what is it package tour

Tour Package

Package holidays, popularly known as a tour package or simply the word ‘tour’ in the travel and tourism industry refers either to a package tour escorted or not escorted by the tourist guide.

When we say tour package, it means a pre-arrangement, prepaid trip that combines two or more travel components like airfare, airport transfer, accommodation, and other services . Practically, to define the tour package concept is complex one rather understand.

Holloway defines a tour package as “a total tourism product consisting of transportation from the market area to the destination, accommodation at the destination and recreational activities promoted by the tourists.”

According to Gregorg “a tour package is advertised journey including specific features, arranged and promoted with tour literature by a tour operator and paid for in full by the tourists  before starting the tour.”

Technically, a package tour/tour package is a total tourism product as it generally includes transport from the origin place to the destination, accommodation at an en route place or at the destination and other recreational or travel services. These components are purchased by an individual, firm or company called the ‘ tour operator ‘. He combines all the travel components in a package and sells them at all-inclusive prices to the clients.

History of Tour Package

The term ‘tour’ was in vogue as early as 1670. The Britishers traveled to widen their knowledge of the continent, especially to study the culture and social life. This practice was gradually adopted by other lovers of cultural centers.

The result of the process was that many European historic and cultural centers were opened to the British tourist. By the early 1730’s the small fishing resorts around the British coast begin to attract tourists seeking to their diseases by drinking the sea-water or by immersing themselves in it.

The introduction of a rail link between the major centers in 1830, had a profound impact on the pleasure travelers for the first time. Many entrepreneurs began to inspire rail travel by organizing excursions for the public at discounted offers.

However, to ‘the origin of package tour’ the credit goes to Mr. Thomas Cook in 1855 , Cook, extended his business operation to different countries by introducing the first ‘ inclusive tour ‘ to Paris.

Mr. Cook put together all the components of tourism products and sold them as ‘inclusive tour’ to the tourists. His pre-packaged tour inspired other tour organizations in the travel industry to organize similar tours to all parts of the globe.

Most of Cook’s tours were a linear tour i.e., the person went from place to place on a single destination. Basically, Mr. Cook developed the concept of ‘grand tour and escorted tour’, the concept which is still used.

Incidentally, World War II has tremendously developed the package tour concept because of the following reasons:

• Social and Economic Conditions
• Increase in Aircrafts
• Marketing Conditions
• Legal Requirements
• Integration took place.

Today, package tours are a vital segment of the world’s travel and tourism industry. According to WTTC, the package tour sales generate $25 billion annually in the United States, $18 billion in Europe, $19 billion in Britain, and $21 billion in Asia. Today tour sales represented 50 percent of all leisure travel sales and 35 percent of all travel agency revenues.

Types of Tour Packages

A travel agency/tour operator deals with variety of ‘tour packages,’ catering to the diverse needs of tourists such as adventure, beach, architecture, cultural, business, conference, incentive tours, ayurvedic packages, Buddhist, religious, incentive tour, special interest tours, cruise tour group tour, educational tour, heritage, monuments, wildlife lovers, etc. These are broadly classified into five categories :

• Independent Tours
• Escorted Tours

Hosted Tours

• Incentives Travel/Tours

Freedom Tours

Independent tour.

Independent tours are prepared/formulated for those tourists who want to travel independently. The components of such tours are air travel, air transfer, accommodation, travel documents, sightseeing, boat riding, entertainment, and other travel services.

However, in some cases, the tourists are free to purchase every single component separately. Thus, this type of tour provides the tourists considerable freedom to plan the activities according to their own choice.

An independent tour may or may not be an all-inclusive tour. Therefore, tour price varies depending on the type of air travel, air transfer, accommodation and is inclusive of other tour components. The foreign independent travel (FITs) and domestic independent travel (DITs) are examples of an independent tour.

Escorted Tour

When a travel agency includes the services of a well educated and trained tour manager in its package, the tour is called an escorted tour. Basically, escorted tours are meant for those travelers who are planning to visit a foreign country first time.

The escort’s responsibilities and duties are to provide comprehensive information and assistance to the group or individual traveler, at the origin, en route and the destination place. The excursion tours are the example of escorted tours.

A hosted tour means when an agency utilizes the services of another agency at a particular destination. Suppose a group of French tourists is coming to India. When the group arrives in India, they are greeted at the airports by TCI, which assists them in clearing their baggage and transfer them to the hotel.

Their tour-host (TCI) is available to offer device and information about the local attractions and entertainment. Further, when the group arrives at another designation in India, a different travel agency greets them at each tourist spot. Thus, a hosted tour provides the tourists maximum level of pre-arranged and personalized services.

Incentives Travel/Tour

It is a motivational programme or a fully paid holiday which is given to the employees by the enterprises as a reward. Mostly in medium and large-scale companies and usually too distant destinations to spur them in maintaining their track record, to increase output, improve the image and moreover to earn the long period loyalty of the employees.

There are a number of the other packages offered by a tour company such as a custom tour an excursion tour, an adventure, and special interest package tours.

Freedom tours are becoming very popular these days among the working class. These tours are designed as per the choice of tourists. The tourist is free to choose and plan how they want to travel and enjoy their holidays. These types of tours are meant for that kind of people who like to decide how, when, and where to travel.

This tourist may an individual, family, group holidays for families and group travel for business. These tours are promoted and developed by the ORBIT.

Components Of Tour Package

What is to be included in a package tour largely depends and varies from one tour organization to another, or from the one country to another, or from one destination to another and from one market to another market. But there are certain well-defined travel services which always turn a part of a package tour irrespective of the tour operator/travel agency, destination and even the market condition.

If we study and see the package tours offered by Thomas Cook and Sons Ltd., Cox and King Ltd., and other international travel companies, we find that a package tour has two major components. Therefore, a standard package tour has two basic components namely:

• Ground Arrangements

Travel industry experience has shown that the first component, i.e. ‘Travel’ is directly bought by the agency from the principal providers like airlines and transport operators and for ground arrangement, the travel agency management asks the ground operators.

The reason behind buying ground arrangement from a handling agency is that it represents as a ground operator at a particular destination for the numerous tour organizations. Secondly, the price offered by it are much lower than an individual agency obtain. Thirdly, it is very difficult to get credit from the supplier and finally, it ensures professional travel services.

Factor Affecting the Tour Package Formulation

Generally, the business of package tours involves great risk, high breakeven, high-quality product, and competitive prices. Therefore, the tour management requires in-depth tour planning and market survey. However, before a tour is designed the tour manager should take into consideration certain factors which are crucial in the formulation process.

These factors have a profound impact on the tourist’s satisfaction. The main factors are:

• Purpose of Tour
• Choice of Destinations
• Tourist Budget
• Legal Requirement
• Types of Tourist Accommodation
• Tour Period
• Departure and stay information
• Tour price; inflationary condition
• Tour Reference Tools
• Tour Features – political stability
• The relationship between the host and tourist generating nation

Tour Package Design and Selection Process

The quality of a package tour is entirely based on the above factors. Essentially, to design/formulate a travel product, the tour manager has to take the biggest responsibility, intuitiveness, imagination, and innovation coupled with a lot of business activities which range from finding new exotic destinations and planning, organizing or promoting such tour.

The following are the main stages in the tour design and selection process:

1. Initial Research

(i) the destination research.

The decision to develop and formulate a new package is a multi-stage process that involves various positive and negative points/steps. Normally, the idea for a new product comes either from the tour executive within the company due to a review of the questionnaire completed by the previous tour members because of the political, economic and social development in a particular area.

When a tour manager see that a large number of old clients are interested in taking a trip to particular destinations, naturally, those destinations become the nucleus of a new ‘tour concept’.

(ii) Market Research

Since tour package is a complete tourism product, obviously, before formulating/designing this product, market research needs to be analyzed and assessed in a systematic manner. Market  research provides us the answer to the following questions:

• What is the size of the tourism market?
• Who are the existing clients?
• Where do they live?
• Who will be their potential buyers?
• Who are their competitors – their strategy and area of business leisure?
• How many tourist ones want to cater?
• What price will the clients accept?
• What facilities are available and required?
• What are the constraints viz., license, permission, finance, restrictions, taxes, and others?

Once we know the basic components of the package tour, distribution channels, market conditions, constraints in the tourism market, we can develop the marketing strategy. It enables the smooth functioning of the agency and also offers a clear picture of the tour programme. Practically, market research is conducted by the private tour companies/ private tourism enterprises in order to penetrate the market.

2. Itinerary Preparation

By itinerary one means the designing of a programme which one wants to sell and it includes destinations, stopping points, number of days and the travel services that are to be included in the programme. Whether it is a lean season or an offseason, escorted or not escorted, consumer-oriented or readymade tour programme, the itinerary is prepared to identify the origin, destinations, stopping points, accommodations, sightseeing and other travel services on travelers’ trip.

3. Handling Agency or Destination Company

The appointment of handling agency not only ensure excellent travel services to the tourist but also make the operation smooth and profitable. It is a matter of great significance as the success of travel business largely depends upon the clients are actually taken care of during the tour.

It is a positive match between the promised services and tourist’s actual experiences or feelings. Thus, the tour operator should consider the experience of the handling travel agency in the business, the area of operation, reputation, credibility, professional staff, credit facilities and the competitive price in appointing a handling agency.

4. Negotiation

It is another important management decision area in tour designing and planning. Once the decision has been made regarding the destination’s concerning their date, duration and number of clients to be carried during the trip, the tour management starts negotiations with the principals’ suppliers for a normal contract.

Negotiation means talk between the travel companies and the principal suppliers for the terms, conditions, and prices of the components of a tour package. When both parties are satisfied, it leads to a formal or informal contract between them. The tour company negotiates with the following tour vendors/suppliers:

• Accommodation
• Transport Operations- Rail and Road
• Ground Operators
• Cruise Companies
• Car Rental Companies
• The overseas representatives
• Ancillary Service Organizations

5. Coasting and Pricing a Package Tour

The cost of a package tour encompasses the air ticket, the hotel room, car rental, entertainment charges, administrative costs, promotional costs, and other travel services. The confidential tariff helps the travel company in preparing the cost sheet which will enable the concern to determine its price strategy.

Tour pricing is a big factor in the success of the company’s tour programme. The price of a package tour is, whether it is an escorted, independent or hosted the tour, often lower than the combined costs of the same components purchased separately from the principals. However, the purchase price of a travel product is based on three factors: Cost, competition, and demand.

Every tour package sold by a vendor has a quantifiable cost. To produce profit the price paid by the tourists must be greater than the agency’s cost.

6. Tour Brochure

The tour package is an intangible product which has to be purchased by the tourists/clients without inspection and sometimes even without adequate knowledge. In these circumstances, the brochure becomes the principal instrument to perform the major tasks to inform the clients about the products and to pursue them to purchase it.

Designing, printing, and distributions of tour brochures require necessary skills and knowledge about the components of the tour package. Basically, in the era of specialization and intense competition, tour brochure creates awareness and provides the description of the holiday programme.

