Tourism Management and Planning

This assignment delves into current trends within hospitality and tourism management research. It explores topics such as accessible tourism, the influence of legal and ethical considerations on expo planning, and the evolving landscape of service quality evaluation. The analysis also touches upon the impact of online reviews and advancements in technology on the industry.

TOUR OPERATION
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
Task 1...............................................................................................................................................3
1.1) Effect of current and recent trends as well as developments on the tour operator industry.3
Task 2...............................................................................................................................................4
2.1 Assessing the stages and timescales 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 .............................................................................7
Task 3...............................................................................................................................................8
3.1) Planing decisions taken for design of brochures..................................................................8
3.2) Alternative of traditional brochures for Thomas Cook........................................................9
3.3) Suitability of different methods of distribution to sell holiday packages...........................11
Task 4.............................................................................................................................................12
4.1) Strategic decisions made by Thomas Cook and Thomsons...............................................12
4.2) Comparison of different tactical decisions.........................................................................13
Conclusion.....................................................................................................................................14
References ....................................................................................................................................16

INTRODUCTION
Tour operation industry is an important constituent of the travel and tourism industry.
Business of tour operation is engaged and linked with other businesses with a motive to provide
tour and travel services. To create a package holiday, a tour operator combines several tour and
travel components. To promote their products, holidays and itineraries, tour operator advertises
and produces brochures. Tour operation management is controlled and maintained by the tour
operator and with the help of this, it offers wide range of services and other ancillary services in
a professional manner (Filby, Stockin and Scarpaci, 2015). Tour operator not only manages the
services and manufactures holiday packages but also plays a vital role in promoting a
destination. They manage all the facilities and provide transportation, accommodation and other
services to the customers. The present report is based on the different scenarios related to travel
and tourism. Furthermore, this report explains the effect of current and recent trends as well as
developments on Thomas Cook which is an tour operator company of UK having annual revenue
of £7834 million (About us, 2016). In addition to this, it explains different stages involved in
creating holiday packages. The report will also focus on making calculations of the selling price
of a holiday. Moreover, reviewing of brochures and methods of distribution used to sell holidays
are also covered in this report. At last, it will cover the strategic and tactical decisions that are
made by tour operators.
TASK 1
1.1) Effect of current and recent trends as well as developments on the tour operator industry
Different trends and developments are happened in tour industry which are driving
change in the whole sector. For example: easy availability of tickets, online booking facility and
teletext. Apart from this, through call centers, people can also arrange their tickets and booking
of hotel rooms. Growth of the regional airports: As growth of regional airport in the UK has increased
so people are more interested in making tour plans (Vrangbæk, Petersen and Hjelmar,
2015). These airports are charging lower prices for landing planes which will increase the
growth of aircraft industry.

 Cost of travel: Recently, cost of travel is increasing in the UK as country is in recession.
People are recently planning for holiday in abroad once in a year as families have less
money to spend individually (Yamane and et.al., 2015). Other than this, families are also
given some discount on tour packages which also attracts them to make planning for tour. Adventurous tours: Earlier, planning adventure tour was not easy as people had no
option related to tour operators that plan for some risky tour operations. Now-a-days, tour
operators are also planning for that type of tours which make people to experience
adventures places (Jenkins, 2015). This will help Thomas Cook to find adventurous
places through which they can attract more people. Flexibility of booking the tickets: As online facility of booking tickets is available so
people can easily book their tickets anytime. This will enhance profits of the whole
tourism industry. Thomas Cook is also providing online facility to their passengers so
that they can make easy booking of their tickets. Natural disasters: Happening of natural disasters also affects the business of tour
industry. Many natural disasters such as earth quake, volcanic eruptions and tsunamis are
there which affect the business of tour industry. For examples: no plane in Europe that
takes offs in bad weather conditions (Allahyari, Salari and Vigo, 2015). This will affect
tourism industry because they lose massive amount of money when a natural disaster
happens. This will also affect the timings of planes. Thomas Cook also cannot take off
their planes in such bad weather conditions.
 Development of tourism Act, 1969: The main aim of this act is to co-ordinate all the
organizations which are involved in tourism sector. Apart from this, it will also provide
the financial help out of public funds which assists the industry to grow (Baker and
Parkinson, 2016). Through this, Thomas Cook will be able to enhance their working
practices and business in the tourism sector.
TASK 2
2.1 Assessing the stages and timescales involved in developing holidays
For developing an overall tour package, planning is considered as an integral part to
fulfill the customer’s needs. Development of the educational tour packages in Europe is quite

