Tour Operation Management Report: Thomas Cook Case Study Analysis

This report delves into the intricacies of tour operation management, examining the impact of current trends and developments on the industry, with a specific focus on Thomas Cook. It explores the stages and timelines involved in holiday package development, assessing various contracting met...Read More

Tour Operation
Management
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Effects of current and recent trends and developments on the tour operator industry..........3
TASK 2............................................................................................................................................4
2.1 Assess the stages and time-scales involved in developing holidays .....................................4
2.2 Evaluating the suitability of different methods of contracting for different components of
the holiday and different types of tour operator..........................................................................6
2.3 Calculating the selling price of a holiday from given information below.............................7
TASK 3............................................................................................................................................8
3.1 Evaluates the planning decisions taken for the design of new brochure...............................8
3.2 Assess suitability of alternatives to a traditional brochure and recommend most appropriate
for the tour package.....................................................................................................................9
3.3 Evaluate the suitability of different methods of distribution used to sell holiday for
different types of tour operators.................................................................................................10
TASK 4..........................................................................................................................................11
4.1 Evaluate the different strategic decisions made by the different types of tour operator in
different situations.....................................................................................................................11
4.2 Compare tactical decisions that could be taken by selected tour operator in different
situations....................................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
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INTRODUCTION
Travel and tourism sector is having great opportunities in the market. It has been noticed
that the tour planners and operators plays vital role in the success of sector. The tour planner are
mainly responsible for arranging and managing all the services related with travelling package so
that they can easily satisfy the leisure and luxurious need of the travellers (Dezdar, 2012). In
current market conditions the tour operators are focused towards improvement in services as per
customer needs so that goals and objectives can be accomplished in appropriate manner. There
are various tour packages that are available in the market. Tour operators are also focused
towards advancing the coordination with hospitality organisations so that better opportunities can
be identified in order to meet objectives (Damonte, 2013).
Current report will focus on work culture of Thomas Cook in order to understand the key
aspects that relates with the tour operation management. It is considered as one of leading tour
agency that operates business activities in diverse nations. It will focus on strategies that helps in
effective measurement of steps that are essential for creation of tour package. Furthermore, it
will also studies the various trends are enlargement of the cruise marketplace, outgrowth of the e-
commerce, funded airlines etc. Along with that the supportive statements like research, planning,
marketing of tour plan will also be analysed in the report.
TASK 1
1.1 Effects of current and recent trends and developments on the tour operator industry
As per the detailed study, travel and tourism sector is having great opportunities in the
market. It plays a vital role in development of economic system by using its diversity. In addition
to this, the tour operators are essential section of the sector that provides wide range of services
to the customers as per their needs and requirements. It has been noticed that the Thomas Cook
PLC mainly focuses on designing of travel packages as per different needs of customers
(Jayawardena, 2013). There are various segments that need to be consider by the businesses
during creation of tour package. The tour operator services are mainly classified in two sections
which are named as inbound and outbound services. Inbound tour operators provide services to
customers who visit to UK from some specific purpose. It has international scope and cover
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various aspects of international visitors. On the other side, outbound means the services are being
offered to residents within nation (Voxted, 2011). It has domestic scope and provide support to
development of industry. Market conditions has changed in diverse manner and now Thomas
Cook and other firms are focused towards better customer service in reference to travelling,
accommodation, leisure activities, etc.
It has been noticed that the tour operators are nowadays more focused towards use of e-
commerce. It is because e-commerce has become one of critical section that has enhanced
opportunities for the sector in diverse manner. Customers has started using internet services for
tour plan booking and other activities (Buck, 2011). It has forced Thomas Cook PLC to enhance
its focus on designing of websites so that key need of client can be accomplished in appropriate
manner. Therefore, with the help of e-commerce activities it will also benefit the customers as
they would ensure online booking of their packages. It saves time period and allows businesses
to deliver services in the best way (Keillor, 2007). It also helps Thomas Cook in targeting
customers more towards businesses which also enhances the opportunities for the sector.
Companies has also started performing various activities that provides effective
identification of customer needs. As per the consideration of customer needs the business firms
are having formation of plans and packages. It provides long term sustainability and leads
business to impressive level of success (Lee, 2011). Number of technological tools are being
used by management of Thomas Cook PLC to have improvement in services and provides better
satisfaction to the customers. Number of budget services are also being introduced in the market
that allows businesses to have sustainable development. Budget hotels, airlines, etc are the best
example of low cost services. It attracts more customers and provide better satisfaction level.
