UNIT- V

TOUR PACKAGE
CLASS-12
 INTRODUCTION
• Packaging tours is an innovative business concept that has gained worldwide visibility .
• It was first introduced in the mid of nineteenth century.
• Assembling basic and desirable services and offering them in one price is the primary
function of package tour business.
• This serves two important purposes:
• First, it is to reduce the unwanted hassles for the customers and provide value-for-money
services and Second, it is to give business opportunities to the travel agents, tour operators,
transport operators, accommodation service providers, event companies, etc.
• Thus, a package tour is a sum total of services consisting of transport from the point of
origin to all traversing destinations, accommodations at en route places and at the
destination, other recreational and travel services
 MEANING AND CLASSIFICATION
OF TOUR PACKAGES.
• The package tour business was planned and organized after the conduct of organized
package tour to Paris in 1855 by Thomas Cook.
• Package holidays can be escorted or unescorted given the needs and demands of customers.
• A package tour comprises a combination of two or more components of services with an
objective of helping the clients or customers save time & cost and avoid uncertainties. It
largely includes the services of transport, accommodation, food, guide and other
miscellaneous services.
• Transport and accommodation form a significant proportion of the cost and service of any
organized package tour.
A PACKAGE TOUR
• These services are offered at inclusive prices and customers primarily prefer to pay a
single price at one place as it is convenient for the high-end customers.
• Thus, pre-arranged services are selected to be incorporated in the package on the
basis of the quality of services and good will of the service providers.
• In addition, the design of package tour is done taking the travel trends and
motivation into consideration.
• Tour operators evolve strategies to increase the perceived value by combining
complimentary products and services in more attractive ways.
• Increasing the value and demand for a tourism product through packaging and
partnership is the ultimate objective of the tour operation business.
•
 CLASSIFICATION OF PACKAGE TOURS
• The tour operator is a consolidator or wholesaler in assembling primary and related services
with a different price tag.
• However, packages are designed for the independent and group tours after making
comprehensive study and analysis.
• All these package tours provide a bundle of services to the customers who are generally
leisure and business tourists.
• The classification is made on the basis of the operation and types of services.
• Given the nature of package tour business, it may be named as group tour, individual tour,
sponsored tour, special interest tour and common interest tour, guided tour, and escorted
tour.
• Package tours are basically classified as independent tour, escorted tour, hosted tour and
incentive tour.
 ESCORTED TOUR

• An escorted tour is accompanied by qualified, trained and experienced tour

managers or guides, who provide information and assistance to the group at the
origin, en-route and the destinations about flight boarding, and baggage handling,
hotel check- in, meal arrangements along with interpretation about the places of
tourist importance during sightseeing.
• Tour escorts provide timely assistance and advice about the seating arrangements in
flights, trains, and sightseeing coaches.
• For example, the affinity group package comprises the members of a community
club to travel together
 INDEPENDENT TOUR
• A package tour is designed for independent tourists or free independent travelers.
• They are very much particular about selecting types of destinations, accommodation, and
transportation as it suits the budget, comfort and time. Each individual element of service is
purchased or a combination of components services are included in package.
• The independent tour largely includes domestic air tickets, hotel room services, processing
of travel formalities, arrival and departure transfer and sightseeing.
• Other services include adventure sports, cultural events, and health related activities that
generally enhance value of the independent tour. The cost of the package tour is relatively
high as it includes most of the customized services.
• For example, the high-end or budget travelers prefer independent tours.
 HOSTED TOUR
• A hosted tour is handled by the ground operator or destination management agency as an
representative of wholesale tour operator for making ground services like cab, coach, guide,
confirmation of hotel rooms, tool taxes, entry tickets, etc as per the contract.
• A hosted tour is one where the local ground operator becomes the host to receive the guests
at the destination.
• This is a type of tour that brings in the concept of host-guest relationship that leads to
demonstrating the local culture and heritage to the guests.
• It provides a traditional reception upon the arrivals of guests at the airports or railways
stations.
 INCENTIVIZED TOUR
• Incentivized Tour is usually all-inclusive package tours that include all essential
components of a standard package tour.
• It is organized package tour that is conducted for employees with the sponsorship from the
business firms or corporate houses.
• It is an incentive or intangible reward for employees given periodically as per the
organization’s policy.
• For example, Thomas Cook, and SOTC promote corporate and MICE package tours
•
 FREEDOM TOUR

• Tour is arranged as per the demand of customers. It is a freedom of customers to select the
travel.
• The selection of places of interest and components of package tour is decided as per the
wish and budget of customers.
• This type of tour is designed for the working class people whose budget of expenditure is
limited and their choice of place is largely different from others.
• There can be small or large groups with maximum freedom of deciding how, when and
where to travel, stay and halt.
 REVIEW QUESTIONS
• 1.What do you mean by package tours?

