Operations Research and Service Industry

This assignment delves into the application of operations research (OR) within service industries. It requires students to analyze various OR techniques, such as stochastic covering tour problems and non-parametric frontier models, and their practical implementation in areas like tourism and manufacturing logistics. The assignment emphasizes understanding the role of OR in enhancing service efficiency, quality, and customer satisfaction.

TOUR OPERATION
MANAGEMENT

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................4
P 1.1 Examination of recent trends and development in the tour operations industry................4
TASK 2............................................................................................................................................5
P 2.1 Assess the stage and time-scale in developing holiday packages......................................5
P 2.2 Evaluate the suitability of different methods of contracting the various components of
the holiday for different types of tour operator's.........................................................................6
P 2.3 Carry out the cost of the component of tour package .......................................................7
TASK 3............................................................................................................................................7
P 3.1 Evaluate the process and planning decisions for the proposed brochure...........................7
P 3.2 Assess the suitability of alternatives methods of communication and promotion.............8
P 3.3 Evaluate the non-traditional methods of distribution that can be used to sell holiday
packages......................................................................................................................................9
TASK 4..........................................................................................................................................10
P 4.1 Analysis emerging trends in UK and set agenda for future direction through various
strategies....................................................................................................................................10
P 4.2 Comparison between different tactics decisions that can be taken by Thomas cook group
...................................................................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCE.................................................................................................................................12

INTRODUCTION
Tour operation management is very important aspect which help to arrange various action
regarding travel. It offers various services as a package to the customers with a chain of tourism
industry (Gong, 2015). Further, agencies offers transportation, accommodation and other
facilities to their customers. Present report is based on Thomas cook group which offer luxury
and quality services to their customers. In addition to this report identifying and developing new
tour package for expand their customers in different parts of the world (About Thomas cook
group, 2016). In this report covers, recent trends and developments in the tour operations
industry and analysis different types of holidays taken. Furthermore, report assess the stages and
time scale in developing holidays packages. In addition to this, report also evaluate suitability of
different methods of contracting various components. Moreover, it also covers design and plan to
evaluate the process and planning decisions. Along with this, it also covers examination of
differences between tactics and strategic decisions. At last. It evaluates the suitability of different
methods of distribution which is used to sell holiday package for different types of tour
operators.
TASK 1
P 1.1 Examination of recent trends and development in the tour operations industry
As per the world trade organization, tourism industry has major source to boost economic
for developing business and nation (Qiu, 2014). UK growth rate is very high in term of tourism
sector. It considered vary good aspect in the world. Major development and trends generate
various impact on the tourism industry which describes as follows: Technological development in E-commerce: Present development of the tourism industry
is mainly depends on the development of new technology. This technology offers
information in term of on-line to attract several customers together. In this context,
business book services for their customers in online which help to them to save time of
customers (Lugosi, Janta and Watson, 2012). In addition to this, it also assists to
customers to make their reservations and cancellation anywhere they want. Enhancement of spending power: In recent time, customers spend more money in tourism
sector. It will helpful to Thomas cook group as they easily expand their new destination

and operations in different parts of the world. Therefore, cited firm gain more profits
from the operating various function in different marketplace (Thorogood and Crichton,
2014). Further, increasing in spending power of customers help to enhance opportunities
for tour-operator to spread action in different areas. Economy functions: Economic functions play very important role in the business which
enhancing day to day activities of tourism sector. Thomas cook group in recent time give
major contribution in GDP of UK marketplace. Hence, it will helpful to achieve overall
objectives and providing employment opportunities to the stakeholders who are working
in tourism segment (Loch, Van Der Heyden and Escalle, 2013).
 Tourism marketing: Marketing actions of tourism aids to Thomas cook group and
destination owners to creating awareness among various customers. In respect to this,
business offers services in attractive manner to their customers at specific tourists spot.
This will assist to customers to demonstrate clear knowledge about particular tourism
destination and spot.
TASK 2
P 2.1 Assess the stage and time-scale in developing holiday packages
Planning is consists by tourism business which is integral part for developing overall
enterprise through various actions (Schmidt, Thoroe and Schumann, 2013). In this context, tour
activity help to fulfil consumers needs that includes in holiday packages offered to them. The
development of holiday packages is contains by Thomas cook group for Cambridge heritage,
beach and wildlife holiday. In respect to this, it will consist in various stages which are as
follows: Examining the new destination: There is vital need for Thomas cook group to examining
two destinations that are selected for development of the enterprise (Catlin, Jones and
Jones, 2012). In respect to this, tour-operator of the company design entire tour of 2-3
months time-scale. Research: The chosen organization conduct market research for selected two
destinations. For example, purpose is to design the wedding tour packages in Las Vagas.
In this context, they need to develop research in various types of wedding ceremony
features that can be offered to the customers. Along with this, for VIA AlGARVIANA,

