HND in Hospitality Management

This report explores the tour operator industry, analyzing current trends, holiday development stages, contracting methods, pricing strategies, and distribution techniques. It also examines the strategic and tactical decisions made by tour operators to achieve success in the competitive tourism market.

HND in Hospitality Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
AC1.1 Analyse the effects of current trends and developments on the tour operators industry.3
TASK 2 ...........................................................................................................................................4
AC 2.1 Assess the stages and timescales involved in developing holidays...............................4
AC 2.2 Evaluate the suitability of different methods of contracting for different components
of the holiday and different types of tour operator’s regulators..................................................6
AC 2.3 Calculate the selling price of a holiday from given information...................................6
TASK 3 ...........................................................................................................................................7
AC 3.1 Evaluate the planning decisions taken for the design of a selected brochure.................7
AC 3.2 Assess the suitability of alternatives to a traditional brochure for different types of
tour operator. ..............................................................................................................................7
AC 3.3 Evaluate the suitability of different methods of distribution used to sell a holiday for
different types of tour operator...................................................................................................8
TASK 4 ...........................................................................................................................................8
AC 4.1 Evaluate the strategic decisions made by different types of tour operator. ...................8
AC4.2 Compare the tactical decisions (two examples) that could be taken by a selected tour
operator in different situations....................................................................................................9
CONCLUSIONS............................................................................................................................10
REFERENCE ................................................................................................................................11

INTRODUCTION
Tourism industry is one of the largest growing sector now-a-days. It has wide and huge
scope in the market, because of the growing interest of the people in the travelling and passion of
the exploring and visiting the different countries and places. The current scenario of tourism is
really advanced and full of technological aspects such as use of mobile apps, websites and other
portal etc. (Bonilla Priego, 2014). This report is based on the LCB tour which is a tour & travels
based company headquartered in the United Kingdom. This company provides travelling
services and consulting to their customers. This report is carried on LCB tours for the
understanding and implementation of the different types of tour operators, developing holiday’s
packages and formulating selling price of the holiday packages etc. This project has taken into
consideration with the purpose of ascertaining the amount of tour packages and holidays etc.
This will be a discussion about the strategic decision making regarding the different types of tour
operator and tactical marketing etc.
TASK 1
AC1.1 Analyse the effects of current trends and developments on the tour operators industry.
Tour industry is considered as one of the most dynamic industry in the world right now.
It has wide number of resources and personalization in it. In the past era, tourism industry was
very limited and suffering with the issue of awareness among the people. But now in the
current era, it has improved very far in regards with the personalization, mobility, accessibility
and comfort ability etc. Current trends in the tour operators industry is very advanced and
developed in the context with the growing scenario in the market. In regards with Thomas
Cook, it is important that company should pursue contribution in the tour industry in order to
generate more awareness and employment opportunities in the market. The current trends are as
follow:
Advancement in technology - In today's era, tour industry has become advance in
technology such as booking tickets by using apps, website and other portals. It is now
convenience to make decision regarding the booking of tickets at an affordable prices.
Technology has also reduced the employment for the local tour & travels enterprises (M. J, 2011
).

Low cost carrier - Growing era of the tours industry has made transportation expenses
easy affordable and favourable. Now a days, carriers are offering flights at the most reasonable
and affordable cost and prices. In context with customer's, economy and premium economy is
affordable at some point, but business class and first class is generally not affordable because of
high quality service and high prices of components (Brown, 2013).
Increased environmental awareness - Countries such like UK, France, Japan,
Germany, India etc. have great environmental influences such as climate change, season
affection, mountains, great culture and people motivates wanderer's to visit such countries and
places. Culture has power and energy to attract visitors towards it, so it is important to maintain
culture and beauty of the places or countries.
In context with LCB tours, there are different types of tour operators for providing best
suitable transportation and tour facilities to the wanderer's which are as follow:
UK outbound operator - One who provides facility to UK residents for travelling to
another country. These operator's take travellers to all the world and even every continents such
as Australia, Asia, Europe and North and South America. These kind of operator takes care of
all the operation during the inter-continental visits. In context with LCB tours, it is important
that company should provide the best outbound operator services to the visitors to facilitate
gain full trust and belief of the wanderer's.
Inbound tour operator - In context with LCB tour, these operator's provide trips and
travelling to the people who wants to visit other countries. They basically provides assistance of
the local person for the tourist who is going in their country. This operator is also known as
receptive tour operator. These tour operator provide arrangements for the Airport drop and pick
service, provide local guides and responsible for the tourists know how.
Domestic operator - One who provides facility to their residents of the country to travel
within their nation to explore places and monuments. Tour operator offers visitors to explore
national parks, monuments, sea and river and beautiful places etc. In context with LCB tours,
company must provide good and satisfactory domestic assistance service to their customer in
order to increase the business for the company (Yu, 2012).
)
Specialist operator - These operator's provides service to niche market that have
particular interest in specific or choice geographical area or a special kind of places. Operation