TASK 2
2.1 Assess the stages and time-scales involved in developing holidays
There are number of stages that need to be consider by the tour operators while having a
development of holiday packages. Thomas Cook PLC is one of leading tour operator and it deals
with various customers that belongs to different needs. In this respect, it is significant for
management to have proper segmentation of travellers so that development of holiday packages
can be accomplished in appropriate manner (Peters, 2013). Thomas Cook is planning sightseeing
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tour for the Chinese student from London, UK to Paris and France in the summer holiday in
August 2016. Tour plan will cover 5 days tour for 15 students. Following steps need to be
consider effectively by the management while having development of package.
Examination of new attractions: In order to have effective development of the tour plan,
it is significant for business entities to have proper knowledge about attracts that are available in
the market. Selection of attraction must be according to customer needs so that goals and
objectives can be accomplished in appropriate manner (Rana, 2014). The foremost stage in
developing the summer holidays for Chinese student include examining the different
destinations.
Market Research: For effective designing of plan the customer needs and market trends
must be evaluated in appropriate manner. Market research is considered as an activity that
provides information about these factors and facilitates in meeting goals and objectives.
Information about recent developments in regard to destination is also essential (Nath, 2013).
Planning and scheduling: In this, the activities need to be planned as consideration of
customer needs and market trends so that better satisfaction can be provided. It also covers
decisions about transportation, accommodation, etc. The scheduling of activities must be in
appropriate manner so that goals and objectives can be accomplished in desired form.
Negotiation: It is also considered as one of critical aspect that leads business to better
opportunities. With an assistance of this, the negotiation with service provider need to be taken
into account so that margin of profit ratio can be enhanced (Hjalager, 2011). Negotiation in
respect to the food, accommodation and transportation is vital as it enhances ability to allocate
resources in appropriate manner.
Marketing: Effective promotion of design tour plan is also essential in order to create
better awareness among customers. It facilitates in advancement of sales ratio so that
organisational objectives can be achieved. The last stage in the tour development is to ensure
proper marketing of the planned tour package for the Chinese student.
Stages involved in developing tour packages Time Scale
Examining new destination 1 month
Conducting market research 2 months
Planning and scheduling 2 months
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Negotiating 3-4 months
Marketing tour packages 4 months
2.2 Evaluating the suitability of different methods of contracting for different components of the
holiday and different types of tour operator
It has been noticed that the tour operators performs number of activities in order to meet
objectives and lead business to impressive level of success. They have interaction with diverse
parties for having effective designing and promotion of tour package (Culver, 2015). As per
Thomas Cook PLC may focus on methods that can provide perfect holiday package in reference
to accommodation, transportation, etc.
In order to have effective accomplishment of the accommodation services the business
entity may focus on contracting with hotels. It is one of most commonly used technique that
provides appropriate selection of hotels in order to meet accommodation standards. For example,
the Thomas Cook PLC can have agreement with Marriott, Hilton, etc as per the needs of
customers. It leads business to sustainable development and provide various opportunities in the
market. This duties are performed on the basis of long or short term contract thereby it becomes
easy to prepare holiday package (Aktas, 2013). Contracting with travel agencies is also essential
because it helps in meeting key need of transportation. Transportation is one of most essential
factor that provides convenience aspects. Agreement must be in ethical manner so that risk
factors can be reduced in order to meet goals and objectives. Quality of service also need to be
consider in appropriate manner for sustainable development. Apart from this, the agreement with
other suppliers and vendors is also necessary in order to meet goals and objectives. Under this
tour operator select some suppliers who provide information related to vendors or other tour
operators (Tsiotsou and Ratten, 2010). Approach to guide can be accomplished in this section so
that better services can be provided to the customers. Thomas Cook has its own venture so they
can have temporary alliances as per specific needs of customer. Cox and Kings and Thomas
Cook PLC both are focused towards both kinds of tour services. It enhances their opportunities
in the market and lead businesses to impressive level of success.
In addition to this, the Cox and Kings have contract with marketing people so that proper
advertising of holiday package can be taken into account. It is a contract that is mostly occurs for
short term period so that goals and objectives can be accomplished in appropriate manner.
