TMC Tour Operations and Package Design 2

Question 1

What is a 'Destination Management Company' (DMC)?

Accepted Answer

A local specialist company that provides expert knowledge and logistical support in a destination

Answer

A DMC is a professional services company with deep local expertise that provides logistical support including transportation, accommodations, activities, and on-the-ground coordination.

Question 2

In tour costing, what does 'breakage' refer to?

Accepted Answer

Services included in a tour package that travelers do not use, resulting in savings for the operator

Answer

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.

Question 3

What is a 'familiarization trip' (FAM trip) in the travel industry?

Accepted Answer

A subsidized trip offered to travel agents or media to experience a destination firsthand

Answer

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.

Question 4

What does 'series tours' mean in tour operations?

Accepted Answer

Regularly scheduled departures of the same itinerary throughout an entire season

Answer

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.

Question 5

What is 'yield management' as applied to tour operations?

Accepted Answer

Adjusting pricing and seat or room availability dynamically to maximize revenue based on demand

Answer

Yield management involves dynamically adjusting prices and availability based on booking patterns and demand to maximize total revenue from a fixed capacity.

TMC - Tourism Management Certificate Practice Test

TMC - Tourism Management Certificate Practice Test

TMC Tour Operations and Package Design 2