Tour Operations Management Report - HND in Hospitality Management

This report provides a comprehensive analysis of tour operations management, encompassing various aspects of the tourism industry. The report begins with an introduction that highlights the importance of tour operations in the context of globalization and its impact on the travel and tourism sector. It then delves into the roles and responsibilities of tour operators in promoting tourism and enhancing a country's economy. The report examines the significance of brochure design, including cost considerations, content, target market analysis, and print specifications. Furthermore, it assesses the suitability of alternatives to traditional brochures for different types of tour operators, such as ground, domestic, inbound, and outbound operators. The report also evaluates various distribution methods, including direct distribution, two-level distribution, online travel agencies, and social media platforms. Additionally, it analyzes strategic decisions made by tour operators, such as pricing strategies, brand awareness, and market positioning. The report concludes with a comparison of tactical decisions made by a selected tour operator, Thomas Cook, in different situations, including tactical pricing and marketing strategies. Overall, the report offers valuable insights into the complexities of tour operations management and the decision-making processes involved.

TOUR OPERATIONS
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
TASK 2............................................................................................................................................1
TASK 3............................................................................................................................................1
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Today’s globalization has laid an astounding amount of profit generation for Tours
and operations management. It has become an integral part in the travel and tourism sector with a
widespread impact as well as influence on the developmental activities and operations related to
this. This assignment will be based on understanding the significance of the roles and
responsibilities of tour operators in enhancing the economy of a country and promote tourism at
global level. There will be an analysis of the latest trends, financial evaluation; methods of
contracting that are involved in the product development, their designing of brochure and
employing other platforms for promotion for utilizing the distribution channels appropriately.
The major purpose is to put insights on the working conditions in terms of strategic and tactical
decisions in context of the tours and operations management from the overall outlook to attract
potential customers for growth and progress.
TASK 1
Enclosed in a leaflet for the product development team
TASK 2
Enclosed in a PPT
TASK 3
AC 3.1 Evaluate the planning decisions taken for the design of a selected brochure
Brochure is an important tool, which acts as the introductory platform for travelling and
tourism companies. It provides the entire details and features related to travelling in order to
attract tourists and travelers by making such brochures interesting and user-friendly (Guo and
He, 2012). There are few determinants which affect the designing and are as follows:
Cost: This involves the scheming of cost differentiation on the basis of designing and quality of
print. The type of paper used in it, folding style it will follow, number of copies and the entire
format of brochure will lead for distribution with the purpose to attract potential customers.
Content: This factor assist in providing details related to tour and the concerned operators to
fetch attention of customers. Along with, the quality of writing laid emphasis on their use of
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languages used to target people and also, use of visuals and graphics can make it better for
enhancing their viewership.
Target market and budget: Marketplace plays an important role in targeting customers by
enhancing their brochure's quality in terms of design, layout, volume and many such
characteristics. This helps in sorting the budget appropriately to maximise the utility of allocated
resources.
Print Specifications: Printing depends on many parameters such as paper's quality, design layout,
font style and size etc. Along with this, customers' requirements and specifications like color,
visuals, folding etc play pivotal role in the determination of brochure's print as choice of
destination and current trends assist in defining.
Stages of Production and Timescales: These stages include number of factors like seasonality,
date of launch, location, type of brochure: online or e brochure and more. The costs incurred can
be considered too (Bronner and de Hoog, 2011). This will provide an actual time period to
understand the planning and designing it takes so that customers know about the details and
description of the tour, transportation and related things.
AC 3.2 Assess the suitability of alternatives to a traditional brochure for different types of tour
operator
With technological advancements and globalization,today’s tourism sector is spreading
across worldwide like never before. People from all generations as well as walks of life are
generating revenues by opting various packages and dealings from different tour operators. Due
to this, these tour operators such as Trailsfinders, Thomas Cook, Audley Travel and more are
moving towards use of internet and it services.
Ground Tour operators: Popularly called as Reception Operators are the ones who escort tourists
on their landing in the destination place. These mainly help the large organizations where they
have no office or branch and support by providing services to manage their customers
(Rønningen, 2010). These follow the internet services as their reach is at global level and can
facilitate the companies through digital marketing.
Domestic Tour operators: These function within the home country and provide their maneuver
through traditional brochure, local outlets and through online platforms. This is easier and
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convenient way for travelers to know the differences between them and other operators. E.g.
Travel Cook works at regional and international levels and follows all the alternatives to attract
customers.
Inbound Tour operators: These are the ones who deal with inbound tourists by providing them
schedule on sight-seeing, entertainment, accommodation and transportation etc (Mdusm, 2016).
It prefers e-brochures, their official website, and other means so that foreign tourists can
understand their offers and services in better way.
Outbound Tour operators: This assists travelers of their country in visiting international
destinations for a fixed period. It is of leisure or business oriented tours. These can use direct
sell, online services along with traditional brochures, however, as IoT has wider reach currently,
so it’s a better tool to use for generating awareness about the services they offer.
Figure 1.Types of Tour operators
(Source: Tour Operators – Definition, Types, Functions & Importance, 2018)
AC 3.3 Evaluate the suitability of different methods of distribution used to sell a holiday for
different types of tour operators
There are many distribution channels as follows:
Direct Distribution: This is the direct link between the simplest and shortest channel where B2C
and B2B companies can sell the product or service without any interventions by intermediates
like agencies or centers. When inbound and bound operators contact their customers either
through mail or call, then it leads to their marketing plans in effective system.
Two levels Distribution: When a bridge like retailers connects the producers and consumers then
it comes under this two level distribution. Although, there are three levels of distribution,
however, in this sector, intensive distribution is preferred (Fleischmann and et.al., 2012). It is
known as Mass Distribution in which the consumers enjoy the services both at home and foreign
lands. This is the most suitable for all types of operators.