• 2.Enumerate the classification of package tours.

• 3.Discuss the concept of freedom tours.

• 4.Make a list of package tours promoted by the tour operators.

• 5.Activity: Visit one tour operating company and one franchise and observe
the operation and functioning of package tour designing.
 • Components of Package:
• The elements of a package tour determine the sale of package tour in the travel market. The tour
ccpof Package
includes the services that are the sum total cost of related and complementary services.
Package
• Tour operators take the services from the airlines, hotels, cruises, railways, ground transport, and
event planner.
• In order to make a package tour more appealing and attractive, tour wholesalers examine the
buying ability of customers and the cost of components of the package tour, and finally add a
profit margin to arrive at the final price of the package tour.
• Generally, tour packages are determined by the market demand and trends and tour companies
try to reduce the cost of buying the services through aggressive negotiations and position the
packages at the right time to have the flexibility of giving price tag.
• Tour operators assemble components of services to enrich the experience of tourists. The
following component of services is delivered assembled in package tours. These are the
following elements of package tours.
 ELEMENTS OF PACKAGE
TOUR
• Accommodation:
• Accommodation is an important component of package tour and it constitutes almost one third cost
of package.
• There are primary and supplementary accommodation service providers. The star hotels, business
hotels, resorts and international hotels are the conventional accommodation operators with the
provision of providing room cum food services. The supplementary accommodation service
providers are lodges, guest houses, bungalows, service apartments, etc.
• Tour operators include the services of both the categories depending on the cost of package tours
and affordability of customers.

•
•
 SIGHTSEEING TOUR:
• Sightseeing is one of the most important elements of a package tour. It is an integral part
of a package tour as it offers conducted tours to the places of tourist interest in the cities.
• Tour operators arrange for more activities in the sightseeing or excursion tours.
• Each member of the conducted sightseeing tour is billed in such a manner that the cost of
cars or coach services is equally divided among them.
• Airlines: Air travel is an important component in the package tour segment. This includes
international and domestic flight tickets and on-board services. Tour operators can include
the first class, business class, economy class, excursion fare in the package tour to cater
different segments of customers.

• Railways: Tour operators include the train travel and other on-board services in domestic
sector.
• It is an important mode of travel to reach various off-the-beaten-track destinations as air
connectivity is limited in many countries.
• For example, the Indrail pass, Eurail Pass, Brital Pass and AMTRAK are booked in advance
to provide alternative and quickest mode of transport and different experience to the visitors.
• Car Rental Service:
• Luxury car service is an important element of package tour as it is primarily needed at the
time of arrival, departure and sightseeing.
• A wide range of luxury cars is customized for sightseeing and excursion tours.
• An annual contract with flat rate is done for the smooth operation of car rental services.
• Tour operators have now adopted the latest technology to make the schedule of cars.
• Luxury Coach Service: All the conventional package tours include the luxury coach
services provided it is a group travel.
• Each tourist coach is customized with elevated bucket seats, white window glass, micro
phone, air conditioning, and refrigerator. For example the KPN travels provides luxury
Volvo coach services for sightseeing and excursion trips.
 CRUISE OR FERRY SERVICES CRUISE LINERS THEMSELVES :
PROMOTE THE ALL-INCLUSIVE PACKAGES AND GET IT PROMOTED THROUGH THE WHOLESALE AND
RETAIL TRAVEL AGENT. THEY INCLUDE ROOM, FOOD, DRINKS, SIGHTSEEING, ENTERTAINMENT,
CASINO, ETC. ON–BOARD PACKAGE TOURS ALSO COMPRISE THE SERVICE OF FERRY OPERATORS SO
AS TO PROVIDE ALTERNATIVE AND SAFE CONVEYANCE SERVICE. FOR EXAMPLE, THE ROYAL VIRGO

