COMMUNITY GUIDING WORKSHOP

VALUES FORMATION & EFFECTIVE CUSTOMER

SERVICE: THE RELATIONSHIP BETWEEN TOUR
OPERATOR & TOUR PACKAGE

by
Reynaldo A. Jorda, Ph.D.
 Overview

The Philippines has a total of 9 tourism products and these are:

1. Nature Tourism

2. Cultural Tourism

3. Sun and Beach Tourism

4. Leisure and Entertainment Tourism

5. MICE and Events Tourism

6. Health, Wellness and Retirement Tourism

7. Cruise and Nautical Tourism

8. Diving and Marine Sports Tourism

9. Education Tourism.
 Overview

Tourism involves experiencing

contact with different intensity of the
following:

1. Unique social fabric of Alabat;

2. Heritage sites; and
3. Special characteristics of Alabat.

Source: Blackwell, Schweitzer in McKercher and du Cros (2002)

 Learning Outcomes

1. Define a tour operator & tour package;

2. Enumerate their different types or classification;
3. Establish their link to the delivery of customer
value, satisfaction, and delight;
4. Identify potential service gap in the delivery
system; and
5. Formulate strategies to minimize the service
gap.
 Learning Content

Topic Description
Overview
1 Tour Operator
2 Tour Package
3 Preparation of Tour Package
4 Appropriate Mix
5 Quality Tourism Product
Conclusion
COMMUNITY GUIDING WORKSHOP

Topic # 1: Tour Operator

 Tour Operator

Leipers Tourism System

1 3
4

5
 Tour Operator

Organizational Structure of a Travel Management Corporation (TMC)

General Manager

Administrative Sales & Marketing

Operations Department
Department Department

Freelance or Staff Tour Freelance or Staff Tour

Guide Escort or Leader

Inbound Outbound

Source: Claravall, B. ( 2013)

 Tour Operator (TO)

A Tour Operator is an

1. Intermediary between
suppliers of travel products
& services and the
travelers;

Source: Claravall, B. (2013)

 Intermediary

TOUR OPERATOR
Transportation Industry Lodging Industry

F & B Industry Attractions Industry

Traveler
 Tour Operator

A Tour Operator.

2. Contracts the transportation

services for access,
accommodation for lodging and
meals, entities for attractions and
activities, and the tour guides;

Source: Claravall, B. (2013)

 Contracting

Service Suppliers Rate

Lodging Industry Contracted rate/ Favorable terms &

conditions (2 + 1)

Land Transportation Jeepney or Tricycle

F & B Industry Favorable Terms & conditions

10 + 1, Guide + Driver (FOC)

Attractions & Activities Favorable terms & conditions

10 pax + 1
 Tour Operator (TO)

A Tour Operator

3. Assembles the different

travel products & services into
a single tour package; and

4. Delivers the tour package to

the travelers.

Source: Claravall, B. (2013)

 Assembling

Tourism Supply Chain

Source: Page, S. (2009)

 Types of Tour Operator

1. Local Tour Operator

2. Domestic Tour Operator

3. Inbound Tour Operator

4. Outbound Tour Operator

 Types of Tour Operator

Type Description

Local tour operator Business comes from both local and foreign travelers
visiting the attractions where the TO is based.

Clientele is generally off the street and over-the-

counter sales and other TOs in the country.

Operates regular sightseeing tours or tour packages to

popular attractions in the locality.

A retailer - It deals directly with end-users, and

occasionally as a wholesaler, when servicing the
requirements of another TO.
 Local Tour Operator

Tour planning, itinerary

development, contracting
rates, costing & pricing,
quotation & proposals

Inbound Local Tour

Outbound
Market Source Tour Operator
Tour
Operator Operator

Area of Ex: Ex:

Ex: Malaysia
Operation Philippines ANGELES

reservations& confirmation,
field operations, billings &
accounting, and evaluation
 Types of Tour Operator

Type Description

Domestic tour Business comes from local associations,

operator schools, companies and corporations
and, occasionally, individual travelers
who organize summer outings, out-of-
town meetings, incentive trips to
national attractions.

The tour packages are ad hoc.

