Tourism Distribution Channels and Management

This assignment delves into the complexities of distribution channels and their management within the tourism sector. It explores various distribution models employed by tourism businesses, such as online intermediaries, direct booking systems, and traditional agencies. The analysis examines the impact of technology on distribution channels, highlighting the role of social media and e-commerce platforms. Furthermore, the assignment considers case studies of prominent tourism organizations like Thomas Cook to illustrate best practices in channel management. It also investigates current industry trends shaping the future of tourism distribution.

Tour Operations Management

Table of Contents
INTRODUCTION......................................................................................................................3
TASK 1......................................................................................................................................3
1.1 Analysing the effects of recent and current trends on tour operator sector.....................3
Task 2.........................................................................................................................................5
2.1 Assessment of time-scale involved in developing holidays............................................5
2.2 Suitability of various methods of contracting for different components of holiday.......6
2.3 Calculations of selling Price of holiday...........................................................................7
Task 3.........................................................................................................................................8
3.1 Evaluation of planning decisions.....................................................................................8
3.2 Assessment of suitability of alternatives to traditional brochure..................................10
3.3 Evaluation of suitability of methods used to sell a holiday...........................................11
Task 4.......................................................................................................................................12
4.1 Evaluation of strategic decisions made by tour operator...............................................12
4.2 Comparison of tactical decisions by tour operator in different situations.....................13
Conclusion ...............................................................................................................................14
References................................................................................................................................15

INTRODUCTION
Tour Operation business is considered as a vital constituent of travel and tourism
industry. It has great significance in the generation of forex exchange earnings, employment,
revenues, investments and growth of any country. Tour operator is a mediator in the
distribution channel which renders inbound, outbound and domestic tourism to the visitors.
The present report particularly lays emphasis on the integration of tourism businesses and
tour operations. It will also cover various steps involved in creating a holiday and
determining the selling price for the same. Moreover, different strategic decisions made by
various types of tour operators will also be discussed in context of Thomas Cook Group. It is
one of the leading leisure travel companies which renders the best tour operations services,
holiday packages, accommodation, transport and other services to the travellers. According to
needs, desires and fascination of people to explore the world, company shapes its objectives.
TASK 1
1.1 Analysing the effects of recent and current trends on tour operator sector
Tour operators are the enterprises which engage with inbound or outbound tour
operations by availing many facilities such as holiday packages, online reservations, booking
for accommodation and transportation, arranging and conducting tours for interested
travellers etc. There is a great role of tour operators as they provide all the relevant
information and expertise related to tourism, recommend destinations, services and products
(Ball and et. al., 2014). They also ensure to provide secured travelling services to their
customers. Tour operators also assist them to provide refunds for occurrence of some
unfavourable issues. There are many current trends and developments which can affect tour
operator's industry. Some of them are stated below: Technological developments: Growth of tour operator industry is highly affected by
new technologies. In the present scenario of technological world, most of travellers
prefer to book their tickets from online sites. With the development of new E-
commerce technologies, customers are facilitated with online booking services and
thus, they are also able to check their status or cancel their booking. By providing all
these facilities, tour operator can earn high profits and increase their customer base in
an effective manner. Increased Spending Power: Fascination and desire of travellers towards travel and
tourism are assisting tour operators to enhance their broad spectrum of business as