OPERATES LUXURY CRUISE LINERS FOR HIGH-END TOURISTS ACROSS THE COUNTRIES .
• Event Services:
• Tour operators take the services the MICE operators for the purpose of booking venues,
food, conference kits, and pre & post-conference sightseeing programmes.
• Event management companies appoint tour wholesalers to sell the packages.
• Insurance:
• Tour packages are insured for compensation to the tour operators or guests in the event of
cancellation.
• Thus, insurance is included in the package tour. Health and luggage insurance are included
the package tour.
• For example, Bajaj Allianz and TATA AIG have customized travel insurance for the foreign
outbound travel for Indian travelers.
• Ground Handling Services:
• Apart from arranging the luxury cars and coaches, the services of guides and language
interpreters, entrance fees and transfer and drop are also included in the package tour.
• Miscellaneous Services:
• This service includes porter at airports and railway stations, tips to guides, interpreters and
room boys, entrance fees, gifts and welcome dinners.

• Review Questions:

• 1.Explain the components of package tours.

• 2.What are the different types of accommodation services?
• 3.What do you mean by ground handling services?
• 4.Find the difference between primary and complementary services in the package tour?
 • Customized or Tailor-Made Package and Group Inclusive Tours:

• Customized or Tailor-made package is designed for the Free Independent Traveler (FIT) or Group
Inclusive Tour (GIT).
• In most cases, packages are customized with personalized services for the FIT category of customers.
• The FITs make free movement of travel across destinations with the intention of exploring new
places and attractions as per their convenience.
• The FITs are novelty seekers and can manage in any hostile environment with basic facilities and
amenities.
• They mentally tune tune to get adjusted with the facilities as the exploring new places are the primary
activity.
• These groups consist of a minimum of two and a maximum of five members and prefer to luxury hotels
and resorts or stay in hostels, government guest houses, and paying guest houses and the bed-and-
breakfast scheme or the European Plan (EP) is preferred. Independent tourists generally shy away from the
crowded places and look for exclusivity and privacy.
• However, FITs can organize the tour on their own and ask the tour operators for selected services. The
business of FIT is operated to reach out the niche customers as it satisfies the lifestyle and travel behaviour
• Group Inclusive Travel (GIT)
• The GIT package tours are developed to include the beaten-track destinations and places of
interest are programmed keeping the time, capacity of group members and parking areas.
• This type of tour is mostly conducted with fixed itinerary and it is an escorted tour with
much highlight on common interest places.
• However, group tailor-made packages are made to satisfy interests and benefits group
members. There can be short-haul and long-haul travel in case of the GIT.
• The former is meant for the MICE activities and the latter is apt for the leisure and pleasure
activities. Furthermore, group tour packages are relatively cheaper as compared to the FIT
tour packages.
• There is bulk of sale of hotel rooms, airline seats, and coach services in group organized
package tours. The principal service providers provide comparatively higher discounts that
can be regarded direct profits of tour operators.
 • TOUR FORMULATION AND DESIGNING PROCESS
Tour Formulation & Designing Process
TTTTTTTTTTOUR Tour Formulation & Designing Process
• The business of package tours is not free from risks like season, rising price and socio- political
factors. At the same time, it is a high breakeven business when the socio-political and economic
environment is stable and conducive.
• Package tour is driven by the quality services along with competitive prices. In this regard, there
requires extensive market survey to find the demand trends and tour operators accordingly
formulate package tours to cater the market.
• Thus, methodical tour planning is essentially required to handle the risk factors and to improve the
quality of a package tour.
• The tour operator assigns the responsibility of designing and formulating package tour to senior
and experienced executives as the design of package tour makes the business and breaks the
business. It helps in achieving bumper sale in a record time.
• For example, the World Famous Tour (WFR) of SOTC and the Duniya Dekho of Cox & Kings
have become generic outbound package tour for Indian customers. These are the following steps in
tour design and selection process.
•
• It is a multi-stage process that helps the tour manager develop and formulate a new package
tour.
• First, the concept of designing a new package tour is taken a solid shape or form when
collective ideas and experiences are consolidated.
• However, field survey report is also assessed to understand the salability and sustainability
of package tour.
• Tour operators primarily collect the feedback from the guests in a structured questionnaire
with open-ended and close-ended questions.
• On the basis of recommendations, the area of operation of new package tour is given final
shape subject to the political, economical and social developments in a particular area.
• Thus, it is a combination of innovative ideas, feedback of tour guides and recommendations
of guests to develop package tour..
• The following are suggested processes through which package tour may be designed.
• Initial research on destination and source market clarifies much drawback of package tour
and takes corrective measures for enhancement the quality and appealing of tour.
• A well-structured itinerary is prepared with due considerations to several do’s and dont’s
during the tour.
• Selecting the destination companies and authorizing them with the ground handling
responsibilities.
• Vendors of primary and supplementary services are contacted and negotiated to
• obtain the best possible quotations.
• Costing of elements of package tours and pricing package tours is done carefully.
• Tour brochure is given final shape once the destination selection, negotiations with
• vendors and costing is completed
• Selling the package tour directly or through the retail travel can be done through a robust
reservation system.
• Marketing and sales promotion helps in reaching the target market.
• Operation of tour is carried out with the help of ground operators.
• Besides these broad stages of developing, marketing and operating the package tours, other
processes are implicitly associated in making the formulation and designing process complete.