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However, such kind of contract are taken only for some specific customers who become ready to
pay higher prices (Williamson, 2013). Other than this, it is also significant for management of
Cox and Kings to make sure that the cost of operational activities can be cut down. It enhances
the opportunities for the organisation and leads business to impressive level of success. Proper
relationship with guide and other networks is also essential in order to the meet the standards of
services. It enhances the growth of Cox and Kings and provide various benefits in terms of
monetary and non-monetary aspects.
2.3 Calculating the selling price of a holiday from given information below
As per the detailed study, holiday package creation and implementation demands funds
so that activities can be performed in appropriate manner. Holiday packages cover number of
services such as accommodation, transportation, food, etc. All these services have different cost
in the market so before final price to the customers the management need to analyse costing of
project in desired form. In other aspect, the calculation and budgeting have direct impact on the
pricing strategy of Thomas Cook PLC (Swarbrooke, 2012). It means the management need to
consider in optimistic form for attaining sustainable development. Decisions in regard to services
and marketing also have dependency on the budgeting aspects. As per the given case aspects, the
Thomas Cook PLC has a partnership with the St. Michelle Hotel. Accommodation provider has
its fixed pricing of 60 euro for twin rooms, it means two students will have sharing of one room.
It means as per the size of group the 8 rooms will be accommodated under tour plan. According
to proper evaluation the total costing of accommodation services is 381.36 pound. However, the
charges of transportation is 1000 pounds and for breakfast and dinner it will be 119.25 pound.
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
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Selling price 1870
According to evaluation of budgeting aspects, it can be said that the total profit on the
holiday package will be 10% of overall cost. It clearly indicates that the Thomas Cook PLC has
designed effective tour plan and it provides better satisfaction to the customers. Along with that
the pricing of product is nominal that also attracts more and more customers. It is advantageous
to have sustainable development and lead business to impressive level of success. Calculation
indicates that the transportation will be charged as 1000 pounds because the taxes and fuel cost is
also covered in that. It is one of beneficial aspect that allows Thomas Cook PLC to manage low
cost services with optimistic quality (Boniface, 2009). Above calculation also indicates that
guide is one of critical aspect for the plan because it is a holiday trip for students. It means guide
is necessary to understand the background of destination. Overall costing of guide services is 200
pound that also helps business to cut down the costing of overall project. Hence, cost led pricing
is helpful for Thomas cook whereby customers are offered services in relatively lower prices.
The overall cost is most appropriate as per segmented group so management can continue with
project. Moreover, the profit margin ratio is also optimistic that enhances the opportunities for
the business firm in the market.
TASK 3
3.1 Evaluates the planning decisions taken for the design of new brochure
In order to have effective promotion of the designed holiday package the business firm
needs to have effective designing of the new brochure. It will facilitate in effective
accomplishment of goals and objectives. In addition to this, the brochure is considered as a
booklet or folder that provides detailing about the product and services. It helps in attracting
more and more customers towards business and lead business to impressive level of success
(Agyei, 2013). It is also referred as a medium that allows management to communicate
information about product and services among customers. In travel and tourism sector the
brochure are mostly used to have promotion of services so that business can easily manage
diverse aspects.
In present situation, the management of Thomas Cook PLC need to design brochure for
promotion of tour plan. In this, proper planning is required as per customer needs and features of
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holiday plan. There are few steps that need to be followed by the management for effective
designing of brochure (Korstanje and George, 2012.). Firstly, management need to have
selection of format, it means the planning decisions need to be taken into account for designing
the new brochure. It cover structure, style and other essential aspects that need to be consider in
brochure designing. It is necessary for management to make sure that the designing of brochure
is in such manner that students get attracted towards business. Structure must be in appropriate
manner so that students can easily understand the information which is provided in the folder
(Agyei, 2013). Management also need to make sure that the formatting of brochure is beneficial
to attract customers so that business can have impressive level of success. Visibility aspects also
need to be consider in appropriate manner to have effective designing of the brochure.
Decisions about targeting and budget is also essential so that goals and objectives can be
accomplished in appropriate manner. Management must decide proper budget to ensure that the
activities are properly managed. Target customers in current situation is students so brochure will
be distributed near colleges and educational institutions. Brochure must cover information about
the pricing of the holiday package in order to attract customers towards product (Boniface,
2009). Print specification must be desired form so that creation of brochure can be completed in
desired form. In this, management need to ensure about cover page of the brochure. Management
will consider colour, design, name, graphics, etc to meet the standards of print specification.
