{"id":5191,"date":"2022-01-06T17:03:53","date_gmt":"2022-01-06T17:03:53","guid":{"rendered":"https:\/\/ihmnotessite.com\/?page_id=5191"},"modified":"2022-01-06T17:05:48","modified_gmt":"2022-01-06T17:05:48","slug":"tour-package-formulation-its-design","status":"publish","type":"page","link":"https:\/\/ihmnotessite.com\/index.php\/tour-travel-management\/tour-package-formulation-its-design\/","title":{"rendered":"TOUR PACKAGE FORMULATION ITS DESIGN"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-page\" data-elementor-id=\"5191\" class=\"elementor elementor-5191\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-74a42c0 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"74a42c0\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-9490c56\" data-id=\"9490c56\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-090d13e elementor-widget elementor-widget-image\" data-id=\"090d13e\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"1000\" height=\"827\" src=\"https:\/\/ihmnotessite.com\/wp-content\/uploads\/2022\/01\/TPKG.jpg\" class=\"attachment-large size-large wp-image-5160\" alt=\"\" srcset=\"https:\/\/ihmnotessite.com\/wp-content\/uploads\/2022\/01\/TPKG.jpg 1000w, https:\/\/ihmnotessite.com\/wp-content\/uploads\/2022\/01\/TPKG-300x248.jpg 300w, https:\/\/ihmnotessite.com\/wp-content\/uploads\/2022\/01\/TPKG-768x635.jpg 768w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-1a011b2 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"1a011b2\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-52ab926\" data-id=\"52ab926\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-b6ac23a elementor-widget elementor-widget-text-editor\" data-id=\"b6ac23a\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<h3><span style=\"color: #000000;\"><u>TOUR PACKAGE DESIGN AND SELECTION PROCESS<\/u><\/span><\/h3><p><span style=\"color: #000000;\">The quality of a package tour is entirely based on the above factors. Essentially, to design\/formulate a travel product, the tour manager has to take the biggest responsibility, intuitiveness, imagination, and innovation coupled with a lot of business activities which range from finding new exotic destinations and planning, organizing or promoting such tour.<\/span><\/p><p><span style=\"color: #000000;\">The following are the main stages in the tour design and selection process:<\/span><\/p><h2><span style=\"color: #000000;\">1# Initial Research<\/span><\/h2><h3><span style=\"color: #000000;\">(i) The Destination Research<\/span><\/h3><p><span style=\"color: #000000;\">The decision to develop and formulate a new package is a multi-stage process that involves various positive and negative points\/steps. Normally, the idea for a new product comes either from the tour executive within the company due to a review of the questionnaire completed by the previous tour members because of the political, economic and social development in a particular area.<\/span><\/p><p><span style=\"color: #000000;\">When a tour manager see that a large number of old clients are interested in taking a trip to particular destinations, naturally, those destinations become the nucleus of a new \u2018tour concept\u2019.<\/span><\/p><h3><span style=\"color: #000000;\">(ii) Market Research<\/span><\/h3><p><span style=\"color: #000000;\">Since tour package is a complete tourism product, obviously, before formulating\/designing this product, market research needs to be analyzed and assessed in a systematic manner. Market\u00a0 research provides us the answer to the following questions:<\/span><\/p><ul><li><span style=\"color: #000000;\">What is the size of the tourism market?<\/span><\/li><li><span style=\"color: #000000;\">Who are the existing clients?<\/span><\/li><li><span style=\"color: #000000;\">Where do they live?<\/span><\/li><li><span style=\"color: #000000;\">Who will be their potential buyers?<\/span><\/li><li><span style=\"color: #000000;\">Who are their competitors \u2013 their strategy and area of business leisure?<\/span><\/li><li><span style=\"color: #000000;\">How many tourist ones want to cater?<\/span><\/li><li><span style=\"color: #000000;\">What price will the clients accept?<\/span><\/li><li><span style=\"color: #000000;\">What facilities are available and required?<\/span><\/li><li><span style=\"color: #000000;\">What are the constraints viz., license, permission, finance, restrictions, taxes, and others?