TOUR PACKAGING & SALES STRATEGY

(DMX)

JOESEF KARIM, arpa

DESTINATION MARKETING EXTRA (DMX)

Copy Right 2012. All Rights Reserved.

TOUR PACKAGING & SALES STRATEGY

1 All Right Reserved to Joesef Karim DESTINATION MARKETING EXTRA LTD. a.k.a. DMX

Office: 09-8767512, 08037071130, [email protected]

Table of Contents Destination Marketing Extra (DMX) Tour Operation Training Manual

Module One: TOUR OPERATION & COST ANALYSES () Objective: By the end of this module, you would understand different tour operating rules and ethics in handling travel management for groups, families and individuals. The module looks at Fully Inclusive Tour (FIT), Inclusive Hybrid Tour (IHB) and Tailor-Made Tours, Domestic & International tours, Summarized and Full itineraries. The fact is, different sales scenario may determine which operating rule to adopt. The tourist would be better served if you, the tour operator, understand the technicality and requirements in his demand. Module Focus:

1. Definition of Terms 2. Components of Tourism 3. FIT Tours 4. IHT Tours 5. Tailor-Made Tours 6. Domestic Tours 7. International Tours 8. Summarized Itinerary 9. Full Itinerary

Module Two: MARKETING & SALES STRATEGIES (Page 14) Objective: A tour package is only worth the effort if it’s sold for profit. This module examines tested tour package marketing and sales strategies that teach how to professionally present your tours to clients. The methods and strategies taught herein include direct marketing, office presentation, online sales and e-marketing tools. Essentially, you learn how to combine with your mass media promotions and marketing communication efforts. Module Focus:

1. Tourism Service Integrity 2. Competitive Price Structure 3. Ground Handling Expertise 4. Internet Tour Operation Practice

Module Three: Tour Guide Lessons (Field Trip) Objective: This module will train tour operators on handling tourists in groups as they go round visiting different sites and attractions. The module is a field trip, hence students will use an air conditioned coaster bus to designated Abuja tourist attractions in a half day exercise. Module Focus: Tourist Meet & Greet Communication skills Describing Attractions



Definition of Terms Before we start, here are common words and phrases, otherwise called jargons or registers, which professionals use in every day travel and tourism transactions globally. The list here is not exhaustive; rather it is an attempt to give you understanding of the most common industry jargons in use today. As a tour operator, it is important for you to have mastery of these jargons, especially when transacting with foreign clientele and partner tour operators. Using these jargons sets you apart from other mediocre tour operators, and grows your business self-confidence. And as you do so, look out for other registers you were not familiar with and add them.

Phrase Description Remarks

1 Tourist Tourist A person traveling for leisure, business, religion or other purposes

2 Destination Destination A town or country, away from home, where tourists arrive for various tourism purposes, over a given time before they return back home

3 Tour Operator TOP A travel organizer who combines travel components for tourists at a fee

4 Per person PP Cost of a travel service per person, like hotel and car rental, while sharing with other accompanying travelers.

5 Single Supplement

SS Extra cost an individual pays to use a facility to him alone, like hotel. In this case, the person pays SS rate in addition to paying the PP rate above.

6 Bed&Breakfast BB Bed and breakfast accommodation, that is, no lunch or dinner inclusive

7 Safari Safari Wildlife game viewing in African destinations, like East & South Africa

8 Resort Resort A luxury leisure hotel, recreation or health facility

9 Attraction Attraction Any site or event that attracts tourists to pay and have viewing access

10 Transfer Transfer Transport from airport to hotels or homes using cars, buses, and others

11 Full Board FB Hotel accommodation paid including breakfast, lunch and dinner

12 Half Board HB Hotel accommodation paid with only two meals, like lunch and dinner

13 Tour Package Tours Wholesome travel plan including visits to several tourist sites, including transportation and accommodation, at a cost per person or group.

14 Itinerary Itinerary A detailed description of the activities involved in a tour package or plan

15 Mark up M. Up Profit margin a tour operator adds in costing a tour package before sales

16 Service Charge S. Charge Cost of human services offered to tourists received by service providers

17 Souvenir Souvenir A gift item sold at tourist destinations that serves as a travel memorabilia

18 Ground handler GH Tour operator at a destination acting on behalf of a foreign tour operator

19 Park Park A natural conservatory for plants or wildlife, like Yankari Game Reserve

20 Cruise Tour CT Activity of luxury boat, ferry and ship sailing at sea with services onboard

21 Theme Park TP An entertainment ground for children and young adults, like Disneyland

MODULE ONE: TOUR ITINERARY & COST ANALYSES

By the end of this chapter, you would have better mastery and understanding of different tour operating rules and ethics in handling travel management for groups, families and individuals. This chapter looks at Fully Inclusive Tour (FIT), Inclusive Hybrid Tour (IHB) and Tailor-Made Tours, Domestic & International tours, Summarized and Full itineraries. The fact is, different sales scenario may determine which tour operating rule to adopt. The tourist would be better served, if the tour operator understands the technicality and requirements in the tourist’s demand.



FULLY INCLUSIVE TOUR (FIT) A fully Inclusive Tour (FIT) is a tour package or travel plan to a destination with predetermined services and a total cost. The package is usually already planned, and ready to go with every travel service component engaged, and literally waiting to be delivered. And there is little or no privilege for the tourist to rejig the plan, let alone personalize the tour package to suit a different travel partner. Rather, the inclusive travel service ingredients are determined by tourist source markets’ interests, emerging travel trends and your tour operation business values. An FIT package is a ready-made travel product with fixed costs, pre-determined dates, target tourist numbers, and an itinerary with stipulated conditions. The idea is: a tourist pays for a tour package, is given some receipts, tickets or vouchers for travel to established tourist destinations. This comes without the benefit of the tourist making any inputs or alteration in the itinerary beforehand. Put simply, tourists buy off-the-shelf - just like grocery at your neighborhood shop! Buying an FIT package is akin to buying a game or movie ticket. The show or movie title is broadly hyped, star actors deified in different promotions, with identified event venues, including show-times and your designated seat numbers, take it or leave it, literally. Let’s take a look at common FIT tour packages in Nigeria.