 Domestic Tour Operator

Tour planning, itinerary

development, contracting
rates, costing & pricing,
quotation & proposals

Domestic
Outbound Inbound Tour
Market Source Tour
Tour Operator
Operator Operator

Area of Ex: Malaysia Ex: Ex:

Operation Philippines ANGELES

reservations& confirmation,
field operations, billings &
accounting, and evaluation
 Types of Tour Operator

Type Description

Inbound tour Business comes from foreign (outbound)

operator tour operators at the origin country who
send clients to national destinations, on
regular or ad hoc packages , based on the
requirements of their clients, and
regardless of their nationality.
 Inbound Tour Operator

Tour planning, itinerary development,

contracting rates, costing & pricing,
quotation & proposals
Malaysian
Travelers
Products &
FITs Services
Group Inbound
Outbound suppliers
Tour
Tour
Personal Operator
Operator Transportation
Corporate Lodging
Ex: F&B
Ex: Malaysia Tourism attractions
Technical Tour Philippines & activities
Study Tour
Adventure
Mixed
reservations& confirmation,
field operations, billings &
accounting, and evaluation
 Types of Tour Operator

Type Description

Outbound tour Designs and assembles tour packages

operator for residents of the Philippines, either
foreign or local, to destinations abroad.

The popularity of a destination overseas

or the specification requirements of the
traveler, either groups or individuals,
determine the type of package.
 Outbound Tour Operator

Tour planning, itinerary development,

contracting rates, costing & pricing,
quotation & proposals

Filipino Travelers
Products &
Services FITs
Inbound Outbound Group
suppliers Tour Tour
Operator Operator Personal
Transportation
Corporate
Lodging
F&B Ex: Ex:
Tourism attractions Malaysia Philippines Technical Tour
& activities Study Tour
Adventure
Mixed

reservations& confirmation,
field operations, billings &
accounting, and evaluation
 Highlight

A Tour Operator is

not strictly structured;

combines two or three types, of

a Tour Operator; and

main function and activity

determine its type.
COMMUNITY GUIDING WORKSHOP

Topic # 2: Tour Package

 Tour Package

The Tour Package is the

product of the TO.

The Tour Package is a

combination of two or
more tourism products
and/or services of a travel
supplier.
Source: Clarvall, B. (2013)
 Types of Tour Package

Ground Arrangements

Land Arrangements

Inclusive Tour Packages

Inclusive Escorted Tour

Packages

Source: Clarvall, B. (2013)

 Ground Arrangements

Services Description

Transfers Transfer in (Seaport to Hotel)

Transfer out (Hotel or Seaport)

Sightseeing tours Half Day Alabat Tour

Whole Day Tour

 Land Arrangements

Services Description
Transfers Transfer in (Seaport to Hotel)
Transfer out (Hotel or Seaport)

Sightseeing tours Half Day Alabat Tour

Whole Day Tour

Hotel accommodation Homestay

Elbert Lodge II
Inn
 Inclusive Tour Packages

Services Description
Transfers Transfer in (Seaport to Hotel)
Transfer out (Hotel or Seaport)
Sightseeing tours Half Day Tour of Alabat
Whole day Tour
Hotel accommodation Homestay
Elbert Lodge II
Inn

Transportation Sea or Land

 Inclusive Escorted Tour Package

Services Description
Transfers Transfer in (Seaport to Hotel)
Transfer out (Hotel or Seaport)
Sightseeing tours Half Day Tour of Alabat
Whole Day Tour
Hotel accommodation Homestay
Elbert Lodge II
Inn

Transportation Air, Sea or Land

Tour Escort Tour guide from the point of origin.

 Tour Package: 4D-3N Manila Tour
(Inclusive Escorted Tour Package)

Lodging
Attractions

F&B

Attractions & Activities

Land Transportation
 Classification of Tour Package

Regular Tour package

Ad Hoc Tour Package

Source: Claravall, B. (2013)

 Classification of Tour Package

Classification Description
Regular Tour Assembled based on the PERCEIVED
Package NEED or INTEREST of traveler. Pre-
packaged and feature well-known
attractions that have a high demand. Ex:
2N-3D Honeymoon Package of El Nido.

