Tour Operation Management: A Comprehensive Guide to Strategic and Tactical Decisions

This report delves into the intricacies of tour operation management, exploring the impact of current trends on the industry, the stages involved in developing holiday packages, and the strategic and tactical decisions tour operators must make for success. It analyzes the effectiveness of different contracting methods, brochure design, and distribution strategies, ultimately recommending the most suitable approaches for a specific tour package. The report also examines the importance of customer satisfaction, technological advancements, and competitive pricing in the dynamic tourism market.

Tour Operation Management

Table of Contents
Introduction......................................................................................................................................1
TASK 1............................................................................................................................................2
1.1Analyse the effects of current and recent trends and developments on the tour operator’s
industry [D1]................................................................................................................................2
TASK 2............................................................................................................................................4
2.1 Assess the stages and timescales involved in developing holidays[D2]...............................4
2.2 Evaluate the suitability of different methods of contracting for different components of the
holiday and different types of tour operator [M1].......................................................................7
2.3 Calculate the selling price of a holiday from given information below................................8
TASK 3............................................................................................................................................9
3.1Evaluate the planning decisions taken for the design selected brochure................................9
3.2 Assess the suitability of alternatives to a traditional brochure for different types of tour
operators and recommend the most appropriate for your tour package....................................11
3.3 Evaluate the suitability of different methods of distribution used to sell a holiday for
different types of tour operator and recommend the most appropriate for your tour package.. 14
Conclusion.................................................................................................................................15
M2 select /design and apply appropriate methods/techniques..................................................16
TASK 4..........................................................................................................................................17
Executive summary...................................................................................................................17
Introduction................................................................................................................................17
4.1 Evaluate the strategic decisions made by different types of tour operator [M3].................17
4.2 Compare the tactical decisions that could be taken by a selected tour operator in different
situations [D3]...........................................................................................................................19
Conclusion.................................................................................................................................20
Conclusion.....................................................................................................................................21

References......................................................................................................................................22

LIST OF TABLES
Table 1: Current and recent trends and developments for tour operator.........................................2
Table 2: Gantt chart.........................................................................................................................5
Table 3: Alternative distribution methods.....................................................................................12
Table 4: Distribution method.........................................................................................................14

LIST OF FIGURES
Figure 1:Steps followed while developing Tour Package...............................................................4
Figure 2: Steps followed for designing Brochure............................................................................9
Figure 3: Trailfinder Online Brochure...........................................................................................11
Figure 4: Information present in Brochure....................................................................................11
Figure 5: Different methods of distribution...................................................................................14
Figure 6: Tactical decisions...........................................................................................................19

Introduction
Globally the tourism sector has evolved greatly, which has also increase the intensity of
competition among various organization providing similar services in the market. The report will
discuss various features organization need to maintain for its sustainability in the current market.
Different procedures applied for creating a tour package will be studied in this report including
promotion and advertisement. For proper functionality the organization should take various for
obtaining maximum customer satisfaction. The present report discusses about step taken for
creating a brochure for Trailfinder Ltd. along with decision taken. However, there are various
alternative rather than Brochure which will be studied in this report. A tour operator must take
various strategical and tactical decisions for the whole tour package which will be studied in this
report.
1

TASK 1
1.1Analyse the effects of current and recent trends and developments on the tour operator’s
industry [D1].
Trailfinder Ltd. provide a verity of holiday packages and other tour services to their customers. It
is a famous and largest independently owned organization having 29 centers alone on United
Kingdom. Trailfinder Ltd. implements all the advance technology and market trends that has
lead to winning of many impressive awards in the year 2016-2017.
Table 1: Current and recent trends and developments for tour operator
1 Customer satisfaction Customers’ demands and need are studied by Trailfinder Ltd.
with the help of feedback on the basis of the service offered and
experience they had with the organization. These feedback helps
in enhancing various service delivered. Interest and trust
towards the organization increases. Trailfinder has been
working effectively for achieving more customer satisfaction by
continuously improving their services. Changes in the
organizational function and services will help in maintaining
proper customer relationship and sustainability in the current
market (Argüelles et al 2016).
2 Developing technology Advancement in the field of technology is helpful in enhancing the
travel and tourism industry by effectively introducing them to the
organizational business function and customer services. For
example, using internet for different operations of Trailfinder Ltd
(Internet Is Important in Business, 2018 ). Now ticket booking,
hotel room booking, enquiries can be done easily by customer using
an electronic device having internet access via the organization web
site. Involvement of customer with the organization has increased.
3 Enhancing the power of
purchasing
Interest of customers for travelling and visiting new places has
increased with the rapid growth in travel and tourism industries. It
has led to increasing in tourist expenses hence Trailfinder Ltd. is
flourishing effectively in the current market.
2

