MODULE 9

TOUR PACKAGES
 TYPES OF TOURS AND TOUR COMPONENTS

A Tour can be defined as any form of travel from place to place, with multiple
features that can be packaged and sold as a single unit.

In 1840’s a British individual, Thomas Cook organized a group of travelers for

a tour in England.

Presently, Canadian and US tour companies sell tours to more than 23 million
travelers each year..
One of the reasons why tours are so popular is that they in myriad forms and
can be organized to fit any traveler’s interests and budget.

There are basically two types of tours:

1. Custom designed tours

2. Pre-packaged tours which are further subdivided into:

 Independent tours
 Hosted tours
 Escorted tours
 CUSTOM DESIGNED TOURS
These tours are for travelers who desire the highest degree of control over all of
the elements of a tour.

Travel professionals usually create these tours by working closely with the client
to accommodate all the individual needs and requests.

A custom designed tour is commonly referred toast an F.I.T {Foreign

Independent Tour}. The term FIT is however used loosely to describe both
domestic and international tours.

Because FITs are tailor made for the individual, they are generally more
expensive to operate than the prepackaged tours. Also volume discounts that are
available in the pre-packaged tours are NOT available to an organizer of FIT’s.

FITs are usually organized for leisure travel; however, there is a growing demand
for the pre, post and family tours which can add a leisure component to a
business traveler’s trip.
 INDEPENDENT TOURS
A tour where participants travel independently without a group or guide.
Participants can depart and return on any day and can even adjust the length of
their stay to suit their individual needs and preferences.

Many independent tours provide only the basics such as round trip transport to
the destination, transfers from the airport or arrival point and accommodations at
a single hotel.

Frequently independent tours will include a car rental as part of the tour package.
Generally the car is economy or standard in class but the class can be upgraded at
additional expense.
Many independent tours will also give clients the option to select from a variety
of hotels ranging from budget/economy to luxury.
One popular type of an independent tour is a fly/drive tour: allows travelers to
visit multiple destinations during their trip and includes air transport, car rental
and lodging.

Independent tours offer tremendous flexibility and autonomy to the tour

participants. These tours are ideal for those clients who value the opportunity to
make their own choices and set their own schedules.
 HOSTED TOURS
Hosted tours offer travelers an opportunity to travel independently but also to
receive guidance and assistance from a host at each of the tour’s destinations.

Typically the host is a representative of accompany or ground operator who assists

participants with the planning and organization of their activities and other tour
arrangements. The host serves as the information specialist, facilitating the needs
and wants of the tour participants.

Clients in hosted tours often arrive separately from the other participants, although
on certain hosted tours they may arrive on a charter flight. Most activities are done
individually not as a group.

The host’s responsibilities varies from tour to tour, but generally the host will greet
each client at the hotel or airport, give them a brief orientation to the tour
components and destination and remain available over the course of the tour.

Hosted tours are ideal for travelers who want independence and flexibility with
respect to their itinerary and destination activities but still desire the onsite
assistance of a travel professional.
 ESCORTED TOURS
These tours are for travelers who desire an even higher level of on-site assistance
and structure.
Participants travel together as a group from the beginning to the end of the tour
and are always accompanied with a professional escort, also called tour manager,
tour director or tour leader.
The escort coordinates the group’s itinerary and activities and is responsible for
making sure that all aspects of the tour run smoothly.

Escorted tours commonly visits many destinations and as a result participants are
frequently on the move, unlike hosted and independent tours, escorted tours often
stop in several different locations throughout the tour.

The participants do not select the individual hotels during their stay but they may
have an option of selecting the level of accommodations and once selected all
participants stay in the same accommodation.
Escorts commonly provide a variety of information throughout the tour but at
other times local guides who are experts on specific regions will be utilized to
provide more detailed information {step on guides}.
Escorted tours are not ideal for clients who want independence and flexibility. The
group itinerary comes first before individual needs.
 PRE-PACKAGED TOUR COMPONENTS
Pre-packaged tour elements include:
1. Transport
2. Accommodations
3. Meals
4. Sight-seeing
5. Itineraries
TRANSPORT

Virtually all tours include transport as part of their package. Transport comes in
many forms: road, water, rail, air transport modes.

Frequently modes of transport can be combined e.g. fly/drive tours to achieve the
objectives of the tour.

Included in transport are transfers which are any mode of transport that shuttles
clients from their point of arrival to a hotel.
 ACCOMMODATION
Virtually all pre-packaged tours that are longer than a single day in duration
usually include some accommodations ranging from simple tents to luxurious
hotels and resorts.
On escorted tours participants stay in the same accommodation.