Thus, tour management should consider various pros and cons while preparing a tour brochure. A brochure should contain the following information:

• Name of the Travel Company
• Means of transport
• Details about destinations
• Accommodation, types, location, meals
• Name of the overseas representative
• Duration of each tour
• Booking, reservation and cancellation conditions
• Details of other services – insurance, currency, entertainmentTravel documents required
• Details of price

7. Development of Reservation System

The next step in tour formulation process is reservation system. The agency management in order to put a package into operation must develop and implement a scientific reservation system. The system depends on whether the reservation is to be handled manually or with a computer working on the distribution method.

Whatever method the agency may adopt, the agency management should always keep in mind the sole objective of the reservation system.

8. Marketing of Tour Package

Once a tour package is ready, travel agency management has to make a careful decision regarding promotion and marketing of the particular package tour. The basic objective of management is to make a tour package widely known to make it more and more attractive.

To achieve these objectives, the management must consider the budget available, promotion mix, potential market, easiest and most effective media, campaigning through the international, regional or the public/private sector etc.

The promotion of a package tour means increasing its sales potential and creating an awareness of the existing and potential markets. The following methods are commonly used to promote package tours:

• Middlemen – Retail Travel Agents, GSA, consolidators
• Familiarization tours
• Building Brand Loyalty
• Encouraging Potential Buyers
• Competitive Market

9. Tour Handling/Actual Tour Operation

After the successful marketing and achieving target sales, the next and final step in the process of tour designing is tour handling. It means an actual operation of tours, which generally includes administrative work and passenger handling like maintaining reservations, handling deposits, sending advice to ground operators, arranging travel representation, analyzing the feedback received from clients/escorts/ground operator and so on.

All this is not an easy task. At every stage, one has to face different types of queries and problems due to lack of coordination and communication.

Significances of Tour Package

Tour package is beneficial to travel companies, travelers, destinations and other organizations which are directly or indirectly involved in the tourism business. The main benefits are:

• Increase the seasonality of a destination cost/price
• Earn foreign currency
• Better quality of products professional services
• Wide-variety of the tour package
• Provide bulk business to organizers

Oh My Janey

Package Tours Versus Independent Travel: Which One is For You?

March 22, 2018

Over the past few years, I get a lot of questions on whether I prefer package tours over DIY traveling. It’s a difficult question to answer, because the answer is always a case to case basis.

Though most of the traveling I share on my blog are independent traveling, my first overseas travel was actually one organized by my parents when I was just 17 years old. Everything was arranged by a travel agency, and my sister and I just had to join tour groups to make sure we wouldn’t get lost in Hong Kong. It was convenient, and for a minor, it was the safest mode of touring.

Since I started organizing my own trip, booking my own flights, and making my own hotel reservations, I enjoyed planning my travels so much that I usually plan everything myself without joining any tours.

But still, I am always careful when answering this question because there are different types of travelers. There are no ideal traveler and no wrong way to travel. There’s just finding what suits your needs and wants as a tourist, or a traveler, if you’d prefer being referred to that way.

So, what really is it? What’s the better way to travel?

Consider getting a package tour

If you’re traveling with your parents and kids..

It’s hard to move around in large groups, especially if some members of your group aren’t into walking. If you’re with your parents or grandparents, joining a tour, private or not, is the best way to ensure that they will enjoy it. Kids have all the energy to explore a city, but if you don’t want any of your younger cousins missing by the end of Day 2, maybe joining a tour is necessary.

If it can make traveling more convenient for you.

It’s understandable if you want your travels to be as comfortable as possible and that can only be achieved through booking the best hotels and choosing package tours over independent travel. When visiting local areas, you’ll probably find it difficult to commute due to the numerous jeepney and tricycle transfers. It’s definitely more convenient if everything has already been laid out instead of worrying how to get from point A to point B once you get there.

Just imagine ignoring all the packages you can easily book beforehand and instead, opting to book a hotel yourself, arranging for the transportation, plotting the itinerary, and only looking for island hopping tours once you get there. You might end up spending more than necessary, not just on money but on time, too. Be it in Puerto Princesa, Coron, or El Nido, there are tons of Palawan packages to choose from , and it’s only up to you to choose one that best suits you.

If it’s cheaper to join a group tour than doing your itinerary.

There are times when the price of a group tour is overwhelming, but when you compute for your overall budget, you’ll be surprised how it can still be cheaper. Groups and agencies organizing tours often get discounts that’s why they can still offer affordable travel packages.

If you want to see more attractions at a shorter period of time.

One of the complaints about package tours is how it tries to fit in too many attractions in a day. But if you’re visiting a place for the first time without knowing when you’ll be back, it’s only understandable that you want see as many sights as you possibly can. Package tours make sure that the best spots are covered. It also follows a schedule so you can visit everything before sunset. I definitely didn’t regret joining a group tour when I went to Baler , because it allowed my friends and I to save more and see everything.

If you’re traveling solo.

I haven’t tried traveling solo, and I plan to. The thought alone is scary, but joining organized tours make it less so since I’ll be joining other travelers and the trip will be organized by experienced folks. Besides, traveling becomes less expensive if you split the bill with someone, but you won’t have anyone when you travel alone. Joining tours can help you cut down the cost.

Some would argue that package tours are not flexible. However, some travel agencies actually allow you to customize the travel package. Also, I believe most package tours allow free time, especially at night, so you can still squeeze in whatever you want to do that the package cannot cover.

Hunting down filming locations in Taipei, Taiwan

Go for independent travel

If you care more about the journey than the destination..

When DIY traveling, you’ll spend a lot of time figuring out how to get from one place to another. You’ll also need to strictly follow bus schedules and arrange for a private transportation when a public one isn’t possible wherever you’re going. There’s a chance that you’ll spend more time on the road, asking for directions and looking at the map, than on the actual destination itself. But if you do not mind getting lost and you enjoy the thrill of finding what you’re looking for, then DIY travel might really be for you.

If you don’t care for touristy places.

Most package tours focus on the most popular attractions of a place, but if you’d rather visit hole-in-the-wall restaurants or obscure galleries, then you can try creating your own itinerary. The top attractions are at the top for a reason, and I try to visit those that really peak my interest. But there are times when my priority isn’t included in the list of most recommended spots and joining a package tour would only make me miss out on what I’d rather do.

If you want to spend more time at a certain place.

Independent traveling allows you to focus your time on the places you want to visit the most. Want to spend an entire afternoon just sitting at an outdoor cafe and soaking in the culture? Want to waste an entire day just walking around with no specific place in mind and not restricted by time? Then that’s possible, too. DIY travels allow you more freedom to whatever you want, even hunting down filming locations of your favorite dramas and movies, which I often do.

If you don’t like traveling in groups.

Private travel tours can be pretty pricey, and majority of the travel packages lump you in with other tourists. You’ll be traveling in groups anywhere you go, and if this doesn’t fly with you, then it’s best to skip package tours.

If you enjoy planning everything yourself.

Organizing your own travel can be stressful and frustrating, especially when you cannot find everything you need online. However, it also has its own perks. I personally enjoy it, and I also like sharing the travel itineraries in the blog. However, I have to admit that it can be pretty challenging if you do it locally, due to the scarcity of information sometimes. But there are tons of guides you can find online, and there are also other travelers and bloggers willing to help you.

Independent traveling can be stressful, especially when you have to do everything by yourself. But it’s exciting and you have more liberty to do the things you actually want.

Final Verdict

It all depends on what you want to accomplish when you travel. Be it DIY traveling or joining group tours, traveling always has something in store for you that no itinerary can ever cover. Before traveling, weigh your options first, study your expenses, and consider the people you’re traveling with. All of these matter when you plan your travels.

I hope this post helped you decide whether to approach a travel agency or plan your trip yourself.

So, which one is your preferred mode of traveling? Sound off in the comment section below. I would love to hear your stories.

Pretending to be lost in Taejongdae, Busan

April 11, 2018 at 1:51 AM

This has always been an interesting. Personally, I prefer joining private tours when travelling in the Philippines and going DIY when it’s an international trip! Haha.

xx, Richel V. | Richel Goes Places

April 11, 2018 at 10:04 AM

Oh, same! 🙂 It’s so much easier and cheaper to join private tours locally. 😀

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• Cambridge Dictionary +Plus

Meaning of package tour in English

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• air corridor
• amenity kit
• caravanning
• high season
• phrase book
• post-holiday
• put something up
• ranger station
• tourist trap
• trailer park

package tour | Business English

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a toy made from cloth and filled with a soft material so that it is pleasant to hold, often in the form of an animal

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The Pros And Cons Of Package Tours: What Solo Travelers Should Know

If you’re wavering between taking an organized tour or going solo on your next trip, read these pros and cons before you make up your mind. There are strong arguments on both sides of the fence. 

As an independent traveler I have tended to  steer clear of organized tours  – think early departures, delayed by Susie’s last-minute packing (not to mention the tiny bottles she swiped from the plane and has been sipping since Sunday)…

No thanks. I’d rather go it alone or with a chosen travel partner or two. But surely there are both pros and cons of package tours?

I was recently invited on an organized tour. I said No because of a scheduling conflict but in truth, I was relieved. The thought of cramming myself into a bus with a bunch of people I didn’t know was scary.

But  it got me thinking : Why the reticence? Have I been shortchanging guided travel tours? After all, how can I judge something I don’t know? 

So I decided to investigate. I read what I could, and I talked to women who love tours and women who dislike them intensely.

Here’s what I found out about the pros and cons of package tours. And it surprised me.

Discovery #1: There are definite advantages to tour packages

Many traveling women seem to enjoy organized tours so I asked a few of them why – and they had good reasons.

• You don’t have to lift a finger. Someone else will do your homework for you – booking the hotels, restaurants, transport from the airport and between cities, everything but the tips.  You’ve just got to show up .
• Everything is planned  (even predictable). You’ll have a schedule and an itinerary, which means you’ll be able to plan around it, in case you want to try a famous restaurant, or see some friends, for example.
• Your questions will be answered. Most package holidays have  local guides  so you’ll be able to ask about this unusual headdress or that traditional building. Often, guides are experts in a particular aspect of your destination, and may know out-of-the-way gems you would never have found on your own.
• You’ll have  instant travel companions , in case you’re not in the mood or ready to be on your own (although reading through  this section  on solo travel might help)
• Someone else will take care of the ‘ language issue ‘ for you, if you’re not a linguist.
• Things can often be cheaper : travel agencies and outfitters buy in bulk and can pass on those savings to their customers.
• You’ll see more, and that’s a fact, especially  if your time is limited . With things organized for you, you won’t waste valuable travel time searching for a room, getting lost, or figuring out public transport.
• There’s  safety in numbers , and even if you do run into a little trouble, your guide will make sure you’re well taken care of. In some parts of the world, being a female traveler means you’ll hardly get to see anything because the culture won’t allow it; a tour will help you get around some of these constraints.
• No decisions . If you have a high-powered or stressful job, you might welcome having everything taken care of for you for a few days or weeks.
• In some countries, tour packages might be  the only way  to get to certain places, short of chartering a boat or other unlikely event.
• And if you’re a novice traveler, a group may make you  feel less anxious  about stepping out into a new country.