4 Climatic alertness One of the main concern that Trailfinder is worried about is the
climatic conditions of the place where tour is organized for the
tourists. Suitable research of the place and its climatic changes must
be done and package should be organized accordingly.
From the above task, it is cleared that an organization like Trailfinder offering tour service
should must implement all the new modifications in their services for their profitability and
sustainability of the business in the present market for satisfying the customers.
3

TASK 2
2.1 Assess the stages and timescales involved in developing holidays[D2].
An organization need to follow a series of steps for proper generating a tour plan so that more
number of customers are attracted towards the organization business. Different steps while
developing a holiday package is illustrated below:
Figure 1:Steps followed while developing Tour Package
1. Market research: The first stage of developing a tour package is doing proper market
research. Here, all possibilities and conditions of the current market is studied. The
process of market research is accompanied by SWOT and PESTLE analysis for
understanding the market and organization including their opportunities and threats.
Factors like economic, Politics, Society, legal as well as Technological should be well-
thought-out for organizing an educational tour for a group of 40 student.
2. Tour scheduling and planning: Trip is planned as per proper scheduling. In the current
situation, an educational tour is to be organized for 40 students for about 5 days in
4
MARKET
RESEARCH
SCHEDULINGAND
PALNING CONTRACTING COST
IDENTIFICATION
MAKING THE
BROCHURE

August 2019.It is the responsibility of the tour operator to check availability of hotel
room and food and then the tour plan must be created.
3. Contracting: different contracts must be signed among various other organization for
incessant customer services while organizing the tour plan. This stage of developing the
tour plan includes documenting and contracting with different airline companies, guide
service, travel agencies and hotel for accommodation and food responsible for offering
best service option to the customers (Horner and Swarbrooke, 2016).
4. Cost Identification: The rate and cost of whole tour package is estimated in this stage. It
is done by identifying all the maximum possible rate will be charged while planning the
tour. The cost identification stage is helpful in gaining overall profit of the organization.
5. Creating brochure: this next stage is considered as the one of the most significant stage
for creating tour plan. Brochure are designed keeping the target customer in mind. The
main purpose of this stage is to promote the organization and its services related to tour
package to the customer for attraction them. The Brochure hence design contains all the
important and crucial information that customer wants to know regarding a tour package.
And Brochure effectively impacts the process of decision making of a customer.
6. Allocation of responsibility: As soon as the tour plan is created, next stage is plan
execution and implementation for the organization. Responsibilities and duties of all the
employees must be distributed among all the stuff members to achieve maximum output
for delivering proper customer satisfaction.
Development of the tour package along with scheduling and proper and scheduling is done in
4 months’ time period. A Gantt chart is prepared for explaining the development of the
whole tour package.
5

Table 2: Gantt chart
Events/
timescale (2018)
Research Planning and
scheduling
Contracting Creating
brochure
Month 1
Month 2
Month 3
Month 4
6

2.2 Evaluate the suitability of different methods of contracting for different components of the
holiday and different types of tour operator [M1].
Tourism is a very complex sector that involves working with various components to provide
effective service to the customers. These sector of providing customer services related to tour
organizing need to follow and fulfill various rule and regulations. The organization in this sector
come across numerous types of challenges and externally occurring influences.
It is the responsibility of the tour operators to develop effective links with many other
organizations for successful working with several components. Some of the components are:
Transport Providers: transportation services come under this component including taxi
operators, rail operators etc. The tour operator should mandatorily negotiate with these operators
according to the with the tour package.
Travel Agents: The travel agent an individual who are placed in the organizational outlet sales
outlets. The travel agent should convey messages with the tour operator along with commission
payments (Graci and Dodds, 2015). A travel agent associated with an organization works for
enhancing and sustain the organization, increasing and maintaining the market share.
Accommodation Providers: It is very much significant that tour operator must negotiate with
components negotiates with them regarding to availability of rooms, bed
and other section that the package tour includes.
7

