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CHAPTER 2: TRAVEL & TOUR OPERATIONS BUSINESS (TO&TA) - Coggle…
CHAPTER 2: TRAVEL & TOUR
OPERATIONS BUSINESS (TO&TA)
CHANNELS OF DISTRIBUTION FOR TOUR OPERATORS
Transport and accommodation suppliers
Tour operator
Speciality planners - Concierge services, meeting and convention planners and incentive companies
Customers
Transport and accommodation suppliers
Retail travel agent
Customers
Transport and accommodation suppliers
Tour operator (direct using telesales, call centres and online)
Customers
Transport and accommodation suppliers
Tour operator
Retail travel agent
Customers
Transport and accommodation suppliers
Home worker retail travel agent
Customers
Transport and accommodation suppliers
Tour operator
Online travel agent
Customers
2.1. TRAVEL BUSINESS
CLASSIFICATION/ MODEL
TRAVEL AGENCY
Travel Agency
Entire/total process of developing and promoting tourism
Packages and processes
all the attractions, accesses, amenities and ancillary services of a country and presents them to the tourists
Makes arrangement of travel tickets, travel documents, accommodation, entertainment and other travel related services
Either be one of a chain of retail outlets or a single operation
Travel agency sales clerks take bookings
on behalf of tour operators
The main features of travel agency business
An important link between the clients and principal suppliers
Image builder
Ensure rapid travel service
Provider of authentic and reliable information
A social and continous process
Establishes good relationship with clients and vendors
Retail Travel Agency
Sells tourist products directly to the public on behalf of the product suppliers and in return gets commission
Fuctions
Quote fares and rates
Make reservations
Arrange travel tickets and accommodation
Arrange travel insurance
Foreign currency
Documents
Accept payments
The main source of revenue is the commission received from the vendors.
Wholesale Travel Agency
These agencies are specialized in organizing package tours
Network of a retail travel agency or directly to the prospective/potential clients
Tourist product components in bulk and designs package tours
Assemble package holidays and sell them to the clients by retail travel agencies
A wholesaler who sells tourists products individually without assembling them into package tours is called a consolidator
TOUR OPERATOR
Who has his own one or more tourist product components formulates a new tourist product for example ‘inclusive tours’ or Package tours”
Package tours
Usually sold by travel agents
Some companies have their own retail outlets or sell direct to the public.
Types of Tour operator
Inbound Tour Operators
Who receive guests, clients/tourists and handle arrangements in the host country
Outbound Tour Operators
Who promote tours to foreign destinations, may be business tours or leisure tours
Types
Mass market
Specialist
Domestic Tour Operators
Who assemble and combine tourist components into inclusive tours and sell it to the domestic travelers
Types
Ground handing agent-handing inbound foreign tourists
Domestic operator-operates within the boundary of the home country for domestic tourists
Destination Management Companies/ Ground Operators
Handling agencies and their main function is to organize your arrangements for incoming tourists on behalf of overseas operators.
2.2. PACKAGE TOURS AND
OTHER TOURISM PRODUCTS
Package tour development
The early leaders in retail travel recognized the potential of facilitating international travel, which
was aided by
two key factors
A growing knowledge and expertise of destinations overseas
Their ability in being able to manage foreign exchange transactions
Thomas Cook (1866: America), Henry Lunch (1893: Switzerland) and AEC (1981: America)
1960s/ 1970s: tour operators sought to exploit the growing market demand for the package holiday
Europe is the cradle of the international holiday package
New markets in the major emerging economies of the world have developed
The “3S” traditional packages >> bespoke packages >> cruising and “all inclusive” resort packages
Package tour’s components
Itinerary
Services
Transpostation
Accomodation
Transfer
Activities
Price
The Convenience of Package Holidays
In terms of home departure point, travel time, fitness for purpose and cost
Safety and security
Comfort
Classification of Package Holidays
Static
Single-destination holidays (all-exclusive holiday)
Multicentre
A multicentre holiday combines two or more destinations into one trip
Tours
An escorted tour: tour manager (coach tours, adventure and activity packages)
Guided tour hosted packages
Independent
Tailor-made packages
Cruising