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Module 6 The tour operator business

Component 3: Administration and staff management

BUS-201

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This publication or any part thereof may not be reproduced, transmitted, and conveyed, communicated or used in any form or by any means, whether in whole or in part, without the prior written permission of Lin Smith

© LIN SMITH 2016 Version 1.8:16

GETTING TO KNOW YOUR CUSTOMER

You will be able to develop excellent packages if you know your customer. You can collect

information in the following ways:

Client database

You have to keep a computerised or a manual database of your present customers and customer

leads (potential tourist). This database, if managed efficiently, will be a continued source of future

business. During and after conducting the tour you can ask your clients where they plan to go next

and approximately when they plan to travel. Record this information in a data file. Much of this

information can be gathered from a booking form as per example on the next page.

Establish the database in such a way that it is easy to search for information whether it is a manual or computer system. The following serve as examples of criteria of possible client interest:

Travelling at a particular time- select the clients and send out required information at a time when

they may be thinking of booking.

Travelling to a particular destination/attraction/activity – call or send informationwhen specials are

released to this destinations/attractions/activities.

Undertaking a specific type of tour or holiday, such as cruises – send information when a relevant

new brochure or ‘special’ is released.

Travelling to a specific destination when special airfares are available – search forthese clients in the

database when special airfares are released.

The customer information to be recorded should include:

Name, including preferred name if appropriate

Address, phone and fax numbers, e-mails for home and business

Passport details including type of passport, expiry date, current visa, re-entry permits if relevant and

any restrictions. (ID # can be used to remember birthdays)

Details of airline club memberships

Travel requirements including travel class, seating preferences, special meal requirements, room

type and car type

Usual type of travel business, adventure, cruises, group tours and so on

Any disabilities or special needs that must be considered

© Lin Smit 2016 Version 1.8.16

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Details of past travel.

Details of next proposed travel.

Any other details that may be of interest or assist in servicing this customer’s needs

Client information must be kept up-to-date and changes to requirements must berecorded as soon

as requested. If information is sent out that is inappropriate or out of date, this is a waste of time

and money and will demonstrate inefficiency.

Hard copy and electronic client files/reservation cards

In addition to this database, you can use hard copy files for clients with booking in progress.

Information on new clients is sourced from these files and entered into the database. They are also

used to update current client database files.

A copy of all letters, invoices and other material sent to clients, principals or wholesalers pertaining

to a particular customer must be kept on the client file, in date order, with the most recent on

top. These letters should all be attached to the inside of the file with a staple or paperclip. For

domestic travel clients there will not usually be many documents but for complex domestic travel or

international journeys when there are several letters, invoices and forms, a large file should be used.

Reservation cards provide a permanent record of all transactions with a particularcustomer for the

one departure and form the basis of the client record. They should be filed in a format that uses

either date of departure or customer name as the relevant criterion for sorting.

The client file provides all staff in the office with the details of a client reservation. This is important

because:

Information may be required by the client while the tour operator is absent

Information may be required by an airline, Coach Company or other principal while the tour

operator is absent

The consultant starting the reservation may leave, be taken ill or be transferred to another office

before the completion of the file

Changes may be advised pertaining to the reservation and the details need to be updated

immediately

A record is made of all changes to the file, when they were made and by whom

It minimizes the possibility of error in a reservation

It provides the office with a permanent record of the client file for:


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follow-up with the client at a later date

checking of details if a problem should occur while the client is travelling

statistics and other information that may be required at a later date.

Booking Form

Please complete this form and return, together with your deposit (50%) to:

Potluck Tours, PO Box 17, Pot ‘O Gold, 1717 South Africa.

Tel: +27 11 171 7171 Fax: Tel: +27 11 171 7172 e-mail: [email protected] web: www.potlucktours.co.za

Destination: Tour Name:

Surname: First names: ID: Tel. home:

Tel. Work:

Fax. No:

Contact address: E-mail:

Will you require accommodation before the tour? YES NO

If yes: Date: From _____________ to __________ Number of persons: __________

City: ______________________ Single or Twin

Will you require accommodation after the tour? YES NO

If yes: Date: From_______________ to _________ Number of persons: __________

City: ______________________ Single or Twin

Special Requests: diabetic, vegetarian, allergies etc.


