REC 280: Midterm #4 Textbook Notes

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Recreation and Leisure Studies
REC 280
Stephen Smith

CHAPTER 10 Travel ServicesTravel can be sold at the wholesale level by a tour operator or wholesaler or at the retail level by a travel counsellorNOTE tour operators sell packages THROUGH retail travel counsellors not TO them o They pay the retail travel counsellor a commission and sometimes an override o Commission the percentage of a selling price paid to a retail by a supplier o Override a bonus or extra commission earned for doing volume businessTravel counsellors sell ALL TYPES of travel including components offered by tour wholesalers or the prepackaged tours offered by tour operatorsNOTE more than 41000 Canadians work in this industryNOTE travel counsellors are highly educated 82 have postsecondary schoolingTHE HISTORY OF TOURS th Tours can be traced back to the early 17 century where noblemen from England arranged educational tours for their sons and heirsLe grand tour st NOTE the 1 recognized package tour was NOT developed by a travel agent but by a ministerEarly tours were affordable only to the wealthy but this changed with the new age of jet travelTours are less expensive than booking transportation lodging and attractions separatelyTours are prepaidcost is a known figure right from the time of bookingWHOLESALINGTour wholesaler a company that contracts for space with hotels transportation companies and other suppliers to create a tour package o Act as intermediates between the supplier and the travel agencyTour operator a company that contracts with and pays in advance for services provided by hotels transportation companies and other suppliers in order to create a tour packageConsolidator an operator that purchases a large number of airline seats every year from individual airlines at a low price which it then sells to tour operators and travel agents at discounted pricesact as wholesalersintermediaries between airlines and travel agencies o NOTE each ticket has restrictions advance purchase dates minimum stay requirements no itinerary changesalso they are nonendorsableOne of Canadas largest consolidators Aventours 1 5 types of tour operators in Canada 1 Independent tour operatorAmerican Express Sunquest 2 Travel agencypackages tours and sells them to its clients 3 Inhouse tour operatorowned and managed by a large company ex Air Canada 4 Online tour operatorprovide no brochures or sales representatives all online 5 Tour operators that do NOT sell to the public but focus on clubs associations etcOutbound tours Canadians travelling outside of CanadaInbound tours brings guests from a foreign country to CanadaTour DevelopmentTour a service on a tourists itinerary usually consisting of but not limited to transportation accommodation transfers and sightseeing in one or more countries geographical regions or citiesThe services are entirely reserved or contracted for in advance by a travel agent a tour wholesaler or a tour operator and fully prepaid by the touristIndependent tours individuals who want an independent tour use the services of a travel agent and tour wholesaler they choose bw assorted components offered by the tour wholesaler o Many people bypass the travel agency to plan their own tours online ex ExpediacaPackaged tours has a set itinerary with all of its components in place o Companies that sell this type of tour focus on the single traveller the economyminded traveller or the higher value traveller o Higher value traveller a tourist looking for upscale destinations and willing to pay more4 steps in creation of a tour 1 The tour ideaneed market research to determine if there is a need consumer demandmost tours are developed around a central theme 2 Negotiationswho will give you discounts and how much will the discounts be 3 Costing and pricingthe process of determining the total cost of providing the tour a Meal coststour cost is lowered if traveller pays for each meal separately b Accommodation typeeconomy cheaper vs deluxe expensive c Length of stay in principal citiesdeluxe tours spend more timedestinations d Sightseeingbuiltin sightseeing INCREASES tour costs e Attractionscost of tour is high w admission fees but cheaper in the long run 4 Promotionbrochures TV ads travelogue presentations internet home pages 2
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