WE TOUR Project Course 1 - Module 5 - Tour Operating

1. TRAINING PROGRAM COURSE 1:
MARKETING AND MANAGEMENT
IN TOURISM
MODULE 5: TOUR OPERATING

2. Tour operator plays a central role in the tourism industry. According to the UNWTO Glossary of
Tourism Terms – Tour Operator is a person or company which creates and/or markets inclusive
tours and subcontracts with suppliers to create a package.
According to the Glossary of statistical terms developed by international
organizations such as the IMF, OECD, Eurostat, and ILO -
Tour operators are also companies, that combine two or more travel
services (e.g. transportation, accommodation, food, entertainment,
culture exploring, sightseeing) and sell them through travel
agencies or directly to end consumers as a single product
(called a package tour) at a global price.
Who is Tour Operator?

3. What is a tour?
Tour is any pre-arranged journey to one or more destinations, which the main motivation is to
discover, get to know and study various places and attractions, travel for a certain period, with a
specific purpose and along the route provided by the tourist.
Types of tours:
• Adventure tour
• Themed tour
• Most special interest tours
• Pre- and post-trip tours
• Incentive tour
• Independent tour
• Ethnic tour
• Special event tour , etc.

4. What is a tour package?
Tour package is a combination of several travel components provided by different suppliers, which
are sold to the consumer as a single product at a single price.
The main type of tour package services includes
a pre-arranged combination of elements, such as:
• Air
• Travel insurance
• Transfer services (car rental)
• Hotel
• Sightseeing and social events
• Sold at an all-inclusive package price

5. Product development and diversification
The product development process encompasses all steps needed to
take a product from concept to market availability. This includes
identifying a market need, researching the competitive landscape,
conceptualizing a solution, developing a product roadmap, building a
minimum viable product, etc. The product diversification process
addresses developing new products for new markets, to achieve
business growth.
Product development and diversification require the work and input of
many teams across a business, including development, design,
marketing, sales, finance, and testing.

6. Creating resource database
The term tourism resource describes natural and man-made attractions, infrastructure, services, and
the conditions that attract tourists to an area and may contribute to the formulation of a tourism
destination. Tourist companies create a resources database as soon as they are created. They use a
database service provided by web services. The database differs from other databases as it includes both
domestic and international tourists. The five vital components of the tourism system are:
• Attractions
• Accessibility
• Accommodation
• Amenities
• Activities , etc.

7. Identifying USPs and UBRs
In the tourism business the most important are USP (unique selling proposition) and
UBR (Unique Buying Reason) before tourist companies successfully reach customers,
there is a need to identify what makes their business different.
USP - Unique selling proposition is a sustainable,
competitive edge a product has over other products.
Unique Buying Reason (UBR) is to think from sales,
sales itself and with that to think from the unique points
which sell your product(s) or service(s) to the customer
are central to USP (Unique Selling Point), but with UBR
(Unique Buying Reason) it's the purchase and therefore
the customer and his or her needs what matters.

8. Developing tour products (packages)
The main task of any business is to create a product that the buyer needs
and is willing to pay for, so one of the most important factors when working
on a new product is to identify the client and constantly communicate with
him to study his preferences and get feedback. Should be taken into
account when designing a tourism product following:
• Be authentic and should reflect the unique attributes of the destination;
• Have the support of the host community;
• Respect the natural and cultural environments;
• Be different from the competitors, avoiding copying developments
blindly;
• Be of sufficient scale to make a significant economic contribution, but not
very large to create high economic leakage.

9. The tourist companies and clients often spend time hammering out the details of a contract to ensure
that everyone's interests are adequately covered in advance of a final contract.
Making proposals, how to close deals, the value of email confirmation
Making proposals- Tour operators make proposals of service agreements
offer their customers contracts, that satisfy various tourism-related,
including the smallest details of the tour, such as hotel, accommodation,
meals, transportation, etc.
In order of importance, they are as follows:
• Tour participant agreement
• Host agency agreement
• Ground handler or destination management company (DMC) agreement
• The tourist guide contracts
Contracting

10. How to close deals
Closing the deal is the most important part of the sales cycle, which requires tour operators (or sales
professionals) to be proactive and adopt strategies that work. One of the best ways to reach the end
is to prepare a plan. Also, it requires the following steps:
• Conducted research
• To talk budgets and timeline
• To offer solutions
• Handle objections
• Ask for the sale
• Set up the next steps

11. Value of email confirmation
A confirmation email is a transactional email that is sent to a
customer with whom the company has established contact after they
complete a specific action or meet a specific condition.
The tourist companies use an online ordering system to purchase or
sell products/services from the website, they had specialized systems
and the connections to book the travel as well as accommodations
packages and perks, they get or send a confirmation email, so they
know the order went through properly and when they can expect it
to be fulfilled.

