Supplier Relations & Vendor Management Flashcards
7 cards from real CTP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Supplier Relations & Vendor Management flashcards as text
Which document formally establishes the terms of a working relationship between a tour operator and a destination management company (DMC)?
Answer: Service level agreement (SLA)
A service level agreement (SLA) between a tour operator and DMC specifies performance standards, deliverables, response times, and remedies, forming the operational backbone of the relationship.
Net rates offered by hotels to tour operators differ from published rack rates primarily because:
Answer: Net rates are confidential wholesale prices allowing the operator to add markup
Net rates are confidential wholesale prices given to tour operators with the expectation they will add a margin when reselling to clients, unlike publicly available rack rates.
A tour operator wants to reduce financial exposure when contracting with a new overseas supplier. Which payment term best protects the operator?
Answer: Payment upon delivery of services
Payment upon delivery of services minimizes financial risk since the operator retains funds until the supplier actually performs, limiting exposure if the supplier fails.
When a supplier fails to deliver contracted services during a tour, a CTP should first:
Answer: Seek an alternative solution to minimize client impact, then document the failure
The immediate priority is finding an alternative to maintain the guest experience; thorough documentation of the failure supports later remedies, claims, or renegotiation.
What is the significance of a supplier's IATA number in the context of tour operations?
Answer: It identifies the supplier as an accredited travel agent authorized to issue airline tickets
An IATA number identifies a company as an accredited travel agent or tour operator authorized to issue airline tickets and conduct international travel transactions.
A CTP negotiating with a museum for exclusive group access should emphasize which value proposition to secure better terms?
Answer: Guaranteed minimum visit numbers and consistent off-peak scheduling
Guaranteeing minimum visitor numbers and scheduling during off-peak periods provides the museum with revenue certainty and helps manage capacity, making these the strongest negotiating leverage points.
Which practice best describes relationship-based vendor management in tour operations?
Answer: Building long-term partnerships through consistent business, open communication, and mutual support
Relationship-based vendor management prioritizes long-term partnerships that yield better service, loyalty benefits, and cooperation during challenges over purely transactional cost-cutting.