complex. There are different stages and timescales involved in developing holidays in Europe.
These are as follows: Examining the designation: For developing a holiday, it is very important to examine
the Europe and their destinations. This is the first stage involved in developing a holiday
and also in the entire tour design (Jones, Hillier and Comfort, 2016). Examining of the
destination may take time of 1-2 months. Planning and scheduling: Planning and scheduling will be done by Thomas cook to
prepare a package in the best manner. A set of activities is to be processed in this stage.
Set of activities begins with the identification of target country for an Education tour for
the students of HND TTM course. After that, different types of services that are included
are to be offered such as accommodation, transport, breakfast, dinner and entry tickets.
After these activities, process of contacting with different suppliers will be done. From
the different suppliers, they will select the best tour operator that will offer wide range of
services (Schuckert, Liu and Law, 2015). Process of selecting and scheduling requires the
time-scale of around 1-2 months. Research: After examining the destination, the next stage is of research which is also to
be done while developing holidays. Research is to be conducted for various types of
places for the students that can be offered to them for the purpose of educational tour.
Research will be done by the students and HND TTM for identifying possible tourism
activities which are needed by them. Process of research includes the time period of 3 to
4 months (Tsang, Lee and Qu, 2015). Forecasting: The different components enable the stage of forecasting on the basis of
trends going on in Europe. Forecasting stage includes estimation of cost by the tour
operators for providing and offering various services along with the selected places in
Europe (Ryan, 2015). After that, sales projection and prediction of revenue generation
will be estimated. In this process, time period is of about 23 days.
 Tour Development: This is the last stage of developing the educational tour. This is done
by negotiating with the service provider that is tour operator. After forecasting, the stage
is of developing the tour which is done by conveying the features of package to the
tourists in order to ensure promotion (Yamane and et.al., 2015). In this stage, promotion

of newly designed tour package for the student is done. This stage will take the time of 1
to 1.5 months. Hence, these are the stages and time-scales involved in developing the
educational tour for students of HND TTM.
2.2 Evaluating the suitability of different methods of contracting for different components of the
holiday and different types of tour operator
To book the different aspects of the tour packages there are two methods which are
developed by the tour operators. Sales only contract and the fixed contract, these are the two
methods of contracting. The different types of tour operator which are selected are Thomas Cook
and Air tours. This companies will compare for the purpose of making different types of order
for the services. The services will be arranged by the tour operator like accommodation,
transport, breakfast, dinner and entry tickets to key tourist attraction (Jenkins, 2015). The two
methods of contracting which is used by the two tour operators are:
 Fixed contract: To ensure the utilization of volume based capacity and also to maximize
the revenue collection, this type of contract is used by the company during the time of the
off season (Ko, Boswell and Yoon, 2015). Depending on the students' expectation,
arrangements has been made by through Fixed contract by the Thomas cook. As per the
utilized capacity payment will be made by the Thomas cook along with this, total
capacity has been booked by the cited company.
If there is non utilization of the capacity is involved then this is a risk for the tour
operator. For this, the operators have to pay the non utilized portion. Furthermore, summer
vacation is the peak time of tourist visit by the students and people, for this different packages
are designed by the tour operators companies (Swain, 2016). In this season there are very little
chances of non utilization of capacity. This result in fixed contract, comes with the added benefit
in their cost with high discount.
 Sale only contract: The sale only contract is selected by the Air tours for designing their
tour packages in Europe. For the niche consumer segment this packages is designed. In
which for highly expensive tour, particular consumer segment who are interested for such
travel packages are targeted (McKercher, 2016). In this sale only contract, the services
and facilities used by the consumer, for that Air tours will pay money to the hotels and to

