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ARRANGING THE TOUR YOURSELF

(continue)

Matakuliah : G0404/Tour Guiding

Tahun : 2006/2007

Cancel anything you are not going to use

• Your agency’s manager will not want to hear excuses; he or she will just want to know how you are going to pay – now.

Have alternatives

• To save time and to look professional, know the exact itinerary of your tour and have second choices ready.

Remember visas and passports

• Make sure you know what documents your tour members must bring, including visas for the countries you are traveling to.

Use the right phone numbers

• REMEMBER:

Every agency has a huge book listing hotel phone numbers for just about every destination.

SHOP AROUND

• REMEMBER:Comparison shopping is A MUST.

Always dress neatly

• REMEMBER:Image counts.

Always smile & thank everyone

• REMEMBER:Charm, patience and a smile go a long way in this industry.

PRICING YOUR TOUR

What you should bear in mind

PRICING YOUR TOUR

DON’T FORGET TO:

Confirm amount of payment

Write everything down

Cancel what you are not going to use

Have alternatives

Have visas and passports

PRICING YOUR TOUR

• Build up the perception of value by giving your customers something no one else has.

MARKETING YOUR TOURS

“Marketing is the key to staying in business”

MARKETING IS NOT JUST ADVERTISING

• REMEMBER: Marketing is the total effort you make to get clients to buy from you.

Marketing thrives on imagination and optimism.

YOUR BROCHURE

• REMEMBER:Your brochure is one your most important marketing tools.

• CONSIDER:The price and the impact

YOUR BROCHURE

•Legal fine print•Photos•PrintingREMEMBER: Keep words to

a minimum

USE YOUR PERSONAL CONTACTS

• Get a head start by drawing up a list of all the clubs and organizations you belong to.

• Your business card should be with you wherever you go.

THE ULTIMATE MARKETING TOOLS

• Word of mouth

• Know your competition

• Free publicity

WHAT’S NEXT

• Conducting informational seminars

• Selling through travel agents

• Direct mail

• Advertising as a small tour operator

USING THE INTERNETThe information super highway is here and it

has been a boon to tour guides, making research and communication easier and less

expensive.


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USING THE INTERNET

• Research

• Booking airline seats, cars, and hotels

• E-MAIL

• Marketing using the WWW

• Your brochure

USING THE INTERNET

• SPAM

• Collecting money over the internet

• Keeping in touch

BUILDING A TOUR COMPANY

“Your credibility and reputation will become the keys to repeat the

business.”


THE BIG QUESTION:

AM I READY TO GET BIGGER?


• Day-to-day life of a tour operator

CONSIDER THIS POINT:

The travel industry sells dreams and convenience, and it runs on paperwork. Your clients are about to give you a big amount of money in exchange for a piece of paper that promises a service of unknown quality to be delivered sometime in the future.


• REWARDS

- self-fulfillment

- Good feedback

- Control

- Satisfaction

- Reasonable hours


• CONSIDER: Statistics about travel businesses

• What are your goals?

Ask yourself this question:

What do you want to achieve?


ASSESING YOURSELF:Your personal qualitiesYour experience and

education

PRESCRIPTIONS FOR SUCCESS

Tasks you should work through to evaluate whether the travel

industry is for you.


• Explore the industry

• Develop your skills:- General skills- Office management skills- Financial skills- Machine skills- Computer skills- Travel agent skills


• PlanningPlan everything on paper first.

• Take on a knowledgeable partner

• Educate yourself Being in business for yourself means

being an expert in many areas.


• Learn how to market your business

• Prepare for failure, then concentrate on success

REMEMBER: Thoughts of failure have a tendency to rob you off the optimism.

MAKING YOUR BUSINESS LEGAL

Tasks you should work through to make your business legal


SET UP YOUR BUSINESS LEGALLY:

- Sole proprietorship

- Partnership

- Limited partnership

- The corporation or limited company

- Subchapter “S”


OTHER REGISTRATIONS- Workers’ compensation- Employee registration with the government- Goods and service tax- Provincial and state taxes- Municipal license- Better business bureau


REGULATIONS CONCERNING TRAVEL BUSINESSES

Some states and provinces require some form of certification for travel businesses.

