This unit describes the product planning function for a diverse range of tourism and hospitality packaged products and services and applies to the full range of industry sectors.

The unit applies to the development of new or enhanced packaged tourism products. It describes the generic tourism product packaging process that applies to the development of any style of packaged product for the domestic or international customer and covering any Australian or international destination.

The unit has particular application to inbound and outbound tour wholesalers and to tour operators. Tourism operators might source and package tourism products and services for a range of different products, e.g. brochured touring products, incentive and special interest groups and series tours.

The sourcing and packaging of tourism products and services involves complex itinerary planning, costing and operational coordination. This unit applies to senior tourism and hospitality industry personnel who operate with some level of autonomy or under limited supervision and guidance from others. These roles would include product development coordinator, senior tour coordinator, senior inbound tour coordinator, incentive account manager, account manager for a professional conference organiser, senior operations consultant or manager for a tour operator and owner-operators of any type of tourism business.

This unit must be assessed after the following prerequisite unit:

SITTTSL006B Prepare quotations.

ELEMENT

PERFORMANCE CRITERIA

1

Source component products.

1.1

Identify product objectives in consultation with appropriate colleagues and customers.

1.2

Identify and determine destination and product preferences and requirements of customer or consumer market to be serviced.

1.3

Identify and research potential destinations and component products and services using appropriate methods.

1.4

Assess destination and product details relating to market or customer suitability, including costs, availability or accessibility, features and benefits, product match to preferences and requirements and profit potential.

1.5

Assess the quality credentials of tourism operators and their products to be packaged.

1.6

Select destinations and products based on research conducted.

2

Package component products.

2.1

Develop packaged products or programs to meet the requirements of specific customers or markets.

2.2

Combine and integrate program components to create maximum value and saleability within nominated constraints.

2.3

Make agreements with suppliers according to organisation profit and other requirements and confirm in writing in line with organisation procedures.

2.4

Cost programs to ensure profitability using appropriate technology to take account of key financial factors, including:

full range of commission or mark-up structures that would apply to each organisation involved in the distribution network for the product

desired profit margin for the packaged product

application of appropriate mark-up to achieve a profitable selling price

any additional taxes, special fees and other charges

any applicable exchange rate implications.

2.5

Document the product or program and pricing structures clearly to include full details of all inclusions, exclusions and add-ons and present to colleagues or customers.

2.6

Review and adjust products or programs and pricing structures in response to feedback from customers or colleagues.

2.7

Check and incorporate legal requirements.

2.8

Present final details of products or programs to appropriate colleagues or customers for approval prior to finalisation of operational or marketing details and within required timeframes.

This section describes the essential skills and knowledge and their level, required for this unit.

The following skills must be assessed as part of this unit:

basic research skills to obtain general information on destinations, product base within the destination and customer or market product preferences and requirements

ability to assess research findings and match destinations and products to meet the needs of the specific customer or market

literacy skills to read and interpret documents, such as:

customer requests

organisational documents that outline the range of current products and style

complex supplier component product information, including contracts and costs

information obtained on customer or market product preferences and requirements

writing skills to document complex product information, programs and pricing structures, including the specific applicable conditions

numeracy skills to calculate complex costing components and a range of different commission and mark-up structures.

The following knowledge must be assessed as part of this unit:

detailed knowledge of the tourism industry, including structure and interrelationships, tourism industry networks and information sources

industry information or destination marketing networks and their value in conducting research for the packaging process

in-depth destination and product knowledge appropriate to the specific tourism or hospitality industry sector and components to be included in the product or program

in-depth knowledge of customer or market product preferences and requirements

negotiated cost of supply and contractual arrangements with suppliers

key principles and elements of calculating complex packaged product costings and pricing structures

in-depth knowledge of distribution and marketing networks, especially those involved in distributing the proposed tourism product or program

industry commission or mark-up procedures and rates appropriate to the particular sector and the varying organisations within the distribution network

industry practices in packaging products and presenting pricing structures appropriate to different sectors, including:

different costing options, e.g. per person, room or group; all inclusive; and ground content only

typical package styles for different markets or customer types

the existence and basic aspects of laws that impact on tourism operations and actions that must be adhered to by tourism operators when delivering services, in particular laws that cover:

child sex tourism

legal liability insurance requirements and duty of care of customers

environmental protection (This would include required environmental licences, permits, accreditation and minimal impact practices.)

local community protection (This would include land ownership, management and access requirements.)

consumer protection (This would include refund requirements that must be met by tourism businesses, terms and conditions of quotations and cancellation fees.)

responsible service of alcohol

food safety.

