Tour Operation Management: A Comprehensive Analysis of Trends, Strategies, and Tactical Decisions

This assignment delves into the intricate world of tour operation management, examining the impact of current trends and developments on the industry. It explores the stages and timescales involved in developing holiday packages, evaluates different contracting methods for various components, and calculates the selling price of a holiday. The assignment also analyzes the planning decisions behind brochure design, assesses the suitability of alternative marketing strategies, and examines the effectiveness of different distribution methods for selling holiday packages. Finally, it evaluates the strategic and tactical decisions made by different types of tour operators, highlighting the importance of pricing, branding, and positioning in a competitive market.

TOUR OPERATION MANAGEMENT
NAME OF THE STUDENT
NAME OF THE UNIVERSITY
STUDENT’S ID

Contents
Introduction................................................................................................................................3
Task 1.........................................................................................................................................3
P1.1 Analyze the effects of current and recent trends and developments on the tour operators
industry.......................................................................................................................................3
P 2.1 Assess the stages and timescales involved in developing holidays..................................4
P 2.2 Evaluate the suitability of different methods of contracting for different components of
the holiday..................................................................................................................................5
2.3 Calculate the selling price of a holiday................................................................................5
P 3.1 Evaluate the planning decisions taken for the design of a selected brochure...................6
P 3.2 Assess the suitability of alternatives to a traditional brochure for different types of tour
operator......................................................................................................................................6
3.3 Suitability of different methods of distribution used to sell a holiday for different
types of tour operator and recommend the most appropriate for a luxury tour package.. 7
Task 4.........................................................................................................................................8
4.1 Evaluate the strategic decisions made by different types of tour operator..........................8
4.2 Compare the tactical decisions that could be taken by a selected tour operator in different
situations..................................................................................................................................10
Conclusion................................................................................................................................10
References................................................................................................................................12

Introduction
In the current globalization era, tourism and travel industry exhibits huge opportunities,
advantages and scope which may get mitigated through travel management operational
activities. This assignment provides a scope of studying in detail regarding the several aspects
of tour and travel operations in the tourism and travel industry where decision making and
management through strategies shall be adopted. Here the several products aspects are
explained which mainly includes several developments in management made recently and
organizational tour packages offered. There are several aspects outlined for developing
products brochures and also provision of customization facilities regarding the offered
products that helps increasing channel distribution of this industry. Trailfinders Ltd. is a
tourism and travel operational organization that provides services with full effectiveness and
the assignment explains the management of its operations as well.
Task 1
P1.1 Analyze the effects of current and recent trends and developments on the tour
operators industry.
The tour manager covers both the tour as well as the travel industry in order to execute these
holidays. The tourism management industry is rapidly growing and therefore there is an
increase in demand of the services and the products of the tourist industry. Tourism packages
and services related to these are taken to be the products of this tour industry. Tour
management industry is rapidly growing into the retail management industry where the travel
agents works in order to sell these products/packages of the travel management industry just
like the other sectors (Jones, 2018). The industry has revised themselves and emerged with
many trends that are new to this industry and that have already made a mark in the growth of
this tour industry. Therefore the developments and the recent trends are as follows-
• Increment in the expendable income of the economy- The economy of a country
makes a mark in the growth of the industries. The expendable incomes of any person is a part
of the income that is involved the process of saving soon after any application of the
monetary system. Increment in the expendable income directs to the raising standards of life
of the community (Daniels et al., 2018). Tour management industries are developing many
opportunities for employment and in the same way it has increased the revenue for the
country. Therefore ultimately this industry makes an impact on the country’s GDP.