transportation. To reduce the risk of weak response and at the time of lean session, this
type of methods are made and designed by them.
After analyzing the two methods used by the two tour operator, it has been analyzed that,
fixed contact method is more suitable for the different components of the summer holidays. As
this provide several benefits to the students like different facilities at high discount. The sale only
contract minimize the wastage by avoiding paying for the non unitized capacity.
2.3 Calculating the selling price of a holiday
On the basis of the scenario, HND TTM is planning for the summer vacation in August
2015 and creating an educational tour package for the students. The tour is for 7 days and the
charges for each student is for £350. Students are allowed to bring their parents or friends. Along
with these children with below 6 months will travel free and above 6 months to 10 years, they
will be treated as guest.
Table 1: Calculation the selling price for students of HND TTM
Facilities Costing (£)
Accommodation 70
Transport 150
Breakfast and dinner 75
Entry tickets to the key tourist
attraction 55
Total cost per student 350
For the educational tour package, Pricing structure is done according to the above
presented manner. The amount charged for the educational tour package is £350 per student.
The places cover in the Europe are Prague, Italy and Spain. Tour operator opted air traveling
because the time scheduled is only of seven days. Furthermore, in different places such as at
cottages, hotels etc. Thomas cook has arranged the accommodation services. In addition to this,
the different other ancillary services such as transportation and entry tickets to the key tourist
attraction are charged.
Table 2: Calculation of selling price for parents and friends of students
Facilities Costing for guest (£)
Accommodation 98
Transport 210

Breakfast and dinner 105
Entry tickets to the key tourist
attraction 77
Total cost per student with guest 490
The above calculation is of the selling price of the Family members or friends. The
students are allowed to bring their parents and friend in the tour. But for there joining, the
company will charge an additional 40% of the price for different facilities which they cited
company is providing. The total cost per guest is £490, if the guest will join the tour.
Table 3: Calculation of selling price for children
Facilities Costing for Children guest (£)
Accommodation 49
Transport 105
Breakfast and dinner 52.5
Entry tickets to the key tourist
attraction 38.5
Total cost per student with children
guest 245
The children above 6 months and below 120 years are also treated as guest. They will be
charged at half the price of the guest of family and friend. The total cost of children guest is
£245, if they will join the tour for Europe.
TASK 3
3.1) Planing decisions taken for design of brochures
Brochure is basically a printed piece of paper which include certain information
regarding features of a product. It will help the reader to understand the benefits of the product
and services for him. Format of the brochure: At the initial stage of designing a brochure, it is necessary to
find the format of the brochure. Format includes important things regarding content,
structure, style and size of brochure (Vrangbæk, Petersen and Hjelmar, 2015). This will
help to attract the reader. Apart from this selecting the appropriate format will also help
Thomas Cook to save their cost.

 Paper quality: After deciding the format of the brochures, the next step is to decide the
quality of paper. This will make the company able to find the suitable quality of the paper
which is required for designing the brochure. Quality should be decided according to the
target market (de Leaniz and del Bosque Rodríguez, 2016). If the company is planning to
target the high society people, they will go for selecting the high quality paper. Print specification: Printing of the paper plays an important role in making attractive
brochures. Good quality of ink should be used so that it will not get affected from water
and other things (Dostal and Gabriel, 2015). Other than this, colour of ink is also an
important part of making the brochure attracted. Thomas Cook should use colorful and
attracted ink so that they can attract the people. Multiple editions: Rather than making a single edition of the brochure, Thomas will
prefer to design multiple editions of the brochure time to time (Beheshti and Zare, 2015).
This will help them to find effective brochures and through this they can also attract the
customer for their tour packages. Editing of graphics: People are always attracted towards photos and graphics. Editing of
photos and graphics of places of tour will make people interested in going there. As
people prefer to see photos rather than reading a boring paper (Khatwani and Srivastava,
2015). For this, Thomas Cook should include some photos and graphic of the areas where
the tour is operating, so that people will find it more attractive.
 Use of texture: Other than using photos, Thomas Cook will also focus on selecting the
paper with good texture effects. Texture of the paper also comes in different ways such as
enamel paper. This texture has different things printed over it which make people
attracted to read (Journey, 2015). It can also be customized according to need of the
company. Customization will make the company able to decide the texture print
according to their suitability.
3.2) Alternative of traditional brochures for Thomas Cook
Apart from traditional brochures, some modern type of brochure are also there which
plays an important role in attracting the people. Some of the alternative are explained as below
which can be used by Thomas Cook:

 Videos: Company can launch videos of the tour packages so people can see the various
places of the tour packages. Seeing the places will make them more attracted to visit
those places. Other than this, seeing a video is more easy and interesting rather than
reading a boring paper (Letina, 2015). Thomas Cook can make video of the attractive
and adventure places so that people will be ale to find interesting places to visit. Televisions: Television is also an another sources of launching the brochure. As every
person like to watch TV, this will be a good idea for introducing the brochure in public
(Pangaribuan, Manik and Pasaribu, 2015).. Thomas Cook can make advertisement of
their tour packaged on television, so that people will be able to find the nice places to
visit. Compact Disk: Apart from all the above, introducing the brochure through making
compact disk of the tour places is also an alternative of traditional brochures. People can
direct collect CD form the company and find places which are suitable for him. Different
CD's should be launched for different type of people such as CDs of adventures tour
packages or CDs of natural visits and such kind of other places, this will help the people
to find the tour package according to their interest (Brito and Pratas, 2015). Apart from
Thomas Cook can also launch CDs according to budgets of people as different CDs for
those packages which are on discount. Internet: Use of internet is also an effective way of making people introduced with the
different tour packages. Thomas Cook can use this by launching the videos on the
internet or on YouTube. Uploading video of the tourist place on You Tube will make the
people able to find the different tour packages of the company (Swarbrooke and Page,
2012).
 Social media: This is most effective way of launching brochure of the company.
Majority of people spend their time on accessing social media sites such as Facebook,
twitter, Instagram and LinkedIn (Mason, 2015). Thomas Cook can make advertisement
of their tour packages on different social sites. This will also help in reducing cost of the
advertisement.
After analyzing different alternatives, the most appropriate mode of launching the brochures is
use of internet and social media. As people more like to visit social media, this will be a good

method of launching brochures. Apart from this, it will also help to save the cost of Thomas
Cook in comparison of traditional brochures.
3.3) Suitability of different methods of distribution to sell holiday packages
For making a business successful it is very important to sell something. Selling methods
are used tom increase competitiveness and sales. Apart form this, it will also make the people
able to find the suitable thing for them. Different types of distribution methods are explained as
follows: Direct sell: In this distribution method, company need to sale there products and services
by going door-to-door (Rothaermel, 20150. Through this, the company will be able to
make better specification of their products so the customer will get attracted towards the
tour packages. Through travel agencies: Apart from this, the organization can also use travel agencies
for distributing their products. As many people like to buy the holiday packages from the
travel agencies as they feel it is more safe to go for this (Hammond, Keeney and Raiffa,
2015). Thomas Cook can sell their tour packages to different travel agencies through
which it can be reached to the customers easily. Call centers: Call centers is also an another method of making distribution of the
product. As call center is having a wider network of customers so it will be easy for them
to reach the customers (Baker and Parkinson, 2016). Thomas Cook can make
advertisement on different call center and they will advertise it to their customers. This
will help the organization to get new customers. Apart from this, it will reduce the extra
expenses which have to be done in direct selling. Teletext: It is an another method through which the organization can make advertisement
of their tour packages. In telexing the same message is forwarded to everyone at the same
time (Northrop, Crow and Kraszewski, 2015). This will help the organization to reach
more customers and also it will help in saving extra cost of the company. Thomas Cook
can use this technique for selling their tour packages.
 Online selling: Online selling is the most appropriate methods as in this the company
will not have to go anywhere for selling their products. They can make advertisement on
different sites which is famous in public and are more accessible by majority of people

