International and Domestic Planning, Packaging and Pricing week 1

School of Hospitality Management

International and Domestic Tour Planning, Packaging and Pricing

First Semester AY 2012-2013


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


The Professor

Prof. Tito Antonio A. Ofilada, Jr.• Work Experience:– Delta Airlines 2008-2010• Passenger Sales Agent

– Customer Service Intern (Summer 2005)• Philippine Airlines


The Professor

Prof. Tito Antonio A. Ofilada, Jr.

• Consultation Hours:– Tuesdays, 8-9am


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.


Core Values:

- Perfection- Innovation- Integrity- Concern- Prudence- Unity


Seal of Treston International College


School of Hospitality Management• Aims to develop tomorrow’s

hospitality and tourism leaders both in the national and global setting.


School of Hospitality Graduates are:

• Service-oriented• Passionate• excellent communicators• Ethical• Well-rounded• Creative


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


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.


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.


Course ObjectivesBy 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.


Course ObjectivesAFFECTIVE: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.


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.


Reference

• Claravall, B. (2008). Travel and Tour Operations in the Philippines. Manila: Paul So.


Grading System

Attendance 15%Orals 15%Quizzes 10% Class Standing 40%Exam 60% 100%

Prelim Grade 30% Midterm Grade 30% Pre- Final Grade 40% 100%


Grading System

1.0-1.25 Excellent1.5-1.75 Very Good2.0-2.25 Good2.5-2.75 Satisfactory3.00 Passed5.00 FailedINC IncompleteDRP DroppedFA Failure due to Absences


Let’s Begin…


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.



• 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



• 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



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.



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.



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.


The Tourism IndustryLand 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.



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.



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.


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.


The Tourism IndustryLodging 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.



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.



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)


The Tourism IndustryAttraction 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.


The Tourism IndustryAttraction and Activities Industry

- Also called: Entertainment, Recreation or Leisure Sector.

- All sites, destinations and organizations that offer attractions and provide entertainment.


The Tourism IndustryAttractions • 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)


The Tourism IndustryAttractions – Includes natural and developed attractions that

drive much of humanity to travel.– Provides the pull to visit a particular

destination.


The Tourism IndustryAttractions can be: • Natural: places that lure

travelers to enjoy the natural beauty and the inspiration they provide or;

• Man-made


The Tourism IndustryActivities

- Establishments primarily engaged in providing amusement, recreation or entertainment on payment of a fee or admission charge.

- Examples: Shopping, Leisure, Recreation, Entertainment.


ActivityGive examples of activities under the following

categories:- Leisure- Recreation- Entertainment


The Tourism IndustryThe 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.


The Tourism IndustryTravel 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.


The Tourism IndustryTour Operators• Companies that contract and purchase separate

travel components and assembles them into one package.

• Provides the packages sold by travel agents.



TRAVEL AGENTS TOUR OPERATORRetailers Wholesalers. Deals with travel agents

(retailers)Acts as consultants or advisers to the traveller.

Acts as middlemen between the suppliers and the vendors.

Revenues are fixed and pre determined by suppliers

Have variable but limited revenues income and profit margins

Charges fees for documentation and ancillary services

Sells optional products and services and makes use of deposits

Agents of the Suppliers Capitalize on Cost-savers


The Tourism IndustryOther 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.


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.


The Philippine Tourism IndustryThe 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


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


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


What is a Travel Agency

• Acts as an agent for different suppliers or providers of products and services.



• A middleman between the vendor and the vendee.

Vendor(supplier)

Middleman(Travel Agent)

Vendee(travelling

Public)



• In a traditional perspective, travel agencies earn by commissions and through price- mark ups called “Net-plus”



• 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



• The Travel Management Company (TMC) acts as a partner to both the vendor and the vendee.

• TMC’s are Proactive.



• 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”.


What is a Travel AgencyVendee

(travelling public)

Travel Management

Company

Vendor (Supplier)


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.


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.


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.


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


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


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


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.


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


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


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


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.


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.


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.


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


Thank you!

International and Domestic Planning, Packaging and Pricing week 1

Education

Transcript of International and Domestic Planning, Packaging and Pricing week 1