Tour Operators and Excursions

planner

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Sep 23, 2002
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Does this belong here? I am not sure but I put it here.

I've taken the liberty of quoting "Bodders" from another thread. We met this week and spent the afternoon together. He & his wife told me some things and I encouraged him to report it in the Holiday Village thread. But I think it deserves its own thread! Here is what he said:

"First Choice are being VERY heavy handed & ruthless on the subject of excursions here. They have stopped ALL other excurion companies from collecting clients from the reception area. One has to walk out past perimeter security now to meet these tours. In their list of trips First Choice state the following too: 'we cannot accept any responsibility for illness, injury or death caused as a result of participating in a PIRATE excursion'. This comes after a long passage of text designed to scare you off all other tours & there is even the hint that your holiday insurance will be void if you don't use their tours. THIS IS OUTRAGEOUS & BACK IN THE UK THEY COULD BE SUED FOR THIS APPROACH!

We booked tours through Martin Espinal. Isaira Tours - Dominican Republic & got Martin to send his list of tours, prices, etc before we left the UK. He is a very helpful & honest man who appears to have a very good reputation here for carrying out good works for needy causes. His tours are insured & I would recommend anyone to use him & boycott First Choice so far as tours are concerned"


He gave me more details when we were out but this is more then enough to get some discussion going.

I personally am appalled by this behaviour. I understand the need to make money and earn your commissions but I strongly object to the way it is done. I visited many times as a tourist and heard different versions of this from tour reps from a variety of companies. Let's not just pick on First Choice and Signature - the others do it too.

What do others think? To our recent visitors - what were you told in your briefings?
 

Hillbilly

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Jan 1, 2002
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This is just how POP screwed itself onthe cruise line visits. They started to try and create monopolies, had fights in the streets over who was going to take who on a tour of the ratty old town (80s POP), and created such a wave of disgust within the cruise industry that people started to prefer going to Cap Haitian instead of POP.

Good Work First Choice!!! Keep it up,. In a little while you will all be out of freakin' jobs....

HB
 

planner

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Sep 23, 2002
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The competition for the tourist dollars is so intense but they are going about it the wrong way. Service by the tour operators is declining as well as pay to the reps. They only way for them to make money - so I am told - is to sell tours! All the focus is on selling and little customer service which is supposedly what they are there for.

I personally know several reps who are excellent at their jobs. They really care and do the best for their clients but they are under the thumb of management!

It is pathetic and does little to enhance the tourism industry here, an industry in heavy competition globally!
 

maggiemay

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Aug 31, 2002
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Its good to remember that the local agents of any British Tour Operator must have a minimum of US$2,000,000.00 (Yes thats dollars) liability insurance which umbrellas any excursion / transport supplier they use while the small "pirates" or direct excursions usually have only around RD$1,500,00.00 pesos in liability insurance.

Prices of package holidays are kept down as excursion sales offset operational costs..in otherwords if theres no income in resort you will just pay a higher cost for your package holiday / Flight as the money has to come from somewhere.

No I don't work for a tour Operator, but I have in the past. I have also had to deal with deaths, injuries, hospitilisations etc when my passengers went on an excursion bought on the beach or at a pirate sales place and had no help from the owners of the excursion who mysteriously dissapeared into the paintwork as soon as the accident / death happened. I speak through experience, and no, I'm not trying to sell you a tour.

In the end it's the clients choice.....liken it to renting a car with full insurance or renting it with the minimum insurance.....You buy an excursion with a Tour Operator and have peace of mind but it will cost you extra, or you go to the beach and don't complain when something bad happens.


That's all I have to say on that
 

planner

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Sep 23, 2002
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Maggie - That is good information to have posted here, thank you.

I agree with the difference between fully licensed and insured tours and "pirates". It is in every visitors interest to make sure they understand what they are buying and who they are dealing with.

I have two comments on this:

1. If a client buys "Freestyle Catamarans excursion" via First Choice (for example), then they are insured. IF a client buys "Freestyle Catamarans Excursion" via any other distributor suddenly they are not insured? I think not. That does not wash with me. The excursion operator is the same company. Only the distributor has changed!

2. Clients who buy tours and excursions at destination are supposedly subsidizing the prices of all packages sold? Again, I think not. It is just another source of revenue to the Tour Operators. To suggest they use this revenue to keep prices down I believe is incorrect. Are they in the business of selling vacation packages or are they in the business of selling excursions? IF they are in the business of selling both then they need to operate on an honest level - not fear mongering but competing for business in an upstanding way.

I also want to comment that I really understand what you say about the Representatives having to deal with the fallout of clients being injured, sick etc. NO matter how or where those illnesses or injuries or god forbid death occurs it falls to the reps shoulders. However, isn't that the reps job? OR at least a large part of it to provide services to the client who bought the vacation?