Ad Hoc Tour Packages that are tailor-made/customized

Package to the real needs of travelers. Ex: 3N-4D
Technical Visit of Thailand Doctors
 Ad HocTour Package

Lodging
Attractions

F&B

Attractions & Activities

Land Transportation
 Variables of Tour Package

1. Duration
2. Destination
3. Accommodation category
4. Meal Plan
5.Mode & Class of
Transportation
Source: Clarvall, B. (2013)
 Tour Package Variables

Variables Remarks
1. Duration Number of days and nights included in the tour
package.
2. Destination Single or multiple destinations.
3. Accommodation Depending on the star system.
Category
Resort Hotels are categorized as AAA. AA,
or A

4. Meal Plan Number of meals per day included in the

package.

If all meals are included, its Full Board; Lunch

& Dinner only Half-Board; Breakfast only Bed-
and-Breakfast.
 Tour Package Variables

Variables
4. Meal Plan Continental Breakfast includes coffee or tea with rolls,
jam and butter;

American breakfast includes eggs and bacon or ham plus

toast;

Filipino Breakfast includes plain rice, tapa or daing.

Oriental Breakfast includes rice porridge and a number

of side condiments.

Buffet Breakfast is a table laden with breakfast food and

self-service.

5. Mode & class of Mode refers to air, sea or land travel. Class refers to the
transportation grade of service, facility and amenities offered to the
passengers.
 Highlight

1. Duration

5. Mode &
Classification of 2. Destination
Transportation TOUR PACKAGE

1. Type
2. Classification
4. Meal Plan 3. Accommodation
 Highlight

No two individuals are alike, and

differences in attitude,
perceptions and motivation have
an important influence in travel
decisions (where) attitudes
depend on the individuals
perception of the world.

The travel motivator determines

the type of services selected.
 COMMUNITY GUIDING WORKSHOP

Topic #3: Steps in the Preparation

of a Tour Package
 Tour Package Preparation

1. Tour planning
2. Itinerary development
3. Contracting rates
4. Costing and Pricing
5. Quotations and Proposals
6. Reservations and Confirmation
7. Field operations
8. Billings and Accounting
9.Evaluation
 1. Tour planning

It is the process of determining the

objectives to be achieved such as:

Customer satisfaction

Destination or community
endorsement
Organizational promotion

Financial gain

Combination of all
 2. Itinerary Development

It is the process of identifying

and selecting the BEST
suppliers suited to provide
the services required in the
tour package beginning with:

Transportation

Lodging establishments

Sights to see and activities to

engage in
Ancillary services
 3. Contracting Rates

It is the process of negotiating

and collating from a set of
identified suppliers rates that
are MORE COMPETITIVE
than the published rates
known as contracted rates.

Contracted rates ranges from

30-50% discount.
 4. Costing & Pricing

It is determining the costs of

the various components,
activities or services included
in the tour package
depending on the number of
pax availing of the package.

After calculating the

approximate profit from each
component and adding this
to the cost, the result is a
Quotation.
 5. Quotations & Proposals

They are prepared for Ad

Hoc Tour Package based on
a required minimum
number of pax and in
accordance with the specific
activities, inclusions and
requirements of the traveler
 6. Reservations and Confirmation

It involves the process of

placing advanced requests for
available space or service at
some time in the future and
obtaining confirmation of
these.
 6. Reservations and Confirmation

A confirmation is a written
advice by a supplier that a
reservation has been
accepted and will be
honored, thus the term
confirmed reservations.
If necessary, alternative
reservations are to be made
when confirmations cannot
be obtained from the
preferred supplier.
 7. Field operations

It covers the actual delivery

of services from arrival to
departure.

Once completed, the focus

of attention shifts to the
field in order to determine
the level of preparation
done in the office.
 8. Billing and Accounting

It involves the preparations

of invoices for deposit
payments and balance due,
and the collection of
payments from the clients,
preferably prior to the
arrival and the payment
due to all suppliers.
 9. Evaluation

It compares the Tour Operators

performance with the actual
results of the tour.
 Transportation Ad HocTour Package

Duration

Accommodation

Meal Plan

Meal Plan

Transportation
 Highlight

Challenge to a Tour Operator

APPROPRIATE PRODUCT
MIX - It means the quality of the
attractions and facilities must be
present for tourists to travel and
receive satisfaction from the
tourism experience in Angeles
City.