Discovery #2: The disadvantages of packaged tours are equally obvious

It’s not all rosy and plenty can go wrong when you’re in a group, rubbing elbows with people you’ve never seen before.

• You may have to  spend time with people  you don’t like. Or who don’t like you. What if you have nothing in common – they drink late into the night and you’re out jogging by 6am even on holiday? 
• Your punctualities may not match. What if they delay the bus with their shopping while you’re  excruciatingly on time , seated five minutes ahead of schedule?
• You can  feel a bit rushed  as you’re whisked from A to B to C with no time to sit and soak in a locale. This type of travel can become superficial.
• If the tour is too large  your visiting time will be reduced  by things like gathering everyone on time, getting on the bus, getting off the bus…
• Your  tour guide  might not be as good as she should be – you might have been better off just reading your guidebook.
• You’re  stuck with your itinerary . You might want to go to a museum at the time a major walk is scheduled but there may be little flexibility built into the schedule.
• You’re also stuck (and this is a big one for me) with the food. Although some groups will cater to your  food choices , alternatives might not be satisfactory. And after the fifth ‘typical’ dish you might be desperately wishing for a pizza!
• You might feel cheated if there are  activities you don’t enjoy , a bit like I feel when I eat a meal with friends who drink (I don’t) and the bill is split equally.
• You may be visiting  too many shops  and not enough real sights.
• Tours can be tiring ; sometimes agencies cram them with every possible destination to make sure you get your money’s worth.
• Your chances of meeting local people are small, as you’ll be gazing at them through a window or  rushing past  them to keep up with the guide.

Discovery #3: The pros and cons of package tours boil down to one thing

It’s this: how well you choose your tour operator.

It’s the most boring piece of advice but… do your homework! If you have a recommendation from friends, that’s great, you’ll be choosing with your eyes open. But if you have no references, your research will be that much more important. Pick a tour and Search online for any reviews or comments about that tour.

Consider these factors before you book:

• Size : the smaller the group the more intimate and personal the experience – but the larger the group the bigger the party.
• Length of tour : how long can you handle being with a group? (For me, that’s about six hours but I have friends who go on tours for weeks)
• Accommodation : quality, and variety – are you in a boring chain hotel every night, or do you alternate between B&B, unusual treehouse hotels and camps, for example?
• Food  flexibility, especially important if you have allergies or food constraints.
• Cost : of course, you want the most for your investment. But are there any hidden costs? Airport taxes? Extra meals? How much are tips? Drinks? Optional excursions? And the  dreaded single supplement ? This is where you need to read the fine print.
• Type of tour : is it a more adventurous tour, or sedentary, or a mixture?
• Refund policy : do you get anything back if you cancel? Under what conditions?
• Travel time : if you spend all day driving and two hours at a destination, that’s not travel – it’s transport.
• Transportation : how do you get from A to B? If you suffer from motion sickness (as I do) you won’t want to spend hour upon hour on a bus.
• Guides : their training, and whether additional local guides – who may know the destination even more intimately – are included. 
• Activities : are you just seeing or using more of your senses? Going to a performance? Taking a cooking class? Visiting a perfume factory? 
• Physical activities : check this, because if you’re a slow walker you won’t appreciate a highly physical tour, and vice-versa.
• Compatibility : what is the average age? If it’s a 20-year-old party crowd and you’re 60, a week or two might be way too long. What are typical clients like? If they match your demographic, you’ll have a better chance at compatibility.
• Shopping : make sure your tour isn’t a disguised shopping expedition. You don’t need to stop at shops with a tour: that’s what ‘free time’ is for.
• Speaking of which, make sure there is  plenty of free time  built into your tour or you’ll be exhausted by the end of the day, not to mention irritable and in a mood to break the bus.
• What is included : there’s no point in saving money by going for the cheapest tour only to find out no meals are included. Compare like with like.
• The WOW factor , that little extra you can’t define but you’ll feel it when you find the right agency with the right tour.

Discovery #4: There are different types of tour – and not all involve a bus

Five tour types are, in my opinion, the exception. I could easily take them and not experience most of the disadvantages of package tours.

These include food walking tours, private organised tours, day tours, solo or single tours and all-women tours.

1. My all-time favorite is the culinary walking tour, which should come as no surprise.

In a food tour a small group of people, usually under a dozen, walk from place to place meeting local chefs, discovering new foods and learning local history. The group dynamic can be fun as tastes and scents are shared and the guide, often a local expert, shares his or her love for the neighborhood and its culinary delights.

On a visit to New York I tried the Tenement Museum’s  Lower East Side Food Tour  and traveled from Italy to China to Russia and beyond in a few delicious bites. More recently, in Paris, I was invited on not one but TWO Devour food tours – a breakfast tour (involving chocolate!) and an evening sunset tour, both of which reminded me of just how much I enjoyed being steered from plate to place across a beautiful city.

This kind of tour is fun and I never felt that ‘herding’ feeling so common when a group of people who don’t know one another travel together in crammed conditions.

On the contrary, we were all brought together by our love of food and that is often part of the secret of touring: if you have a passion, it’s fun to share it with others. But if you’re just there for the ride, your and others’ boredom will likely show through.

Traveling to other cities? You’ll really enjoy the  Copenhagen Food Tour , the  Porto Food Tour  and the  Florence Walking Food Tour .

2. I also like the private organized tour – pricier than a package tour but far more flexible.

My first experience was a ten-day road trip through Albania, organized by  Albaniantrip  and its hugely resourceful manager Elton Caushi. For ten days a young public health professional, Genci Dervishi, drove me around his country. He was well-versed in recent history, with a strong understanding of its developmental challenges, exactly what I was looking for (and of course I made it to all the traditional tourist sites as well). Albanian isn’t an easy language to understand and having Genci along to translate made all the difference in being able to meet local people.

The second private guided tour I tried was a one-week 2000km loop around South Morocco, carefully built by  Desert Majesty Tours  and its charming manager, Felicity Greenlaw-Weber. In this case, I had not one but two escorts, a driver and a guide, Mohammed and Mohammed, whom I eventually dubbed 1 and 2 after a couple of days of jovial confusion. We divided our time between a 4WD and regular camel rides and explored mountains and deserts.

The vehicle and flexibility made it possible for us to travel on rough tracks across desert areas and into the interior, where we met modern-day nomads who live in caves rather than tents. The language issue was taken care of by our guide and I felt perfectly safe spending the night in several desert camps. 

The third was  a week in Sri Lanka , when I toured the country prior to spending  three weeks at an ayurvedic clinic . I found the driver almost accidentally but this was one of those cases in which the agency got it all wrong – but the driver salvaged the situation. The agency was a fly-by-night outfit located in the Colombo train station with a very official-looking “I” logo, like the ones used by Information or Tourism Offices worldwide. The tour was utterly cookie-cutter and predictable but my driver so flexible he understood immediately what I was looking for and made all the necessary arrangements.

The fourth was in Kyrgyzstan , with  CBT , or Community Based Tourism. CBT is a collection of local service providers who provide overnight stays, meals, courses or glimpses into the culture. A good portion of the money you pay goes to them directly, in other words, straight into the local economy.

I have nothing but praise for them, especially given the difficult terrain and language difficulties. They offered me a menu of activities based on my preferences – culture, food, big huge vistas… and I chose various I was keen to try (like building a yurt, for example).

This type of private or customized travel isn’t reserved for the wealthy, by the way, particularly in countries a little further off the tourist path. It does offer a level of freedom and flexibility I wouldn’t have found in a traditional group tour. In most countries, I was able to hire my private tour for around US$100-150 per day, everything included.

3. The day tour is a great alternative to mammoth group tours.

I’m often in a city for  a day or two at most , with little time to orient myself. If I know long enough ahead of time, I can do plenty of research and get myself organized to see as much as possible. But sometimes, that’s simply not possible and that’s when I decide a tour for a day or even half a day would at least show me the highlights. Here are the tour operators I use, depending on which tour is the best for my needs:

• My first stop is Viator , which probably has the broadest selection of half-day and full-day tours
• I also use  Get Your Guide , which is great for city day passes and hop-on hop-off bus tickets
• If I’m with someone (it sometimes happens!) I’ll use Tours by Locals , because I like having a knowledgeable guide all to myself! 

You may have even less time, but you can still get to see the sights. If you happen to be connecting to another flight with a long layover,  these airports offer city tours  which are organized to get you back to the airport on time for your flight.

4. The solo tour or singles tour is also an alternative.

Now I’m moving out of my comfort zone because I’ve never tried one of these, but I’m told that while they are organized, they tend to be different from the larger package tours. 

Solo or singles tours tend to be smaller, often limited to a dozen or so people, which makes them far more flexible than massive groups. Also, since they’re made up of individual travelers, chances are you’ll find greater compatibility since everyone is in the same situation. I will definitely have to try one of these so I can talk about it in greater depth.

5. Finally, the all-women tours.

Again, this isn’t something I’ve ever tried but like the solo tour, these groups tend to be smaller and compatibility far greater, which eliminates some of the bigger problems you face on organized tours.

Discovery #5: Never judge a book by its cover

For years I railed against organized tours without knowing enough about them and just agreeing with what I heard. I’ve changed my mind – at least on certain types of tours, like walking or private or small group tours. I still  slow travel  or  solo travel , but I’m no longer dead-set against group travel – if it’s small.

In fact next time someone asks, I won’t ‘automatically’ be busy and if I’m free I’ll give it a try. 

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What Does a Tour Package Include? Essential Components Explained

When planning a trip, it can be challenging to organize all the necessary details, including accommodation, transportation, meals, and activities. This is where a tour package comes in handy, as it includes all these elements in one convenient package. This blog post will explain what a tour package entails, the available types, and how to choose the right one.

Table of Contents

What does a tour package include?

• Accommodation: A tour package typically includes accommodation in a hotel, resort, or other lodging facilities. The type of accommodation provided will depend on the tour package you select.
• Transportation: Transportation is another essential component of a tour package. It can include flights, trains, buses, and even private cars or vans. The mode of transportation provided will depend on the tour package you select.
• Meals: Most tour packages include breakfast only to all-inclusive dining. The number and type of meals provided will depend on the tour package you select.
• Activities: A tour package may include various activities such as sightseeing, cultural experiences, adventure sports, or shopping. The type and number of activities included will depend on your selected tour package.
• Itinerary: A tour package will provide you with a detailed itinerary of your trip, including the date, time, and location of each activity, as well as any free time you may have.

Types of tour packages

• Inclusive tour package: This type of tour package includes accommodation, transportation, meals, and activities, all for a fixed price.
• All-inclusive travel package: This tour package is similar to the inclusive package, but it also includes drinks, tips, and other extras.
• Budget tour package: This package is designed for those who want to travel on a tight budget. It usually includes basic accommodation and transportation but limited activities and meals.
• Customized tour package: This package allows you to choose the specific activities and accommodations you want, giving you more control over your travel experience.
• Luxury tour package: This tour package provides premium accommodation, transportation, meals, and activities for a higher price.