(Beheshti and Zare, 2015). Online ad agencies, social media and other message board are
also there which can be useful for the company to increase their sales. Thomas Cook can
use online selling method for selling their products.
Among all the methods of distribution the most appropriate method of selling the tour packages
for Thomas Cook is online selling and travel agencies. Online selling will help the company to
reduce the unnecessary expenses. Other than this, majority of people like to book their tour
packages through travel agencies because of safety concern (Brito and Pratas, 2015). So it is
good for Thomas Cook to go for this methods to sell their products.
TASK 4
4.1) Strategic decisions made by Thomas Cook and Thomsons
Strategic decisions are basically long term and complex decisions which are taken by the
senior level mangers. Different strategies are adopted by Thomson and Thomas Cook to make
relevant decisions regarding pricing strategy, surcharge policy, positioning and image of the
company. The entire direction of the company is depend upon strategic decisions of the
company. Pricing strategies: Thomas Cook is using single pricing across the high street and online
channels also has been welcomed for helping the combat consumer confusion (de Leaniz
and del Bosque Rodríguez, 2016). Other than this, Thomas cook is also using premium
pricing on the specials and luxurious packages. On contrary to this, Thomson is using
competitive pricing where prices are decided on the basis of existing market. Apart from
this, they also use luxury pricing according to quality of the product. This will make them
earn profit more than the competitors. Other than this, deciding prices of the product help
the company to attract the customers. Surcharge policy: Surcharge policy is related to the extra fee which is added on the
existed fee to make fuel charge, sky freight charges which presents additions due to jet
fuel prices (Dostal and Gabriel, 2015). Thomas Cook adds fuel surcharges to the holidays
bills of the customers. They are charging £15 per person on short haul trips of less than
three hours, £ 25 per person on flights between 3 to 7 hours (Filby, Stockin and Scarpaci,
2015). Thomson is also charging fuel surcharges on their holidays packages which is

depend upon the duration of the flight. Generally they charge £75 to £125 as their
surcharge price.
 Positioning strategy: Thomas Cook use positioning strategy through which the
consumers can compare the brand with another so that the customers can find difference
of the competitors of the company (Gössling, 2015). Other than this, Thomson is using
their quality of product as the tool for positioning the products. This will make them able
to target the customers within the market. Apart from this, it will also make them know
about the strategic moves of their competition. This will help the customer to easily find
the organizations and make their tour packages.
4.2) Comparison of different tactical decisions
Tactical decision are generally related with the medium term decisions of the company. A
single wrong step will make the company into wrong direction which will impact the profits and
decisions of the company. Different types of decisions are taking place for the growth and
expansion of the company. Thomas Cook is using different types of tactical decisions through
which they will find the market moves of their competitors. This will also make them able to
face the market competition. Tactical decision for competitors: For facing the market competition, Thomas Cook is
using viral marketing which help them to make brand awareness in the market. Through
this they make their product popular in the market by adopting ways of advertising
(Hammond, Keeney and Raiffa, 2015). This will not only reduce the cost of advertising
but also help in gaining competitive advantage at the market place. This can be done
from social media, video clips and software. Other than this, it will also reduce the extra
cost of advertisement. They are introducing different types of tour packages at the
attractive price which make them able to attract the customer and also it will help them
to face the market competition in the market. Tactical marketing: Tactical marketing is related to attracting the customers from the
prices, offers and other things for making organizational profit (Jenkins, 2015). Thomas
Cook is also increasing their sales through offering discounts and late sales to their
customers. This will attract the customer through market and gain competitive advantage
in the market. Tactical marketing is basically a strategy in which the company uses all

the techniques for maximizing its revenue (Jones, Hillier and Comfort, 2016). Other than
this, it will also save the cost on spending of extra expenses such as cost of
advertisement.
 Management of yield: Yield management is considered as the variable pricing strategy
which is based on understanding, anticipating and influencing consumer behavior for
maximizing revenue of the organization (Journey, 2015). Thomas Cook is using different
strategies such as discounting of packages and offering new products in the tour
package. Managing yield of the company is very important to make the business stable
in the market place for facing the market competition. Thomas cook is using different
marketing practices for attracting the customers so it will help them to get profit
throughout the market competition.
CONCLUSION
The entire report is based on management of tour operation in which effects of current
and recent trends and developments on the tour operators industry are analyzed which help
Thomas Cook to react according to the market condition through which they can get profits on
their tour packages. Other than this, different stages and timescales involved in developing
holidays are also elaborated which help to design the effective and profitable tour package for
the organization. Apart from this, different methods of contracting for different components of
the holiday are also explained through which the company will be able tom finds the most
suitable and appropriate method for designing holidays for the customers. Selling price of
holiday are also calculated for finding the value of tour package for the given time period.
Further more, different step of designing brochures are identified which help in making effective
and attractive brochure. Other than this, alternatives of the traditional brochures are also
exampled for making it more attractive for customer. Furthermore, different methods of
distribution used to sell a holidays are used for making easy distribution of the packages to the
customers. At the end the report explains the major strategic and tactical decision taken by
Thomson and Thomas Cook for increasing their profits.

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