they are willing to spend more for getting leisure travelling experience (Bricker and
Black, 2016). With the increase in the spending power of tourists, tour and travel
industry is able to earn more profits, attain stability and success etc. Customized Holiday Packages: Many tour operators are providing new and attractive
tour packages which can be customized in accordance with the preferences and
desires of customers. Tour operators are providing them flexibility in selecting desired
holiday packages in order to satisfy their needs at an optimum level. Tourism Marketing: Marketing activities of tourism segment will also affect the
operations of tourism and travel industry. It is the responsibility of marketing
department of tour operator to create awareness among people about attractiveness of
specific tourism destination so that large mass of audience can be attracted. PESTEL factors: These factors can highly affect the operations of tour operators as it
consists of political, legal, environmental, social and economic factors which have
different level of significance in the growth and development of travel agencies or
tour operators. Further, customers will not prefer that destination which has negative
influence on them. Conservations of nature: In accordance to increase sales revenues of the company,
Thomas Cook is also focused to conserve many tourist destinations of several
countries for longer period of time (Buckley and Mossaz, 2016). NGOs and
Government organisations also play an important role in protecting tourist
destinations so that localities can get benefited. Economic Factors: With the increase in tourism activities, GDP of country is also
increasing rapidly. Moreover, it also provides job opportunities to many people and
stakeholders who are engaged with tourism sector.
 Role of Government: There is great role of government in the development and
growth of tourism sector in the UK. It has to provide flexible VISA policies, develop
many tourism destinations and need to create taxations norms for tourism activities.
There is also great role of Non-Government Organisations (NGOs) in tourism
industry as they have to deal with many societies, communities and local people who
live near tourism destination.

TASK 2
2.1 Assessment of time-scale involved in developing holidays
Thomas Cook Group is a leading tour operator of UK which has large customer base
of 23 million and sales of £7.8 billion in a year across the globe (About Thomas Cook. 2015).
It is concerned to cater exotic tour and travelling services to the travellers so that it can build
their trust and gain loyalty. Thomas Cook offers broad range of travelling and tourism
facilities to its customers in accordance to their preferences and desires. Attractive and
fascinating holiday packages are provided by company with the inclusion of luxurious
facilities and hospitality services to their customers. Moreover, an appropriate market
research is also required with the effective planning and organised business plan.
In accordance to the present scenario, a sight-seeing tour is going to be conducted for
Chinese students who are interested to travel from London to Paris (Key industry trends:
December 2013). Thomas Cook is making a suitable plan of 5 days for these students which
will start from summer vacation in August 2018. Holiday package named, “Incredible
London” will include many fascinating destinations, monuments, heritage places and other
sight-seeing destinations of London and Paris. Moreover, this tour package will cater exotic
experience and services to the students so that they can explore astonish destinations of the
UK with the assistance of proper guide and expertise. For that, Thomas Cook needs to
examine several stages and time scale of holiday package which consists of following
activities: Research: It is the first step of tour plan for Chinese Students in which company
needs to analyse market trends in order to prepare systematic holiday package. Also,
in relation to provide lucrative holiday package to the students, it needs to undertake
intensive market research according to the market segmentation. As per the perception
and views of students, an effective plan will be made. Planning and scheduling: Once the market research has been made, company needs
to make an effective plan and schedule it according to customer's preferences and
comfort. It starts with identification of fascinating and attractive areas of London and
Paris whereby there will be accessibility of sight scene (Buckley, 2015). Thereby, it
also needs to look for the facilities of accommodation, transportation, reservations of
tickets, availability of good food and insurance services.

 Tour Development: Thomas Cook is required to forecast different factors such as
estimation of overall costs, sales and revenue generation as per the holiday package.
However, many other factors are also needed to analyse on the grounds of current
market trends (Dale and et. al., 2016). It also needs to negotiate with several
hospitality service providers and other organizations so that they can effectively
organize their tour packages worldwide. The complete process will require 4-6
months of time-scale.
Day 1: The coach will depart at noon 12:00 and make first move towards at Dover Castle
before proceeding towards France. Then they book the bikes to ride though the natural park.
Day 2: The coach will depart at 9:00 for St. Omar and then take a halt for 2 hours before
moving to Beaurais, passes through Lens. Then they book the night there, son that they can
relax and enjoy the sight view.
Day 3: Moving for Paris, the student will be dropped off and will walk down to Eiffel Tower.
Day 4: Students will visit Louvre and the time left will be covered by fulfilling their
interests.
Day 5: After visiting the place of their interest, they will be taken for seaside ride.
2.2 Suitability of various methods of contracting for different components of holiday
Thomas Cook is providing better travel experience to its customers by understanding
their wants and desires. It focuses to cater premium tour services including accommodation,
food services, entertainment, insurance and financial services (Accessibility. 2015). In order
to attain these services, cited tour operator needs to consolidate and merge with substantial
number of suppliers and manufactures. There are several ways through which different aspect
of tour packages can be developed by tour operators.
The holiday tour package will cost £ 350 per individual, which will cover the cost of
accommodation establishments, tickets, transportations and prices of Eiffel Tower picnic.
Moreover, it will also cover all other expenses. The transportation fee includes coat of bikes
and coach which be used in games. However, any other type of transport facilities will not be
included in the contract, as they will not provide comfort and flexibility for lower price.
Moreover, this contract will also allow for the plethora of other prospect which can be added
to the route of Paris. It will also include he provision to change the entire route for any
reason. Accommodations for the Paris will also easily available at cheap prices. So the total
amount need to pay by students summed up £ 5.250. out of which £ 800 for transportation,