In my opinion most reps do a good job and are underpaid for what they do!
 

Lambada

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1. If a client buys "Freestyle Catamarans excursion" via First Choice (for example), then they are insured. IF a client buys "Freestyle Catamarans Excursion" via any other distributor suddenly they are not insured? I think not. That does not wash with me. The excursion operator is the same company. Only the distributor has changed!

What about if the client buys from no distributor i.e. if they go to the Freestyle office & purchase? I presume in a market economy they could choose to do this - they would still be covered by Freestyle insurance wouldn't they? And as back up they also have their own holiday insurance - the thing people buy when they book the package.
 

maggiemay

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Aug 31, 2002
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If you read my post I said there is an umbrella insurance. i.e even if a supplier has only 1.5 million insurance they are further covered by the local agents insurance and additionally the Tour Operators insurance. If you go to an excursion direct you are now only covered by their own excursion. Freestyle by the way has a very good insurance as they work with Tour Operators and that is one fo the requisites, apart from having health and safety checks regularly by the tour opoerators to guarantee your health and safety...this goes for all excursions sold by tour operators..

Re: Subsidsing the cost of a holiday. If the resort income is not met then all costs for accommodation, cars, resort expenses, phones etc..I could go on..would have to be paid by the tour operator which would therefore mean they need to make more money of each package sold to cover costs.

A reps job indeed is to give service to the client..my point is in that if the accident had happened to a client with a reputable company then the problems which occur later would be allieviated.

Now as I said I no longer work for a tour operator..however I have lived here permanently for the last 19 years...I am not talking through my hat....

I'm not saying that you have to book with a Tour operator only giving you extremely well informed information about the subject. The choice is yours.
Maggiemay
 

Robert

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Jan 2, 1999
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I'm assuming First Choice have had some bad experiences with bad tour companies, that doesn't surprise me. It looks like they are making it very clear to their clients that they will not be "fully" covered unless they use the "approved" tours. I really can't see a problem with that, it's up to the local operators to lift their game and get on the "approved" list.

Yes, I know a lot more variables are at stake here, pricing, commissions kick backs etc. But at the end of the day, it's a First Choice customer and they have the right to handle them anyway they see fit, regardless if they earn more money or offer insurance etc. Ultimately the customer will decide the fate of First Choice and it's policies.
 

planner

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Sep 23, 2002
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Lambada - I believe you are correct. They are still covered by their insurance. If you read the insurance - it normally states you are not covered if you are doing certain "risky" things -like hang gliding or parachuting. I've not read a recent policy from the UK.

Maggie - question for you - does the tour operator post a list of approved excursions? IF so it should not matter what channel you buy the excursion thru then. If it is approved it is approved. I can assume that if the tour operator sells it then it is approved thus it would not matter if a client went direct.

Yes there is a lot more to all of this. My opinion is the Tour Operator acts as if they OWN the client. In fact they don't. Clients have choice and they need all the information to make smart choices. Fearmongering and passing on BS to clients does not make for informed choices.

Another point - excursion prices are very high. The main reason is the huge commissions demanded by tour operators in order to sell the excursions. This in my opinion is not good for tourists or the local economy!
 

HOWMAR

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Jan 28, 2004
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I've seen where the tour operator has said that even the sales agents in Playa Dorada Plaza aren't insured. You have to wonder when the "B" in "CB Tours" stands for Brugal. I can't imagine a Brugal family owned business not insured.
 

planner

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Sep 23, 2002
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Of course they are insured, I"ve seen their paperwork. Tour Operators can't stand the competition so they have to create ways to give themselves the edge.
 

maggiemay

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Aug 31, 2002
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I've seen where the tour operator has said that even the sales agents in Playa Dorada Plaza aren't insured. You have to wonder when the "B" in "CB Tours" stands for Brugal. I can't imagine a Brugal family owned business not insured.

Planner: please read my post where I talk about an Umberlla policy. i.e the local agent and the tour operators have additional policies. so if you book direct you will only have the suppliers policy to cover you. I have seen lots of policies that only cover RD$30,000.00 total for medical bills. Imagine a jeep safari with multiple wounded or just one serious injury requiring hospitilization. That amount of money will barely get you into an emergency room.

As for the First Choice bashing I think you will find that every single tour operator whether it is British, Canadian, American or European have the same goals on excursion sales i.e. make money to cover operational costs therefore being more or less self sufficient overseas financially.

Maggiemay
 

planner

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Sep 23, 2002
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There was no intent whatsoever to limit this to First Choice. Just the original poster quoted talked about the First Choice presentation. THis applies to almost all the Tour Operators.

Anyone going on vacation and not purchasing or having coverage for medical needs is definately taking risks. I would advise any traveller to have proper insurance personally!