12. The pre-contract
The pre-contract is a deed that summaries all the conditions of
sale established between the tour company and the client:
reservation contract, price of the service, conditions precedent and
order cut-off date. The pre-contract sets all the legal and
economic conditions of the future deed, as well as company
commitments and the client.
All pre-contracts must contain:
•Identities of services (incl. travel/accommodation packages and
perks);
•Sale price;
•Conditions precedent (varying according to the case);
•Date of exercise and services.

13. Contracts and attachments (what should be included)
A contract, in the simplest definition, is a legally enforceable agreement between two
or more parties, that wants to promote goods or services. The agreement may be to do
something or to refrain from doing something. Usually, consumer contracts are
standard contracts. The making of a contract requires the mutual assent of two or
more persons, one of them ordinarily making an offer and another accepting. If one of
the parties fails to keep the agreement, the other is entitled to legal redress.
The contract documentation under contracts tourism comprises:
• The form of agreement
• Conditions of contract
• Contract data
• Prices, activities schedules, bill of quantities
• Works information
• Site information

14. Added value for Tour operator
Value-added is the additional feature or economic value that a tourism company adds to its products
and services before offering them to customers. Adding value to a product or service helps companies
attract more customers, which can boost their revenue and profit, also the results show that most
value-added services are perceived to be most important in the search and/or purchase phase and that
no value-added services are perceived to be most important in the post-consumption phase. The tour
operator can process these value-added components:
•Complimentary snacks or water;
•Contactless waivers and check-in options;
•Icebreaker questions;
•Maps or virtual links send the day before;
•Options for seeing the city in the best way possible;
•Sightseeing tips and top locations depending on the length of their trip.

15. Pricing
According to the Glossary of tourism terms UNWTO - Pricing is the decision-making process of
ascertaining what price to be charged for a given tour once total costs are known.
When drawing up a pricing strategy to attract customers, tourism companies (introducing brand
new products or services) should be considered.
• Market penetration pricing
• Premium pricing
• Price skimming
• Economy pricing
• Bundle pricing
• Value-based pricing
• Dynamic pricing

16. International regulations
Due to International regulations the package travel regulations are a government-
created set of regulations under the package travel directive that protects consumer
booking package holidays and linked travel arrangements. All tourism-related
businesses that provide two or more of the following components, transport,
accommodation or other tourist services, must comply with the requirements of the
directive.
National regulations
National regulations and national legislators, and regulate tourism management in
terms of relationships between the state, municipalities, and other entities in
tourism-related activities. Governments usually determine state policies in the
sphere of tourism. Then state institutions use their powers to execute state policies
and to create conditions for its development.
Package travel regulations

17. Tour operators a significant role and are a key factor in the success of
the tourism industry.
Responsibility
One of the main duties and responsibilities of a tour operator is
developing tour packages and itineraries for a variety of individual
clients and groups.
Tour operators are involved in the planning, development,
promotion, administration, and implementation of tourism products,
overseeing all the day to-day tasks and controls, books, and devising
the whole trip.
The role and significance of tour operator

18. Service
The main function of a tour operator is to organize the services
being provided to the customer, modify tour packages, provide
tourist assistance, contract and negotiate with other vendors,
handling of arrival and departure procedure.
In addition, tour operators plan and organize local package tours
and establish operating guidelines for the tour, manage tour
budget escorting the tourists, provide market information, costing
and pricing package tour and negotiate with suppliers of tourism
products such as hotels, airlines and provide the best possible price
to the tourist.

19. Providing real experience
Experiences in the travel and hospitality industries are built on creating
experiences. The tour operator is the brains behind the beauty of vacation
and they leverage their expertise and resources (provider databases or
technology like tour operator software).
Travel and hospitality companies have more touch points with customers,
allow companies to differentiate themselves, and earn customer loyalty at
virtually every touch point, in a way that puts their brand top of mind when
the customer is making a travel or hospitality purchasing decision.
The experience at the destination is the main component of the visit and
typically includes various kinds of services and activities (e.g. sightseeing,
leisure shopping, accommodation, and local travel) as well as varying levels
of contact with the local population.