£1500 for accommodation, £ 200 for tickets, £300 for picnic, £ 400 for tourist guide of Paris.
The amount left providing the profit of £2050.
2.3 Calculations of selling Price of holiday
In accordance with the present scenario, Thomas Cook has established networks of
partners in France, whereby one of its partner named, St Michelle Hotel proposed a special
rate. The Hotel was offering twin rooms for 60 euros on room-only basis in which rooms can
be shared with 2 adults. The supplement for BB was also of 10 euros per person/per night.
The Thomas Cook is able to negotiate with the terms and conditions of the hotel wit
transportation company. The transportation company was offering 20-seater luxury coach
including 2 seats for drivers, ferry taxes and fuel taxes worth £1000. However, the Thomas
Cook is still looking forward for a local tourism guide in Paris, who will charge £200 for the
timing of stay in Paris. With regard to this case, the selling price of tour need to be calculated,
keeping 10% of profit margin for the above cited company. The total cost involved in the tour
package is represented by following table:
Services Selling price for 15 students
(£)
Hotel booking 47.67x8= 381.36
Breakfast and dinner 7.95x15= 119.25
Surface transportation 1000
Guide 200
TOTAL 1700.61
Profit of 10 percent 170.61
Selling price 1870
From the above table of price structure, it can be inferred that Thomas Cook
efficiently handle all funds, availing all premium services in accordance with customer's
wants and desires. With the effective price structure, the tour operator will be able to cater the
attention of customers and to increase the degree of satisfaction. The concerned tour agency
have to charge advance amount for booking tickets in advanced, so that customers can
experience lavish voyage to their desired destinations. Moreover, Thomas Cook has also
minimised the transportation charges to £1000 by negotiating with St. Michelle Hotel, sue to
which it has entitled to gain substantial profit margin. Furthermore, all other services like

accommodation, hotel and BB supplement charges are also get availed at low affordable
charges. So, Thomas Cook will be benefited by several ways, its brand image will improve,
customer base will also increase by rendering such tour packages to travellers. According to
evaluation of budgeting aspects, it can be said that the total profit on the holiday package will
be 10% of overall cost. In addition to this, it can be said that organisation has designed its
plan in appropriate manner that also provides better satisfaction to its customers. Guide has
been hired to make sure that proper information is being shared with students in order to
improve their knowledge. Overall costing of guide services is 200 pounds that also reduces
the overall costing of plan. Hence, pricing decided is also accurate according to need of target
customers because it is affordable for students.
TASK 3
3.1 Evaluation of planning decisions
As per the current scenario, The Thomas Cook need to engage with marketing
department of the concerned company, in order to evaluate the planning decisions for
designing of new brochure for adventurous holidays (Hamarneh, 2013). A brochure of travel
and tourism industry is used for conveying message and selling holiday packages to
customers via on-line as well as off-line methods. The brochure of Thomas Cook will delve
into the decision planning process. These brochures are taken into consideration by tour
agencies and operators, so that they can provide in depth knowledge of attractive and
fascinating holiday packages. The cited tour operator particularly lay emphasis on business
activities of of company along with the assurance of safety, availability of premium services
and other hospitality services. By availing this services and products, the company enables to
gain customer trust and loyalty (Holland and Holland, 2016). The brochure also includes
brief detail about sight seeing destination tour packages, family holiday packages, business
trips and etc., so that customers can be aware of all tour packages that are provided by
Thomas Cook. The company can gain high benefit of high reach and low cost by distributing
travel and tourism package brochure. In order to design a brochure of tour packages, the
company require a proper plan which can be formed by market research, so that can be
implemented in an significant manner.
To design an effective brochure, numerous elements are associated with it. Thomas
Cook particularly lay concern on the following planning decisions with a view to create an
impressive and attractive travel and tourism brochure:

 Recognition of planning a brochure: While designing a brochure, several essential
elements need to be included in the brochure, its is comprises of Format and Structure
of brochure, aims and objectives of brochure, time-scale and target segment. Structure and Format of Brochure: In order to increase the visibility of the brochure,
it should be attractive enough (Kim and Kang, 2015). Tour operators are required to
pre-decide the structure and format of the brochure by identifying the target segment.
There are some elements of brochure which need to be customize according to the
products and services it offers, it can be size, message content, structure and quality of
paper etc. Moreover, wit the context of present scenario, Thomas Cook need to design
a brochure according to sight seeing tour (Yap, and et. al., 2016). The cover page of
brochure can be of yellow, orange or red colour of appropriate size and structure.
However, the size of brochure should be decide in such a way, every customer would
hold it comfortably at any time and anywhere. Services and Products: The Thomas Cook need to detailed about its services and tour
packages in brochure. In the present case scenario, Thomas Cook need to make a
complete holiday package for Chinese students for sight seeing tour from London to
Paris. So, while making brochure it is the responsibility of the agent of tour operator
to include all necessary details of services that will be availed to customers. It should
include the costs of tour package and also mention the number of days the tour will
held (Lima and Weiler, 2015). The transportation medium, the name of hotel and
tourism destination should also be mentioned. Budget and Target market: Thomas Cook will target its customers according to
different niche market segments like, for wedding tours, business trips, mass media.
Budget is also important factor, according to spending power of consumer the tourism
segment will be categorised (Liu and Chou, 2016). Time scale: The appropriate time required for design of brochure should also be
mentioned in the decision plan. Moreover, all relevant stages of the planning
decisions will also include.
 Legal and regulatory framework: It is one of the important considerations, which
need to be taken into account prior designing of brochure. The tour operator is
required to comply by all legislations of a particular country, in which tour operator is
planed to operate its business (Lozano, Arbulú and Rey-Maquieira, 2016). In order to

bring authenticity in tour management operations, the company need to abide by all
regulatory frameworks.
3.2 Assessment of suitability of alternatives to traditional brochure
Traditional brochures are structured document which has been utilized by agents of
tour operators in the form of leaflets or pamphlets, so that their serves and products can be
promoted in an impressive way. There are many traditional brochures, which can be used by
company to enhance its performance (Mok, Sparks and Kadampully, 2013). However, in the
realm of modernisation there has been tremendous alternatives available, such as E-brochure
in order to attract huge mass of crowd ad to improve quality. With the increase in the
development of new modern technologies, Thomas Cook inclined to adopt new source of
mediums. With the use of E-brochure, the cost of company while designing a brochure will
reduce as comparison to physical brochure (Tran, Jeeva and Pourabedin, 2016). E-brochure is
designed with advanced technologies, whereby all relevant detail of tour is included in the
movable format paper, which is similar to traditional brochure. There are many benefits of
using E-brochure, as it help the company to provide innovative products and services.
Moreover, the company will also be able to retain its existing customers by rendering
differentiated products. As, E-brochure is an exotic way to promote varied services and
products of tour operator, therefore, every travel and tourism agency aimed to provide digital
platform to its customers.
Another alternative is to visual intermediate of brochure, which can be adopted by
Thomas Cook to attract large number of people towards its tour operation business. The
visual beauty of tourism destination will help the company to convey its message in proper
way (Morakabati, Page and Fletcher, 2016). This will also help to maximize the sales revenue
from tour packages. Video brochure can be used by company to promote its astonishing
services and products with the help of social media, such as Facebook, YouTube and etc. So,
it is recommended that, Thomas Cook design an incorporated brochure comprises of video
brochure, E-brochures and online marketing campaigning, so that they got interlinked with
each other.
In accordance with present case scenario, Thomas Cook make its E-brochure for
Chinese students for organising a sight-seeing tour. The company can make it so impressive
and attractive, decorate with bright colours so that customer's can get attracted towards it
(Muñoz-Seca and Riverola, 2016). Moreover, if the E-brochure is fascinating, impressive and
attractive enough then, automatically instant responses will be provided by customers. In

