Tour Operation Management: A Comprehensive Guide to Developing Successful Holiday Packages

Tour Operation Management
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Table of Contents
Introduction...................................................................................................................3
LO 1: Task 1.................................................................................................................4
Examine the recent trends and developments in the tour operations industry with a
brief analysis of the type of holidays taken, the emerging popular destination and the
effects of current and recent trends and developments on the tour operators industry.
(P1.1, M1).....................................................................................................................4
LO2: Task 2..................................................................................................................8
Evaluate the suitability of different methods of contracting the various components of
the holiday for different types of tour operators when developing holidays. (P2.1;
P2.2)...........................................................................................................................11
Carryout the cost of the components of the package and calculate the selling price of
your holidays (P2.3)....................................................................................................12
Design and plan a brochure and evaluate the process and planning decisions for the
proposed brochure, as well as assess the suitability of alternative methods (non-
traditional) of communication and promotion for different types of tour operator.
(P3.1; P3.2).................................................................................................................13
Analyse and evaluate the non-traditional methods of distribution that can be used to
sell holiday packages for different types of tour operator (P3.3)................................16
Using the findings from task 1 in assignment 1, analyse the emerging trends in the
UK tour operations sector and evaluate how the various tour operators (competitors)
responded to these trends (P4.1)...............................................................................17
Briefly examine the differences between tactical and strategic decisions, identify and
compare some of the tactical decisions that could have taken by your chosen tour
operator in different situations....................................................................................18
Conclusion..................................................................................................................20
Reference list..............................................................................................................21
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Introduction
Travel industry is growing at a rapid rate and with the advancement in technology the
competition in this sector has significantly increased. The tour operators help in
contributing towards the economy of the country. This assignment will explore about
the current trends of the tourism sector and the impact of the trends on the business
of the tour operators. The stages through which a successful tour package is
developed has been analysed in an efficient manner. There are a number of
contracting methods that are used by tour operator fin order to deal with their
consumers; the contracting methods have been discussed in a detailed manner. This
project will help in understanding the methods that are followed by tour operators in
order to create an attractive brochure that provide vital information about their
services. The strategies that are used by the tour operators in order to sustain in
increasing competitive business environment has been mentioned.
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LO 1: Task 1
Examine the recent trends and developments in the tour operations industry
with a brief analysis of the type of holidays taken, the emerging popular
destination and the effects of current and recent trends and developments on
the tour operators industry. (P1.1, M1)
Tourism industry is considered as one of the fastest growing industries that helps in
the growth and development of the country’s economical conditions. Now days it can
be observed that most of the traveller prefer to visit destinations that can provide
them with rich cultural heritage sites, adventurous wildlife scenarios and beautiful
beaches so that they can have a relaxing time. As per the preferences of the visitors
Africa, London, Spain, France are some of the most famous destinations that are
gaining popularity among the tourists due to their excellent tour operating industry
that provides satisfactory services.
Figure 1: View of London
(Source: visitlondon.com, 2018)
The tour operators are required to conduct market research to understand the
current trends so that they are able to provide their customers with better services.
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Some of the most common current trends and development within the tourism
industry are:
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Technological Advancement
Technological advancements are necessary for the growth of tourism sector; it helps
in increasing the interaction between the visitors and the tour providers (Xiang et al.,
2015). The communication, reservation, visitor service systems are improved with
the help of latest technologies. Currently most of the leading tour operators are
providing all the necessary information such as tour package prices, accommodation
services, destinations provided and more on their website so that visitors are able to
get basic ideas about their services. Customers are able to book their services with
the help of internet through the e-commerce websites in an effortless manner.
Dynamic Packaging
Dynamic packaging is one of the most beneficial advancement for online travel and
tourism operators. Most of the tour operators are making use of this application so
that they are able to attract a huge visitor number towards their firm.
Figure 1: Dynamic Packaging
(Source: Papatheodorou, 2016)
With the help of Dynamic packaging, the travellers are able to avail various services
concerning their travel package at a single search. The visitors can use the internet
in order to arrange their trip. This application allows the visitors to book their
accommodations, airline and all necessary products that will be required for the tour
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by themselves. Dynamic packaging is considered as a cheaper medium as
compared to packages that are booked through tour operators.
