HND Hospitality: Tour Operation Management Task - Pricing and Stages

This report focuses on tour operation management, specifically addressing the creation and pricing of holiday packages within the context of a hospitality setting, using Marriott as a case study. The introduction highlights the importance of designing outstanding packages to fulfill customer desires. The report then delves into the stages involved in developing holidays, including market research, planning, contracting, costing, and post-tour management, with a focus on efficiency and financial considerations. It outlines two primary methods of contracting: fixed and ad-hoc contracts, providing examples of how Marriott utilizes these methods. The report then details the calculation of a selling price for a sample educational trip, including costs for accommodation, transportation, and tour guides, along with a profit margin calculation. References are provided for further reading. The report is designed to provide an understanding of the various aspects of tour operation management, from initial planning to final pricing and execution.

Tour Operation Management
Task- 2

Cover content
• Introduction
• Stages and timescales involved in developing holidays
• Methods of contracting
• Calculate selling price
• Conclusion
• References

Introduction
Tour operation management is all about designing an outstanding package for
various travellers in order fulfil customer’s desires. Marriott multinational is
an American diversified hospitality organization which manages and
franchises a wide portfolio of hotels. Therefore, this presentation is going to
highlight influence of various trends which is emerging at marketplace on tour
operators as well various methods of developing their holiday packages.

Stages involved in developing
holidays
Holidays are planted for more and more
enjoyment in which planning is first or
foremost process for every activity which
helps in designing overall framework and
supports in making corrective decision by
analysing available options. Therefore,
while enhancing holiday package some of
the necessary factors needs to be considered
for increasing the efficiency and certainty.

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Thus, steps which needs to be taken
for ensuring the effectiveness of
developing holidays are discussed as
follows-
•Market research
•Planning and scheduling
•Contracting
•Costing the holiday
 Financial evaluation and
pricing
 Designing brochure
 Advertising
 Operation and execution
 Post tour management

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3 days 2 Night
(Educational Trip- 999 pound)
With all inclusive……
42 seated A.C Coach for 40 students
Water facility in Bus
All time Snacks
Packed meals while travelling
Stay at Marriott hotel Edinburgh
•Welcome drinks while entering
•24 hours Hot and cold water in rooms
•Housekeeping services
•Laundry services for students
•Conduct educational seminars for students in banquet hall of hotel
•Breakfast, lunch and dinner
•and all the accommodations services
Additional parking charges.

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Methods of contracting
Marriott hotel is well established organization due to which they were
considering necessary elements before getting involved in distinct type of
contracts. However, there are mostly two types of methods are identified for
contracting which is discussed as follows-
•Fixed Contract
•Ad-hoc-

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Ad-hoc – In this contract, expense of planning is totally depend upon
activities that were going to incurred throughout the whole trip which might
for an hour, a day or week. Marriott made this type of contracts by
considering trips and consumer demands.

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Fixed contract- As per this element, relationship between consumers and tour
operator existed for certain time period such as; group of students going for
education trip for almost 3 days and 2 night. It means, group of students are
having a fixed contract with Marriott just for specific time period and after
completion of time that agreements will automatically get expired. However,
this type of contract help an organization in gaining advantages in off season
also.

Calculate selling price of holiday
Selling expense is a part of marketing department which is faced by an
organization during distribution of their products and services in distinct
market place for generating large amount of revenue.
For example- European students make a plan for enjoying the trip
from London to Brussels so that they can enhance their knowledge by
attending education tour. Therefore, for that purpose they wanted to make a
budget for around 5 nights that covers all the significant accommodation.

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Details Price(in £)
Accommodation cost 9000
Transportation cost 11200
Charges of tour guide 945
Total cost 21145
Add: Profit margin @ 33% 6977.8
Sale price 28122.5