Advert Caption: “Weekend at Obudu Ranch for Couples” Return Airport transfers to/from Obudu Mountain Ranch Resort Two (2) nights - Double luxury room Full meals (Breakfast, Lunch & Dinner) Guided tour to sites: Scenic views, Kwa Falls, Dairy Farm, Cable Car Ride, and splash in

the Water Park 50% discount on camera usage

Cost: One hundred and fifty thousand Naira (N150, 000 .00) per couple. Terms & Conditions Apply.

Example 2: Abuja City Tour Package

Advert Caption: “Abuja City Tours” Air Conditioned vehicles Private tour guides Lunch (Free) Trips to Millennium Park, Three Arms Zone, Zuma Rock, Aso Rock and a Gbagi Village

Cost: One hundred thousand naira (N100, 000.00) per person. Terms and Conditions Apply.

A Fully Inclusive Tour is stereotyped to meet target market idiosyncrasies and specific tourist interests of identified tourist source markets, and their segments. The ‘Example 1’ above, was packaged for couples seeking private weekend to themselves; and the ‘Example 2’ is meant for business travelers to Abuja who already had their private arrangement for hotel, food and airport transfers, but need to familiarize themselves with the sights and sounds of Abuja. The uniqueness of an FIT package is its predictability of tourist interests, destination services and attractions therein. With an FIT, the tourist is able to significantly control his spending, irrespective of impulse purchases. And the tourist does not expect any hidden charge. Rather, these openness spin-offs in positive customer relationship between the tourist and you, his tour operator.



FIT packages are best suited for group tours, seasonal travels, corporate travels, social tourism and similar mass tourism program. The principle of an FIT is to package value added tours that you can deliver. FITs should be based on your tour operating experience, company systems and some strategic advantages, like partnership with versatile ground handlers at different destinations. Essentially, FITs appeal to families, social groups and children excursion groups. The plan focuses on leisure and fun, and the optimum functions of destination tourist services. INCLUSIVE HYBRID TOURS (IHT) Inclusive Hybrid Tours (IHT) is a variant of the FIT package. Inclusive Hybrid Tours also offer the predictability and service integrity expected at destinations. However, with Inclusive Hybrid Tours, the tourist is privileged to alter the tour elements of the itinerary to suit his interest and unforeseen personal needs. The whole idea of Inclusive Hybrid Tours is to accommodate diverse personal interests amongst a group of travelers. Accordingly, a detailed tour description is stipulated, with optional and alternative services concurrently offered to participating tourists. Usually, services like hotels and attractions are provided with alternatives. This also appeals to different tourist budgets within a group. Invariably, the tour costs are fragmented, enabling tourists to choose and pay for different personal services within a group tour schedule. Let’s take a look at some examples here. Example 3: IHT Tour Package to Obudu Resort

Advert Caption: “Couple Getaway: A weekend at Obudu Mountain Ranch Resort” Return flights to/from Calabar airport Return Airport Transfers Hotel: a night at Protea Hotel Obudu Resort

Option 1: Share a double room on Bed & Breakfast Option 2: Share a Double Room on Full Board (all meals)

Tours: Obudu Village Market, Art & Crafts Market, Free Camera, with either: Option1: Tour of Dairy Farm & cable car ride Option2: Dairy Farm Tour, cable car ride, Kwa Falls, Shopping Tours

Cost of Services Option 1: N155, 000 per couple Terms and conditions Option 2: N200, 000 per couple Apply

Example 4: IHT Tour Package for Abuja

Advert Caption: “Half Day Abuja Tour” Tour Vehicles

Option 1: Air conditioned car Option 2: Non Air conditioned car

Visit to millennium Park, Three Arms Zone, Zuma rock, a Gbagi Village, with either: Option 1: Private guided tours Option 2: Scheduled tours

Meals: Lunch & Diner Guide Costs of Tours

Option 1: N17, 500 per person Terms & Conditions Apply Option 2: N15, 500 per person



The Examples 3 and 4 above teach that differentiations are made within a group for diverse tourist interests and unforeseen personal travel needs. More importantly, it’s good for individual travel budgeting and selective association amongst tourists in a group. So tourists pay and travel as a group, but occasionally break into smaller teams, to serve differences. Inclusive Hybrid Tour is a travel planning system that meets different tourist interests, budgets and personalities within a group, on a commonly planned trip. Price elasticity notwithstanding, some tourists may desire personal service, added privileges and a little spontaneity. As in Example 3 (under Tours), where the option 2 tourist desired to go shopping and Kwa Falls, in addition to the local arts & craft market. For your proactive tour operations company, you will do well to pay attention to tourist demand details. To start with, your tour packaging system needs to be flexible and all-encompassing. You will realize that, IHTs attract more travel groups from heterogeneous tourist source markets, on a promise of personal tourist experience within a group in the same season. It’s been argued that an FIT could leave room for tourists resorting to self-help, or pressure the tour operator to re-personalize the itinerary. I think it’s all for good. Anyway, my experience is that self-helping tourists eventually burn their fingers, with lack-luster services, and eventually return to the FIT planner. Alternatively, the tourist could book an Inclusive Hybrid tour, offering him more room for personal travel expression. TAILOR – MADE TOURS Tailor-Made Tours are tour packages prepared according to the express demands of a tourist. The identified tourist needs, destination services and travel interests are customized to meet the tourist push and pull, and related travel objectives. Unlike in FITs and IHTs, nothing is predetermined by you or other tour operators. In fact, Tailor-made tour packages are not organized until there is an effective demand and explicit instructions from a prospective tourist. The Tailor-Made tour is a product of robust discussions between you and the tourist over a period of time. The standard is, a Tailor-Made package require a prospective tourist to contact your tour operating company specifying travel dates, preferred attractions, likely destination services, costs and alternative plan costs. This type of tour packaging is mostly suitable for individuals, family leisure and adventure tourists. And the process requires the tourist to know before-hand what, where and how the tourist interests are. Otherwise, your tour operating company would advise, after analyzing the applicable tourist ‘push and pull’ factors. The true test of your tour operating expertise and resourcefulness is in tailor-making tours to first time tourists. Notwithstanding, tailor-made tours are easier sell, because you would only be arranging for the tour package on an express demand, thereby not incurring any marketing cost, which would have been the case with FITs and IHTs. Evidently, the tourist is ready to travel and is willing to pay for the self-motivated tour package.



