POTENTIAL PARTNERS IN PACKAGING TOUR PRODUCTS
- Restaurants/Food & Beverage Services
- Transportation Services
- Adventure Tourism & Recreation
- Special Events Festivals/Conferences
DISTRIBUTION OF TOUR PACKAGES
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- Tourist operators
- Local Wholesalers
- Target Market Wholesalers
- Retail Travel Agencies
TRAVEL INDUSTRY TERMS OF REFERENCE
The benefits of tourism development are substantial with the opportunities to create new and lasting employment, supported by increased revenue generation, being the principal rewards.
Tourism does not happen by accident and requires a number of elements to be brought together to formulate a coordinated and planned approach.
- Public Bodies
- Local Authorities
- Government Agencies
- Travel Trade
- Private Sector
The private sector providing the leading and critical component. As a global industry, the need for a common language is required.
The individual who runs his or her operation such as a river cruise or town tour. Assumes full responsibility for the day to day operation of the attraction
The travel industry principal who co-ordinates and contracts for the variety of services involved in the tour package, In general, these organizations are located in the region within which the programs operate and assume the role of BROKER between the product supplier (Tour Operator) and the external industry sales outlets.
The tour wholesaler plans, packages and promotes the sale of the product in its region of operation. Traditionally, the wholesaler markets its offerings through retail travel agents by means of a brochure and pays a commission to the selling agency
A travel agency sells a multitude of travel services to its clientele. It acts as a middle man between the supplier and the individual traveler. A travel agent’s services are free to the user. They earn commissions from the suppliers. It is extremely important that product suppliers concentrate their marketing efforts through co-operative programs involving receptive operators and tour wholesalers.
WHAT SHOULD BE INCLUDED IN A PACKAGE?
Packages may include a wide variety of components, and vary according to a key element or theme. Components may include:
- Transportation to or within the destination area (flights, vehicle or bicycle rental; van, boat or bus transport).
- Accommodations en route or at the destination (hotel, motel, bed and breakfast, cottage, campground).
- Meals at or en route to the destination (bed and breakfast plan, all meals included, meal vouchers at a variety of restaurants).
- Activities or entertainment, which may be the main reason for the package or be secondary to the tour (adventure, recreational or educational activities; workshops or conventions; visits to museums or galleries; evening slide presentations; sightseeing).
- Mementoes or souvenirs (T-shirts, photos of the client participating in an activity, gifts of local arts or crafts).
- Related services (interpreters, translators, guides, instructors, equipment rental or sale, equipment service, welcome reception, baggage handling).
- Extra and/or creative elements (photo service and film delivery, self-help coffee, discount coupons from local gift stores).
WAYS TO MAKE A PACKAGE SUCCESSFUL
As the developer of a package, you should:
- plan far enough ahead to ensure that no important aspects will be overlooked
- build the package around a core activity or attraction that is appealing to the target market
- price the package competitively
- package compatible activities and services together, based on the market group you expect to attract
- ensure that quality can be maintained
- pay attention to details and impress your customers with your professionalism
- communicate clearly with your customers to avoid surprises when they arrive
- earn an acceptable profit!
There are Six Steps used in developing a package.
First, you need to have an idea in mind of what you think your package might look like.
Then you can explore its feasibility by following the six steps.
STEP 1: DETERMINING YOUR GOALS AND OBJECTIVES
Goals and objectives can vary from package to package. Clearly articulate the goals for your proposed package. These may be:
- to bring new visitors to your region
- to develop new markets and diversify your products
- to increase income during shoulder seasons
- to partner with an upcoming event
- to diversify economic development in your community
Exercise Write a list of your goals and objectives for creating your proposed package.
STEP 2: IDENTIFYING STRENGTHS AND OPPORTUNITIES
You may need to carry out an inventory of the existing tourism services, attractions and strengths in your region as a way to identify new opportunities. In addition, you may need to realistically assess your personal and business strengths and abilities in order to help clarify how you fit into the package. An inventory of the existing services and attractions in your region may include an analysis of:
- your product and services
- transportation availability
- physical attractions
- natural history and wildlife
- cultural and heritage attractions
- special events and their dates
- guides, naturalists and interpreters
Create an inventory of the resources within your community that would be suitable for inclusion in a package. The following headings are general areas for which your community might have resources that you can access.
