TOUR OPERATIONS

MONIKA A. N. LABAUPA
DOT Accredited Trainer, Tour Guide,
TOO2
Agoo, La Union 2017
TOURISM CONCEPTS

What is Tourism?
What Comprises the Tourism
Industry?
What are Tourism Products
TOURISM CONCEPTS

What is Tourism?
Tourism
"Tourism comprises the activities of persons
traveling to and staying in places outside
their usual environment for not more than
one consecutive year for leisure, business and
other purposes.“ (UNWTO)
TOURISM CONCEPTS

What is Tourism
Industry?
composite of industries and entities;
both public and private;
involved in the planning, development,
marketing, sales, operation and evaluation
of destinations, products and services;
thatcater to the needs of the travelers,
both foreign and domestic;

THE TOURISM
INDUSTRY
The GOVERNMENT The PRIVATE Sector
Sector
(DOT) Transportation Companies
(PTPB) Lodging Industry
TIEZA)
( Food and Beverage
Industry
DFPI)
( Attraction and Activities
Industry
(LGU) The Travel Trade
Other National Agencies Other Private Sector
Entities
Financial Institutions
Educational and Training Institutions
 Responsible for the formulation of tourism
policies;
 Provides guidelines for the development of
destinations, and regulates the industry
 The sector is subdivided into the national
government entities, and the local government
units

GOVERNMENT SECTOR
 Department of Tourism (DOT)
 Tourism Promotions Board (TPB),
 Tourism Infrastructure Economic Zone Authority (TIEZA)
 Duty Free Philippines Corp (DFPC)
 Municipal, City and Provincial Local Government Units (LGUs) – Provincial, Municipal and
City

Five (5) Government Agencies That

Are Directly Involved In The Tourism
Industry:
OTHER NATIONAL
GOVERNMENT UNITS
 DPWH - Department of Public Works and Highways
 DTI - Department of Trade and Industries
PRIVATE SECTOR
 Principal industries directly involved in tourism
are:
 Transportation Industry
 The Lodging Industry
 Food and Beverage Industry
 Activities and Attractions Industry
 Travel and Trade
 Other Private Sector Entities
PRIVATE SECTOR
The Transportation Industry

 AIR. (Commercial Airplanes, Chartered, etc. Airports, air fields and

air strips)
 SEA – (Shipping, Cruising, fast crafts, water barges, small boats,
ports, pier, wharves)
 LAND. (Rail and road, terminals, bus depot, gasoline stations,
highways, railroads, roads, bridges)
 Oil Companies. ways built to service the needs of the motoring
public and travelers in general
THE LODGING INDUSTRY

 Hotels

 Resorts

 Motels

 All
Suite Hotels (apartels, hostels or full
serviced apartments)
 Other
Lodging Types (boarding houses, lodges,
homestays, condotels, spas and casino hotels.)
THE FOOD & BEVERAGE INDUSTRY

Restaurants (fast-food units, coffee shops,

Travel food service

(Institutional food service - in companies, hospitals, nursing homes and

so on is not considered part of the tourism industry)
THE ATTRACTIONS AND ACTIVITIES
INDUSTRY

Naturalattractions: botanical, zoological,

mountain, seaside parks
Man made attractions: historic sites,
prehistory, archaeological sites, cultural,
religious festivals, parks, zoos, etc.
THE ATTRACTIONS AND ACTIVITIES
INDUSTRY

 Leisure

 Recreation

 Entertainment
THE TRAVEL TRADE
travel agents and tour operators, also
referred to as intermediaries or middle
men, and the tour guides.
THE OTHER PRIVATE SECTOR
ENTITIES
 Media
 Event Organizers and related suppliers
 Tourism Organizations
 Educational Institutions
TOURISM CONCEPTS

What are
Tourism
Products?
TOURISM CONCEPTS
 MAIN PRODUCT
 (TOURIST
ACTIVITY)
AUGMENTED
PRODUCT
(i.e. accom, food,
etc)
CORE
PRODUCT
(EXPERIENCE)

TOURISM PRODUCTS
TOURISM CONCEPTS

What are the Types of Tourism?

