CHAPTER 3 MANAGING A TOUR OPERATION COMPANY Chapter Three
Tour Operations Management
1
MANAGING A TOUR OPERATION COMPANY
The aims of the unit:
Requirements and procedures for setting up a tour operation business. The basic qualities/ skills required in a tour operator. The legal formalities in acquiring recognition from the tourism departments and organization.
Chapter Three
Tour Operations Management
2
MANAGING A TOUR OPERATION COMPANY
The aims of the unit: contd
Why recognition and acquiring licenses are necessary How to fill up various forms The procedure of tour operations
Chapter Three
Tour Operations Management
3
MANAGING A TOUR OPERATION COMPANY
What is a Tour Operator A tour operator is a business that creates the holiday
that the Travel Agent has asked for by their customers Domestic means within the country of residence
Chapter Three
Tour Operations Management
4
MANAGING A TOUR OPERATION COMPANY who is a tour operator
• A tour operator typically combines tour and travel
components to create a holiday. • They make contracts with hoteliers, airlines and other
transport companies to put the package/holiday together. • All the holiday details are incorporated into a
brochure which is distributed either to travel agents or directly to customers. Chapter Three
Tour Operations Management
5
MANAGING A TOUR OPERATION COMPANY
A travel agency is a business that sells holiday packages to the customer. A travel agency is usually owned by
a larger, well known tour operator.
Chapter Three
Tour Operations Management
6
MANAGING A TOUR OPERATION COMPANY
Functions of a Tour operator Organizational set up Functions and job descriptions of staff Organizational set up Purchase separate elements of transport,
accommodation and other services Combining all the elements into a tour package which they sell directly or indirectly to consumer
Chapter Three
Tour Operations Management
7
MANAGING A TOUR OPERATION COMPANY
Classified as travel suppliers or travel wholesaler Purchase services, and break bulk e.g. buy in large
quantities in order to sell in smaller quantities to different travel agency Sometimes classified as Travel suppliers and travel wholesalers work in variety of areas Buy in bulk, and thus secure considerable discounts from the travel suppliers or travel wholesaler, which could not be able to match by the customer buying direct Chapter Three
Tour Operations Management
8
MANAGING A TOUR OPERATION COMPANY
Buy in bulk, and thus secure considerable discounts
from the travel suppliers or travel wholesaler, which could not be able to match by the customer buying direct Assemble and present to the customer a tour package
Chapter Three
Tour Operations Management
9
MANAGING A TOUR OPERATION COMPANY
Nature of tour operating Success of a tour operator depends on its ability to buy
its product in bulk at a much lower price Compared to direct buying from customers Such packaging gives value for money to the customers
Chapter Three
Tour Operations Management
10
MANAGING A TOUR OPERATION COMPANY
Tour operators Operations Counter counseling Reservations – manual and automated Fare calculation Ticketing Documentation – passport, visa, immigration
clearances
Chapter Three
Tour Operations Management
11
MANAGING A TOUR OPERATION COMPANY
Other Services Onward flights Hotels Resorts Sightseeing tours
Meetings, conventions Ad hoc packages Other requirements
Chapter Three
Tour Operations Management
12
MANAGING A TOUR OPERATION COMPANY
For a setting up travel agency Investments are mostly needed for the following areas: Buying or hiring of space for office Office Furniture Computers , printers and Laptop
Chapter Three
Tour Operations Management
13
MANAGING A TOUR OPERATION COMPANY
Telephones, fax machine, photocopying machine, etc. Office stationery Promotional material (brochures, leaflets etc) Salary for the employees
Chapter Three
Tour Operations Management
14
MANAGING A TOUR OPERATION COMPANY
Tour operator can get approvals from: International Air Transport Association (IATA) India Tourism Office, Ministry Of Tourism Licences from the industry suppliers such as airlines, reserve bank of India and recognition from the hotels.
Chapter Three
Tour Operations Management
15
MANAGING A TOUR OPERATION COMPANY
The business requirements and skills for a tour operating company are: VISION A tour operating business needs to have a clear statement of the vision which explains the ambitions and expectations of the company achievements. FINANCIAL COMPETENCE A strong financial management knowledge is an essential aspect for company success because the business is usually carried out on international levels and things like currency fluctuations, changes in airTourprices, commissions are out to be Chapter Three Operations Management monitored correctly
16
MANAGING A TOUR OPERATION COMPANY
SKILLED LABOUR
A highly skilled staffs is more likely to offer services with a high degree of hospitality adding value to the quality of service and resulting into customer satisfaction. (IATA 2005, 15)
Chapter Three
Tour Operations Management
17
MANAGING A TOUR OPERATION COMPANY
PRODUCT MIX
In the flexible tourism industry, a balanced product mix will keep the business operations of tour operators running smoothly CREATIVITY
Creativity is an important part in product innovation as it focuses in building a base of the product development on the quality and uniqueness of the products. Chapter Three
Tour Operations Management
18
MANAGING A TOUR OPERATION COMPANY
Efficient company activity mix are . (IATA 2005, 19): EFFICIENCY MARKETING SKILLS STAFF ADMINISTRATION CASH FLOW VISION
Chapter Three
Tour Operations Management
19
MANAGING A TOUR OPERATION COMPANY
The aims & objectives of the scheme for recognition of Domestic Tour Operator (DTO) are : to encourage quality standard and service in this category so as to promote tourism in India. This is a voluntary scheme open to all bonafide tour operators to bring them in organized sector.
Chapter Three
Tour Operations Management
20
MANAGING A TOUR OPERATION COMPANY
A “DTO” is the one who makes arrangements for
transport, accommodation, sightseeing, entertainment and other tourism related services for domestic tourists.
Chapter Three
Tour Operations Management
21
MANAGING A TOUR OPERATION COMPANY
ABBREVIATIONS IATA: - International Air Transport Association UFTAA: - Universal Federation of Travel Agents
Association GOI: - Government of India MOT: - Ministry of Tourism DTO: - Domestic Tour Operator ADTOI: - Approved Domestic Tour Operator of India CBSP: - Capacity Building of Service Providers Chapter Three
Tour Operations Management
22
NEXT CHAPTER 4
TOUR PLANNING
Chapter Three
Tour Operations Management
23