21. TRAINING PROGRAM COURSE 1: MARKETING AND MANAGEMENT IN TOURISM
MODULE 5: TOUR OPERATING
Contents
Who is Tour Operator?------------------------------------------------------------------------------------2
What is a tour? ---------------------------------------------------------------------------------------- -----2
What is a tour package? ----------------------------------------------------------------------------------3
Product development and diversification------------------------------------------------------------3
Creating resource database-----------------------------------------------------------------------------4
Identifying USPs and UBRs-------------------------------------------------------------------------------5
Developing tour products (packages) ------------------------------------------------------------ -- -6
Making proposals, how to close deals, the value of email confirmation--------------------7
How to close deals----------------------------------------------------------------------------------------8
Value of email confirmation----------------------------------------------------------------------------9
Pre-contract information--------------------------------------------------------------------------------9
Contracts and attachments---------------------------------------------------------------------------10
Pricing ---------------------------------------------------------------------------------------------------- -11
Package travel regulations----------------------------------------------------------------------------11
The role and significance of tour operator -------------------------------------------------------12
References------------------------------------------------------------------------------------------------12

22. Who is Tour Operator?
1) Definition of Tour Operator
Tour operating plays a central role in the tourism industry. In most cases, the definition of a tour
operator is different. According to the UNWTO Glossary of Tourism Terms -Tour Operator is a
person or company which creates and/or markets inclusive tours and subcontracts with suppliers
to create a package.
According to the Glossary of Statistical Terms developed by international organizations such as the
IMF, OECD, Eurostat, and ILO - Tour operators are also companies, that combine two or more
travel services (e.g., transportation, accommodation, food, entertainment, culture exploring,
sightseeing) and sell them through travel agencies or directly to end consumers as a single product
(called a package tour) at a global price.
2) What is a tour?
According to the UNWTO Glossary of Terms and International Recommendations - A tour is any
pre-arranged journey to one or more destinations, which the main motivation is to discover, get to
know and study various places and attractions, travel for a certain period, with a specific purpose
and along the route provided by the tourist. According to the other definition, a tour is a journey
for a specified period and with a defined purpose and route that is provided by a tour package.
There are several types of tours. We distinguish between individual and group tours. First of all, in
the process of organizing each tour, it is important to have a close relationship with the customer,
and take into account his requirements, according to which the operator forms a tour package and
offers it to the customer. There are the following types of tours:
• Adventure tour: a tour designed around an adventurous activity such as rafting or hiking;
• Themed tour: a tour designed around a specific theme such as fall foliage, also a special
interest tour designed to appeal to clients with curiosity or concern about a specific subject;
• Most special interest tours provide an expert tour leader and usually visit places and/or
events only relevant to that interest;
• Pre- and post-trip tours: optional extension packages before or after a meeting, tour or
convention;
• Incentive tour: a trip offered as a prize, particularly to stimulate the productivity of
employees or sales agents, or the business of operating such travel programs;
• Independent tour: an unescorted tour sold through agents to individuals. For one price, the
client is guaranteed air travel, hotel room, attraction admissions and (typically) a car rental.
• Ethnic tour: tour designed for people usually of the same heritage travelling to their native
origin, or a destination with ethnic relevance
• Special event tour: a tour designed around a particular event, etc.

23. 3)What is a tour package?
The Tour package is a combination of several travel components provided by different suppliers,
which are sold to the consumer as a single product at a single price. The main type of tour package
services includes a pre-arranged combination of elements, such as air, travel insurance, transfer
services (car rental), hotel, sightseeing, and social events put together and sold at an all-inclusive
package price.
Before compiling a package, the tour operator is obliged to make the following steps/actions, such
as:
• Checking an updated weather forecast to ensure there are no surprises on the day;
• You'll probably need to contact clients about practicalities, so also ask about any
specific needs or particular wishes for the trip;
• Check what pace your client expects - is this a relaxed or intensive trip?
• What kind of route can they cope with physically?
• Agree on the pick-up point and length of the tour;
• Advise them on clothing and equipment for the weather and itinerary;
• A fully stocked first aid kit (toilet paper, soap and spare washing water) – your guests may
forget;
• A topographical map of the area you're visiting, and be familiar with it;
• Field guidebooks (on plants, reptiles, etc.)
Product development and diversification
Tourism is an opportunity for business development and job creation, as well as for stimulation of
investment and support for local services with the aim of customer satisfaction. The product
development process encompasses all steps needed to take a product from concept to market
availability. This includes identifying a market need, researching the competitive landscape,
conceptualizing a solution, developing a product roadmap, building a minimum viable product, etc.
When a company reaches a certain point in its evolution, founders, investors, and executives often
think about planning and implementing a growth strategy, such as diversification. The product
diversification process addresses developing new products for new markets, to achieve business
growth. Product development and diversification require the work and input of many teams across
a business, including development, design, marketing, sales, finance, and testing. Diversification is
used by businesses to help them expand into markets and industries that they haven't currently
explored. This is achieved by adding new products, services, or features that will appeal to the
customers in these new markets. By expanding their reach and appeal, businesses can explore new
avenues for sales, and in turn, have the potential to vastly increase their profits.
In addition to achieving higher profitability, companies choose to diversify for a variety of other
reasons. For instance, diversification can also allow a company to minimize the risk of an industry
downturn, it can boost brand image, and it can also be used as a defense mechanism to protect a
company from strong competition.

