CTP Supplier Relations & Vendor Management 2

Question 1

Which document formally establishes the terms of a working relationship between a tour operator and a destination management company (DMC)?

Accepted Answer

Service level agreement (SLA)

Answer

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.

Question 2

Net rates offered by hotels to tour operators differ from published rack rates primarily because:

Accepted Answer

Net rates are confidential wholesale prices allowing the operator to add markup

Answer

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.

Question 3

A tour operator wants to reduce financial exposure when contracting with a new overseas supplier. Which payment term best protects the operator?

Accepted Answer

Payment upon delivery of services

Answer

Payment upon delivery of services minimizes financial risk since the operator retains funds until the supplier actually performs, limiting exposure if the supplier fails.

Question 4

When a supplier fails to deliver contracted services during a tour, a CTP should first:

Accepted Answer

Seek an alternative solution to minimize client impact, then document the failure

Answer

The immediate priority is finding an alternative to maintain the guest experience; thorough documentation of the failure supports later remedies, claims, or renegotiation.

Question 5

What is the significance of a supplier's IATA number in the context of tour operations?

Accepted Answer

It identifies the supplier as an accredited travel agent authorized to issue airline tickets

Answer

An IATA number identifies a company as an accredited travel agent or tour operator authorized to issue airline tickets and conduct international travel transactions.

(CTP) Certified Tour Professional Practice Test

(CTP) Certified Tour Professional Practice Test

CTP Supplier Relations & Vendor Management 2