Tourism Operations Management

This assignment delves into the field of tourism operations management. It examines various aspects such as revenue management strategies in the hospitality industry, the application of OR models for optimizing disaster operations, and sustainable approaches to visitor attraction management. The analysis also includes the impact of big data analytics on logistics and supply chain management within tourism.

Tour Operation Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Analyse effects of current or recent trends and development on tour operator industry......1
Task 2...............................................................................................................................................2
2.1 Assessing the various stages and timescale for developing holidays..................................2
2.2 Sustainability of different methods of contracting for holiday components and types of
tour operators..............................................................................................................................4
2.2 Calculations of selling price of holiday package..................................................................5
Task 3...............................................................................................................................................5
3.1 Evaluation the planning decisions taken for the design of a selected brochure....................5
3.2 The suitability of alternatives to a traditional brochure for different types of tour operators
.....................................................................................................................................................6
3.3 The suitability of different methods of distributions used to sell a holiday by tour
operators......................................................................................................................................7
Task 4 ............................................................................................................................................8
4.1 Evaluate the strategic decision made by different types of tour operator.............................8
4.2 Compare the tactical decisions that could be taken by a selected tour operator in different
situations.....................................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
In the current scenario, travel and tourism industry has wide scope in overall sector as it
is growing rapidly and contributing more to the UK economy. The business of tour operation is
very important constituent in tourism sector. Tour operator is considered as a firm where they
provide holiday packages to the customers including travel and accommodations that are booked
for people. They focus on giving the best facilities, better services and provides luxury holidays
to the audiences with favourable price. This project is based on Trailfinders Ltd. which is a travel
and tourism firm (Afshar and Haghani, 2012). This company has around 29 centres in the UK
and three others in Ireland. It provides various tourism facilities such as holiday packages with
various services as airlines, hotel and resort, etc. There are approx. 1000 staffs working in this
firm. This report will explain the effect of current and recent trends of tour operators industry
and timescale for developing holidays. It will evaluate different methods of contracting for
holiday and types of tour operators. This will calculate of selling price holiday and plan for
design a brochure and its sustainability for tour operator. Different methods of distribution to sell
a holiday. There are various strategic and tactical decisions that also will discuss here.
TASK 1
1.1 Analysing effects of current or recent trends and development on tour operator industry
According to environment, there are various changes occurs so businessman have to
face. Travel and tourism industry is one of the most important constituents in the business so it
also influence by current or recent trends in positive as well as negative. It is necessary to adopt
new changes for attracting number of customers towards organisation. Competition is increasing
fast and tough and companies are focusing in adopting the best strategies for surviving among
competitors so that they can develop their industry and also create more awareness about tour
packages. Trailfinders which is travel and tourism firm is also concentrating on developing their
business by making appropriate decisions towards adoption of new trends and provide better
facilities as well as services for the development (Ahmadi, 2015). There are various recent
trends which must be adopted by firm for the purpose of meeting customers’ needs or wants in
an effective manner.
Internet and latest technological equipment: This is the best and most trending method
which is very effective for promoting the products as it is an essential for identify unique or new
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destinations places by using internet source. It is very supportive in discovering more attractive
places so that visitors can be attracted. Company uses this tool for conveying the message as well
as providing information through official websites and social media (Seifi and Tootooni, 2015).
Trailfinders is giving the first priority to internet source for creating awareness among customers
by providing important information regarding tour packages and various kinds of services or
facilities while travelling. Internet is effective for connecting with a wide range of people. So,
company designs the websites and also publishes some online ads for conveying the message.
Environmental awareness: It is compulsory for every business to screen the environment
and find out its effects on the business firm. In the travel and tourism industry, there are various
kinds of changes involved in this that are generally made by the government towards some tour
destinations and historical places. Environment is dynamic in its nature and therefore, company
is required to conduct survey for analysing market trends as they receive data about recent
trends, customers and competitors that are very important for making decisions for tour
packages.
