Text 1. Tour operators

Tour operators can be considered the wholesalers of the industry. Their product, which is a service, is the packaged tour.

Packaged tours offer transportation, hotel accommodations and transfer to and from the airport. The tourist pays a lower price for this package than if he were trying to make all the arrangements on his own.

In addition to the basic features, the tour package may also offer meals, entertainment, sightseeing, a rental car and many other extras.

The first tour in the modem sense was put together by Thomas Cook in 1841. Cook was soon offering tours all over the world, and the idea gained acceptance very quickly not only in England but also in other European countries and in the United States.

The firm of Thomas Cook and Sons has remained a major force in the travel industry, despite the number of changes in ownership. The great increase in tourism that took place in the 1960s, especially in Europe, was in part the result of the emergence of a number of firms whose chief business was packaging and operating tours.

The typical package that the European tour operators put together consisted of the least expensive two-week holiday tour. It was primarily intended for northern Europeans who wanted a Mediterranean vacation. As the competition among the operators brought prices down, many people who had never travelled before were encouraged to try a trip abroad. Both tourism in general and the tour operating companies themselves expanded very quickly.

The rapid expansion, however, has also resulted in many changes in management and methods of operation for the firms in the business. A sounder financial base became necessary, since tour groups were sometimes left stranded because tour operators did not have sufficient cash to pay the price of the aircraft charter.

Tours are also arranged for employees and their spouses by corporations. The corporations typically offer these vacation trips as a reward for superior sales effort or as an incentive to improve performance. This type of tour is not open to the general public, but it is welcomed by the airlines and by hotel operators in the established resorts that frequently attract business of this kind.

It is possible to distinguish between two general types of tours. One is the holiday package that has a resort hotel as its destination. While local sightseeing or entertainment may be included in the package, the tours are generally of the " no frills " variety — in other words, without expensive extras. The major attractions usually include sun, sea and activities such as golf or tennis that are offered by the resort itself. Local colour is not important — many holiday-makers are hardly aware of what country their hotel is in.

The second is the guided tour that features sightseeing or some other special attraction. These tours are accompanied by a guide who is in charge of travel arrangement and activities. The activity offered by the tour is its principal attraction. The tour may combine travel with education. Most of these tours include several different destinations and a good deal of local travel within one region. Thus, they require careful arrangement and coordination of accommodations, local transportation, luggage handling, and all the other details that accompany any kind of travel.

The person who leads such tours is the tour guide. He is multilingual, he relates well to other people, and he deals with the variety of problems that arise not only in making travel arrangements, but also in carrying them out.

He deals with the problems of lost luggage and unsatisfactory hotel accommodations, with rainy days and fatigue, with sudden illness, and with interpersonal problems that arise among the members of the group.

There are many advantages in the packaged tours, the most obvious being the price. When airplane tickets and hotel rooms are reserved in blocks by the tour operators, considerable savings are passed on to the customers. Many people would never travel at all without the price inducements offered by packaged tours.

A second advantage is the opportunity for tourist to make all his travel arrangements in one place at one time.

The independent traveller — one who does not travel as a member of a group — often has to go to considerable trouble to put the different pieces of his trip together. Airline seats may not be available when he wants them, or he may not be able to secure the hotel accommodations that he wants.

Even when a travel agent makes the arrangements, these difficulties still exist. The tour offers convenience as one of its inducements. A third advantage can be summed up in the term accessibility. Tours make it possible for people to visit many remote areas that would otherwise be too difficult for them to try to see on their own. Tour operators have made countless places throughout the world accessible to the general public.

Task 1. Find in the text answers to these questions:

a)Why are tour operators considered wholesalers of the tourist industry?

b)What do packaged tours offer?

c)When was the first packaged tour put together?

d)How did the emergence of a great number of tourist firms influence tourism in general?

e)What was the result of the competition among the tour operators?

f) What did the rapid expansion of tourism lead to?

g)What types of tours does die text mention?

h)What is the difference between a holiday package and a guided tour? I

i) What qualities does a tour guide need? Why?

j) What are the advantages of a packaged tour?

Task 2. Sum up what you've learned from the text about:

1.the services offered by packaged tours;

2.the history of development of this kind of tourism;

3.different types of packaged tours;

4.the job of a tour guide;

5.the advantages of packaged tours.

Task 3. Think and answer:

6.What do you think are the disadvantages of packaged tours?

7.Why are tours less expensive than individual / independent travelling?

8.How are packaged tours developing in Russia?

1.What do you know about the services offered by packaged tours in Russia?

2. Are customers satisfied with the quality of tourist service? Why (not)?

3.Is there a tough competition among tour operators in Russia?

4.If so, what is the result of such competition?

5.What is the best known tour operator in Russia?