ITINERARIES
When considering tour itineraries, it is helpful to understand the basic guidelines:
{P.R.I.D.E}- Pace, Routing, Interests, Details and Energy.
SIGHT-SEEING
These are the attraction sites on the itinerary. Clients may have vouchers of entry
to the itineraries.
MEALS
A wide range of meal plans are available on pre-packaged tours such as:
1. European plan: no meals included. Clients pay for their food.
2. Continental plan: light breakfast of bread, jams, fruit, cereal, coffee, and tea.
3. Modified American Plan {MAP}: 2 meals in a day usually breakfast and
either lunch or dinner. Also called Half Board{HB}
4. American plan: 3 meals daily: breakfast, lunch and dinner. Also called Full
Board{FB}
5. Bermuda plan: full cooked breakfast but no other meals.
 ADVANTAGES OF SELLING TOURS
Advantages to the clients include the following:
1. Time Efficiency: Because many tours are planned and operated according to a
time schedule, they are very time-efficient. This means that a tour participant can see
more destinations in less time.

2. Increased Security: In a world of heightened security measures, increased safety

is a perceived value to travelers. Escorted tours offer travelers an extra measure of
comfort and protection due to the presence of the escort. This may be particularly
important to travelers who are touring a part of the world with which they are totally
unfamiliar
and in areas where they do not speak the language.

3. Ease and Convenience: Because on most tours the components are pre-paid and
packaged together, it makes arranging and understanding details of the experience
much easier for the clients than if they had to arrange the details on their own.

4. Cost Savings: Because tour operators and suppliers have access to tour
components at a wholesale cost, there may be a cost savings to the tour participants
depending on the size of the group. Don't assume that the smaller the group the
cheaper the price.
5. Less Time in Planning: Because many elements of a tour are prearranged, tour
participants spend less time planning their trip than other types of travelers.
6. Easier and Safer Niche Travel: For clients seeking a niche travel experience
such as river rafting, mountain climbing or an African safari, a tour simplifies the
details and affords the tour participants much greater safety and security than doing
the same itinerary on their own.
7. Social: For many travelers, tours offer a ready-made social situation with a group
of people, who by virtue of the fact that they are on the same tour are likely to have
similar interests.

Some of the benefits of selling tours to Travel Professionals include the

following:
1. Profit Potential: Because tours include a variety of travel components, each of
which will include an agent commission, selling tours offers a far more attractive
profit potential than just selling a piece of the travel arrangements such as air tickets
or accommodations.
2. Customer Relationship Development: A travel professional who sells tours, and
particularly one who accompanies the tour participants on some or all of the tour,
stands to develop more meaningful customer relationships than an agent who merely
sells a quick airfare. The travel professional will soon learn about their clients'
interests, hobbies and lifestyle and will be better able to meet their travel needs by
finding the right tour. An agent who sells the right tour package to the right client
will develop a loyal following and potentially increase their business through
referrals.
3. Repeat Business Potential: In general, customers buy products from
people they know and trust. The same is true of travel products. Because tours
offer a high level of customer satisfaction, clients who book tours from you
and are satisfied will be likely to request additional services from you in the
future.

4. Provide Real Client Value: Travel clients appreciate value and choice. As a
travel professional who sells tours, you can provide both value and choice to
your clients with a single product. By providing this service you are more
likely to gain the lasting confidence and trust of the client, which will
ultimately translate into additional revenue for you as well as a feeling of
professional pride. Once again, an agent's good
reputation will go a long way to increasing referrals.

TOUR BRONCHURES AND PRICE QUOTATIONS

Key Aspects of a Tour Brochure:

Tour brochures are essential part of the sales tool kit.

Tour brochures vary from simple one colour leaflets with basic information to
elaborate colourful booklets with detailed photographs, maps and related
materials.
Interactive websites are becoming more popular and are very useful in gaining
additional knowledge.

Travel professionals should be very familiar with the tour brochures, understand
the key elements and be able to transfer the knowledge to clients in a friendly and
efficient manner.

Consider the following ideas when assisting clients with brochures:

 Qualify your client- talk to clients to understand their needs and wants
 Offer clients one or two brochures that seem appropriate based on your
assessment of their needs and wants.
 Go over the important elements of the brochure and make sure they understand
all the key points.
 Encourage your clients to read and familiarize themselves with all aspects of
the tour.

