Download arranging the tour yourself

Matakuliah
Tahun
: G0404/Tour Guiding
: 2006/2007
ARRANGING THE TOUR
YOURSELF
(continue)
Cancel anything you are not going to use
• Your agency’s manager will not
want to hear excuses; he or she
will just want to know how you are
going to pay – now.
Have alternatives
• To save time and to look
professional, know the exact
itinerary of your tour and have
second choices ready.
Remember visas and passports
• Make sure you know what
documents your tour members
must bring, including visas for the
countries you are traveling to.
Use the right phone numbers
• REMEMBER:
Every agency has a huge book
listing hotel phone numbers for
just about every destination.
SHOP AROUND
• REMEMBER:
Comparison shopping is A MUST.
Always dress neatly
• REMEMBER:
Image counts.
Always smile & thank everyone
• REMEMBER:
Charm, patience and a smile go a
long way in this industry.
PRICING YOUR TOUR
What you should bear in mind
PRICING YOUR TOUR
DON’T FORGET TO:
 Confirm amount of payment
 Write everything down
 Cancel what you are not going to use
 Have alternatives
 Have visas and passports
PRICING YOUR TOUR
• Build up the perception of
value by giving your
customers something no
one else has.
MARKETING YOUR TOURS
“Marketing is the key to staying in
business”
MARKETING IS NOT JUST
ADVERTISING
• REMEMBER:
 Marketing is the total effort you make to
get clients to buy from you.
 Marketing thrives on imagination and
optimism.
YOUR BROCHURE
• REMEMBER:
Your brochure is one your most
important marketing tools.
• CONSIDER:
The price and the impact
YOUR BROCHURE
•Legal fine print
•Photos
•Printing
REMEMBER: Keep words to
a minimum
USE YOUR PERSONAL CONTACTS
• Get a head start by drawing up a
list of all the clubs and
organizations you belong to.
• Your business card should be with
you wherever you go.
THE ULTIMATE MARKETING
TOOLS
• Word of mouth
• Know your competition
• Free publicity
WHAT’S NEXT
•
•
•
•
Conducting informational seminars
Selling through travel agents
Direct mail
Advertising as a small tour operator
Matakuliah
Tahun
: G0404/Tour Guiding
: 2006/2007
USING THE INTERNET
The information super highway is here and it
has been a boon to tour guides, making
research and communication easier and less
expensive.
USING THE INTERNET
• Research
• Booking airline seats, cars, and
hotels
• E-MAIL
• Marketing using the WWW
• Your brochure
USING THE INTERNET
• SPAM
• Collecting money over the
internet
• Keeping in touch
BUILDING A TOUR COMPANY
“Your credibility and reputation will
become the keys to repeat the
business.”
BUILDING A TOUR COMPANY
THE BIG QUESTION:
AM I READY TO
GET BIGGER?
BUILDING A TOUR COMPANY
• Day-to-day life of a tour operator
CONSIDER THIS POINT:
The travel industry sells dreams and convenience, and it
runs on paperwork. Your clients are about to give you a
big amount of money in exchange for a piece of paper
that promises a service of unknown quality to be
delivered sometime in the future.
BUILDING A TOUR COMPANY
•
-
REWARDS
self-fulfillment
Good feedback
Control
Satisfaction
Reasonable hours
BUILDING A TOUR COMPANY
• CONSIDER: Statistics about travel
businesses
• What are your goals?
Ask yourself this question:
What do you want to achieve?
BUILDING A TOUR COMPANY
ASSESING YOURSELF:
Your personal qualities
Your experience and
education
PRESCRIPTIONS FOR SUCCESS
Tasks you should work through to
evaluate whether the travel
industry is for you.
PRESCRIPTIONS FOR SUCCESS
• Explore the industry
• Develop your skills:
-
General skills
Office management skills
Financial skills
Machine skills
Computer skills
Travel agent skills
PRESCRIPTIONS FOR SUCCESS
• Planning
Plan everything on paper first.
• Take on a knowledgeable partner
• Educate yourself
 Being in business for yourself means
being an expert in many areas.
PRESCRIPTIONS FOR SUCCESS
• Learn how to market your business
• Prepare for failure, then concentrate on
success
REMEMBER: Thoughts of failure have a
tendency to rob you off the optimism.
MAKING YOUR BUSINESS LEGAL
Tasks you should work through
to make your business legal
MAKING YOUR BUSINESS LEGAL
SET UP YOUR BUSINESS LEGALLY:
- Sole proprietorship
- Partnership
- Limited partnership
- The corporation or limited company
- Subchapter “S”
MAKING YOUR BUSINESS LEGAL
OTHER REGISTRATIONS
- Workers’ compensation
- Employee registration with the government
- Goods and service tax
- Provincial and state taxes
- Municipal license
- Better business bureau
MAKING YOUR BUSINESS LEGAL
REGULATIONS CONCERNING TRAVEL
BUSINESSES
 Some states and provinces require some
form of certification for travel businesses.