Step 4

Listen to the conversation between a reporter for the financial pages of a British daily newspaper, and Mike Butler, a financial consultant

R. — Reporter M. — Mike Butler

R. Can we begin by talking a little about the market in general? Can you explain what is really happening?

M. Yes, of course. There's been a lot of speculation this season and that's because the British.public's holiday-buying patterns have changed. They are more sophisticated in their choices, they make them later and later. So tour operators have to decide whether to stick to their brochure prices or to discount.

R. So what are they doing this year? In May we heard that there was likely to be a price war and that we should wait before buying our holidays as prices plummet. However, this doesn't seem to have happened yet and we are already into July.

M. True. In May and June there were a couple of weeks of highly selective discounting to try to boost sales at a time when there was talk that about 3 million package holidays were going to be sold off at half price. At the time, the early indications showed there was unlikely to be the 5 per capacity growth predicted at the beginning of the year. But now, there are some who privately admit that sales may well be 2 per cent below last year's 9,5 million figure. However in the main, the operators are refusing to panic and are hoping that heavy discounting won't be necessary. Now that we're into July it's easier to see how sales will fare. You see it's more or less agreed that an estimated 2.2 million package holidays remain unsold for the remainder of the season. Almost all of them will be sold, but operators may have to squeeze margins to cut prices well below the brochure rates. How far depends on how keen we Britons are to part with our money. An estimated 35 per cent of families now buy package holidays and since the price wars of ten years ago many families have become used to late booking. So the operators have a choice between sitting tight, discounting or reducing capacity. The last is difficult at this late stage so I do think we will see some discounting, but none of the operators want to get into cutting prices down to silly rates. They're also reluctant to admit that there are still a lot of holidays for sale, because that would encourage the public to hang on as long as possible.

R. Then we should wait as long as possible before buying our foreign holidays. What about holding on to our shares?

M. Well I wouldn't sell at present, nor would I buy. I'd wait and see. Before we talk about the stock market let me outline some longer-term considerations.

First, you must remember that last year the City considered the early launch of brochures a mistake, as it meant that travel agents were trying to sell this year's holidays to people who hadn't yet taken last's.

Secondly, the industry is also worried that overseas hoteliers may push up next year's prices. At present, the cost of accommodation is rising at three times the level of our inflation.

Soon the industry is going to be forced to pass on this increase to the consumer.

So, it would appear that the first priority is going to be cost and not service; that the market leaders next year will be those who can produce the cheapest holidays.

And who is this likely to be?

Well, as I said, I'd hold on for the moment. We must take into account that about 70 per cent of this market belongs to the three big operators. If we look at how their shares are faring at the moment on the open market…

Note the following words and expressions from the interview:

speculation, n	размышление; предположение; теория наудачу
on speculation on spec	с расчетом на выгоду
sophisticated, adj	изощренный; искушенный в житейских делах, опытный
to plummet, v	резко пойти вниз; упасть (о ценах)
to boost sales	способствовать росту, увеличению продаж
to boost, v	поднимать; помогать подняться; повышать; способствовать росту
early indication	первоначальные показатели
capacity, n	вместимость; емкость; возможность; мощ­ность; производительность
to estimate, v	оценивать; давать оценку; составлять смету, подсчитывать приблизительно; прикидывать по предварительным расчетам
estimated, adj	предполагаемый; расчетный
to remain, v	оставаться; пребывать в прежнем состоянии
remainder, n	остаток; остальные
to squeeze margins to cut prices well below the brochure rates	им придется урезать прибыли и снизить цени намного по сравнению с теми, что указаны в брошюрах
to part with	расставаться (с деньгами); платить
reluctant, adj	делающий что-л. с неохотой; вынужденный, сопротивляющийся чему-л.
a share, n	акция
the stock market	рынок ценных бумаг
to outline, v	обрисовать; наметить в общих чертах; кратко; описать
early launch of brochures	ранний выпуск рекламных брошюр
to launch, v	спускать судно на воду; начинать; пускать в ход; предпринимать; запускать

Task 1. Read and translate the interview.

Decide If these statements are true or false.

b)Holiday prices fell in May.

c) Three million holidays were sold at half price.

d)Last year tour operators sold 9.5 million holidays.

e) This year more holidays will be sold.

f) Over a third of British families go on package holidays.

g)Travel agents only sold this year's holidays to people who hadn't had a holiday in the previous year.

h)Accommodation prices are rising faster than inflation.

i) Each of the big tour operators has 17 per cent of the market.

Task 2. Listen again to the interview and speak on the following topics:

1. Patterns of sales;

2. Number of sales;

3. Unsold holidays;

4. The industry's concerns;

5. Likely outcomes.

Task 3. Write down a report using the Information from the interview.

USE THE PROMPTS BELOW: