chapter 5 of the tour and travel agency management operations

1. Chapter 5:
Tour Operator,
Tour Packages, and
Tour Destinations
© Kristine Montserrat
PWU- College of Tourism Services and Management

2. The Tour Operator
• Tasked to assemble the various travel
components into a tour package and sell the
resulting package as one product.
• Acts as an intermediary between the
suppliers of the travel services and the
traveling public.

3. Characteristics of a TO
• Wholesalers - their client are primarily the
retail travel agencies, and dealings with end
user is indirect.
• Acts as intermediary and integrator of the
travel suppliers.
• Derives income from variable but limited profit
margins and capitalizes on favorable terms,
conditions and concessions.
• Generate additional revenues by selling
optional tours, excursions, and extension stays.

4. Functions of a TO
• Conceptualizes plans and develop tour
packages.
• Negotiates with suppliers of travel services.
• Assembles and integrates the various travel
components into a single tour package.
• Delivers the tour package.

5. Revenue Sources of TO
• Variable Mark Up
• Seeking favorable terms, conditions and
concessions to suppliers.
• Sale of optional tours, excursions and
extension stays.
• TO shopping commission on sales generated.

6. Criteria for Classification of TOs
• Area of Operations
– Geographical area included in the travel
package
• Market or Sources of Traffic
– Geographical area of the travel market.

7. Types of Tour Operators
• Local Tour Operator
• Domestic Tour Operator
• Inbound Tour Operator
• Outbound Tour Operator

8. Tour Escort Services
• Also known as Tour Leader
• Refer to the individuals who travel with the
clients from point of origin and back.
• Act as the manager of tour group.

9. Types of Tour Packages
• Ground Arrangements – comprise of transfers and
sightseeing tour only.
• Land Arrangements – includes transfers, sightseeing
tours and hotel accommodations with or without a
meal plan.
• Inclusive Tour Package – includes transfers,
sightseeing tours, hotel accommodations with or
without meal plans plus transportation by air, sea, or
land.
• Inclusive Escorted Tour Package – inclusive tour
package with the services of a tour escort.

10. Classification of Tour Packages
• Regular Tour Packages - assembled based
on the need or interest of a target market.
• Ad Hoc Tour Packages - tour packages that
are tailor – made to the requirements and
specification of a particular traveler or group
of traveler.

11. Tourist Market and Destinations
• Tour Markets (International Leisure Traveler)
– Represented by the profile of Psychocentric
or Allocentric.
• Tour Markets (Domestic Traveler)
– Budget Traveler – e.g. educational field trips
– Regular Traveler – e.g. company field trips
– High End Traveler – professional people
with high income salary like 50k.

12. Types of Tourism
• Adventure Tourism - travel
for the purpose of
challenging oneself in a
specialized skill acquired.
• Agri -Tourism - observation
and participation in
agricultural farms and
farming crops and fruits.

13. Types of Tourism
• Culinary Tourism - eating and
drinking holiday along with the
study of food production and
processing and participation in
F&B activities in a relaxed
environment
• Cultural Tourism - characterized by
guided tours that include tasting the
local cuisine and the viewing and
participating in folk dance
performances, demonstration of
local crafts and arts., and observance
of religious rites and ceremonies.

14. Types of Tourism
• Environmental or Eco-
Tourism – travel for purpose
of observing and living with
the indigenous people.
• Health and Wellness Tourism
- combines the well being of
the person with healthcare
maintenance alongside leisure
and relaxation aimed at
rejuvenating a person

15. Types of Tourism
• Historical Tourism –
characterized by guided tours
to monuments, museums and
light and sound shows that are
representative of important
historical events.
• Religious Tourism - travel
for spiritual renewal and to
experience and observe the
religious practices of locality

16. Types of Tourism
• Medical Tourism – health
trip of patients needing
surgical and/or other forms
of highly specialized
treatment
• Recreational Tourism -
typified by participation in light
sports, indoor or otherwise,
and social contacts in a relaxed
environment.

17. Tourist Destinations
• Defined as a specific geographical area that a
traveler decides to visit and spend at least
one night.
• Also known as Tourist Attraction, or Tourist
Site

18. Characteristics of Tourist Destination
• Transportation - refers to accessibility
• Facilities – Availability of lodging facilities.
• Infrastructure - development of basic
infrastructure like water, electricity, sewage,
drainage, and communications.
• Attractions and Activities – a sight to view and
admire and the activities to participate in and
experience.
• Hospitality Resources – general public attitude
towards visitors and language facilities.

19. Basis in Evaluating Tourist
Destination
• Accessibility – all transportation to and from the
origin to the destination by air, sea and land plus
all support infrastructure.
• Comfort and Convenience – the facilities catering
to the basic human needs and the improvement of
the basic facilities.
• Education and Entertainment – the feeling of the
visitor that she has learned something.
• Service, Safety, and Security – includes the
prevention of accidents, the maintenance of peace
and order, and the protection of life and property.