For example, let’s enact a conversation between a traveler and tour operator. Example 5: Excerpts of a travel shop conversation

Tourist: Hello, I am based in Minna, Niger State. I want to go family shopping later in April. Do you have any idea on good shopping destinations in Nigeria?

Tour Operator: Yes, I do. Lagos or Onitsha will be ideal. However, if you need a little leisure with your shopping tour, then Lagos is advisable.

Tourist: Okay. Lagos sounds like it! But I prefer to stay in three star hotels. What part of Lagos city is likely? And what other values can Lagos offer?

Tour Operator: Victoria-Island, in Lagos, has quality hotels. The Island also has competitive shops with good bargains, cheaper services and a domestic airport for your family and luggage transfer to Minna airport.

Tourist: How much will a week trip to Lagos cost for a family of 4? That is, for me and my wife and two of our children.

Tour Operator: It will cost Eighty Thousand Naira (N80, 000) for your family of four. And the package would include a Lagos city tour, to acquaint you with Lagosian culture and other shopping centers:

Return airport transfers 6 nights at Lagos Airport Hotel (B&B) Lagos city tour (half day tour) 3 shopping tours to wholesale markets Private vehicles with a trailer or carriage

Tourist: Okay then. I will take the package. (End of Discussion)

However, when Taylor-making tours, you should limit your services to the discernable motives and expressed needs of the traveler. As in the earlier example 5 above, Lagos offers more than business tourism, but the tourist wants just that - to fulfill his family shopping needs. Hence, the half day of Lagos city tour is meant to enlighten the traveler about the culture and people he will meet while shopping. Thereby aid his business negotiation skills, or stimulate his interest in other business opportunities. Finally, Tailor-Made tours are usually private and cost-restricted to the tourist service demands.

DOMESTIC TOUR COST ANALYSIS Obviously, globally successful tour operating companies have perfected their business systems. They have learned to collate relevant tourism services, compute all costs and determine competitive selling price with workable mark-ups, and allied charges. They have also learned to spend on effective marketing campaigns and sales promotions to attract maximum numbers of participating tourists whether local or international. You must do the same to stand out amongst your competitors in the business, and also build a strong and profitable tourism brand - fit for global patronage.



You had better imagine than experience the challenges you would face, if you do not go out of your way to constantly improve your tour operations entrepreneurial and general tourists management skills. Such challenges on the job, though welcomed, ought to be proactively managed to instill in your staff the cognate knowledge, and to meet your business targets and grow profit bottom-lines. To achieve your business structural growth, you must lead your tour operating staff to, amongst other things, generate a database of destination services, their best prices and various discount systems. That is, a database of resorts, hotels, airlines, car rentals, cruise lines, restaurants, parks, events and general destination services. So that competitive tours are prepared on good information, to deliver the promised enjoyment to the tourists. And eventually pay the company operating expenses and generate good profits. Thankfully, the business also works on regular Commissions and Service Charges accruable to tour operating companies. But the Commissions and Service Charges are negotiable and sales oriented. So that, the more you sell, the higher the commission some service providers, like airlines, will offer you. The global standard is 10%. Example 6: Facts & Service rates about Bauchi Tourism

Offers variety of tourist appeals: Safari, Business, Leisure, Eco-tourism and more Return flights Lagos - Bauchi - Lagos : N20,000 2 Star Hotel in Bauchi: N3,500 per night (B&B) Return Airport transfer: N7,000 per car and driver Entry to tour sites: N500 per adult and N300 per child Meals: N1, 500 per meal (Lunch or dinner).

Example 6, are sample information you, as tour operator, should have in your business database. Such records also represent some basic tourism facts on Bauchi state. Albeit the facts may periodically change, so you need to put in place a regular updating system. Therefore, in packaging Bauchi destination tours, these or similar records become yardstick for your tour analyses and costing of packages, per tourist. Suffice to say, leading tour operators would generate such information, and more, on various destinations into the company database. The information could also be collated based on niche markets, seasonality of services and destinations the company specialized-in selling. To organize tour services profitably, information is key. Example 7: Two nights cost analysis for 2 tourists sharing to Bauchi

Note: We shall cost this tour plan based on the facts & Service rates of example 6 above. Domestic tour cost analysis:

Lagos - Bauchi Return flight: N20, 000 (per tourist) 2-Star Hotel for 2 nights (double room + breakfasts): N3, 500 (per night ) ÷ 2 people x 2nights =

N3, 500 (per tourist) Return Airport transfer: N7, 000 ÷ 2 people = N3, 500 (per tourist)* Entry to sites: N500 x 3 sites = N1, 500 (per tourist) Meals: N1, 500 x 2 meals = N3, 000 (per tourist)** Tour Operator Company Handling charge: N15,000 = N15,000 (per tourist)

Total cost = N46, 500 (per tourist)

Note: * The Airport transfer cost is divided because vehicles are priced as a whole and not per seat.



Note: ** Breakfast is free; hence only two meals are captured here, that is, lunch and dinner Note: Two tourists must be traveling together; otherwise the cost will change per tourist, plus or minus.