Types of tour operators who organise holiday packages such as:
Direct sell operators: In such kinds of organisation, they sell tour packages directly to the
public. They attract many customers by providing some offers or schemes to them. Generally,
direct sell operators are mediators who sell these types of holiday package to people after buying
those from companies and they do not take any commission. It is easy for customers that they
can purchase tour packages from brokers at reasonable price (Allahyari, 2015). Trailfinders Ltd
also does the same as they design tour plans and sell these to different tour operators. It supports
in reaching at potential customers in the market and achieve competitive advantages.
Domestic operators: This method is traditional in the market as in this, company sells
various tour packages to operators and they reside the best places as well as destinations during
providing better facilities and services to people. It is an essential for finding latest trends or
market in the travel or tourism industry.
Task 2
2.1 Assessing various stages and timescale for developing holidays
This is the main purpose of any travel and tourism industry to plan a better tour package
for creating more customers and attracting them towards organisation. There are several stages
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involved in the planning process for development of holiday package. It is the responsibility of
tour operator to plan better according to customers for satisfying their needs or wants by
providing the best quality of services to them. Trailfinders Ltd focuses on adopting various kinds
of tools or techniques for designing the attractive holiday package with unique quality of
services. Here are some stages that are involved in this like
Market research: This is one of the most important components for every organisation
that supports in identifying overall market trends. It is the first step for developing holiday plan
as in this, company tries to identify competitors, customer’s taste and their choices regarding
particular destinations (Salari, 2015). There are several organisations that conduct such kinds of
research or survey process for gathering information so that holiday packages can be made in an
effective manner. Trailfinders Ltd generally conduct market research through online survey to
find customer’s demands and their behaviours according to different destinations and they use
official websites for this purpose.
Planning and scheduling: This is the second phase of developing holiday as after
analysing the market trends or after survey process, organisation make implementation plan for
effective tour operations. They plan for designing the tour package as per customers’ demands
and needs as well as they schedule this by setting the timing for people. Scheduling generally
contains proper plan by considering the time and season of holiday.
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Illustration 1: holiday packages

Forecasting: This is also a an important phase where manager make effective holiday
packages through measurement. In such types of process, it is must be requires to assess the
climate by management regarding the special places or destinations which support in making
appropriate plan and execute those tour packages (Di, 2013). For an example, people generally
want to visit the London during snowfall but it may not be possible for travelling at that time so
operators can deny this plan due to reason of heavy snowfall.
Contracting: It is very helpful for every organisation because this helps in providing
better facilities and services to the clients for satisfying their needs and desired expectations and
they will enjoy the holiday by feeling fun, relax and having a great experience. Trailfinders Ltd
is focusing on providing better services to the people for making them loyal. In this, manager try
to adopt various effective strategies, new ideas as well as innovation for attracting more
individuals and for target audience so that relations can be made strong better and strong (Pietro
and Partlow, 2013). They generally make contract with various vendors such as cab facility,
hotel and restaurant etc. for making effective or successful holiday package so that they can
increase satisfaction level of customers.
2.2 Sustainability of different methods of contracting for holiday components and types of tour
operators
For every travel and tourism industry, these methods are very helpful because it support
in cutting costs or reduce expenses as much as possible so that customers can save their money
for demands and get better services as they required for fulfil needs or wants. Many organisation
used various methods for their holiday packages as they provide better facilities and quality
services to them for their satisfaction. It is an essential to make strong relationship among
customers and attract them towards organisation. Trailfinders Ltd two types of methods such as:
Sales contract: In this method, organiser find effective tour packages and try to sell these
among people with reasonable price. This contract generally made in peak season and give to
tour operators for selling purpose. It must be depends on the customers where they want to go.
Trailfinmders Ltd always focus on customers satisfaction. Therefore, they pay for actual
consumption of the products or services by the people after that they return it to vendors. For an
example, a Chinese group wants to visit London and they demand for staying in 3 star hotel, then
tour operator will book 9 rooms for them but if customers use only 7 rooms then it is the duty of
trailfinders that money back to the clients and pay only for 7 rooms.