WHAT WILL MY BUSINESS LOOK LIKE?

WHAT’S INSIDE


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1. Selling retail products

2. Selling complementary tours

3. How to choose your products REMEMBER: Marketing several disparate products

simultaneously may cause some confusion in the consumer’s mind about what you are really good at.


4. How to select suppliers

If a supplier abandons you at a crucial moment or makes it difficult to remedy problems, do not deal with that company.

LOCATION! LOCATION! LOCATION!

• The types1. Enclosed malls

2. Retail street level and small strip malls

3. Downtown VERSUS suburban

4. Office buildings

EQUIPPING YOUR OFFICE

• A bare bones office is all you really need to get started.


1. Telephone systems

Try not to tie up the same lines your sales come in on while you are organizing every detail of your tours.


2. Computer

3. Fax machine

4. Photocopier

5. Decorations

6. Computerized reservation systems

FINANCING YOUR TOUR OPERATION

SOURCES OF FUNDS

SOURCES OF FUNDS AND FREE FINANCING

• Banks

• Government guaranteed loans

• Venture capital

• Family and friends

SOURCES OF FUNDS AND FREE FINANCING

• Personal lines of credit, personal loans, and credit cards

• Other private investors

HOW MUCH MONEY WILL YOU NEED?

CONSIDER:1. Your market

2. Geographic area

3. Size of your telephone system

4. Equipment

HOW MUCH MONEY WILL YOU NEED?

5. Expenses associated with your location

6. Working capital

7. Other licensing fees

FINANCING YOUR TOUR OPERATION

• ADDING UP THE COST OF YOUR BUSINESS

• RECOMMENDATIONS

- Forget the frills

- Trade time for money

- Do not go into debt for the long term

RECOMMENDATIONS

- Hire people who care

- Read carefully

- Think small

REVENUES AND EXPENSES

Several strategies you can try to get higher commissions


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• Ask for a higher commission When your volume with particular

suppliers has grown substantially, discuss an increased commission rate.


• Override commissions BE CAREFUL not to fall into the

common trap of selling tickets at cost in order to make your override quota.


• Use wholesalers and consolidators

Wholesalers and consolidators may give you a higher commission rate than you can get yourself.


• Join a consortium When choosing a consortium, pick one

with a lengthy track record, a long list of agreements with popular companies, and an easily understood manual that explains any special booking instructions for obtaining a higher commission.


•Join forces with another agency

EXPENSES

REMEMBER:Controlling expenses is a great way to earn money.

EXPENSES

REMEMBER:

Carefully assess whether you are getting good value for the money you spend.

PERSONNEL

“A competent staff is essential to your success.”

1. INSIDE AGENTS

• It is recommended for you to hire experienced sales staff to do the day-to-day sales.

2. MANAGERS

• You would be best to start off with a manager who has experience running a tour operation or travel agency, has the background to solve both customer and supplier problems, and is willing and able to do sales as well.

3. HOW MANY PEOPLE DO YOU NEED?

• REMEMBER:

Training full-time staff only to let them go when business slow is an expensive proposition.

4. EXPERIENCE AND QUALIFICATIONS OF STAFF

• REMEMBER:Formal training is a help but the attitude and experience of a potential employee are more important.

5. WHERE TO FIND EMPLOYEES

• Word of mouth

• Industry publications

• Newspaper advertising

• Employment agencies

6. THE INTERVIEW

• When you are hiring, be sure to check every reference and each post job.

6. THE INTERVIEW (continue)

Unexplained gaps in a resume will alert you to jobs the candidate may be reluctant to disclose.

PERSONNEL

“A competent staff is essential to your success.”

(continue)


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7. SALARIES

• The upshot is that there are no rules about salaries, depending on the timing and your locale, salary ranges can vary by up to 100 percent.