consumer would be research for which activities needed by them (Simar and Wilson,
2015). In this context, at least two months would be required to the organization. Negotiation: After conducting research, it is vital to negotiate several services which
offer by Thomas cook group. In this context, they mainly set services for customers such
as accommodation, food, transportation and other facilities. It is mainly required by
tourists who are looking for tour packages. In this context, cited firm have needed time
period of 4-5 months (Bohnen, Buhl and Deuse, 2013).
 Tour development: It is the final step which is design for tour package and done by
negotiating. In this, Thomas cook group negotiating with services providers and
conveying the features to the services to tourists. Hence, it promotes to the newly
designed tour package for the customers in various parts of the nation.
P 2.2 Evaluate the suitability of different methods of contracting the various components of the
holiday for different types of tour operator's
There are two types of methods which Thomas cook group can use to book different
aspects of the tour package that are developed by tour operators (Busby and Huang, 2012). In
this context, two methods such as sale only contract and fixed contract. In respect to this, Air
tours and flight centres are the selected which making different types of order for the services of
enterprise. In this, includes transportation, accommodation and various other services that
arranged by the tour operators. Different types of methods explains as follows:
 Fixed contract: These types of contract are made by Thomas cook group to ensure the
utilization of volume based capacity (Zhu, Mukhopadhyay and Kurata, 2012). In addition
to this, it will also maximize the revenue collection of the organization. Further,
enterprise make arrangements through fixed contract by air tours depending on the
customer's expectation. The company made payments as per the total- capacity which is
booked by different customers. As compare to this, Air tours keeping in mind the fact
that summer is peak time to attract various tourists. In addition to this, in summer there
are few chances of non-utilization of capacity (Xing, Wilamowska‐Korsak and Zhang,
2013). As results, this method will come with the benefits of high discounts.
 Sale only contract: Major flight centres selected sale of contract method for design their
tour packages in various part of the nation. This packages design for segment of the
customers who have interested to use travel package. In this type of contract, basically

made at the time of lean session and it reduces risks to design tour package by them
(Coelho and Laporte, 2013).
After demonstrating above two methods, it can be stated that fixed contract method is
best for Thomas cook group which serve several benefits to the customers. In this context,
customers have various benefits such as high discount, ensuring availability for advance booking
services and many more things. In this context, flight centres pay price for hotel and
transportation which is used by the customers. Further, sale contract will helpful to minimize the
wastage by avoiding paying for UN-utilize capacity (Wong and Lee, 2012). Hence, it will
helpful to reduces risks of losses.
P 2.3 Carry out the cost of the component of tour package
In the current project of Thomas cook group they demonstrate 7 days package to UK
customers. In this context, they determine more than 800 plane that maximize their capacity of
250 tourists. Agents of the company make arrangements for the accommodation in different
beach of the selected destination. In respect to this, they plan for Woolacombe beach which exist
in Woolacombe, UK (Tricoire, Graf and Gutjahr, 2012). The booking will be made for almost
100 passengers with agents of cited firm. The tour-operator bear cost if customer's change their
preferences. Following table show total cost of the company which they have incurred to operate
their packages:
Sr. No. Package details Sale price for per
person
Sale price for couple
1 Charges for
transportation
102.7 189.6
2 Transportation in local
area
Transportation by
coach
Transportation by taxi
Transportation by bus
0
12.9
37.65
79
0
18.8
43.45
82
3 Booking for hotels 31.6 63.2
4 Other charges 15.8 23.7

