Tips on Tour & Travel Packages

Purchasing a travel package has the advantage of convenience and, in many cases, value. However, because of the vast array of travel packages, you can be confused unless you shop wisely and read the fine print in advertisements and brochures.

This article is intended to provide you with an understanding of the terminology used in the travel industry and to advise you of the steps you can take to avoid problems.

• Brochure--A printed folder describing a tour or a package and specifying the conditions of the offering.
  
• Carrier--Any organization that deals in transporting passengers or goods.
  
• Certified Travel Counselor (CTC)--A degree attesting to professional competence of a course of study by the Institute of Certified Travel Agents. The Certified Travel Associate Degree is awarded to non-agent personnel who have completed the course (see Travel Agent).
  
• Commission--The amount paid by the supplier (carrier, hotel, tour operator, etc.) to the travel agent for selling transportation, accommodations, or other services.
  
• Conditions--The section or clause of a transportation or tour contract (often the last page of a brochure) that specifies what is offered to the purchaser. A condition clause often specifies what is not offered and may spell out the circumstances under which all or part of the contract may be invalidated. (Also referred to as the participants' agreement, terms and conditions, or responsibility clause.)
  
• Confirmed Reservation--An oral or written confirmation by a supplier that it has received and will honor a reservation.
  
• Escort--A person who accompanies a tour from departure to return, as guide, trouble shooter, etc., or a person who performs such factions only at the destination (also known as a "host").
  
• Escorted Tour--Prearranged travel program, usually for a group, with escort service or sightseeing program conducted by a guide.
  
• Escrow Account--Deposit account in a bank maintained by the charter operator that protects passenger funds until services are performed.
  
• Extension--A fully arranged subtour offered optionally at extra cost to buyers of a tour or cruise. Extensions may occur before, during, or after the basic travel package.
  
• Foreign Independent Tour (FIT)--An international prepaid tour, usually unescorted, although guide service is often offered on some segments. An FIT is designed to the specifications of an individual client or clients.
  
• Gateway--City, airport, or area from which a flight or tour departs.
  
• Group Inclusive Tour (GIT)--A prepaid tour of specified minimum group size, components, and value.
  
• Guaranteed Tour--A travel program guaranteed to operate unless cancelled before an established cutoff date (see Conditions).
  
• Institute of Certified Travel Agents--An organization concerned with developing and administering educational programs for travel agents (see Certified Travel Counselor).
  
• No Show--A passenger or guest who fails to use or cancel his or her reservation.
  
• Overbooking--The practice by a supplier of confirming reservations beyond capacity in expectation of cancellations or no shows; or, the same result due to error. Many carriers have admitted that they intentionally overbook their flights because of the high number of passengers who are no shows.
  
• Package or Package Tour--Any advertised tour. Often a tour to a single destination that includes prepaid transportation, accommodations, and some combination of other tour features--meals, transfers, sight-seeing, car rental, etc.
  
• Tour--Any prearranged (but not necessarily prepaid) journey to one or more places and back to the point of origin.
  
• Tour Operator--A company that creates a package tour and/or performs tour services. Most tour operators sell both through travel agents and directly to clients.
  
• Travel Agent--A person or company that promotes and sells transportation and related services, including travel packages.

Air Transportation Terms

• United States Department of Transportation--The federal agency that regulates air transportation to and from the United States as well as within the United States.
  
• Charter Operator--A company that makes all the arrangements to permit individuals to participate on a single itinerary in a public charter and that is directly responsible to the charter participants (see Public Charter).
  
• Direct Flight--Air transportation on which the passenger does not have to change planes. Not necessarily nonstop.
  
• OW--One-way airfare.
  
• Public Charter--Air transportation alone, or air transportation together with hotel and other land arrangements, organized by a charter operator and generally priced below regularly scheduled air service.
  
• RT--Round-trip airfare.
  
• Standby--A conditional status. The holder of a standby ticket is not eligible to board his or her flight until all passengers who have or want confirmed reservations have been accommodated.

Land Terms

• Land Terms--includes those services available to a traveler after he or she has reached his or her destination.
  
• American Plan (AP)--Hotel rate that includes a bed and three meals (see also Modified American Plan).
  
• Bed and Breakfast--Overnight accommodations usually in a private home or boarding house with breakfast included in the rate.
  
• Continental Plan (CP)--Hotel rate that includes bed and continental breakfast (usually at least a beverage and rolls or toast, sometimes juice).
  
• Double--Any hotel plan for two persons; more specifically, a room with a double bed.
  
• Double Room Rate--The full price of a room for two people. (Be careful: Some say double and mean double occupancy.)
  
• European Plan--Hotel rate with bed only; meals extra.
  
• Family Plan--A discount schedule offered by some hotels and resorts to second and successive members of families who travel together.
  
• Guaranteed Payment Reservation--A hotel reservation secured by the guest's agreement to pay for his room whether he uses it or not. Payment is usually guaranteed by a company, travel agent, or tour wholesaler who has an established credit rating with the hotel, or by use of a credit card as a guarantee.

Hotel Classifications

European Hotel Ratings

• Deluxe--Top-grade hotel; all rooms have private bath; all the usual public rooms and services provided; high standard of decor and services maintained.
  
• 1st Class--Medium-range hotel; at least some rooms with private bath; most of the usual public rooms and services are provided.
  
• Tourist (Economy or 2nd Class)--Budget operations; few or no private baths; services may be very limited.
• The Official Hotel & Resort Guide (OHRG), which is often referred to by travel agents, further subdivides these three categories into three groups: superior, average, and moderate. Thus, a deluxe/superior hotel rates with the best in the world and a 1st class/average hotel is about midrange. OHRG says that hotels below its tourist/superior rating should be used with caution by Westerners. In addition, many governments rate their hotels according to the international five-star system under which a five-star hotel is best. Some countries are meticulous and generally current in their ratings; many are not. In general, three-star and better hotels (and a few two-star properties) are believed to be suitable for Western travelers.
  