In example 7 above, the hotel and airport transfer are shared services, hence their rates are specially computed and analyzed. Usually, such rates are shared by the total number of persons using the facility together at a time. This rule should be stated, amongst other things, in your tourism company Service Terms and Conditions. Essentially, if the tourist was a lone traveler, the airport transfer rate would not be divided by two but maintained as N7000 for one person to pay the whole charge. And the same will be divided by four (highest number of a car passengers) if the tourists were four. Same goes for hotel room costing & sharing. Over the years, the industry practice has been for tour operators to present their tour service invoices, transaction records and other book keepings in the local currency where the services are delivered. So, tourist services in Nigeria are priced in Naira, just as tourist services in Ghana will be priced in Cedes. In an inbound tourism destination like Ghana, it might be expedient for domestic tours to be internationally cost in Euro or USD; especially when local the currency is unstable, or easily loses value against leading international currencies. In this case, you may also cost your tour packages in a popular foreign currency, and request payment in these currencies; with the option to pay in your local currency. INTERNATIONAL TOUR COST ANALYSIS Tour costing becomes international when the tour package is priced, analyzed and presented in multiple national currencies. This is sometimes done to accommodate your tourist source markets’ currencies, for ease of payments; or when there is a robust financial system at your tourist destinations. Undoubtedly, tourism is income elastic, so foreign visitors make decisions about paying for a trip from the economic point of view of their originating country. Accordingly, some international destinations have developed tourist economies where foreign currencies are freely exchanged and accepted for payments of local services and products. Inadvertently, the logic of international travel budgeting and costing in foreign currencies is advantageous to tourism destination marketers. Indeed, it is technically expedient and cost-management oriented. The fact is, most internationally marketed tours need to be additionally priced in, at least, one foreign currency. More so, international airlines, foreign hotel franchises, and other tourist services at popular destinations have two categories of rates, one in U.S. Dollar for foreigners and another, say in Naira, for local buyers. In analyzing international tourism developments, the UNWTO Annual Report 2010, posits that “international tourism recovered strongly and faster than expected. International tourist arrivals increased by almost 7% to a record 940 million, while earnings from international tourism grew slightly slower at 5% to reach US$ 919 billion (euro 693 billion), a result of increased price competition and tendencies to travel closer to home and for shorter periods”. Conversely, there is a downside to pricing a local tour package in foreign currency. Global economic interactivities oftentimes lead to uncertainties in global currency markets with subsequent fluctuation amongst dominant exchange rates. And this could easily result in unforeseen tour package price changes. Little wonder, foreign tourists and visitors pay with international currencies, particularly the US Dollar and Euro.



The same principle of destination information database system is even more expedient with international tour operation cost analyses. You will agree that it is easy to collate similar information about domestic tour analyses. International costing could be more challenging due to distance and dearth of destination information distribution system. But the same domestic information gathering rules would apply: which is, your sheer diligence of regular collation and constant updating. These are best done if you encouraged your destination partners to send you regular updates; while you dedicate a staff, or two, to your database updating. And your company must also keep abreast with latest changes in international currency fluctuations. Example 8: Facts & Service Rates on South Africa Tourism

Return flight: Lagos to Johannesburg to Lagos = N120,000 per passenger 3 Star Hotel in Randburg = $70 per night, on Bed & Breakfast basis Return Airport transfers = $140 per saloon car and driver Entry to tour site – 80 RAND* per person

Note: Exchange Rate Management:

$1 US = N180 (Buying) $1 = N178 (selling)

1 RAND = N40 buying (Buying) 1 RAND = N37 (selling)

$1 = RAND 7.5 (Buying) $1 = RAND 7.0 (Selling)

Note*: RAND stands for South Africa Rand Note**: These are going rates for foreign exchange in Nigeria parallel market. Rates are applicable till June 30th, 2013.

Now, let’s say a tour operator based in Lagos is packaging a South Africa holiday tour for a Nigerian family of three – a husband and wife with an infant. The ideal practice would be to price the tour in US Dollar, which is a common acceptable tender in Nigeria and South Africa financial system and trading economies. But to avoid last minute price changes due to fluctuations in exchange rates, it may be prudent to also price the tour package in USD only, since the Naira easily fluctuates in the currency market. Example 9: South Africa holiday cost analysis in US Dollars and Naira Note: we shall use the figures and rates of example 8 above

Return flight = N120,000 or $667 (Adult fare) per passenger Return flight = N12,000 or $67 (Infant fare) per passenger (10% of adult fare) 3 Star Hotel Room in Randburg = N12,600 or $70 per night (B&B)

N12, 600 x 2 nights = N25, 200 or $70 x 2 = $140 (2 nights) Return transfer on saloon car: (25,200 or $140 per vehicle)

N25,200 ÷ 3 = N8,400 or $140 ÷ 3 = $47 Entry to Tour sites: RSA 80 = $11, or N1,980 per site

3 Sites: RSA 80 x3 = RSA 240 or $11 x3 = $33, or N1,980 x 3 = N5,940 Note:

1) Randburg Hotel Policy allows infant stays free of charge)

2) Handling charges is N15,000 per tourist or $50 per tourist)

Finally, the tour will be presented in two national currencies, for purposes of effective cost management and efficient money transaction. And the clients should have options, based on their dispositions, with friendly terms and conditions from your company. Thus, you present the package tour to clients without a



cost breakdown, as in example 10 below. Apart from stating the package selling price, it is important that you do not give that detailed costing to clients, and third parties, only on request or when necessary. It’s like protecting your trade secrets. If you do, especially to Nigerian buyers, they will tear the costing apart, literally, by asking for discounts since they have seen your markups and related profit margins. Example 10: Sample International Tour costs

