What are the activities of the CEO and staff management?
- Strategic & company planning
- Finance, HRM
What are the activities of the contract & product department?
- Procurement/contracting
- Product management
What are the activities of the sales & marketing department?
- Sales & Marketing
- Internal processing
- After sales
Name min. 5 roles or responsibilities of a tour operator
- Managing the company
- Data analysis (historic data)
- Market research
- The transport, accommodation and additional options
- Contact with stakeholders (airlines, hoteliers, local agents etc.)
- Negotiating contracts
- Confirming reservations
- Managing and responding to customer feedback
- Marketing
- Pricing, calculations packages
- Administrative issues (bookings, invoices, issuing tickets etc.)
- Contacts with other traders (based on distribution choice)
What is the definition of procurement?
The process of buying products, goods or services.
What is the procurement process? And define the process steps.
- Strategic: in line with the company strategy
E.g: Low-Cost strategy so for contracting = cost reduction - Tactical: choice of supplier, price and conditions
- Operational: buying and contracting
What are the daily activities of a Contract Manager/Product Manager/Procurement Manager?
- Strategy choice
- Distribution choice: Direct or via Local Agent (= DMC) or combination!
- Analyzing: important part of the job!
Describe the procurement department
- Related to the (marketing) strategy
- Procurement marketing: what, where, when, how much and with who?
- Analysing
- Procurement Year-plan & Procurement scheme:
- Suppliers
- Prices
- Offers, negotiations
- Contracts
What steps does the Destination Lifecycle consist of?
- Exploration
- Involvement
- Development
- Consolidation
- Stagnation
- Decline ..or Rejuvenation
What are the tasks of the (year)-plan contract department?
- Choice of product/destination(s).
*Based on client, supply & concept (strategy) - Procurement duties.
*Trade shows/contacts/market research - Choice of intermediary at the destination(s).
*Position of the DMC, details contract - Internal financial analysis & visiting destination(s).
- Final procurement plan.
The way of contracting differs per company, depending on what?
- Small, medium or large company
- Location/market
- Type of product
- Volume of ‘the business’
- The STRATEGY
(TUI) What is the procurement when it comes to beach holidays?
- Stronger focus on own airline, own hotels
-Direct contracting, mass tourism - Product Manager analyses the full market, and makes the final ‘shopping list’
- Contract Manager closes the deals for all markets
- Service centres (previous local agent) take care of transfers, excursions etc.
(TUI) What is the procurement when it comes to individual/smaller groups travelling to worldwide destinations?
- More a traditional way of contracting
- Importance of a good local agency
- Volume decides the contract-business
- Use of Full-Service Carriers
(TUI) What is the procurement when it comes to city trips?
- “Hotelbeds” & Bed banks
- Contracting via Local agents/DMC
- Hardly use of own TUI-airline
- Volume of ‘the business’ differs per city
What is a bed bank?
A bed bank is a wholesaler of accommodation (rooms) that purchases rooms at a discounted price for specific dates in bulk and resells these to travel agencies, airlines, tour operators, DMCs, TMCs, and OTAs.
What is a Geo-Focused Network? (airlines) Name an airline example.
- Concentrates operations in one geographic region.
- High frequency.
- Limited flights to other areas.
- May join alliances or codeshare.
e.g. Alaska Airlines or Austrian
What is an Intercontinental Network? (airlines) Name an airline example.
FSC
- Covers the entire domestic market.
- Hub-and-spoke network, sometimes with multiple hubs.
- Routes to multiple global markets.
- Participates in global alliances.
- 3- or 4-star rating Skytrax
e.g. UNITED airlines, Lufthansa or KLM
What is a Global Luxury Connector? (airlines) Name an airline example.
FSC
- Significant global reach
- Hub and spoke network
- Luxury service and product
- Long-haul connections
- Alternative to non-stop flight
- 4- or 5-star rating Skytrax
e.g. Emirates, Singapore Airlines or Qatar airways
What is an Independent airline/Network Extender? Name an airline example.
- Primarily extends the reach of partner carriers into smaller markets.
- Operates under co-brand, code share, or pro-rate agreements.
- Occasionally subsidiary of larger carrier.
e.g. AeroMexico connect or SkyWest airlines
What is an Ultra Value airline? Name an airline example.
LCC
- Aggressively stimulative pricing.
- “Seat-only” product: charge extra for other services (e.g. checked bags)
- Ancillary revenues
- Leisure customer service
- Serves secondary airports
- Point-to-point services
e.g. spirit airlines or RyanAir
What is a Traditional Value airline? Name an airline example.
LCC
- Point-to-point operations
- High frequency
- Target leisure and price-sensitive business travellers
- Serves secondary and primary airports
e.g. Southwest or easyJet
What is a Modern Value airline? Name an airline example.
LCC
- Point-to-point and network
- Target mix of business and leisure travellers
- On-board product thrills superior to competitors’ Economy Class (e.g. LiveTV, XM Radio, seat pitch)
- Often serves primary airports
e.g. jetBlue airways, Virgin blue or Transavia
What is a Charter airline? Name an airline example.
- Focus on unscheduled service with some scheduled operations
- Significant reliance on tour operators selling vacation packages
- Target customers are often agnostic to the branding of airline components of vacation package products.
e.g. TUI or My Travel
What are the 5 business models in the airline industry?
- Full-Service Carriers (FSC)
- Low-Cost Carriers (LCC)
- Hybrid business model (between FSC and LCC)
- Charter Airlines
- Only carrying cargo