1.Inbound tourism. Non-residents travelling in the
given country.

2.Outbound tourism. Residents travelling in

another country

3.Domestic tourism. Residents of that given

country travelling only within this country

4.Excursion. A short journey or trip, usually made for

pleasure, often by a group of people.
TOURISM CONCEPTS

Other Tourism Concepts

1.Tourism Attraction
2.Tourism Sites
3.Tourist Destinations
TOUR
OPERATIONS
CYCLE
TOUR OPERATION CYCLE

Tour
Operator
TOUR OPERATION CYCLE

Travel Agency
 department store of travel.
 It is a place where a person can secure information, expert
counseling and make arrangements to travel by air, sea or land to
any point in the world.
 The TMC can be defined as “an entity engaged in arranging and
selling transportation, accommodation, tours, trips for travelers.
TOUR OPERATION CYCLE

Tour FUNCTIONS OF TO’s :

Operator Conceptualizes plans &
(or tour company) is a develops TOUR PACKAGES.
wholesaler since it Negotiates with suppliers of
contracts the separate Travel Services.
travel components and
Assembles and integrates the
assembles them into one
package, which it sells to various travel components
the end user’s through into a single TOUR PACKAGE.
the travel agents/TMC Delivers the TOUR PACKAGE.
TOUR OPERATION CYCLE

Tour Operator
Sources of revenue: Classifications of TOs
1.) Variable mark-up based on o Local tour operator
contracted rate from suppliers.
o Domestic tour operator
2.) Seeking and negotiating for
cost savers and concessions.
o Inbound tour operator
3.) Commission from souvenir o Outbound operator
shops & sales of optional tours.
TOUR PACKAGE

Tour Package
The product of the
Tour Operator
It is a combination of
two or more travel
components.
TOUR PACKAGE

Classification of Tour
Packages
Regular Tour Package – Pre-packaged
Ad Hoc Tour Package –Tailor-made
TOUR PACKAGE

Types of a Tour Package

• Ground Arrangements.
• Land Arrangements
• Inclusive tour packages
• Inclusive escorted tour package
TOUR PACKAGE

Components
of a
Tour
Package
Components of a Tour Package

Transportations
air, sea or land to and from
a point of origin to a
destination and/or vv
Components of a Tour Package

TRANSFERS
transportation services from a
destination’s gateway
Components of a Tour Package

Sightseeing tours.
are a combination of transportation within the destination to
sights and sites of interest, tour guide’s services, entrance
fees, entertainment or activities and sometimes, snacks and
meals.
Evening Tours
Full-day sightseeing
Half-day sightseeing
HoP-on/Hop-off tours
Seat-in Coach Sightseeing
Components of a Tour Package

Accommodations
consists lodging and meals in the lodging
establishment. Hotels, Resorts,
establishments that compline lodging with
gaming or other leisure activities
Components of a Tour Package

Tour escort
refers to the services of an individual who
travels with the clients from the point of
origin and back, and acts as the manager
of the tour group. This person is also
known as the Tour Leader.
Variables of Tour Package

• Duration
• Destination.
• Category of Accommodation
• Meal Plan
• Mode and Class of
Transportation.
TOUR
OPERATIONS
CYCLE
TOUR OPERATION CYCLE

Definition of Tour Operations

The 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 set objectives.
TOUR OPERATION CYCLE

The Tour Operations Cycle

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) Tour Accounting
9) Evaluation.
TOUR OPERATION CYCLE

The Tour Operations Cycle

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) Tour Accounting
9) Evaluation.
 processof determining the objectives
to be achieved
 whether these involve customer
satisfaction, destination and
community endorsement,
organizational promotions or financial
gain.

1) TOUR PLANNING
process of building an itinerary and
identifying (sights to see and schedule)
selecting the best and appropriate
suppliers

2) ITINERARY DEVELOPMENT
 is the process of negotiating and collating
from a set of identified suppliers rates
 Contractedrates are discounted by as
much as 30% to 50% off the published
rates.
 Contracting also includes the negotiation
of favorable terms and conditions.