of the specialist person is located within the particular places and country. The specialist
operator either situated in that country or a contacted person of the tour & tourism industry. In
context with LCB tours, company should pursue providing services to the specific geographical
area or niche market to maintain the scope and level of the tourism (Chon, 2015).
TASK 2
AC 2.1 Assess the stages and timescales involved in developing holidays.
Travellers are expecting for the best experiencing their holidays. They wants full-fledged
service from the tours & travels company to enjoy their holidays and weekends. In context with
the LCB tours, there are various stages involved in the process of developing the holidays which
are as follow:
Market research - This is the initial stage in the developing process of holidays. In this, a
proper research is required in order to find out economic conditions, demographics of the
country and affordability of the country. In context with LCB tour, management needs to plan
and develop the procedure and structure to gather information from the various sources and
channels. It is estimated that minimum 2 months are needed to generate the relevant information
and applying the necessary concepts and theories to ascertain the destination and location of the
holidays.
Planning - It is the second stage in the whole scenario. In this, package management is
taken into consideration to know the value and price of the each and every components of the
whole holiday package. Every part of the package have some definite price according to the
market demand or fixed nature. It includes the allocation of amount of money for flight, hotel
charges, local guide, transportation, convenience and other necessary charges. LCB must take
care of the Visa assistance for the customer's.
Contracting - After the planning, third step comes here is consent/approval of the
customer. It basically involves signing of the contract to generate relation of the customer with
the company to maintain legal consent while paying and using the holiday package. It also
involves building the contractual relation with the company while performing the legal right of
the contract signed(Evans, 2014).

Costing the holidays - This is the fourth stage where costing theory and concept is being
applied on holiday packages. It involves dividing the cost and price of each and every
components of the holiday packages for a definite period of time. Prices of the some variables in
the package is fixed of the unchanged market demand and some because of the continuous
change in the demand such as flight charge, hotel charges etc.
Financial evaluation - It involves the financial checking of the each variable in the
brochures. Variables such as convenience, accommodation, local site visits, food facility etc.
Creating the brochure - Brochure should be created by the use of appropriate format and
structure. If creating use the paper, it should be printed in the proper size of the paper and in case
of E-format, it should be in well-structured format (Gibson, 2012).
Advertising - The best option for the advertising is the awareness through the social
media, newspaper pamphlets, poster, using the website/portal etc. In context with the LCB tour,
company should take necessary step for the advertisement and promotion.
AC 2.2 Evaluate the suitability of different methods of contracting for different components of
the holiday and different types of tour operator’s regulators.
Fixed contract - It refers to contract which has taken into consideration with the purpose
to increase the sales and profitability of the company. This contract has implemented to reduce
the breaching of the specific and important agreement. This type of contract is generally
associated with the transfer of any legal right, money or any involvement of money. In some
cases, breaching the fixed contract is considered as punishable offense. In context with the LCB
tour, this contract would help the company to maintain the business and profitability from the
business.
Allocation contract - This is a kind of the contract which deals with the negotiation and
volume of sales which is controlled and planned by the tour operator. In allocation contract, tour
operator books amount of the rooms in any hotels or guest house for the given period of time.
This contract has the capacity to reduce of unsold tour by the suppliers and belief of the
advantage to them for the future contract (Campbell, 2012).
Ad-hoc contract - It is a kind of contract which having all kinds of purposes of
manufacture, co-operatives, institutions within the care and special attention they deserve. The