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LO2: Task 2
Assess the stages and timescales in developing holiday packages and prepare
an itinerary for a combined heritage, wildlife and beach holiday and develop a
package in stages. (M2)
In order to develop a suitable holiday package planning is one of the most critical
process that comprises of a number of stages. The Different stages that are involved
in designing a tour to Africa including heritage, wildlife ns beach holiday have been
discussed below:
Market Research
It is the most significant step of the planning process. Market research helps in
analyzing factors such as political, economical, social, climate of a destination that
the tour operator is planning to include in the tour package (Mooi et al., 2018).
Market research allows the tour operator to gain knowledge about the famous tourist
spots that can be offered in the tour.
Planning and Scheduling
In this stage, the tour operator plans the schedule of the tour that, the tour operator
needs to schedule the period of the whole tour and the number of days that the
tourist will be spending while visiting various destination. The number of days for a
destination, hours that will be required for visiting a particular tourist spot and more is
scheduled in this stage.
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Figure 1: Steps involved in developing holiday package
(Source: Szopiński, 2017)
Negotiating With the Suppliers
The tour operators are required to find suppliers that provide quality goods and
services, so that the tour of their visitors can be satisfactory. They need to negotiate
with the suppliers so that accommodation, food, transportation and other such
facilities for the visitors could be arranged at reasonable price range.
Pricing the Holiday Package
After arranging the tour services and products the operators are required to finalize a
price for the entire tour package so that they can start promoting and selling the
package in order to generate revenue.
Making the Brochure
After all the above steps have been completed, the tour operators are required to
create attractive brochure with adequate information about the tour and services
(Luo and Huang, 2015). Brochure will help the tour operators in attracting potential
visitors towards their firm and assist them in increasing their sale.
Execution of the Program
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Execution is considered as the mot crucial part of the planning process. The
management o the organizations are required to design plan without any service
failure or any unexpected misconduct. The entire success of the tour designed by
the tour operators is dependent on successful execution of the plan. The success of
the tour will enhance the brand image of the tour operators.
Review and Feedback
After the completion of the tour the operators collect feedback from their visitors so
that they can gain information about their trip and improve their services in order to
attract, more tourist.
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Evaluate the suitability of different methods of contracting the various
components of the holiday for different types of tour operators when
developing holidays. (P2.1; P2.2)
Trailfinders needs to identify appropriate methods in order to handle the entire tour
package effectively. Trailfinders can utilize several methods in order to develop the
overall management of the tour program.
Contract Fixing: Fixing of contract is one of the main components of Tour
operations, Trailfinders require to communicate with the hotels and guesthouses to
book rooms for 40 people. The tour-operating agency requires dealing with several
transportation providers to conduct the trip. Thus, to fix the contracts with hotels and
transport service providers, the tour-operating agency must take a certain amount of
money from the customers in advance.
Distribution: In this section, Trailfinders requires to distribute resources for different
elements of the tour packages as per the trends in present market and experience of
previous tours of the organization.
Ad-hoc contract: According to this contract, the tour-operating agency has an extra
opportunity to reserve added accommodation for the customers. Ad-hoc contracts
make it easy for the management department of the tour-operating agency to
commend the contract in case of emergency.
Various Tour-operating agencies
In this framework, operators refer to various kinds of business associates and
partners of travel and tourism companies. The operator makes it easy for Trailfinders
to develop a firm connection with their clients. Different types of tour operators are
mentioned below:
Inbound Operators: This kind of operators provides the clients with exclusive
services consisting of entertainment, currency exchange, and several related
services. Generally, Inbound operators deals with travellers directly and it shares a
considerable amount of profit to the chief tour-operating agency (Buultjens et al.,
2016).
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Outbound Operators: This kind of operators usually provides exclusive tour
packages that make it easy for the tour-operating agency to enhance their brand
image among customers. An outbound operator gives a number of services and
conveniences in the tour packages in order to catch the attention of the customers
and other people by adding up extra luxurious services.
Ground Operators: The function of ground operator is to contact the customers of
the tour-operating agencies in order to promote their own company and increase
their profit margins. The operational fields in which ground operators operate are
sightseeing, local accommodation arrangements, and car rental services.
Domestic Operators: The operations that are carried out by domestic operators are
constrained to a specific area or region (Duke and Persia, 2015). According to the
scenario, ground operators associated with Trailfinders would be providing their
services within the Asian region Srilanka.
