Tour and Operations Management

This presentation focuses on planning and designing of a package, stages involved in developing holidays, different methods of contracting, calculation of selling price, and more.

TOUR AND OPEARTIONS
MANAGEMENT
TASK - 2

TABLE OF CONTENTS
1. Introduction
2. Regulatory bodies
3. Details of all-inclusive tour and itinerary
4. Assessing the stages and timescales being involved in developing holidays
5. Different methods of contracting for different components of the holiday
6. Calculation of selling price of a holiday
7. Information about hotel in greece
8. Price comparison with other tours
9. Conclusion
10.References

INTRODUCTION
The current presentation focusses on planning as well as designing of a package.
As a tour coordinator of lcb tours, the main role is to discuss the stages being
included in the development of holidays. In addition to this, numerous planning
decisions will also be analysed for creating a brochure. Furthermore, the
presentation will also throw light on appropriateness of different methods of
distribution being adopted for selling holidays by various tour operators.

TYPES OF REGULATORY BODIES
• Association of british travel agents (ABTA)
• Association of independent tour operators (AITO)
• Federation of tour operators (FTO)
• Civil aviation authority (CAA)

DETAILS OF ALL-INCLUSIVE TOUR AND ITINERARY
The company has decided to take the students to the destination Greece and thus
packages for 7 days is being designed. The family members of the students can too
join the trip but there will be difference in tariffs, fares and prices of the packages
depending upon their age. Hotel Avra beach resort is being decided as a hotel
where students will stay for next 5 days with twin sharing room facility. For
sightseeing and other adventures, taxi and cabs are being booked in advance. The
package will include breakfast, lunch and dinner for 7 days. There will be around
80 people.

ASSESSING THE STAGES AND TIMESCALES BEING INVOLVED IN
DEVELOPING HOLIDAYS
Activities /stages Description Timescale
Market research
It includes understanding the whole environment and
industry like demand and supply, economic conditions,
research about the customers, size of the group, dates,
attractions to be visited etc. 3 months
Planning and
Scheduling
Planning and scheduling needs to be done about the
location of the tour. Seeking help from the market
research, it has been decided that the tour will plan for
Greece. The size of the group will be 80 people and it will
be of 7 days. Along with this, several sites will be visited
like Acropolis Museum, Meteora, Parthenon and many
more. The tour will initiates from 23rd November to 30th
November
2 months

CONTINUED…
Contracting
At this stage, agreements are developed and signed by the tour operators
and services providers. It encompasses legal work and it is important that it
should be performed at right time and place
3 months
Costing
It refers to the whole costs being involved in the tour package. The price of
the packages is being decided according to the facilities as well as
adventures being included in the trip.
1 month
Financial and evolving It includes evaluation of the expenses and profits margins by taking into
consideration fluctuations in the prices. This is the stage, where the profits
being earned by the tour operators is being decided.
1 month
Tour brochure This is the stage, where the brochure is being developed by the firm so as
to promote the package. The main aim here is to attract large number of
customers
15 days

CONTINUED…
Advertising For the purpose of advertising the tour package numerous
methods are being used like Magazines, radio and Television
15 days
Operations and
execution
At this stage, ticket are being booked, deposits, checklists,
itinerary and many more is also being done and the tour is
initiated
10 days
Post tour management As soon as the tour gets over, all people associated with the
tour are asked for their feedback so that necessary changes can
be done in the next trip. This stage also include making of
payments which are due to the service providers.
15 days

DIFFERENT METHODS OF CONTRACTING FOR
DIFFERENT COMPONENTS OF THE HOLIDAY
• FIXED CONTRACTS
• ALLOCATION CONTRACT
• AD-HOC CONTRACTS

CALCULATION OF SELLING PRICE OF A HOLIDAY
The company has decided to take the students to the destination Greece and thus
packages for 7 days is being designed. The family members of the students can too
join the trip but there will be difference in tariffs, fares and prices of the packages
depending upon their age. Hotel Avra beach resort is being decided as a hotel
where students will stay for next 5 days with twin sharing room facility. For
sightseeing and other adventures, taxi and cabs are being booked in advance. The
package will include breakfast, lunch and dinner for 7 days. There will be around
80 people. The package to greece will include all these services and the prices of
the activities is being defined underneath:

CONTINUED…
Facilities
Price (in pounds)
Students Guest (above 15 years) Guest (6 months to 15
years)
Transport (air tickets, taxi
and coach fare and visit
fare)
160 170 155
Accommodation 60 72 50
Food 50 62 45
Sightseeing and entry
tickets
60 65 55
Total cost 330 369 305
Add profit margin (10%) 33 36.9 30.5
Sales price 363 405.9 335.5

INFORMATION ABOUT HOTEL IN GREECE
AVRA beach resort and hotel is being selected for the tour to Greece. It is located
in the Rhodes island in Greece. The hotel will provide extra-ordinary stay
experience to all their guests and offers a splendid beach and natural surroundings
just a few minute walk away. The hotel will also provide different amenities to
their guests like pool, bungalows for relaxation, jacuzzi, water sports action and
many more. For the current tour package, the company has booked twin sharing
rooms. There are 80 people and thus 40 rooms are being booked in 120 Euros.

PRICE COMPARISON WITH OTHER TOURS
Details Price
Accommodation 80
Transportation 180
Food 45
Sightseeing 70
Total costs 375
Profit margins 15% 56.25
Selling price 431.25

CONCLUSION
Therefore, it can be concluded that the package being developed by the company is
far better in comparison with the other tour operators. Numerous facilities are
being offered at affordable prices. The main difference is in the prices of
accommodation as well as there profit margins

REFERENCES
• Nibusinessinfo, 2016. Niche tourism opportunities. [Online]. Available through: <
https://www.Nibusinessinfo.Co.Uk/content/niche-tourism-opportunities >. [accessed on
1stnovember 2018].
• Romero, I. And Tejada, P., 2011. A multi-level approach to the study of production chains
in the tourism sector. Tourism management, 32(2), pp.297-306.
• Mariani, M.M., Buhalis, D., Longhi, C. And vitouladiti, O., 2014. Managing change in
tourism destinations: key issues and current trends. Journal of destination marketing &
management, 2(4), pp.269-272.
•

THANK YOU