Strategic Marketing Analysis in Tourism Industry

The assignment involves analyzing and understanding the role of tour operators in determining customer needs, preferences, and behaviors. It aims to explore how this understanding assists in developing effective tour packages and strategic marketing plans. The task also requires examining various stages involved in tour package development and strategizing for future contingencies using tactical decisions. This analysis will be based on information gathered from various sources such as books (e.g., 'Strategic Marketing in Tourism Services' by Tsiotsou & Goldsmith), journal articles (e.g., 'Strategic Determinants for the Selection of Partner Alliances...' by Chand & Katou), and other relevant resources.

TOUR AND OPERATION
MANAGEMNENT

Contents
INTRODUCTION.....................................................................................................................................3
TASK 1.......................................................................................................................................................3
1.1 Impact of recent trends on tourism industry.......................................................................................3
TASK 2.......................................................................................................................................................4
2.1 Different stages involved in creating Holiday....................................................................................4
2.2 Suitability of different methods of contracting and different types of tour operator..........................5
2.3 Calculate the selling price of a particular holiday..............................................................................6
TASK 3.......................................................................................................................................................6
3.1 Planning Decision made for designing the selected brochure............................................................6
3.2 Suitability of alternatives to traditional tour operator and select the most appropriate one................7
3.3 Suitability of different method of distribution and recommend then most appropriate one...............8
TASK 4.......................................................................................................................................................9
P4 Strategic Decision made by different Tour Operator..........................................................................9
P5 Tactical Decision framed by selected Tour Operator........................................................................10
CONCLUSION........................................................................................................................................11
REFERENCES........................................................................................................................................12

INTRODUCTION
The travel and tour industry is considered as the fasted growing industry among others.
They are contributing immensely in increasing the GDP of a country (Tsiotsou and Goldsmith,
2012). Along with this, people have increased their spending power which enables them to travel
as many countries as they can. Tour operation management is mainly considered as the planning,
monitoring, implementation of all activities and task so to attain business goals and maintain
systematic flow of function in an effective and efficient manner. This report is based on
TrailFinder which is an UK and Ireland based Travel Company. This report talks about influence
of recent trends on travel industry, different methods of contracting, different types of tour
operator, different types of distribution and promotional channel and lastly tactical decision
framed by selected organization.
TASK 1
1.1 Impact of recent trends on tourism industry
At the time of II world war, various changes takes place in travel and tourism industry.
Business grows rapidly as the needs and preferences of customers are change. Many firms
operates in tourism sector. They administer various tour packages as per the requirements of
customers. This will increase profits, growth and sustainability of the business enterprise.
The recent changes that influence Trail finder are defined below:
Flexible booking options:
Due to technological initiation, people can confirm their bookings by various ways such as
telephone, internet, call centres etc. They book their tickets on their own discretion and time.
It is an easier, quicker and cheaper process. This will influence tourism sector as tourist are
becoming anxious in refurbishing to services of travel agent which will losing huge amount
of money. Firm like Trail Finder are shutting their high street agency as travelers are
reinstating to online agents.
Independent Travellers:
Many independent travellers are gathering everywhere in the world. The cause behind
this is accessibility of cheap holidays and deals online. Due to this, independent travelling is
getting more common which does not include the services related to tour agency. Generally,
the independent travellers refer to compulsive travellers or businessman pursuing their
passion like mountain biking and others (Katou, 2013). They book their own travelling and
accommodation, which leads to tourism operators losing money.
Technology:
Technology led to emergence of technological driven market place. It comprises of
diverse customers and fragmenting media. Now, endless opportunities are provided by
technology and marketing with the aim to increased synthesis and integration among them.

