Significantly, according to a membership survey by the National Tour Foundation (NTF), a subsidiary of the NTA, most tour operators' marketing strategy is oriented to product development (developing new products for current customers) and market development (finding new customers for current products). Few focus on market penetration (selling existing products to current customers) or diversification (creating new products targeted at new markets), but these represent growth areas for the future.
The industry is made up of a few large firms with a substantial number of employees and hundreds of smaller enterprises with fewer than 10. Most tour companies are relatively small: More than two thirds have annual gross sales of less than $1.7 million; nearly one fourth are midsized with sales from $1.8 to $7.5 million; only 8 percent have sales of $7.5 million or more, according to the NTF membership survey. The vast majority (of NTA members at least) have been in business for 10 to 16 years.
The average company usually employs 4 people plus 2 part timers, operates 81 tour departures, and handles 2,500 customers a year. The largest companies employ more than 200, operate 10,000 departures, and handle 100,000 customers a year. The vast majority draw their customers from within their local area; but nearly one fourth of all customers come from far away, making it necessary for operators to have links with travel agents.
The field is becoming more professional (less "Mom and Pop"), along with most segments of the travel industry. In the domestic tour business, too, there are some consolidations into larger corporations (but not to the same degree as in other segments), greater sophistication in business operations, and more automation. Automation is playing a growing role, making management more efficient by enabling managers to keep track of reservations, how tours are selling, load factors, and the like.
Domestic tour operations is also becoming much more sales and marketing oriented. Field salespeople are being hired to call upon travel agents and groups (senior citizens clubs, church groups, and schools).
Though there tends to be little turnover of staff (less than 1 percent), considerable mobility exists within companies, probably more so than in international tour companies, mainly because domestic tour companies are not yet large enough to hire specialists; they hire generalists instead. It is common for tour escorts to rise within the company to the highest levels.
According to the NTF survey, no consistent effort is made to recruit managers and employees with previous experience and provide them with competitive wages and incentives. This field is still one where people can get in with relatively little experience; however, salaries reflect it. Consequently, people can stay in a company, taking on enormous responsibility, and still earn modest salaries. Consider the following examples:
- A woman with 12 years of experience with a company, rising up from a clerk typist to operations manager, was earning $30,000.
- The director of operations for a company, who rose up from a tour escort over a seven year period, was making $30,000.
- Another person, with 11 years with the same company, rising from air tour coordinator to manager of tour development, was making $25,000.
- Another person, who was with a company for six years, rising from tour escort to supervisor of tour and development, was earning $23,000.
- The vice president and general manager of a company, with 24 years at the company, was making $47,000.
President only 52 percent earn over $40,000, 17 percent earn $30,000 to $39,000, and 20 percent earn under $20,000.
Vice President 42 percent earn over $40,000.
General Manager 24 percent earn over $40,000, and 38 per cent earn between $20,000 and $29,000.
Operations Manager 41 percent earn between $20,000 and $29,999, and another 32 percent earn between $30,000 and $39,999.
Sales and Marketing Manager only 8 percent earn over $40,000, 30 percent earn $30,000 to $39,999, and 39 percent earn $20,000 to $29,999.
Reservations Manager only 4 percent earn over $20,000, 33 percent earn $15,000 to $19,999, and 62 percent earn under $20,000.
Tour Planner only 7 percent earn over $30,000, 27 percent earn $20,000 to $29,999, and 53 percent earn under $20,000.
The rewards, however, come from having considerable responsibility, the diversity of tasks, the product, and the people you deal with. What compels people to stay? As one tour professional exclaimed, 'In the tour business, you work with all components of tourism-hotels, restaurants, events, attractions, destination marketing organizations. You never get bored!"
Inbound and Reception Services, Ground Handlers, and Sightseeing Companies
Americans generally think in terms of outbound travel and rarely realize that there are people at the other end to service the travelers with transportation, sightseeing, and other facilities. Those that handle incoming visitors, coordinating their stay and escorting them about, are called "inbound," "reception services" or "ground handlers." Most U.S. travel agencies are solely involved with sending visitors out from their areas to other states or countries, whereas most foreign travel agencies handle both outbound and inbound services. In this country, reception services are usually carried out by specialists, though many travel agencies are moving into the field.
Handling reception requires some specialized skills and services multilingual guides, for example, and contacts with travel agents abroad for handling foreign groups. But groups also come from other parts of this country. The key ingredients are a thorough knowledge of your locality and contacts with local attractions and facilities.
A Coral Gables, FL, agent, for example, handled a group of Norwegian zoo owners who were visiting to learn about facilities for captive animals in southern Florida. Besides arranging visits to such facilities, the agent also had to coordinate matters concerning passports, visas, lost luggage, and sickness among the tour members.
