TOUR 104 Lecture

1. International and
Domestic Tour
Planning, Packaging
and Pricing
First Semester AY 2012-2013
School of Hospitality Management

2. The Professor
Prof. Tito Antonio A. Ofilada, Jr.
• Education:
– MBA (Ongoing)
• Ateneo de Manila University Graduate
School of Business
– BS Tourism (2006)
• University of the Philippines- Diliman
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3. The Professor
Prof. Tito Antonio A. Ofilada, Jr.
• Work Experience:
– Delta Airlines 2008-2010
• Passenger Sales Agent
– Customer Service Intern (Summer
2005)
• Philippine Airlines
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4. The Professor
Prof. Tito Antonio A. Ofilada,
Jr.
• Consultation Hours:
– Tuesdays, 8-9am
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5. School Mission:
- to be a recognized and respected educational
institution
- adhere to the highest international standards
- respond to the market needs
- by producing globally competitive and highly
professional individuals.
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6. Core Values:
- Perfection
- Innovation
- Integrity
- Concern
- Prudence
- Unity
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7. Seal of Treston International
College
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8. School of Hospitality Management
• Aims to develop tomorrow’s hospitality
and tourism leaders both in the national
and global setting.
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9. School of Hospitality Graduates
are:
• Service-oriented
• Passionate
• excellent communicators
• Ethical
• Well-rounded
• Creative
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10. Class Rules
• maximum of 3 cuts or absences per subject. Should
you incur absences more than the allowed maximum
number, you will be automatically dropped from the
subject and will be given an “FA” or Failure due to
Absences in your scholastic report.
• Wear the prescribed college uniform when inside the
classroom and school premises
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11. Class Rules
• Electronic gadgets such as but not limited to mobile
phones, laptops and i-pads are not allowed inside
the classroom and will be confiscated by the
instructor if seen being used by students while
class is ongoing. Confiscated gadgets may be
claimed at the Guidance & Student Affairs Office
upon submission of Letter of Explanation from the
student’s parent or guardian.
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12. Course Description
• This course aims to equip the students with skills
and knowledge on how to plan, package and
price international or domestic tourism products
based on client requirements and number of
participants in a particular tour program.
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13. Course Objectives
By the end of the course, the student should be able to:
COGNITIVE:
1. To describe the different elements that comprise
what are needed in to create tour packages.
2. Identify the functions and duties of Tour Operators
against the duties and functions of Travel Agents.
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14. Course Objectives
AFFECTIVE:
1. To answer questions on how to Price domestic
and international travel itineraries based on the
number of passengers, inclusions and
highlights offered in a particular tour package.
2. To prepare a marketing proposal for a designed
tour package created based on the
requirements of the clients.
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15. Course Objectives
PSYCHO-MOTOR:
1. Plan and design domestic and international
travel itineraries.
2. Create and develop domestic and international
travel packages composed of: accommodations,
transportation, meals, guide services,
attractions and other tour highlights in a certain
area.
3. Design a tour package (domestic or
international) using the concepts and ideas
learned in this course and present the tour
product.
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16. Reference
• Claravall, B. (2008). Travel and Tour
Operations in the Philippines. Manila: Paul
So.
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17. Grading System
Attendance 15%
Orals 15% Prelim Grade 30%
Quizzes 10% Midterm Grade 30%
Class Standing 40% Pre- Final Grade 40%
Exam 60% 100%
100%
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18. Grading System
1.0-1.25 Excellent
1.5-1.75 Very Good
2.0-2.25 Good
2.5-2.75 Satisfactory
3.00 Passed
5.00 Failed
INC Incomplete
DRP Dropped
FA Failure due to Absences
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19. Let’s Begin…
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20. The Tourism Industry
• A composite of industries and entities
involved in planning, development
marketing, sales, operation and evaluation
of destinations, products and services to
cater to the needs of travelers.
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21. The Tourism Industry
• Entities involved in the tourism industry
are privately owned or Government
operated.
• Government entities:
– Formulation of Tourism
Policies
– Provides guidelines for destination
development
– Regulation of the industry
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22. The Tourism Industry
• The Private sector is composed of the
following:
– Transportation Industry
– Hospitality Industry
– Food and Beverage
– The Activities and Attractions industry
– The Travel Trade
– Other Private Sector Entities
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23. The Tourism Industry
The Transportation Industry
– The Passenger Transport Industry
– Composed of Sea, Air and Land.