Technology development has completely change the way in which tourism providers interact
with their customers. Today, travel operators should pay attention to consumer. This is the
individual who involved effectively in product design. The ‘Digital Revolution’ and internet may
possibly start a shift in thinking of tourism operator to move from client relationship
management to customer managed relationship where they have the liberty to effect control on
shaping and design of a good or service that directly influence the equilibrium of power among
the consumer and provider (Bellman, 2016)
Sustainable Tourism Development:
This is the key aspects that the operators of travel and tourism aims to attain Sustainable
tourism development in the current scenario and can also be stated as healthy or ethical tourism.
It can be attained by more than one way. The ways are to furnish the surroundings by accepting
various means to stabilize or enhance it. This means no tourism operation is conducted that
interrupts and harms the environment. Other way of administering sustainability is to preserve
the heritage and culture of place. This assists in attracting large number of tourist and keeping
local tourist free from conflict. Another way to manage sustainability is administering
opportunities for employment. Establishment of tourism in a particular region is beneficial for
economy of that region.
Destination Marketing:
In present, tourism marketing is being slowly changed by destination marketing. Earlier,
advertisement is done by distributing leaflets. But today, tour operators hire advertising agencies
in order to improve the image of a specific region so that tourist are more attracted. It is done by
digital media. It refers to internet as well as it’s immerse reach. Advertising and large scale
promotion of various destinations are done online by tour operators as it enables them to access
to large number of customers in effective and efficient way. Apart from this, more attention is
pay towards preferences and demands of customers from different segments online. Therefore,
destination marketing is completely done with the help of new media in present times.
TASK 2
2.1 Different stages involved in creating Holiday
1. Conducting Market Research: When the customer selects the travel destination, the primary
role of tour operator is to execute market research in order to gather the relevant information and
facts related to chosen location so that they start begins their plan. In this, the research and
development team of TrailFinder gathers information about popular attraction, accommodation,
food, entertainment, weather details, latest trend, entry fees for sightseeing location, travelling
expenses and other miscellaneous expenses. This would help in making an estimation of total
cost of the package.
2. Development of Tour Itinerary: After collecting all the essential detail related with chosen
organization, TrailFinders are require to prepare itinerary for their target customer. It is
systematic plan of all the activities that needs to carried out throughout the entire journey (Jager

and Potgieter, 2015). With the help of this, it has become much easier for customer to execute all
activities in an effective manner.
3. Negotiation with Supplier: In this, tour operator negotiates with suppliers which leads to
reduce the total cost of tour package. As tour operator keeps on dealing with supplier and also
book in bulk quantity therefore, they negotiate with supplier to set the best possible price.
4. Financial Planning: This help in creation of proper budget or cost for the entire tour package.
With the help of this, respective firm would be able to determine the actual cost of the holiday
package including their profits as well (Noh and Jung, 2014).
5. Marketing of the Tour: After completing all essential stages, it is very important for a tour
operator to conduct market campaign so as to aware or educate target customer about their
product and servicers and seize the attention of them. They can promote their packages mainly
via online source, social media, brochure, print media, audio-visual etc.
2.2 Suitability of different methods of contracting and different types of tour operator
There are two method contracting namely Fixed and Sales Contract Method. Below
mentioned are the detail description of these two methods:
Fixed Method: This type of contract is for fixed period of time and after when its time period
ends, it also ends with that. In tour and travel operation, it is mainly used to increase the sales
and services for that particular time frame. TrailFinder begins this contract by commencing
booking of hotel and airline in advance so that they can use effectively in off season. This will
lead to increase the volume of company even in off or non-peak season and yields higher profit.
However in addition to this, any non-utilization of the capacity has to bear by the tour operator
itself not by service provider. For example: TrailFinder Books 50 tickets for their customer and
only 48 has been used 2 are still left the, in that case company will bear the cost of these 2 un-
utilized ticket.
Sales Contract Method: Under this method, services are sold by tour operator at high prices
comparative to fixed contracts. These contacts are often made as per the requirement and
demand of target customer. No-risk of non-utilization is attached to it. For example: If
TrailFinders book 45 beds for 45 students, then payment for the same is made.
Different Types of Tour Operator:
Inbound Tour Operator: These type of tour operator mainly deals in promoting their
multinational trip all across the globe.
Outbound Tour Operator: These type of tour operator deals directly with inbound foreign
visitors.
Domestic Tour Operator: These type of tour operator provides services to resident of home
country and fulfills their needs and desire in an effective and efficient manner (Bagan and
Dominicis, 2015).