<\/span><\/li><\/ul><p><span style=\"color: #000000;\">Once we know the basic components of the package tour, distribution channels, market conditions, constraints in the tourism market, we can develop the marketing strategy. It enables the smooth functioning of the agency and also offers a clear picture of the tour programme. Practically, market research is conducted by the private tour companies\/ private tourism enterprises in order to penetrate the market.<\/span><\/p><h2><span style=\"color: #000000;\">2#\u00a0Itinerary Preparation<\/span><\/h2><p><span style=\"color: #000000;\">By itinerary one means the designing of a programme which one wants to sell and it includes destinations, stopping points, number of days and the travel services that are to be included in the programme. Whether it is a lean season or an offseason, escorted or not escorted, consumer-oriented or readymade tour programme, the itinerary is prepared to identify the origin, destinations, stopping points, accommodations, sightseeing and other travel services on travelers\u2019 trip.<\/span><\/p><h2><span style=\"color: #000000;\">3#\u00a0Handling Agency or Destination Company<\/span><\/h2><p><span style=\"color: #000000;\">The appointment of handling agency not only ensure excellent travel services to the tourist but also make the operation smooth and profitable. It is a matter of great significance as the success of travel business largely depends upon the clients are actually taken care of during the tour.<\/span><\/p><p><span style=\"color: #000000;\">It is a positive match between the promised services and tourist\u2019s actual experiences or feelings. Thus, the tour operator should consider the experience of the handling travel agency in the business, the area of operation, reputation, credibility, professional staff, credit facilities and the competitive price in appointing a handling agency.<\/span><\/p><h2><span style=\"color: #000000;\">4#\u00a0Negotiation<\/span><\/h2><p><span style=\"color: #000000;\">It is another important management decision area in tour designing and planning. Once the decision has been made regarding the destination\u2019s concerning their date, duration and number of clients to be carried during the trip, the tour management starts negotiations with the principals\u2019 suppliers for a normal contract.<\/span><\/p><p><span style=\"color: #000000;\">Negotiation means talk between the travel companies and the principal suppliers for the terms, conditions, and prices of the components of a tour package. When both parties are satisfied, it leads to a formal or informal contract between them. The tour company negotiates with the following tour vendors\/suppliers:<\/span><\/p><ul><li><span style=\"color: #000000;\">Airlines<\/span><\/li><li><span style=\"color: #000000;\">Accommodation<\/span><\/li><li><span style=\"color: #000000;\">Transport Operations- Rail and Road<\/span><\/li><li><span style=\"color: #000000;\">Ground Operators<\/span><\/li><li><span style=\"color: #000000;\">Cruise Companies<\/span><\/li><li><span style=\"color: #000000;\">Car Rental Companies<\/span><\/li><li><span style=\"color: #000000;\">The overseas representatives<\/span><\/li><li><span style=\"color: #000000;\">Ancillary Service Organizations<\/span><\/li><\/ul><h2><span style=\"color: #000000;\">5# Coasting and Pricing a Package Tour<\/span><\/h2><p><span style=\"color: #000000;\">The cost of a package tour encompasses the air ticket, the hotel room, car rental, entertainment charges, administrative costs, promotional costs, and other travel services. The confidential tariff helps the travel company in preparing the cost sheet which will enable the concern to determine its price strategy.<\/span><\/p><p><span style=\"color: #000000;\">Tour pricing is a big factor in the success of the company\u2019s tour programme. The price of a package tour is, whether it is an escorted, independent or hosted the tour, often lower than the combined costs of the same components purchased separately from the principals. However, the purchase price of a travel product is based on three factors: Cost, competition, and demand.<\/span><\/p><p><span style=\"color: #000000;\">Every tour package sold by a vendor has a quantifiable cost. To produce profit the price paid by the tourists must be greater than the agency\u2019s cost.<\/span><\/p><h2><span style=\"color: #000000;\">6#\u00a0Tour Brochure<\/span><\/h2><p><span style=\"color: #000000;\">The tour package is an intangible product which has to be purchased by the tourists\/clients without inspection and sometimes even without adequate knowledge. In these circumstances, the brochure becomes the principal instrument to perform the major tasks to inform the clients about the products and to pursue them to purchase it.