Carryout the cost of the components of the package and calculate the selling
price of your holidays (P2.3)
Exclusive and special rate has been proposed by the hotel of Srilanka for the group
of 40 people. The hotel charged 90 Euros per person with breakfast. The price
charged by the 45-seater luxury coach is 7,400 Euros and it consists of one tour
manager, two drivers, fuel, and other service related taxes. The price charged by the
local tour guide is 920 Euros for the overall tour duration. Trailfinders sums a mark-
up of approximately 30%. The rate of spot exchange is 1.15 pound per one Euro.
Number of
peoples
Room
rent/people
Transportation
services
Tour Guides Mark up
by
Trailfinder
s
40 90 £
7,400.00
£
920.00
30%
In Euros In Pound Sub Total
Peoples 40
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Room
rent/people
€
90.00
£
78.25
£
3,130.00
Transportation
services
£
7,400.00
£
7,400.00
Tour Guides £ 920.00 £
920.00
Rate of
exchange
0.998043103
(GBP 1/Euro
1.15)
Total cost £ 11,450.00
Mark up set by
Trailfinders
30 %
Tour package
selling price
£ 14,885.00
Total cost per
people
£ 372.12
Table 1: Selling price of the tour packages
Design and plan a brochure and evaluate the process and planning decisions
for the proposed brochure, as well as assess the suitability of alternative
methods (non-traditional) of communication and promotion for different types
of tour operator. (P3.1; P3.2)
A brochure is a leaflet that consists of the information and an inclusive summary of
holiday tour package offered by the tour agency. Brochure is very vital as it catches
the attention of the customers and encourages them to purchase their services, if
designed well. Brochures must include all the information regarding the destination
of the trip like number of days for the journey, tour sites incorporated in the tour
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package etc. Designing brochures for the holiday tour packages require good
perceptive of psychology of the customers regarding their needs and wants. The
brochures can have an effect on the customers and create a nice impression at the
very first sight. Things such as colours, patterns, and attractive images of the
destination must be added in the brochure to make it dynamic and eye catching.
Designing a dynamic and impressive brochure reflects the brand image of the tour-
operating agency and reassures the people and existing clients regarding the
reliability and strength of the organization in the market (Lester and Scarles, 2016).
Cost Tour operators require spending on the
creation and distribution of the brochure.
Format deciding Appropriate theme requires to be selected
for designing the brochure effectively. The
font used in the brochure must be easily
understandable and readable. The paper
must hold up the theme or the message
conveyed the brochure.
Budget planning and targeted market The entire budget of creating, designing, and
distributing the brochure requires to be done
within the value decided. The tour operator
requires distributing it as per their targeted
customers segment (Choi, 2016).
Fixing of print specifications The tour-operating agency requires
determining the number of pages the
brochure will contain, its quality of print and
the quantity or the number of brochures that
are going to be printed.
Timeframe and production stages The tour operating company requires
deciding and planning when the company
must produce the brochures and distribute it.
During the season of holiday, tour-operating
companies generally come up with new
plans and thus needs to endorse it.
Table 2: plan of a brochure
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holiday tour packages require good perceptive of psychology of the customers regarding their needs and wants. The brochures can have an efagency and reassures the people and existing clients regarding the reliability and strength of the organization in the market The tour opoting and advertising the holiday tour packages of the company. It also helps the company to reach a larger number of audiences at a very sho
s and services on billboards and walls, in this way the company can promote and advertise their products and services. Although, it is quite cos
oting the products and services of the company. E-brochure must incorporate Components such as Moving images, eye-catching graphics and
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There are several alternatives that can be utilized instead of traditional brochure, that
can serve the same purpose. Some of these are cheaper alternatives whereas some
are quite expensive. The alternatives that serve with the same purpose rather than
brochures are:
Online marketing: This is one of the most efficient ways of promoting and
advertising the holiday tour packages of the company. It also helps the company to
reach a larger number of audiences at a very short period. At present people are
more oriented towards the social media sites so it is serves as a platform for the
companies to endorse their offers online.
Outside banners: Banners of the company display their products and services on
billboards and walls, in this way the company can promote and advertise their
products and services. Although, it is quite costly it provides the company with high
amount of awareness among the customers.
E-brochure: This exceptional alternative can be utilized for promoting the products
and services of the company. E-brochure must incorporate Components such as
Moving images, eye-catching graphics and several related elements in order to
attract the customers and other people (Yadav et al., 2017).
