people may
opt to travel on a package
tour. The chances of social
interaction are higher,
allowing the fostering of short
or long term friendships.
People regularly choose a tour
which ensures they are
socializing with people of a
similar age, for example,
young people who like to
party may opt for an 18-30
party group tour, some adults
may choose to stay in
accommodation that caters
to the needs of children and
will opt for a family tour or
some people may choose to
go on adult only tours to
avoid children completely!
ADVANTAGES FOR THE CONSUMER

QUALITY OF SERVICE. Tour

operators (those who
provide the travel agency
with the tour package)
spend a great deal of time
assessing the airlines, hotels,
sight-seeing operators etc,
which they use to make up
the tour package. By doing
so they ensure a high
standard of quality and the
consumer can have peace of
mind. Tour companies are
eager to meet their own
business needs and so they
ensure that the most
frequented areas of interest
(cultural or geographical) are
included in their tour, thus
meeting the needs of the
consumer.
DISADVANTAGE FOR THE CONSUMER

INFLEXIBILITY. When a traveler

purchases a tour they commit to
follow the itinerary, flight schedule
and accommodation arrangements.
Generally they are unable to change
or reschedule their tour and nor can
they change their plans as they wish.

For example, they must be at a point

of pick-up at a certain time and if
they are not there they delay the rest
of the tour (if they are booked onto a
group tour that may create problems
and possibly complaints from other
travelers). Also, if travelers have any
special requirements, again for
example, dietary requirements, but
they are out camping in the bush It is the responsibility of the travel agent at the
overnight, the tour provider may not time of booking to ensure all possible issues are
be able to meet their needs but raised and the traveler’s needs are addressed due
substituting the food provided. to the inflexible nature of a tour package.
ADVANTAGES FOR THE TRAVEL AGENT

AGENT COMMISSION. Travel agents normally receive percentage commission on all tours
they confirm. Clearly the financial incentive means travel agencies find it extremely
advantageous to sell tour packages and not solely flights and/or accommodation.
ADVANTAGES FOR THE TRAVEL AGENT

SAVINGS IN TIME AND COST. In

order for a travel agent to put
together all the components of
a package tour, this would take
extensive communication with
the different service providers,
initially to check rates and
availability and then to send
through deposits and secure
bookings. By using a tour
provider, the travel agent only
needs to make one call, send
one email or use an online
booking system once to
confirm the tour package.
Clearly this saves a great deal
of time, freeing up the agent
to work for other consumers,
thus increasing sales and
commission.
ADVANTAGES FOR THE TRAVEL AGENT

WIDE VARIETY OF PACKAGE

TOURS AVAILABLE. This means
the travel agent can always make
suggestions on tours which
match the needs of the
consumer. The high number of
very different packages available
allows people with possibly lower
budgets to still enjoy tours.
DISADVANTAGE FOR THE TRAVEL AGENT

CONTROL. Travel agents have little

or no say over the tour operator’s
choice of services, restaurants,
accommodation or attractions
included in a tour package. As a
result they must ensure they
carefully choose the correct
package which provides a high
standard of quality, or is the most
appropriate for the particular
market. Also the business of tour
packages and the number of tour
providers is vast. This makes is
very difficult for all travel agents to
become and remain knowledgeable
of all the available tour “products”
and so extensive time must be
spent researching choices and
selecting the best one for the
consumer.
 M O T I V AT I O N S F O R T R AV E L A N D T O U R I S M

W H Y D O P E O P L E T R AV E L ?

"Crompton (1979) notes it is possible to describe the who, when,

where, and how of tourism, together with the social and economic
characteristics of tourist, but not to answer the question "why," the
most interesting question of all tourist behaviour."
Motivations that cause a person to
travel as a tourist should be
distinguished from features of the
destination.

For example, a pleasant climate may

be one of the attractions of the
tourist destination, but it might be
concern for health, or the desire to
physical comfort, that may motivate
a person to visit that particular
tourist spot.

Also, different groups of people may

visit a single spot with several
different motives in mind.

Tourism professionals need to

understand tourist motivations in
order to decide which facilities they
should offer to their customers and
be successful in their business.

Tourist motivations can be generally

categorized into these four:
 PHYSICAL

REST. Many people head to the hills in the summers in

India to escape the heat in the plains.

RECREATION AND PLEASURE. Other groups of people

may choose a resort in the hills to enjoy the climate as
well as the recreation facilities available there.

HEALTH. People also travel for health reasons. Some take

advantage of medical facilities (medical tourism) in the
destination, and others visit spas for rejuvenation.
Kerala has several spas offering ayurvedic treatment.
SOCIAL / CULTURAL

SPORTS. Sports fans travel long

distances to watch their favorite
events. Millions also travel to watch
the Olympics. Adventure sports
facilities, attract several other tourists
to hill stations, sea- and river-side
destinations.

CULTURE. Other tourists are attracted

by the difference in culture, and may
want to sample the local food, meet
local people, and see local festivals.
Tourists also usually like to collect
handicrafts unique to an area as
mementoes of their visit.

RELIGION. Pilgrimage tourism is one of

the most important kinds of tourism
going by the huge number of people
who travel for religious reasons.
 INTERPERSONAL

FAMILY AND FRIENDS. Visiting friends and family counts as one of biggest reasons people travel.
 ECONOMIC

BUSINESS. People often travel for business.

 TRANSPORTING YOUR CLIENTS

MODES OF TRANSPORT

There are three (3) primary modes of

transport available for your clients. These
are via Air, Land and Sea (Water).
AIR

Via Aircraft whether commercial or chartered flights. Bookings may be done through the
Travel Agent, a GDS (Global Distribution System - i.e., Amadeus, Abacus) and/or Online (via
the airline’s site or third-party sites like Expedia).
LAND

Via Land-based carriers like Coaches, Vans, Cabs, Limousine Service, Rail and other similar
carriers whether commercial or chartered. Some may add a local flare such as a Kalesa,
Jeepney or Rickshaw. Bookings may be done through the Travel Agent, Online (where
available) or directly with the carriers themselves.
SEA (WATER)

Via sea- or water-based carriers (boats, ships, banca, etc.) whether commercial or
chartered. Bookings may be done through the Travel Agent, Online (where available) or
directly with the carriers themselves.
 TICKETING AND PRICING

HOW TO TICKET

Ticketing passengers are much easier now.

There are two (2) basic ways to ticket
passengers. First is by using a GDS (Global
Distribution System) such as Amadeus and
Abacus, and another is through Online Sites
whether direct from the Airline or via a third-
party agent such as Expedia. Pricing will vary
based on your desired mark-up or based on
your contracted commission rates.