Ground Tour Operator: These are referred to the reception operator, destination management
entities and dealing with agencies which enable other tour operator with the aid in foreign nation.
2.3 Calculate the selling price of a particular holiday
According to the given information, TrailFinder has to create luxury educational tour for
students more than 18 years of age. The tour begins from London, UK to Brugge, Brussel and
Belgium (Khairat and Mather, 2012). The cost of entire luxury coach is 11, 200 (in pounds) that
also covers the price of road taxes, fuel, ferry and two drivers. Apart from that there are 42
students that are going on this tour. The role of TrailFinder is to find the actual selling price of
the tour. Below mention are the required calculation:
cost of rooms per person 85.71
cost of luxury coach per seat 233.33
Allocation of local guide cost per person 472.5
Total cost of tour before margin 791.54761905
Add: Profit margin 261.1923809524
Selling price per person of tour after
margin 1052.74
Calculation of Accommodation Cost: There are 42 students and twin room is shared by 2
students that cost per person around 96 euros. So TrailFinder has divided 42 students in 8 group
and remaining 2 students can adjust with any group by paying extra cost for additional bed.
Calculation of Transportation Cost: The entire cost was given which is 11, 200 that includes
cost of other elements such as cost of fuel, driver, taxes etc.

TASK 3
3.1 Planning Decision made for designing the selected brochure
Brochure are often used by tour operator in order to stimulate the interest of large
customer and make them aware about their product and services. It is considered as the most
effective way of advertising and promoting holiday packages made by the tour operator (Ruan
and Kawamura, 2014). Thus, it is very essential for tour operator to take effective decision
concerned with that such as its design, color, content, pictures etc. so as to make it attractive and
catchy. In order to seize the attention of target customer, manager of Kuoni has to design the
brochure in a simple and attractive manner which attracts the buyers towards their tour packages.
Following are some key aspect that should be taken into consideration while framing the design
for a Brochure are as follows:
Format of Brochure: The most crucial aspect is how it is presented in front of the customer that
directly influence the customer to buy the services of tour operator (Bellman, 2016). It is very
important to emphasize on the format or design of brochure that renders clients with an ease to
read or go through it in an effective manner. The layout of brochure must be concise and clear.
As it has been correctly said that first impression is considered as the last impression. Hence, the
prime responsibility of marketing manager of Kuoni is to make it attractive so that it clicks in the
mind of customer at first sight only. Also they can add features such as accommodation, food,
transportation services, price, destination etc. so to make it more eye-catching.
Paper Quality: For designing attractive brochure, company is required to take decision regarding
its paper quality as per its brand positioning. Along with this, firm will proposed the smooth and
glassy quality of paper for designing its brochure.
Content: After deciding the design and paper quality of brochure, marketing manager of Kuoni is
require to take decision concerned with its content. In this, the referred firm will consider the
plans and information of rivalry companies that been given to target customer. Moreover the
firm also needs to take decision related with languages as per the target group.
Color and Graphic: In the modern era, combination of both graphic and color has crucial impact
on brochure’s design that ultimately leads to enhance the interest of clients to read the brochure.
Respective firm needs to select the color as per the latest demand of customer which aid in
attracting them in a better way. For example: choice of color depend upon summer session &
location.
Unique and Distinct: The brochure must be uncommon with other competitor as it influence the
customer with a creative or innovative concept. Bringing new creativity in the brochure enables
the firm to gain brand recognition and generates its strong brand image in the market as well.
3.2 Suitability of alternatives to traditional tour operator and select the most appropriate one
Traditional Brochure are considered as those document that contain information
concerned with tour and its key features mainly in printed form. In earlier days when there was
neither internet nor social media sites, this method is measured as the most effective one so to