<\/span><\/p><p><span style=\"color: #000000;\">Designing, printing, and distributions of tour brochures require necessary skills and knowledge about the components of the tour package. Basically, in the era of specialization and intense competition, tour brochure creates awareness and provides the description of the holiday programme.<\/span><\/p><p><span style=\"color: #000000;\">Thus, tour management should consider various pros and cons while preparing a tour brochure. A brochure should contain\u00a0the following information:<\/span><\/p><ul><li><span style=\"color: #000000;\">Name of the Travel Company<\/span><\/li><li><span style=\"color: #000000;\">Means of transport<\/span><\/li><li><span style=\"color: #000000;\">Details about destinations<\/span><\/li><li><span style=\"color: #000000;\">Itinerary<\/span><\/li><li><span style=\"color: #000000;\">Accommodation, types, location, meals<\/span><\/li><li><span style=\"color: #000000;\">Name of the overseas representative<\/span><\/li><li><span style=\"color: #000000;\">Duration of each tour<\/span><\/li><li><span style=\"color: #000000;\">Booking, reservation and cancellation conditions<\/span><\/li><li><span style=\"color: #000000;\">Details of other services \u2013 insurance, currency, entertainmentTravel documents required<\/span><\/li><li><span style=\"color: #000000;\">Details of price<\/span><\/li><\/ul><h2><span style=\"color: #000000;\">7# Development of Reservation System<\/span><\/h2><p><span style=\"color: #000000;\">The next step in tour formulation process is reservation system. The agency management in order to put a package into operation must develop and implement a scientific reservation system. The system depends on whether the reservation is to be handled manually or with a computer working on the distribution method.<\/span><\/p><p><span style=\"color: #000000;\">Whatever method the agency may adopt, the agency management should always keep in mind the sole objective of the reservation system.<\/span><\/p><h2><span style=\"color: #000000;\">8# Marketing of Tour Package<\/span><\/h2><p><span style=\"color: #000000;\">Once a tour package is ready, travel agency management has to make a careful decision regarding promotion and marketing of the particular package tour. The basic objective of management is to make a tour package widely known to make it more and more attractive.<\/span><\/p><p><span style=\"color: #000000;\">To achieve these objectives, the management must consider the budget available, promotion mix, potential market, easiest and most effective media, campaigning through the international, regional or the public\/private sector etc.<\/span><\/p><p><span style=\"color: #000000;\">The promotion of a package tour means increasing its sales potential and creating an awareness of the existing and potential markets. The following methods are commonly used to promote package tours:<\/span><\/p><ul><li><span style=\"color: #000000;\">Middlemen \u2013 Retail Travel Agents, GSA, consolidators<\/span><\/li><li><span style=\"color: #000000;\">Familiarization tours<\/span><\/li><li><span style=\"color: #000000;\">Building Brand Loyalty<\/span><\/li><li><span style=\"color: #000000;\">Encouraging Potential Buyers<\/span><\/li><li><span style=\"color: #000000;\">Competitive Market<\/span><\/li><li><span style=\"color: #000000;\">Courier<\/span><\/li><\/ul><h2><span style=\"color: #000000;\">9# Tour Handling\/Actual Tour Operation<\/span><\/h2><p><span style=\"color: #000000;\">After the successful marketing and achieving target sales, the next and final step in the process of tour designing is tour handling. It means an actual operation of tours, which generally includes administrative work and passenger handling like maintaining reservations, handling deposits, sending advice to ground operators, arranging travel representation, analyzing the feedback received from clients\/escorts\/ground operator and so on.<\/span><\/p><p><span style=\"color: #000000;\">All this is not an easy task. At every stage, one has to face different types of queries and problems due to lack of coordination and communication.