TRAVEL & TOUR MANAGEMENT Prepared by : MAGalsim/8-2023 Travel Management Cycle Managing Travel Services Market Segment > Sources of Sales > Not limited to corporate accounts, incentives , organizations with special movement > can be any customer that eventually brings income revenue to the organizations Identification of Travel Requierements ➢ Business Trip ➢ Special Arrangments ➢ Incentive Trip ➢ Pilgrimage ➢ Leisure ➢ GUIDELINES a. Prompt Booking b. Validate the Travel Policies of the Company c. Organize the Trip “Minutely” d. Optimize the “travel investment” Consultation Proper >Travel International Need to ask to client a. Passport b. Visa ( if required) c. Vaccination (if required) d. Immigration concern > Domestic Travel Locals / Foreigners * Check all pertinent requirements especially for foreigners Planning/Counter Counselling ➢ The expertise of the travel counselor , updated information and resourcefulness. ➢ Options for suppliers like airlines , accommodations, immigration / visas , essential travel prerequisites like vaccinations and others Initial Presentation /Preliminary Acceptance ➢ Budget can be presented ➢ Quotation, Cost and other expenditures can be discussed ➢ Suggest the Pros and cons of the services involved. ➢ Rulings, restrictions and coverage must be presented and discussed in detail ➢ Consider cost efficiency , total inclusions and travel restrictions vs policy Managing Travel Services Supply Acquisition > Based on the agreed upon arrangements through internal operations ( suppliers and travel company can be agreed upon ) > Final arrangments are supported by written and official purchase vouchers and payment agreements and arrangements Product Presentation ➢ Final arrangements need to be advised with complete details ➢ Recap the agreed upon arrangements and supplies that were finalized ➢ Changes , alterations and revisions can be addressed . Thus , if any has been changed , it will to be rebooked, re-finalized and reconfirmed . Cost analysis can also be explained . This should be able to account to realize savings vs approved budget Document Turn Over/Predeparture Orientation >Regardless if the traveler is an individual or a group , this part of the cycle is a must. > Travel Consultant can give a “run-through” of the details as if the passenger/s is/are already in the travel proper . Actual documents are turned over . The physical presentation of passports , visas , vouchers and other pertinent papers. If F2F PDOS is not possible , written version must be send thru email or handed together with the documents. Implementation/ Delivery Proper Post-arrangement Evaluation ➢ Completion of the products and services rendered by the respective suppliers are finalized and reconfirmed ➢ TMC can provide a 24/7 facility to monitor the delivery and to make sure that the client/s experience every step of the way. ➢ Main objective is to gather and evaluate the information that transpired during the product execution . Information is necessary to future reference . Data can be analyzed. Key Concepts 1. Travel Management Cycle – It is the complete process of travel management . It is an integrated procedure that generates an acceptable travel arrangement involving verification of requirements, planning , accounting , travel implementation and evaluation . It also involves fund management and supplies quality control . 2. Market Segmentation – This is grouping and sorting probable buyers with common parameters . It helps companies focus and concentrate on their preferred consumers. This segmentation can be used as a guide to evaluating marketing strategies and tailor-fitting approaches. 3. Travel Requirements- There are specifications of travel necessities . They can be categorically defined based on the conditions and provisions of the traveling individual and the destinations. 4. Travel Policies – This is a set of rules and guidelines prescribed by organizations in order to set proper regulations of the travel management of the companies. DISCUSSIONS QUESTIONS • 1. Using the cycle as a reference , when does the initial contact of the requirements and the travel consultants happen ? • 2. In the complete cycle , what do you think is the most important part of the process ? • 3. When in the cycle will it be the best to finalize and firm up the detailed arrangements ? • 4. Why is the post –evaluation imperative in order to complete the cycle ? TOUR OPERATIONS CYCLE What is tour operations ? 2 pts (1-2) STAGE 1 2 PROCESS PLANNING/PLAN GROUNDWORK CONTRACTING AGREEMENT DETAILS ➢ Objectives in planning are (3-6 complete the sentence ) ➢ The following that we have to considered when doing a tour itinerary ? (7-16 enumerate ) ➢ Agenda : To meet the exact and specific need of the market ➢ Identified the 2 contracts ? ( 17-18) ➢ There are rules , restrictions , policies and inclusive clauses in every supply and service . These need to be agreed upon by the TMC and the (19 ). More often than not, these are protected by written and signed contracts . All stipulations are stated for future reference. In the event that a necessity to review the contract arises , all stipulations are clearly written . This contains all the needed details ( e.g. room categories , rate inclusions , cancellation policies , payment details , concessions , validity and all other details need to be agreed upon by both parties . This is also the best time to perform the tour planning and itinerary development. ➢ ( See attached sample ) SAMPLES OF CONTRACTS ……continuation STAGE PROCESS COSTING / PRICING 3 4 QUOTATION COST ANALYSIS and TARIFF DETAILS > At this stage , the supplies and inclusive services are well identified . All included services must be label their critical information. This