• Review Questions:
• What are the tour formalities?
• Explain the designing process of tour packages.
• What are the formulation processes for developing a package tour?
• Why there is a need for systematic and planned approach for package tour?
•
•
 TOUR BROUCHER DESIGNING
• Tour brochure depicts the places of interest, types of services, nature of operation and
conditions.
• Information related to the mode of transport, accommodation, and other related services is
clarified in order to avoid ambiguity and confusion.
• Customers can get sufficient idea of booking the organized package tours. It is usually
written in simple and lucid language to describe the components of services and places of
tourist interest.
• Tour operators present the content in the brochure in a simplified form.
TOUR BROUCHER
• The introductory part of the brochure illustrates background and areas of tour operation.
• The subsequent pages highlight on the information related to arrivals, departure and
transfer, location of hotel with room services, transport, guide services, sightseeing and
cultural programmes along with suggested places to dine and shop for souvenirs.
• Do’s and don’ts are clearly stated to help guide the guests to make the tour more
enjoyable and memorable.
• Over and above, tour brochure clearly explains the inclusive and exclusive component of
services.
• Images of places of tourist interest, pictures of hotels, transport, and souvenir shops are
placed against the contents to arouse much interest to buy package tour.
• In nutshell, a tour brochure generally includes the booking form and booking conditions,
including meal plans and ground services.
• Overall, these pages contain a wide range of information that can help the service providers
at different points and customers understand clearly. Brochures are sent to the wholesale and
retail travel agents for sales promotion.
• Review Questions:
• 1.What is brochure?
• 2.Explain the importance of tour brochures
• 3.What are the skills needed to designing a tour brochure?
• 4. What are the stages of developing a tour brochure?
• Activity: Collect five different tour brochures comprising of short-haul and long-haul package tour
and read them carefully and present the unique features of these brochures.
•
TOUR PROGRAMMING AND ITS IMPORTANCE
• Each package is embedded with some appealing elements and the programmes or
events are planned in order to provide value-added services.
• Programming is nothing but an addition of services without cutting the prime
activities of sightseeing or excursion.
• Tour operators fine tune itinerary with attractive programmes during the tour that
makes the customers feel of worth buying the packages.
• When the package tour market is becoming larger and more buyers are happy to get
their vacation arranged with the professional tour operators, programming increases
the quality of package tour that leads to creating repeat buyers for the package.
• Programming comprises activities like learning photography, music, dance, painting, sculpting,
swimming, fishing, surfing, canoeing, rowing, trekking, cooking, cultivating, etc.
• Many visitors are interested to learn these activities as a lifetime experience. Tour operators
refer to the local calendars to find the fairs and festivals around the places of tourist interest
and include them in the itinerary.
• The following are the advantages of programming from both tour operators and customer’s
point of view.
• It is value for money for the customers.
• It enhances the quality of tour itinerary.
• It arranges the activities as per the needs and traits of customers.
• It is a business opportunities for the tour operators.
• It helps in building branding and positioning.
• It helps in catering the target market.
•
 • Review Questions:
• 1.What are the skills needed to design a tour brochure?
• 2.What is the importance of tour packages
• 3.Why programming is given much importance in package tour business?
• 4.Activity: Review the FIT and GIT packages or short or long haul packages and find
the scheduling of programmes.

PRACTICAL ACTIVITY:
• List out the main content of packages tour.
• Prepare a model package tour of your own.