COMMUNITY GUIDING WORKSHOP
VALUES FORMATION & EFFECTIVE CUSTOMER
SERVICE: THE RELATIONSHIP BETWEEN TOUR
OPERATOR & TOUR PACKAGE
by
Reynaldo A. Jorda, Ph.D.
Overview
The Philippines has a total of 9 tourism products and these are:
1. Nature Tourism
2. Cultural Tourism
3. Sun and Beach Tourism
4. Leisure and Entertainment Tourism
5. MICE and Events Tourism
6. Health, Wellness and Retirement Tourism
7. Cruise and Nautical Tourism
8. Diving and Marine Sports Tourism
9. Education Tourism.
Overview
Tourism involves experiencing
contact with different intensity of the
following:
1. Unique social fabric of Alabat;
2. Heritage sites; and
3. Special characteristics of Alabat.
Source: Blackwell, Schweitzer in McKercher and du Cros (2002)
Learning Outcomes
1. Define a tour operator & tour package;
2. Enumerate their different types or classification;
3. Establish their link to the delivery of customer
value, satisfaction, and delight;
4. Identify potential service gap in the delivery
system; and
5. Formulate strategies to minimize the service
gap.
Learning Content
Topic Description
Overview
1 Tour Operator
2 Tour Package
3 Preparation of Tour Package
4 Appropriate Mix
5 Quality Tourism Product
Conclusion
COMMUNITY GUIDING WORKSHOP
Topic # 1: Tour Operator
Tour Operator
Leipers Tourism System
1 3
4
5
Tour Operator
Organizational Structure of a Travel Management Corporation (TMC)
General Manager
Administrative Sales & Marketing
Operations Department
Department Department
Freelance or Staff Tour Freelance or Staff Tour
Guide Escort or Leader
Inbound Outbound
Source: Claravall, B. ( 2013)
Tour Operator (TO)
A Tour Operator is an
1. Intermediary between
suppliers of travel products
& services and the
travelers;
Source: Claravall, B. (2013)
Intermediary
TOUR OPERATOR
Transportation Industry Lodging Industry
F & B Industry Attractions Industry
Traveler
Tour Operator
A Tour Operator.
2. Contracts the transportation
services for access,
accommodation for lodging and
meals, entities for attractions and
activities, and the tour guides;
Source: Claravall, B. (2013)
Contracting
Service Suppliers Rate
Lodging Industry Contracted rate/ Favorable terms &
conditions (2 + 1)
Land Transportation Jeepney or Tricycle
F & B Industry Favorable Terms & conditions
10 + 1, Guide + Driver (FOC)
Attractions & Activities Favorable terms & conditions
10 pax + 1
Tour Operator (TO)
A Tour Operator
3. Assembles the different
travel products & services into
a single tour package; and
4. Delivers the tour package to
the travelers.
Source: Claravall, B. (2013)
Assembling
Tourism Supply Chain
Source: Page, S. (2009)
Types of Tour Operator
1. Local Tour Operator
2. Domestic Tour Operator
3. Inbound Tour Operator
4. Outbound Tour Operator
Types of Tour Operator
Type Description
Local tour operator Business comes from both local and foreign travelers
visiting the attractions where the TO is based.
Clientele is generally off the street and over-the-
counter sales and other TOs in the country.
Operates regular sightseeing tours or tour packages to
popular attractions in the locality.
A retailer - It deals directly with end-users, and
occasionally as a wholesaler, when servicing the
requirements of another TO.
Local Tour Operator
Tour planning, itinerary
development, contracting
rates, costing & pricing,
quotation & proposals
Inbound Local Tour
Outbound
Market Source Tour Operator
Tour
Operator Operator
Area of Ex: Ex:
Ex: Malaysia
Operation Philippines ANGELES
reservations& confirmation,
field operations, billings &
accounting, and evaluation
Types of Tour Operator
Type Description
Domestic tour Business comes from local associations,
operator schools, companies and corporations
and, occasionally, individual travelers
who organize summer outings, out-of-
town meetings, incentive trips to
national attractions.
The tour packages are ad hoc.