Advert Caption: “South Africa family holiday package” Services include

Return flights from Lagos to Johannesburg & Lagos

Two nights on B&B basis at a three (3) star hotel

Return Airport transfer in an A/C Saloon Car

Visit to 3 tour attractions in Johannesburg

Payment Options in Currencies:

Selling Prices: Not exceeding June 30, 2013 1) Option One: N174, 400 (Adult rate) 2) Option Two: $937 (Adult rate only) 3) Option Three: N41, 340 (infant rate only)

4) Option Four: $197 (Infant rate only)

SUMMARISED ITINERARY The example 10 above typifies how tour packages are succinctly presented to prospective tourists and the trade. However, to convey better service values contained in your tour packages and convince potential tourists to buy, you should use a tour Itinerary. A tour itinerary better presents your tour package with compelling narratives, showing relevant facts and details - throwing more light on the entire travel plan, from start to finish. Your itinerary should also be explicit about the tourist daily activities, nature of travel services, different cost implications, reservation rules, and general terms and conditions. In this regard, itineraries are of two kinds: Summarized Itinerary and Full Itinerary. Either of these is used depending on the stages of Tour Marketing and Sales exchanges. A Summarized Itinerary is an abridged presentation of the package tour activities and costs. It is usually less than a page, and presented in bullet-points and numbered per activity. In practice, you develop the summarized tour itinerary and send it to a sales lead, on request, to provide basic tourist information, service features and total costs of a travel plan. Example 11: A Summarized Itinerary



The itinerary, example 11 above, may also be sent as the Pro-forma Invoice. A summarized itinerary should be presented in your company letter-headed papers, with company logo and brand names. Doing so gives credibility to the tour package, and stimulates confidence in the traveler to buy or make more enquiries. Most tour packages are bought months before the actual travel dates, especially in planned vacations. However, Nigeria is an exception to the rule, where travelers may contact you and pay for the package a week to the travel date!

FULL ITINERARY In tourism jargon, a Full Itinerary is a composite list or detailed description of travel activities included in a tour package including, travel destinations, cost options, ground logistics, activity timing, travel dates and more. The printed version is more officious, and serves a better marketing and sales purpose – for tourist lead management. There are different manner of itinerary presentations for different sub-sectors of the travel and tourism industry, from flight itinerary to cruise tour itinerary. Some are very brief and straight to the points, like the flight itinerary, indicating check-in, departure and arrival times of a flight between to destinations. Yet others are elaborate and flowery with occasional picture and other visuals, as in a packaged tour itinerary. Packaged tour full itineraries are, especially in leisure tours, exciting narratives of the entire packaged tour activities, with vivid descriptions, imagery and compelling details. The objective is to make-believe, in other

Advert Caption: “A weekend at Obudu Mountain Ranch Resorts” Dates: Friday April 6th to Sunday April 8th, 2013

Cost: N75, 000 per tourist (Adults only)

Tour Description: Return fights: Calabar - Obudu - Calabar Two night accommodation in a double room Sites: Dairy farm, Mountain Ranch, Cable Car ride, Water Park, Full Board Meals Cross River Souvenirs

Note: End of Services Cost Includes:

1) All costs of transportation: International flight + Airport transfer (AC Vehicle) 2) Private tour guide 3) Bed, breakfast, lunch and dinner 4) Complimentary mineral water 5) Free souvenirs

Cost Excludes:

1) All costs of personal nature like, tips, gifts, alcohol and beverages, 2) Visa costs or procurement processes 3) Any other service not expressly mentioned is not inclusive in this tour package!

For reservations or enquires, call Joe on 08037071130 or email [email protected]

mailto:[email protected]



words, to help the tourist generate mental pictures and imagine views of the promised destination experience. Accordingly, full itineraries vividly explain general service terms and conditions necessary to make effective purchase and good tour experience. Example 12: A Full Itinerary

Package Caption: “A weekend at Obudu Mountain Ranch Resorts” Dates: Friday April 6th to Sunday April 8th, 2013 Cost: N75, 000 per tourist (Adults only)

Services and Tour:

Return fights: Calabar Obudu Calabar

Two night accommodation in a double suit

Full Board

Tour of Dairy farm, Ranch, Cable Car

Souvenirs

Obudu Mountain Ranch Tour Description

Thanks for using the travel and tour services of HolidayNigeria.com to Obudu Mountain Resort this weekend. Day One: Friday April 5th, 2013 At 16.30 hours, HolidayNigeria.com tour representatives will meet you at the waiting lounge of Calabar Airport and help you board the Aero 609 flight to Obudu’s Bebe Airstrip. The flight arrives Obudu, from Calabar, at 16.55. And Obudu Resort shuttle bus will be waiting to transport you the Resort for check in to your room. The driver to the summit is about seven minutes. Enjoy dinner (banquet) is at 19.30 hrs; afterwards you’re on your own for overnight rest. Day Two: Saturday April 6th, 2013 Breakfast from 0700hrs at the China restaurant. By 0900hrs hours, a Ranch Tour coach takes you to the majestic Dairy Farm and drive through, with stops, at pristine mountain scenic views, with forest green vegetation, Africa rainforest, views of Cameroun territory and true Africa cultural heritage attractions. Meanwhile you may have snap shots free of charge. These tours will last two hours. Then at 1200 hours Lunch will be serve at the Resort Crocodile Restaurant, afterwards you rest from the morning tours. The star attraction at the ranch is your cable car ride tour at 1600 hours. The Ranch tour guide will pick you at the restaurant, fifteen (15) minutes before, and conduct you on the cable car. This is the longest cable car ride in Africa today. Afterwards, you will be at leisure by yourself. Dinner will be served 1900 hours and a special cocktail party will hold, thirty minutes later, in the China restaurant. Day Three: Sunday, April 7th, 2013 Your last day on this tour of Obudu Mountain Ranch Resort. Breakfast is at 0800 hours. You either attend the Ranch Church starting at 0900hours, or be at your leisure till lunch time by 1300 hours. After lunch, at 1530 hours, the shuttle bus will pick you from the reception back to Bebe Airstrip to board the Aero 610 fight to Calabar. Arrive Calabar 1555 hours, and connect your destination flight or coach back home.