24. 1) Creating resource database
The term tourism resource describes natural and man-made attractions, infrastructure, services,
and the conditions that attract tourists to an area and may contribute to the formulation of a
tourism destination. Tourist companies create a resources database as soon as they are created.
They use a database service provided by web services. The database differs from other databases
as it includes both domestic and international tourists; and it contains data, for the most important
destinations, data at the national level as well as at lower administrative levels. For this purpose,
the information is posted on the Website which includes links, that offer a variety of information,
technical assistance, and resources that help further the initiative's goals. Also, many tour
operators have specialized systems focused on resources and connections to book the travel as
well as accommodations. The assembly of primary tourism products varies with destinations. There
are niche, mass, integrative and parallel destination product features.
A successful evaluation of the tourism activity presupposes the extensive examination of certain
elements of the tourism product itself (expressed as characteristics of supply, demand, and the
organization of the tourist market), along with a series of parameters related directly to the
tourism products (effects), and indirectly to its implications for the destination (impacts). That’s
why the tour operators should search destination before travelling to familiarize themselves with
the activities available in the place, where the client is interested to go, which helps to plan a tour
itinerary. They are also active and bring value to their clients by ordering many services at
wholesale prices and creating their own travel/accommodation packages and perks.
Tourism products include all services or experiences that are offered primarily to tourists in the
destination they are visiting, such as accommodations, restaurants, shing trips, hunting excursions,
aurora tours, sightseeing trips, museums, cultural centers, arts and crafts stores, or Indigenous
cultural experiences. The quantity, variety and quality of the elements of tourism supply compose
basic parameters that contribute to the success of the tourism product of a destination and
consequently influence its performance but also its impacts at the destination. Tourism product
development means bringing new and innovative products, experiences, and services, to the
market, which the tour operators suggest for tourists.
The five vital components of the tourism system are:
• Attractions- comprise natural attractions (landscape, seascape, beaches, and climate), built
attractions (historic and /or new townscape as in newly built resorts and purpose-built
attractions such as theme parks), cultural attractions (presentation of history and folklore
organized as festivals and pageants, museums, theatre), and social attractions (opportunities
to meet with, or encounter the residents of destinations, and experience their lifestyle, to
some extent);
• Accessibility - access is a subject of transport infrastructure and transport technology. Whilst
transport infrastructure includes airports, harbors’, motorways and rail networks, transport

25. technology becomes important in the form of costs of travel and the time consumed in
reaching the destination.
• Accommodation - means any facility consisting of two or more rooms or dwelling units
providing lodging and other accommodations to the public, such as tourist courts, tourist
cottages, tourist homes, trailer parks, trailer courts, motels, motor hotels, hotels, and any
similar place by whatever name called and any food, beverage, laundry, recreational or other
facilities or establishments operated in conjunction therewith.
• Amenities- are structures that need to be built to cater for tourists (hotels, banks, post offices,
shops, car hire.)
• Activities - are many different types of tourist attractions and other related tourism ventures
and meet the needs of tourist who are travelling for pleasure or on business carried out for
purposes of a touristic nature. All types of tourist attractions make a valuable contribution and
play an important role in the tourism industry. Activity tourism generally combines: walking
and hiking, cycling and mountain biking, climbing, trekking and mountain biking, waterfalls,
forests, sing, sports – cricket, football, diving, swimming, golf, unique festivals: carnival, crop-
over, jazz festival, exhibitions – crafts &trade, conferences – medical, educational, trade,
commerce, or business, etc.
2) Identifying USPs and UBRs
In the tourism business the most important are USP (unique selling proposition) and UBR (Unique
Buying Reason) before tourist companies successfully reach customers, there is a need to identify
what makes their business different.
USP - Unique selling proposition is a sustainable, competitive edge a product has over other
products. USP is one of the main concepts of marketing, the main distinguishing mark of business,
and what makes your business and its products or services different. A unique selling proposition
based on the two most important words - "benefit" and "different" and radically different from
competing proposals.
It's what you offer that no one else does in your market - whether that's higher quality, a lower
price, a better customer experience or new technological innovation. A strong selling proposition,
well communicated, will help customers quickly understand what your business offers and why
they should choose you over the competition. If you can't identify your USP, you'll have a hard
time convincing prospective customers to buy from you instead of your competitors. It's not
advisable to change your unique selling proposition too often, but it is important to keep it fresh.
Watch out for any shifts in trends or competitors that could undermine your USP. The business
image should relate to your unique selling proposition (USP) or Unique Buying Reason (UBR) and
customer values.
What is your Unique Buying Reason (UBR)? - This is to think from sales, sales itself and with that
to think from the unique points which sell your product(s) or service(s) to the customer are central
to USP (Unique Selling Point), but with UBR (Unique Buying Reason) it's the purchase and therefore