attract the large number of customer. But somehow it start getting fail as there were no use of
lively and oral communication among customer and tour operator (Doreen, 2013). With various
changing trend and technology innovation and advancement different channels or methods has
been introduced on which company can promote its brochure in an effective manner. In the
modern era, tour operator can advertise its brochure in the following ways:
 Social Media
 Online Promotion such as television, newspaper and radios
 Audio-Visual Brochure
 Mobile Application
 Websites
There are four types of tour operator that are performing its business activity as per its
resources and capacity to attain its business objective. In the modern world, marketing
strategies are changing because of globalization and high use of internet services has
enforced tour operator to choose different ways so as to provide information to customer
through brochure (Yang and Ruan, 2011). For example: Inbound Tour Operators directly
deals with foreign visitors which means they can use e-brochure method for promoting its
product and offering information to large number of customer. This type of brochure assist
in covering the wide-ranging areas of target customer and achieving objective in an effective
and efficient manner. Outbound Operators generally using online method for promoting its
packages and gain the attraction of potential buyers. They are mainly advertising its
brochure via email, social networking sites, mobile application etc. By using mailing
function, outbound operator can offer information related to its plan mainly detailing
information concerned with accommodation, food, transportation, sightseeing and
entertainment with actual prices and pictures.
On the contrary, ground and domestic tour operator still promote its brochure via
traditional method. They provide all relevant information to its clients concerned with
accommodation, food, entertainment etc. in printed form. For instance: Kuoni is a domestic
tour operator that renders high quality services for local residents and develop tour packages
mainly for niche sector.
Above discussed tour operators, Outbound Operators are the one who are using most
effective and efficient strategies and tools for promoting its brochure or tour package. As
they mainly promote via online methods which makes them associated with its customer.
Also it become easier for them to examine their likes and dislikes. Apart from that, almost
85% of the population is having minimum one account on any social networking sites.
Outbound has taken the advantage of this and promote its packages on social networking
sites such as facebook, instagram etc. which keep them connected with its clients for longer
duration.

3.3 Suitability of different method of distribution and recommend then most appropriate one
There are various ways in which company can distribute its brochure among ample
customer such as online, direct selling. Mentioned below are the detailed explanation of these
distribution method:
Direct Selling: These type of distribution method is suitable for ground and domestic level of
tour operator. Kuoni is using this method for distributing its packages among target audience.
With the help of this, they are able to interact directly with the buyers and retain them by
providing various tour packages & plan as per their need and demand. It is considered as the
most used method by ground and domestic tour operator (Stroke, 2017). They can generate
awareness in people among their product or services. Also they can establish long term
relationship with loyal customers and examine their likes and dislikes in a structured manner.
Moreover, with this option Kuoni can seize the attention of potential buyer and ask them for their
feedback as well. This will aid respective firm in upgrading themselves and their services as per
the needs and preferences of target people.
Online: This distribution method is widely used by Outbound and Inbound Tour Operator. Under
this method, tour operator distribute its packages among target customer via online channel such
as social media network, e-mail, mobile application or message (Kim and et. al., 2016). With
innovative and advance technology it has become much easier for companies to establish direct
connection with their customer in an effectual manner. In the modern era, where people spend
most of their time on internet or social media websites such as facebook, twitter etc. Company
can take the advantage of this and start distributing its product via that channel. Moreover they
are also using e-mail method for so to attract the attention of target customer. With the help of
this method, company can easily determine the likes and dislikes of their clients. Also it is cost
effective method and it will remain with customer for life long. For example: Visitor can check
their mail at any time.
According to me Online comes out as most effective method in terms of distributing products or
packages among target customer. This help in maintaining long term relationship with clients
and makes easier for the tour operator to know the likes and dislikes of them in a better way.
Also in modern era, it has been found out that people spend most of their time surfing on
internet, taking the benefit of this respective firm can distribute their product via their interest
channel only.
TASK 4
P4 Strategic Decision made by different Tour Operator.
The Tour Operator such as TrailFinder has implement various strategies in their business
activities with an aim to expand it all across the world (Mordant, 2016). These decision are
generally taken in order to attain higher customer satisfaction, increased revenue, achieving
goodwill, company expansion etc. These decision are made by company in its day to day
operation such as determining the customer segment, designing and developing brochures,
setting up price for complete tour package etc. In order to deal efficiently with future
contingency or business crisis, TrailFinder are required to make strategic decision. The nature of

