Tour Operation Management: Tour Planning & Pricing - Trailfinders Case

This assignment delves into tour operation management, focusing on various aspects such as recent developments in the travel and tourism industry, their impact on tour operators like Trailfinders, and the significance of adapting to new trends like online facilities and integrated communication systems. It covers the stages involved in tour planning, including market analysis, tour planning, settlements, cost calculation, marketing, execution, and feedback collection. Different types of tour contracts and operators are examined, along with a detailed estimation of selling price for a student trip. Furthermore, the assignment discusses decisions related to brochure design, alternative marketing strategies, and appropriate distribution methods. Finally, it evaluates strategic and tactical decisions made by tour operators in different situations, providing a comprehensive overview of tour operation management principles and practices.

TOUR OPERATION MANAGEMENT

Contents
INTRODUCTION................................................................................................................................2
Task 1...............................................................................................................................................3
IMPACT OF RECENT DEVELOPMENT IN TRAVEL AND TOURISM INDUSTRY................................3
Task 2...............................................................................................................................................5
2.1 REPORT..................................................................................................................................5
2.2 SUITABILITY OF DIFFERENT TYPES CONTRACTS WITH THE TOUR OPERATORS....................8
2.3 DIFFERENT TYPES OF TOUR OPERATORS...............................................................................9
2.3 ESTIMATION OF SELLING PRICE OF THE STUDENT TRIP......................................................10
Task 3.............................................................................................................................................11
3.1 DECISIONS RELATED TO PLANNING TAKEN WHILE DESIGNING A BROCHURE....................11
3.2 APPROPRIATENESS OF ALTERNATIVES TO BROCHURES......................................................13
3.3 APPROPRIATENESS OF VARIOUS METHODS OF DISTRIBUTION..............................................14
Task 4.............................................................................................................................................16
4.1 EVALUATION OF THE STRATEGIC DECISIONS MADE BY THE TOUR OPERATORS IN
DIFFERENT SITUATIONS.............................................................................................................16
4.2 EVALUATION OF THE TACTIC DECISIONS MADE BY THE TOUR OPERATORS IN DIFFERENT
SITUATIONS................................................................................................................................18
CONCLUSION.................................................................................................................................20
REFERENCES...................................................................................................................................21
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INTRODUCTION
This assignment is about tour operation management and studies various features related to it.
The assignment helps to understand various new trends and development in the tour operation
industry, their significance for the tour operator business, the assignment also highlights
various stages involved in tour planning such as market analysis, and tour cost calculation. It
also helps to study the stages of planning involved in brochure design and the effectiveness of
various alternatives to the brochure. Tactic and Strategic decisions related to tour operation
have also been studied in this assignment involved in the planning of tour. The company that is
taken for the study is Trailfinders.
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Task 1
1.1 IMPACT OF RECENT DEVELOPMENT IN TRAVEL AND TOURISM INDUSTRY
The travel industry is changing rapidly, and
the contribution of these changes goes to
the latest innovation and the internet age.
The customers have become more aware of
the products and service and they are
demanding the latest products from the
tour operators (Cook et al 2014). The
product development process at
Trailfinders must ensure that the all the
recent up-gradation are offered with the
products of the company. This is significant
for the company as they help to attract new
customers and improve the revenue
generated for the company. The recent
trends in the travel and tourism are as
follows:
Use of internet
Customers of travel and tourism demand
the online facility form the travel agency.
The customer must be able to see the travel
plan online and in addition to this any up
gradation in the travel plan must be added
to the online. The customers also demand
online payment and virtual site visit facility
(Al-allak, 2010). This enables them to make
the decision related to travel purchase
easily. In addition to this, the customer also
demands mobile application in which they
can get all the information related to the
travel. The product development team at
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Trailfinders must make sure that they
implement these changes in the product to
make it more internet friendly.
Integrated Communication Systems
The integrated communication systems that
are used by the travel agents help them to
communicate with everyone related to the
travel planning and management on a
single platform (Lala, 2011). This enables
the management and communication for
the customer easy and effective.
Insurance and Security
Customers of travel and tourism demand
that the insurance products such as
accidental insurance, travel medical
insurance and the personal belonging safety
insurance products are sold by the travel
agency. In Trailfinders, the product
development team must include these
products in the travel tour package to
attract more customers.
The customers also demand that the travel
agency that they are traveling with follows
all the legal rules and regulation, this
improves the feeling of security and
belongings in the tourist and they feel safe
to travel with family (Hristovska and
Mirceska, 2010).
Workshops
Many tourists find it very attractive if the
travel agency provides them with the
facility to learn about a specific skill that is
related to the culture of the travel
destination (Benckendorff et al 2010). The
product development team must make sure
that they add a workshop related to the
tourist place in the products of the
Trailfinders. This feature will improve the
profits for the company and help to
improve the reputation of the company.
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Discounts and offers
Discounts and offers are the new trends in
the travel agency; the travel companies
provide discounts to its entire customer to
improve the volume of sales. The products
at the Trailfinders must be designed in such
a manner that the company is able to
provide discounts and offers to the
customers. The company can also
collaborate with airline and food companies
