Tour Operator

Are travel agents who expand their

product range by setting up a tour
operations department.
TOUR OPERATIONS DEPARTMENTtasked to assemble the various travel
components into a tour package, and sell
the resulting package as one product.

Functions of a Tour
Operator
1. Conceptualizes plans and develop tour
packages.
2. Negotiates with supplier of travel
services.
3. Assembles and integrates the various
travel components into a single tour
package.
4. Delivers the tour package.

Sales and Revenue of a

Tour Operator
1. Variable mark-up based on the
contracted rate from the suppliers that
are negotiated based on the TOs
production record, the market potential
or influence.
2. By seeking and negotiating favorable
terms, conditions and concessions.

3. Through the sale of optional tours,

excursions and extensions.
4. For tour group movements,
souvenir shops grant the tour
operation commission on sales
generated.

TOUR OPERATORS
AND TOUR
PACKAGES

Characteristics of a
Tour Operator
1. WHOLESALER. Their clientele are primarily the retail
MTC/Travel agencies, thus dealings with the enduser is indirect.
2. Act as an intermediary to and as an integrator of travel
suppliers.
3. Derives income from variable but limited profit
margins and capitalizes on favorable terms,
conditions and concessions.
4. Generates additional revenues by selling optional
tours, excursions and extensions.

Classification of
tour operators

1. Local Tour Operator

(LTO)
services Filipino and/or foreign traffic
to national destination by way of regular
sightseeing tours or tour packages,
taking into consideration the popularity
of the destination site or sight in the
locality.

2. Domestic Tour
Operator
- services Filipino traffic to any
destination in the Philippines, on an ad
hoc basis, as and when contracted, by
providing itineraries and programs tailor
made to the needs of the client.

3. Inbound Tour Operator

-services foreign traffic to any Philippine
destination, on an ad hoc and regular
package basis. Its source of traffic is
mainly foreign tour operators and may
include both group movements and
individual travellers.

4. Outbound Tour
Operator
Designs and
for residents
foreign or
destination.

assembles tour packages

of the Philippines, either
local, to any foreign

Basis of Classification
1.
2.
3.
4.

Area of Operations
Nationality of traveler
Market or source of Traffic
Types of Tour Package Offered

Area of Operation
This refers to the geographical area
visited in the course of delivering the tour
product.
It is the physical area.

Nationality of Travelers
Travelers may either be Filipino or
foreigners.
Filipino (resident or non-resident)
Foreigners- citizens residing in the
Philippines as expatriates or just visiting.

Market or Source of
Traffic
Refer to the place of residence of those
participating in the or availing of the tour
package.
It does not mean the nationality of the
tourist.

Classification of Tour
Package
Regular- are put together based on the
perceived need or interest of the target market.
-These are pre packaged and feature well
known attractions or activities that have a high
demand.
Ad hoc- tailor made to the requirements and
specifications of a particular travel or group of
travelers.

TOUR PACKAGES
The product of the tour operators
It is a combination of two or more travel
components.

Philippine Airport Codes

Bacolod- BAC
Baguio- BAG
Basco- BSO
Busuanga- USU
Butuan- BXU
Cagayana de Oro- CGY
Calbayog- CYP

Catarman- CRM
Caticlan- MPH
Cauayan- CYZ
Cebu- CEB
Cotabato- CBO
Daet- DTE
Davao- DVO
Mamburao- MBO
Manila MNL
Marinduque- MRQ
Naga- WNP

Ozamis- OZC
Pagadian- PAG
Puerto Princesa- PPS
Roxas- RXS
Sandoval- SDT
San Jose- SJI
Subic- SFS
Surigao- SUG
Tablas- TBH

Dipolog- DPL

Dumaguete- DGT

General Santos- GES

Iloilo- ILO

Jolo- JOL

Kalibo- KLO

Legazpi- LGP
Tacloban- TAC
Tagbilaran- TAG

Tandag- TDG
Tawi Tawi- TWT
Tuguegarao- TUG
Virac- VRC
Zamboanga- ZAM
Laoag- LAO

Basic components
of tour packages
Example: ZAM-MNL-ZAM
(Cutting Right to the Good Stuff)

Transportation
(by air, sea, or land)
to and from a point of origin to a destination or destinations and
back to the point of origin.
5J 852: 0745H-0925H Zam-Mnl August 14, 2014
5J 857:1105H-1245H Mnl-Zam August 21, 2014
St. Francis Xavier August 11, 2014 0800H
(only every Monday)
Arrival: August 14, 2014 0000H
St. Francis Xavier August 16, 2014 2200H
(only every Saturday)
Arrival: August 18, 2014, 0500H

Transfers
transportation to and from a destination s gateway (airport,
pier, or bus station) to the place of lodging and vice versa.
Example:
Airport Coupon Taxi- Fixed Rate (Yellow Taxi)
Ordinary Taxi- outside airport premises
Shuttle Bus- going to Resorts World Manila
Jeepney, LRT, MRT, Bus

Sightseeing Tours
Combination of transportation within the
destination to sights and sites of interest,
tour guides services, entrance fees
entertainment
or
activities
and
sometimes, snack and meals.

Example:
Rizal Park
Intramuros (San Agustin Church, Manila
Cathedral, Fort Santiago, Lights and Sound
Museum,etc.)
Manila Ocean Park(450.00)
Star City- 500.00 (Ride all you can)
SM Manila, Divisoria (shopping/pasalubong)
Manila Zoo
Sun Cruises River Boat Dinner- 450.00/pax

Accommodation
Lodging and meals in the lodging
establishment .

Example:
Bayview Park Hotel
Pan Pacific Manila
Manila Hotel
Hotel Sofitel

Tour Escort/ Tour Guide

Refers to the services of an individual
who travels with the clients from the point
of origin and back, and acts as the
manager of the tour group. This person is
also known as the tour leader.

Different labels of tour

package:
Ground arrangement Packages- if only tours
and transfers are included
Land Arrangement Packages- if tours,
transfers, and hotel accommodation with some
meals are included.
Inclusive Tour Package- if tours, transfers,
hotel, transportation to and from destination are
included
Inclusive escorted tour package- if all
components are included plus tour escort.

Remember:
Be very accurate with the details of transportation (Do not
write down something that is make believe. Everything can be
found in the internet.)
Always remember to use military time (0000H-2359H)
Stick to the place. (If it is Manila, be sure all attractions can be
found in Manila, and not in Makati, Pasay, etc. Manila is different
from Metro Manila)
Know your target market. (preferences, religion, etc.)
NEVER FORGET TO INCLUDE THE INCLUSIONS.

Tour Package Variables

Duration- is the number of days and nights
included in the package.
Destination- a package may be for a single
destination or for multiple destinations.
Category of Accommodations- it may vary from
De Luxe, First Class, Standard, Economy, and
Budget.

 Meal Plan- number of meals per day

included in the package, whether served in
the place of lodging or in a restaurant.
Full-Board/Full Pension/American Plan if
all meals are included.
Half Board/Demi Pension/Modified
American - if only breakfast and lunch or
dinner are served.

 Bed and Breakfast Basis- if only breakfast

is included.
If breakfast is Continental, it is Continental
Plan.

If no meals are included it is called a

European Plan Tour Package.

 Mode and class of Transportation- refers to air,

land, or sea travel and type of equipment.
Class refers to the grade of service, facility and
amenities offered to the passengers.
In air travel: FIRST, BUSINESS, ECONOMY
In sea travel: SUITE, STATEROOM, CABIN,
BUSINESS CLASS, TOURIST, ECONOMY
In land travel: AIRCONDITIONED, ORDINARY