Domestic Tour Operator
Tour planning, itinerary
development, contracting
rates, costing & pricing,
quotation & proposals
Domestic
Outbound Inbound Tour
Market Source Tour
Tour Operator
Operator Operator
Area of Ex: Malaysia Ex: Ex:
Operation Philippines ANGELES
reservations& confirmation,
field operations, billings &
accounting, and evaluation
Types of Tour Operator
Type Description
Inbound tour Business comes from foreign (outbound)
operator tour operators at the origin country who
send clients to national destinations, on
regular or ad hoc packages , based on the
requirements of their clients, and
regardless of their nationality.
Inbound Tour Operator
Tour planning, itinerary development,
contracting rates, costing & pricing,
quotation & proposals
Malaysian
Travelers
Products &
FITs Services
Group Inbound
Outbound suppliers
Tour
Tour
Personal Operator
Operator Transportation
Corporate Lodging
Ex: F&B
Ex: Malaysia Tourism attractions
Technical Tour Philippines & activities
Study Tour
Adventure
Mixed
reservations& confirmation,
field operations, billings &
accounting, and evaluation
Types of Tour Operator
Type Description
Outbound tour Designs and assembles tour packages
operator for residents of the Philippines, either
foreign or local, to destinations abroad.
The popularity of a destination overseas
or the specification requirements of the
traveler, either groups or individuals,
determine the type of package.
Outbound Tour Operator
Tour planning, itinerary development,
contracting rates, costing & pricing,
quotation & proposals
Filipino Travelers
Products &
Services FITs
Inbound Outbound Group
suppliers Tour Tour
Operator Operator Personal
Transportation
Corporate
Lodging
F&B Ex: Ex:
Tourism attractions Malaysia Philippines Technical Tour
& activities Study Tour
Adventure
Mixed
reservations& confirmation,
field operations, billings &
accounting, and evaluation
Highlight
A Tour Operator is
not strictly structured;
combines two or three types, of
a Tour Operator; and
main function and activity
determine its type.
COMMUNITY GUIDING WORKSHOP
Topic # 2: Tour Package
Tour Package
The Tour Package is the
product of the TO.
The Tour Package is a
combination of two or
more tourism products
and/or services of a travel
supplier.
Source: Clarvall, B. (2013)
Types of Tour Package
Ground Arrangements
Land Arrangements
Inclusive Tour Packages
Inclusive Escorted Tour
Packages
Source: Clarvall, B. (2013)
Ground Arrangements
Services Description
Transfers Transfer in (Seaport to Hotel)
Transfer out (Hotel or Seaport)
Sightseeing tours Half Day Alabat Tour
Whole Day Tour
Land Arrangements
Services Description
Transfers Transfer in (Seaport to Hotel)
Transfer out (Hotel or Seaport)
Sightseeing tours Half Day Alabat Tour
Whole Day Tour
Hotel accommodation Homestay
Elbert Lodge II
Inn
Inclusive Tour Packages
Services Description
Transfers Transfer in (Seaport to Hotel)
Transfer out (Hotel or Seaport)
Sightseeing tours Half Day Tour of Alabat
Whole day Tour
Hotel accommodation Homestay
Elbert Lodge II
Inn
Transportation Sea or Land
Inclusive Escorted Tour Package
Services Description
Transfers Transfer in (Seaport to Hotel)
Transfer out (Hotel or Seaport)
Sightseeing tours Half Day Tour of Alabat
Whole Day Tour
Hotel accommodation Homestay
Elbert Lodge II
Inn
Transportation Air, Sea or Land
Tour Escort Tour guide from the point of origin.
Tour Package: 4D-3N Manila Tour
(Inclusive Escorted Tour Package)
Lodging
Attractions
F&B
Attractions & Activities
Land Transportation
Classification of Tour Package
Regular Tour package
Ad Hoc Tour Package
Source: Claravall, B. (2013)
Classification of Tour Package
Classification Description
Regular Tour Assembled based on the PERCEIVED
Package NEED or INTEREST of traveler. Pre-
packaged and feature well-known
attractions that have a high demand. Ex:
2N-3D Honeymoon Package of El Nido.
