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    Tour Operations Cycle

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    josephine subrosa
    The document describes the tour operations cycle which includes 10 steps: 1) tour planning 2) itinerary development 3) contracting rates 4) costing and pricing 5) quotations and proposals 6) reservations and confirmations 7) field operations 8) billings and accounting 9) evaluation. It provides details on the processes of tour planning, itinerary development, contracting rates, and costing/pricing which involve determining customer needs, selecting suppliers, negotiating rates, and calculating costs to develop a tour package and price.

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    Tour Operations Cycle

    Uploaded by

    josephine subrosa
    225 views21 pages
    The document describes the tour operations cycle which includes 10 steps: 1) tour planning 2) itinerary development 3) contracting rates 4) costing and pricing 5) quotations and proposals 6) reservations and confirmations 7) field operations 8) billings and accounting 9) evaluation. It provides details on the processes of tour planning, itinerary development, contracting rates, and costing/pricing which involve determining customer needs, selecting suppliers, negotiating rates, and calculating costs to develop a tour package and price.

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    The document describes the tour operations cycle which includes 10 steps: 1) tour planning 2) itinerary development 3) contracting rates 4) costing and pricing 5) quotations and proposals 6) reservations and confirmations 7) field operations 8) billings and accounting 9) evaluation. It provides details on the processes of tour planning, itinerary development, contracting rates, and costing/pricing which involve determining customer needs, selecting suppliers, negotiating rates, and calculating costs to develop a tour package and price.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    225 views21 pages

    Tour Operations Cycle

    Uploaded by

    josephine subrosa
    The document describes the tour operations cycle which includes 10 steps: 1) tour planning 2) itinerary development 3) contracting rates 4) costing and pricing 5) quotations and proposals 6) reservations and confirmations 7) field operations 8) billings and accounting 9) evaluation. It provides details on the processes of tour planning, itinerary development, contracting rates, and costing/pricing which involve determining customer needs, selecting suppliers, negotiating rates, and calculating costs to develop a tour package and price.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 21

    TOUR OPERATIONS

    cycle of preparing and implementing (or


    delivering) all the activities comprising a
    tour package as detailed in the itinerary,
     within a given time frame,
     within the estimated costs,
     generating the projected revenues
     in order to meet the expectations of the
    paying client and attain objectives.
    TOUR OPERATIONS CYCLE
    1. Tour Planning
    2. Itinerary Development
    TOUR OPERATIONS CYCLE
    3. Contracting Rates
    4. Costing and Pricing
    5. Quotations and Proposals
    6. Reservations and Confirmations
    TOUR OPERATIONS CYCLE
    7. Field Operations
    8. Billings and Accounting
    9. Evaluation
    TOUR OPERATIONS CYCLE
    Tour Planning
    The process of determining the objectives
    to be achieved, whether these
     involve customer satisfaction,
     destination and/or community
    endorsement
     organizational promotions
     financial gains
    TOUR OPERATIONS CYCLE
    Tour Planning –
    Customer Focused Tour Package
     client profile
     destinations requested/proposed
     duration
     category of accom
     meal plan (cont’)
    TOUR OPERATIONS CYCLE
    Tour Planning –
    Customer Focused Tour Package
    (cont’d)
    sightseeing or activities requested
    mode and class of transpo
    ancillary services
    guide and/or tour escort services
    FOC
    TOUR OPERATIONS CYCLE
    Itinerary Development
    the process of building an itinerary
    and identifying and selecting the
    best suited to provide the services
    required in the tour package
    CONTRACTING RATES
    Contracting is the process of
    negotiating competitive rates, terms
    and conditions, and tour services with
    the identified suppliers.
    CONTRACTING RATES
    get the best available rate,
    with the most concessions,
    and most favorable terms and
    conditions
    CONTRACTING RATES
    Important things to consider:
     Basic Inclusions
     Class/Level/Type of Service
     Taxes, Insurance Fees, Service Charges
     Applicable Concessions
     Validity of Contract
     Booking and reservation procedures
     Payments and credit line
    Taxes, Insurance Fees,
    Service Charges
    “net inclusive” – term used for a rate
    that includes all charges
    “plus-plus” (nett ++) – taxes and
    service
    Concessions
    Free ticket for a specified number of
    full-paying tickets (e.g. 15+1)
    Hotel meals are usually not
    complimentary
    Supplier will grant room concessions
    based on the TO/TA’s track record
    Validity
    Must indicate the validity of the
    contract rates both in terms of time,
    and markets
    e.g. year round with peak/lean or high/low
    seasons ( Xmas, Nyear, holy week)
    Markets (Chinese, US, Japanese)
    COSTING and PRICING
    Costing is the process of determining
    the actual cost of a tour package by
    detailing the various components of
    the package.

    Review:
    fixed costs vs variable costs
    per pax vs. per unit
    COSTING and PRICING
    General steps / guidelines
    1) Outline the itinerary
    2) Determine the needed supplier/services in the entries
    3) Indicate the costs/rates payable to suppliers
    4) Determine whether fixed or variable
    5) Add up total costs
    6) Divide by total no. of pax (to obtain cost/pax)
    7) Mark-ups / service charge / taxes / commissions
    8) Determine tour package price / pax

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