7. SALARIES (continue)

• The commission component

Keep current about wages or you could find yourself continually training new people to replace those who leave.


• Benefit packagesExpensiveRequire time to explain to your employees

and to administer.


• Reduced rate travel

• Vacation time

Most areas have laws on the minimum amount of paid vacation time a company must give its employees.


• Free labor

Every jurisdiction has a minimum wage. You need to know what it is.


• Free labor

By using a travel school, the nature of your obligation to the student is abundantly clear.

STAFF MORALE

• GET THE BEST FROM YOUR EMPLOYEES:

- Communicate

- Consult

- Promotions

- Rewards

- Start an incentive system

MARKETING THROUGH TRAVEL AGENTS REVISITED

“Travel agents are a mixed blessing.”

Points to be considered

• Have a well-thought-out plan for dealing with travel agents and make sure you appear professional.


• Make sure you approach agents with promotional material at least once or twice a month.


• Try to target the agencies catering to the appropriate kind of client and market to them.


• Market by fax/E-MAIL if you can.

TRAVEL SHOWS

• Code all brochures so you can track whether the show generated enough sales to make it worthwhile.

WALK-IN TRAFIC – HOW MUCH DO YOU REALLY WANT?

•Walk-ins generally take up more times than someone who calls you.

ATTRACTING WALK-IN TRAFFIC

• If you decide that you do want walk-in traffic, you must plan how you will attract it to your office.

ADVERTISING“Advertising is an expensive trial and error endeavor.”


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HOW TO RUN AN EFFECTIVE ADVERTISING CAMPAIGN

YOU NEED TO:

• Choose a product to advertise

• Choose the most effective advertising medium

• Create an eye- or ear-catching ad

• Evaluate the return on your advertising budget

ADS: THE MEDIA

1. RADIO AND TV

2. PRINT ADVERTISING

Print advertising is low risk compared to radio and TV.

ADS: THE MEDIA

• PRINT ADVERTISING:

(1) Newspapers

(2) Magazines

ADS: THE MEDIA ADS: THE MEDIA

CREATING EFFECTIVE PRINT ADVERTISING

Pick the product to advertise Create your ad Make sure your phone number large in your ads so that

it’s easy for people to find.

Choose the right vehicle

Evaluate the response

ADS: THE MEDIA

CREATING EFFECTIVE PRINT ADVERTISING

Helpful hints for print advertising

Keeping careful records means you can budget your advertising dollars and avoid waste.

ADS: THE MEDIAHelpful hints for print advertising Watch what other advertisers do time after time.

Never run an add without confirming that it is properly placed and correct.

Know what your competition is offering. Do not include your address in the ad. Seasonal considerations and timing may play a

part in advertising for your area.

ADS: THE MEDIAHelpful hints for print advertising

REMEMBER:

Finding your first consistently winning ad may take some time. Do not get discouraged.

ADVERTISING

“Advertising is an expensive trial and error endeavor.”

CREATING EFFECTIVE PRINT ADVERTISING (continue)

• CO-OP ADVERTISING

Many suppliers will share advertising costs with you if you are running an ad that advertises their product exclusively.


• PIGGYBACK ON SOMEONE ELSE’S MARKETING

Look for opportunities to share the costs of reaching your audience.


• DIRECT MAIL

If it is done correctly, a direct mail campaign pinpoints groups of people who are most interested in the products you sell.


• ADVERTISING HOTLINES

• ADVERTISING ON THE WWW

Make good use of key words and search engines in your advertising on the internet.


• NEWSLETTERS AND OTHER PERIODIC MAILINGS

• PROMOTIONS –PREMIUM GIVEAWAYS AND CONTESTS


• PROMOTIONS –CHARITABLE DONATIONS

The amount you choose to donate is up to you and the association.


• DIRECTORIES

• DISCOUNT COUPONS


• REMEMBER:

“No amount of advertising will overcome faulty pricing, a bad choice of products, or rotten service.”