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Fixed contract: In this method, company try to satisfy their customers by providing
effective services and better facilities with vendor's services. They consider their organisational
status while providing these kinds of facilities (Belady and Larus, 2014). Trailfinders Ltd
maintain or manage the relationship with vendors during making contracts. Vendors included
catering, cab facility, restaurant, hotel etc. they take responsibility to serve best and pay for any
other services which is not sold. So it is beneficial for both as customer and organisation as they
can cover several risks or uncertainty.
Therefore, trailfinders Ltd is maintaining the relations among people and vendors for attracting
them, towards organisation and make better tour packages for them (Boyle and Scherrer, 2011).
It is very beneficial for achieving competitive advantages and accomplish their set goals or
objectives.
2.2 Calculations of selling price of holiday package
There is a special rate for the group that has been proposed by Grand Casselbergh in Bruges of
96 euro for 2 adults sharing. So the selling price for the tour package and price per person has
been calculated from given information such as:
Accommodation cost: 96*21= 2016
96/1.12=85.7
85.7*21= 1800 (for one night)
1800*5 = 9000 (for 5 days)
Details Price(in euro)
Accommodation cost 9000
Transportation cost 11200
Charges of tour guide 945
Total cost 21145
Add: Profit margin @ 33% 6977.8
Sales price 28122.5
Hence, it can be defined that cost of food is not summarized in the above computation of
selling price. Therefore calculated price of selling that packages must be around euro 28122.5.
Per person:
= 28122.5/21= euro1339.18
Therefore, it can be analysed that by considering all these aspects, students can make
their decisions regarding purchasing and can select a holiday package according to company
reputations, price and many more factors.
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Task 3
3.1 Evaluation the planning decisions taken for the design of a selected brochure
In the travel and tourism sector, brochure play vital role in creating awareness among
people because it is an effective tool that support in providing information regarding holiday
packages or any other destinations to the customers (Chand and Katou, 2012). Organisation can
promote their holiday package through brochure in the market of national as well as
international. Trailfinders focus on making attracting brochure’s designs for the purpose of
providing the services or better facilities and create awareness among target audience regarding
tour places or destinations. This firm try to attract numbers of customers through brochures so
they make favourable decisions by considering this. It is must be required to make a plan for
effective brochure which is based on recent market trends and current environment for achieving
competitive advantages and attains organisational goals or objectives. In the brochure, company
mention about its actual services with photographs and necessary contents which are providing
to the clients. There are various things that involves in this such as colour of page, designs,
photographs, contents, numbers of pages and effective marketing tools for services. For the
development of effective brochure, tour operators have to follow various activities such as
planning, organising and implementations.
Formatting of the content: This is the main aspect of brochure as it must be in effective
formate because company use brochures for selling their holiday packages in reasonable prices.
Tour operators considered this component and make it more visible by using various fonts and
colours (Dhiman, 2012). This is also necessary to use appropriate and matching colours in
efficient manner. Information must be written in proper formate in the brochure.
Budget and target market: It is an important process for finding the target market and set
the budget according to them. In this, organisation find their potential customers and ensure that
what types of people may prefer this. These entire procedure is based on the a particular
brochure and its costs that may influence on the business organisation.
Formate of the brochure: In this phase, manager operator make decisions regarding the
brochure as it should be multicolour or single colour etc. this is an important step in which
includes brochure's looking and it does matter that how it looks because it helps in attracting
number of customers towards organisation. In this formate defines the name of company, size,
colour, brochure's features, tenure and prices of packages etc.
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Stages of designing of the brochure: In this method, the design of brochure is estimated
for solving the problem of designing son that manager can take appropriate decisions regarding
this. Therefore, it must be effective and efficient because adventure holiday is based on brochure
as it reflects on the decision making.
3.2 The suitability of alternatives to a traditional brochure for different types of tour operators
In the tour operation management, brochure is most important aspect for the tour
operators because it support in providing information to the customers regarding holiday
packages as in this mentioned complete descriptions and details so that tourists can easily
understand their desired destinations and entire procedures for visit purpose (Dietz, 2011).