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Online travel agencies: These works for selling of the packages, dealings, offers and discounts
related to all their services. Here, there are both modes of selling, that is direct through
contacting operators’ customers. Whereas, on the other hand, there is either call centers or
telecommunication feature. This would help communicating the messages conveniently to
provide all details and knowledge about tours and packages.
Through social network website: This has become the most sought after method in today’s global
world. It has reached the audience in the fastest and quicker way. Along with this, it is cost
effective and time efficient channel to make consumers understand about the feasibility of this
centralized and distributed chain of functional units of this sector. They can easily popularize
about latest updates and news through podiums like Facebook, YouTube, Tripadvisor and more
such websites. The various operators can re-design their personal company’s website and
customize it as per the customers’ demands and specifications.
AC 4.1 Evaluate the strategic decisions made by different types of tour operator
There is need for strategic planning to sustain in this growing sector at global competitive
levels for longer sustainability. Such decisions are implemented from time to time for overall
progression of tour operators in a more profound manner.
Policy of Surcharge: This policy is formulated to adjunct the tangibility of additional amount
attached with the services and products offered by all the operators (Evans, Stonehouse and
Campbell, 2012). Consequently, this created issues but was solved by applying proper
instructions and guidelines to bridge the communication gap.
Pricing: It is important to bifurcate this pricing into disguised and visible for customers to give
them an assurance of transparency and loyalty. An effective management can help these
operators to earn profits by good marginal scale. The other external parameters like inflation rate,
currency value and other such economic dynamics help to gain momentum in developing and
flourishing of the businesses.
Brand awareness and market positioning: Its common goal to achieve maximum profits and
revenue generations for any business. This sector has also seen a pool of competitors so to
position themselves at one notch up, it is necessary to promote and advertise the services in an
attractive mode by using several social media platforms like YouTube, Facebook, phampets and
more. Awareness creation can be sometimes tricky due to prevailing cut-throat competition in
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the marketplace. Therefore, use of all resources at optimum level would assess their potentiality
and readiness to tackle any decisions related to service that can lead to satisfactory and loyal
customers.
AC 4.2 Compare the tactical decisions that by a selected tour operator in different situations
Thomas Cook is a well known name in this tour-travel and tourism sector. Their need to
reinvent their products and services has supported to sustain in this global competitive world.
Their customer base is well established on the poles of trust and loyalty. However, sometimes
they face situations which led to take few strict decisions. In this regard, tactical decisions can
help out in the best possible manner to provide solutions to effectively manage crisis and attain
objectives and goals.
Tactical Pricing: This organisation has continuously incorporate tact with decision making to
renovate their pricing to satisfy their customers by providing diversified products. It is an
important variation which is aimed at cross elasticity. They involved towards single pricing,
which accelerated their customers growth by clearing out their dilemmas as this price parity
redefined the expectations of customers and gave them online trials and bookings, room
only or flight only facility and more. This led to a coalition between them and third-party
agents, assisting them in having a commercial agreement to examine the options which will
help to understand their implications on their packages and dealings. Consequently, this
concluding pricing is the representation of built-in-value that could be applied on policies
for reaching revenue goals through responsible approach.
Tactical Marketing: Marketing has always been Thomas Cook’s forte to dive in this
competitive pool and win their customers’ expectations by fulfilling as per their specified
choices and feedback. This is a multi-faceted obligatory technique to channelize the branding of
this company at global level. Promotion of products can be done using both traditional and
modern methodologies. Due to the sudden boom of technologies, it leads a revolutionised change
in advertising sector too (Evans, 2015). It lead Thomas Cook to adopt social media channels like
Facebook, YouTube, Trivago, Tripoto and such websites to connect travellers worldwide. This
pragmatic move put them into action for contracts with other sponsors and mergers in order to
highlight viral marketing, word of mouth tactic and growth in sales and revenues.
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CONCLUSION
It is summarised that this business has integrated ample amount of functions, techniques
and by adopting them proficiently have only added features of travel and vacation time. It has
offered diverse range of businesses along with employment generation at regional level.
Furthermore, in addition to this, it has been indicated that these tours and operations are the
principle agents in giving a onetime experience to their customers by providing facilities with
proper amendments and entertainment. To sum up, due to digitalization and awareness amongst
customers, it has become necessary for tours and operations management to be updated in their
approaches and methods used for providing various benefits to their consumers.
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REFERENCES
Books and Journals
Bronner, F. and de Hoog, R., 2011. Economizing behaviour during travel: Strategies and
information sources used. Journal of Vacation Marketing. 17(3). pp.185-195.
Evans, N., 2015. Strategic management for tourism, hospitality and events. Routledge.
Evans, N., Stonehouse, G. and Campbell, D., 2012. Strategic management for travel and
tourism. Taylor & Francis.
Fleischmann, B. and et.al., 2012. Advances in distribution logistics (Vol. 460). Springer Science
& Business Media.
Guo, X. and He, L., 2012. Tourism supply-chain coordination: The cooperation between tourism
hotel and tour operator. Tourism Economics. 18(6). pp.1361-1376.
Rønningen, M., 2010. Innovative Processes in a Nature‐Based Tourism Case: The Role of a
Tour‐operator as the Driver of Innovation. Scandinavian Journal of Hospitality and
Tourism. 10(3). pp.190-206.
Online
Tour Operators – Definition, Types, Functions & Importance, 2018. [Online]. Available
through:< https://tourismnotes.com/tour-operators/>.
Mdusm, P., 2016. The components of the Tourism and Travel industry. [Online]. Available
through:<https://www.linkedin.com/pulse/components-tourism-travel-industry-prince-mdusman-
fda-ba-itc-mba-emba>.
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