Tour Operations and Package Design Flashcards
7 cards from real TMC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Tour Operations and Package Design flashcards as text
What is a 'Destination Management Company' (DMC)?
Answer: A local specialist company that provides expert knowledge and logistical support in a destination
A DMC is a professional services company with deep local expertise that provides logistical support including transportation, accommodations, activities, and on-the-ground coordination.
In tour costing, what does 'breakage' refer to?
Answer: Services included in a tour package that travelers do not use, resulting in savings for the operator
Breakage refers to prepaid tour services (such as meals or transfers) that travelers do not use, representing an unexpected cost saving or windfall for the operator.
What is a 'familiarization trip' (FAM trip) in the travel industry?
Answer: A subsidized trip offered to travel agents or media to experience a destination firsthand
A FAM trip is a complimentary or heavily discounted trip offered to travel agents, journalists, or influencers so they can experience a destination or product and promote it more effectively.
What does 'series tours' mean in tour operations?
Answer: Regularly scheduled departures of the same itinerary throughout an entire season
Series tours are tours that depart on a regular, repeating schedule using the same itinerary throughout a season, enabling operators to negotiate contracted rates with hotels and suppliers.
What is 'yield management' as applied to tour operations?
Answer: Adjusting pricing and seat or room availability dynamically to maximize revenue based on demand
Yield management involves dynamically adjusting prices and availability based on booking patterns and demand to maximize total revenue from a fixed capacity.
What is a 'step-on guide' in bus tour operations?
Answer: A local expert who boards the tour bus at a specific stop to provide specialized destination knowledge
A step-on guide is a local specialist who temporarily joins a tour group at a specific destination to provide in-depth expertise beyond what the main tour director can offer.
What is a 'net rate' in tour operations?
Answer: The wholesale price offered to tour operators before markup, without any commission
A net rate is the confidential wholesale price a supplier offers to a tour operator, which the operator then marks up to establish the retail selling price.