26. the customer and his or her needs what matters. A Unique Buying Reason (UBR) is why a customer
would want to purchase your product or service. Unlike the more well-known term USP (Unique
Selling Point), where companies are central, UBR is thought of from the customer's needs.
Something that fits this time. The market is more and more focused on the customer. Well-
defined UBRs can give customers or prospects that last push that makes them choose right for you.
You prefer to determine the buying motives through thorough research. Only with objective
customer research, you can and out the actual motives. The ultimate goal of UBRs is to respond to
it and get more customers, orders and assignments. But whoever is smart also uses them to
formulate texts for websites, and brochures. However, the tourism business must look at
everything from a customer perspective and that’s why call it the unique buying reason, or UBR. To
analyze your business, it is helpful to start with the following questions:
• Which of my products/services are performing best?
• What is my average spending per customer?
• Which markets/segments are generating the most revenue for my business?
• What proportion of my customer base is repeat business?
• During which times of the year does my business perform best / worst?
3) Developing tour products (packages)
The main task of any business is to create a product that the buyer needs and is willing to pay for,
so one of the most important factors when working on a new product is to identify the client and
constantly communicate with him to study his preferences and get feedback. Tourists have ever-
changing demands that the tourism product is required to satisfy for the survival of the tourism
industry.
A tourism product is a bundle of activities, and benefits that constitute the entire tourism
experience, that can be offered to a market for attention, acquisition, use, or consumption that
might satisfy a want or need. It includes physical objects, services, persons, places, and
organizations. The tour package bundle consists of five components: destination attractions,
destination facilities, accessibility, images, and price. A tourism product can be of any type from
cultural, educational, recreational, heritage site, or business hub. The tourism product is not just
the presence of all five elements but it is also the interaction of these elements among themselves.
Should be taken into account when designing a tourism product following:
• Be authentic and should reflect the unique attributes of the destination.
• Have the support of the host community.
• Respect the natural and cultural environments.
• Be different from the competitors, avoiding copying developments blindly.
• Be of sufficient scale to make a significant economic contribution, but not very large to create
high economic leakage.

27. Tour packages are the core product of tour operators, and their business results largely depend on
the success in the designing and sales of such products, they analyze different elements of tour
packages, aiming to determine the level of significance of different benefits, to offer tourists. Tour
operators provide services to tourists by selling package tours and by organizing travel. Package
tours may be defined as a combination of prepared services offered at a closed price, which
includes at least transport and accommodation. Save for specific cases, package tours are usually
sold by tour operators or retail travel agents. Package tours have traditionally been referred to as
the domain of mass tourism. In modern tourism, package tours are highly individualized and
customized products which are designed for a narrowly targeted market niche. One of the
elements of the package tours is the travel price reduction, which is an extremely relevant benefit
for tourists. Tour operators have a relatively high negotiating power which they can exploit due to
economy of scale (the number of passengers they serve), as well as the possibilities of advance
payment for services to hotels and other participants, which enables them to obtain significantly
lower prices in the market Benefits for tourists included in package tours, the core product of tour
operators, ensure a stable operation of their businesses.
Contracting
The tourist companies and clients often spend time hammering out the details of a contract to
ensure that everyone's interests are adequately covered in advance of a final contract.
1) Making proposals, how to close deals, the value of email confirmation
Making proposals
Tour operators manage the tour from the beginning to the end of the tour. They make proposals of
service agreements or general service agreements and offer their customers contracts, that satisfy
various tourism-related, including the smallest details of the tour, such as hotel, accommodation,
meals, transportation, etc. Tour operators are also responsible for complying with all laws, rules,
and regulations applicable to the activities of customers and the tours provided. To start your
business and protect yourself as much as possible, the tour operator needs to make up four types
of contracts. In order of importance, they are as follows:
•Tour participant agreement: This is the contract that the tour operator should have with each
client. It contains payment and cancellation terms and many other important disclosures, releases,
and the like.
•Host agency agreement: tour operator will enclose standard IC agreements and travel agency for
bookings to obtain higher commissions or better net rates than can get on the client's own. The
agency will become the host agency and the tour operator will be an independent contractor of
the host.
•Ground handler or destination management company (DMC) agreement: In addition to booking
major tour elements such as air and lodging, the tour operator will be contracting with suppliers at
destinations for services such as tour vehicles, group meals and local guides. Tour operators should

