Tour Operations Management

This assignment discusses the different aspects of tour operations management, including planning decisions for designing brochures, traditional brochures, methods of distribution, and strategic and tactical decisions made by tour operators. It also provides insights into the LCB tour company and its services.

Tour Operations
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Covered in Leaflet.......................................................................................................................1
TASK 2............................................................................................................................................1
Covered in PPT...........................................................................................................................1
TASK 3............................................................................................................................................1
3.1 Planning decision for designing brochure.............................................................................1
3.2 Traditional brochure for tour operators.................................................................................2
3.3 Methods of distribution ........................................................................................................3
TASK 4............................................................................................................................................5
4.1 Strategic decisions made by different types of tour operator................................................5
4.2 Tactical decisions (two examples) that could be taken by a selected tour operator in
different situations.......................................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Tour operators is combination of travel and tour components for creating holiday
package. Travel agency is public service or private retailer which provides tourism and travel
services on behalf of suppliers such as package tour, railway, car rentals, cruise lines, airlines,
hotels. They produce and advertise brochures for promoting products, itineraries and holiday.
The given assignment is based on LCB tour which was founded in 1985. It provides full service
of hotels and resorts. Here will discuss about different types of tour operators and current and
recent trends for development (Assaf, 2012). The stage, timescales and methods of tour operators
are described along with selling price of holiday. Brochure is designed with proper planning,
different traditional brochures and distribution is analysed. There are strategic and tactical
decisions for operators.
TASK 1
Covered in Leaflet
TASK 2
Covered in PPT
TASK 3
3.1 Planning decision for designing brochure
It s very important for tour operator to do proper planning before designing brochure.
Through help of brochure large number of customers are attracted towards firm and its offers. It
should contain all relevant information required by individual so that better decision can be
taken. It is data or document which encourages take better tour packages and decision as per
need and requirement to get good experience (Baker, 2014). It contains following information
such as: mode of transportation, destination information, price, duration, name of tour firm, risk
associated, type of food. The element of planning decision for designing brochure are:
Cost- It means cost incurred for designing brochure. It consists of design of brochure,
main distribution channel through advertisement can be done, quality, number of copies and
wastage incurred. As per distribution channel creative and impressive brochure need to be
designed. LCB tour make effective plan through which cost incurred is low and result
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achievement is high. Similarly, Thomas Cook is big company providing services to its customer
as it incurred high cost.
Deciding the format- It is also important factor for designing brochure. The format
depends upon information provided. If large information is posted then format size differ and
similarly if less requirement then small or one page is enough. The format can be two folds, three
and more folds or it can be like booklet (Blanke and Chiesa, 2013). The cost also depends upon
format of brochure. LCB make one fold brochure whereas Thomas Cook design booklet format.
Target market and budget- As per the targeted market, brochure is planned. It determine
design and quality. The formulation of budget is important which can be done through research
about want and need of customer. As per budget plan company design quality and volume
required. LCB tour also make planning for budget and target market which cost is low. Similarly,
Thomas Cook required huge budget and target market is large.
Determining print specifications- Brochure should contains information related with
destination, target market. The way of designing also attract large number of customer and
visitor. The font style and size should be normal. LCB tour has design effective and attractive
brochures for customer with general information. In context of Thomas Cook, it purpose to serve
large area of society along with information of destination and target market.
Timescales and stage of production- It means timescale and stage of production of
brochure. It include information about deadline, new destination, demand, season ability and
focus on target market. This help customer for knowing relevant information. LCB only design
brochure for attracting customer without their motive but Thomas Cook mentioned all
information in it.
After analysing above comparison the shortcomings found in brochure of Thomas cook
which need to focus improving quality effectively and efficiently. The reason for short coming
are because of cost (Boniface, Cooper and Cooper, 2016).
3.2 Traditional brochure for tour operators
The suitability of alternatives for traditional brochure are as follows:
E-brochure- The use of e- brochure has increased rapidly. It helps in saving time and
cost. This is use by all tour operator to create awareness among customers. It is simple and
easiest way of creating information to others. It is used by LCB to cover large segment of society
along with their purpose fulfilment.
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Ipad/Android Applications- There are many application in mobile phone through which
brochure can be presented and customer became aware of it. For apple handset ipad is used and
other android is used by consumer. Thomas Cook uses this for convenient for customers to easily
view information and prices.