How to choose the right tour package?

Choosing the right tour package can be a daunting task, but here are some tips to help you make the best decision:

• Budget: Determine your budget and look for tour packages that fit within it. Remember that a higher price may mean better quality, but finding a balance between affordability and quality is essential.
• Destination: Consider the destination you want to visit and choose a tour package that offers the best experience in that location. Look for packages that include the attractions you want to see and the activities you want to do.
• Travel Style: Think about your travel style and the type of experience you want. Do you prefer a leisurely vacation or an adventure-packed trip? Make sure to choose a tour package that aligns with your travel style.
• Reviews and recommendations: Read reviews and ask for recommendations from friends or family who have traveled with a tour package before. This can give you insight into the tour package’s quality and other travelers’ experiences.

In conclusion, choosing a tour package can make travel planning more manageable and less stressful. With various tour packages available, selecting the one that aligns with your budget, destination, travel style, and preferences is crucial. When selecting a tour package, read reviews and consider recommendations from other travelers. By following these tips, you can have a stress-free and enjoyable travel experience.

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Packaged tours or DIY travel: which is better?

Any trip involves a significant amount of time and preparation to plan. When deciding to go on a trip and before you plan your itinerary , you have a choice between booking a packaged tour (also known as organised or guided tours) or do-it-yourself (DIY) travel. DIY travel planning involves planning your trip from scratch , including planning and scheduling all your flights, accommodation, travel insurance, transfers, and activities yourself using the internet.

Both types of travels will give you a pleasant trip. Each type has its benefits and costs. Let’s see what the considerations are when choosing between DIY travel and packaged tours.

Packaged tours

Packed tours have several costs and benefits.

Benefits of packaged tours

The benefits of organised tours include the following:

Convenience factors

• Guided tours are perfect for new travellers who feel overwhelmed at the prospect of planning their trips .
• With a packaged tour, you don’t have to worry about any planning as the tour operator does everything for you. This is convenient if you dislike researching and doing comparisons between different websites.
• For travellers who don’t want to travel alone, a packaged tour can provide security and be a great way to meet new friends.
• There is safety in numbers.
• The transportation provided on packaged tours is very comfortable and convenient. Coach travel is usually on luxury buses with free wi-fi with enough legroom.
• You never have to wait for public transport to move between sights and activities.
• Tour operators offer guided tours to suit different budgets and styles, from basic backpacker-style tours to all-inclusive guided tours.
• Some countries require the booking of an organised tour before considering your visa application.
• Many packaged tours also include priority access to signature experiences to save time and stay on schedule.
• Packaged tours may also include destinations off-the-beaten-path that may be difficult to get to for DIY travellers.
• The accommodation on packaged tours is comfortable and the tour operator has tested the hotels and bed and breakfasts.
• As long as you stick to your tour group, you will not easily get lost. And if you do, the tour guide will look for you.
• Packaged tours are easier to arrange than DIY group travel.
• Depending on the type of packaged tour, you can have more peace of mind as you never have to worry about flight delays or other surprises. With a packaged tour, that includes flights, your tour operator will take care of any consequences because of unexpected circumstances.

Local expertise

• Most tour guides on packaged tours are locals and have expert knowledge on places to visit, where to eat, etc. They can also give you insight into the culture of the people in your destination. This could be a way to discover hidden gems, which can give you a more in-depth experience of your destination.
• A packaged tour can make visiting a country where you may find communication difficult much easier since the tour guides can speak the local language.

Budgeting benefits

• Usually, packaged tours include accommodation and transfers. Packaged tours may make budgeting for an upcoming trip easier since it will include most items, leaving little extra details for which to budget.
• Signature experiences could cost less on a packaged tour since the tour operators have built relationships with suppliers and “buy in bulk”.
• Once you have paid for your packaged tour, you don’t have to worry about exchange rate fluctuations requiring you to pay more for your hotel or sightseeing.

Costs of packaged tours

Packaged tours also have some costs, including the following:

Lack of depth & flexibility

• Some packaged tours cover many of the major sights and activities but are fast-paced with little time at each stop. Not only does this mean you may not see everything you wanted, but it can be exhausting.
• With a packaged tour you may end up seeing sights you had no interest in or not seeing something you wanted to see.
• Sometimes tour groups are large, and you may not get an opportunity to ask the travel guide all the questions you want. Large tour groups can also waste precious sightseeing time if it takes longer to get the tour group together before leaving a stop.
• These tours allow no flexibility for sightseeing options. With these tours, you will see the main sights in a city only. If you see something from the bus or near a sight your group has stopped at, you cannot go off to explore further.
• Packaged tours can lead to frustration. Some people do sightseeing and browsing museums faster and then have to wait for the rest of the group.
• Other travellers are not too fond of large tour groups since they can take over an entire activity or sight leaving little space for DIY travellers to explore.

Budgeting concerns

• Make sure what items are included and excluded from a tour package as it is not always clear. You need to know what you will have to budget for outside of the price of the tour package.
• Not all packaged tour have guaranteed departures. You may pay for your chosen tour only to find out that due to limited bookings it has been cancelled.

Possible packaged tour options

These companies are excellent for packaged tours:

• Intrepid Tours
• Encounters Travel
• G Adventures

You can also make use of a website that aggregates packaged tours from different tour operators. Here you can choose from:

• Love Holidays

DIY travel planning

As with the packaged tours, DIY travel planning has many costs and benefits.

DIY travel planning benefits

I love DIY travel. For me, it has significant benefits, which include:

Flexibility

• You have complete control over your itinerary and can spend as much or as little time as you want at each sight. If you wake up one morning and feel exhausted, you can decide to have a quiet day instead.
• Being in control of your travels, you may discover hidden gems and local favourites instead of just focusing on the best-known sights.
• You don’t have to wait for a tour group to finish sightseeing at a stop before moving on.
• Introverts may prefer DIY travel as they can control the level of socialisation they can endure on a trip.
• DIY travel gives you the ability to find cheaper deals, but this may take time and effort.

Local Experiences

• Since you don’t have a tour guide to rely on, you are sometimes forced to reach out to locals, which can be an eye-opening experience.
• It is easier to get lost on your own, but that also gives you the opportunity to get to know a place better!

Best benefit

• Planning everything yourself can be an empowering and exciting experience. Planning a trip teaches you new skills.

Costs of DIY travel planning

DIY travel has some negative aspects as well:

• It is challenging to plan a trip to multiple destinations as you have to consider so many elements. You have to consider the costs for each element, which requires significant research.
• Planning your trip yourself can take a very long time, especially if you like to explore many options.
• Being responsible for all the aspects of your journey can overwhelm you and be extremely stressful. For many people, this would completely negate the idea of going away to relax.
• You have to depend on yourself when there is a crisis during your trip – there is no tour guide you can turn to for help.
• Waiting for public transport between sights and activities can waste precious time, which can be frustrating.
• DIY group travel may be difficult to coordinate between all the members of the group.

Alternatives to DIY travel planning and packaged tours

There are some alternative options instead of having to just choose between DIY travel and packaged tours.

Shorter packaged tours

• A packaged tour is ideal if you want to have a specific cultural or activity-based tour lasting from half a day to several days. If you like food, a food tour is an excellent example of a speciality tour.
• Consider booking full or half-day tours on your trip instead of a packaged tour that includes a multi-day itinerary.
• Packaged tours that limit the number of participants may be a better option than large group tours.
• Some packaged tours have a fixed itinerary, but also allow free days where tourists get time to explore their destination on their own. This could be a better option if you do want some flexibility to explore a city on your own.

Alternative options

• I firmly believe that everyone should consider free city walking tours. Almost every famous town has free walking tours; volunteers of tourism offer usually manage these tours or you can consider an audio walking tour for a different experience .
• For a more in-depth experience of a destination, consider hiring a guide. This will give you not only more insight into the destination, but the tour guide can provide guidance on other less known sights and activities in the destination and the best places to eat. Hiring a guide gives you complete control over your itinerary.
• Another option you can consider instead of a packaged tour is is to hire a driver and a car. This is ideal if you visit a large country with sights that are far apart. Even with hiring a driver, there is a choice between fixed itineraries vs flexible itineraries where you have more input into what you would like to see and do. If you get a driver that speaks English and knows his country well, you have found a treasure!
• An alternative to a packed day tour is the popular Hop-on-hop-off buses that usually have a circular route that allows you to hop off when you want to spend time a specific stop and hop back on when you are ready to explore further. This is one of my favourite ways to explore a city when I have little time.

The verdict

The best option will depend on the travelling you like. You also need to consider the following factors:

• Legal requirements for visa purposes;
• The duration of your trip;
• The sights you want to see;
• What pace you like to travel at;
• Your budget; and
• Your desired level of structure or flexibility.

Answering these questions will guide you in the direction you should take. If you just want to explore a destination without worrying about any of the arrangements, then a packaged tour is best for you. On the other hand, if you want flexibility and control over your itinerary, then DIY travel is the way to go. If budget is your deciding factor, first find a packaged tour you like and do a rough estimate of how much a DIY trip will cost you. Compare the results and see whether there is a big difference between the two.

Both resulted in pleasant trips…

A friend of mine usually uses packaged tours. She does not like making travel arrangements, especially when visiting multiple countries on a trip. However, she has told me when she is on one of these tours, she always wanted more flexibility regarding sightseeing and exploring lesser-known restaurants and sights. She also wonders whether she could have paid less by making her own arrangements.

My preference is for DIY travel planning with a scattering of shorter organised tours, depending on the destination.

The best way to find out what you like is to try both types of travel and then decide which one you prefer for future trips.

14 thoughts on “Packaged tours or DIY travel: which is better?”

I mostly prefer DIY tools as it lets you explore lesser-known parts of the city, offbeat tours are really great to explore hidden gems.

I agree! I love doing my own travel planning and arrangements!

This would be really handy for easy travel, thank you for sharing!

The pleasure is all mine!

Excellent post! I like the ideas that planning a trip teaches you new skills!

Travel planning is a valuable skill and can help you save tons of money over the long term!

Yes right Packaged tours or DIY travel Both result are in pleasant trips…. Thank you for sharing this blog.

We are all different! Lucky we have options in terms of travelling!

Love this guide of DIY travel. You experience is really amazing and wonderful for me. great reading. Thank you for sharing it.

My pleasure. Glad you found it useful!

• Pingback: Step-by-step DIY itinerary planning | Focused Travels

Really, it is amazing, I love DIY package travelling such a great post for me.

Thank you! Glad you liked the post!

• Pingback: Choosing a tour Destination – Kbig6Adventures

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Home - Blog - How to Make Tour Packages: Your Step-by-Step Guide

How to Make Tour Packages: Your Step-by-Step Guide

David Ciccarelli

January 19, 2024

In this article

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In today’s digital world, mastering how to make tour packages has become fundamental for tour operators seeking to grow their business. Recognizing the shift towards online bookings, offering an array of compelling tour packages enables potential guests to weigh their options effortlessly, seeking out the best experiences that align with their interests and budget. Tour packages that provide convenience and value not only stand out in the crowded market but also pave the way for stronger revenue streams and memorable experiences for your clientele.