Source: Kastarlak and Barber (2011)

COMMUNITY GUIDING WORKSHOP

Topic # 4: Product Mix

 Appropriate Mix

The tourist should be

understood from two
perspectives that shape his
choice to travel to a
particular destination.
 Appropriate Mix

1. The motives of the tourist to

travel; and

2. The perception of the

tourist about the image of the
destination.
 Appropriate Mix

The motivation to travel by

each individual must be linked
to a suitable tourist destination
that best meets the travelers
motivators.

Source: Claravall, B. (2013)

 Appropriate Mix

The TO must establish the link

between travel motivators and
the type of destination to be
selected by a Tour Operator.

Source: Claravall, B. (2013)

 Appropriate Mix

Motivation is a state of need, a

condition that exerts a push on
the individual towards certain
types of action that bring
satisfaction.

Source: Mountinho (1987) in Page (2009)

 Appropriate Mix

Tourist demand is about using

tourism as a form of
consumption to achieve a level
of satisfaction for an individual,
and involves understanding
their behavior and actions and
what shape these human
characteristics.
Source: Page (2009)
 Appropriate Mix

Tourist Behavior
5

Source: Pearce (2005)

 Appropriate Mix

Intrinsic motivational forces

It refers to the individuals

unique personal needs that
stimulate or arouse them to
pursue tourism.

Source: Page (2009)

 Appropriate Mix

Intrinsic motivational forces

Some of these needs are

individual needs like:

1. Becoming a tourist for self-

improvement or what is termed
self-realization;
Source: Page (2009)
 Appropriate Mix

2. Achieve a state of happiness;

or

3. Boost ones ego because of the

personal confidence building that
travel can encourage.
Source: Page (2009)
 Appropriate Mix

Extrinsic motivational force

It refers to the broader

conditioning factors that shape
individuals attitudes,
preferences and perceptions
but are more externally
determined for example, the
society and culture one lives in
will affect how tourism is
viewed. Source: Page (2009)
 HIGHLIGHT

The Relationship between needs, motivations,

preferences and goals in individual holiday choice

Source; Goodall, B. in Page, S. (2009)

 COMMUNITY GUIDING WORKSHOP

Topic # 5: Quality Tourism product

 Topic # 5: Quality Tourism Product

Philippine Tourism Products

Tangible Elements Intangible Elements

Attractions & Activities Facilities Service Image Business

Performance environment
 Quality Tourism Product

QUALITY is
interpreted relevant to
the full spectrum of the
service sector.
Source: Page (2009)
 Quality Tourism Product

QUALITY is meeting
customer expectations
or demands. Suitability
to meet customer
demands is the most
important, element of
the concept of quality.

Source: Page (2009)

 Quality Tourism Product

Intangible Elements of Supply

Service performance refers to

the competencies and skills of
all service providers to solve
the tourists problems in order
to deliver
Customer value
Customer satisfaction
Customer delight
 Quality Tourism Product

CUSTOMER
Value

The benefit that a traveler

gains from visiting the .its cost (Material
Bicol Region investment) and time
(non-material investment)
 Quality Tourism Product

CUSTOMER
Satisfaction

If the performance of the

tourism product matches
a tourists expectations the tourist is satisfied.
 Quality Tourism Product

CUSTOMER
Delight

If the performance of the

tourism product exceeds a ..the tourist is delighted.
tourists expectations
 Conclusion

Based on the discussion

above, the Tour Operator
receives input in the design
and development of a tour
package from the needs,
wants and demands of a
traveler.
 Conclusion

The lesser the service

gap between the travelers
expectations and tour
package, the higher is the
level of customer
satisfaction.
The wider the service
gap between the travelers
expectations and tour
package, the lower is the
level of customer
satisfaction.
 Highlight

Provides
input to the
design of the
Tourists needs, tour package
wants and
Sustain the link demands
between tourist
need & demand CUSTOMER
DELIGHT
& tourism
products.
Service Tourism
Performance Products

Tour Guide
 Thank you very much