Lectures notes 26.1-16.3.2007

LESSON 26.1.2007

Tourism development=the government provides funding for development (infrastructure development)

Master plan=plans for creating new fields for tourism in different regions, it is not possible to set up a hotel just anywhere without a master plan (environmental research and so on)

The government encourages businesses by lower taxes and so on

Exporting services; the tourist brings the money themselves

Image affects pricing

Air traffic

• 10 million people in the air all the time
• Mostly Northern Atlantic and inside Europe and North America but also China is increasing
• An African flies an average of 40 km in his/her life, while Europeans fly 40 000 km
• Airlines now enterprises, in the past national carriers
• There is regulation of market areas, can not be too big
• 100 million tourists travel yearly to the Northern Mediterranean

• Tourism market is increasing all the time - richer people go to poorer countries
• The biggest nation is slums and the second biggest is tourists (every 7^th person)
• Money goes where the biggest interest is-->price products to get money-->according to interestàthe more interest, the higher the price
• Home market=inside market (US got everything; mountains, beaches, casinos…)
• But biggest business-->tourism=foreign money
• Brazilians no. 1 goers to US
• Governmental regulations (free access, visas…fingerprints to US)

LESSON 2.2.2007

Product pricing based on market economy

• Before -91 no market economy in Soviet Union, cheap to travel to exotic places (promotion)
• North Korea nowadays the same

Cuba-->Spanish investors

Companies always have strategic planning on the market

• The art of war-->long-haul plans-->master plans for <10 yrs
  

Business idea

• To make money but how (e.g. McDonald’s idea to be the biggest hamburger chain, service as efficiently as possible)

Business plan/product placement on the market (what products to place)

• Product placement always has an impact on the price
• For example, Ferrari=for the few and the rich, no intention or need to sell many
• Other may concentrate on cheap as business idea based on that
• Products, images, values

Different markets

• Finland—democratic buying culture, no one has luxury thingsàgoes for travel as well
• Russia---big spenders, dress well, eat wellàalso travel in style

Values---->nature friendly, free trade…Christmas, people buy because of values, many things influence

Companies invest to stock markets-->want more money-->in stead of putting money in the bank, people invest in the stocks

History of price and money--->Security didn’t matter when price was low

Margin=profit

LESSON 16.3.2007

FAM trip= familiarization trip

• a travel professional invited by the promoters to get to know the destination
• they want to get the money out of the finnish market
• also negoating with airline, airline is paying for flights in business class

CRM=Customer Relationship Management

• The company knows their customers already and prices for loyal customers are different than on the market in general

Important to understand the cost of distribution

Assignment 16th February

Assignment February 16th 2007

To: MTO46G@myy.helia.fi

Ref. Request for an offer

Dear Professionals to be

We are a group of 4 ladies from Finland and we would like to you to make us a travel plan as follows:
March 1st Helsinki – Brussels
March 7th Brussels – Helsinki
Accommodation in 2 twin and 2 singles on the area of Ardennes, situated near Luxembourg. Please suggest a comfortable hotel. We would also need a car, pick up at Brussels Apt 1st March and leave the same place 7th March.

Best regards

Ms Ms Ulla-Maija Rouhiainen
Lainlukijantie 42, 00690 Helsinki
ulla-maija.rouhiainen@kolumbus.fi

-----------------------------------------------------------------------------------

MATKA OY
Annankatu 10, 00100 Helsinki


Dear Ms Ulla-Maija Rouhiainen

RE: YOUR REQUEST OF A TRAVEL PLAN TO ARDENNES

We thank you for your request of a travel plan to Ardennes on 1 March to 7 March and are pleased to quote you the following:

Flights

Ryanair
1 March Tampere 16.55 - Frankfurt Hanh 18.25
7 March Frankfurt Hanh 12.55 – Tampere 16.30
Total € 312, 32

Hotel

AC HOTEL ARLUX ARDENNES - ARLO

6700 ARLON, Rue de Lorranine

Tel: 63-232211

Double room € 33 per person incl. breakfast, € 66
Two single rooms, supplement € 27 per person, € 120
Total € 186

Car rental

(VW Lupo)
Starting 1 March 12:00, ending 7 March 12:00
Pick up at Frankfurt Hanh Apt included
Total € 172,80

The total cost of the trip is € 671, 11

Please do not hesitate to contact us if you have any questions or queries.

Looking forward to hearing from you soon.

Yours sincerely

Sales Director

MATKA OY

Assignment 9th February

VALKERING INCOMNG AGENTS

• 30 years of experience
• Contracts and contacts with suppliers
• Bargaining, negotiating with suppliers -> and you get confidential tariff* of Valkering, easier to organise tour in the Benelux countries
• Concentrating on the Benelux countries, not the whole world

*Confidential tariff is a guideline for the prices
--People can ask for special prices, for example a group paid a deposit but cancel and the rooms offered to Valkering for less money (quota or allotment of rooms)
--Ask for special offers

ASSIGNMENT

1. Go to the site of Dutch Valkering Incoming Agents CONFIDENTIAL TARIFF

http://www.valkering-incoming.nl/index.asp (use password valkering010794)

2. Pick a destination and a hotel

3. Find an airfare

4. Create tour package for a group of 10 special interest travellers (decide their field of interest by yourself)

************************************************************************
A group of nine people want to go to the Netherlands for their Easter break to do a tour of the museums in Amsterdam. There are lots of museums in Amsterdam, for example Van Gogh Museum, Rijksmuseum, Anne Frank's House, The Houseboat museum, Film museum and so on.

