Tour Operator and Tour Package

The lesson concludes by prompting students to consider which type of tour operator has the most advantage and what image is most appealing in the industry, encouraging further discussion and engagement.

The lesson introduces tour operators as producers or assemblers of tour packages, which combine various travel services for convenience and added value. It highlights the distinction between a tour operator and a travel agent, with tour operators often being large travel agencies with their own tour departments.

Tour operators act as wholesalers of travel services, purchasing in bulk to obtain discounted rates (contracted tariffs) from suppliers like hotels and airlines, which they then package and sell to travel agents at a discounted rate, who then retail to consumers at a published price.

A typical tour department within a large travel agency has a tour manager overseeing an operations supervisor (handling quotations and reservations) and a field supervisor (managing on-the-ground tour delivery, coordinating with tour guides and coordinators).

Key functions include conceptualizing and developing appealing tour packages, negotiating competitive contracted rates with suppliers, assembling and integrating various travel components, and delivering the tour package to ensure quality and brand establishment.

Negotiating favorable terms with travel suppliers is crucial for profit margins. An established tour operator receives better rates and credit terms, highlighting the importance of reputation and building rapport in the industry. New operators often start by accepting supplier terms and building trust over time.

Revenue streams include variable markups (depending on the target market, e.g., Japanese vs. Filipino), optional tours offered during free days, short-term interest from credit terms, and commissions from souvenir shops visited during tours.

Four main types are local operators (operating within a specific tourist spot), domestic operators (operating within the Philippines but not locally tied), inbound operators (bringing foreign tourists to the Philippines), and outbound operators (sending local clients abroad).

Tour packages are categorized into regular/standard packages (ready-made or pre-designed) and tailor-made/ad-hoc packages (customized to client specifications). Specific terminologies include 'ground arrangement' (transfers and tours only), 'land arrangement' (everything except airfare), and 'complete package' (all-inclusive).

This section defines important terms: transportation (air, sea, rail travel), transfer (movement within a destination), meals (can be specified like packed, institutional, or ala carte), hotel category (luxury, first-class, standard, economy), meal plans (European Plan, Bed & Breakfast, Half Board, Full Board), and breakfast types (Continental, American, Oriental, Filipino).

Tour duration is commonly measured in 'nights' (nites). Escorted tours involve a company representative (tour escort or leader) traveling with the group, adding value and managing the trip, though increasing costs. This section also covers half-day and full-day sightseeing tours, and optional tours.