The evidence guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, the range statement and the Assessment Guidelines for this Training Package.

Critical aspects for assessment and evidence required to demonstrate competency in this unit

Evidence of the following is essential:

ability to proactively source, package and match destinations and quality controlled products that meet the needs of specific customers or markets

ability to develop and cost practical programs that meet both customer needs and organisation business requirements

ability to source and package multiple programs in response to multiple customer needs or organisational requests covering a range of tourism products and services

ability to source and package tourism products and services within the context of the particular industry sector in which they are working or seeking work; for those undertaking generic pre-employment training, assessment must cover a range of industry contexts to allow for a broad range of vocational outcomes

project or work activities conducted over a commercially realistic period of time so that all aspects of the packaging process can be assessed

completion of product or program costings that meet the deadlines determined by the customer and the organisation.

Context of and specific resources for assessment

Assessment must ensure:

access to a fully equipped industry-realistic office environment using appropriate computers, communication technology, software and information programs and publications currently used in the tourism industry to facilitate the processes involved in sourcing, packaging and costing tourism products

access to current tourism industry destination and product information sources, especially information about appropriate product match

access to an operation for which tourism products or programs would be developed or access to comprehensive and sufficient information about that tourism operation and its market base to allow the candidate to fully develop appropriate packaged products or programs

use of relevant and current product information to support the costing process, e.g. brochures, tariffs, product sales kits and supplier contracts

use of legislation or plain English documents produced by regulators.

Methods of assessment

A range of assessment methods should be used to assess practical skills and knowledge. The following examples are appropriate for this unit:

project activities to develop packaged tourism products or programs in conjunction with an industry operator

project activities to develop packaged tourism products or programs for the training college or local community

review of completed product costing and pricing structures for specific packaged products or programs

case studies to assess the candidate's ability to research and meet the needs of customers or markets with differing product preferences and requirements

written and oral questioning or interview to test knowledge such as structure of the tourism industry, tourism industry interrelationships, distribution networks, mark-up and commission structures and legal requirements.

review of portfolios of evidence and third-party workplace reports of on-the-job performance by the candidate.

Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended, for example:

SITTTSL002A Access and interpret product information

SITTTSL003A Source and provide international destination information and advice

SITTTSL004A Source and provide Australian destination information and advice.

Assessing employability skills

Employability skills are integral to effective performance in the workplace and are broadly consistent across industry sectors. How these skills are applied varies between occupations and qualifications due to the different work functions and contexts.

Employability skills embedded in this unit should be assessed holistically with other relevant units that make up the skill set or qualification and in the context of the job role.

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording in the performance criteria is detailed below.

Customer or consumer market to be serviced may include:

domestic tourists travelling within Australia

international tourists travelling within Australia (inbound)

Australians travelling internationally (outbound)

groups

individuals

leisure travellers

business travellers

those travelling on incentive tours

those interested in the natural environment

those interested in special cultural groups

conference delegates

event participants

special interest groups, including:

educational groups

sporting groups

customers or groups of a particular cultural background.

Research may include:

desk research

personal contact with tourism authorities, product suppliers or distribution network

destination or site inspection.

Component products and services to be packaged might include:

accommodation

transport, such as air, rail, bus or coach, and shipping

hire car

entrances to attractions, museums, events and exhibits

food, beverage and catering

entertainment

tours

cruises

conference facilities

tour guiding services

activities

meals

functions

special items with customer corporate branding

venue hire

speaker services

audiovisual services

meeting or event equipment

special event consumable items.

Assessment of the quality credentials of tourism operators and their products to be packaged may involve:

public liability and duty of care policies and procedures

safety record

customer service and satisfaction record

reliability of other tourism operators to provide promised products and services

reliability of other tourism operators in complying with laws

environmental and local community protection credentials of tourism operators who deliver tourism products in environmentally sensitive areas such as:

their compliance with laws, permit, licence or accreditation requirements that relate to environmental and local community protection

reliability in sustaining the natural and cultural environment by use of minimal impact practices.

Requirements of specific customers or markets may relate to:

budget

product or service preferences and requirements

time constraints

cultural issues

integration into a wider touring, event or sporting program.

Special fees and other charges may include:

service fee

transaction fee

itinerary preparation fee

visa and passport handling fee

loyalty program (e.g. frequent flyer) redemption fee

product booking fee

amendment fee

cancellation fee

reconfirmation fee

courier fee

credit card fee

communication fee.

Sector

Tourism

Planning and Product Development

The required outcomes described in this unit of competency contain applicable facets of employability skills. The Employability Skills Summary of the qualification in which this unit is packaged will assist in identifying employability skills requirements.