End of Services



Thank you for using the services of HolidayNigeria.com; we trust you enjoyed yourselves…Please tell someone! Cost Includes:

6) All costs of transportation: International flight + Airport transfer (AC Vehicle) 7) Private tour guide 8) Bed, breakfast, lunch and dinner 9) Complimentary mineral water

Cost Excludes:

4) All costs of personal nature like, tips, gifts, alcohol and beverages, 5) Visa costs or procurement processes (available at extra charge) 6) The package does not include cost of insurance

Note:

For reservations or enquires, call Joe on 08037071130 or email [email protected] All tour prices are quoted in US Dollars. We accept payment in a freely convertible currency and at the

exchange rate prevailing at the time of payment.

1. We also accept payment by VISA and MasterCard at a surcharge of 5% over the tour rate. 2. A deposit of 20% is required at the time of booking 3. The balance must be paid not less than 30 days prior to the commencement of the tour. 4. In cases where the bookings are made less than 30 days before the commencement of the tour, full

payment must be made.

CANCELLATION Cancellations must be received in writing. Refund for cancellation will depend on the duration of cancellation prior to tour departure. That is:

No of days Percentage of tour price

40-60 days full refund less $ 40 administration fee

14 - 35 days 25% of the tour price

2 - 14 days 40% of the tour price

Under 5 days and no show no refunds




MODULE TWO: TOUR SALES STRATEGY Herewith are some tested service and sales strategies to combine with your mass media promotions and marketing communication efforts. TOURISM SERVICE INTEGRITY The most dependable form of tourism service referral is the ‘word-of-mouth’. Word-of-mouth is when someone recommends a service or a service provider to other people. Conventionally, the person referring the service, by implication, stands as the implicit guarantor for the service provider. This is true to the principle that you only refer a service, or a service provider, if you are convinced of his service integrity. By referring the service, you have inadvertently vouched for their service integrity. Technically, tourism service integrity is the verification of a tourist or destination high standard, quality of service and inspiring value adding brand. The need for tourist services and destinations to satisfy tourist expectation is germane and central to profitable sustainability of your tour operation brand. Simply put, tourism service integrity is tourists getting unbeatable value for their money. And all components of the destination services must deliver the destination brand promise, which a tourist paid for, without hiccups, unnecessary delay, let alone outright service failures. Invariably, your tour operation service integrity must meet the promise of your brand, and that of your principal service providers, made during your company marketing campaigns. Essentially, the expectation of the tourist must be fulfilled, therefore you ought to be convincing that none of your service will fail at a later date, except for “force majeure’’, that is, act of God. Force Majeure is an event or circumstance of nature and acts beyond the control of the tourism service provider; things like earth quakes, terrorist attacks or similar cases. You see, tourism services are bandied promises of good and memorable experiences at destinations. And the tourist is paying hoping to receive and enjoy the services as it was promised. Besides, a service is an intangible product, and does not present itself to be analyzed or judged at face value, prior to payment. The tourist will pay, trusting your word that the airline, hotel and other component service providers will professionally render their services to the full satisfaction of the promises made during marketing. Note that, the beauty of an airplane on the runway is no guarantee of the hostess’s efficient and courteous service delivery. Fulfillment of the promise is only evident in actual service delivery. This is what determines good and memorable tourist experience or a mediocre service. As a tour operator, it is your onerous task to ensure that your tourists enjoy memorable service and get unique experiences to warrant a referral, even by word of mouth. Accordingly, your tour operation objective is to execute due diligence for all component services, contained in the tour package, to work out excellently. Then your tour operation company can be adjudged to have recommendable tourist service integrity. Accordingly, the attitude of every person involved in servicing the tourists must exude hospitality, hearty feelings, sweet companionship and user-friendly operations. No doubt, irrespective of personality and cultural differences, positive attitude is universal and compelling. This orientation to tour operation service delivery eliminates tourist culture-shock on arrival at destinations. Your attitude as a tour operator can advance the destination tourist service integrity. For instance, when a plane is showing up late, a courteous and apologetic explanation would assuage the tourists. Tourist service integrity therefore focuses not only on the operating equipment and systemic efficiencies. Rather,



it is strong on tourist personal comfort, compelling discourses and courteous service delivery, from start to finish. Beware, tourist service integrity starts the moment the tourist first calls you to enquire about your services. Tourists talk. And if they enjoyed the experience, they will adherently chatter about it, thereby promoting the tour operator service integrity. As a tour operator, you may not significantly control the airplane or cruise line, nonetheless, your expertise in engaging excellent tourist service providers is your magic wand. Invariably, the credit for the airline or hotel good service integrity goes to you also; same for the insult accruable for the failure of such service or inept service delivery. COMPETITIVE PRICE STRUCTURE Tourism is income elastic. So, the concept of Competitive Price Structure teaches that you craft the cost of your tourist services to suit different market segments. This means you have unique price structures for different seasons, target markets, travel budgets and tourist destinations. Indeed, Competitive Price Structure seeks to make your tour operation services competitive, and consistent with your business development model. This concept is contrary to a popular tour operation model that one size fits all! Most tour operators in Nigeria presuppose that any tour package would easily appeal to all tourists category, irrespective of their travel interest and budget. But research and experience have revealed that, as a proactive tour operator, you have to identify your niche market and tailor different services and costs to meet the need of your target market. The sage said, ‘one man food is another man poison’. Tourists have different travel and tourism motives and interests, as we earlier read in Chapter Two on tourist Push and Pull factors. Not every tourist is disposed to pay the same price for the same service at the same destination. Normally, tourist destination services are priced differently according to travelers taste and budgets. Hotels for instance, are rated in stars, from one to five stars, the higher the star-rating, the more luxurious and expensive the hotel. And airlines have passenger pricing structures in classes, including economy class, business class and first class seats on most flights. This puts-paid to the one size fits all model by Nigeria tour operators. Incontrovertibly, tourism services are price elastic. Tourist competitive price structuring determines the type, volume and limitation of identified tourist groups at tourism destinations. It certainly makes business sense for you to get maximum value and attract record number of patronage for your tour packages. And pricing is a powerful tool of competition amongst alternative tourist brands. Nonetheless, it does not hold true that the cheaper your tour package the more tourists you attract; in fact the reverse is the case for most leading tourism destinations. The premise of competitive price structuring is to analyze your target markets and deliberately price your service to meet their established buying patterns. Choose which market segments give you more profit and selectively price your services to woo them, low or high pricing does not matter, what matters are the values attributable to each price option. For your tour operating business to be grow, there are smart ways to achieve competitive price structuring, one of which is to apply the Tour Itinerary & Costing we studied earlier in Chapter Four, which