Understanding what to include in tour packages can be daunting, but with a systematic approach, you can assemble offers that guests find irresistible. Whether it’s a tranquil getaway or an adventure-packed excursion, the right combination of elements in your tour package can make the decision-making process a breeze for travelers, resulting in satisfied customers and repeat business for you.

How to Make Tour Packages: Crafting Exceptional Experiences

Wondering how to elevate your travel offerings? Maybe you’ve pondered what makes some tour packages stand out in a crowded market. Good news, your quest ends here!

• Online Bookings – Hassle-free, secure reservation at your fingertips.
• Flexible Pricing – Deals that adapt to budgets and seasons .
• Outstanding Support – We’re here for you, every step of the way.

Remember, the ultimate tour experience is just a click away. Ready to transform your travel game?

Identifying Your Tour Package Audience

When forming tour packages, it’s crucial to consider who your offer will attract. Are you targeting:

• Adventure enthusiasts who crave excitement?
• Cultural aficionados in pursuit of enriching experiences?
• Couples on a romantic getaway?
• Individuals seeking the luxury of high-end travel?
• The older demographic preferring relaxed travel?
• Lone voyagers on a quest for solitude?
• Families with young children requiring kid-friendly activities?

Essentials of Tour Packages

When planning your getaway , what features do you expect a tour package to include? A powerful tour offering isn’t just about the destinations; it’s about forging a personal connection, ensuring that you feel the value and the excitement long before the journey begins.

Consider these key elements:

• Age Suitability : Is this adventure tailored for you or your family’s age group?
• Value : Does the pricing reflect the experiences offered, giving you the best bang for your buck?
• Accommodations : What type of lodging is included, if any? Comfort? Luxury?
• Duration : How many days of pure bliss or heart – pounding adventure can you expect?
• Activities & Partners : Are you looking for a single activity or a melange of experiences? Are respected companies involved?
• Tour Type : Are there options for the thrill-seeker, history buff, or family-friendly explorer?

The Importance of a Package Tour

Ever felt like you need a vacation from planning a vacation? Package tours swoop in as the hero, offering the sweet relief of convenience. Imagine simply showing up, with transportation, accommodations , and meals all set. Switch to vacation mode quicker, without the nitty-gritty of travel planning.

Why do travelers adore package tours? Here’s the scoop:

• Time Saver: No more endless searching for hotels or comparing flight prices. More time for you, less for logistics.
• All-Inclusive Experience: From your comfy hotel bed to that sunset cruise, it’s all wrapped up in one neat bundle.
• Increased Value: Worry less about costs adding up. The overall value of a package often outweighs individual bookings.
• Reduced Cancellations: Commit to fun! Secured plans mean you’re less likely to back out last minute.
• Community Vibes: Booking packages that partner with local businesses can inject a feel-good factor into your trip.

Remember, a calculated package deal can translate to significant savings for you while simultaneously lining the pockets of tourism businesses with healthy profits. It’s a win-win in the world of travel. Ready to pack your bags yet?

Key Elements of a Packaged Tour

• Duration & Schedule : Your adventure, lasting from a day trip to extended stays , will have a well-defined timeline.
• Transportation & Accommodation : From flights to coaches, and hotels to unique lodgings, your journey’s comfort and convenience are considered.
• Guided or Self-Explored : Choose between having a knowledgeable guide or discovering the sights at your own pace.
• Included Activities : Adrenaline-pumping sports, tranquil cultural experiences, and exclusive events await.
• Group Size : Whether it’s cozy small groups or larger gatherings, your travel package adapts.
• Equipment & Extras : Necessary gear and potential add-ons enhance your experience without the hassle.
• Insurance Options : Ensure peace of mind with optional travel insurance for those ‘just in case’ moments.

Remember, ongoing offers and discounts can sweeten the deal of your travel package.

Crafting Your Ideal Tour Experience: A Guided Framework

Scouting the tour landscape.

Begin your tour-creating journey by examining the offerings within your industry and locality. To craft a tour that resonates with your target audience, consider:

• The unique aspects of your specific area and expertise.
• How your tour can differentiate itself within the marketplace.

Knowing what your competitors are doing is crucial; ensure your offerings incorporate distinctive elements that elevate your tour above others.

Timing is Everything

Designing a tour requires careful planning around duration and scheduling, knowing the ebb and flow of your business operations. Consider:

• The frequency of departures.
• The feasible duration of the tour for an enjoyable guest experience.

Every aspect of your tour’s timing should contribute to both your guests’ satisfaction and your business’s viability.

Tailoring the Tour Experience

Give your guests autonomy with a map and let them personalize the trip with optional add-ons. The customizations could include:

• Exclusive access to particular attractions.
• Tailored equipment rentals for a seamless adventure.

Empowering guests to tailor their experience can heighten the appeal of your tour package.

Price Point Strategies

Attracting groups through discounted rates could be a wise approach. When setting your prices, consider:

• Pricing structures that work best for your business model.
• Offering incentives for larger group bookings to maximize profitability.

Well-thought-out pricing can be the key to a successful tour package that appeals to a wide audience.

Visual Vividness

Use compelling photos and videos to showcase the allure of your tour packages. Keep in mind:

• Including images that allow potential guests to envision themselves on the tour.
• Highlighting exhilarating moments and picturesque scenery in your promotional material.

Visuals play a pivotal role in captivating your audience and can significantly boost your marketing efforts.

Collaborative Local Alliances

Partnering with other local operators can broaden your package’s appeal. Integrating complimentary activities offers your guests:

• Added convenience.
• A richer, more diverse travel experience.

These alliances not only benefit the guest but can also generate repeat business for your enterprise.

Amplifying Your Tours

Let the unique selling points of your offerings shine in your promotional efforts. Aim to:

• Emphasize the unique experiences only your tour package can provide.
• Convey the value and convenience of opting for a pre-arranged package over separate bookings.

Effective promotion involves highlighting the unique benefits that come with your tour package, contributing to an effortless and memorable vacation for your guests.

Remember, as a tour operator, you have the power to shape extraordinary travel memories. Each step you take to refine your tour package bolsters your guests’ experience, ensuring that each adventure is not just a trip but a story worth telling.

Finding Strategic Partners to Expand Your Tour Offerings

Looking to broaden the scope of your tour packages? Consider joining forces with local accommodations, top-notch restaurants, and other experience providers who align with your business ethos. Let’s say you run a travel agency and want to offer an all-encompassing experience – imagine pairing your thrilling city tours with a cozy bed-and-breakfast and the finest dining in town.

• Travel Agents : Tap into their network and offer your packages to a wider audience.
• Online Travel Agents (OTAs) : Increase your digital footprint and customer reach.
• Local Businesses : Collaborate for cross-promotion; think hotels offering your tour brochures in their lobbies.
• Wholesalers : They can package your tours with other services for a greater value proposition.

Final Thoughts

Crafting tour packages that resonate with travelers.

If you’re keen on curating tour packages that truly resonate with what travelers desire, consider your approach to content marketing . What makes your offerings gleam against a backdrop of options? It’s about more than presenting tours; it’s about narrating an experience that aligns with your audience’s travel fantasies.

Promotion must-haves :

• Regular website updates with engaging content
• Strategic marketing tools & campaigns
• SEO optimization to appear on Google search results

Sales Boosters :

• An easy-to-navigate booking system
• Package variations to encourage repeat bookings

Discover Versatile Reservation Tools

Ever found yourself swamped with managing bookings and wish there was a simpler way? Meet today’s top-tier online booking systems that are winning over businesses with their ease of use and seamless integration capabilities.

• Instant Efficiency : With a click, manage your reservations.
• Streamlined Services : Simplifies your booking process, effortlessly.
• Flexible Features : Adapts to your unique business needs.

Statistics show that businesses utilizing advanced reservation systems see a significant increase in bookings , often by as much as 20%.

Essential Components for a Captivating Tour Itinerary

Key items to include in your tour itinerary.

To capture the interest of travelers, your tour itinerary should be comprehensive and engaging. Essential elements include:

• Compelling Descriptions : Paint a vivid picture of the destinations to stir excitement.
• Varied Activities : Cater to different interests with a mix of cultural, recreational, and relaxing options.
• Clear Timelines : Provide a well-structured timeline that outlines the daily schedule while allowing for some flexibility.
• Logistical Details : Include information on transportation, meeting points, and accommodation options.

Tactics for Effective Marketing of Travel Packages

Harness various marketing strategies to attract travelers:

• Leverage Social Proof : Display reviews and testimonials as evidence of satisfied customers.
• Engage Through Storytelling : Share stories and experiences from past travelers to build a connection.
• Utilize Visual Content : High-quality images and videos can be powerful in showcasing your packages.

Innovative Promotion Methods for Tour Packages

To reach a broader audience, get creative with your promotions:

• Collaborations : Team up with influencers or local businesses to tap into new networks.
• Exclusive Events : Host webinars or live Q&A sessions to engage potential customers.
• Contests and Giveaways : Encourage sharing and participation for increased visibility.

Constructing a Package Tour That Captivates

When designing your package tour, consider the following steps:

• Define Your Audience : Know who you are designing the tour for.
• Curate Unique Experiences : Differentiate your offering with unique experiences.
• Price Competitively : Position your pricing based on the value offered.
• Pay Attention to Detail : Every component, from meals to activity duration, adds value.

Building Stand-Out Packages in the Travel Market

Travel agents aiming to excel in the market should focus on:

• Personalization : Offer customizable options so clients can tailor their experience.
• Diverse Offerings : Appeal to various niches like adventure travel or eco-tourism.
• Professional Touch : Present the packages in a high-quality, informative brochure.

Calculating Tour Package Costs Effectively

When pricing your tour packages, be mindful of:

• All-Inclusive Costs : Consider all expenses from transportation to entry fees.
• Profit Margin : Set a margin that reflects the quality of the experience while remaining competitive.

administrator

David Ciccarelli, is the Founder and CEO of Lake. He is based in Toronto, Canada, and is an expert in management, business administration, strategy, product development, and customer experience. His educational achievements include the Owner President Management Program at Harvard Business School (2019-2022) and the QuantumShift Program at Ivey Business School in 2017, aimed at CEOs of growing businesses.

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• How to Find the Best Discounts on US Tours
• Which Insurance Company Has the Best Claim Settlement Ratio?
• The Best Tours in America for Elderly Travelers
• Types of Tourists: Identifying the Different Types of Travelers
• The Pros and Cons of Package Tours and Independent Travel

Are you trying to decide between package tours and independent travel? Learn about the advantages and disadvantages of each option so you can make an informed decision.

Are you planning a vacation and trying to decide between a package tour and independent travel? Both options have their advantages and disadvantages, so it's important to understand the differences between them before making a decision. A package tour is a vacation package that includes several travel elements such as flights, transfers, accommodation, etc. all bundled together at a discounted price. An independent traveler books each aspect of their trip separately, such as flights, hotels, and transportation.