Total expenses 279.65 420.75
TASK 3
P 3.1 Evaluate the process and planning decisions for the proposed brochure
In Tourism industry brochure used to convey message for selling holiday packages
through on-line and off-line method. In this term, planning decisions related with the cited firm
brochure. In this context, brochure delve deeply information regarding tourism services. In
respect to this, low cost and high reach are two basic advantages that obtain from the tourism
brochure (Lugosi, Janta and Watson, 2012). It mainly includes designing which cover current
package of proper planning, research and implementation of the process. In this respect, planning
decisions of the brochure can be completed by following terms: Recognition of planning issue: In this context, Thomas cook group have several issues
like format, objectives, time-scale and target segment which are needed for the
completing purpose of designing brochure (Schmidt, Thoroe and Schumann, 2013).
Hence, these aspects are vital importance in the brochure. Format: To making brochure attractive and increasing its visibility, tour-operator has of
Thomas cook have requires to pre-decide format. In addition to this, they have also
required to select target segment which identified by tour-operator. Target market and budget: On the basis of niche segment such as wedding tour or mass
market segmentation, Thomas cook group is best (Simar and Wilson, 2015). In addition
to this, budget is also major factor which spending power of the customers.
 Time-scale and stages involved in Brochure design: Appropriate time for designing
entire brochure also mention in the planning decisions. This is because, it will
demonstrate relevant information to design the services for customers (Catlin, Jones and
Jones, 2012.
P 3.2 Assess the suitability of alternatives methods of communication and promotion
In respect to this, Thomas cook group has an opportunity to look upon the alternatives for
consumers. In this context, Thomas cook group make brochure such as summer 2014 and Air
tours summer 2014. In order to improve the quality of the brochure it is very important to convey

relevant information regarding services of the company. As compare to this, development of new
technologies helpful to the tour operators who can adopt various medium. For choose efficient
method is to design brochure and conveying message to customers (Thorogood and Crichton,
2014).
In designing on-line brochure there has wider term to reach the physical brochure. Thus,
it will beneficial for Thomas cook group as they can design in effective ways. In addition to this,
cost efficiency is another benefit for tour operators as they can use E-brochure method. Cost of
designing and developing E-brochure has very less cost from physical brochure. Another
effective alternatives have cited firm is visual medium of brochure (Loch, Van Der Heyden and
Escalle, 2013). As results, they have greater impact through they can attract potential customers
easily. Important information of the tourism destination can be properly given by visual brochure
which help to increase sale of tourism packages. In addition to this, video brochure also designed
to promote the purpose of incorporating social media. In this, company can use Facebook, social
sites and many more things. Hence, all this tools integrated which help to conveying important
information to customers regarding services which assist to promote the business (Schmidt,
Thoroe and Schumann, 2013).
P 3.3 Evaluate the non-traditional methods of distribution that can be used to sell holiday
packages
Brochures is an effective medium to sell the tour packages which was designed by tour-
operator of Thomas cook group. In recent time, system of design is changed which develop
brochure in systematic manner. Now brochure is highly technological oriented which help to sell
the holiday packages easily (Zhu, Mukhopadhyay and Kurata, 2012). In this context, below are
the different methods which would be help to sell holiday packages from the company: Online marketing: In order to achieve objectives of the tourism business, Thomas cook
group can use online marketing. It can be done through various ways such as social sites,
Facebook, etc. In respect to this, every customers easily understand different types of
services which is given by the business to them (Lugosi, Janta and Watson, 2012). Direct sales: In terms of direct sales, Thomas cook group can sale their products and
services to customers through their agents. In this context, they can determine various
agents and sales people for their organization who deal with customers directly. Thus,