• FDI AND GLOBALIZATION- The globalization has eradicated the boundaries for
different countries. This is influencing for the travel and tour industry, they can expand the
reach of these industries worldwide. Investments directly done by Foreign has helped to
increase the entrance of the countries through the overseas retail (Chen et al., 2018). This
generates the capital flow into the country resulting in increased opportunities of growth and
the tour management operators provides them the support.
P 2.1 Assess the stages and timescales involved in developing holidays.
The stages those are involved for developing a holiday package are as follows-
• Research- The research process includes the identification of political, social, climatic
and economic factors and these affects the travel/tour management industry and a research is
conducted regarding the environmental conditions in a particular country to assess how these
factors influences on the holidays. The evaluation and identification of important landing
places in countries for sightseeing values for students, while identifying the hotels that
provides meals and accommodation which will be appreciated and enjoyed by the tourists
mainly including the restaurants and the hotels located in the desired destination and this is
also counted in this stage (Maguire, 2018).
• Development of tour itinerary– The stage includes this kind of determination of the
summary of the tour programs that includes those points of destinations and origin along the
duration of continuity, the routes those are to be completed, transportation facility and
accommodation, sightseeing of the locations etc. According to this an itinerary tourism
management package which is to be improved in accordance to the interests of the tourists
and recommendations and suggestions can be taken out from them.
• Negotiation with vendors/suppliers – This kind of stage is included in making the
contracts and arrangements with those suppliers of different services that are related to the
tour management process and the suppliers for the delivering of goods as well as other stuffs
that are required for any of the holiday packages (Holland and Leslie, 2018). The conditions
and terms for the arrangements and contracts, here are agreed and discussed by both parties to
avoid vagueness.
• Packages containing holidays- This kind of stage includes determination and
calculation of the costs for the holiday packages that includes the overall costs of all the
facilities that is to be provided by operator of the tour management, travel fares, charges of

accommodation and also the costs of meals and also the other expenses and charges that are
made during tourism management process that has a duration of five days. The costing of the
tour management should be based on strategies of cost pricing or strategies base on
marketing.
P 2.2 Evaluate the suitability of different methods of contracting for different
components of the holiday
• There are various components of the holidays that explains the various process of
contraction that can be used in reference to them, here as it follow
• Sheltering- This is also a suitable process of contraction for the facilities of
accommodation that is to be given to the visitors for the upcoming days and the nights in
chosen destination that might be some variable contracts with payments basis on the staying
back specially during the days and the nights as the tourists would travel the various locations
in their desired countries therefore such places of staying back would not be the same while
the journey towards the fixed destination (Holland and Leslie, 2018). Separate contracts are
needed to be made with different cities of the country’s hotels so that it can be planned
accordingly for the sightseeing.
• Fooding- The process of fixed contract is not desirable for contract with the vendors
for the supply of the food accordingly to the taste of tourists/visitors in various locations that
would be visited during tour management process and since food will be needed at various
locations therefore contract for the supply of the food would be with various suppliers in
various cities those are supposed to be paid a visit.
• Tourism industry provides guides in its management– This kind of suitable processes
of contracts with the tourism guide has the fixed contract process such that below this method
the guide would be travelling with the visitors/tourists to different locations in various cities
and exploring the scenarios and sights there (Lucrezi et al., 2018). An allocated payment that
is fixed could be paid to the guide due to all the services as a huge sum amount, no matter
how many number of destinations are visited by the visitors/tourists. Tour guides becomes an
integral and vital part of tourism management process industry to be set up.

2.3 Calculate the selling price of a holiday
The twin room is provided for 90 euros. The price 45-seater luxury coach is £7,400. The cost
of a local tour guide is €920 and 30% mark up is added. The spot exchange rate is €1.15 per
£1. The selling price is 9506.95.
P 3.1 Evaluate the planning decisions taken for the design of a selected brochure
The decisions of planning for designing a brochure to enjoy an venturesome holiday
packages that will include a deciding making while the information needed be inclusive into
the brochure that would be motivating and also convincing to the consumers for example the
young boys and girls and the college students who undergoes the tour managing program in
accordance to their needs and requirements for enjoying the venturesome holiday trip. These
information those are to be included into the brochure which includes the name of the travel
and tour agency that is based upon the western countries of the world and the modes of
transportation for the tours, detailed information about the destination, the time duration
about the tour, the prices, the services and the facilities that are to be provided, for example
the booking conditions, the insurance cover, the documentation required, the type of the
accommodation and the meals, the extra charges about the health hazards, the risk of the
adventures, materials that are to be handled by the person while going onto the adventurous
trip etc (Perakis and Rosenfield, 2018). Simultaneously apart from the costs including in the
designing of the brochures for the tourism, selection of suppliers for designing of the
brochures, the type and format of the brochures which will be attracting to the young students
and generations are also to be considered while making the decision about the plans for the
designing of the tourism brochure.
P 3.2 Assess the suitability of alternatives to a traditional brochure for different types of
tour operator
The brochure that is traditional internally and in outlook, has a vital part in the tourism
industry that has to provide the information regarding the tour management manager and
tourism programs to consumers of this service in the market area. A tourism brochure plays
an important role towards the effective marketing of tourism and this increases the
probabilities of selling a tour out to a huge number of positive clients and therefore attractive
and effective in every sense. Although these traditional brochures helps in achieving the
agenda while designing a brochure in innovative and new techniques and methods that is
more attention grabbing and gains attention of the large portion of people as in comparison to