includes FITs, IHT and Tailor-made tours packaging. The tour Itinerary options allow you to foresee different tourist needs and consequently structure your tour package to meet their interests and travel budget. In this regard, you could have a tour package that offers optional low and high standard facilities, like three or four star hotels, and also allow the tour group members to determine their meal plan, whether full board or simply bed and breakfast. Hence, you have a group tour with different price structures for tourists. However, the tour package will generate more money if the scheduled tour price is open-ended with, at least, two different price options rather than a blanket price. This may lead to variation of services for individuals within the group. Otherwise, they will all pay for the same service when some in the group may not find it appealing. This method creates a private service within a group tour, which in turn attracts special service charges to the tour operator. You should strive to make every tourist in the group satisfied, because he pays for only the services he enjoyed. Another way to achieve competitive price structures is to focus on seasonality of tourist source markets. Tourist groups travel low season for different reasons. Some live in a different hemisphere, like in Southern Africa, yet others simply prefer low seasons and off-peak periods to embark on tours, like the Chinese, because they get high standard services at cheap rates. Budget travelers are a type of seasonal markets. For the record, budget travelers are tourists that use low-cost facilities. You will do well to concentrate on value added services for budget travelers, like giving them complimentary services and special discounted packages. GROUND HANDLING EXPERTISE The wisdom of Ground Handling Expertise demands that the components of tourism services offered at a destination should be efficiently managed to give tourists best value for their money. It connotes that a destination specialist, or a tour operator domiciled at the tourist destination, be engaged to personally receive the tourist on arrival, oversee tourist activities and personal needs till the tourist officially departs back to his country. Ground handling expertise holds that, a tourist needs a personal chaperone, apart from a tour guide, appointed by you at the tourist destination. Traditionally, as a tour operator, you present a wholesome travel service bouquet, encapsulated in a destination tour package. You are a travel and tourism management guru! That is why the tourist would buy your tour package. He couldn’t just buy a vacation package off the internet, without a tour operating company on standby to deliver the promised services at the destination. So, your tour operating function commences soon as the tourist arrives on ground the destination and your assigned representative, or yourself, receives him and starts executing the agreed tour itinerary to the letter. Accordingly, there are two categories of tour operators actively involved in every tour package. The Outbound and Inbound tour operator. Decidedly, they work as strategic partners to market and deliver the tour package. The Outbound Tour Operator markets and sells the tour package at the tourist source market, while the Inbound Tour Operator acts as the official ground handler that receives the tourists and facilitates delivery of the tour package at the destination.



In most cases, the Inbound tour operator acts as the representatives of the Outbound tour operator, who may have conceived of the tour package, and got the inbound tour operator to engage reliable destination service providers, like airport transfers, hotels and other components of the tour package. For instance, when a tour operator based in Lagos packages a group to Abuja, both in Nigeria, the Lagos tour operator acts as the outbound tour operator responsible for packaging, marketing and transporting the tourists to Abuja. Consequently, the Abuja based operator will receive the group, check them into their hotels, conducts them to and through all scheduled attractions, and finally supervise their transportation back to Lagos. Understandably, ground handling expertise includes conducting the tourist to, and through, airport transfers, hotels & resorts, attraction sites, and ensuring that the tourist is comfortable. It may also require facilitating tourist access to personal needs, like visits to banks or securing him a lawyer, when necessary. In essence, it’s the business of providing memorable destination experience. Without an active ground handler, the tourist will be left to jostle from one service provider to another, like airport to hotel, without assistance. Evidently, tour packages easily fail when there is no expert inbound tour operator at hand to receive the tourist and supervise his stay and activities scheduled on the package till his departure. Indeed, without a tour operator, the tourist is on his own! Inevitably, the ultimate success of the tour depends on the expertise and experience of the ground handler. Of necessity, an inbound tour operator and destination ground handler must speak the language of the tourist he is receiving, whether it is English, Portuguese or Japanese. The least you could do is hire staff that speak the language of your source markets. You must also have good local knowledge and mastery of individual attractions, transportation services, social networks, destination cultures, out-of-the-way attractions, local languages and custom. Ground handlers must be based at the destination always, hence they are abreast of latest developments, including change in whether, price increases, impending strike-actions, and the general security situations. Nobody knows a house better than the one that lives in it! As a marketing and sales strategy therefore, the tour package should provide special treats and perks, like free entry to special sites, or some group discounts, where only local based tour operators can negotiate. And take note, during the tour, a tourist may request personal assistance, which may be spontaneous, where only a local tour operator can assist. A Shylock outbound tour operator that attempts to join his group at the destination, ostensibly to cut out the service of the inbound ground handler, will most likely fail during tourist personal emergencies or unforeseen circumstances. If we agree that destination service delivery determines a good and memorable tour experience, then only a knowledgeable and courteous ground handler can facilitate the experience. In choosing the ground handler therefore, you or the outbound tour operator must do due diligence to secure the partnership of professional, courteous and locally influential tour operators. Choose an operator that can handle emergencies, while providing personal touch to the organized tour. Apart from coordinating their stay and activities, he or she should be an impressive local culture guide and a friendly group-chaperone.