28. try to have those sign contracts that require the ground handler or DMC to indemnify and defend
the tour company against claims related to their services.
•The Tourist guide contracts: Unless tour operators are personally leading every tour, they will be
retaining experienced guides who lead the tours or at least help as a representative of the tour
company. The tourist guide has the requisite skills, knowledge, and ability to deal with inter alia
guided tours, transfers, and transport. The tourist guide is required to always give his undivided
loyalty to the tour operator when performing services for the tour operator and to work in the
interests of the tour 0perator and uphold its image at all such times. It is always a good idea to
contact an attorney to review the contract to ensure your interests are covered and that no
important items have been left out.
How to close deals
Closing the deal is the most important part of the sales cycle, which requires tour operators (or
sales professionals) to be proactive and adopt strategies that work. One of the best ways to reach
the end is to prepare a plan. Also, it requires the following steps:
• Conducted research
To be successful, the tourist companies need to evaluate both their company and the
prospect's company, that gain an understanding of what the company needs and how their
products or services can help them reach their objectives.
• To talk budgets and timeline
This should be done before providing prospects with a demo of the product or service. This
will give the company an idea of whether they are ready to buy now or somewhere down
the line.
• To offer solutions
Showing prospects what a tour company can do for a prospect company can do more in the
long run because your conversation will be tailored to their specific needs.
• Handle objections
Potential clients will likely have concerns or objections. Show them you understand their
objections. This can help them feel more connected to you.
• Ask for the sale
If you feel the prospect's questions are answered and they have an understanding of the
solutions you provide, you should ask for the sale.
• Set up the next steps
If you succeed, finalize paperwork and provide the customer with the information they
need to properly use your products and services. If you failed to close the deal, you should
set up a follow-up meeting to keep nurturing your lead.
Value of email confirmation
A confirmation email is a transactional email that is sent to a customer with whom the company
has established contact after they complete a specific action or meet a specific condition.

29. Customers love to receive confirmation e-mails because they feel good being assured about
something, they of ordered.
Communication is the key here if you want to run a successful online business. When companies
make things certain with confirmation emails, customers are put at ease and they're likely to stay
with them longer. When someone subscribes to your mailing list, they have a hierarchy of needs
they expect you to meet. They want: Respect, Function, Value, and Remarkable content. The
tourist companies use an online ordering system to purchase or sell products/services from the
website, they had specialized systems and the connections to book the travel as well as
accommodations packages and perks, they get or send a confirmation email, so they know the
order went through properly and when they can expect it to be fulfilled. If you treat your
confirmation email as a marketing email, you can open doors to repeat sales, up-sales, and cross-
sells.
2) Pre-contract information
Customers are legally entitled to be given certain information before entering into a finance
agreement, therefore travel companies prepare a pre-contract according to the client's request.
The pre-contract is a deed that summaries all the conditions of sale established between the tour
company and the client: reservation contract, price of the service, conditions precedent and order
cut-off date. It also includes the promises of commitment (from the client and tour company) and
acknowledges the tour company's agreement to the principles of sale and conditions precedent.
This pre-contract sets all the legal and economic conditions of the future deed, as well as company
commitments and the client. All contractual information must be presented to customers clearly
and concisely.
All pre-contracts must contain:
• Identities of services (incl. travel/accommodation packages and perks);
• Sale price.
• Conditions precedent (varying according to the case);
• Date of exercise and services.
3) Contracts and attachments (what should be included)
A contract, in the simplest definition, is a legally enforceable agreement between two or more
parties, that wants to promote goods or services. The agreement may be to do something or to
refrain from doing something. Usually, consumer contracts are standard contracts. The making of
a contract requires the mutual assent of two or more persons, one of them ordinarily making an
offer and another accepting. If one of the parties fails to keep the agreement, the other is entitled
to legal redress. The law of contracts considers such questions as whether a contract exists, what
the meaning of it is, whether a contract has been broken, and what compensation is due to the
injured party.