2.3 Calculate the selling price of a holiday from given information below
Development of the tour package involve estimating the overall expenses that the customer need
to make individually. Calculation of the selling price will also include organizational profit while
organizing the tour. The calculation of selling price is done for a group of 40 students for a time
period of 5 days from UK to Belgium in pounds.
Conversion of Euro in pounds = 1.15 euro
£ 1 = 1.15 euro i.e. 1 Euro = 0.86 £
Calculating the selling price for the tour package:
1. Cost of the Hotel (40 rooms for 5 days @ 90 Euro per day) = (40 * 90 * 5 *0.86) =
£15480
2. Travel expenses=£ 7400
3. Local Guide= 920 *0.86 =£ 791.2
4. Total expenses= £ 23671.2 (step 1+2+3)
5. Profit @ 30%= £ 7101.36 (30% of step 5)
6. Total selling price = £ 30772.6
7. Selling price for one person= £ 30772.6/40 =£ 769.3
From the above the total selling price of the package would be £ 30772.6 and the selling price
per person will be £ 769.3
8

TASK 3
3.1Evaluate the planning decisions taken for the design selected brochure
Brochures are one of the common tool used by Trailfinders Ltd. for promoting its tour packages
and attracting more customers toward its business. A Brochures has a huge amount of tour
package information along with various discounts offered by the tour operators. Brochures are
helpful in promoting and advertising along with creating a brand image for the organization.
For development and designing a Brochure various steps need to followed along with suitable
decision-making method need to be applied for the tour organized for students to Berlin. Tour
operator mostly favors using a brochure for fascinating customers. Some of the aspects the
management and marketing team need to considered for creating a new brochure for the tour is
discussed below:
Figure 2: Steps followed for designing Brochure
Step 1: Format the brochure:
The initial step is the most crucial stage for development of the brochure of the tour package.
The image and color used in the Brochure for the organization is the first step of attracting
customers towards a tour package. Appropriate and clear image and color selection need to be
done. If the format is interesting it implies that it will be influencing to the viewer. The brochure
9
FORMAT THE
BROUCHER
BROUCHER'S
CONTENT
PAPER
QUALITY
COLOUR
COMBINATION

need to have appropriate description of cost of the tour, place to visit, time duration,
accommodation facilities and transportation service etc.
Step 2: Brochures Content
Brochure created for the tour package should contain all the significant and relevant information
for customers (Medlik, 2016). The Brochure’s content is in simple and in understandable
language for easiness of the customers. Any kind of complexities and hidden information are
avoided in the Brochure by the management of Trailfinder Ltd.
Step 3: Paper quality
The paper used for making the Brochure is very effective to categorize brand image and name.
Customers are highly affected by the paper quality and their decision can also get impacted.
Hence, selection of the paper quality by Trailfinder is proper. As customer attention and
durability is affected by the overall presentation.
Step 4: Color used
People always tends to get attracted by bright colors. Therefore, the management of Trailfinder
Ltd. should consider the color factor while design for the Brochures worked upon for the tour
package. It is quite mandatory that brochure must be very attractive and contain adequate
information regarding the whole tour package for customer’s references. The color combination
for the Brochures must be selected according to the motive and purpose of the tour.
10

3.2 Assess the suitability of alternatives to a traditional brochure for different types of tour
operators and recommend the most appropriate for your tour package.
Figure 3: Trailfinder Online Brochure
Figure 4: Information present in Brochure
(Source: http://trailfindersbrochures.com/?b=european_escorted_tours, 2018)
11

The tour operator of Trailfinders can chose to implement various alternatives techniques for
distribution and promotion of different tour package distinct to the implementing traditional
technique for distributing the Brochure for the tour package.
Table 3: Alternative distribution methods
Methods Description
Websites This is the ideal technique that an organisation can use for
distributing the tour package. Website of Trailfinders Ltd. has a
brochure which contains information of different tours packages
(Importance of business website, 2018.). The website is available and
accessible to all the user hence it is considered as the best distribution
method for tour packages. It is cost effective as Brochures be viewed,
order or downloaded without the need of hardcopies.
Videos Customer are mostly drawn by striking advertisement method having
proper information. Videos are effective for conveying lot of
information regarding a location as customer can get a clear image of
the place, that customer is opting to visit.
Pay per click It is a new concept which organisation can use for distribution of the
tour package to a large number of customers. Brochure for the tour
are attached along different sites.
Travel agencies The travel agents are the finest promoter of any tour package for the
tour operators. These agents are very skilled personals and are
proficient to impact the decision of the interested customer. They are
effective in preserving customer relation and trust though proper
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communication skills. However, commission are charged by the
agent for providing service to the organisation.
E-mails e-mails are used for sending online Brochure to customer’s mail ids
taken from databases which are collected by the marketing team
though surveying. Emails contents maximum information related to
tour package.
For the organisation, the best technique that can be implemented is through website and emails
that is effective in providing appropriate information of the tour package to interested customers
in a reasonable and in lower price.
13