Analyse and evaluate the non-traditional methods of distribution that can be
used to sell holiday packages for different types of tour operator (P3.3)
The measures that are involved in distributing the products and services involve
travel agents, suppliers, and customers. The special factors that must be considered
by the companies for the distribution of holiday packages are as follows:
Online Travel Agencies: This method of distribution provides improved sales and
profits via advertisement techniques such as generating value by paying per click on
travel and tour websites (Roger-Monzó et al., 2015).
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Social media and website: This method of distribution consists of promoting the
products and services with utilization of websites and social media sites. Features
such as images, graphics, and slides can be added to develop and design dynamic
e-brochures to appeal and catch the attention of the customers (Kiráľová and
Pavlíčeka, 2015).
Indirect distribution system: In this system, professional guidance is needed and
agents are engaged in this method of distribution. Wide range of various products
and services may be introduced using this system at a lower price.
Direct distribution system: This system is time efficient and offers huge profit to
the company, as no agents are involved in this system. It helps the company to
develop a bond with their clients and it helps in achieving long-term objectives ( Lee,
2014).
Using the findings from task 1 in assignment 1, analyse the emerging trends in
the UK tour operations sector and evaluate how the various tour operators
(competitors) responded to these trends (P4.1).
As per the findings from task one, it has been analyzed that Trailfinders utilize the
advanced technologies as it helps the company to grow effectively in the market.
Wide range of different tools and techniques are used by Trailfinders to promote and
advertise their products and services. Trailfinders must look forward to use the
advancing technologies to endorse their commodities, as it would help the company
to develop a strong brand image. Utilization of social media platforms makes it
possible for Trailfinders to reach out to a large number of audiences and increase
their popularity in the industry of travel and tourism sector. Advancing technologies
helps Trailfinders to create e-brochures for the promotion of services and products
online. Internet is one of most advancing and trending aspect at present and proper
utilization of websites and social media platforms would help the company to
increase its sales and profits (Baum et al., 2015).
From the task, it has been also observed that dynamic packaging is one of the most
emerging trends in the present scenario. Trailfinders must use the concept of
dynamic packaging for tour holidays. Dynamic packaging helps the company to
catch the attention of the customers and makes them interested in the tour
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packages. To create a dynamic packaging of tour holidays the company must
incorporate exclusive offers and special discounts on the tour packages.
Implementing the technique of dynamic tour packages will not only attract the
customers but also help the company to retain their existing customers as well as
gain new customers. It provides the customer with special services to the customers
at an affordable rate. The customers are able to participate in various kind events in
order to score credits and later use them to avail their offers and discounts. Dynamic
tour packaging used by Trailfinders is one of the biggest emerging trends in the
travel and tour sector of UK (Wang and Liao, 2015).
Briefly examine the differences between tactical and strategic decisions,
identify and compare some of the tactical decisions that could have taken by
your chosen tour operator in different situations.
The managers of the company are responsible for various kinds of decision in order
to promote and market the products and services of the company. The managers are
accountable to develop effective strategies and use clever tactics for better and
improved decision-making to increase the brand value of the company in travel and
tour industry. They are required to take up several decisions regarding the brand
equity, maintain good customer relations with the existing customers, and build up
relation with the new customers, conduct micro and macro analysis of the
environment, recognize the strength and dominance of the competitors in the market
and train the employees.
Strategic: strategic decision influence the overall decisions and functioning of the
company and affect the operations of the company. The strategic decisions compose
of setting the long term goals of the tour-operating company, mission of the
company, vision of the company. Developing strategic decisions require and involves
of numerous steps like the process of formulation, evaluation, selection and
execution in order to support the goals and objectives of the organization (Hagiu,
2014).
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Tactics: tactical decisions are the decisions that are made to implement corporate
strategies for increasing the sales and profits of the company. These decisions are
made for effective working of the regional branches of the company. Tactical
decisions are made to accomplish the short-term goals and objectives of the
companies. Tactical decisions are much more time efficient as compared to the
strategic decisions. Tactical decisions are the decisions that help the companies to
improve their day-to-day activities and operations (Staufenbiel et al., 2015).
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Conclusion
With the growth in the travel and tourism sector, the government of every nation and
tour operator agencies is trying to promote countries and enhance revenue
generation. Due to several macro and micro factors, the trends of the travel industry
has shifted from leisure and business travelling to adventure tourism, green tourism
with deployment of advanced technology as discussed in the assignment. The
assignment also briefs about the processes undertaken for planning a trip and
preparing a brochure by stating a definite timescale. The decision making process
has been discussed in details along with the methods used by tour operating
agencies to adapt the changes.
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