Decisions must be taken into account as per budget and needs of customers.
3.2 Assess suitability of alternatives to a traditional brochure and recommend most appropriate
for the tour package
In current market conditions, the businesses are more attracted towards use of
technological tools in order to have better success in the market. Tour operators like Thomas
Cook PLC are having up-gradation in the services by using technology. However, there are
number of alternative methods of brochure that can be used by the businesses in order to meet
goals and objectives. With an improved focus on alternative methods the Thomas Cook PLC can
easily provide information to customers in regard to the tour package and services (Swarbrooke,
2012). Online or e-brochure is one of most commonly alternative method that helps businesses to
have effective promotion of products and services. Company can save and upload soft copy of
designed brochure on the internet. Online banners on website is also beneficial for the
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organisation and helps in attracting more and more customers. It has been identified that with an
improved focus on technological uses the company can easily provide accurate detailing among
customers in regard to product and services (Williamson, 2013).
Company can publish advertisement on the social networking websites in order to create
awareness about product and services. E-banners can be used in order to attract more and more
customers and lead business to impressive level of success. Through using email system the
organisation can have distribution of e-brochure, it will also provide better opportunities to the
management (Tsiotsou and Ratten, 2010). As compared to traditional brochures the use of
technology is beneficial for the management of Thomas Cook PLC. It allows to have low cost
marketing because e-brochure costing is low as compared to traditional methods. Moreover, the
time consumption is also low as referred to traditional methods. It means through using online
platform the company can target high range of market in more appropriate manner at very low
cost (Aktas, 2013).
Other than this, use of video is also one of critical aspect that can provide better
opportunities to the business entity. In other aspect, the management can have development of
video to present information among customers. For example, the video advertising of package by
showing images of destination also helps in attracting customers and lead business to impressive
level of success. Through creating video, management can easily include the visual
representation of the destination that they are planning for their clients (Culver, 2015). Blogs and
other ways through using social media is beneficial for the Thomas Cook PLC. Blogs on Paris
culture can be presented on social media sites and tourism websites as it will attract more
customers. Moreover, the access to various youtube is also most commonly technique that
promotes businesses in easy manner. By having uploading of video and advertising material on
the youtube, Thomas Cook PLC can attract students in appropriate manner to meet goals and
objectives (Hjalager, 2011).
In addition to this, it can be recommend that the online brochure is most appropriate for
the designed tour plan because it allows to meet goals and objectives in appropriate manner.
Along with this, it is also effective while sharing information with customers. It helps in
attracting more and more customer’s and lead business to impressive level of success. It allows
to have low cost marketing which is also beneficial for the business entity. It will also provide
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better opportunities to the management. It means through using online platform the company can
target high range of market in more appropriate manner at very low cost. Online platform is
beneficial to ensure that correct information is being provided to customers in order to attain
better opportunities in the market.
3.3 Evaluate the suitability of different methods of distribution used to sell holiday for different
types of tour operators
In order to have effective accomplishment of goals and objectives, it is significant for
management of Thomas Cook PLC to have effective distribution. As per the structured study, for
having advancement in sales the most commonly used distribution channel is brochure. Business
organisations are having better success in market by having effective use of brochures. It is
beneficial to target audience and increase the sales of tour operators (Nath, 2013).
As per the structured study, there are two types of tour operators so management need to
understand it in appropriate manner. Classification can be as mass tour operators and specialised
tour operators. It has been noticed that the mass tour operators provides collective travel services
to different types customers. It covers high ratio of customer base in order to meet goals and
objectives. In this, businesses focuses on the arrangement of various plans and activities in order
to attract customers. Thomas Cook is mass tour operator that focuses on designing and creating
travel package to all segment customers (Rana, 2014). On the other side, the specialised tour
operator focuses on specific services for meeting needs of specific market segment. In this
respect, the Cox and Kings can be considered as specialised tour operator. It is because the
services company offered are mainly focused towards specific segment.
