Effects of Current Trends on Tour Operations Management (HND)

This report, prepared for LCB Tours, examines the tour operations management within the context of the Higher National Diploma (HND) in Hospitality Management. It analyzes the effects of current trends and developments in the tourism sector, including technological advancements, the rise of low-cost carriers, and the impact of inflation on the industry. The report categorizes and describes various types of tour operators, such as inbound, domestic, UK outbound, and specialist operators. It highlights how technology, customer reviews, and economic conditions are reshaping the travel experience and influencing strategic decision-making in the sector. The report emphasizes the importance of understanding these trends to develop effective strategies for tour operators. Furthermore, the report provides a concise overview of the different types of tour operators, their products and services, and the scale of the industry, as well as how they are affected by the latest trends and developments. The report aims to provide insights into the stages involved in creating a holiday and developing skills associated with determining a selling price for a holiday.

TOUR OPERATION MANAGEMENT
Tourism sectors is affected by current and recent trends which is important for sectors to
analyse these changes. Some trends which affects development of tour industry such as
advancement in technology, low cost carriers, etc. In addition to this, there are also some
types of tours operators which are discussed below:
• In Bound Tour Operators: This is an Australian based business which provides
itinerary planning, product selection, etc. on behalf of overseas consumers such as, retail
travel agents. These are also known as ground operators or destination management
organisations.
• Domestic Tour Operators: These are operators who make arrangements for
transportation, sightseeing, accommodation and other services for domestic tourists. This
is a voluntary strategy for tour operators in order to bring them in organized sector.
• UK Outbound Tour Operators: These tour operators are residents of country
which travel from one country to another for tourism purpose. They also help in
motivating UK outbound tourists rather than inbound visitors.
• Specialist Tour Operators: This agency specialises in particular destinations or
products and provide niche market holidays to their customers. They provide best
hospitality services in affordable prices to their visitors. They also provide ATOL (Air
Travel Organiser's License) protection to tourists.
Current or recent trends and development
Tourism sectors and their development is affected by fluctuations in current and
recent trends. In this context, some trends are as follows:
Advancement in technology: Technological advancement challenging, changing and
affecting travel and tourism sectors. Current and recent trends of technology include
smartphones, biometrics, customer power. These all have changed elements of travel
experience with a range of new initiatives. Biometrics and safety issues are also
increasing day by day which is affecting tourism sectors widely. These agencies are also
affected due to customer power which believes more in recommendations and reviews of
hotels and industries. Some people are also changing their hotels and travelling plans by
viewing reviews and changes in hotels on social sites. Using advance and innovative
technology will increase consumers and level of industry which is also beneficial in
developing and growth of tourism sector. So, in this way advance technologies are also
affecting tourism sectors.
Rise and fall of inflation: The another reason due to which tour industry is affecting is
rise and fall of inflations. Tourism business is based on the economic conditions of
country which can affects their industry positively as well as negatively. If there is rise in
annual income of people, then more tourists will invest in tourism sectors which is
positive for them. On the other hand, if there is fall in economic rates then it adversely
affects travel agency. This will reduce their profitability margins and sales. So, it is
important for tourism sectors to have stable economic conditions.
Low cost carriers: Tourism sectors are positively affected by low cost carriers. This help
travel agency to have more tourists and increase their profit margins. Expansion of low
costs carriers will lead tourist to invest more in travel agency which result in development
of travel industries.