30. Moreover, standard form contracts are usually drafted by lawyers who are instructed to minimize
the firm's liability. A contract attachment, which is also called an annex or appendix, is something
that is added to a contract after it has been drafted and, in most cases, attachments don't change
the original contract. Certain essential elements go into a contract, and most of them have to do
with the intention behind the contract. These elements include the offer, acceptance, mutual
assent (also known as the "meeting of the minds"), consideration, capacity, legality and other
provisions. It could be an exhibit that is attached, listing something specific to go along with the
contract.
The contract documentation under contracts tourism comprises:
• The form of agreement
• Conditions of contract
• Contract data
• Prices, activities schedules, bill of quantities
• Works information
• Site information
4) Added value for Tour operator
Value-added is the additional feature or economic value that a tourism company adds to its products
and services before offering them to customers. Adding value to a product or service helps companies
attract more customers, which can boost their revenue and profit, also the results show that most
value-added services are perceived to be most important in the search and/or purchase phase and
that no value-added services are perceived to be most important in the post-consumption phase.
Based on this, tour operators are trying to develop additional value-added services aimed at
supporting the customer in the post-consumption phase to build strong customer relationships and
loyalty, which may lead to continuous buying behavior. Tour operators are very customer-focused,
spending time getting to know the client's requirements and making well-informed recommendations
to ensure the trip is as good as it possibly can be, they can add value to offer local information and
local deals for the destination, and they do a great job and tickets, and all services, it provides
consumers with an incentive to make purchases.
The tour operator can process these value-added components:
•Complimentary snacks or water.
•Contactless waivers and check-in options;
•Icebreaker questions;
•Maps or virtual links send the day before;
•Options for seeing the city in the best way possible;
•Sightseeing tips and top locations depending on the length of their trip.
5) Pricing

31. According to the Glossary of tourism terms UNWTO - Pricing is the decision-making process of
ascertaining what price to be charged for a given tour once total costs are known. Pricing involves
determining the markup, studying the competition, and evaluating the tour value for the price to
be charged; a function performed by the operations manager. Tourists have ever-changing
demands; therefore, the tourism product price must be consistent, accurate and competitive. In
determining the rate for a product, the company need to consider operating costs, profit margin
and distribution network costs (often referred to as commissions), also the needs to compose an
effective pricing strategy, to help a business set an offer price which is in line with the competition
and will maximize revenue. Pricing is one of the most important components of creating market
orientated strategy.
Because pricing is one of the first things that a consumer will take in account about a
product/service which is one of the deciding factors when it comes to making decision to buy a
product or service. Setting product or service prices for companies shouldn't be a haphazard
decision focused entirely on profit. It must be a calculated, informed choice, that takes business
identity, brand, and financial stability consideration. When drawing up a pricing strategy to attract
customers, tourism companies (introducing brand new products or services) should be considered.
• Market penetration pricing
• Premium pricing
• Price skimming
• Economy pricing
• Bundle pricing
• Value-based pricing
• Dynamic pricing
Package travel regulations
1) International regulations
Due to International regulations the package travel regulations are a government-created set of
regulations under the package travel directive that protects consumer booking package holidays
and linked travel arrangements. They protect against issues with the package, insolvency, and deal
in refunds, if their tour operator becomes insolvent and they must be repatriated or if they need to
seek redress for loss or injury incurred while on holiday overseas. The package travel, package
holidays and package tours ('packages') represent a significant proportion of the travel market. All
tourism-related businesses that provide two or more of the following components, transport,
accommodation or other tourist services, must comply with the requirements of the Directive. The
package travel directive came into effect in 1990(Directive 90/314/EEC of 13 June 1990) by the
council of the European Communities on package travel, package holidays and package tours.