expertise and extensive network enables us to provide services tailored to all kinds of
requirements.
AC 2.3 Calculate the selling price of a holiday from given information.
LCB tour is looking for the calculating selling price of the complete holiday package
from London (UK) to Tokyo (JAPAN) with the all services, satisfaction, and convenience and
transportation facility. Customer has ordered for the premium economy class in the British
Airways from London to Tokyo for £338.02 which is a one way pricing and return way in the
JAPAN AIRLINES for £340.03. Cab facility will be there for way to the hotel from the Narita
international airport. In the whole package, company is offering 4 star hotel with the premium
room service and places and monuments visiting facilities by transportation and other
convenience. Amount of package also includes the guide charge, visa assistance, all clearance
charges etc. LCB tour is offering the festive offer of 10 discount on the package and adding
amount to offer premium economy class.
Table 1: Presenting total cost including in package for Tokyo, Osaka, Kyoto (JAPAN)
PARTICUALRS TOTAL COST IN POUNDS (In £)
Flight 338
Hotel charges (Including room service, food
facility, entertainment etc.)
310
Luxury coach 220
Local tour guide 100
Transportation facilities (Cab, bus, taxi etc.) 200
Total 1168
Add profit 25 percent 292
Total package costs 1460

TASK 3
AC 3.1 Evaluate the planning decisions taken for the design of a selected brochure.
A brochure must contain the appropriate information, knowledge and concept which will
clear about what will be the company offering to their customer’s. In context with the LCB
tour, company has taken several decision regarding the below given factors
Cost - It will mention the overall prices of the journey to be paid by the customer to the
tour company. It is important that company should mention the exact and correct prices on the
brochure.
Deciding the format - The format of brochure must be considered while planning for it.
Before making the brochure, various things should be taken Tour Company’s name, tour time,
explanation of the destination, cost involved and transport etc.
Target market and budget - Target market for LCB tour is those who is really explorer
by the nature. They are targeting people with the choice of travelling and exploring the world.
Those who are ready to spend money on their passion toward travelling, exploring etc.
Determining the print specification - In this decision process, quality of the print is taken
into consideration for making it attractive and complete and even colourful etc. It should contain
the relative information, adequate space, portrait or landscape, attractive colours etc. (N.,
Storehouse, 2016)
AC 3.2 Assess the suitability of alternatives to a traditional brochure for different types of tour
operator.
E - Brochure - The online technology has given opportunity to E-brochures to access it
to the maximum number of the people and audience as well as getting in the huge number. In
context with the LCB tours, it was noticed that customer has attracted towards the E-brochures
and other related.
IPad/android application - It has given the base to the customers to use the smartphone
technology for the easy access of the apps\websites for the purpose to the use the holidays
package\offers through the LCB tours apps/portal.
Outdoor media - It has played a great role in the printing/publishing the holidays package
into the newspaper, magazines, pamphlets etc. In context with the LCB tour, it is important that
company should give less importance to the outdoor media as described below.

Internet - It is considered as one of the most sourceful mode aim at sharing and display
any kind of information and knowledge and service. It directly influence the mind and behaviour
of the internet viewer’s or user.
Social media - Social media plays a significant role in the selection of the brochures.
Brochures should be perfectly coloured and design to attract the customer or social media under
to influence them to purchase the holiday packages (Sigala, 2014).
)
AC 3.3 Evaluate the suitability of different methods of distribution used to sell a holiday for
different types of tour operator.
There are different methods for selling the tour or the holidays for different types of
operators. These methods includes online selling via apps/websites, personal selling, telephonic
selling etc. This will helpful in attracting the customer as these information can be presented to
the doorstep of the customer in order to increase an effectiveness and ease of an information. E-
mails marketing is considered as most efficient marketing method to attract the customer and
increase the productivity and efficiency. In context with the LCB tour, companies needs to select
the best appropriate distribution methods to get order from the customer. Company must go for
the online selling through the official websites/apps directly to the customer with the help of
particular agents to guide them to gain an effectively in the business.
TASK 4
AC 4.1 Evaluate the strategic decisions made by different types of tour operator.
In tourism, this assignment is consider on several decisions and analyse to competitive
advantages for tourism. Strategic management focus on vision, mission and main objectives
according to internal environment assessment. In context of LCB tour, managerial experts takes
thorough analysis to make decision on domestic versus international opportunities. Those
strategic plan helps in solving practical problems of tourism setting which are explaining in
below statements:
Pricing Strategies: Tour operator can consider on two types of pricing strategy such as
mark up and mark down. It mark up on price setting for tour and related activities in order to
gain maximum profitability. In context of LCB tour, manager should identify the all attendant