addition to this, the company will also able to improve its brand image in the hyper
competitive market. With the assistance of latest techniques and equipments, the company
will also be able to expand nits business in emerging markets of various countries.
So, it is recommended to Thomas Cook to use traditional as well as E-brochures to
promote its services and products worldwide.
3.3 Evaluation of suitability of methods used to sell a holiday
In accordance to avail all tour packages and services to customers, the company need
to expand its distribution channel at large level. For this, it need to get engage with several
suppliers, manufactures, distributors and other inter-mediators, in order to reach customer.
Thomas Cook can make use of many distribution channels, including selective distribution,
intensive distribution and exclusive distribution (Page, 2014). In the intensive distribution
channel, company emphasis to provide its services and products at large level across the
globe to different customers. With the assistance of several sources, the company can make
avail its services to customers. Moreover, the Thomas Cook can sell its holiday packages
with the help of online marketing, telephonic sales, direct sales and call centres etc. In
selective distribution technique, varied range of products are availed to target customers
according to their preferences and choices (Weeden and Boluk, 2014).
In the present case scenario, Thomas Cook is using selective distribution channel for
Chinese students, whereby a tour package is designed according to their preferences to
explore London and Paris. Each traveller has different moods, interest and choice, according
to which he choose his tourism destination, so tour operators required to make such tour
packages which will provide lavish services to them (Schegg, and et. al., 2013). Moreover, in
the exclusive distribution technique, services and products are availed to selected target
audience. In order to maintain the fame, reputation and goodwill of company, Thomas Cook
often use this distribution channel. It will also help the brand to sustain its premium brand
image, according to services catered to customers (Senders, Govers and Neuts, 2013).
However, the products and services provided to customer under this distribution channel will
cost high and satisfy the needs and desires of customers in an effective manner.
Direct sale method is also an effective method to sell varied tour packages to
customers. In this method, face to face interaction is done with customers, phone calla is alao
made to target audience. In this method, the use of traditional and online brochures will be
more useful and profitable (Sigala, 2013). All relevant data of tour packages provided by the

online marketing, email marketing can also be used by Thomas Cook to increase the
customer base. So, Thomas Cook can use various internet sources in order to render its
services to mass audience across the globe.
TASK 4
4.1 Evaluation of strategic decisions made by tour operator
In the realm of globalisation and high competition in the market place, it become
necessary to maintain the position of company and create cutting competitive edge in the
volatile international market (Stangl, Inversini and Schegg, 2016). In order to survive for long
run in the market place, it has become necessary for tour and travelling industry to make
strategic decisions in a view to compete with core competitors and attain monopolistic market
share in a significant manner. In the context of the present scenario, Thomas Cook and its
specialised competitor C&K is aimed to plan strategic decisions, with a view to gain the
market share, improve the economy of country and increase customer base with improved
brand image worldwide. The are strategic and tactical decisions of Thomas Cook are given
below: Discounted Pricing strategies: Pricing is an important aspect of travel and tourism
industry, in order to increase the degree of satisfaction level of customers
(Swarbrooke and Page, 2012). Thomas Cook is providing high discount rate tour
packages by the assistance of fixed price contract. With the aid of fixed price contract,
customers will be able to get high discount on their desired holiday tour packages.
Thomas Cook also render discounted facilities and services to Chinese Students, in
terms of accommodation, transportation, and food services who want to come London
and Paris for sight scene.
 STP (Segmentation, Targeting and Positioning): It is the vital strategy decision that
made by tour operators, whereby segmentation is done on the basis of demographics,
geographic and behavioural conditions., target is made while positioning the
customers and tourism destinations (Tirasattayapitak and et. al., 2015). Decisions will
be made by specific tour operators according to their consumer segment, after
analysing the competitiveness of the company. Thomas Cook segment its market on
the basis of preference and interest of people and tourist destinations. Customers are
provided with detailed understanding of the tour package which is segmented on the
basis of their choice. Moreover, it can also target its customers with the help of online
marketing and direct selling techniques.