NB: One way to make sure you cover all of the appropriate material in a tour
brochure with your client is to develop a tour brochure checklist.
 Tour Brochure Checklist

1. Cost – fully explain what is included in the tour price and what is excluded.
2. Itinerary – spend time with your clients to know their interests and understand
their desires.
3. Group size- be sure to ask your clients about the size of group they will be
comfortable with.
4. Pace – determine the appropriate speed for your clients by considering the
clients’ ages, health, interests and tastes.
5. Terminology – make sure clients understand the language and terminology
used in the brochure.
6. Single supplement- if a client is traveling alone make they understand about
single supplements.
7. Consumer protection- check to find out if the proposed tour is a member of
any organization that offers consumer protection plans.

8. Environmental sustainability-
9. Conditions – make sure you review the terms and conditions.
10. Questions – make sure you answer all of your client’s questions.
 Tour Brochure Price Quotation
Factors affecting the price of a tour:
1. Pre tour transport
2. Accommodation – type and quality
3. Sightseeing and attractions- type and number of attractions
4. Accommodation occupancy
5. Travel insurance

RESERVATION AND ACCOUNTING PROCEDURES

Tour Reservation Procedures

Tour reservations are normally made through telephoning or through the
agency’s computer reservation system. Reservations can also be done on the
internet [online}.

When making a tour reservation, cover the following details:

 Your full name and agency name
 The name and availability of the tour
 The dates of the proposed tour
 Full legal names, addresses, and relevant contact information
 Air transfer information
 Any special requests or situations.

Tour Accounting Procedures

Keeping track of both administrative and financial details of the tour bookings you
complete is important.
Tour operators have different policies and procedures regarding key administrative and
accounting procedures such as reservations, deposits, refunds and commissions.
It will be helpful to develop a tracking system that contains the following types of
information:
 Name and date of the specific tour booked
 Number of paxs
 Date passengers were booked on the tour
 Date and amount of initial deposit
 Date of the final payment is due
 Rates for various tour participants
 Document delivery dates
 Name and contact information for the operator’s representative
NB: Make a point of accomplishing the following three key tasks every time you make a
booking:
- Get a name
- Get a number
- Get it in writing

TOUR BOOKING CONDITIONS & LIMITATIONS OF LIABILITY

Tour Booking Conditions
a] Included and Excluded Tour features
-Examples features included:
1. Meals
2. Attractions
3. Transport
Unless a tour brochure states clearly that a feature is included, it is safest to assume that it
is not.
Examples of items that are frequently excluded by tour operators are:
1. Customs and immigration fees
2. Airport port charges
3. City taxes
4. Laundry services
5. Food
6. Beverages
7. Souvenirs and personal effects
8. Medical expenses
b] Deposit and payment schedule
- Many tour companies will require a deposit within 7 to 15 days of initial tour
reservation.
- The balance of the payment is generally due no later than 30 days to 45 days
before the departure date.

- After the key deadlines such as final payment have passed, the operator may still
accept reservations from prospective tour participants but they will generally
require payment in full immediately.

c] Cancellation and Refund policy

Cancellations may be initiated either the client or the tour operator and the
policies concerning cancellations are outlined in detail in the Tour Booking
Conditions section of the tour brochure.

There are several reasons why an operator would cancel a tour. These include:
 Severe weather conditions
 Political or social instability on the itinerary
 Labour shortages and strikes
 If there are no enough tour participants especially on escorted tours.
Sometimes only a portion of the itinerary will be cancelled. This may occur
at the initiation of the operator or supplier.

In either case, clients generally receive a refund for the missed portion of the
tour. It is more common however, for the operator to substitute an event or
feature of an equal value to compensate for the one that is not available.

If this means moving to a lower grade of accommodation or that of other

features of the tour are reduced in quality or quantity, the operator will
generally compensate the clients for the differences between the grades
and/or quality.

A client can initiate a cancellation. Typically once a tour is confirmed any

cancellation initiated after that date will incur a penalty.

The size of the penalty depends upon how close the cancellation is to the
departure date. In general, the further from the departure date, the less costly
it will be for the client to cancel the tour.
Status of Tour Brochure Fares and Rates
The cost of a tour may vary considerably during certain seasons and
during certain peak times.

Tour brochures will typically outline the differences in price due to

seasonality and other factors. It is important to call your client's attention
to these differences, as the price may vary significantly.

Other factors such as currency fluctuations can also affect the price of a
tour and most tour operators reserve the right to raise tour rates above
those published in their brochure, although most are reluctant to do so and
hedge their costing with a built in buffer.

In general, once final payment for a tour has been received by the tour
operator, the price of the tour will not change, even if the costs to the
operator change after that date.