– Comprises all sectors involved in
the transportation or movement of
people and goods.
– Has the most important role in the
industry.
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24. The Tourism Industry
Air Transportation
– Involves companies providing scheduled air
transport services
– Airports, Airstrips and Airfields are integral
parts of this sector.
– The developments in Aviation has
revolutionized travel.
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25. The Tourism Industry
Sea Travel
– One of the oldest forms of
transportation
– Includes all water transportation
operators, and the land facilities
required to service these operators.
– Sea operations primarily deal with
freight and cargo transport.
– Cruise ships primarily deal with
transporting passengers.
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26. The Tourism Industry
Land Transportation
– All land transportation entities- Rail and road
– Also includes car rental companies.
Oil Companies
- Includes gas stations scattered across different
locations.
- Designed to service the motoring public and in
some ways, the tourism industry.
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27. The Tourism Industry
The Lodging Industry
– Places that offer
accommodation for a fee.
– Made up of hotels, resorts,
motor hotels, pension houses,
dormitories and inns.
– Each facility has its own
identity, operating cycle, goals
and loyal following.
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28. The Tourism Industry
The Lodging Industry can be classified through the type of
property:
- Hotels: Two or more floors with rooms located along
common hallways. Includes services such as:
housekeeping, bell service, business centers,
recreation facilities, restaurants and bars.
- Motels: Less formal than hotels. Offers parking
facilities next to the guest rooms. Services often times
limited to a swimming pool and restaurant.
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29. The Tourism Industry
– Suite Hotels: Lodging facilities that offer only
suite rooms.
– Convention Hotels: provide meeting and
banquet facilities for large groups consisting
of more than 500 persons.
– Other types: Condo-tels, Resorts, Spas and
Casino hotels.
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30. The Tourism Industry
Lodging facilities are given ranks based on their
operating standards.
- Deluxe, First class, Standard,
Economy/Tourist and Budget
- For resorts: Triple “AAA” (deluxe) Double “AA”
(first class) and “A” (standard)
- Room Types: Twin, Double, Triple, Quad or
Single Occupancy
- Room Categories: Standard, Superior, Deluxe.
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31. The Tourism Industry
The Food and Beverage Industry
- All drinking and eating places that serve the
public.
- This consists of Restaurants, Travel food
service and vending and contract institutional
food service.
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32. The Tourism Industry
Form of Service: How food is presented to the
guests.
- Table Service: A host or hostess seats the guests,
servers take orders and deliver these to the table.
- Buffet Service: Guests go to the buffet table for
food.
- Banquet Table Service: Food is transported from
a central kitchen in heated carriers and
transported near the dining area.
- Cafeteria service: Food is dished out unlike in
buffet service that is self service. (i.e.. Canteens
and food courts)
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33. The Tourism Industry
Attraction and Activities Industry
- Basic terms:
- Leisure: Freedom resulting from the cessation of
activities, special time free from work or duties.
- Recreation: Refreshment of strength and spirit
after work and means of diversion.
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34. The Tourism Industry
Attraction and Activities Industry
- Also called: Entertainment, Recreation or Leisure
Sector.
- All sites, destinations and organizations that offer
attractions and provide entertainment.
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35. The Tourism Industry
Attractions
• A physical or cultural feature of a
particular place that individual travellers or
tourists perceive as capable of meeting
one or more of their specific leisure-
related needs. Such features may be
ambient in nature or they may be specific
to a location, such as a theatre
performance, a museum or a waterfall.
Source: Dictionary of Travel & Tourism Hospitality Terms (Robert
Harris & Joy Howard, Melbourne, Hospitality Press, 1996)
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36. The Tourism Industry
Attractions
– Includes natural and developed attractions that drive
much of humanity to travel.
– Provides the pull to visit a particular destination.
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37. The Tourism Industry
Attractions can be:
• Natural: places that lure
travelers to enjoy the natural
beauty and the inspiration they
provide or;
• Man-made
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38. The Tourism Industry
Activities
- Establishments primarily
engaged in providing
amusement, recreation or
entertainment on payment of
a fee or admission charge.