ITINERARY

Air fares
APR 04th APRIL 2007 Helsinki-Vantaa 9:30 Amsterdam Schiphol 11:15 (all times local)
APR 10th APRIL 2007 Amsterdam Schiphol 20:15 Helsinki-Vantaa 01:15

244 € + 75 € taxes per adult
Total for nine adults 2871 €

Airport transfer
By train for Schiphol Airport
6.20 € for a return ticket per person
Total 55.80 €

Hotel
BASTION HOTEL AMSTERDAM***
AMSTEL
Verl v M Kooystraat 30
1096 BX AMSTERDAM

The rates for the group are 51 € for a double room and an extra 29 € for a single.
The group needs 8 double rooms and one single room.
Total 488 €

TOTAL FOR TRIP 3414,80 €

Comparing prices

Compare prices on the internet, for example on the following sites:

http://www.sidestop.com
http://www.easyvoila.org
http://www.traveljungle.com
http://www.luftgroup.com
http://www.e-flights.com


Example of return air fares on the sites between Helsinki and London:

www.bravofly.com 263.59 € (188.00 € + 75.59 € taxes) - SAS
Wed 21/02 Helsinki HEL 18:10 -London Stansted 19:10 94.00 € + 37.80 € taxes
Wed 28/02 London Stansted19:55-Helsinki HEL 00:50 94.00 € + 37.79 € taxes

www.luftgro.com
2261 kr (248.84 euros) including taxes - SAS
Alternative 1
Wed 21/2 HEL 18:10 Arrival LON Stansted 19:10
Wed 28/2 HEL 19:55 Arrival LON Stansted 00:50

Different fare for the same flight, from www.luftgro.com almost 20 € cheaper.


Y-airfare=normal economy air fare discount:
-child 50%
-infant 90%
-student
-pensioner
-spouse

Added super sonic extra fare - Concorde
Added 1st class supplement (33,3% extra)

SPACE TOURISM!!
Richard Branson already planning it (Virgin Express airline)
Space Adventures Ltd.

The new clients in travel agencies and at tour operator's desks:

• Business travel
• Special interest travellers
• Adventures, events, educationals, hobbies, honeymoons, guided cultural tours
• "The women of ancient Rome" paying for the quality and the expertise of the guide
• Bird watchers

The correct price is the highest price the client is ready to pay. The bigger "the value", the bigger the profit margin.

Exclusivity as a term of contract - a contract price that no one else has, "only for you"

Product pricing

1. Visit site http://www.finnexpo.fi/matka/

2. Pick your exhibitors and dicuss..

What type of clientele and markets their products are offered to?
What is the price level of different products?
What is the "brand" or public image?


FINNAIR LAUNCHES DAILY FLIGHTS TO OSAKA

Finnair will begin flying between Helsinki and Osaka, Japan daily from the end of May. Finnair’s Helsinki-Nagoya return flights will also increase by one when frequencies are upped to four times a week from mid-June.

The airline doubled its Tokyo flights from two to four a week already last December. Finnair is the only airline in northern Europe with routes to all three most important Japanese cities: Tokyo, Osaka and Nagoya.

Finnair’s long-haul fleet is growing as two new wide-bodied Airbus A340s enter traffic towards the end of spring. Tokyo and Nagoya routes will be operated with the large Airbuses, Boeing MD-11s are used on flights to Osaka.

http://www.finnair.com/web/finnair/scripts/templateLev3ContentById.jsp?BV_SessionID=@@@@1955539122.1170407002@@@@&BV_EngineID=cccgaddkdgklekicfjlcgeedfondgln.0&amp;amp;amp;amp;amp;amp;amp;amp;contentOID=44881&pageid=-8737&RSKey=news_reader


SELECT DATES
Prices starting from:

Helsinki - Osaka - Helsinki

Return Fri 16 Feb Sat 17 Feb Sun 18 Feb Mon 19 Feb

Departure
Fri 09 Feb 1027 EUR 1027 EUR - 1027 EUR - 1027 EUR

Departure
Sun 11 Feb 2544 EUR 1027 EUR - 1027 EUR - 1027 EUR

Departure
Tue 13 Feb 4344 EUR 2544 EUR - 1027 EUR - 1027 EUR

Departure
Thu 15 Feb 4344 EUR 4344 EUR - 2544 EUR - 1027 EUR

Lowest return price for selected dates


Finnair is increasing flights to Asia and it offers good connections to Asia from Finland and the rest of Europe. It is convinient for business travellers doing business in Asia to travel via Helsinki. The geographic location works to Finnair's advantage. The price is not very cheap but Finnair concentrates more on quality and service. The brand is considered reliable and trust-worthy. In general, the public image of Finnair is very positive.