to add for an extra discount on the
purchase from Trailfinders.
Task 2
2.1 REPORT
INTRODUCTION
This report is written to format a travel package for a group of forty-two students traveling
from Brussels and Burgees. The students will start their journey from London and the theme of
the travel will be education travel. The total time that they will spend during the journey will be
five days, and Trailfinders will be responsible to make arrangements related to their
accommodation, breakfast, and site visits.
BODY
The stages that are related to planning to tour management are as follows:
Market Analysis
The first step of travel planning is market research; during this phase, we will identify various
factors that are likely to affect the tour (Cooper, 2012). The various factors that are considered
during the market research are the political condition, weather condition, availability of
facilities and feasibility of the tour. We will examine that during the time of travel the weather
condition must be likely for traveling there must not be an issue related to weather. We will
also identify if there is any kind of political instability in both the cities are this is likely to impact
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out travel. The availability of tickets to the places that the group is going to visit it is also
important to find that tour is economically feasible or not.
Tour Planning
During this stage, a detail tour plan will be made, which will elaborate all the places to visit in
Brussels and Burgees (Cooper, 2012). This touring plan will also include the time to visit the
place and identify the availability of the tickets to the place that are likely to visit.
Settlements
During this stage, Trailfinders will negotiate with the facility provides such as the ticket
provides, hotels and transporters to get discounts on the deal or to add some new feature to
the existing deal. This will help the company to save the cost and improve the profit; the final
stage in this step will be fixing the deal.
Cost Calculation
During this step, the final cost of the tour package will be considered by calculating the cost of
various utilities. In this step, the final traffic for the tour will also be made calculating the cost
per student.
Marketing
In this stage, the brochures and the other marketing material related to the tour will be
designed and printed, and this material will also consider all the information related to the tour.
With the help of this material, the reputation of the Trailfinders is likely to improve so that the
student prefer the service of the company event after the tour
Execution
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During this step all the facilities need for the tour will be arranged and the tour will be
conducted, during this stage, the tour manager will make sure that the students get the best
quality service and they do not have any issues with the tour.
Feedback and review
In this stage, the managers at Trailfinders will try to collect the feedback and review of the
students regarding the tour and service. This will help the company to improve the service and
in addition to this, the manager will provide the student with information about the company
so that they can avail the touring service in future.
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TOUR PLANNING SCHEDULE
Activity 31 Jan 28 Feb 31
Mar
30
April
31
May
30
June
31
July
30
Aug
31
Nov
MARKET
ANALYSIS
TOUR
PLANNING
SETTLEMENTS
COST
CALCULATION
MARKETING
EXECUTION
FEEDBACK
AND REVIEW
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2.2 SUITABILITY OF DIFFERENT TYPES CONTRACTS WITH THE TOUR
OPERATORS
Contracts are defined as the travel agreements that are made by the tour operator to ensure
the availability of the bookings and reservation of its customers (Lima, 2013). Contrast play a
significant part during the peak season of the travel business, In addition to this, they also help
to save cost and ensure proper management. Generally, the duration of the contracts is before
twelve months before the travel, but it can be done anywhere between the range of one to
twelve months. The different types of travel contracts are as follows:
Fixed Travel Contract
In the fixed travel contract the amount of the travel booking is paid to another party, this
contract is benefited only when the sales are fixed for the travel business, this is also an
addition if refund in this contract but that is restricted with the terms of the agreement (Lima,
2013). This type of travel contract is done by Trailfinders only when they have a confirmed the
sale.
Allocation/Flexible Travel Contract
In this type of travel contract the travel agent books a slot with the hotel or flight service, if the
sales of the Trailfinders is fixed with than it ensures the purchase of the booking, this type of
contract is beneficial for both the parties (Lima, 2013).
Ad-Hoc Travel Contract
The ad-hoc travel contract is useful when there is overbooking of flights or hotels, the Ad-hoc
travel contract, this travel contract ensure the availability of all the facilities when there is a
booking is a travel group with Trailfinders.
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2.3 DIFFERENT TYPES OF TOUR OPERATORS
The different type of tour operators are as follows:
Mass-Market
The mass-market travel operators purchase the travels service from the distributors in high
volume and at reasonable rates, and then they sell it to the customers at lower rates. The
advantage of this type of tour operator is that they are reasonable to the tourist and their
quality is available in high volume for the group travels.
Exclusive tour operators
The specialist tour agency has provided exclusive service to the tourist, they generally deal with
luxury tours or adventure tours. They have an expertise in managing the needs of the special
tours.
Local tour operators
The local tour operators deal with arrangement of the tours at the national level, they plan and
arrange the facilities for the tourist in a limited area, such type of tour operators are very
common.
International tour operators
The international tour operators provide the facility such as Forex, currency exchange and
management of the international accommodation and transportation, such type of tour agency
has contacts at international locations and their offices are likely to be widely spread
throughout.
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2.3 ESTIMATION OF SELLING PRICE OF THE STUDENT TRIP
According to the question, the charges of the various faculties are given as follows:
Exchange rates are €1.12 per £1.
Cost of hotel is 92£ per room and double sharing
Luxury couch total costing for the trip is £7,350
Tour guide charges €1020
Total number of students is 42
Number of days to stay is 5 days
Total amount calculations
Room cost is (21*92) =€ 3864
Luxury couch cost= €8232
Tour Guide Cost= €1020
Total amount = €13116
Mark Up of 25%
Hence, the total amount is €16395
Therefore, cost per student will be equal to €16395/42
Hence, the cost required per student is €390.35
CONCLUSION
This report helps us perceive the concept of different types of tour contracts, tour operators,
and important aspects related to tour planning. This report also highlights the method of tour
cost calculation.
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