- Examples: Shopping, Leisure,
Recreation, Entertainment.
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39. Activity
Give examples of activities under the following categories:
- Leisure
- Recreation
- Entertainment
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40. The Tourism Industry
The Travel Trade
• Made up of travel agents, tour
operators, also referred to as
intermediaries or middlemen and the
tour guides.
• The sector that provides the travelling
public with advice on destinations to
go to and facilitates the reservation or
purchase of different travel services.
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41. The Tourism Industry
Travel Agencies
• Can be compared to a department store selling travel
needs.
• A place or establishment where people can secure
information, expert counselling and make arrangements
for travel by air, sea or land to any point in the world.
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42. The Tourism Industry
Tour Operators
• Companies that contract and purchase separate travel
components and assembles them into one package.
• Provides the packages sold by travel agents.
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43. The Tourism Industry
TRAVEL AGENTS TOUR OPERATOR
Retailers Wholesalers. Deals with travel agents
(retailers)
Acts as consultants or advisers to the Acts as middlemen between the
traveller. suppliers and the vendors.
Revenues are fixed and pre Have variable but limited revenues
determined by suppliers income and profit margins
Charges fees for documentation and Sells optional products and services
ancillary services and makes use of deposits
Agents of the Suppliers Capitalize on Cost-savers
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44. The Tourism Industry
Other Private Sector Entities
– Includes other sectors with indirect involvement in the
tourism industry.
– Includes the media and other public relations
companies that perform tasks of image making.
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45. The Philippine Tourism
Industry
• In the Philippine setting, The tourism industry is a major
player in terms of economic growth.
• The industry is also composed of both the private and
public sectors.
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46. The Philippine Tourism
Industry
The Public Sector in the Philippine Tourism Industry
includes the following:
- The Department Of tourism
- Philippine Convention and Visitors Corporation
- Tourism Infrastructure and Enterprise Zone Authority
- Local Government Units
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47. What is a Travel Agency?
“A travel and tour agency is an entity engaged in
the business of extending to individuals or
groups, travel services and assistance to include
documentation, ticketing, booking for
transportation and/or accommodation;
arrangements, handling and/or conduct or tours
within or outside the Philippines whether or not
for a fee, commission or any form of monetary
consideration.”
- Article 243 of the Tourism Code of 1980
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48. What is a Travel Agency?
Traditional view:
- A commercial enterprise
where a traveller can
secure information and
expertise, get impartial
counselling, and make
arrangements to travel by
air, sea or land to any
point in the world
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49. What is a Travel Agency
• Acts as an agent for
different suppliers or
providers of
products and
services.
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50. What is a Travel Agency
• A middleman between the vendor and the
vendee.
Vendor Middleman Vendee
(supplier) (Travel Agent) (travelling Public)
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51. What is a Travel Agency
• In a traditional perspective, travel
agencies earn by commissions and
through price- mark ups called “Net-plus”
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52. What is a Travel Agency
• With the advent of new technology, travel
agencies harnesses the links, expertise
and professional service orientation of the
travel organization and turns it into a
vendor and principal selling travel services
and solutions
• Also known as: the Travel Management
Company
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53. What is a Travel Agency
• The Travel Management Company (TMC)
acts as a partner to both the vendor and
the vendee.
• TMC’s are Proactive.
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54. What is a Travel Agency
• A commercial enterprise where a traveller
may secure information, receive travel
advice and make arrangements to travel
by land, air or sea to any point in the
world for a professional fee.
• Travel Agencies now earn through a
professional fee called the “Cost plus”.
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55. What is a Travel Agency
Vendee
(travelling
public)
Travel
Vendor
Management
(Supplier)
Company
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56. Functions of a Travel Management
Company
• Provide Information and Expertise
• Recommend Destinations, products and
services best suited to the needs of the
client
• Provide assistance in securing travel
documents.
• Process Travel arrangements
• Assist in case of refunds and cancellations.
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57. The Travel Management Company
Travel Management Companies earn
through the following:
• Through a negotiated professional and
handling fee
• Commissions or Mark-ups
• Service fees for ancillary services
• Production Incentives and rebates from
suppliers.