It is my understanding that to get an excursion operators license you must have more coverage then that. I will check on it. Again Maggie, I appreciate the info you bring to the table. You did say you no longer work for a Tour Operator. Can I ask how long you have been out of the business?
 

maggiemay

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Aug 31, 2002
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I have not been employed by a tour operator for the last 5 years however I do still work in the tourism industry and have for the past 19 years. I speak from experience in other words.

I do not often post on the internet or in fact the DR1 page, however when I saw this post I felt 100% sure of what I had to say and wanted to put some of the facts straight instead of reading posts what I considered were becoming an uneducated witch hunt on Tour Operators. As I posted before the income from the excursions goes towards Resort expenditure, additionally keeping the price of airport transfers to a minimum as agents can offset costs of transfers with the excursions sales through them...

I gave facts and the rest is up to the clients who want to book excursions...it's their choice...at least this way they can make an educated decision.

Maggiemay
 

planner

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Sep 23, 2002
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I gave facts and the rest is up to the clients who want to book excursions...it's their choice...at least this way they can make an educated decision.

Maggiemay


This is appropriate, too bad everyone doesn't do this! That is also one of the things we try to do here - give all the info so people can make up their own minds.
 

FireGuy

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Aug 21, 2002
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As for the First Choice bashing I think you will find that every single tour operator whether it is British, Canadian, American or European have the same goals on excursion sales i.e. make money...

I would personally truncate your statement, just a bit, to state what I think the Tour Operator's truegoals is. (The above quote, while accurate, is incomplete; to express my opinion not that of the person quoted.) The average excursion must pay an outrageous commission to the Tour Operator of 40% so it about way more than insurance. In fact collectively the Tour Operators boycotted a popular new excusion a few years ago because they offered a lower commission, until they saw all the $$$ they were forgoing and then they gave in and accepted the lower commission. It's all about the money, period, IMHO.

The fact that the Tour Operators collectively lump all competition together as "pirates" (a derogatory term to describe less than savoury and often uninsured "beach sellers" of excursions), simply reinforces my contention above. At least, that's how I see it.

Gregg
 

planner

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Sep 23, 2002
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It is also interesting to note that this country pays way more commission then many other countries. IN many ways this country has been held hostage to these outrageous commissions. IMHO it is time it is stopped!

And on another note - little of those commissions actually go to the representatives. This is not about the hardworking individuals on the front lines but rather the decisions and heavy handedness of higher ups.
 

maggiemay

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Aug 31, 2002
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I know way too much about this business Fireguy and I will have to stop giving away all the secrets....the excursion suppliers pay commission to agents who in turn pay a commission to the tour operators..what you think that the Tour operators are getting 40%? Nope...the Tour operators get between 10% and 20% and the agent gets the rest, excursion sales are what suppliment the agents transfer costs, many agents lose money on every transfer they supply, this money is also what is used to pay office expenses and employees. This in turn brings down the cost of a holiday as transfers are charged to the tour operator at a minimum cost (some agents give them free would you believe)

Think of a supermarket...they sell large amounts and the can affored to sell cheaper...well the same goes for an excursion that is sold by a tour operator. Believe me if the excursion suppliers weren't making money then they wouldn't be in the business....

The direct seller, beach salesmen, plaza salesmen are not selling excursions for the fun of it and they in turn are getting a commssion of approx 20%.

So..apart from the insurance thng lets add in now that if travelling with a Tour operator they supliment the cost of your holiday with tour sales...now everyone can be clear on the subject and make their own decision....
 

HOWMAR

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Jan 28, 2004
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Think of a supermarket...they sell large amounts and the can affored to sell cheaper...well the same goes for an excursion that is sold by a tour operator.

So why is the tour operator charging more than the independant sales agencies?
 

Lambada

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Mar 4, 2004
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So why is the tour operator charging more than the independant sales agencies?

Maybe to offset the shortfall incurred by selling the holidays at rock bottom prices back in UK, Canada etc so that they can look competitive in the home market & get more punters than their competitors? It appears that inflated prices for excursions are used to offset the 'non-economic' price charged for the holiday. Maybe it would be ethically more sound to treat the two products separately - charge an economic price for the holiday & a non-inflated price for the excursion? Then the tour companies would have to work harder in the home market to pull in the punters.

However, if the tour companies prices for excursions decreased to be equivalent to local excursion providers, then more of the tourists would buy from foreign tour company reps. & fewer of them would buy from the locals so one segment of local industry would feel the pinch. So maybe it's better that tourists get fleeced if it means locals get more? Either way I don't believe it should be done on fear-mongering. That never has been nor ever will it be, acceptable. Although it has been going on as long as I've been here and it happens in all resorts across the world.