<\/span><\/p><h1><span style=\"color: #000000;\">SIGNIFICANCES OF TOUR PACKAGE<\/span><\/h1><p><span style=\"color: #000000;\">Tour package is beneficial to travel companies, travelers, destinations and other organizations which are directly or indirectly involved in the\u00a0<a style=\"color: #000000;\" href=\"http:\/\/tourismnotes.com\/travel-tourism\/\">tourism<\/a>\u00a0business. The main benefits are:<\/span><\/p><ul><li><span style=\"color: #000000;\">Time Saver<\/span><\/li><li><span style=\"color: #000000;\">Increase the seasonality of a destination cost\/price<\/span><\/li><li><span style=\"color: #000000;\">Earn foreign currency<\/span><\/li><li><span style=\"color: #000000;\">Better quality of products professional services<\/span><\/li><li><span style=\"color: #000000;\">Wide-variety of the tour package<\/span><\/li><li><span style=\"color: #000000;\">Provide bulk business to organizers<\/span><\/li><\/ul><p>\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>TOUR PACKAGE DESIGN AND SELECTION PROCESS The quality of a package tour is entirely based on the above factors. Essentially, to design\/formulate a travel product, the tour manager has to take the biggest responsibility, intuitiveness, imagination, and innovation coupled with a lot of business activities which range from finding new exotic destinations and planning, organizing [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":4417,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"ocean_post_layout":"","ocean_both_sidebars_style":"","ocean_both_sidebars_content_width":0,"ocean_both_sidebars_sidebars_width":0,"ocean_sidebar":"0","ocean_second_sidebar":"0","ocean_disable_margins":"enable","ocean_add_body_class":"","ocean_shortcode_before_top_bar":"","ocean_shortcode_after_top_bar":"","ocean_shortcode_before_header":"","ocean_shortcode_after_header":"","ocean_has_shortcode":"","ocean_shortcode_after_title":"","ocean_shortcode_before_footer_widgets":"","ocean_shortcode_after_footer_widgets":"","ocean_shortcode_before_footer_bottom":"","ocean_shortcode_after_footer_bottom":"","ocean_display_top_bar":"default","ocean_display_header":"default","ocean_header_style":"","ocean_center_header_left_menu":"0","ocean_custom_header_template":"0","ocean_custom_logo":0,"ocean_custom_retina_logo":0,"ocean_custom_logo_max_width":0,"ocean_custom_logo_tablet_max_width":0,"ocean_custom_logo_mobile_max_width":0,"ocean_custom_logo_max_height":0,"ocean_custom_logo_tablet_max_height":0,"ocean_custom_logo_mobile_max_height":0,"ocean_header_custom_menu":"0","ocean_menu_typo_font_family":"0","ocean_menu_typo_font_subset":"","ocean_menu_typo_font_size":0,"ocean_menu_typo_font_size_tablet":0,"ocean_menu_typo_font_size_mobile":0,"ocean_menu_typo_font_size_unit":"px","ocean_menu_typo_font_weight":"","ocean_menu_typo_font_weight_tablet":"","ocean_menu_typo_font_weight_mobile":"","ocean_menu_typo_transform":"","ocean_menu_typo_transform_tablet":"","ocean_menu_typo_transform_mobile":"","ocean_menu_typo_line_height":0,"ocean_menu_typo_line_height_tablet":0,"ocean_menu_typo_line_height_mobile":0,"ocean_menu_typo_line_height_unit":"","ocean_menu_typo_spacing":0,"ocean_menu_typo_spacing_tablet":0,"ocean_menu_typo_spacing_mobile":0,"ocean_menu_typo_spacing_unit":"","ocean_menu_link_color":"","ocean_menu_link_color_hover":"","ocean_menu_link_color_active":"","ocean_menu_link_background":"","ocean_menu_link_hover_background":"","ocean_menu_link_active_background":"","ocean_menu_social_links_bg":"","ocean_menu_social_hover_links_bg":"","ocean_menu_social_links_color":"","ocean_menu_social_hover_links_color":"","ocean_disable_title":"default","ocean_disable_heading":"default","ocean_post_title":"","ocean_post_subheading":"","ocean_post_title_style":"","ocean_post_title_background_color":"","ocean_post_title_background":0,"ocean_post_title_bg_image_position":"","ocean_post_title_bg_image_attachment":"","ocean_post_title_bg_image_repeat":"","ocean_post_title_bg_image_size":"","ocean_post_title_height":0,"ocean_post_title_bg_overlay":0.5,"ocean_post_title_bg_overlay_color":"","ocean_disable_breadcrumbs":"default","ocean_breadcrumbs_color":"","ocean_breadcrumbs_separator_color":"","ocean_breadcrumbs_links_color":"","ocean_breadcrumbs_links_hover_color":"","ocean_display_footer_widgets":"default","ocean_display_footer_bottom":"default","ocean_custom_footer_template":"0","footnotes":""},"class_list":["post-5191","page","type-page","status-publish","hentry","entry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>TOUR PACKAGE FORMULATION ITS DESIGN - IHMNOTESSITE<\/title>\n<meta name=\"description\" content=\"TOUR PACKAGE FORMULATION, DESIGN : The quality of a package tour is entirely based on the above factors. 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