Matakuliah
Tahun
: G0404/Tour Guiding
: 2006/2007
WHAT WILL MY BUSINESS LOOK
LIKE?
WHAT’S INSIDE
WHAT WILL MY BUSINESS LOOK LIKE?
1. Selling retail products
2. Selling complementary tours
3. How to choose your products
 REMEMBER: Marketing several disparate products
simultaneously may cause some confusion in the
consumer’s mind about what you are really good at.
WHAT WILL MY BUSINESS LOOK
LIKE?
4. How to select suppliers
 If a supplier abandons you at a crucial
moment or makes it difficult to remedy
problems, do not deal with that company.
LOCATION! LOCATION!
LOCATION!
• The types
1.
2.
3.
4.
Enclosed malls
Retail street level and small strip malls
Downtown VERSUS suburban
Office buildings
EQUIPPING YOUR OFFICE
• A bare bones office is all
you really need to get
started.
EQUIPPING YOUR OFFICE
1. Telephone systems
Try not to tie up the same lines your sales
come in on while you are organizing
every detail of your tours.
EQUIPPING YOUR OFFICE
2. Computer
3. Fax machine
4. Photocopier
5. Decorations
6. Computerized reservation systems
FINANCING YOUR TOUR
OPERATION
SOURCES OF FUNDS
SOURCES OF FUNDS AND FREE
FINANCING
• Banks
• Government guaranteed
loans
• Venture capital
• Family and friends
SOURCES OF FUNDS AND FREE
FINANCING
• Personal lines of credit,
personal loans, and credit
cards
• Other private investors
HOW MUCH MONEY WILL YOU
NEED?
CONSIDER:
1.
2.
3.
4.
Your market
Geographic area
Size of your telephone system
Equipment
HOW MUCH MONEY WILL YOU
NEED?
5. Expenses associated with
your location
6. Working capital
7. Other licensing fees
FINANCING YOUR TOUR
OPERATION
• ADDING UP THE COST OF YOUR
BUSINESS
• RECOMMENDATIONS
- Forget the frills
- Trade time for money
- Do not go into debt for the long term
RECOMMENDATIONS
- Hire people who care
- Read carefully
- Think small
Matakuliah
Tahun
: G0404/Tour Guiding
: 2006/2007
REVENUES AND EXPENSES
Several strategies you can try to
get higher commissions
Several strategies you can try to
get higher commissions
• Ask for a higher commission
When your volume with particular
suppliers has grown substantially, discuss
an increased commission rate.
Several strategies you can try to
get higher commissions
• Override commissions
BE CAREFUL not to fall into the
common trap of selling tickets at cost
in order to make your override quota.
Several strategies you can try to
get higher commissions
• Use wholesalers and
consolidators
Wholesalers and consolidators may give
you a higher commission rate than you
can get yourself.
Several strategies you can try to
get higher commissions
• Join a consortium
When choosing a consortium, pick one
with a lengthy track record, a long list of
agreements with popular companies, and
an easily understood manual that explains
any special booking instructions for
obtaining a higher commission.
Several strategies you can try to
get higher commissions
•Join forces with
another agency
EXPENSES
REMEMBER:
Controlling expenses
is a great way to earn
money.
EXPENSES
REMEMBER:
Carefully assess whether
you are getting good
value for the money you
spend.
PERSONNEL
“A competent staff is essential to
your success.”
1. INSIDE AGENTS
• It is recommended for you to hire
experienced sales staff to do the
day-to-day sales.
2. MANAGERS
• You would be best to start off with a
manager who has experience running a
tour operation or travel agency, has the
background to solve both customer and
supplier problems, and is willing and able
to do sales as well.
3. HOW MANY PEOPLE DO YOU
NEED?
• REMEMBER:
Training full-time staff only to let them go
when business slow is an expensive
proposition.
4. EXPERIENCE AND
QUALIFICATIONS OF STAFF
• REMEMBER:
Formal training is a help but the attitude
and experience of a potential employee
are more important.
5. WHERE TO FIND
EMPLOYEES
•
•
•
•
Word of mouth
Industry publications
Newspaper advertising
Employment agencies
6. THE INTERVIEW
• When you are hiring, be
sure to check every
reference and each post
job.
6. THE INTERVIEW
(continue)
Unexplained gaps in a
resume will alert you to
jobs the candidate may
be reluctant to disclose.
Matakuliah
Tahun
: G0404/Tour Guiding
: 2006/2007
PERSONNEL
“A competent staff is essential to
your success.”
(continue)
7. SALARIES
• The upshot is that there are no
rules about salaries, depending
on the timing and your locale,
salary ranges can vary by up to
100 percent.
7. SALARIES (continue)
• The commission component
 Keep current about wages or you could
find yourself continually training new
people to replace those who leave.
