Chapter 27 TRAVEL MANAGEMENT COMPLANIES AND TOUR OPERATORS Travel Management Companies more contemporary and accurate term for the new travel agency because it reflects less of a ticketing role and more consulting and management functions that successful agencies now provide Travel agencies are moving away from airline tickets to all inclusive vacations multistop tours and group packages Provide information to plan an optimal trip arrange individualized coordinated itineraries and secure tickets for transportation lodging receptive services resorts and cruise lines and recreation Represent 70 of the U S travel market sales Travel Agents act to match the travel desires of leisure and business travelers with the most appropriate suppliers of tourist services Electronic Travel Agencies Travelocity communicate via email and web they do not have physical locations but are open 7 days a week 24 hours a day Projected to reach 40 of U S travel market by 2007 Tour Operators organize complete travel programs for groups or individuals to every continent by all kinds of transportation modes They plan arrange and market pre established packages at a set price that include everything Travel Management Company Operations Thomas Cook introduced the first hotel coupon and started the travel agency business 85 small independently owned agencies 57 single location businesses 73 affiliated or buy the services of an association The average TMC receives 68 of revenue from leisure sales 25 business 7 combined business and leisure Types of Travel Management Companies Corporate Agencies Serve business clients with little or no walk in clientele through email or on the phone Rely heavily on revenue from airline tickets hotels rooms and car rentals Leisure Agencies Clients usually going on vacation come to look at brochures and options Revenue comes from cruise sales resort packages airline tickets rental cars tours and hotel room sales Wholesalers Sell primarily to travel agents not to public Promote types of services but do not operate facilities Blocking rooms Specialized Leisure Agents 1 Specialize in one category of leisure experts on the product Incentive Travel Houses Develop customized programs for corporations who offer incentives for high employee productivity by providing deluxe travel rewards Earn profit from supplier commissions and management fees Consolidators Purchase large blocks of airline seats or cruise berths at substantial discount and resell them to travel agents or the general public for lower then face Known as Bucket Shops Electronic Travel Agencies Sell travel products entirely on web independently owned or owned by airlines How Travel Management Companies Get Paid Only get paid when there is a sale Payment in the form of commission Percentage of the sale Airlines Don t use the 10 commission anymore and use a No Commission Policy Hourly Fees based on the amount of time spent together deciding on packages Discount travel to all travel agents this makes up for the low wages a travel agent receives Automation and Certification Global Destination Systems GDS such as Apollo Sabre World Span and Amadeus list over 15 million fares full scale travel sites Airline Reporting Corporations ARC facilitates funds transfers and ensures that travel agencies have experienced management International Airlines Travel Agent Network IATAN license agreements limit companies who sell travel to legitimate businesses and help protect the consumer of fraud Certified Travel Counselor CTC persons who pass rigorous examinations and have five years full time experience in a travel agency Information Revolution and Travel Management Companies The Internet has made extreme advancements to travel arrangements Lowers travel sales distribution The middleman is disappearing Tour Operators Most basic function of a tour operator are to bundle together a package of travel services offer it at a fixed a price and provide some or all in a tour itinerary Must know what people want strict budget good marketing skills and well constructed risk management program Group Tours 2 Clients travel with a number of individuals sharing similar interests and have the potential for substantial savings Professional guide who remains with the group for the entire package the guide takes care of problems during the tour and has knowledge about the area Escorted Tours Inclusive tours Provides everything that a traveler will need for a set price except shopping gambling and personal needs Foreign Independent Tour FIT Is a travel package that normally includes lodging and a rental car or train pass but they are not just for foreign countries Fly Drive Package Common tour in the United States and includes flights motels and a rental car large discounts but free to travel where ever they want Types of Tour Operators Wholesale Tour Company Arrange and promote tour packages but sell them primarily to travel agents or tour operators and not to public Receptive Operator Ground Operator may meet and greet groups at airports make arraignments for lodging and shuttle them to the lodging at one particular destination Specialty Travel Tour Operators Organizations who possess highly specialized equipment and guides for each unique tour such as diving rafting biking and photography programs Clients are often younger 40 years old average Motorcoach Tour Operators Own and operate deluxe motor coaches holding 52 passengers long distance tours with or without vocals Sightseeing gambling sleeping Types of Jobs with Tour Operators Tour Escort Guide Provides exciting opportunities to enter the travel profession and for a career traveling the globe The Logistics of equipment and staff scheduling coordinates with other suppliers Operations Manager Tour Planners Designs new tours contracts with suppliers testing the itinerary and costing out the program Sales and Marketing Manager Works with key trade industry and client accounts and develops promotions directed at consumers 3 Chapter 28 MEETINGS AND EVENTS MANAGEMENT Event a destination in search of an audience Entertainment oriented Meeting is an audience in search of a destination Meetings and Conventions bring people together for a common purpose Meeting and Event Planners work to ensure that this purpose is achieved Special event Special occasion Convention are special types of meetings help in specific locations are often comprised of meetings and presentations Conferences may last one day or many days
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