When it comes to a world tour, there are three main types of tours: organized, independent, and accompanied. An organized tour is one in which you join a group of travelers and follow an itinerary set by the tour operator. An independent tour is when you travel alone and the tour operator only books your hotel. An accompanied tour is when you travel with a companion who helps you plan your trip and provides guidance along the way.

The main advantage of an independent tour is that it allows you to be free-spirited and explore on your own terms. You can decide what to do and where to go without having to follow an itinerary or be part of a group. However, this type of travel can be more expensive than a package tour since you have to book each aspect of your trip separately. A package tour offers the convenience of having everything arranged for you at a discounted price.

You don't have to worry about booking flights or hotels or finding transportation from one place to another. However, this type of travel can be restrictive since you have to follow an itinerary set by the tour operator. In some countries, a combination of independent trips and short organized trips is the best solution for having a tailor-made experience. Whether it's joining a group for a day trip or participating in a 25-day Silk Road tour, guided tours can be a really fun way to travel.

No matter which type of travel you choose, it's important to do your research before booking any trips or tours. Consider your budget, interests, and desired level of freedom when making your decision.

• package tour
• independent tour
• organized tour
• independent traveler
• accompanied tour

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The 8 Best Travel Package Sites for Booking a Cheap Vacation

Sarah Schlichter

Deputy Executive Editor Sarah Schlichter's idea of a perfect trip includes spotting exotic animals, hiking through pristine landscapes, exploring new neighborhoods on foot, and soaking up as much art as she can. She often attempts to recreate recipes from her international travels after she gets home (which has twice resulted in accidental kitchen fires—no humans or animals were harmed).

Sarah joined the SmarterTravel team in 2017 after more than a decade at the helm of IndependentTraveler.com. Sarah's practical travel advice has been featured in dozens of news outlets including the New York Times, the Chicago Tribune, USA Today, Budget Travel, and Peter Greenberg Worldwide Radio. Follow her on Twitter @TravelEditor .

The Handy Item I Always Pack: "A journal. Even years later, reading my notes from a trip can bring back incredibly vivid memories."

Ultimate Bucket List Experience: "Road tripping and hiking through the rugged mountains of Patagonia."

Travel Motto: "'To awaken quite alone in a strange town is one of the pleasantest sensations in the world.'—Freya Stark"

Aisle, Window, or Middle Seat: "Aisle. I get restless on long flights and like to be able to move around without disturbing anyone else."

Email Sarah at [email protected] .

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Booking a flight, hotel, and rental car together doesn’t just save you time—it can often save you money, too. But before you make such a significant purchase, it’s important to find the best travel package sites for booking your vacation.

I tested more than a dozen vacation package sites to see which ones had the lowest prices and best user experience. I discovered that many of the best vacation package websites allow you to book any combination of flight, hotel, and rental car, while others are more limited (flight + hotel is often the default). Fortunately, some sites will let you add a car onto a hotel+flight package, even if a car isn’t listed on the initial booking page.

It’s also important to compare the price of a vacation booked as a bundle to that same trip booked a la carte as separate components. Booking a package isn’t always cheaper, and sometimes you’ll get  better flight options to choose from if you search for your airfare separately. In some searches, I discovered that the flight options included by default with my vacation package had ridiculously long layovers or undesirable departure times (4:30 a.m., anyone?).

The Best Car Rental Booking Sites

Keep a sharp eye out for resort fees; many of the best vacation booking sites don’t count them in their initial per-person price estimate because they’re collected separately by the hotel, but they can drive up the final cost of your trip. Similarly, optional airline baggage fees can also increase your total bill, especially if you book a flight in basic economy, and some vacation package sites don’t disclose these fees as clearly as others.

Finally, it’s important to know that many of the best sites for vacation packages are owned by the same parent company, so you’ll often find similar inventory and prices from one to the next. Knowing which sites are mostly interchangeable can save you some research time.

The Best Travel Package Sites

We put them to the test to compare prices, inclusions, and more. The following are the best websites to book vacations, listed in no particular order. Scroll down for more in-depth analysis of each one.

• Expedia’s sister sites: Travelocity , Orbitz , and CheapTickets

CheapCaribbean.com

Funjet vacations.

This well-known site is one of the best travel package sites for a reason. Expedia offers a full complement of bundle options (flight/hotel, flight/car, hotel/car, and flight/hotel/car) as well as trips to just about every corner of the globe. It’s reliable when it comes to pricing, too: Expedia offered the lowest price in two of my five tests, and was cheaper than average in all but one test booking.

That said, the amount the site said I was saving on a given package didn’t always match up to the actual price difference when I added up the cost of the trip’s individual elements. In one of my test cases, it was actually cheaper to book my flight, hotel, and car separately. So take those supposed savings with a grain of salt (or even better, price out the components separately on your own to be sure you’re getting the best deal).

Expedia has plenty of useful filters to help you find what you need. You can sort hotels by price, distance from a city’s downtown, guest rating, package discount, and property class, while flight options can be filtered by general departure and arrival times (for example, morning vs. evening), airline, whether carry-on bags are included, and more. You can also sort flight options by duration (longest or shortest), price (highest or lowest), departure time (earliest or latest), and arrival time (earliest or latest). There’s also a map view so you can check out the location of each hotel.

Best Feature: The breadth of choice and consistency of pricing make Expedia perhaps the best site for vacation packages. You may not always get the absolute lowest price here, but chances are you’ll pay a fair rate and have plenty of options to choose from.

Check out Expedia

How Far in Advance Should You Book a Vacation Home?

Expedia’s Sister Sites: Travelocity, Orbitz, and CheapTickets

Many travelers don’t realize that Travelocity , Orbitz , and CheapTickets are all owned by Expedia Group, and typically have very similar inventory and pricing to Expedia. Each of these sites has similar layouts and filter options, too. Like Expedia, these three sites offer every possible vacation package combination involving a flight, hotel, and/or rental car.

It was rare for any of these sites to beat out Expedia’s prices in my tests; in general, the rates were identical (especially on Travelocity, where I didn’t find any deviations from Expedia) or a little bit higher. However, Orbitz and CheapTickets did offer slightly cheaper packages on one flight/car itinerary.

Because the pricing is so similar, it’s probably not worth searching all three of these sites in addition to Expedia unless a difference of a few dollars will make or break your travel budget.

Best Feature: Travelocity, Orbitz, and CheapTickets offer a checkbox on their main booking page to specify “I only need accommodations for part of my trip”—a feature that allows user to select a subset of their trip dates and search for travel packages only within that period. This feature is also reflected on Expedia’s search page.

Note: Expedia Group also owns Hotwire , which I didn’t find quite as reliable as the other three in my tests. For one itinerary, a nonstop flight that the other sites offered was not available when booking a Hotwire package (though it was available when booking a separate flight on Hotwire), and the pricing on some searches was a little higher than on the other sites.

Check out Expedia’s sister sites below:

Like Expedia and its partners, Priceline also offers every possible combination of flight, hotel, and rental car. Its search results pages are easy to navigate, with plenty of filter and sort options, plus a map view for hotels. Priceline offers numerous hotel options in popular vacation destinations at every price point.

One quirk to prepare for: Priceline’s flight result page lists departure and return flights together as a pair rather than letting you choose each one separately. This cuts down on the number of screens you have to click through but could mean extra scrolling while you try to find the exact two flights you want. Not all flights that are available when booking airfare separately on Priceline seem to be accessible to those booking a package—so it’s worth checking both.

Priceline was in the middle of the pack as far as pricing was concerned. It won one of my tests but was the most expensive option in two others; overall, it offered cheaper-than-average prices 60 percent of the time. To help you save money, the site offers “Express Deals” for rental cars, an opaque option in which you don’t know which rental car brand you’ll get until after you’ve booked. If you’d rather choose which company you’re renting from, standard car rentals are also available.

Best feature: Once you’ve selected your flight and rental car preferences, the site will keep them the same as you click through alternate hotel possibilities—saving you the hassle of having to select them over and over again.

Check out Priceline

What Happens If You Don’t Turn Your Phone to Airplane Mode?

As its name suggests, CheapCaribbean.com has a more limited scope than other sites on this list, but it’s worth checking if you’re planning a trip to the Caribbean, where package trips such as honeymoons are particularly popular. The site turned up cheaper-than-average prices for both of my Caribbean tests.

CheapCaribbean.com is one of the best vacation websites for all-inclusive packages. Once you’ve entered your trip information, you can also filter your results by “adults only,” “children’s amenities,” and “luxury.” Each hotel-specific page includes a list of active promotions, on-site activities, and the property’s Tripadvisor Traveler Rating.

In some ways CheapCaribbean.com isn’t quite as sophisticated as other travel package sites. There’s no map available to compare locations of the listed hotel options. Also annoying: not being able to group Houston’s two airports into a single search, though you can select “all airports” for New York City and Washington, D.C. But the affordable deals are worth a few snags, as long as you’re only looking for a flight/hotel package—there’s no option to add a car or create any other package combinations, though you can add travel insurance and transfers, at least for the destinations I checked.

Best Feature: The “ Deals of Fortune ,” or bookings where you know the destination but not the exact resort until about a week before the trip. This is a fun feature for value-conscious travelers who aren’t set on a particular island or property.

Check out Cheapcaribbean.com

A popular meta-search site, Kayak saves travelers time by searching many of the best travel package sites with a single click. Unfortunately, you can’t specify which elements of your trip you’d like to bundle; it searches flight + hotel by default. You can add a car later on some of its partner sites, but if you’re looking for a flight/car package, you’ll have to go elsewhere.

Results list the cheapest available packages from sites such as Priceline (Kayak’s sister company), Expedia, and CheapCaribbean.com. There’s a map view available, and the results page shows both air- and hotel-related filters to make it easy to find nonstop flights, free breakfast, or a specific hotel.

I found that the prices listed on Kayak didn’t always match the price on the source site when I clicked over to find the deal—a fairly common problem with meta-search sites. But I also occasionally discovered that I got a different price after clicking from Kayak than I did when searching the same itinerary from the booking site’s home page. For example, a Las Vegas package was $819 per person on Priceline when I clicked over from Kayak, but just $783 when I booked the same package from the Priceline home page. Another test offered the opposite result, with the price being cheaper after clicking from Kayak than it was when booking directly on Priceline. The lesson: Test both options when using a meta-search site.

Best Feature: Being able to search some of the best vacation booking sites in a single place is a major time saver. Though Kayak doesn’t always find you the lowest possible price, it’s a good place to start your search and get an idea of what’s out there.

Check out Kayak

The Essential Caribbean Packing List

The Funjet home page gives you a single package option: flight/hotel. However, you can work around this by adding a rental car on at the end of a flight/hotel or individual flight booking. There are plenty of sort options for your results, including price, hotel name, rating, points of interest, and location.

One annoyance: Similarly to CheapCarribbean.com, there is no option to select “all airports” for certain cities like Houston or Chicago. And Funjet’s prices aren’t the most consistent, ranking as the cheapest in one test and the most expensive in another. Still, the site is worth comparing to others when booking your vacation.