Outdoor media- There are many outdoor media such as billboard, tube, buses through
awareness can be created and brochure can be pasted there for providing information. LCB use
such media to attract large number of customer for travelling.
Internet- Most of user are connected through internet. The tour operator can post
brochure at internet so many view can be gained. Through this people become more conscious
about holiday package and travelling (Cook, Hsu and Marqua, 2014). It is used by both Thomas
Cook and LCB for customer as every individual is connected through internet.
Social Media- Firm use social media such as Facebook, twitter, Instagram where
brochure can be used and information can be gained. This plays an effective role in attracting
large number of customers. Thomas Cook uses this new method for brochure to cover each and
every individual through social media for creating awareness and encourage them for buying
package.
Radio/ TV advertising- In today scenario there are many individual who prefer to listen
radio and watch TV. By the help of this tools, one can be aware about provided goods and
service for customers about tour company. It is most easiest way for brochure which is used by
LCB for easy and convenient purpose.
Press- The high rated tour company also use press media for attracting customer. It
includes newspaper and magazine in which all relevant information regarding holiday package is
mentioned. There are many advertisement related with brochure for holiday package mentioned
in magazine and paper used by LCB for their consumer to create awareness (Fang, Ye and Law,
2016).
3.3 Methods of distribution
The different methods of distribution for tour operators are as follows:
Direct Distribution- In this approach, the tour operator directly sell their goods and
services to their customers. They chose selective consumer who have good relationship with the
company and good reputation. It creates loyalty to the individual about firm and its work.
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Thomas Cook apply this method as it has many consumers to whom it can sell tour package
directly.
Two level Distribution- When there are different level of intermediaries between
consumer and producer. In this distribution channel, manufacturer sells goods and services to
their retailer and they sold to final consumers. It is also called wholesalers and retailers
distribution channel. LCB also use such channel for selling holiday packages.
Through social network website- There are various social media such as Facebook,
Instagram, twitter for providing services to the user (Han and Hyun, 2015). Many company
create awareness and promote product through such portal. This is used by most of companies
for enhancing services and goods. It leads to more profitability than others channel. Thomas
Cook also enhance and sell packages of holiday by help of network website mentioning all
proper and relevant information.
Government website- The company nowadays use government site too for promoting
products and services and selling. Here LCB has used government website to sell holiday
package and encourage customer effectively. The company have to pay some amount to website
creator.
Online travel agencies- It is travel website which is specialised in selling of travel
products to visitors or customers. The agencies sell different products such as hotels, packages,
cruises, car rental, flights. LCB also use online travel agencies for convenient of people along
with time and cost saving with affordable price.
Visitor information centre- It provides information to visitors with location on areas
attraction, maps, lodging and relevant places for tourism. These are operated at port of entry and
airport by chamber of commerce and local government. It motivate and attract customer for
taking holiday or tour packages (Hudson, 2012). LCB use information centre which really attract
large number of customer.
Review sites- Before visiting any place market research is done. It can be done by
customer through review rating. If rating is good they prefer to visit otherwise not. So review
rating plays an important role in attracting large number of customer. If good quality services are
provided automatically rating is better. So firm should provide quality services with good
experience. Thomas Cook provide good experience to consumer which leads to better rating and
can increase profit and image of company.
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Voucher sites- It is piece of paper or ticket which can be used instead of money for
paying something. These are provided by the company to their customer. It can be at actual cost
or at discount. Many consumer buy such voucher for payment method. It is convenient mode of
to sell holiday packages with add on services. LCB use this method for visitors as it decrease the
load of carrying money with them.
Concierge services - It means assisting guest by performing various task such as booking
hotels, booking transportation, making restaurants reservations, arranging spa services,
recommending night life hot spots, coordinating porter services (Long, 2013). It assist employees
for choosing right package. This encourage visitors to buy package of particular hotel. LCB also
tries their best to provide all necessary services to the consumers.
TASK 4
4.1 Strategic decisions made by different types of tour operator
Pricing strategies- This strategy related to setting the price for the tours and activities
that make profit on each scale. There are different components for made up this strategy. They
are discount, commissions, package deals,last minute pricing and common pricing like per
person pricing, per unit pricing and single and occupancy.
