Tour Operation Management

This presentation covers the assessment of phases and timescales involved in developing holidays, evaluation of various methods of contracting, and computation of the selling price of a holiday. It also includes a case study on a sightseeing tour from London to Paris and France. The subject is Tour Operation Management.

Tour Operation Management

– The presentation will include the following :
– 2.1 Assessing the phases as well as timescales include in developing
holidays
– 2.2 Evaluating the suitability of various methods of contracting
– 2.3 Computing the selling price of Holiday

2.1 Assessing the phases as well as
timescales include in developing holidays
There are number if stages included in development of packages
which assists travel organisation such as Lcb in delivering the
quality services to visitors or travellers. The method utilised by
LCB for designing the quality holiday packages to customers. The
different stages involved in developing the tour packages are:
Market research: It is considered to be as initial stage, where it is required by
marketing manager in Lcb to execute market research. As this tactic will assist an
organisation in identifying the needs as well as demands of customers. Market
research is considered to be as crucial activity while planning holiday packages.
Lcb makes huge investment on research activities. In addition to this, online market
research has been executed by Lcb for analysing the preferences of visitors.

CONT.
Planning as well as scheduling: Planning is the next activity which is conducted by
Lcb after executing market research. Scheduling helps enterprises in scheduling
the plan for holidays. Scheduling as the activities involves determining the time of
holiday, season of holiday etc.
Forecasting: in forecasting, marketing manager in Lcb plans the holiday by taking
the effective measures of the holiday packages. Forecasting activities is executed
by travel companies such as Lcb for assessing the climate of the specific tourist
place and then implement the holiday packages. It supports the management in
identifying the current position of the selected location hence assist in designing
the holiday package. For examples, if a visitor wants to visit at tourist place
whether there is heavy snow fall then in such situation tour operator will denied
from providing such services to customers.

Forecasting: in forecasting, marketing manager in Lcb plans the holiday by taking
the effective measures of the holiday packages. Forecasting activities is executed
by travel companies such as Lcb for assessing the climate of the specific tourist
place and then implement the holiday packages. It supports the management in
identifying the current position of the selected location hence assist in designing
the holiday package. For examples, if a visitor wants to visit at tourist place
whether there is heavy snow fall then in such situation tour operator will denied
from providing such services to customers.

Contracting: Many travel companies such as Lcb either form strategic partnership
or enter into contract with other supporting services such as transportation or hotel
industry just to deliver additional facilities or services to customers. Contracting
strategy of Lcb has helped business entity in making holiday package successful.
The supporting industries such as hotel as well as transportation has supported
LCb in promoting the holiday packages (Holland and Leslie,2017).
osting of tour packages: It is considered to be as an important activity. While
determining the cost of holidays marketing manager in Lcb need to consider the
income level of target customer group, demand for packages, cost involved in
designing a pacakge etc.

Marketing of tour packages: Lcb will use strategic positioning for marketing their
holiday packages. The various factors such as trends, customers demand,
capability of vendors are considered by LCb before selecting as well as
implementing marketing plan.

Time scale for sight seen tour (From UK London to Paris and France)
Nature of tour: sight seen tour
Location: France and Paris
Date of beginning of tour: 1.12.2018
Duration of tour: 10 days
Number of tourists:18
Tourist destinations to be visited: Palace of Versailles, The Eiffel Tower, Notre Dame
Cathedral, Musee Du Louvre, Pere Lachaise Cemetary
Type of Tourists: Students
Cost of the tour: 350 pounds including breakfast, lunch and dinner.

2.2 Evaluating the suitability of various
methods of contracting
The contracts assist customers in eliminating needless cost which might be associated
with fulfilling additional demands. It also enables visitors to get their services
according to their desire. Lcb can enter into different types of contracts for
delivering the services to visitors or tourists. As this tactics help business entity in
delivering the products or services according to the demand of customers. It will
also assist an enterprise in meeting the expectations of visitors. Strategic as well as
contracting strategy will help LCB in develop strong relationship with customers.
There are basically three types of contract which Lcb can enter into with another
organisation these are:
Fixed contracts: This method is considered to be as an appropriate, as it helps Lcb in
delivering quality as well as timely services to customers. It is required by Lcb to
utilise this method for entering into a contract with suppliers or vendors. This
strategy will assist an organisation in improving as well as maintaining quality
standards. Lcb has fixed contracts with caterers, event management companies etc

CONT.
Fixed contracts with events management, hotels support has supported business
entity in expanding the scope of services. It has also assisted organisation in
increasing profitability and sales.
Allocation: This is the method of contract in which one companies promises other to
provide specific services for limited time period. . An allotment release back
period is also negotiated as part of the allotment contract. For instance, Lcb has
used allocation contracting method for entering into a contract with hotel
company, after facilitating negotiation, manager of hotel has committed to
provide specific number of rooms to the customer of Lcb at discount during the
particular season (Daniels, Park and Brayley, 2018.).

CONT.
Ad hoc : This method of contracting has been utilised by LCb at the initial stage in
order to prevent delay in deliveries of products ire series. Such method is
generally utilised by company’s fir entering into temporary agreement with other
party. Ad hoc contracts methods is used by business entities providing cover
before moving onto a more appropriate contract. In this method of contracts, the
services are provided by companies within the time span which is mentioned in
the agreement.

2.3 Computing the selling price of Holiday
SR.No. Information about
package
Price per person Price for 15 persons
1 Charges of Airline Euro 20 Euro 300
2 Charges of
transportation
Euro 1000 Euro 1000
3 Charges of hotels Euro 60 Euro 480
4 Miscellaneous charges Euro 200
5 Total cost in Euros Euro 1080 Euro 1980

CONT.
Total cots = !980
Profit =10 % Euro
Hence, total selling price is euro 1980+ euro 198 = Euro 2178
In addition to the above, fixed as well as variable costs are considered by manager in
Lcb while determining the cost of holiday package. Lcb has adopted discounting
pricing strategy which has provided business entity in attracting more number of
customers. Low cost pricing strategy has been adopted by an enterprise for
entering into the market (Celik, 2017.).

REFERENCES
Machuca, J.A., Größler, A. and Morita, M., 2018. Joining P&OM forces worldwide:
present and future of operations management. International Journal of
Operations & Production Management, 38(10), pp.1858-1865.
Mwesiumo, D., Halpern, N. and Buvik, A., 2017. Effect of Detailed Contracts and
Partner Irreplaceability on Interfirm Conflict in Cross-Border Package Tour
Operations: Inbound Tour Operator’s Perspective. Journal of Travel Research,
p.0047287517746016.

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