travel and tour industry is very flexible and to deal with it in an effective manner, suitable
strategy is needed at every step for running it smoothly. Following are the strategic decision
made by TrailFinder are discussed below:
Pricing Strategies: TrailFinder has used different pricing strategies so to attract ample target
audience for purchasing their product or services which ultimately leads to increase their profits
and sales. The main purpose of such decision is to retain its loyal customer and attract the new
ones. The respective firm set the price of their product as pert their quality. TrailFinder adopts
economical pricing strategies so that their services can be availed by all the customers.
Segmentation, targeting and Positioning: In this, TrailFinder determines its target buyers and
develop tour packages keeping in mind their likes & dislikes. This is considered as the most
important decision as others are based on this (Wilson, 2015). This decision is taken by
respective company after critically evaluating their competitors present in the marketplace and
the services provided to potential customer for attaining their desire within a defined budget.
Distribution Decision: Such type of decision are made by referred concern so to fulfil the
demand and want of customers by making their product or services available within the specified
time-frame. This also helps in retaining consumers for longer time. While formulating such
decision, TrailFinder are require to taken into consideration all factors related it so that it may
not hinder their growth or development in the market.
Customer Relation: Strategic decision related with customer relation mainly deals in offering
valuable services to its target audience at low or minimum cost. Such decisions are taken by
business enterprise so as to attain the trust of users on them. Another reason for framing such
decision is to retain existing and new customer and maintain its high goodwill in the market as
compared to its competitors. This mainly assures safety and health of buyer, fulfilling the
requirement of customer, offering them with branded goods and services etc.
Ways of transport: Such type of decision are concerned with choosing different modes of
transportation and selecting the appropriate one that satisfies the needs of customer in most
effective and efficient manner. Availability of different types of transportation mode rely upon
the cost of tour packages that is mainly set by the tour operator as per the needs of desired
customer. These modes comprises of airlines, waterways, railways and roadways.
Promotional Strategies: This decisions are concerned with how TrailFinder uses different
techniques and tools in order to promote its product and services among society and customer at
large. The entire profitability of the firm depend upon this decision. This serve as a base for
generating profits and income.
P5 Tactical Decision framed by selected Tour Operator
Tactical Decision can be assumed as decision framed by tour operator on frequent basis
for the implementation of its day to day operation and functions. These decisions are considered
as short term decision that has an influence on the business activities for short period of time.
These types of decisions are mainly related with food, accommodation, negotiation with service
provider etc.

Pricing Strategy: TrailFinder is a sound company in context of financial condition. They mainly
deals in providing economical goods and services with a decent discount offers in order to attract
ample customers (Seifi, 2014). They laid more emphasize on satisfying their customer rather
than generating higher profits. The Pricing strategy of TrailFinder is customer-oriented as they
develop complete tour packages keeping in mind the needs and desire of potential buyers and
offers to them at an economical price so that it can be availed by each and every consumer.
Currency Rates: As TrailFinder is an international tour operator which means that they have to
deal with customer of different region or country. Because of operating their business practices
on international level, their sales and profits can be affected by currency fluctuation between the
different countries. In order to deal with such fluctuation in an effectual manner, respective firm
has taken some tactical decision in order to evade the loss causing from that fluctuations.
Price War: Different Tour Operator offers various tour packages to ample customer. It is the
prime responsibility of the firm to identify the price of different tour operator and then set its
price which give them higher competitive advantage over them. Also they required to consider
all those factors that affect the prices of rivalry tour operators (Love and Hardin, 2017).
Price of the Fuel: Price of the Fuel: Such types of decisions are generally made by the tour
operator because of continuous fluctuation in fuel price. Any change in the price of fuel may
cause adverse impact on entire profit of tour operator.
Consolidation: It deals with examine various aspects related with travelling, food,
accommodation & beverages. Tour Operator are require to frame such decision as per the taste
and preferences of target customer.
Tactical Marketing: It is essential for every tour operator to monitor the program or activities on
frequent intervals in order to evaluate the effectiveness of each program or activity. This help the
firm in knowing whether there activities are performing in a proper manner or not.
CONCLUSION
As per the above report it can be concluded that travel and tourism industry adversely
affected by the recent or current trend. Unlike any other business enterprise, the main role of tour
operator is to determine the needs and wants of different customer. This assist them in knowing
what are their current likes and dislikes so that they can provide services to them in an effective
manner. This report also assist in knowing various stages related with the development of tour
package. Also with the help of tactical decision, company can foresee future contingency and
develop corrective measure so to deal with them in an effective and efficient manner.

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