Surcharge policy- It is an additional charge and tax. In tourism sector, it the additional
amount and fee which is pay to the tourism company after booking the tour or holiday package.
Positioning and image/ branding- It is a process of creating the images of the company
or brand and product in consumer;'s mind. LCB crate its place in consumer's mind by creating
through their good service and providing discounts and using other ways (Swarbrooke and
Horner, 2012).
Choice of product in relation to customer portfolio- There are various product and
services which are provided by LCB. When this company provide its all services and product in
the collection, it is portfolio (Sigala, 2016). And the consumers choose products and services
according its need.
Distribution decision- In this LCB distributes its products and services through agencies ,
suppliers and others. For accommodation, it contact with the hotels, motels and resorts or inns
etc. For meal services it use restaurants and catering services for the distribution of food. For
travelling it distribute this service by contacting travel agencies. These services can be provided
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according the consumer demand if he want to travel by air the tour company contact to airways
agency. And for bus service it contact transport agencies.
4.2 Tactical decisions (two examples) that could be taken by a selected tour operator in different
situations
Tactical Responses- Response it basically refer to the feedback (Sigala, 2016). It the
feedback of the consumers for the tourism company. This response can be related to the
services which are provide by the tour company. It can be related to pricing also.
Tactical Pricing- it is a short term attempt to manipulate the tourism company's price of a
good and service for achieving a particular business objective. LCB made up its tour
package according the consumer. It provides its tour package according the consumer's
budget so that they can easily purchase it without and burdens. Tactical pricing is related
to the pricing of services and pricing of travelling.
Tactical Marketing- It is the marketing of the actions that the company takes in order to
market a product. The action ns which which a tourism company include are generating
leads, placing adds, crating brochures and building websites (Xiang, Magnini and
Fesenmaier, 2015). It is related to the marketing of company and its product and
services.
CONCLUSION
In this assignment all the benefits and the services that are provided by the tourism and
travel company are define in a proper way. LCB a tour company, adept new trend and
technology and analysing different methods of contracting for components for the holidays
package. And in this assignment the planning decision, alternatives and traditional brochures
detail, strategic and tactical decisions are defined in a proper way (Cook, Hsu and Marqua,
2014). And all the information, techniques and strategies which are necessary for the tour
company are explain with the right information.
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REFERENCES
Books and Journal
Assaf, A. G., 2012. Benchmarking the Asia Pacific tourism industry: A Bayesian combination of
DEA and stochastic frontier. Tourism Management. 33(5). pp.1122-1127.
Baker, D. M. A., 2014. The effects of terrorism on the travel and tourism industry. International
Journal of Religious Tourism and Pilgrimage. 2(1). p.9.
Blanke, J. and Chiesa, T., 2013, May. The travel & tourism competitiveness report 2013. In The
World Economic Forum.
Boniface, B., Cooper, R. and Cooper, C., 2016. Worldwide destinations: The geography of travel
and tourism. Routledge.
Cook, R. A., Hsu, C. H. and Marqua, J. J., 2014. Tourism: the business of hospitality and travel.
Boston, MA: Pearson.
Fang, B., Ye, Q. and Law, R., 2016. Effect of sharing economy on tourism industry employment.
Annals of Tourism Research. 57(3). pp.264-267.
Han, H. and Hyun, S. S., 2015. Customer retention in the medical tourism industry: Impact of
quality, satisfaction, trust, and price reasonableness. Tourism Management. 46. pp.20-29.
Hudson, S., 2012. Sport and adventure tourism. Routledge.
Long, L. M., 2013. Culinary tourism. In Encyclopedia of food and agricultural ethics (pp. 1-8).
Springer Netherlands.
Xiang, Z., Magnini, V. P. and Fesenmaier, D. R., 2015. Information technology and consumer
behavior in travel and tourism: Insights from travel planning using the internet. Journal
of Retailing and Consumer Services. 22. pp.244-249.
Zaei, M. E. and Zaei, M. E., 2013. The impacts of tourism industry on host community.
European journal of tourism hospitality and research. 1(2). pp.12-21.
Online
Travel And Tourism. 2018. [Online]. Available Through:
<https://www.investopedia.com/financial-edge/0212/5-ways-to-invest-in-travel-and-
tourism.aspx>.
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