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http://www.potlucktours.co.za/

mailto:[email protected]

Banking details:

ABSA Bank – Sunnyland Branch, Branch #: 78329922 Account #: 9876097658

Deposit (50%): Full:

(Non-refundable)

Credit card (visa, master card etc.) ___________________________________

Credit card #: ____________________________________________________

Credit card holder’s name: __________________________________________

Expiry date: ______________________________________________________

Last 3 digits on back of card:_________________________________________

ID NO: __________________________________________________________

Signature: _______________________________________________________

I enclose R:___________________________ being a 20% deposit/full payment of the tour fare.

I agree to pay the balance 6 (six) weeks prior to departure.

I have read, fully understand and accept the conditions and general information as set by Potluck Tours CC in their brochure and on the booking form, and accept them on behalf of all members of my party, by whom I am duly authorised to make this reservation and agreement.

I further absolve Potluck Tours CC, their staff, management and affiliates of any liability whatsoever, and realise that I undertake the above listed venture entirely at my own risk.

Signature: ______________________________ Date: ____________________


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Taking reservations

Reservations can be seen as one administrative function of a tour operating business. Reservation

staff need to be able to advise on suitable holidays in just the same way as travel agents, although

obviously they only handle their own company’s products and so should have a more detailed

knowledge of them. Reservations can be done either by telephoning the appropriate

stakeholders, checking the availability and making the reservation.

When bookings are made the following information will be needed:

* Names of the tourists

* Type of accommodation required

* Number of nights

* Special requests

* Number of tourists

* Departure time

Manual bookings/reservations

Originally all holiday bookings had to be made manually. Once the programme had been agreed,

all the holidays were listed either on index cards or on a wall chart. Aircraft seats and hotel rooms

would be listed on a week-by-week basis and each room and seat would be given a code which

could be combined with the holiday date and duration to create a unique booking reference – for

example 1607T5202114 might indicate a 16 July departure, using twin room number 5 and flight

seats 20 and 21 for a stay of 14 days.

Whenever an enquiry is received, staff will check the seat and rooms available. The systems for

marking the booking can vary. With some systems, if the tourist wanted to take out an option

rather than a definite booking, reservation staff would mark the number of seats and beds in

some way for example a red dot. When the booking form was received and the option became a

firm booking, the marked symbol would be altered for example a red dot might become a blue

triangle. Other colours and symbols would be used to indicate group bookings, balance has been

paid, special requests, tickets dispatched, etc.


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Drawbacks of manual booking system:

Physical limitations

Late bookings requires separate boards

Requires laborious price calculations for every booking, leaving scope for error

Chart columns can be easily misread

If reservations staff failed to notice an unconfirmed option, a room might be left unsold

If a member of the team removes the accommodation card no one else can use that

information.

Relatively easy to misplace a booking

A straightforward booking could take 15 minutes which is hard on the phone bill

A few small tour operators continue to use manual reservations systems because the scale of their

business neither necessitates nor justifies installing an expensive computer system.

Computer reservations system

Computers are widely used for front-office functions (reservations) and back office functions

(administration, ticketing, etc.). When a computer system is first installed there can be problems.

Not all staff will be familiar with the computer keyboard. Some people may also be apprehensive

about the very idea of a computer. However, provided the right system has been chosen, such

problems can usually be overcome with appropriate training. Once the system is up and running,

people usually find they cannot imagine how they managed before.

Setting up the system

When the operator is using its own computerised system, data processors or reservations staff

must load all the information about the programme into the system at the start of each booking

season.

First a main accommodation file will have to be set up. This will include the following information

for each property used in the programme:

Accommodation type: hotel/guesthouse/campsite etc.

