CHAPTER 10.docx

6 Pages
Unlock Document

Recreation and Leisure Studies
REC 280
Stephen Smith

CHAPTER 10 – TRAVEL SERVICES  Travel services make up a major component of the tourism’s sales force  Tour operator – sells travel at a wholesale level o Sell packages through retail travel counselors (not to them) o Pay retail travel counselor a commission (volume incentive aka override) o Sell travel they have contracted ahead of time  Travel counselor –sells travel at the retail travel o Sell any travel packages  39,000 Canadians work in this industry (usually highly educated) The history of tours th  Began in the early 17 century  Le grand tour was designed to educate sons in the ways of the civilized world st  1 travel package – made by a minister  Thomas Cook – left ministerial calling to form 1 travel agency  Early tours – individually designed for the rich  Jet travel made travel affordable to middle class  Tours are also prepaid, so traveler doesn’t worry about running out of money Wholesaling  Tour wholesaler acts as an intermediate between the supplier and travel agency o Suppliers request pre-purchase of the products to guarantee low prices.  Tour operators are willing to invest in advance – purchase all the components of a tour prior to packaging it  Consolidator – act as wholesalers or intermediaries between the airlines and travel agencies and pay a commission on tickets sold o Buy seats in bulk and sell them to travel agencies, who pass on the savings to the customers.  Tickets usually have restrictions e.g. minimum stay requirements, non- endorsable. o Canada’s largest – Aventours  5 types of tour operators in Canada o Independent tour operator – large (Am Ex) or small (sunquest) o Travel agency – packages tours and sells them to clients o In-house tour operator – owned/operated by large companies o Strictly online – provide no glossy brochures or sales representatives o No sale to public – sell to clubs, associations, travel groups  Tours are designated as either outbound or inbound. o Inbound – brings guests from a foreign country to Canada o Outbound – Canada tourism dollars are spent in a foreign country Tour development  Tour- services on a tourist’s itinerary o Entirely reserved in advance, and fully prepaid  Tours are divided into 2 major categories: o Independent tours – opt out of travel agency and use online resources to book travel that they created independently o Packaged tours – set itinerary with all of its components in place. They may or may not have an escort; sold to individuals and groups.  Usually target the single traveler, the economy-minded traveler, or the high value traveler – willing to spend more on the trip and looks for quality sites and products to be supplied.  4 steps to creating a tour 1. The tour idea – creativity, listen to what people want, market research needed, most developed around a central theme or destination 2. Negotiations – once destination and attractions in place, prices/rooms/guides need to be negotiated 3. Costing and pricing o Costing – process of determining the total cost of providing the tour for an anticipated number of customers.  Direct cost of each component of the tour must be determined then indirect costs are added.  Correct costing requires an accurate assessment of certain variables, especially sales.  Meal costs  Accommodation type  Length and stay in principal cities – pacing of a tour is important for sales  Sight seeing  Attractions o Pricing – process of deciding the amount each customer should pay to cover costs, including a markup, operating expenses, and profit. 4. Promotion – glossy brochures, online etc. Without good promotional material, even the best tour product may find itself without customers. Tour categories  2 main types of prearranged packaged tours o Independent tours  Travel counselors and tour operators can arrange this or customers can arrange their own package using online tour companies  Agencies likely know the reputation of the tour company, and the destination’s political/environmental atmosphere.  Travel agents are a link to home in case things go wrong  Vary in flexibility and complexity  Key to success is flexibility and cost saving  Disadvantage – you are on your own, no company rep o Group tours  True group – club or society that wished to take a trip (traditionally)  Group tours are usually based on a given number of participants and may be cancelled or delayed  There are 2 types of group tours:  Group/land package – include land arrangements (not airfare)  All inclusive – can be: o Fully escorted (with tour director travelling with the group, or a step on guide from the city who answers questions etc) o Partially/hosted tour (group travels without the director and at each destination they meet a rep) o Unescorted tour (group has an itinerary and no company rep) Types of tours  May be identified by the destination: o Adventure tours – whitewater rafting o Religious tours – religious sites o Ethnic tours – immersed in a different culture o Educational tours – learn something new (museums, historic sites) o Soft adventure tours – thrill while comfortable o Sports and recreational tours – golfing, biking o Ecotourism tours – expert guides, wildlife, rainforest o Special interest tours – gambling, wineries, stampede  Special needs tours – special medical problems  Incentive tours – created for a company as a reward for employees who have done outstanding work (gifts, not taxable)  May be defined by their duration: o Newest trend – 3 day weekend tour The travel counselor’s responsibility of tours  Many tours are sold through travel counselors  Tour wholesalers provide a commission to the travel agency for each tour sold  Travel counselor is responsible for: o Validity dates – tour brochures show when a tour is available at stated price and departure date o Gateway city – point from which the flight will leave or where client can join tour o Itinerary and amenities – see or visit = see from bus window o Price – depend on season, transportation, length, accommodation, meals, sightseeing, service charges (must know included and additional charges) o Name of the tour operator – both client and travel counselor should know this (some provinces it is a legal requirement)  Safety  Basically relay reliable and accurate info to client Regulating the tour industry  Need air/rail component – approval from NTA  Tour operators also licensed by the individual province  Interests of the purch
More Less

Related notes for REC 280

Log In


Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.