3.3 Evaluate the suitability of different methods of distribution used to sell a holiday for different
types of tour operator and recommend the most appropriate for your tour package.
A tour operator can select various mode of distributions for advertisement and promotion of the
various services and the tour the organization offers to its customers. However, every method
implied has its specific cons and pros, the tour operator must study the method thoroughly before
implementing them for the promotional and marketing purpose. Few of the distribution methods
for selling tour packages are studied below:
Figure 5: Different methods of distribution
Table 4: Distribution method
Methods Description
Direct sale It is considered to be the most common and best technique that organization
can adopt for selling the tour packages to the customer directly though emails
or by telephonic call. Brochure for the packages are created and distributed
either by email or the official website. The brochure covers all the vital
information adequately that helps in attracting more customer toward the
organization. In comparison to other methods these method is easier, quicker
and less expensive. Internet usage has evolved providing high future scope.
Internet One of the most recent concept for selling and distributing tour package is the
use of internet. It is a very effective method as various prospects are provided
for the publicity. For an instance, in You tube can be used for attracting
customer via attractive videos (Gountas, 2005). Along with that online
banners, E-mail marketing, blogs and other social media sites can also be used
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DIRECT SELL INTERNET CALL CENTRES
AGENCIES
TELEPHONE
AND
TELETEXT

for the same.
Agencies Agencies are effective are used for promoting and selling various services and
tour package to the customer. But, this method is expensive as the process
includes commissioning demand from the agencies (Bellman, 2015). However,
because of physical interaction and communication with customers. The
method also can be helpful in maintaining and creating a proper customer
database for future reference.
Telephone and
Teletext
For selling the tour packages, telephonic calls or text messages are sent. This is
a kind of direct selling method. Yet, it has been found that the customers are
not attracted by these techniques
Call Centers Call center as a distribution channel has been proven to be effective in forming
proper trust relationship between customers and the organization. The tour
operator need to set a call center unit or outsourcing need to be done together
with other call center. This distribution method saves time, which can be later
used by the management for processing other purposes. In this method the
customers are allied directly and database is created.
Conclusion
The task discusses different distributing methods that organization can implement for its services
and tour packages. Effectiveness of the techniques is studied for reaching more number of
customers. The task also discusses about various factors that the tour operator need to consider
for developing and designing the brochure.
15

M2 select /design and apply appropriate methods/techniques.
The most effective ways for promoting and attracting a large number of public towards an
organization or its serve is through attractive brochure. Trailfinders Ltd. focuses on designing
and creating brochures for customer’s attraction and involvement with the organization using
modern technologies are used for designing the brochures.
Customers are targeted mostly through the official website of Trailfinder Ltd over the internet.
The website should be very attractive and precise information, that draws the customers toward it
and effectively dispenses and promote various services related to the organization. online
brochures are considered as to be one of the operational tool for involving more customer in
lesser time period. The tour package of the Trailfinder Ltd can use direct selling method and
emails for marketing and selling through online brochure.
16

TASK 4
Executive summary
Suitable strategic and tactical decision must be taken by the tour operators associated with the
tourism sector. These decision of the operator is to provide good travelling experience to the
customer along with other customer services. The strategic decisions of the tour operator mainly
concern about size, shape, cost of the organization but on the other hand Tactical Decisions are
transitional judgements.
Introduction
The following task will discuss about various strategic decisions taken by the tour operator for
increasing the business profit of the organization. These decisions are made keeping mind about
the structure, size, capital of the organization for involving more clients with the organization.
Additionally, Tactical Decisions that tour operator must implement in the organization and it
significance will be studied with respect to the current market and other external factors.
4.1 Evaluate the strategic decisions made by different types of tour operator [M3].
Strategic decisions are decision taken by the tour operator considering both external and internal
environment of an organization. The Strategic decisions implemented in an organization are very
important for continuity of its business functions. The top-level management of the organization
is responsible for making strategic decisions as they are complex decision and concern mostly
about the organization’s future having various risks. Some of the Strategic decisions taken by
tour operator are:
Promotional strategy: The strategies for promoting the services and tour packages should be
very creative and attractive. The tour operator must implement these strategies using the latest
and advance technologies for attracting more customers towards the business.
Pricing strategy: one of the most significant decision for an organization is the implementation
of the pricing structure. The pricing strategies are the concern of the top-level management
personals (Goldsmith and Tsiotsou,2012). However, the tour operator is responsible for
generating a strong pricing strategy. For an instance, the tour operators can approve using a
discounted pricing strategy in which the customer are offered with a fix price for a service but
high discount also is provided along with that.
17