Trailfinders Ltd make strategies for attracting numbers of customer through the brochure as they
focus on creating it in suitable manner for development of their products or services. In the other
words, brochure is the part of print advertisement that helps in providing information regarding
holiday , so it is a promotional tool for promoting particular products and services and create
market awareness among customers so that they can attract them for effective holiday or tour
packages. The adventure holiday improved their brochure's quality for attracting or influencing
target audience. There are several methods of delivering the information as well as convey the
messages to the huge audience like traditional method. Tour operators can adopt various
strategies and techniques for the adventures holidays. Some alternative are given below for
different kinds of tour operators such as:
Email brochure: It is very helpful for outbound services as tour operators provide
information with the help of email to the potential customers (Gibson, 2012). It is essential for
travel and tourism industry as tour operators use this method for passing the details or
information about holiday packages to the people for the purpose of make aware about
destinations, places and prices. It is cost effective method where tour operator can publishes
various services in the market and it also support in building good relations among customers by
regular connecting with them.
E-brochure: It is also an effective advertising tool that helps in creating market
awareness about company's products or services, so this a suitable way for interacting with
number of customers in appropriate manner. In such kinds of method, manager post a e-brochure
at official website of Trailfinders Ltd for the purpose of making traffic on the particular website.
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It will be easy for customers to visit company's site and receive information through these
brochure.
Video brochure: It is an effective way to attract more audience and get attentions from
them because it support in providing whole descriptions of the packages using attractive video
brochure in which mention about company's products and services as they use different photos of
various destinations so that customers attracts towards the organisation products as well as
holiday packages. It is suitable for inbound tour operators to attract more people.
3.3 The suitability of different methods of distributions used to sell a holiday by tour operators
Trailfinders Ltd generally considered several kinds of tools and techniques for the selling
of products and services through media support in the market. Every organisation focus on
attaining their goals and objectives by adopting various methods and strategies. Trailfinders also
try to adopt best strategy for creating more awareness among people (Hoyos, 2015). They also
believes in making strong relations by providing better facilities as well as services to the target
audience for increasing loyalty. Manager can use past brochure for providing important
information to the people. There are various kinds of firm in travel and tourism industry who use
brochure for creating awareness among customers towards organisational products and services
and also it support in listing their services and packages which provides clear ideas to the clients.
Trailfinders Ltd is one of the best firm of travel and tourism industry who used different kinds of
methods for holiday packages and increase the demand in the market through proper awareness
such as:
Internet: It is the most famous and easy way to promote the products or services in the
market. It is very useful method for every organisation as they can increase their sales by
promoting their products or services through internet (Morales, 2015). It is helpful in generating
revenues in the comparison of direct sales and people can access it at anywhere. Trailfinders Ltd
is focus on giving advertisement on the internet and social media then other promotional tools
and they put several posts or ads on the company's websites so that they make aware about tour
packages to the customers regarding particular products or services.
Direct sale: In this marketing form, the employees of tour operator meet with various
customers for the purpose of selling their tour packages with attractive discount or offers in
effective price and outlets is also another way of the direct sales. It is beneficial for both
customers and organisation by building strong relations among them through direct or face to
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face contact. Promotional tools are very effective that support in increasing revenues and growth
by sales volume of the firm. Trailfinders also focus on generating their profits by increasing sales
and achieve competitive advantages.
Telephone: This is also an effective tool for providing information as tour operators can
easily contact with their clients and make them aware about participative holiday tour packages.
In this method, management stay connected with selected person and directly contact with them
by telephonic source (Huang, 2012). Therefore, Trailfinders Ltd can build their relations with
people for generating higher profits through telephone method. It is very supportive in increasing
lead of interested people as well as regular contact with them for maintaining harmony system
and create trust on customers mind.
Task 4
4.1 Evaluate the strategic decision made by different types of tour operator
Tour operators are growing fast in the business market. They make different market
strategies decisions at every point in various conditions of changing market. Travel and tourism
sector lead to several functional working for the reshaping them.
