TOPIC 1 - BACKGROUND INFORMATION 

At the end of this topic you should be able to:

 

1. Identify appropriate sources for product costing information.	¨
2. Select and interpret appropriate product costing information.	¨

 

A quotation, or ‘quote’ for short, is a statement of the amount someone will have to pay for goods and/or services.  In the travel industry, a quote usually includes the cost of transport, accommodation, sightseeing, some meals and other charges such as taxes and porterage.

 

In this topic you'll find out how to source, select and interpret information about tourist products.  When you can do this, you'll be able to identify where you can access the information you require to prepare an accurate quotation.

Before you quote

In Activity 1.1, if you chose all three options you would be correct.  Accurate quotes are important for all these reasons.  To accurately prepare a quote, you must ensure that you identify, select and interpret the correct information on all components of the travel arrangements that the client needs.

 

This information will be based on:

· the type of client 

· where and when they are travelling 

· the range of products and services included 

· the preferred contracts you have with principals and other service providers.

 

Gather information

Before preparing the quotation, gather lots of information.  You’ll need to find out what your clients need.  You can do this by asking relevant questions.

 

The questions you start with will be similar, regardless of the travel arrangements.  Here are some sample questions you could ask your clients: 

· Who is travelling? (Make a note of what type of travellers they are.) 

· What is the purpose of your trip? 

· What type of accommodation do you want? 

· How do you want to travel? 

· What meals do you want? 

· What type of special inclusions do you want? 

· Do you need the services of a tour guide - local or throughout the tour?

 

You also need to find out: 

· where to find the prices 

· what prices are available. 

 

By identifying the types of client you are serving, you will be better able to identify the components and the itinerary on which the quotation will be based.

Types of clients

 

Retail travel agents do business with a range of different client types.  These include:

· local and overseas point-to-point travel arrangements for leisure, family and corporate clients 

· packaged group tours for a range of different clients, who like to travel on a fixed itinerary, with everything organised for them 

· independent arrangements for fully independent travellers (FITs).  These are clients who like the flexibility of going where they want, but want to enjoy the benefits of special rates and pre-booking options for accommodation and transport 

· expertise in travel and exciting tours for special interest groups and for the Business Events sector. 

 

Tour wholesalers prepare package tours and brochures for touring itineraries and FIT travellers using special contract rates with a broad range of principals  -  ‘principals’ refer to the owners of travel services, e.g. an airline, hotel or coach company. Retail travel agents pass on these packages to their clients. 

 

By identifying the type of client, you're better able to identify the components and the itinerary on which the quotations will be based.

 

For example, the quote for a business client might include:

· business class return airfare 

· cost of deluxe accommodation 

· car or limo transfers

· porterage and taxes.

 

Brochures

Most people like to browse through travel brochures before making decisions about transport, accommodation or sightseeing tours.  Brochures are still a very important source of information in the travel industry for both travel agents and clients. 

 

Brochure features

Travel brochures contain a range of features designed to attract people to the product. There’s no limit to the enticing images and promises of adventure, serenity or romance that can be conveyed through beautiful pictures!

 

However, they also contain a lot of useful information.  Here’s what you’ll find in most travel brochures.

 

 

Front cover

The front cover usually includes:

· colourful and eye-catching photos and text 

· the name of the tour wholesale company displayed prominently 

· airline or coach operator logos 

· the date or season of the brochure. 

 

 

Inside

Inside the brochure you’ll find:

· a table of contents 

· more pictures representing the company and the destinations visited 

· pictures of the types of accommodation, with descriptions of hotels 

· different types of transport used on the tour 

· happy snaps of clients enjoying themselves while travelling with this company 

· details about the tour manager 

· maps. 

 

Back cover or inside back page

 

This is where the terms and conditions of contract are displayed.  It’s incredibly important that as a consultant you understand these and explain them to the clients.  Conditions will generally include:-

 

 

· Amount of deposit

· When deposit is due

· If deposit is refundable

· When final payment is due

· Cancellation fees

· Any other specific conditions that apply to product in this brochure

· Insurance

· Amendment fees

· Price guarantees

· Visas and passports

· Items not included

· Limitations and responsibility of the operator 

· Brochure validity

· Any other specifics

 

 

Itineraries

Touring brochures often include itineraries, maps and location shots to entice people to look at this product.

 

For independent travellers

· Accommodation: photos of hotels and other forms of accommodation, with rates and descriptions. 