7. SALARIES (continue)
• Benefit packages
Expensive
Require time to explain to your employees
and to administer.
7. SALARIES (continue)
• Reduced rate travel
• Vacation time
 Most areas have laws on the minimum
amount of paid vacation time a company
must give its employees.
7. SALARIES (continue)
• Free labor
 Every jurisdiction has a minimum wage.
You need to know what it is.
7. SALARIES (continue)
• Free labor
 By using a travel school, the nature of
your obligation to the student is
abundantly clear.
STAFF MORALE
• GET THE BEST FROM YOUR
EMPLOYEES:
- Communicate
- Consult
- Promotions
- Rewards
- Start an incentive system
MARKETING THROUGH TRAVEL
AGENTS REVISITED
“Travel agents are a mixed
blessing.”
Points to be considered
• Have a well-thought-out plan
for dealing with travel agents
and make sure you appear
professional.
Points to be considered
•
Make sure you approach
agents with promotional
material at least once or twice
a month.
Points to be considered
•
Try to target the agencies
catering to the appropriate
kind of client and market to
them.
Points to be considered
•
Market by fax/E-MAIL
if you can.
TRAVEL SHOWS
• Code all brochures so
you can track whether
the show generated
enough sales to make it
worthwhile.
WALK-IN TRAFIC – HOW MUCH DO
YOU REALLY WANT?
•Walk-ins generally
take up more times
than someone who
calls you.
ATTRACTING WALK-IN
TRAFFIC
• If you decide that you do
want walk-in traffic, you
must plan how you will
attract it to your office.
Matakuliah
Tahun
: G0404/Tour Guiding
: 2006/2007
ADVERTISING
“Advertising is an expensive trial and error endeavor.”
HOW TO RUN AN EFFECTIVE
ADVERTISING CAMPAIGN
YOU NEED TO:
• Choose a product to advertise
• Choose the most effective advertising
medium
• Create an eye- or ear-catching ad
• Evaluate the return on your advertising
budget
ADS: THE MEDIA
1. RADIO AND TV
2. PRINT ADVERTISING
 Print advertising is low risk compared to
radio and TV.
ADS: THE MEDIA
• PRINT ADVERTISING:
(1) Newspapers
(2) Magazines
ADS: THE MEDIA ADS: THE
MEDIA
CREATING EFFECTIVE PRINT
ADVERTISING
 Pick the product to advertise
 Create your ad
 Make sure your phone number large in your ads so that
it’s easy for people to find.
 Choose the right vehicle
 Evaluate the response
ADS: THE MEDIA
CREATING EFFECTIVE PRINT
ADVERTISING
 Helpful hints for print advertising
 Keeping careful records means you can
budget your advertising dollars and avoid
waste.
ADS: THE MEDIA
Helpful hints for print advertising
 Watch what other advertisers do time after time.
 Never run an add without confirming that it is properly
placed and correct.
 Know what your competition is offering.
 Do not include your address in the ad.
 Seasonal considerations and timing may play a part in
advertising for your area.
ADS: THE MEDIA
Helpful hints for print advertising
REMEMBER:
Finding your first consistently winning
ad may take some time. Do not get
discouraged.
ADVERTISING
“Advertising is an expensive
trial and error endeavor.”
CREATING EFFECTIVE PRINT
ADVERTISING (continue)
• CO-OP ADVERTISING
 Many suppliers will share advertising
costs with you if you are running an ad
that advertises their product exclusively.
CREATING EFFECTIVE PRINT
ADVERTISING (continue)
• PIGGYBACK ON SOMEONE ELSE’S
MARKETING
 Look for opportunities to share the costs
of reaching your audience.
CREATING EFFECTIVE PRINT
ADVERTISING (continue)
• DIRECT MAIL
If it is done correctly, a direct mail
campaign pinpoints groups of people who
are most interested in the products you
sell.
CREATING EFFECTIVE PRINT
ADVERTISING (continue)
• ADVERTISING HOTLINES
• ADVERTISING ON THE WWW
 Make good use of key words and search
engines in your advertising on the internet.
CREATING EFFECTIVE PRINT
ADVERTISING (continue)
• NEWSLETTERS AND OTHER PERIODIC
MAILINGS
• PROMOTIONS –PREMIUM GIVEAWAYS
AND CONTESTS
CREATING EFFECTIVE PRINT
ADVERTISING (continue)
• PROMOTIONS –CHARITABLE
DONATIONS
 The amount you choose to donate is up
to you and the association.
CREATING EFFECTIVE PRINT
ADVERTISING (continue)
• DIRECTORIES
• DISCOUNT COUPONS
CREATING EFFECTIVE PRINT
ADVERTISING (continue)
• REMEMBER:
“No amount of advertising
will overcome faulty
pricing, a bad choice of
products, or rotten
service.”