Ad Hoc Tour Packages that are tailor-made/customized
Package to the real needs of travelers. Ex: 3N-4D
Technical Visit of Thailand Doctors
Ad HocTour Package
Lodging
Attractions
F&B
Attractions & Activities
Land Transportation
Variables of Tour Package
1. Duration
2. Destination
3. Accommodation category
4. Meal Plan
[Link] & Class of
Transportation
Source: Clarvall, B. (2013)
Tour Package Variables
Variables Remarks
1. Duration Number of days and nights included in the tour
package.
2. Destination Single or multiple destinations.
3. Accommodation Depending on the star system.
Category
Resort Hotels are categorized as AAA. AA,
or A
4. Meal Plan Number of meals per day included in the
package.
If all meals are included, its Full Board; Lunch
& Dinner only Half-Board; Breakfast only Bed-
and-Breakfast.
Tour Package Variables
Variables
4. Meal Plan Continental Breakfast includes coffee or tea with rolls,
jam and butter;
American breakfast includes eggs and bacon or ham plus
toast;
Filipino Breakfast includes plain rice, tapa or daing.
Oriental Breakfast includes rice porridge and a number
of side condiments.
Buffet Breakfast is a table laden with breakfast food and
self-service.
5. Mode & class of Mode refers to air, sea or land travel. Class refers to the
transportation grade of service, facility and amenities offered to the
passengers.
Highlight
1. Duration
5. Mode &
Classification of 2. Destination
Transportation TOUR PACKAGE
1. Type
2. Classification
4. Meal Plan 3. Accommodation
Highlight
No two individuals are alike, and
differences in attitude,
perceptions and motivation have
an important influence in travel
decisions (where) attitudes
depend on the individuals
perception of the world.
The travel motivator determines
the type of services selected.
COMMUNITY GUIDING WORKSHOP
Topic #3: Steps in the Preparation
of a Tour Package
Tour Package Preparation
1. Tour planning
2. Itinerary development
3. Contracting rates
4. Costing and Pricing
5. Quotations and Proposals
6. Reservations and Confirmation
7. Field operations
8. Billings and Accounting
[Link]
1. Tour planning
It is the process of determining the
objectives to be achieved such as:
Customer satisfaction
Destination or community
endorsement
Organizational promotion
Financial gain
Combination of all
2. Itinerary Development
It is the process of identifying
and selecting the BEST
suppliers suited to provide
the services required in the
tour package beginning with:
Transportation
Lodging establishments
Sights to see and activities to
engage in
Ancillary services
3. Contracting Rates
It is the process of negotiating
and collating from a set of
identified suppliers rates that
are MORE COMPETITIVE
than the published rates
known as contracted rates.
Contracted rates ranges from
30-50% discount.
4. Costing & Pricing
It is determining the costs of
the various components,
activities or services included
in the tour package
depending on the number of
pax availing of the package.
After calculating the
approximate profit from each
component and adding this
to the cost, the result is a
Quotation.
5. Quotations & Proposals
They are prepared for Ad
Hoc Tour Package based on
a required minimum
number of pax and in
accordance with the specific
activities, inclusions and
requirements of the traveler
6. Reservations and Confirmation
It involves the process of
placing advanced requests for
available space or service at
some time in the future and
obtaining confirmation of
these.
6. Reservations and Confirmation
A confirmation is a written
advice by a supplier that a
reservation has been
accepted and will be
honored, thus the term
confirmed reservations.
If necessary, alternative
reservations are to be made
when confirmations cannot
be obtained from the
preferred supplier.
7. Field operations
It covers the actual delivery
of services from arrival to
departure.
Once completed, the focus
of attention shifts to the
field in order to determine
the level of preparation
done in the office.
8. Billing and Accounting
It involves the preparations
of invoices for deposit
payments and balance due,
and the collection of
payments from the clients,
preferably prior to the
arrival and the payment
due to all suppliers.
9. Evaluation
It compares the Tour Operators
performance with the actual
results of the tour.