Accommodation name

Address, telephone, fax and e-mail number


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Contact name and designation

The facilities offered

Details of acceptance of vouchers etc.

Then within the main accommodation file, accommodation unit files will need to be set up for each unit of accommodation. These will indicate:

The unit description – room/tent/cabin

The unit type – twin with private bath, single, twin with sea-view etc.

The number of beds/extra beds

Advantages of the computerised booking system

Faster and cheaper to use

Provided the information has been fed in correctly there should be less scope for error

than in the old system

The computer will be able to generate a price for each individual holiday about which an

enquiry is being made

Computer systems are more easily able to accommodate late bookings

Collect payment

The client must pay for the trip and other services provided by the tour operator when required

by the contract to do so. Direct selling tour operators will receive payments by cheque, credit

card or bank guaranteed cheque or direct transfer. Occasionally, they may receive cash

payments. In the case of late bookings they will want cash or credit card payment rather than

personal cheques.

Cash payment

When a tour operator receives cash they will need to count it carefully, preferably in front of the

tourist. If a particularly large sum is involved they may get someone else to check it too. Notes

must be inspected to make sure they are not forgeries. Whoever receives the money should

check the sum taken against the invoice to make sure it is the right amount. They should then

prepare a receipt and either gives the receipt to the tourist or post the receipt immediately. All

cash received must be put in the safe immediately.

Cheque payment – seldom in today’s day and age


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When accepting a cheque the tour operator must ensure:

that the amount in word and figures agree

that it is correctly dated

that it is signed and

that it is made out to the correct company name

that the person signing puts his/her name, address and contact number on the back of the

cheque

In addition it is important to check against the invoice that the cheque is for the correct sum.

When a cheque is accepted for more than the bank guaranteed amount enough time must be

allowed for the cheque to be presented through the banking system and rejected if funds are not

available to cover it. Remember a cheque takes 10 days to clear and you can only withdraw the

money after 10 days.

Credit Card

Tour operators also accept visa, Access, Master Card, American Express and Diners Club Cards in

payment for holidays. Before accepting the card, however they will want to get authorisation

from the issuing company. The authorisation number must be recorded on the credit card form.

Credit cards are particularly useful for late bookings where immediate payment is required. The

tourists can even arrange payment over the phone, in which case tickets can only be dispatched to

the address at which the card owner is registered as living.

Since the card companies charge commission for use of their cards, tour operators may be

choosy about which ones they accept. In theory they can charge someone paying by credit

card more than someone paying by cash or cheque, to cover the commission. If a pre-payment is

done overseas it is a good idea for you or your guide to take an imprint of the card and their

signature on their arrival at the airport. Explain that no more charges are being made, but the

banks are requiring these procedures – you give them a copy of the original invoice at this time.

As a tour operator you can also apply for a credit card for your business. This makes payments

easier. You have to apply at your current bank for the card which will be issued after review. It

will cost you approximately R85 initially, after which you will pay interest as you use the money in

your account.

An example of a credit card authorization form.


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I __________________, authorize Potluck Tours to use my credit card no:

____________________________ expiry date _______________________________

3 digits at the back _________________________

For payment of R _____ - ___.

for the ___________ on the ____/__/2018

The amount should be paid on budget of ________

Or Straight

Your Name: ____________________________

Your ID: ____________________________

Contact number: _________________________

Signature: ____________________________

Date: ____________________________

Potluck Tours PO Box 17, Pot ‘O Gold, 1717, Johannesburg. Tel: +27 11 171 7171/ Fax: +27 11 171 7172 e-

mail: [email protected]


CREDIT CARD AUTHORISATION

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Direct transfers

The technology of today makes bank payments easy. Payments can be made directly from one

account to another anywhere in the world.