these traditional brochures (Vongsaroj, 2018). The suitability of traditional brochures
according to different kinds of tour manager are as follows:
• Inbound operator – According to the inbound tour managers those who sells these
kind of holiday package to the foreign clients/tourists can’t sell their package using the
traditional brochures since these foreign clients/tourists are authentically updated and those
really understands the new technical designed brochures in the better sense.
• Outbound operators - These outbound tour managers those promoting multi-national
tourism cannot function with old traditionally designed brochures since the purpose and
information that are to be given would be hard to communicate by the traditional brochures
(Armenski et al., 2018).
• Domestic tour managers - According to these domestic tour managers these
traditional brochures could be suiting to that extent where they don’t involve the fresh
technical developments and digital process into their communications and operations.
• Ground operators- The ground managers does the handling of agencies those are
traditionally connected to the brochure and don’t serve these purposes since they are in
contact with the large companies, simultaneously the tour managers those are technically in
advancement and doesn’t appreciates the traditional brochures and therefore the purposes of
the tour manager is not served (Chiarini et al., 2018).
3.3 Suitability of different methods of distribution used to sell a holiday for
different types of tour operator and recommend the most appropriate for a luxury
tour package.
There are various types of distribution processes used as holiday sales packages for
venturesome holiday by various types of tourism operators that includes traditional
brochures, the online marketing, the telephonic sales, the call centres, the direct sales etc.
These suitability of these processes of distribution according to various types of tour
managers are as follows:
• Inbound Managers- These tourism managers enables the suitable process of
distribution that are online sales/marketing and also online promotions through brochure
since these target clients of the markets of these tourism managers are the foreign
clients/tourists those seeks the service of the tourism manager having access around the world
(Holland and Leslie, 2018).

• Outbound operators – This kind of suitable processes of distribution to this kinds of
tour managers is the modern and online sales processes that includes communication and
information technologies and the internet use for promoting the tourism programs and these
tourism managers deals with the multinational tours.
• Domestic tour managers - These tour managers could also adopt traditionally
connected brochures and also the direct sales process of managing of holiday package since
they targets the consumer of the local market area or domestic market area. Moreover from
the other processes are even suitable for this type of tourism managers since in present days
the age of every person has internet presence therefore the online sales/marketing and the
promotions helps to provide them with more relevant information about the organization and
the tourism programs (Chen et al., 2018). Thus these methods also includes technologies such
as the telephone calls and the direct sales.
• Ground operators – This kind of managers serves as the agents and therefore these
kind of suitable processes of distribution for this type of managers it is the modern and new
process for example as online promotion and marketing, the online sales of holiday plans and
tourism programs as they co-ordinates amongst the large tour managers and the foreign tour
organizations. Therefore they could use the processes for example internet sales and uses of
the call centers.
Task 4
4.1 Evaluate the strategic decisions made by different types of tour operator
STRATEGICAL AND TACTICAL DECISION TAKEN BY TOUR OPERATORS
Strategically decisions
1. Pricing Decision
Pricing is an important aspect and instrument in sustainability and growth of an organization,
in particular, travel and tour that is influenced highly through strong competition in the
market. For every organizational existence, profit is the key requirement. The profit earning
ability complete depends on the decision making regarding the decisions about pricing. In
addition to competition, various additional factors also influenced the pricing determination
that includes a firm’s operational social environment. Many other factors also play certain
roles which includes legal, economic and political factors.