Competitive Pricing Strategy: For sustainability of the organization among its competitors in
the present market, it is very much necessary for applying a strong and effective competitive
pricing strategy. For introducing and implementing these kinds of strategies the tour operator
must thoroughly undergo a Market research. Competitive market strategy is effective for
upholding customer loyalty and attract more customer.
Seasonal Strategy: In travel and tourism sector seasons play a significant role. Therefore, the
tour operators must frame strategies according to the seasons. As climatic season has an effective
impact on the customers tour plan (Strategic Marketing Decisions, 2018.).
18

4.2 Compare the tactical decisions that could be taken by a selected tour operator in different
situations [D3].
Tactical decision refers to various decision that are taken for organizational profitability,
longevity and enhancing various function related to business. The tour operator takes tactical
decisions for dealing with their business function. Tactical decisions are generated in the base of
the organizational strategic decisions (Robinson et al 2016). These decisions are helpful for the
tour operators to control all the business function in smooth way. Few of tactical decisions that a
tour operator takes is studied here:
Figure 6: Tactical decisions
Competition: Tour operator is required to works in various types of environments. Therefore, he
must keep proper track of the current market competitions. The tour operator must take proper
tactical decision for knowing and understanding their competitors and services they offer to the
customer including cost, strategies etc.
Price War: In travel and tourism industry, bottle neck competition is very common therefore the
tour operator must apply suitable pricing strategies for all the service provided to its clients as
per the present trend of the market.
External Factors: External factors such as the technology, economic, legal or politics, of the
destination place heavy impacts the decision of the tour operator. Hence it is recommended that
the tour operator must be aware of all the external factor before taking any tactical decision.
Marketing Decision: One of the most significant area that encourages the improvement in the
business of an organization is the Marketing strategies it applies for promoting its brand and
19
TOUR OPERATOR'S TACTICAL DECISIONS
COMPETITION PRICE WAR EXTERNAL
FACTORS
MARKETING
DECISIONS CONTRACTS

service provided to clients though different medium. Hence, the tour operator must include
different schemes and discounts for attracting more number of customers toward their
organization.
Customer service: Tour operators implements direct selling method to their customer through
proper communication either via telephone call, emails for increasing customer loyalty and
profitability.
Conclusion
The task has discussed about different decision that a tour operator must take for enhancing the
profitability of the organization by attracting more customers in respect of the present market.
These factors are very effective in determining success and failure of the organizational business.
20

Conclusion
The above report current trends which impact the tourism sector has been studied. In task 2
different stages of creating the tour package has been studies. Method of contacting with various
elements in the tour package is discussed in the above report. It has been concluded that proper
planning and organizing is required in these kinds of business. Alternatives method of
distributing and selling tour package rather than Brochure has also been illustrated. Tour
operator must take proper strategic and tactical decisions which has also been illustrated in this
report for effective designing and development of tour package for an organisation.
21

References
Books and Journals
Argüelles, M.B., Coscarella, M., Fazio, A. and Bertellotti, M., 2016. Tourism Management
Perspectives. Tourism Management, 18, pp.118-124
Bellman, R.E., 2015. Adaptive control processes: a guided tour. Princeton university press.
Goldsmith, R, & Tsiotsou, R 2012, Strategic Marketing in Tourism Services, Bingley: Emerald
Group Publishing Limited
Gountas, S., 2005. Tour operations management. The management of tourism, pp.47-66.
Graci, S. and Dodds, R., 2015. Certification and labeling. The Routledge handbook of tourism
and sustainability, pp.200-208.
Horner, S. and Swarbrooke, J., 2016. Consumer behaviour in tourism. Routledge.
Medlik, S. ed., 2016. Managing tourism. Elsevier.
Robinson, P., Fallon, P., Cameron, H. and Crotts, J.C. eds., 2016. Operations management in the
travel industry. CABI.
Online Refernces
Strategic Marketing Decisions, 2018. [Online] [Accessed through]<
https://bakermarketingservices.com/2016/07/3-strategic-marketing-decisions-to-get-right/ >
[Accessed On: 30th April, 2018]
Internet Is Important in Business, 2018 [Online] [Accessed through]<
https://bizfluent.com/about-5460932-internet-important-business.html >[Accessed On: 30th
April, 2018].
Importance of business website, 2018. [Online] [Accessed Through]<
https://solutionsresource.com/importance-of-business-website/> [Accessed On: 30th April, 2018].
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