Tour is arranged as per the demand of customers. It is a freedom of customers to select the travel. The selection of places of interest and components of package tour is decided as per the wish and budget of customers. This type of tour is designed for the working class people whose budget of expenditure is limited and their choice of place is largely different from others. There can be small or large groups with maximum freedom of deciding how, when and where to travel, stay and halt.
Review Questions:
1. What do you mean by package tours?
(QXPHUDWH WKH FODVVL¿FDWLRQ RI SDFNDJH WRXUV 3. Discuss the concept of freedom tours.
4. Make a list of package tours promoted by the tour operators
5. Activity: Visit one tour operating company and one franchise and observe the operation and functioning of package tour designing.
5.2 Components of Package
The elements of a package tour determine the sale of package tour in the travel market.
The tour includes the services that are the sum total cost of related and complementary services. Tour operators take the services from the airlines, hotels, cruises, railways, ground transport, and event planner. In order to make a package tour more appealing and attractive, tour wholesalers examine the buying ability of customers and the cost of FRPSRQHQWVRIWKHSDFNDJHWRXUDQG¿QDOO\DGGDSUR¿WPDUJLQWRDUULYHDWWKH¿QDOSULFH of the package tour. Generally, tour packages are determined by the market demand and trends and tour companies try to reduce the cost of buying the services through aggressive QHJRWLDWLRQV DQG SRVLWLRQ WKH SDFNDJHV DW WKH ULJKW WLPH WR KDYH WKH ÀH[LELOLW\ RI JLYLQJ price tag. Tour operators assemble components of services to enrich the experience of tourists. The following component of services is delivered assembled in package tours.
These are the following elements of package tours.
Accommodation: Accommodation is an important component of package tour and it constitutes almost one third cost of package. There are primary and supplementary accommodation service providers. The star hotels, business hotels, resorts and international
48
hotels are the conventional accommodation operators with the provision of providing room cum food services. The supplementary accommodation service providers are lodges, guest houses, bungalows, service apartments, etc. Tour operators include the services of both the categories depending on the cost of package tours and affordability of customers.
Sightseeing Tour: Sightseeing is one of the most important elements of a package tour. It is an integral part of a package tour as it offers conducted tours to the places of tourist interest in the cities. Tour operators arrange for more activities in the sightseeing or excursion tours. Each member of the conducted sightseeing tour is billed in such a PDQQHU WKDW WKH FRVW RI FDUV RU FRDFK VHUYLFHV LV HTXDOO\ GLYLGHG DPRQJ WKHP
Airlines: Air travel is an important component in the package tour segment. This includes LQWHUQDWLRQDODQGGRPHVWLFÀLJKWWLFNHWVDQGRQERDUGVHUYLFHV7RXURSHUDWRUVFDQLQFOXGH WKH¿UVWFODVVEXVLQHVVFODVVHFRQRP\FODVVH[FXUVLRQIDUHLQWKHSDFNDJHWRXUWRFDWHU different segments of customers.
Railways: Tour operators include the train travel and other on-board services in domestic sector. It is an important mode of travel to reach various off-the-beaten-track destinations as air connectivity is limited in many countries. For example, the Indrail pass, Eurail Pass,
%ULWDO3DVVDQG$075$.DUHERRNHGLQDGYDQFHWRSURYLGHDOWHUQDWLYHDQGTXLFNHVWPRGH of transport and different experience to the visitors.
Car Rental Service: Luxury car service is an important element of package tour as it is primarily needed at the time of arrival, departure and sightseeing. A wide range of luxury FDUV LV FXVWRPL]HG IRU VLJKWVHHLQJ DQG H[FXUVLRQ WRXUV$Q DQQXDO FRQWUDFW ZLWK ÀDW UDWH is done for the smooth operation of car rental services. Tour operators have now adopted the latest technology to make the schedule of cars.
Luxury Coach Service: All the conventional package tours include the luxury coach services provided it is a group travel. Each tourist coach is customized with elevated bucket seats, white window glass, micro phone, air conditioning, and refrigerator. For example the KPN travels provides luxury Volvo coach services for sightseeing and excursion trips.
Cruise or Ferry Services: Cruise Liners themselves promote the all-inclusive packages and get it promoted through the wholesale and retail travel agent. They include room, food, drinks, sightseeing, entertainment, casino, etc. On–board package tours also comprise the service of ferry operators so as to provide alternative and safe conveyance service.
For example, the Royal Virgo operates luxury cruise liners for high-end tourists across the countries.
Travel Agency and Tour Operations Business
49
Event Services: Tour operators take the services the MICE operators for the purpose of booking venues, food, conference kits, and pre & post-conference sightseeing programmes.
Event management companies appoint tour wholesalers to sell the packages.
Insurance: Tour packages are insured for compensation to the tour operators or guests in the event of cancellation. Thus, insurance is included in the package tour. Health and luggage insurance are included the package tour. For example, Bajaj Allianz and TATA AIG have customized travel insurance for the foreign outbound travel for Indian travelers.
Ground Handling Services: Apart from arranging the luxury cars and coaches, the services of guides and language interpreters, entrance fees and transfer and drop are also included in the package tour.
Miscellaneous Services: This service includes porter at airports and railway stations, tips to guides, interpreters and room boys, entrance fees, gifts and welcome dinners.
Review Questions:
1. Explain the components of package tours.
2. What are the different types of accommodation services?
3. What do you mean by ground handling services?
4. Find the difference between primary and complementary services in the package tour?
5. Activity: Interact with two or three executives of a large tour operation companies DQG ¿QG RXW KRZ WKH SDFNDJH WRXU FRPSRQHQWV DUH DVVHPEOHG
5.3 Customized or Tailor-Made Package and Group Inclusive Tours
Customized or Tailor-made package is designed for the Free Independent Traveler (FIT) or Group Inclusive Tour (GIT). In most cases, packages are customized with personalized services for the FIT category of customers. The FITs make free movement of travel across destinations with the intention of exploring new places and attractions as per their convenience. The FITs are novelty seekers and can manage in any hostile environment with basic facilities and amenities. They mentally tune to get adjusted with the facilities as the exploring new places are the primary activity. These groups consist of a minimum RIWZRDQGDPD[LPXPRI¿YHPHPEHUVDQGSUHIHUWROX[XU\KRWHOVDQGUHVRUWVRUVWD\LQ hostels, government guest houses, and paying guest houses and the bed-and-breakfast scheme or the European Plan (EP) is preferred. Independent tourists generally shy away from the crowded places and look for exclusivity and privacy. However, FITs can organize the tour on their own and ask the tour operators for selected services. The business of
50
),7 LV RSHUDWHG WR UHDFK RXW WKH QLFKH FXVWRPHUV DV LW VDWLV¿HV WKH OLIHVW\OH DQG WUDYHO behaviour.