- Resource Inventory
- Natural resources
- Cultural resources
- Recreational resources
- Special events
- Historical resources
- Staffing resources
- Accommodation and restaurants
- Transportation services
- Public services
- Marketing services
STEP 3: IDENTIFYING TARGET MARKETS
Identify as specifically as possible your expected markets for the package. Be sure to identify their characteristics, origins and motivations. There may be more than one market for a package; each should be clearly identified.
Identify market research information you need in order to confirm the proposed markets, e.g. research into what age group might be expected to participate in hiking trips in the Canadian Arctic.
Identify the research tools you will use to find out more about the target market, e.g. questionnaires, focus groups.
Make a list of the primary and secondary markets you think would be interested in purchasing your package. List their characteristics, origins and motivations.
Target Market 1
Target Market 2
Target Market 3
Characteristics of the market
Origin of the market
Motivation for the market to buy the package
What market research information do I need?
What research tools should I use?
STEP 4: DEVELOPING THE PACKAGE
Determine the potential components to be included, considering your strengths and opportunities and your target market. Then develop the itinerary. Will you include any or all of the following?
- transportation (and transfers)
- accommodations (e.g. hotels, campsites, lodges, bed and breakfasts)
- relevant services (e.g. meet and greet, translators, guides, outfitters, naturalists, rentals, instructors, hosts, interpretative guides)
- meals (e.g. snacks, main meals, beverages)
- attractions, entertainment, activities (e.g. museums, parks, community events, galleries, sporting events, hiking)
- extra items (e.g. mementoes, coupons, welcome breakfasts, greeting from the mayor)
- fees, admissions and service charges
Using the following blank
Planning Sheet, create a single day or multi day package itinerary with each activity in a sequence as it will occur during the package.
Complete one planning sheet for each day of the package, remembering that the first and last days may only require services for part of the day.
Leave the supplier/partner and cost columns empty for now. An example follows for your reference.
PACKAGE ITINERARY PLANNING SHEET
Sample Lake Louise to Jasper Tour Day:
_ Group size of 20
Cost per person
Breakfast 7:00 am
Wintergreen Restaurant $8.50
Bus departure 8:30 am
Whitesaddle vanlines $35.00
Arrive and tour the Columbia ice fields information center 9:30 am
Staff at interpretative center $0.00
Bus departs 10:30 am
Whitesaddle vanlines $0.00
Arrive at Sunwapta falls/tour area 11:00 am
Staff at interpretative center $0.00
Lunch 12:00 pm
Falls restaurant $12.00
Bus departs 1:00 pm
Whitesaddle vanlines $0.00
Join voyageur canoe trip 2:00 pm
Athabasca River Heritage Voyageurs $20.00
Meet bus at canoe take out 4:00 pm
WhiteSaddle Vanlines $0.00
Arrive in Jasper 4:30 pm
Elk Hotel $45.00 Dinner 6:00 pm
Albatross Inn $14.00
Total cost per person $134.50
PACKAGE ITINERARY PLANNING SHEET
_ Number in Group:
_ Itinerary Time
Cost per person
Total cost per person $
You may photocopy this page for your own use.
STEP 5: OBTAINING PARTNERS SERVICES AND SUPPLIERS
Traditional competitive business means being self-sufficient, trying to control all of the operational services, employees, infrastructure and marketing as a single company.
A new, emerging trend is to shift to partnerships by focusing on your basic products and services and then by collaborating with others to help reduce your costs while making your business more appealing to target markets. This allows you to share expertise and offer a better experience to clients. It also allows you to concentrate on what you do best. Obtaining suppliers, services and partners occurs in the areas of, for example:
- entertainment, e.g. music, storytelling, cultural performers, artisans
- travel transportation/charters
- meal suppliers, e.g. restaurants, caterers, community organizations
- rental services, e.g. skis, bicycles
- local businesses, e.g. retail
- guides, e.g. tour guides, scientists, aboriginal guides, non-government staff, etc.
Using the Package Itinerary Planning Sheet in the previous exercise, add the list of partners you would like to have participate in your package.
Determine the cost per person for each service listed.
Total the costs at the bottom of the planning sheet.
You will use this number to calculate the product cost in