There are some aspects that involved in strategic decisions making such as:
Pricing:- This is very important for every business firm as tour operator make pricing
strategies. Under this procedure, they consider pricing packages so that numbers of customers
can be attracted which helps in generating more profits (Lu, 2012). Trailfinders Ltd has set their
pricing according to tour packages and also in reasonable for reaching at potential customers.
Likeness:- It generally refers to the reputations of any particular firm that can impact on
decisions making of the buyers in the market. It also support in making customers loyal towards
organisation products or services. Trailfinders Ltd can create strong brand image in the market.
Choice of supplier: In this aspect, it consider the quality of services which are delivering
by the suppliers of agency, so organisation make decisions regarding types of services rendered
by them.
Diversity in packages:- It refers with different kinds of packages which offered by tour
operators. It should be more attractive by using unique places and features so that they can earn
the sight of people. Trailfinders Ltd provides several options to its buyers.
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Channel of promotions:- This is important decisions of the Trailfinders Ltd as they
requires to consider various promotional channels, analyse them and then select best alternatives
among several options. It helps in getting attentions from people in the market.
Designing of brochure: This step is related with image of the firm so Trailfinders Ltd
use better designs or attractive matter for their brochure so that people can read it in proper way
(Lovrić and Vervest, 2013). Company also focus on effective distributions channel of brochure
for providing information to the target audience regarding holiday packages for the purpose of
gaining attentions.
Relationship with customers:- It is an important decision in which manager decides to
provide better services at cheapest cost to the target audience so that they can build strong
relations among the people and make them loyal towards organisational tour packages. It also
contributes in increasing goodwill in effective manner.
4.2 Compare the tactical decisions that could be taken by a selected tour operator in different
situations
In the travel and tourism sector, tour operators requires to make several kinds of decision
in different situations for surviving in the market. Tactical decisions are very supportive in
resolving nay types of issues or problems which must be applied in strategic decisions within an
organisation (Nakayama, 2012). These circumstances have short term influences on the
organisation. In the tactical decisions included negotiation process regarding services which are
providing by an agency, room facility, cab facilities, food and beverages etc. tactical decisions
generally affects on day to day business operations. There are some comparison of tactical
decisions which are taken by the Trailfinders Ltd such as:-
Government: In the travel and tourism sectors, government are playing vital role in
supporting to develop the industry because it contribute to the economy growth. Company
requires to overlook at different types of policies of government in any country where they are
going to plan a tour. Trailfinders Ltd has to make appropriate decisions according to government
interventions for dealing without any barriers. They must be focus on government support for
promoting their business.
Competitors: There are lots competitions at the marketplace in travel and tourism sector.
Therefore, company requires to take tactical decisions for competing with strong competitors and
surviving in the market. Trailfinders Ltd provides several kinds of offers and discount as well as
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attractive scheme while offering holiday packages. Company requires to make appropriate
decisions so that they can achieve competitive advantages.
Changing needs of customers:- Business environment is dynamic in nature so changes
are not constant (Bucks, 2012). It affects on the organisation and its operations because of
changes of customer's tastes, preferences and choices regarding the tour or holiday packages
according to time. Therefore, company requires tactical decisions for these changes.
Price:- Pricing decisions also considered in the tactical decisions as company requires to
change their prices according to customers, competitors and cost factors and also focus on people
behaviours. They charge the prices which must be suitable or affordable by customers. If
competitors down their market rate in the holiday package then Trainfinders Ltd also has to
reduce their price.
CONCLUSION
From the above project report, it has been concluded that travel and tourism industry is
growing fast in the present scenario, and there are tough competition in the market, therefore
Trailfinders Ltd has to make various decisions regarding to the development of holiday
packages. In this report, it covered various points such as analysed recent or latest market trends
and also assessed timescale for developing the holiday packages. There are different methods of
contracting for components of holiday and calculations of selling price. Planning decisions of
brochure and its suitability for various types of tour operators also discussed in this report.
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Tour and operation management 2018. [Online]. Available through:<
https://www.slideshare.net/prejimp/tour-operations-management>.
Holiday package 2012. [Online]. Available through:
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package-that-will-ultimately-satisfy-every-tourist/93510>
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