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58. Characteristics of a TMC
• Retailer
• Counsellor
• Derives income from a pre-determined
fixed commission dictated by suppliers or
a professional fee negotiated with client
• Charges fees for ancillary services.
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59. Organizational Structure, Departmental
functions and Job Descriptions
• Administration
– Deals with the day-to-day management
activities of the company
– Has 4 functions:
• General Administration
• Personnel
• Accounting
• Finance
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60. Organizational Structure, Departmental
functions and Job Descriptions
• Operations
– Core of the Travel Agency business
– Engaged in the efficient and effective delivery of
the organizations services.
– For larger-sized TMCS operations are divided into
2: Travel Operations and Tour Operations.
– This department has the following employees:
• Travel Managers and supervisors
• Reservations and ticketing officers and;
• Liaison Officers
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61. Organizational Structure, Departmental
functions and Job Descriptions
• Operations
– This department has the following employees:
• Travel Managers and supervisors
• Reservations and ticketing officers and;
• Liaison Officers and travel consultants
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62. Organizational Structure, Departmental
functions and Job Descriptions
• The Travel Counsellor
– Provides all necessary information requested by
prospective travellers
– Recommends products and services best suited to
the travellers needs
– Keep updated on new travel information and trends.
– Fill out all travel information in the booking card for
travel.
– Relay all changes and confirmations to clients
– Process refunds and processing fees
– Monitor processing of travel documents and insure
that they are all in order prior to release to clients.
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63. Organizational Structure, Departmental
functions and Job Descriptions
• The Reservations Officer
– Place all required reservations with different
suppliers
– Follow up on reservations placed until confirmed
– To change reservations when itineraries are
amended
– Look for alternative suppliers in the same level of
service in case preferred supplier is not available
– Monitor issuance of travel vouchers and tickets
– Act as back up to the ticketing Officer
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64. Organizational Structure, Departmental
functions and Job Descriptions
• The Ticketing Officer
– Correctly source or calculate fares when the
need arises
– Issue air tickets manually or through the
automated ticketing system
– Correctly issue purchase orders in accordance
to clients itinerary
– Check the accuracy of travel documents
– Reissue tickets when required
– Act as a back up to the travel counsellor
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65. Organizational Structure, Departmental
functions and Job Descriptions
• The Liaison Officer
– Determines what visas and other documents are
required for travel
– Check the authenticity of all documents
submitted
– Checks all relevant support papers.
– Insures that documents filed are released on time
– Arranges and coordinates appointments and visits
to the various consulates and government offices
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66. Organizational Structure, Departmental
functions and Job Descriptions
• Marketing and Sales
– Sales can either be walk-in or field sales
– Marketing: everything that is done in order to attract or create
awareness about the company.
– Lead by the sales and marketing manager
• Prepares annual marketing plans
• Sets annual sales goals and develops working plans to carry out these
goals
• Participate in the preparation of the organization’s budget
• Decide on negotiated rates and concessions
• Prepare proposal letters and contracts
• Prepares and submits marketing and sales reports
• In charge of all marketing activities and attends tradeshows and fairs
• Maintain an updated clients and prospective clients and performs
regular sales calls on major accounts and suppliers.
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67. Organizational Structure, Departmental
functions and Job Descriptions
• Marketing and Sales
– Includes product development functions
• Reviews existing customer base, product and
market profiles and analyzes productn
characteristics
• Initiates in close coordination with the operations
department the development or upgrades of new
products and services.
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68. Organizational Structure, Departmental
functions and Job Descriptions
• Marketing and Sales
– Includes Product Research and Development
functions
• Monitor available products and services in various travel
websites and travel platforms
• Monitor electronic rates for services available.
• Monitor booking terms and conditions of travel
products and services.
• Dissiminate relevant information to all departments and
sections concerned
• Maintain and update the company’s website content.
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69. The Size of the Travel Management
Company
• Small sized TMC: no more than 10
employees with a manager supervising all
three departments
• A medium sized TMC: 20 or so employees
with three departmental heads reporting
to one manager
• A large Sized TMC: at least 30 employees
a comptroller is with the general manager
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70. Thank you!
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