TOOLS, TECHNIQUES, PROCEDURE OF ITINARARY PLANNING AND ALSO ITS BUDGET

ASSIGNMENT
ON
TRAVEL AGENCY OPERATIONS
AND MANAGEMENT

TOPIC-TOOLS, TECHNIQUES, PROCEDURE OF ITINARARY PLANNING AND ALSO ITS BUDGET.


Submitted To: Submitted By
MR.VARINDER RANA RAHUL KALRA
M.B.A. (H&T)
ROLL NO. 27


ITINERARY PREPARATION PROCESS
Itinerary preparation technique is a process, in which several steps are included. Following is the list of those steps that should be followed while developing an itinerary.
● List Destinations
First, we have to make a list of the all the Destination to be included in the itinerary. It depend upon the choice of tourist that where they want to travel. Generally tour operator companies offer ready made programs but sometimes also according to wish of tourist
● Finalize tour duration
In this step we have to finalize the number of days or period of travel. The total duration is to be finalize the travel time of visiting the various places as per the choice of tourists.
● Purpose of tour
The third important step is finding the main purpose of tour. A tour may be a leisure, business, relaxation or Visiting Friends and Relatives etc.
● Finalize budget
It is the most important aspect while giving final shape to the itinerary. The budget of the tour will decide the true nature of the tour program. It will decide the mode of travel , the choice of accommodation and other services to be used during the whole tour. It is the responsibility of a tour manager to make a good itinerary in view of all budgetary constraints.
● Finalize mode of travel
After planning the various options in view of tour budget then comes the planning about the mode of main/inter-city travel. This will give a final shape to the tour program. The visit to various places depends upon the choice of mode of travel. For example if a person chooses to travel to Leh from Delhi by road. Then it will take him about three days to reach Leh, while on the other hand by air it will few hours.
● Finalize the companion for the tour
In other words with whom to go for the tour or number of persons for the tour.Various service providers offer different rates depending upon the number of pax for the tour. It is the reason that why FIT rates are higher than GIT, and moreover traveling in a group costs less than traveling alone.
Once we have this basic information, the task of Itinerary designing becomes easier and the whole operations can be carried down smoothly without any hassles and overlapping.
COSTING A TOUR ITINERARY
Cost is the amount of expenditure (actual or notional) incurred on or attributable to a given thing to ascertain the cost of a given object.
Once a tour is designed and the itinerary is finalized, quotations from the service providers are taken and put together with handling charges. This is the complete cost of the tour package.
In case of tailor made packages the costing of the package is done according to the services demanded by the tourist. For this, the individual cost of the services is taken, the discounts available to the tour operator on each service are applied and the final cost is taken.
Costing is the most carefully performed task because it forms the basis of the net earnings of the service providers. Costing of an inbound Itinerary differs from that of an outbound and domestic itinerary.
COMPONENTS OF A TOUR COST:
There are various costs, which in totality increase the cost of the tour itinerary. For any tour operator or any travel agent the cost of any itinerary depends on various factors-
Research and development cost: Involves the cost of the tour planner’s research and the cost of FAM tours.
Travel cost: The total cost of travel ranging from departure to arrival at the original point.
Accommodation: This means the price paid to acquire room in a resort/ hotel. Generally in a tour package, tour companies offer twin-sharing room.
Transfer costs: Cost incurred in transferring the client from the airport to the hotel and vice versa. Usually it varies from 1-2 % of the total cost.
Sightseeing and activity costs: This is a major part of the cost and determines the final satisfaction of the tourist. All the activities and excursions undertaken at a destination are considered in the total cost.
Administrative costs: This is an indirect expenditure incurred by the tour company in formulating the policy and strategy for directing the organization and controlling the operations.
Other costs: This cost consist of other costs like cost of escort, using any special service, entrance fee if any etc.
POINTS TO KEEP IN MIND WHILE COMPLETING A COST SHEET
1. Accommodation
The cost of accommodation is determined on the basis of number and types of rooms used by the passenger. In a group of tourists, the rooms are distributed according to the preferences given-twin sharing, double bed room or single bedroom or an additional bed allowance on an extra charge. All additional services e.g. laundry, gym & beauty care etc. which are not included in the package cost are to be paid by the guest.

2. Meal Plan
Along with the accommodation, meals are to be provided. This would be priced according to the number of meals included in the tariff. All additional meals would be paid by the guest to the hotel.
MEAL PLANS AVAILABLE IN HOTELS
E.P. – EUROPEAN PLAN (ROOM ONLY)
A.P. – AMERICAN PLAN (ROOM + BREAKFAST
+ LUNCH + DINNER)
M.A.P. – MODIFIED AMERICAN PLAN (ROOM +
BREAKFAST + LUNCH OR DINNER)
C.P. – CONTINENTAL PLAN (ROOM + BF)
3. Transport / Transfer
Cost of the transport depends upon the mode of transport preferred by the passenger. e.g. air travel, rail, coach or car hire for personal use.
There are different fares for different classes in the mode of transport e.g. First class, Economy class, A.C. or Non A. C. etc.
Cost of transport will also depend on number of trips undertaken by the passenger. In case of return journey the fare varies from the single trip fare or circular trip fares.
While doing the costing for the transport, no. of transfers provided ih the itinerary are also to be calculated. A transfer is a trip within the destination especially from the airport to the hotel/ attraction and back.
It is calculated in terms of distance traveled within the destination, or fixed trip transfers where the cost is calculated in terms of the excursion trips made to various destinations.
5. Permits & entry fees
The permits to enter restricted / protected areas and tickets to enter various attractions must be arranged and confirmed for the trip and the cost of the same has to be included in the total tour cost. .
Separate supplements should be quoted for:
• Immediate occupancy or late checkout
• Air-conditioned transportation
• Language speaking Guides where available
• Airfare/ rail fare for internal travel at the destination
• Airport Tax payable
COSTING PROCESS
There are two ways in which we can do the costing of a tour. The costing for outbound, inbound and domestic tours differs from each other.
COSTING OF SAMPLE ITINERARY
The itinerary below gives a clear picture of the travel plan of an Inbound tourist from Amritsar for his 4 day journey on the sector
Delhi – Agra - Jaipur – Delhi.
The suggested itinerary gives details about the stay at each destination, the main activities that the tourist would be involved in and daily travel plan.
Day Date Place Program
1 24 NOV
Monday Delhi Arrive Delhi at 0700 HRS by Train-Shatabdi Express from Amritsar. Then go to Hotel Park by cab. After bathing and taking breakfast Day sight seeing of Delhi, visiting Redfort (Lal qilla) – an evocative testament to the once –mighty Mughal Emperor .Lunch at K4 Plaza. Then Jama Masjid- the largest Mosque of India. Evening visit to Chandni chownk. And take Dinner and Overnight at Hotel.
2 25 NOV
Tuesday Delhi