· Car hire: different types of vehicles available, with rates and descriptions. 

· Sightseeing tours: ranging from day tours to several days. 

· Details about local tour guides. 

· Costs and types of meals that are available. 

· Conditions of contract: usually on the back page or inside back cover.  These explain the conditions that apply to this product, e.g. payment and refund conditions. 

· Booking form: this form gives details to the wholesaler of the clients and their needs, e.g. name, address, phone, tour. 

Especially important is the signature to say the client has read the conditions of contract and accepts them.

 

Who's travelling?

Once you’ve identified the range of products and services available, you’ll be able to advise clients on what will be included in the quote.  First, find out who your clients are. 

 

Travelling for different purposes  

There are several questions we need to ask before we can prepare a tour quote:

· Who is travelling?  What type of passengers are they? 

· What is the purpose of their travels? 

· What type of accommodation do they want? 

· How do they want to travel 

· What meals do they want? 

· What type of special inclusions do they want? 

· Do they need the services of a tour guide - local or throughout the tour? 

· Where do I get the prices? 

· What prices are available to me? 

 

Types of travellers and the purpose of their travels

You should ask first, who is travelling and what they want.  Tourism operators do business with a range of different client types: 

· We develop packaged group tours for a range of different travellers who like to travel on a fixed itinerary with everything organised for them. 

· Special rates for FIT travellers, who like the flexibility of going where they want, but want the benefits of special rates and pre-booking options for accommodation and transport. 

· Special-interest groups and Business Events travellers, who take advantage of our negotiated agreements with principals across the broad spectrum of tourism sectors. 

 

By identifying the type of traveller, we are better able to identify the tour components and the itinerary on which the tour quotation will be based.

 

Business Travellers	Return airfare-business class Accommodation-deluxe  Transfers-car or limo Porterage and taxes
For example, type of traveller	Services

 

Range of products and services that may be required

This answers the questions ‘What do they want included in their tour?’, ‘Where do they want to travel’ and ‘How do they want to get there?’

 

In your brochures, you’ll see a complete range of different products and services on each itinerary or provided by each FIT brochure.  They include:

· type of transportation-air, coach, car, limo, ship 

· type of accommodation-hotel, motel, deluxe, apartment, hostel 

· meals/no meals, breakfast only, dinner, bed and breakfast, all meals 

· sightseeing - entrance fees, transportation costs, full day, half day 

· how many sightseeing tours 

· tour manager - accompanies group throughout entire tour 

· local tour guide-accompanies group on local sightseeing tours.

 

Where do you find the prices? 

Once you’ve identified the products and services required you need to consult a range of sources to work out how much to charge. 

Feedback

Before she can provide an accurate quote, Amanda will need a lot of information.  To get this information she’ll need good communication skills to find out all the client’s travel requirements.  She’ll have to ask lots of questions (who’s travelling, the purpose of the trip, type of accommodation, meals etc.).  Then she’ll need to refer to a wide range of sources of information to provide accurate travel information and costs.

 

Return airfare:

· directly from the airline (gross price)

· from a consolidator who has negotiated special net rates with the airline

· negotiated contract rates with the airline.

 

Accommodation:

· directly from the hotel or accommodation provider (rack, corporate, ROH rates)

· tour wholesaler who has negotiated special net rates with the accommodation provider

· negotiated contract rates from accommodation provider.

 

Sightseeing tours and return transfers:

· A tour wholesaler who has negotiated special net rates.

Costing sources

There is a wide variety of sources you can draw on when you are costing travel arrangements.  Many are included here.  Remember, too, that you must contact the principals and confirm that the information and prices are current.  This applies especially to printed material as it goes out of date very quickly and often now only approximate prices are shown.  Also, you should check the validity on your contract with principals to ensure you are quoting correct prices.  Sources of costing information include:

· product brochures, e.g., Insight ‘Europe’, Peregrine ‘Himalaya’ 

· product manuals, e.g. from principals such as Peregrine, Explore, Trafalgar 

· state or national tourism organisations 

· the Internet 

· travel agents, e.g. Harvey World Travel 

· tour wholesalers, e.g. Jetset Tours, Qantas Holidays, Creative Holidays 

· automated reservations systems, e.g., Galileo, Sabre, Amadeus 

· staff knowledge 

· local directories, e.g., visitor information bureaux; Michelin Guide 

· general sales agents 

· preferred agents’ agreements 

· special negotiated agreements 

· airlines 

· consolidators 

· direct with principals