stage will guide the product developer / tour planner on what specified at cost or ( 20 ) . Tour package costing and pricing assure that the “economics” of the itinerary and the whole program are considered. > Every office / TMC has a different format in presenting the quotation . A quotation must include written narratives of the details of all the arrangements, fees and value propositions . Quotation can be sent through email . However, there are some TMC present the quotation face to face or as needed. This stage can perform the (21) of the TMC to the client . … continuation STAGE PROCESS RESERVATION SUPPLY ACQUISITION 5 DETAILS ➢ To secure the involved the products and services, reservation needs to be done . Acquiring the supply will depend on the availability of the fare level and the reservations and confirmations . Terms mostly used are the ff : ➢ “ Rates are subject to change without prior notice” ➢ “ Rooms are subject to availability ➢ “ No booking had been made yet” ➢ “ Option to issue ticket is on or before ____” > After all the reservations and services are finalized , it is very necessary to collate 6 7 CONSOLIDATION MERGING everything and look at all possible vouchers , reconfirmations numbers and service references among all other documentation that the passengers need to bring. Merging services that are delivered by once service wholesaler is proper in order to see the relative importance of service monitoring . SUBMISSION ➢ The final program needs to be handed to the clients in the given time . This means submitting the “finalized” tour program/itinerary and receiving the acceptance seal on ACCEPTANCE the agreement stipulated in the proposal. FINAL ➢ This is also the stage that clients formally manifest their acceptance. Carefully AGREEMENT reviewing all the details is a must ( discussed in the management cycle).Proper specification is presented and for execution – “Field Operations” ..continuation STAGE 8 9 PROCESS ACCOUNTING FINANCIAL DOCUMENTATION POST PRODUCT EVALUATION PROCEED TO START CYCLE AGAIN DETAILS ➢ This is the stage to bill the clients . TMC normally have agreed on credit terms or arrangements ( payment scheme) . The accounting department of the TMC is directed by the Finance Director/ Manager is responsible for credit / arrangements . The services and products need to be properly billed and collected . Only when transactions are paid , we call the process “closed” or “completed”. Make sure that all agreed service fee, handling fees , mark ups and commissions are incorporated in the complete billing. ➢ These need not to be itemized or as preferred by the client . Normally, mark-ups and commissions are not reflected in the Pro-forma invoice / Statement of Account. ➢ The USD / PHP need to be stipulated properly to avoid the cost of money for both parties. Failure to bill it properly can cause delay or worst is – it is called “underquote” wherein the reservation or person in charge must shoulder the difference. ➢ Feedbacking , just like any communication cycle post –evaluation , is equally necessary to complete the cycle . This stage is for assessment based on the client/s actual experience. ➢ The primary objective is to identify the areas that can be sustained or improved for future requrements. ➢ Commence with the market to get the needed requirements ➢ Touchbase for groundwork / planning . NOTE: This cycle must not be confused with the Travel Management Cycle. The Tour Operations Cycle deals primarily with the details of the tour components such as the contracts , restrictions , inclusions and complete matrix of the tour proper. KEY CONCEPTS • 1. Tour Operations Cycle - This pertains to the assembly of a different matrix / activities using the specified travel requirements , products and services intended for use of the client . • 2. Product Development - In the travel management context , it is the process of putting together all the specifications of the customer with the agreed upon details. This can be new and considered “tailored” or it can be an impoved version of an already existing product . • 3. Post-Program Evaluation – This is very important stage of the cycle. This assesses the inclusions , supplies , arrangements and the execution of delivered travel arrangements. It will involve collecting feedback and using the information to review the matrix of the product . Results of evaluations are collated for future reference to sustain or improve future travel movements. QUIZ QUESTIONS ( 4 pts ) • 1. All the stages of the tour operations cycle are important. Which part of the cycle do you think is the most critical ? • 2. Why is “ contract” essential in the whole context of tour operations? • 3. During the product implementation, how can a travel management company assure its presence while the tour arrangements are ongoing ? • 4. What is the relationship between the published rate and the contracted rate ? Experiential Exercises 1. Mr. Go and his family will travel to Singapore . Mr. Go would like to stay in the most expensive hotel in Singapore for 3 nights . He wants to occupy the single room while his family ( mother , wife and his daughter 15 yrs old ) will stay in another hotel with breakfast . Budget for the family of Mr. Go is not lower the USD 100 but not higher than USD 200. Please quote Go family for the hotel reservation . ======================================================== A. Use your own TMC reservation / booking form ( 5 pts) B. Use your own TMC purchase order to pay the cost to supplier ( 10 pts) C. Use your own TMC statement of account to quote to Mr. Go ( 10 pts) ============================================================= NOTE : Mark-up is 30% . Use the sample attached contracted rate .