3) CONTRACTING RATES
determining the costs of the
various components, activities or
services included in the tour
package, depending on the
number of travellers availing of
the package.

4) COSTING AND PRICING

 These
are prepared for Ad Hoc Tour
Packages.
 These are prepared based on a
required minimum number of
participants and in accordance with
the specific activities, inclusions
and requirements of the client.

5) QUOTATIONS AND
PROPOSALS
 Process of placing advanced requests for
available space or services
 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 arrangements
are to be made when confirmations
cannot be obtained from the preferred
suppliers.

6) RESERVATIONS AND
CONFIRMATIONS
over the actual delivery of
services, and all activities of the
travellers from the moment of
arrival to time of departure.

7) FIELD OPERATIONS
(TOUR CYCLE)
involves the preparation of
invoices for deposit payments
and balance due and the
collection of payments due from
the clients, preferably prior to the
arrival and the payment due to all
suppliers.

8) BILLINGS AND ACCOUNTING

9) EVALUATION
 compares the organization’s performance with actual results.
 Financial results are measured through gain or loss.
 The success or failure of destination or community promotions is
measured by the increase or decrease of visitor arrivals.
 Corporate image is enhanced by the degree of awareness and
interest in the company’s product and services.
 Customer satisfaction is measured by seeking feedback from the
clients that provide comments regarding the degree their
expectations were met.
 Failure to meet expectations of the clients means failure of the
package. The best endorsement is word-of-mouth testimonial or a
real-time positive blog. Nothing beats those.

TYPES OF TOURISM

Adventure Tourism –
travel for the purpose of
challenging one-self in a
specialized skill acquired. It is
divided into extreme (high risk) and
soft (low risk) adventure. It
involves a degree of training and
the element of personal risk.
TYPES OF TOURISM

Agri-Tourism –
“observation and
participation” in agricultural
farms and farming crops and
fruits.
 Thistype of tourism extends
to the breeding of cattle, visits
to hog and poultry farms and
fishponds. Farm immersion
stays are very popular in this
type.
 TYPES OF TOURISM

Culinary Tourism
– can be broadly defined as an
“eating and drinking” holiday
along with the study of food and
beverage activities in a relaxed
environment. It involves social
contact with individuals of similar
likes and tastes.
TYPES OF TOURISM

Cultural Tourism
– is characterized by guided tours that
include tasting the local cuisine and the
viewing and participating in folk dance
performances and the demonstration,
purchase of local arts and craft, and the
observance of local religious rites and
ceremonies.
TYPES OF TOURISM
Environmental or Eco-Tourism
– is travel for the purpose of observing and living with
indigenous people. Environmental tourism draws
travelers to distant and not easily accessible areas , to
view the flora and fauna of the locality, interact with the
native tribes and admire the natural and environmental
attraction. “Going back to nature” travel to appreciate
nature falls under this category.
Health and Wellness Tourism –
combines the well – being of the person with
healthcare maintenance alongside leisure and
relaxation aimed at rejuvenating a person:
mentally, physically, spiritually and emotionally.
This includes the enhancement or renovation of
one’s physical attributes.
Historical Tourism -
is characterized by guided tours to
monuments, museums and light and sound
shows that are representative of important
historical events. Typically, these attractions
are located near urban centers, and are the
mainstay of mass tourism.
Religious Tourism –
is travel for spiritual renewal and to
experience and observe the religious
practices of a locality. Typical
activities include participation in
religious rites, audiences with
religious and spiritual leaders and
firsthand exposure to sites of religious
importance.
Medical Tourism
– is defined as a health trip
for ‘cost effective’ private
medical care in collaboration
with the tourism industry for
patients needing surgical
and/or other forms of highly
specialized treatment.
Recreational Tourism
– is participation in light sports,
indoor or otherwise, and social
contacts in a relaxed
environment. Travel of this
category is for the so called
leisure traveller.
 TOURISTS

TOURISTS PROFILE