Transportation Ad HocTour Package
Duration
Accommodation
Meal Plan
Meal Plan
Transportation
Highlight
Challenge to a Tour Operator
APPROPRIATE PRODUCT
MIX - It means the quality of the
attractions and facilities must be
present for tourists to travel and
receive satisfaction from the
tourism experience in Angeles
City.
Source: Kastarlak and Barber (2011)
COMMUNITY GUIDING WORKSHOP
Topic # 4: Product Mix
Appropriate Mix
The tourist should be
understood from two
perspectives that shape his
choice to travel to a
particular destination.
Appropriate Mix
1. The motives of the tourist to
travel; and
2. The perception of the
tourist about the image of the
destination.
Appropriate Mix
The motivation to travel by
each individual must be linked
to a suitable tourist destination
that best meets the travelers
motivators.
Source: Claravall, B. (2013)
Appropriate Mix
The TO must establish the link
between travel motivators and
the type of destination to be
selected by a Tour Operator.
Source: Claravall, B. (2013)
Appropriate Mix
Motivation is a state of need, a
condition that exerts a push on
the individual towards certain
types of action that bring
satisfaction.
Source: Mountinho (1987) in Page (2009)
Appropriate Mix
Tourist demand is about using
tourism as a form of
consumption to achieve a level
of satisfaction for an individual,
and involves understanding
their behavior and actions and
what shape these human
characteristics.
Source: Page (2009)
Appropriate Mix
Tourist Behavior
5
Source: Pearce (2005)
Appropriate Mix
Intrinsic motivational forces
It refers to the individuals
unique personal needs that
stimulate or arouse them to
pursue tourism.
Source: Page (2009)
Appropriate Mix
Intrinsic motivational forces
Some of these needs are
individual needs like:
1. Becoming a tourist for self-
improvement or what is termed
self-realization;
Source: Page (2009)
Appropriate Mix
2. Achieve a state of happiness;
or
3. Boost ones ego because of the
personal confidence building that
travel can encourage.
Source: Page (2009)
Appropriate Mix
Extrinsic motivational force
It refers to the broader
conditioning factors that shape
individuals attitudes,
preferences and perceptions
but are more externally
determined for example, the
society and culture one lives in
will affect how tourism is
viewed. Source: Page (2009)
HIGHLIGHT
The Relationship between needs, motivations,
preferences and goals in individual holiday choice
Source; Goodall, B. in Page, S. (2009)
COMMUNITY GUIDING WORKSHOP
Topic # 5: Quality Tourism product
Topic # 5: Quality Tourism Product
Philippine Tourism Products
Tangible Elements Intangible Elements
Attractions & Activities Facilities Service Image Business
Performance environment
Quality Tourism Product
QUALITY is
interpreted relevant to
the full spectrum of the
service sector.
Source: Page (2009)
Quality Tourism Product
QUALITY is meeting
customer expectations
or demands. Suitability
to meet customer
demands is the most
important, element of
the concept of quality.
Source: Page (2009)
Quality Tourism Product
Intangible Elements of Supply
Service performance refers to
the competencies and skills of
all service providers to solve
the tourists problems in order
to deliver
Customer value
Customer satisfaction
Customer delight
Quality Tourism Product
CUSTOMER
Value
The benefit that a traveler
gains from visiting the .its cost (Material
Bicol Region investment) and time
(non-material investment)
Quality Tourism Product
CUSTOMER
Satisfaction
If the performance of the
tourism product matches
a tourists expectations the tourist is satisfied.
Quality Tourism Product
CUSTOMER
Delight
If the performance of the
tourism product exceeds a ..the tourist is delighted.
tourists expectations
Conclusion
Based on the discussion
above, the Tour Operator
receives input in the design
and development of a tour
package from the needs,
wants and demands of a
traveler.
Conclusion
The lesser the service
gap between the travelers
expectations and tour
package, the higher is the
level of customer
satisfaction.
The wider the service
gap between the travelers
expectations and tour
package, the lower is the
level of customer
satisfaction.
Highlight
Provides
input to the
design of the
Tourists needs, tour package
wants and
Sustain the link demands
between tourist
need & demand CUSTOMER
DELIGHT
& tourism
products.
Service Tourism
Performance Products
Tour Guide
Thank you very much