Moreover, to have advancement in sales and effective distribution the company can plan
various activities. For example, the Thomas Cook can contact to various tour agencies to bring
customers so that goals and objectives can be accomplished in appropriate manner. Thomas
Cook PLC can open its official stores in the middle of the market so that customers can have
easy access to the services. It will also help in attracting more and more customers and lead
business to impressive level of success (Peters, 2013). Direct sales activities can also be arranged
in order to have sustainable development. It is considered as one of most essential factor that
plays vital role in advancement of sales. Company can also provide purchase of service on its
official website so that customers can have easy convenience. Use of e-commerce is also
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according to market trend that will also boost up the opportunities for the organisation (Lee,
2011).
In addition to this, the Cox and Kings is focused towards direct selling option in order to
have advancement in its sales ratio. With an assistance of this, the company can ensure that
information about package is properly distributed to members. Number of advertisement tools
are also being used by the management to ensure that they are having effective distribution of
brochure. Email is also most commonly technique that is adopted by Cox and Kings to have
better distribution and advancement in sales ratio. Telephonic sales approach is also beneficial
for the organisation to have better sales of tour package.
TASK 4
4.1 Evaluate the different strategic decisions made by the different types of tour operator in
different situations
As per detailed study, there are number of strategic decisions that need to be consider by
the management of Thomas Cook PLC and Cox and Kings in order to meet goals and objectives.
Strategic decisions are considered as activity that helps in effective management of operational
activities. It provides a great support to tour operations and helps businesses to advance profit
margin ratio. It is also advantageous to attain better competitive advantage in the tourism sector.
Decisions in regard to the business expansion need to be consider in appropriate manner (Keillor,
2007). Before taking decision about business expansion number of factors need to be analysed.
For example, customer needs, market conditions, competition, etc. Nature of business also need
to be referred in accurate manner so that goals and objectives can be accomplished effectively by
both organizations. If management does not have proper information in regard to market
conditions and customer needs then it might be possible that the business firm may face critical
issue (Buck, 2011). Response of customers towards products and services also need to be
analysed while having strategic decision about business expansion.
Pricing of product and services is one of most essential factor and Thomas Cook PLC and
Cox and Kings needs to take decisions in this regard for effective accomplishment of goals and
objectives. There are various tour operators that offer their services at different prices. It has
been noticed that the mass tour operators mostly offer their services on low cost (Brookes, 2014).
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It clearly indicates that the Thomas Cook PLC is also mass tour operator and it provides its
services at low cost as compared to competitors in the market. While having decision about the
pricing the management need to consider features of product and expectations of customers. It
facilitates in effective selection of pricing and lead business to impressive level of success.
Other than this, promotional activities are also significant section, in this regard the
management must have strategic decisions. During taking decision about promotional activities
the management must analyse different mediums of communication. Advertisement, online
marketing, video brochure are key methods that can be accessed in order to have better
marketing (Crysta, 2011). It facilitates in attracting more and more customers and lead business
to better opportunities in the market.
4.2 Compare tactical decisions that could be taken by selected tour operator in different
situations
There are number of tactical decisions that need to be taken into account by the
management of Thomas Cook PLC in order to meet goals and objectives. It has been noticed that
the Cox and Kings is one of great competitor of the Thomas Cook. Key motive of Cox and Kings
is to have advancement in sales so that profit margin ratio can be enhanced. On the other side,
Thomas Cook PLC focuses on the service improvement so that better satisfaction can be
provided to customers (Ingram and Grieve, 2013). By offering better customer satisfaction the
company can also enhance its profit and sales.
Both organisations focus on strategic alliances to have business expansion. There are
number of service providers who works collectively with the Cox and Kings and Thomas Cook
so that industry can have better success in the market. However, Thomas Cook has also invests
on free working culture so that dependency on the service providers can be reduced. Holidays
packages of both entities are developed on the basis of customer needs so that goals and
objectives can be accomplished effectively (Kara, 2012). Pricing of Thomas Cook products and
services is low but TUI changes its pricing strategy as per market conditions.
CONCLUSION
As per the above study, it can be concluded that travel and tourism sector is having great
opportunities in the market. Tour operators are considered as key aspect that helps in sustainable
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development of industry. They provide number of tour packages to customers as per their needs
so that satisfaction level can be improved. Customisation and changes in services is current trend
and it allows businesses to have sustainable development. With an improved focus on use of
traditional brochure technique and modern advertising tools the tour operators can easily create
awareness among customers. Use of e-commerce and online brochures attracts more and more
customers and lead businesses to impressive level of success. Customer needs are also
considered as one of critical aspect while taking strategic and tactical decisions as it provide
better opportunities in the market.
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