After analysing and monitoring the tactics and strategic decisions of Thomas Cook, it
is also necessary to study the strategic decisions of C&K. The following strategies are
undertaken by C&K: Seasonal View: According to the different types of seasons, the pricing of various
type of sales will vary. These seasons can be classified as lean season, peak season,
according to which pricing of sales of tour packages will be set by different tour
operators and agencies. C&K particularly lay emphasis to price its tour packages in
accordance with the festive seasons. By imposing this, the company will be able to
gain higher profits and its sales revenues will also be increased in significant manner.
 Competitive pricing and promotional strategies: The company need to analyse
violations in current market trend, according to which its promotional and pricing
strategy will vary. In order to bring competitive advantage, C&K need to adopt latest
competitive pricing tools and use modern promotional techniques. With the
assistance of modern promotional techniques, like online marketing, direct marketing,
campaigns and other methods, the company can attract large number of customers.
Along with this, the overall sales and revenues of the company will also increase.
4.2 Comparison of tactical decisions by tour operator in different situations
The decisions which are made by tour operators to manage day-to-day activities
related ton tour operations can be defined as tactical decisions. Every tour and travelling
company required some tactical decision in order to run their business smoothly. For proper
functioning of the business activities, organisation of accommodation ad maintaining good
rapport with several stakeholders and customers, it is required to implement tactical
decisions. It will assist the company to maximize their revenues, earn high profits and
maintain their position in the volatile marketplace. In the context of this, the tactical decisions
of Thomas Cook and C&K need to be discussed, which is stated below: Management: Thomas Cook efficiently manage its external and internal control
system with the assistance of strategical decisions and tactics. Moreover, to attain the
cutting edge of competitive advantage, this company has adopted many practices.
However, C&K failed to provide high technologies and effective instruments to its
workforce due to which it has to face high turnover rate. So, it is recommended to
C&K to implement various motivational theories within the workplace, so that its

employees can get motivation and inspiration. As a result of which, their performance
will also tend to increase, which will increase the productivity of the company.
 Pricing Structure: It is one of the vital decision that is taken by companies, in order to
gain high revenues and profitability. Therefore, Thomas Cook also need to use its
pricing strategies in an effective way, to maintain its position in competitive
marketplace and sustain stability. Moreover, if the price of holiday tour packages will
be at reasonable rate then more customers will tend to attract and seek for utilising the
opportunities. In addition to this, it is also concern about its profit margin, which can
be attained by implementing competitive pricing strategies. However, the price of
C&K travel and tourism packages is high, due to which it is able to gain high
competitive advantage and able to satisfy the customers by providing lavish services
and customized products. Furthermore, it will also able to make its prominent position
in the competitive market with the implifications of strategic decision and tactics.
CONCLUSION
It can be inferred from above report of Tour Operation Management that, The Thomas
Cook has effectively managed its all tour operations. It has provided all premium services to
Chinese students with memorable tour of London to Paris. Moreover, many developments
and improvements have also been made by tour operators of the travel and tourism industry,
which will increase the profitability of these companies. It can also be concluded that, there is
great significance of various stages involved in the holiday planning along with the suitable
methods of distribution channel adopted by above cited company, in accordance to attain
high profits and growth in competitive marketplace of tour and tourism industry.
Furthermore, by developing an effective and impressive brochure, the tour operators will be
able to increase its sale and profitability.

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