cost of a tour plan during creating strategies. It involves spending time, resources used which is
offered and overall cost of business unit. Secondly, it refers to mark down strategies, manager’s
approach pricing in order to remain competition and fascinating to more customers.
Surcharge Policy: This is an additional fixed charge that a company ask formally to
customers after their tour booking. In customer's tour package, surcharge can be bring out
between 2 to 10 percent. If it is shows above 10 then customer have right to cancel plan and
acquire full payment. Thomas Group also firstly receive permission from travel department
before engaging in surcharge. Company provide all tour information to their customers which
helps in business successes (Sigala, 2014).
Positioning and image/branding: A unique and appropriate brand positioning provide
assistance in market communication simultaneously enhance the attractiveness. It gives a better
image in customer's mind and does differentiate from similar destination in market place. In
context of Thomas Group, managers apply on effective brand positioning by following related
principles. These are the promises of benefits which are made for fulfil customer's expectations
and their desire.
Choice of product in relation to customer portfolio: It is one of the way to developing
marketing strategies for better performing in market place. This enable to build appropriate plans
according to customer's needs and desires which provide complete guidance in product mix. In
Thomas Group, managers divide sub market into different segments on the bases of people'
characteristics, desires and convenience. This aspect concerns on external environment, for
instance geographical and demographical changes. These strategies guide in creating better
image and reducing pressure of competitors in market place (Medlik, 2016).
Distribution decisions: It has two components such as institutional and physical. These
elements assist in organizational profitability and better standard of a company. Firstly it
includes institutional which covers retailers and agents. Another one related to transport and
warehousing aspects which plays major role in distribution plans. Thomas group identifies
customer's need and selection preference because consumers vary from many market places. It
helps in assortment of tour product along with services. Moreover, manager analyse the need of
supplier that depends on size and location of potential market.

AC4.2 Compare the tactical decisions (two examples) that could be taken by a selected tour
operator in different situations
Tactical decision are known as medium size decision. There are two different situation on
the basis of which tactical decision can be taken in order to generate business and profitability
which are as follow:
Situation Cost decision Operational decision
More customer's and more
profitability
In such situation, this tactical
decision will be very effective,
as it could focus on attracting
more customer's at very less
cost for providing good
holiday package at an
affordable.
In this same situation,
organisation needs to take
tactical decisions regarding
conduction of an operation
effectively and efficiently. In
this, tour operator needs to
make effective connection
with supply chain management
and distribution.
Cost saving and effective
performance
In this situation, tour operator
needs to take decision
regarding saving cost, time and
excess efforts. This type of
decision is used to minimize
excess and unfavourable costs
and enhance proper and
productive performance.
Operational decision such as
deciding operation plans and
strategies comes under such
situation. Cost saving in an
operational aspects is the most
crucial and typical process to
be conducted in the tour
industry.

CONCLUSIONS
From the above report, it is concluded that tours & travel industry has wider cope in the
travelling sector. This business has very significant importance in the economy as this helps tour
and travel is the important sector through which country’s income is generated. There are
different methods through which different types of the tour operator can be operated. It is also
required that company should use the select best time of display of holidays by the operators in
order to increase the maximum customer satisfaction. If there is an optimal customer satisfaction,
there will be a chances of the increase in the goodwill of the company’s business. This is
important to understand and make clear the use of concept regarding the distribution technique
for selling the holidays tours.

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How Will The New Package Travel Directive Affect My Travel Business?. 2017. [Online].
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