Inform customer of delays

In the travel and tourism industry changes are a common occurrence. Confirmation of

reservations and amendments to times of departures and costs of reservations are just some of

the changes that may occur. Clients must be advised as soon as possible of any change to the

itinerary. This will include:

Confirmations as they are advised

Rescheduling of flights by the airlines – advise the client of the new times;

Unavailability of requested reservations, such as accommodation and activities

An informed customer is a happy customer. As a small tour operator you must always ensure that

the tourists are aware of any delays as well as the reason/s for the delay. Keep them up-to-date

with information and ensure that they are comfortable for the time being.

Changes in schedules

When extraordinary circumstances necessitate changes (e.g. emergencies, weather conditions,

etc.) it is important to agree with the group about the changes and explain fully the reasons for

these changes. One can discuss the changes with the group and determine their general feeling

about them and act according to that. The mere fact that one or two people are complaining

about the itinerary is not sufficient ground for changing an itinerary (even if one of them may be

the tour leader). When people are very dissatisfied with the itinerary or were misled about some

of its details, it is often possible to soothe people by adding a few extra attractions, but it is always

problematic to change the itinerary or to leave out some attractions.

Invoice and Receipts. At what stage do you send out an invoice? You only send out the invoice when your clients have booked and confirmed the booking. If there is a deposit you will send out an invoice and again when final payment is due. You can send out one invoice stating the deposit and the balance. It is your responsibility to make sure your client receives it and pays the amount stated on the invoice.

The format of your invoice and receipt will be your choice. There are many examples of invoices and receipts. Many companies do theirs by computer and others use the manual system. To make things easy for yourself, make sure the invoice is in triplicate: One copy for the client.


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One copy for the auditors. One copy stays in the office for your records.

The invoice will often also serve as a confirmation of the booking and hence all the information regarding the tour should be on the invoice as follows:

Your VAT number. The invoice number. The date of issuing the invoice. The full address of your company. The address of the pax. Contact numbers of the pax. In the case of a travel agent, their full details. The name of the person making the booking. The name of the passengers. The name of the tour. The dates of the tour. The pick-up and drop-off points. The time of pick-up and drop-off. The type of rooms booked, i.e. single or double. The number of pax travelling. The price of the tour. The deposit amount and date of payment. Any commissions and how much. The name of the person issuing the invoice. Place to write the receipt number. The signature.

Company Registration

A receipt will only be issued to a client once full payment or the deposit amount is received. Do not make these out too early; a dishonest client can keep this against you. The receipt should be made out in duplicate: One copy goes to the client. One copy stays in the office for your records.

You need not send a copy of the receipt to the auditors, once you have made out the receipt write down the receipt number on the invoice, and write the invoice number on the receipt. It is very important that these numbers correspond. If you keep to this system you will make life very easy for yourself.

The following points should be on the receipt:


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Full address of your company. Contact telephone and fax numbers of your company. Date of issuing. The name of the client/person paying. The full amount in words. The amount in figures. Place for the invoice number. Method of payment. Signature

Filing. The filing system in your office will be entirely your own choice. By law you should keep records of all legal documents for at least 5 years. Other paperwork I would suggest you keep for 2 to 3 years. Don’t throw papers away! Here are some ideas for your filing.

When you do a quote for a client and they do not accept it, file it. Why? A client often comes back months after the quote was issued and wants to change it or wants the same quote. To save a lot of time, send it again or at least have it handy to work on. File the quotes in alphabetic order, either with the name of the travel agency or the client’s name.

When you have a confirmed booking, always open a file with all the paperwork in it. Once the tour has been completed file it. If the file is a thick one, use a brown envelope and mark it with the name of the tour, and put all the paperwork in the file. You can always refer back to these. It will be either for reference on the hotels used, or the client may call you after 2 years and ask for the same tour and same Tourist Guide.

When you have paid a client by depositing the money into their account, fax them the deposit slip, and file copies of these slips in a file. File all your cancellation faxes. When your Tourist Guide returns from a tour, file all papers such as the expense sheets and the tour evaluation forms which the pax filled in.