• Modified American Plan (MAP)/Demi-Pension (DP)--Hotel rate including bed, breakfast, and either lunch or dinner.
  
• Per Person Double Occupancy Rate--The price per person for a room to be shared with another person; the rate most frequently quoted in tour brochures (often abbreviated: pp. dbl. occ.).
  
• Single Supplement--An extra charge assessed to a tour purchased for single accommodations.
  
• Transfer--Local transportation and baggage handling service, as from one carrier terminal to another, from a terminal to a hotel or from a hotel to a theater. The conditions of a tour contract should specify whether transfers are private car or motorcoach and whether escort service is provided.

Also, before you arrange your trip, check with the Better Business Bureau in the city where the company is located. Give the BBB the complete name of the firm in either a phone call or a postcard and ask the BBB for the customer experience record.

• Small Print or Asterisks--Make sure that asterisks or small print are not used as a means of altering the meaning of any advertising statement. Asterisks are commonly used to indicate restrictions--required length of stay, particular days and/or time of departure, or additional charges.
  
• Availability--Make sure that the travel services are currently available at advertised prices. If the travel service at the advertised price is not immediately effective, availability should be stated in the advertisement.
  
• Extra Charges--Any extra charges such as port taxes, service charges, or single supplement charges should be clearly and conspicuously disclosed.
  
• Features--If the brochure/advertisement states, for example, you can play golf or you will be able to visit an amusement park, it does not necessarily mean that these attractions will be included in the travel program for the advertised price. Make sure to look for the following:
  • What features are included in the package price:
    • airfare
      
    • hotel
      
    • transfers
      
    • sightseeing
      
    • gratuities
      
    • baggage handling
      
    • meals
      
    • mileage charges (where a car rental is involved)
      
    • The total number of nights in each city and hotel, as well as the amount of free time you will have on the tour.
      
    • The daily itinerary/schedule of events.
      
    • The name of each hotel and the type (grade) of accommodations offered by each.
      
    • Whether the tour is escorted and, if so, to what degree.
• Conditions--You should pay special attention to the contents of the "conditions" clause, usually found in fine print on the last page of the brochure.
  • How firm is the price (i.e., does the tour operator have the right to increase the fare)?
    
  • What are the cancellation penalties? What is considered a valid reason for either you or the tour operator to cancel the trip?
    
  • What are the "major changes" under which a tour operator will give you a full refund?
• Abbreviations--Common abbreviations used in travel ads and brochures include:
  • AP--American plan
    
  • CP--Continental plan
    
  • dep.--departure date
    
  • FIT--foreign independent travel
    
  • GIT--group inclusive tour
    
  • MAP--modified American plan
    
  • OW--one-way
    
  • pp.dbl.occ.--per person double occupancy
    
  • RT--round-trip
    
  • single supp.--single supplement

1. If you book your vacation through a travel agency, what is the name and address of the tour operator?
   
2. Has the advertised price changed? Do the charges you pay match the charges you expected?
   
3. How far in advance is full payment required?
   
4. How much deposit is required?
   
5. Is there an escrow account? To whom is payment made? (If you have to sign a contract, make sure it specifies that you pay directly to the escrow account at a bank. Also, ask to know the name of the bank in which the escrow account is maintained.)
   
6. What is the confirmation procedure? (Warning: Confirmations have limitations--for example, a hotel is not obligated to honor a reservation if the guest arrives after 6 p.m., unless late arrival is specified. However, if the reservation is guaranteed, then that hotel is obligated to honor it.)

Reprinted with permission from the Council of Better Business Bureaus, Inc., 4200 Wilson Blvd., Arlington, VA 22203.

CONSUMER PROTECTION PLAN INFORMATION -- provide by Prism Holidays
We are a company that specializes in tour packages for the mature adult. Many things that you mention are quite good for the senior to look for. You left out some important items including the most important that a tour operator has a consumer protection plan. While there are not guarantees in life, a consumer protection plan is one of the best ways to assure a client that the company is financially sound. There are three major tour operator associations that are internationally accepted. Membership standards are all substanial. They are:

1. National Tour Association (NTA): Members must have at least $1,000,000 over the road insurance and be in business for at least 2 years operating tours. Along with this membership is a $250,000 consumer protection plan.

2. American Society of Travel Agents - Tour Operator Plan (ASTA's TOP): Approx. 65 tour operators around the world belong to this plan that is the equivalent of ASTA's good housekeeping seal of approval. ASTA is the world's largest travel trade Assoc. To be a member you must meet strict standards including an approved consumer protection plan.

3. USTOA: This is for the big national operators that promote to travel agents. They have a one million dollar consumer protection plan.

You should also know that many travel agents have no idea how good a tour operator is. Until the airline commission caps, many agents did not promote tours. With the airline commission caps travel agents have been forced to chase the highest commission offered to them (range from 10% to 22%). Major tour opertors are becoming more demanding in getting the travel agents loyality. Globus one of the largest has just put into force a minimum booking for an agency to get there important override commission that most agents get through their consortium (a group of agents belong to for the purpose of receiving higher commission from select suppliers ie. MAST, GIANTS).

The client should ask the agent if the travel agent is getting an override commission with any supplier they are recommending.

Information on Consumer Protection Plans provided by Rick Hazan -- prism@interaccess.com. Prism belong to ASTA's TOP and NTA.