INTERNET TOUR OPERATION PRACTISE The internet is the most popular global community. Around the world billions of people visit the internet daily for diverse reasons including to play, trade, negotiate and pay for products or services online. Today everything imaginable is bought and sold on the internet. According to National Information Technology

Development Agency, in 2009 Nigeria, with a population of 150 million, had 16% internet penetration, or 24 million users. But recent statistics, for 2012, revealed that Nigeria has 25% internet penetration, or 44 million users out of her 165 million populations. The numbers will certainly get higher and faster too, thanks to the abundance of cheap internet-ready mobile phones. Nowadays, every business either has a website, or strives to have one. Globally, there are several millions of websites, and thousands of new websites are uploaded every day. Thus, the internet is the global village, and a transformation vehicle of the new-age. The recent event in the ‘Arab Awakening’, starting from January 2011 in Tunisia, was made possible because of certain internet platforms like Facebook and Twitter. In the near future, the internet will coalesce the world into a single market place. Is your tour operating business on the internet? If not, am sorry to say, your business may not grow beyond your family and friends! You see, computerization of our world has turned business conventions on their heads. Today, most travelers start their trip and vacation enquiry from the internet. With Google search wizardry, in an instant you can have barrage of relevant data on your mobile device, and it just got better with real-time cities video mapping applications. Little wonder, travel agents are been successfully phased out by airlines with user-friendly online bookings and check-in tools, direct to potential passengers. Tourists are globetrotters, and reside in places physically and economically distant from their preferred destinations. Hence they resort to the web for destination offers, accessibility options, cost evaluation and to engage services of a reliable tour operator. In the light of these, you could strategically jump into the fray, and make profit. These days, it’s almost free-of-charge to put your business on the internet. Aside from free registration on web directories, the cost of setting up a website in Nigeria starts from N20, 000, for a five page website, and from N50, 000 for more pages with limited business tools on your travel website. Of course, Facebook and Twitter, the hot bed of social media, as a rule, have always been free of charge. You should create company Facebook and Twitter pages for better customer relationship management. Without further ado, you could contract an IT entrepreneur, or company, to register your domain, that is, your .com, then upload and host your website in two weeks. Either you or the IT Company would have to generate unique company sales pitches, tourism deals and creative promos on the site, and regularly update the offers. Then deliberately seek to drive traffic to your websites by activating company social media accounts, Facebook, Twitter, LinkedIn or Google+. Spend on internet advertisement, search engine optimization and voila, you’re on! Consequently, your company website serves as your sales and public communication medium. You can also use it to transact operations with your clients, service partners and destination ground handlers in real-time. You will be surprised at how your website becomes an effective marketing and sales medium. Over the years, when you draw up internet development and marketing strategy, your website management becomes reliable, cheaper and more productive. All these things allow you to break the barriers of time, space and money. You join the elite league of tour operators anywhere in the world, eloquently presenting your travel services and brands.



The internet provides further opportunity to solicit tourist clientele, and a medium to manage your customer service relationships. It also serves as a channel to receive service payments direct into your company bank accounts, using e-banking instruments, with little handling charges. A well configured tour operator website can provide detailed information about your company resources, trade specialties, staff abilities and company trade and investment policies. Your website could serve as a veritable public relations platform to comment on developing events and express your position on national discourse. Interestingly, your website gives you global visibility, and a kind of Right to First Refusal. It becomes a magnet that attracts Nigerian and international tour operators to evaluate your service integrity, engage you, and keep communications on business relationship. It is easier for tour operators around the world to engage the services of tour companies with active online presence. As a tour operator you could be engaged to act as destination representative and ground handler for foreign tour companies selling your destination. Websites facilitate international sourcing and engagement of tour companies for various services. But, do not be deceived, there are myriad of accompanying challenges to tour operation and website management in Nigeria. Typical challenges are internet scam, web hosting inefficiency, lack of web technology knowledge by local authorities. Just as well, government agencies vested with the powers of censorship and business ethics could be overbearing and frustrating, especially as they to relate to operating permits, and trade association regulations. Online tour operation is fast gaining preference as a fool-proof tourists and destinations networking vehicle. And leading tour operators around the world are carving niches for themselves using high quality audio-visual presentation, enchanting graphics, rich gallery of destination images, pictures and videos showing people, attractions and pristine places. Some popular online tour companies include, “Travelocity”, TripAdvisor”, “Expedia” and numerous others. The silver-lining, perhaps, are the new business opportunities and the cost effectiveness for executing market segmentation, online sales tools, destination handling, and e-payments. Some sites, like TripAdvisor, had vibrant tourist community forums successfully generating referrals for them. I hope you are convinced to maximize your business potential and immediately make investments to increase the capacity of your website. I tell you, it will return ten-fold every Naira and dollar, you shall invest within one year. Just be diligent to use the services of professional internet technologist. And PLEASE engage the same company to train your staff, to start updating and managing the website for at least three months after your website is launched. But I won’t tell you why you should include this clause in the web development contract. If you want to know more, read my published book: “Travel & Tour Operations in Nigeria”. +++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ Author’s Note: Tour operation is the veritable solution to the impending zero-commission policy of international airlines, as approved by IATA. Moreso, the practice of tour packaging enables you to add dependable value to your travel clientele and improve your agency bottom-line. Finally, I pray you put to good use the knowledge you have acquired during this training. You know, someone said, “the man who can read, but doesn’t, is not better than the man who can’t read”. Meaning practice what you have learnt here. And without doubt you will reap bountiful profits. Joesef Karim, arpa

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TOUR PACKAGING & SALES STRATEGY

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