cited firm can achieve their objectives easily through operating operations in different
parts of the nation. Telephone sales: Some times customers cannot able directly contact with organization. At
that time they can access services directly (Tricoire, Graf and Gutjahr, 2012). In this
situation, Thomas cook group can serve their services with telephone. In this context,
some people handle customers on telephone and they book online and offline services for
the customers.
 Street marketing: Thomas cook group can also use street marketing. In this term, they can
make banners and door to door marketing for holiday packages to attract potential and
existing customers. In this, organization have high cost but they can contact directly with
customers (Busby and Huang, 2012).
TASK 4
P 4.1 Analysis emerging trends in UK and set agenda for future direction through various
strategies
In the tour operating system, there are various elements considered which help to make
profits high in every businesses. In respect to this, large number of decisions and plans are
needed to take tour operator in day to day activities. Thus, strategies need to be taken by tour of
Thomas cook group to target the customers of different places. In this context, vital plan for
adopting strategies can be taken as follows: Discount pricing strategy: Pricing is important aspect to every business which promote
to the tourism enterprise (Zhu, Mukhopadhyay and Kurata, 2012). In this context, tour
operator of Thomas cook group able to provide high discounting to customers in their
services. Hence, it will be helpful to attract potential customers and achieve competitive
advantage in the marketplace. Segmentation, targeting and positioning: This is another way, through tour-operator can
make their decisions for future aspects. In addition to this, final decisions would be taken
by tour-operator regarding analysing competitive advantages. This decisions made by the
cited firm after reviewing situation of important aspects such as pricing, promotion and
place. Further, it will be demonstrate through STP strategy (Loch, Van Der Heyden and
Escalle, 2013).. In this, company maker segmentation, targeting and positioning for their
services in systematic manner.

 Creative promotion strategy: The creative strategy help to tour-creative of Thomas cook
group to promote their holiday packages in various parts of the nation. In respect to this,
tour-operator determine their services through promotion and they use various tools
which are requires for promotion. Additionally, they use creative promotion techniques
such as social media and other validate aspects (Xing, Wilamowska‐Korsak and Zhang,
2013). Hence, number of various customers gain by the company when they are use
effective methods for promotion strategy.
 Season aspect: There are different types of season which associate with sales of the
organization. In addition to this, Thomas cook group has variety of pricing strategies
through they can make decisions regarding peak season for selling their packages (Simar
and Wilson, 2015).
P 4.2 Comparison between different tactics decisions that can be taken by Thomas cook group
Destinations which can be taken by the tour-operator of Thomas cook group handle day
to day activities which are related with designing and selling tour packages. In this term, they can
take decisions regarding actions which firm need to be taken at the workplace. In this context,
tactical decisions are very important to ensure smooth functioning of the enterprise. In respect to
this, few major decisions made by tour operators for proper functioning in different part of the
nation (Thorogood and Crichton, 2014). In this, tour-operator can take function regarding
accommodation and maintain tie up with several stakeholders who are part of the entire
enterprise. In this context, they are planning to take tactical decisions regarding travel packages
which are needed by customers.
Other tactical decisions that needed by the tour operator is regarding services which they
offer to customers. In this context, company make decisions which are very important to operate
function in personal aspect and business as well. In this context, organization conducting
meeting with several services providers, organizing accommodation and maintain tie up with
several stakeholders. It can be depend on customers catered and pricing aspect which would be
make tactical decision for the tour operators (Zhu, Mukhopadhyay and Kurata, 2012).
Consideration in consumer experience is taken by tour operator for the packages
regarding tactical decisions making. In this context, Thomas cook group take feedback from
various customers. Hence, they use tools and techniques which would be used by tour operators
for the purpose of understanding consumer experience regarding packages. In addition to this,

data will be collected by them to demonstrate satisfaction level the customers. As results, tour-
operator easily identify problem which is associated with tour packages (Gong, 2015). Hence,
they can solve it and promote again to the workplace.
CONCLUSION
The present report helped to understand about various aspects regarding operation of tour
management. In this context, report analysis the effects of current and recent trends development
on tour operator industry. In this context, report find technological development through E-
commerce, enhancement in spending power and marketing in tourism sector. Furthermore, it
included assessment of the stages and time-scale which in involved in developing packages. It
could be done through, examination of the new destination, conducting market research,
negotiating and tour development. In addition to this, different types of tour operators use
different methods for attainment to offer holiday packages. In respect to this, they can use fixed
contract and sale only contract. From the above aspect, fixed contract is the best method for cited
firm. Along with this, report also covered strategic decisions which made by different types of
tour operators. In this context, organization can select discount pricing strategy, STP, seasonal
aspect and promotional strategy.

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Online
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<https://www.thomascookgroup.com/about-us/>. [Accesses on 15th November 2016].
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