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Tour package

Tour package is total tourism product which is planned, organized, combines and sold as an inclusive tour by a set price to the tourist by a tour operator.

It means a pre- arrangement, prepaid trip that combines two or more travel components like airfare, airport transfer, accommodation and other services

Types of package tour

independent tours escorted tour Hosted tour Incentives tour

Components of a package tour

Travel Ground arrangements

Tour formulation- factor affecting

purpose of tour choice of destination tourist budget legal consideration tour period types of tourist accommodation tour price tour reference tools tour features Departure and stay information

Stages for package tour formulation

1. Initial research The destination research Market research:- market research provides answer to the following question: What is the size of tourism market? Who are the existing clients? Where do they live? Who will be their potential buyers? What price the client will accept? How many tourists one wants to cater? Who are their competitors

2. Itinerary preparation: the element of itinerary include the route, distance, travel time, activities and sightseeing during the tour. (a) Pace :- pacing refers to how quickly or slowly an itinerary moves. Providing comfortable pace for clients is essential to their enjoyment of the tour. Older client often prefer to stay two or more nights at each hotel, while younger and healthier clients prefer a faster pace.

(b) Routing (c ) interest :- match client interest with corresponding activities and attractions along the way.

(d) Energy :- take note of how much walking certain tours require whether or not the client is travelling alone or with family with small children and what type of tour experience is the client looking for.

(e) Meals :- a wide range of meals plans are available while booking tours and hotels : European plan :- no meals are included continental plan :- light breakfast included Modified American plan:- breakfast and one major meals is provided, normally dinner. American plan :- all three daily meals are provided, this, plan is common on cruise and tours that visit remote areas. Bermuda plan :- include a full cooked breakfast and no other meal is provided.

3.Handling agency/ destination company 4. Negotiations Airlines Accommodation Ancillary service organizations

5. Costing and pricing a package tour 6. The tour brochure brochure should contain of the following information:Name of the travel company Means of transport Itinerary Accommodation, types, location, meals Name of the overseas representatives Duration of each tour Booking reservation and cancellation conditions Detail of price Travel documents required Detail of other services-insurance, currency

7. Development of reservation system 8. Marketing of tour package 9. Tour handling/ actual tour operation

Significance of package tour

Time savers Less cost and price increase the seasonality of a destination earn foreign currency better quality of products professional services wide- variety of tour package Provide bulk business to organizers

The term price denotes the money value of a product. It is the amount of money for which a product can be exchanged. It is very difficult to define the price of a product. the more the number of services he wants to get, the more price he will have to pay

Need and Objectives of pricing

To achieve target rate of return on investment or on net sale. To achieve price stability To meet or prevent competition To maintain or improve market share To maximize profit To survive in the market To build public image of the firms.

Determinants of pricing policy

internal factors:1. objectives of the firm 2. role of top management 3. marketing mix 4. product differentiation 5. cost of the product

external factors:1. Demand 2. Buyers 3. Suppliers 4. Competition 5. Govt regulation 6. Economic condition

Pricing under different types of market

Pricing under pure competition Pricing under monopolistic Pricing under oligopolistic market: few seller Pricing under pure monopoly: one seller

Various approaches to pricing

Cost plus pricing Breakeven pricing Psychological pricing Meeting competitors pricing Market skimming pricing Market penetration pricing

Pricing under product mix

Product line pricing Optimal pricing: company sell optimal product with their main product. Two part pricing Product bundle pricing: seller two offer bundle of their products at a reduced rate by combining them together use product bundle pricing.

Discounting pricing Discount for cash payment Bulk discount Trade discount Seasonal discount Discriminatory pricing Time pricing Customer segment pricing Location pricing Promotional pricing

Pricing procedure
Identify the target customer groups and their profiles Decide the desired market position and price image for the brand Determine the extent of price elasticity of demand of the product and extent of price sensitivity of target customer groups Evaluate the life cycle stage of the product Find out the actual and relevant cost Study competitors price Evaluate other environmental factors Select the price method to be used Fix the final price Review and control pricing policy and procedure.