Itinerary planning and costing in the travel industyr.pptx

lo3

1. Itinerary Preparation & Costing Meaning and components

2. Topics to be covered Meaning of itinerary Principles of itinerary planning Points to remember while planning an itinerary Resources for planning travel itineraries Tour costing

3. The journey undertaken by any individual or group must be planned and efficiently managed. An itinerary is used to identify the destinations an individual / group wants to see and visit. Let’s understand the word itinerary. The word “itinerary,” means, “the route of a travel or tour, or the proposed outline of journey to any place/destination(s). Itinerary is the step by step representation of the entire tour program; clearly indicating the program schedule along with other details like accommodation, sightseeing, transport etc. to the guests. A good itinerary will save time and money, apart from making the trip hassle free and a pleasant experience. An itinerary is a key and significant component of a tour package. It may be an initial itinerary or a final itinerary. Basically it is designed to identify the origin, destination and all the enroute stopping points along with the transportation, accommodation and other services on a traveler’s trip. An itinerary has various portions and these portions are known as segments.

4. Principles of itinerary planning Planning itineraries is an essential function for a professional travel agent and is an effective way to gain client trust. Once an effective itinerary is planned for a client and the trip runs smoothly and according to plan, the client will be more likely to refer the same agent in future. Happy clients are also more likely to refer the agent to their friends and business associates, thereby generating additional revenue. When planning itineraries, it is helpful to follow some basic guidelines that can be broken down into five categories: Pace Interest Details Energy Routing

5. Pace Pacing refers to how quickly or slowly an itinerary moves. Providing a comfortable pace for clients is essential to their enjoyment of the trip. While it is frequently important to keep the itinerary moving, setting a pace that is too rapid can overburden clients and decrease their enjoyment. A client's age and health should also be considered when determining pace. Generally younger and healthier clients can move at a faster pace, but this is not always true, and each client should be considered on an individual basis. Finally, any disabilities need to be evaluated when determining an itinerary's pace. A good rule of thumb for determining pace for self-driving clients is not to exceed 120 miles (i.e., 200kilometers) per day. Also, allowing for rest stops and sightseeing along the way can improve the client's enjoyment of the trip.

6. Interests One very significant way to add value to a client's trip is to match his or her interests with corresponding activities and attractions along the way. To do this effectively, an agent must talk to his or her clients and listen carefully to the types of activities and the manner in which they describe their interests. It is helpful to provide a balance by planning some variety into the trip. To do this, he can schedule a mix of recreational activities educational activities and “frivolous activities” into the basic itinerary. Determining and matching interests takes practice and destination expertise, but the extra effort it takes to practice and learn will be rewarded in the form of client satisfaction.

7. Details No matter how clever an itinerary planned for the client, if much attention to the details is paid, the itinerary may be a failure. Details include checking to make sure attractions on the itinerary are open when the client arrives, reconfirming all ground handlers and transport and even checking with the clients to make sure they have made all necessary preparations including taking their passports and filing all essential prescriptions. Paying attention to detail may seem tedious, but awkward situations may be avoided if the planner knows the details of the destinations, the visiting hours, etc.

8. Energy Finally, matching the energy level of the client with the energy level and intensity of the itinerary is another way to ensure the overall success of the trip. When considering this aspect, it is important to take note of how much walking certain destinations require, whether or not the client is travelling alone or with a family that includes small children and what type of travel experience the client is looking for. A traveler in search of a quiet beach vacation may not appreciate four scheduled activities per day. Get an idea of the client's energy level, listen to what they tell and what they want, and then match the itinerary based on the observations and experience.

9. Routing It is important as a travel agent to plan both an interesting and efficient routing for the client. Ideally the route should be both scenic and practical. Whenever possible, avoid backtracking, doubling back or routing a client in circles. This is particularly important when routing corporate clients because a travel agent will need to build the routing around the individual's business appointments. It is important to listen carefully to clients’ plans and help them access if the plan is realistic within the framework of geography.

10. Time spent on careful and detailed planning of an itinerary is never wasted. Sometimes, there might be some places which are unfamiliar to the travel agents too or take into consideration the fact that certain tourists may not prefer to travel via some countries, whilst yet others will want to reach their destination by a specific time. All these special aspects have to be borne in mind in order to produce the most practical itinerary in accordance with the passenger's desires.

11. Points to remember while planning an itinerary When planning the itinerary for a passenger, always remember to observe the following steps: • Establish the places which the tourists wish to visit. • Establish the order in which the tourists wish to visit them. • Link the cities in such a way as to avoid doubling back and zigzagging, (unless absolutely necessary) while at the same time meeting any special request made by the passenger. • Take account of the political situation, geographical limitations and the practicality of the transport options. • Ascertain that convenient air/sea/rail or road connections exist and, where possible, choose the quickest. • Give preference, wherever possible, to itineraries with the lowest fares. Detours often raise the price. • Plan the itinerary logically, using an outline. • Be prepared to provide alternatives in case the passenger changes his or her mind or, when unexpected circumstances arise which will prevent the itinerary proceeding as originally planned. Initial notes and calculations can often help in this regard and should therefore always be retained.