Best Feature: Rather than making you scour the web for coupons, Funjet automatically applies any relevant promo codes to your search.

Note: If you’re headed to the Caribbean, Central or South America, Hawaii, or Mexico, try your search on Funjet’s sister site, Apple Vacations . The destinations it covers are more limited than Funjet’s, but I found that the prices were often a little better. CheapCaribbean.com is also owned by the same parent company, Apple Leisure Group.

Check out Funjet

Book Your Stay With SmarterTravel Hotels

If you’re ready to book your next adventure but don’t want to commit to a prepackaged bundle, you can still save big by booking your hotel stay with SmarterTravel Hotels.

All of the products featured in this story were hand-selected by our travel editors. Some of the links featured in this story are affiliate links, and SmarterTravel may collect a commission (at no cost to you) if you shop through them. As an Amazon Associate, we earn from qualifying purchases.

Follow Sarah Schlichter on Twitter @TravelEditor for more travel tips and inspiration.

You Might Also Like:

We hand-pick everything we recommend and select items through testing and reviews. Some products are sent to us free of charge with no incentive to offer a favorable review. We offer our unbiased opinions and do not accept compensation to review products. All items are in stock and prices are accurate at the time of publication. If you buy something through our links, we may earn a commission.

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What is Tour Cost? Components, Types of Tour Costs

• Post last modified: 19 January 2023
• Reading time: 21 mins read
• Post category: Uncategorized

What is Tour Cost?

Tour cost means the total cost incurred or attributed to a tour product or service. It is the sum total of costs incurred to create or formulate a tour package. Since tour is an assembled product, its costing involves bulk purchase.

Therefore the cost of the tour packages is determined according to the client requirement or company strategy. As the quality of the product /service and the price of that product go side by side, hence in travel trade the cost unit is a package tour because a company sells a large number of packages.

Table of Content

• 0.1 What is Tour Cost?
• 1.1 Research and Development Cost
• 1.2 Travel Cost
• 1.3 Accommodation Cost
• 1.4 Food and Beverage Cost
• 1.5 Sightseeing and Activity Cost
• 1.6 Marketing Cost
• 1.7 Administrative Cost
• 1.8 Miscellaneous Costs
• 2.1 Direct costs
• 2.2 Indirect tour costs
• 2.3 Fixed costs

The identification of cost unit will help to cost manager to separate the cost into smaller sub-divisions attributable to the tourism industry. A tour package is a combination of various tourism services/ goods like transport, accommodation and other facilities en route and at the destination.

However, in reality, it has only two basic components;

• Travel services
• Ground services.

Components of Tour Cost

The cost of a tour package includes:

Research and Development Cost

It is the cost incurred when planning a tour package. It includes the cost of the tour planner, manager and staff of the company who are involved in tour planning. The main activities in the research and planning phase are:

• Study the economic factors influencing the future development of package tours.
• Identification of likely selection of destinations.
• Make an in-depth comparison of alternative destinations.

These phases require in-depth research work and hence this requires a good amount of money. The tour planner, marketing researchers etc have to work rigorously for the tour planning activities. The main activities in the tour development are:

Destination Research

The decision to develop and formulate a new package is a multi-stage process that involves various steps. Normally, the idea for a new product comes either from the tour executive within the company due to a review of the questionnaire completed by the previous tour members or because of the political, social and economic developments in a particular area.

When a tour planner sees that a large number of clients are interested in taking a trip to particular destinations, naturally, those destinations become the nucleus of a new tour concept. Moreover, the forecasting of future development is affected by changing circumstances in the market.

Some of these circumstances are:

• Change in tourist patterns
• Transportation cost
• Accommodation and other cost
• Exchange rate prevailing
• Inflationary conditions
• Competitive environment
• Extent and support from airlines serving the routes
• Support from national / regional tourist office of the destination
• Political stability of the country
• Attribute to and state’s control over mass tourism within the country
• The relation between the host and tourist generating countries

Market Research

Since tour package is a complete tourism product, obviously, before formulating this product, market research should be done and the data to be analyzed and assessed in a systematic manner. Market research provides us the answer to the following questions.

• What is the size of tourism market?
• Who are the existing clients?
• Who will be the potential buyers?
• Who are the competitors’ – their area and strategy?
• What price will the customer accept?
• What facilities are available and required?
• What are the constraints? (License, permission, taxes, finance, restrictions, taxes etc)

Once we know the basic components of a package tour, distribution channels, market conditions, constraints etc., we can develop a marketing strategy. It also enables the smooth functioning of the tour company and also offers a clear picture of the tour programme.

The planning stage also includes the cost of the Familiarization Tour (FAM) and any other costs incurred to develop a new or old package tour. Generally, a tour planner works on several tour packages. The allocation of cost is based on two methods

Both the methods are important. Long-term cost deals with the tour planning and development and the second deals with initial tour development. So for determining research and development costs, the tour management must project this cost at first. Secondly, the company should divide the tour into a minimum of 10 or 12 tours. This figure is added to the total cost of the package sold.

Travel Cost

This cost includes the cost of travel in different modes like air, road, rail, land etc. In other words, it is the total cost incurred for travel from a point of origin to a point of destination through any mode of travel. A commercial air ticket sold on a regularly scheduled flight is a simple pricing procedure. The prices quoted include all the applicable charges.

Tour operators have to worry about airport transfers too. Pricing charter flights is little more complicated. Frequently, modes of transport are combined or used sequentially to achieve the objectives of the tour.

For example, there are fly/drive tours that use a combination of aeroplanes and rental cars. Some tours offer fly/cruise packages, wherein the travellers fly to a port of embarkation and then board a cruise ship for most of the tour.

Other commonly identified types of tours feature the name of the dominant mode of transport. For example, a rail tour uses train as the mode of transportation. Perhaps the most widely recognized form of touring is motor coach tour, which as the name implies, utilizes buses or motor coaches to move the participants from destination to destination and to visit sightseeing attractions along the way. Most motor coaches have 46 to 48 seats.

Accommodation Cost

Virtually all package tours that are longer than a single day include some type of accommodation. Accommodations range from a simple tent to luxurious hotels and resorts and as such can be tailored to fit to any tour member’s budget. Typically participants choose accommodation from different price ranges. It is the price paid to acquire a stay in any accommodation unit.

The accommodation costs depend on the negotiation between the hotel management and the tour manager/ planner, and other elements of hotel products like, food, beverage and amenities etc. Once the cost is finalized, it is added to the total cost of the package tours. Hotels, motels resorts, tribal huts, homestays etc provide accommodation facilities for the guests and tariffs vary considerably depending upon the type, standards, services, facilities, location etc.

Transfer cost Transfers are any mode of transport that shuttles participants from their point of arrival, frequently an airport, to their first accommodation, typically a hotel. It is incurred for transferring the client from the airport to the hotel or vice versa.

The cost is according to the contract with transport companies on mileage or duration basis. Virtually any type of transfer is possible, such as a shuttle bus between a railway station and a cruise ship. The transfer is an important component in the tour cost when the destinations are distant from one another.

Food and Beverage Cost

Lodging meal plans are also important among the tour cost components. Wide ranges of meal plans are available on package tours. The level and type of plan is one of the factors that significantly affect the cost of a tour.

• With American plan, tour participants receive all three daily meals as part of their tour package. The American Plan (AP) is common in cruise packages that visit more remote or isolated destinations.
• Tour participants, under the Modified American Pan (MAP), receive breakfast and one other main meal, usually dinner.
• Dinner can be either the mid-day meal or the evening meal depending on the country and tour. The room plus a continental breakfast is called a Continental Plan (CP). With this type of plan, tour participants receive a daily light breakfast such as bread, jams, fruits, cereal, coffee and tea. Continental plans vary from country to country, however, in certain countries; a more extensive menu is available and may include meats, cheeses and even boiled eggs.
• European plan does not include any meals and present a significant saving to the tour operator. Under this type of plan, tour participants are required to pay for all of their own meals. Lodging properties that use meal plan pricing quote prices per person, not per room.
• In Bermuda Plan (BP), tour participants receive a full cooked breakfast, but no other meals are provided.

It is important to note that one way of saving money is by reducing or eliminating meals that are included as part of the tour. The type of meal is also an important consideration in tour cost. For example, a tour operator who offers five lunches and five dinners as part of the package is offering more than an operator who offers ten breakfasts.

Similarly, a tour operator who allows participants’ unlimited menu choices at a destination is more than one who restricts the participants to a selection of three main dishes or a set menu. It is important to pay attention to theses details when costing the food and beverage component.

Sightseeing and Activity Cost

This constitutes a major portion of the tour cost which makes the clients satisfactory or unsatisfactory. Usually, this cost is calculated per person. Generally, a package tour includes sightseeing as an important component.

For Example, a 2 Nights and 3 days package to Sri Lanka will definitely include a half-day or full day sightseeing as a compulsory part of the package. This component takes a major fraction of the package cost and again varies with the mode of transportation used. The destination vendors offer these activities less expensively to a group.

Marketing Cost

In this world of globalization, no organization can withstand without marketing. Proper marketing should be done for the success of any product. Tourism products are not different from this. Package tours and ancillary products have to be marketed properly, which constitutes a major fraction of the company’s budget.

The marketing budget of the company should be allocated in such a way that it reaches the audience more deeply and effectively. Promotional activities include advertisement, sales promotion activities, public relation, telemarketing, direct marketing etc. All marketing effort should be based on AIDA principle, i.e., it should create attraction, generate interest, arouse desire and initiate action. For this, cost should not be a constraint.

Administrative Cost

The administrative department plays a vital role in a tour company, which handles all the background paperwork and office functions including:

• Looking after telephones, faxes, telexes, personal; computers etc.
• Handling the post
• Dispatching documents to clients.
• Sending paper print outs (tickets, rooming lists, etc) to the concerned departments.
• Looking after office maintenance, cleaning etc.
• Staffing the reception and switchboard.

Handling of the above administrative functions requires a good fraction of the cost. Administrative cost is the expenditure incurred by the tour company in formulating the policy and strategy for directing the organization and controlling the operations.

Administrative costs and incidentals include things like brochure printing, postage, charge for telephone charges, baggage, nametags, flight bags, etc. In the era of competition and revolutionary developments in information technology, potential clients have to be contacted and served. So mobile phones to the executives, Internet, events and cultural galas for the industry people like travel agents, travel executives, travel writers etc are indispensable.

These costs are incurred in the general and financial management of travel business such as office expenses, salary to staff, audit, insurance/legal expenses etc are also important. These are fixed costs and the allocation of these expenses to a particular tour or service may be too much as there are many tours/ services that a company can offer at a particular time. Usually, it occupies 15-20 % of the cost of sale.

Miscellaneous Costs

The miscellaneous costs vary from organization to organization. These costs include portage at airports, tips at airports, hotels etc, entrance fees, insurance premeuims, literature and other materials, and gifts given to tour members at the beginning and end of a tour, welcome drink, welcoming event/ reception etc. These costs are determined by adding up the per-person cost of each item.