Agra After breakfast half day sight seeing of Delhi, visiting Rajghat- the Samadhi of Father of Nation – Mahatama Gandhi. It is the place where Mahatama Gandhi was cremated following his assassination in 1948, and Qutab Minar- a soaring victory tower built to proclaim the arrival of Islam in India. Lunch at Hotel Park. After noon depart for Agra by Car.

Check in Hotel King. Evening visit to Agra Bazzar. Dinner and overnight at Hotel.


3 26 NOV
Wednesday Agra







Jaipur In Morning, visit to Taj- the most extravagant monument ever built for love, This sublime Mughal mausoleum is India’s tourist emblem, and Agra fort- the ear shaped fort built by Akbar in 1565. Afternoon depart for Jaipur. Enroute visiting Fatehpur Sikri – known as fortified ghost city and the short lived capital of the Mughal empire between 1571 and 1585, also famous for tomb of Shaikh Salim Chisti and Buland Darwaja.
Arrive Jaipur and check in hotel Raj vilas. Evening visit to village fair at Chokhi Dhani Resot. Dinner at Resort and overnight at Hotel.
4 27 NOV
Thursday Jaipur








Delhi Morning after breakfast half day sight seeing of city, visit to Amber fort (ethereal example of Rajput architecture) by having elephant ride, Hawa Mahal (One of the most photographed monument of India is an extraordinary, fairy-tale, pink-sandstone, delicately honeycombed hive) city palace and Jantar Mantar (The observatory looks like a collection of mammoth, bizarre sculptures). Lunch at Hotel and after noon depart for Delhi.

Evening arrive Delhi and free to explore Delhi
market. After dinner late night transfer to Delhi Railway Station to Shatabdi express to Amritsar at 2300HRS.

Costing of a package is done on a COST SHEET. A separate costing sheet is prepared for Inbound, outbound and domestic clients. Every travel agency has its own format of costing sheet whereas the columns of the same are more or less the same. Given below is a sample costing sheet for an inbound passenger.
The example below shows the Tour Cost Sheet for the itinerary given above.
The travel Agency handling the tour is ABC tours Ltd.
Name of Tour : GOLDEN TRIANGLE No of Pax = 13
Rate of Exchange US $ - - - - Period: OCT -MAR
Tour Code = ABC GT 0108 Meal Pan = MAP
Date/Day Sector Transportation /
Transfer ($)
Coach
NAC AC Sightseeing
($)
Coach
NAC AC Hotels
($)
Single Double
Extra Remarks

01 DELHI 30 - - 200 250 Local Guide in Delhi 2$ pp Entrances extra
02 AGRA
70 - - 200 250 Local guide at Taj 2$ pp -Entrances Extra
03 JAIPUR 90 - - 250 300 5$ pp Elephant Ride -Entrances extra
04 90 - - - - - -
Total cost
Transfer ($) Sightseeing ($) Hotel/Houseboat ($) Extra ($)
No of days Car Coach Car Coach Single Double
04 380 - - 650 800 9

TOTAL: Transportation = Airfare + Transfer + Sightseeing Domestic
= 1500 + 19 + 0 = $ 1519
Accommodation = $ 400
Extra = $ 9
Total = $ (1519+400+9) = $ 1928 per PAX
Single Room supplement = SR - (DR ÷ 2)
= 650 - (800 ÷ 2) = $ 250
Net Price = $ 1928 per PAX (on Twin Sharing basis)
For a group of 20 pax
Selling price = $1928 + Mark up (generally companies add 10%
of total tour cost.)
$1928 +193 = $2121 (on Twin Sharing basis)
For a group of 20 pax

Outbound tour costing process:-
Step 1: Airlines cost
Return airfare
Airport Tax
Step 2: Land arrangements
Hotel
Transportation
Meals
Sightseeing
Step 3: Visa fees
Cost of visa
Processing fees
Step 4: Medi-claim
Policy charges
Service charges of the travel agent
Step 5: (Emigration clearance if required)
Processing fee
Services charges of the travel agent


Domestic tour costing process:-
Cost of a Domestic package includes (In Local currency)
Step 1: Get airfare/train fare
Step 2: Get hotel rates
Step 3: Get transportation rates
Step 4: Finalize meals rates
Step 5: Sightseeing
Step 6: All taxes
Step 7: Include all other services
Step 8: add mark-up
Step 9 Finalize total cost
After finalizing all costs and itinerary, a tour company opens a tour file, which consists of all the correspondence relating to particular tour.