12. Resources for planning travel itineraries The various resources necessary to help in the process are: Thorough Understanding of Travel geography: The best way to gain knowledge of travel itineraries is to travel to the destination by the agent himself. Unfortunately, there is simply no way to visit every possible destination that the clients might request. Therefore, following resources may be considered: Familiarization with Clients’ Feedback: Follow up with the current clients and find out how their trips were. Feedback, both positive and negative, can be a valuable source of information. Consider developing a database of clients and making notes about their experience in the database. This type of follow-up will not only give valuable information about the destinations and itineraries that are planned, but it will also help build rapport and establish client loyalty and trust. Consulting Travel Guidebooks: Libraries and bookstores carry large numbers of travel guidebooks. Many of these guidebooks are quite helpful to travel agents. Some guides to consider are Michelin, Fielding, Fodor, Frommer , Birnbaum and the Blue Guides. Information from national and Regional Tourist Board: Governmental tourist boards and offices offer a tremendous variety of useful information for the travel agent. One is able to gather information about the history, culture, geography, transport system, lodging, museums, special events and local currency. Many of these boards will send the professional brochures, posters, and videos etc. that can be used as pan of the sales process.

13. A client profile gives the travel agent an idea of the person or persons they are drawing up a tour plan for. The tour operation industry practices highlights that there are two types of tourist itineraries- Ready-Made and Tailor Made. The ready-made itineraries are made in advance without knowing when and who will buy. It is similar to produce clothes, shoes and display in a shop. It is prepared to suit maximum number of potential travellers . It must be saleable and should be focused on the potential market segmentation. While preparing ready-made itinerary, a tour operator should consider its capacity, market, marketing strategy, competitor's policy, future company policy, pricing policy etc. They are used for packaging tours, so these are also known as package tours.

14. On the other hand Special or Tailor-Made itineraries are made on request to suit the individual travellers . In fact, a Tailor-Made itinerary is developed on the request or on demand of the particular traveller /customer. Thus, while preparing Special or Tailor-Made itineraries, two way communications is possible so that itinerary can be prepared as per the 6 tourist requirements. Generally, in this type of itinerary, duration, places of visit, date, hotel plan, type of service required is known. Tour itinerary may be prepared on the basis of the following points. Single or multiple destinations: To include only one destination or to include more than one destination in one itinerary. Special interest package: For example adventure package, cultural package, holiday package, etc. Tour package: An itinerary prepared for pleasure, relax. Travel package: An itinerary especially for travel. Outbound package: An itinerary prepared for domestic tourists to visit foreign countries. Inbound package: An itinerary prepared for foreigners to visit our country. Domestic tours: An itinerary prepared for local people to visit own country.

15. Itinerary for GIT GIT itineraries are generally designed or developed to cater the needs of first time travellers . The first time travellers do not want to take any risk therefore a Group Inclusive Tour (GIT) itinerary follows the fixed itinerary and schedule. In a GIT package tour, options are limited to clients or gusts or group members and follow it as per tour itinerary. The primary reason is that it is a ready-made package and common activities are encouraged rather than individual interests. There is no scope for alterations as many things are prearrangement, pre-planned and pre -priced. Naturally, cancellation of rooms/ or any booking in case of group bookings is not allowed at the eleventh hour. Any change in itinerary may create crises situations and disturbance and disturb distribution channel. Services of a package tour along the itinerary like hotel rooms, cars, guides, flights, events, entry fees, toll taxes, etc are fixed and they are confirmed much in advance. Therefore, any modification/ revision or change may results in loss and reduction of profit amount. Moreover, the entire schedule is spoiled. Further, it practically becomes very difficult for operator and supplier to rectify or rearrange schedule.

16. Itinerary for FIT Free Independent Tour (FIT) itinerary is developed to cater the needs of repeat tourists or those who want to travel independently. Generally, the travellers are experienced have full knowledge of destinations they want to visit. Thus, Free Independent Tour (FIT) itinerary is, on the contrary, preferred for its freedom to select hotels, places, transport, guide and other services . In this type of itineraries modifications may be possible at the last hour due to change in programme or any untoward incidences. There are flexible options and clients may meet personal requirements at their disposal. Clients may ask the tour operator to make certain changes as per interest and preferred activities. Tour operators can do the needful against the availability of flights, trains, vacant rooms and other services. Moreover, this type itinerary lends good space for tourists to do activities of personal choice and interest.

17. Tools and techniques Travel planning software Booking platforms Calendar apps

18. Tour costing It is vital for any company to price its product correctly. Prices must be right for the market and sufficient to cover overheads and provide a satisfactory level of profit. The prices vary according to season (and hence reflect the level of demand) and tend to be set by the market leader. The cost of an inclusive tour reflects: Transportation costs (calculated over the course of a season to take into account seasonal variation in demand) Accommodation Ground handling arrangements Airport/port taxes Value added tax Gratuities, porterage A small fee to cover price rises Mark-up ( approx 25% of cost price) (This covers agency commission, marketing costs, head office administration costs and profit.)