However, the percentage of each cost to total tour cost is different for a new tour company as compared to an old tour company. In the case of a new tour/ travel company, that has not developed its reputation; the miscellaneous expenses figure should be between 10 to 15 per cent of the total tour cost. In case of an established tour company, this figure should be one to two per cent of the total cost.

Types of Tour Costs

The tour cost can be classified into two categories depending upon how it affects total cost structure of a tour.

Direct costs

Direct costs are those, which are incurred and conveniently identified with a particular package tour such as accommodation costs, travel costs, food and beverage costs, sightseeing costs etc. These costs are readily traceable to a specific tour.

For example, the cost of a guest’s food and accommodation will directly reflect in his tour cost. The price differs when he undertakes his travel by car, flight, motor coach etc. Suppose a guest opts for Modified American Plan during his stay in a five-star hotel, the total package cost will be less compared to the package cost of a guest who opts for American plan.

Indirect tour costs

There are many costs involved in making and marketing tours that are not so readily identifiable as the direct tours costs. Indirect tour costs are those costs which are incurred for the benefit of a number of tours that are offered by a travel company during a year or a particular period but cannot be conveniently identified with particular tour costs such as marketing costs, tour planner’s costs, financial and legal costs, administrative expenses, FAM tour costs, medical expenses, insurances and so forth.

The total tour package will be based on a fraction of all these indirect costs but are not able to easily identify with a particular tour.

Fixed costs

Fixed costs are those, which are incurred even when one is selling or not selling any tour package. Maintaining a motor coach would add to fixed cost since some expenses are incurred whether or not one or all seats are occupied.

When a tourist/ client or a group of people go on a tour, one has to incur some expenses such as FAM tour, cost of a tour bus, research and development expenditures, marketing expenses, tour manager’s and tour planner’s salary etc. These are all included in fixed costs. These costs are constant in total amount, but fluctuate per person/ per package as the level changes.

Fixed cost is also known as period cost because it is dependent on time rather than on output. The management of a tour company can control these costs. Fixed costs are those costs that remain stable regardless of how many tours are sold or how much revenue enters the business.

Rent, interest on mortgage, insurance and costs associated with minimal staffing levels (including the owner’s draw or salary) are the primarily fixed costs of a tour operator. If a tour operator is unable to pay fixed costs, the door must close.

Variable Costs

In contrast to fixed tour costs, some tour costs tend to vary in direct proportion to the level of sales or number of tour participants. Costs, which are incurred only if a passenger actually uses the service, are variable costs. Tour variable costs are those, which vary with the number of tourists participating in the tour. Examples of tour variable costs include admissions to attractions, hotel rooms, and meals. For example, food and beverage costs, the cost of the gifts, brochures, tourist taxes, entrance fees, room costs etc. play an important role in making a tour costly or cheap. The cost is also known as product cost because it is based on product rather than on time.

Air transport would be a variable cost. This service would not be paid for unless the seat was occupied, except when certain fares are used which cannot be refunded to the passenger, e.g., for group travel when the minimum group size is specified.

Or when a tourist /client or a group of people go on a tour, one has to bear some expenses such as ‘FAM tour, cost of a tour bus, research and development expenditure, marketing expenses, tour manager’s and tour planner’s salary etc. These are all included in fixed costs. These fixed tour costs are constant in total amount but fluctuate per person /per package as the level changes.

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Oasis VIP ticket packages for 2025 reunion tour prices, cost and what you get for each one

How much oasis vip tickets will cost for heaton park, principality stadium, wembley stadium, and murrayfield stadium.

• 13:26, 29 AUG 2024
• Updated 14:21, 29 AUG 2024

Oasis fans will be gearing up to get their tickets for their UK and Ireland tour dates which go on presale tomorrow (August 30) and general sale on Saturday (August 31).

The hitmakers are reuniting for a world tour next summer, playing cities including Manchester, Edinburgh, London, Cardiff, and Dublin. This morning it was announced that on top of the 14 dates announced on Tuesday, a further three shows will take place at Heaton Park , Murrayfield in Edinburgh and London Wembley.

Due to 'unprecedented demand', the Britpop icons will now play Heaton Park on July 16, Wembley on July 30 and Edinburgh on August 12. The band will now play five dates at Manchester on July 11, 12, 16, 19 and 20.

READ MORE: Oasis ticket prices confirmed for Manchester, Cardiff, London, Dublin and Edinburgh

Tickets for the UK dates will go on general sale at 9am on Saturday, 31 August. They will be available via Ticketmaster here , and See Tickets here . A presale will also take place tomorrow (August 30). A time has not yet been announced but the ballot for entry has been extended to 10am tomorrow.

Ahead of tomorrow's presale, prices for all of the venues have now been published on the ticket site See Tickets. Standing is £148.50 (with fees) at Heaton Park in Manchester, £151.25 (with fees) at London Wembley, then £150 at Cardiff Principality, and £151 at Murrayfield Edinburgh.

Here is a breakdown of tickets for each venue , according to SeeTickets.

Manchester Heaton Park

• Standing - £135 (£148.50 including fees)
• Hospitality area - £250 (£268 including fees)

Cardiff Principality Stadium

• Pitch standing - £135 (£150 including fees)
• Seats - Ranges from £65 (£73 including fees) to £185 (£205 including fees)
• Premium seats - £250 (£270 including fees)

London Wembley Stadium

• Pitch standing - £135 (£151 including fees)
• Seats - Ranges from £65 (£73 including fees) to £185 (£206 including fees)

Edinburgh Murrayfield Stadium

Dublin croke park.

MCD has revealed prices will start at €86.50 (£73) - subject to service charge. Oasis will play Dublin on August 16 and 17.

VIP packages

While many will be trying to snap up standing and seated options for the 17 dates, others will be tempted by the range of VIP options. Below we outline the options:

Full list of Oasis 2025 UK Reunion Tour VIP Packages:

Hospitality Area Package: £250 (£268.50 including fees)

• Hospitality Area Package includes a general admission ticket to the main public arena, Access to the hospitality area which includes a bar and street food vendors, a chill out area with seating, premium toilet facilities

Conditions:

• See Tickets explains that those purchasing this option are responsible for paying for your own beverages and snacks, and that there is not a separate standing area for hospitality ticket holders.
• The hospitality area is not stage facing, you will need to access the main arena to watch the show / any seating is subject to availability; seating type is likely to be beanbags/benches.

Pre-show Party & Exhibition Fan Package: £435 (£453.50 with fees)

Oasis Pre-Show Party and Exhibition Fan Package includes one Priority Standing Ticket, Pre-Show Party Access, Exhibition Entry - Access To Private Oasis Exhibition, Premium Collectible Item, Exclusive Merchandise Package, Exclusive Numbered Lithograph, Commemorative Laminate.

Merchandise & Exhibition Package: £335 (£353.50 including fees)

Oasis Merchandise And Exhibition Fan Package includes: One Priority Standing Ticket, Exhibition Entry - Access To Private Oasis Exhibition, Premium Collectible Item, Exclusive Merchandise Package, Exclusive Numbered Lithograph, Commemorative Laminate.

Premium Standing Package: £195 (£215 including the fees)

Premium Standing Package includes: One general admission ticket to the show, A limited-edition merchandise item designed exclusively for this special event, A commemorative fabric wristband to remember your evening.

Premium Seat Package: £250 (£270 including fees)

Premium Seat Package includes: One premium reserved seated ticket to the show, A limited-edition merchandise item designed exclusively for this special event, A commemorative fabric wristband to remember your evening.

Pre-show Party & Exhibition Fan Package - Standing: £435 (£455)

Pre-show Party & Exhibition Fan Package - Seating: £485 (£355 with fees)

Oasis Pre-Show Party and Exhibition Fan Package includes: One Premium Seated Ticket, Pre-Show Party Access Exhibition Entry - Access To Private Oasis Exhibition, Premium Collectible Item Exclusive Merchandise Package, Exclusive Numbered Lithograph, Commemorative Laminate.

Merchandise & Exhibition Package - Standing: £335 (£353.50 including fees)

Merchandise & Exhibition Package - Seating: £385 (£405 including fees)

Premium Standing Package: £195 (£216 including the fees)

Premium Seat Package: £250 (£271.35 including fees)

Pre-show Party & Exhibition Fan Package - Standing: £435 (£456.25)

Pre-show Party & Exhibition Fan Package - Seating: £485 (£506.25 with fees)

Merchandise & Exhibition Package - Standing: £335 (£356.25 including fees)

Merchandise & Exhibition Package - Seating: £385 (£406.25 including fees)

Premium Seat Package: £250 (£271 including fees)

• Liam Gallagher
• Noel Gallagher
• Manchester Music
• Most Recent

THE WILD GOD TOUR NORTH AMERICA 2025

6 September 2024

Nick Cave & The Bad Seeds announce a spring 2025 North American tour.

Marking the band’s first North American shows since 2018, the tour begins in April in Boston, with additional stops in Brooklyn, Chicago, Toronto, San Francisco, and more. Full routing below.

St. Vincent will support the New York and Boston dates.

The artist pre-sale begins on Tuesday, September 10, at 10am local time. General on sale starting on Friday, September 13, at 10am local time.

REGISTER FOR PRE-SALE ACCESS HERE

April 15 – Boston, MA – Agganis Arena (with St. Vincent)

April 17 – Brooklyn, NY – Barclays Center (with St. Vincent)

April 19 – Detroit, MI – Masonic Temple

April 21 – Washington, DC – The Anthem

April 23 – Toronto, ON – Meridian Hall

April 24 – Montreal, QC – Place Bell

April 26 – Philadelphia, PA – The Met

April 28 – Chicago, IL – The Salt Shed

April 29 – Chicago, IL – The Salt Shed

April 30 – Milwaukee, WI – Miller High Life Theatre

May 2 – Columbus, OH – Palace Theatre

May 4 – Minneapolis, MN – The Armory

May 5 – Kansas City, MO – Kansas City Music Hall

May 7 – Denver, CO – Mission Ballroom

May 10 – Portland, OR – Theater of the Clouds

May 11 – Vancouver, BC – Queen Elizabeth Theatre

May 12 – Seattle, WA – The Paramount Theatre

May 14 – San Francisco, CA – Bill Graham Civic Auditorium

Related News

Wild God – OUT NOW

30 August 2024

The Making of Wild God – Part 3

27 August 2024

WILD GOD – LISTENING PARTIES WORLDWIDE

26 July 2024

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Hawaii Island: Hilton Waikoloa Village® Limited-Time Package

Located on the sunny Kohala Coast of Hawaii Island is the award-winning Hilton Waikoloa Village, a Pacific playground and alluring destination unto itself offering exceptional value. The resort offers activities suitable for all ages, island hospitality with beautiful vistas of Waiulua Bay and an unforgettable experience second to none. Amenities include three swimming pools, an ocean-fed snorkeling lagoon, waterfalls and waterways, locally-inspired treatments at the Kohala Spa, the Dolphin Quest educational center, eight dining outlets, a museum walkway, Legends of Hawaii Luau, golf and tennis.

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