It might be a good idea to register for VAT and have a VAT number. Like any business you will be able to deduct many things at the end of the financial year. If you become a member of SATSA, you will be asked to hand them an auditor’s letter with your application. Everybody will do his books his own way. Here are a few ideas on how to make your bookkeeping easy.

When writing out cheques, keep track of the amounts and what you are paying for. Add the invoice you are paying to this information sheet. This will help to keep track of cheques and this can also serve as an easy way of reference should anybody need information on payments. The following should be on the list;

Date.


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Cheque number. Amount on the cheque. To whom the cheque is made out. A description of the payment. Space for the tax.

The same will apply to all payments you receive; keep track of them. When clients pay you, either directly into your bank account or by credit card, it will show on the bank statement and to keep track of all these payments, you need to write down who is paying you and what they are paying you for.

The following should be on the form: Date of payment into bank account. Full amount shown on bank statement. Place to write the receipt number. Place to write down the name of the person paying.

These simple methods of keeping track of monies received and paid out will make life much easier.

ISSUED CHEQUES – SUMMARY

Date

Chq #

Description of Payment – paid to VAT Amount

Total:

PAYMENTS TO YOU

Date Paid by Description Receipt No. VAT Amount


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whom

Total:

OVERSEEING OTHER MATTERSOwning your own vehicle/s can be a major cost factor and must be managed in a very professional manner.

The following is an indication of the different types of costs that are applicable to the operating of a vehicle:


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Fixed costs Variable costsLicence TyresInsurance Fuel / OilSalaries MaintenancePermits ServicingHire Purchase payments

The above cost factors play an important part in any pricing policy and you have to know exactly what the influence is of each when a quote is prepared.License. This is paid annually.Insurance. Unfortunately this fixed cost is very expensive but you dare not operate

without comprehensive insurance that includes public and passenger liability. It is a good idea to rely on a reliable broker to look after this problem.Road permits (passenger carrying permits). This is not a major expenditure and once you qualify for permits they are valid for 4 years.Hire purchase repayments. The repayments are usually fixed for the duration of the Hire Purchase Agreement. However they must be considered an important part of any pricing strategy.C.O.F. or Certificate of Fitness. Any public vehicle has to be tested and inspected annually at a registered Vehicle Testing Station. The cost of the C.O.F. is approximately R220 per year.Tyres. This is one of the most expensive items on your vehicle and has to be managed very carefully. Use a reliable Tyre Centre that guarantees its workmanship. Check the prices regularly and build a good relationship with the company. Eventually it should pay dividends and effect savings on tyre costs.Fuel / Oil. This is your biggest operating cost and must be controlled very carefully and all fuel receipts must be balanced on a weekly basis with the kilometres travelled. Do not hesitate to increase your rates whenever there is a fuel price increase, unless you Want to subsidize the customer, which will eventually lead to heavy losses.Maintenance and servicing. Once again – it pays to stay with one reliable service centre. Build up a good relationship with the workshop manager and do not hesitate to discuss any problems with him. The guarantee on workmanship will pay its dividends.General. To operate a vehicle is extremely costly – the vehicle becomes the total cost centre. All costs related to your business are to be channelled to the vehicle and the Total pricing strategy must be developed from that basis.Appearance / condition. A clean vehicle always makes a good impression. Use a good air-refresher before picking up passengers. A ‘Sta-Soft’ refill placed under the driver’s seat will give off a pleasant perfume for a long time. Regularly clean the inside during a tour – it shows respect and care for your group and they will definitely take note.

If you look after your vehicle you can also expect to get a good resale price. Your vehicle is your business and without it you are stranded. Look after it carefully.Safety. Road safety is the number one priority. New legislation stipulates that busses and kombis carrying people for reward may not travel at a speed in excess of 100


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Km/ph.Documentation. The following documentation must be carried in a file in your vehicle and must be available for scrutiny by a traffic officer on demand.

Your valid Road Transportation Permit. Copy of your Insurance cover. Itinerary for the tour.

NB – Remember you must have your PDP-License available on your person at all times (valid professional Drivers Permit)


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