32. However, the Package Travel and Linked Travel Arrangements Regulations were reviewed by the
European Commission on 1 July 2018 and 25 November 2015 and were formulated and accepted
by the European Parliament and the Council - Directive 90/314/EEC. Nevertheless, since the
Package Travel Directive was introduced, the travel sector has evolved significantly, expressly with
an online booking service and the rise of low-cost air carriers. The directive is to contribute to the
proper functioning of the internal market and the achievement of a high and as uniform as possible
level of consumer protection. By approximating certain aspects of the laws, regulations, and
administrative provisions of the Member States in respect of contracts between travelers and
traders relating to package travel and linked travel arrangements, European directives have had a
deep impact on national tourism laws. The European Union law has significantly affected national
private law systems with special regard to the impact of European directives on private law (such
as consumer laws, insurance laws, etc.)
2) National regulations
National regulations and national legislator’s, and regulate tourism management in terms of
relationships between the state, municipalities, and other entities in tourism-related activities.
Governments usually determine state policies in the sphere of tourism. Then state institutions use
their powers to execute state policies and to create conditions for its development. The law
considers several types of tourism: vacation; cultural and historic; ecological; health and spa; sport;
rural; business and conventional etc.
States execute policies, in the sphere of package travel regulations through : cooperation in the
development of the sector and its recognition as economic activity of major importance, creation
of a legal framework needed for the development of tourism by international norms, regulations
and practice, the guarantee of financial resources and execution of marketing and promotional
campaigns that popularize national tourism products, the creation of conditions for the
development of vacation, cultural and historic, eco, health, spa, sport, rural, conventional and
other types of tourism, the management and tourism quality control, the involvement in
international cooperation in the sphere of tourism. Such programs and activities are developed in
line with international standards, guaranteeing high quality and unique tourism products and
promoting tourism all over the Country.
The role and significance of tour operator
Tour operators a significant role and are a key factor in the success of the tourism industry.
Tourists count on tour operators to turn their dream vacations into realities that are why tour
operators consider services a combination of tourists': involvement, freedom of choice, service
with hospitality and a perfect destination that can make the best tourist product for the benefit
and satisfaction of the tourists.
1)Responsibility

33. One of the main duties and responsibilities of a tour operator is developing tour packages and
itineraries for a variety of individual clients and groups. They create a package holiday by
combining all elements such as hotel, airport transfers, activities, restaurants, tours and such. Tour
operators are involved in the planning, development, promotion, administration and
implementation of tourism products, overseeing all the day to-day tasks and controls, books and
devising the whole trip.
2)Service
The main function of a tour operator is to organize the services being provided to the customer,
modify tour packages, provide tourist assistance, contract and negotiate with other vendors,
handling of arrival and departure procedure. In addition, tour operators plan and organize local
package tours and establish operating guidelines for the tour, manage tour budget escorting the
tourists, provide market information, costing and pricing package tour and negotiate with suppliers
of tourism products such as hotels, airlines and provide the best possible price to the tourist. Also,
they advertise and produce brochures to promote their products and itineraries.
3)Providing real experience
The tour operator is the brains behind the beauty of vacation and they leverage their expertise and
resources (provider databases or technology like tour operator software). Experiences in the travel
and hospitality industries are built on creating experiences. Travel and hospitality companies have
more touch points with customers, allow companies to differentiate themselves and earn
customer loyalty at virtually every touch point, in a way that puts their brand top of mind when the
customer is making a travel or hospitality purchasing decision. Experience factors, such as valuing
customers' feedback, recognizing and personally, addressing customers, and aligning corporate
actions to brand values, are more important than price across travel and hospitality overall. The
value of elevating the human experience is powerful. The experience at the destination is the main
component of the visit and typically includes various kinds of services and activities (e.g.
sightseeing, leisure shopping, accommodation, and local travel) as well as varying levels of contact
with the local population. In the recall phase, the experience is relived in conversations and
memories, and by sharing photographs, videos and souvenirs. Connecting with the customer on a
more human level can strengthen and deepen your brand's relationship with the customer, leading
to real and measurable bottom-line performance improvements.
REFERENCES
1. The World Tourism Organization (UNWTO) PRODUCT DEVELOPMENT
https://www.unwto.org/tourism-development-products
2. The sustainable Tourism Gateway- https://www.gdrc.org/uem/eco-tour/st-about.html
3.Nature-Based Tourism Tools and Resources Collection-
https://appsolutelydigital.com/nbt/filters.html
4.The Value Added Tax (Tour Operators) (Amendment) (EU Exit) Regulations 2019 https ://www.
Legislation .gov.uk /uksi /2019/73/made

34. 5. Travel Themes & Templates- https://www.template.net/cms-templates/travel/
6. Tourism Management - Developing Product- https://www.tutorialspoint.com
7.Tourism product development https: //www.iti.gov.nt.ca/ sites/it /files/
8. Tourism Resources-https://sk.sagepub.com/reference/the-sage-international-encyclopedia-of-
travel-and-
tourism/i11276.xml
9 Tour Operations Guide for Investors-file:///G:/TourOperationsGuideInvestors.pdf