Pricing determination is decision making after assembling suggestions from distinguished
management levels. It acts as a key element in decision making regarding the organizational
strategies and is influenced further by several factors (Buhalis and Leung, 2018). These
factors are categorised into two main categories:
External Factors for pricing decision making:
 Organizational brand value
 Economic conditions of the market
 Packages or services demands
 Government rules, regulations and policies
 Internal Factors for pricing decision making
 Tour and travel organizational goals and objectives
 Service cost
 Distinguished packages and services
Furthermore, certain organizational objectives and goals are required to be achieved for the
price determination of the specific service. The main objective is profit increasing and
achievement of market stability for balancing and maintaining the organizational prices. In
general, if Trailfinders’ work processes are too flexible and sensitive to the market then it
may result in changing patterns of packages costs as exhibited by the organization. It is the
organization’s responsibility of reducing vulnerability to threats implemented by price wars
due to huge market competition. Changes in pricing determination can also be observed in
several cases, where it is entirely consumer centric decision based on the consumer’s ability
to pay for the packages offered.
Trailfinder The demand or volume of the services offered by the organization affects the
decision making abilities regarding strategies (Raziei et al., 2018). There are two main
scenarios on the basis of volume of demands in a series through which decisions are to be
taken for strategizing.
Contraction of Market- The management of the organization needs to cut down on certain
services for reducing the unprofitable operations in the market.
Expansion of market- This mainly lays a foundation for diversifying the existing product.
Organization like Trailfinders for achieving growth requires product range expansion.
3. Branding and Positioning Image

An Organizational profile branding is the organization’s market identification. In general, this
is the organization’s association with symbol, name or company logo design etc. More than
just a symbol or identifying mark, it is related to satisfying the consumer’s requirements and
needs with gaining trust in values of the organization through quality delivered to the
customers. To sum up, branding or positioning image is the reputation earned by the
organization that helps it to capture and control a greater area of the market (Holland and
Leslie, 2018). This is mainly recognized through brand mark, brand name, trademark etc.
4.2 Compare the tactical decisions that could be taken by a selected tour operator in
different situations.
Tactical Decisions: These decisions are of medium and short term basis which are
implemented for quicker responses and immediate effects. The generalised responses to
immediate issues and problems which may include issues in the market are listed below:
Market competition: If the market exhibits competitive nature because of the entry of new
participants or prevailing rivals in this particular sector of travels and tour market gets
affected to a huge level, then the organization needs to opt out certain policies of
liberalization and to maintain the quality of its services intact (Edmond and Elizabeth, 2018).
For maintaining the organizational existence viability of a long term basis there should be a
certain amount of reduction of the costs of capital employed for working which can be
achieved through higher operational levels.
Price wars: Price wars and a substantial decrement of prices can a result of high competitive
nature of the market, but this price scenario of an organization may not prove to be feasible
for survival in the long term. Higher competitive involvements play as an important factor in
case of organizational sustainability (Lin et al., 2018). An organization like Trailfinders can
set their prices of the offered services lower than or equal to the prices set by its competitors,
yet the organization must not compromise or reconsider the quality of the offered services.
There are certain external factors such as consolidations tactical marketing, yield
management, fluid pricing etc.
These aforementioned factors are required for medium and short term decision making
abilities of any organization that has a longevity and carrying on concern effect.
Discounts implemented on services for reaching at least the breakeven point and then set eye
on profit earning abilities in the market in the off season (Rodríguez-Espíndola et al., 2018).

During the slog times the organizations wait for holding on to certain occupancies and sales
conducted in the last days for earning more revenues.
Conclusion
This assignment is a study conducted in detail regarding the several aspects which are related
to an efficient and effective management of operations of a tour and travel organization.
Certain developmental processes in recent times are being identified in this sector that can be
impactful for the management effectiveness economically in an aggregation. Here several
aspects in relation to strategic decision making and management is also defined in the
concerned tour and travel industry of operations. Hence, in the end, this assignment can reach
a conclusion through a statement that the travel and tour operations industry is evolving at a
much faster rate with the help of technological advancement and betterment of facilities. This
is a rapidly evolving sector with increasing numbers of participants on a daily basis.

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