Importance of Tour Managers in Travel Agency

The assignment provides an overview of the features related to travel agencies that are essential for growth in this industry. It also includes price determination, strategies, and policies required for effective business management in tours and travels.

TOUR
OPERATION
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1.1 Covered in Leaflet..............................................................................................................1
TASK 2............................................................................................................................................1
P2.1 Stage and timescale involved in developing holidays........................................................1
P2.2 Different methods and its suitability in contracting various components of holiday with
several types of tour operators....................................................................................................2
P2.3 Calculation of selling price of a holiday.............................................................................3
P 3.1 Explain planning decisions for design the selected brochure............................................4
P3.2 Measure suitable alternatives to traditional brochure for different types of tour operator.
.....................................................................................................................................................5
P3.3 Measure quality of different methods of distribution used to sell a holiday package. ......5
TASK 4............................................................................................................................................6
P4.1 Measure strategic decisions made by tour operator...........................................................6
CONCLUSION................................................................................................................................8
REFRENCES...................................................................................................................................9

INTRODUCTION
Travel and tourism sector comes under tour and operational management. In this detail
analysis is done which deals in trends and development in tour operations management, it also
includes impact of recent trends and development in travel industry. Trailfinders and Kouni both
are travel agencies which independently arrange tour through out the country. They both are
specialises in tailor-made travel worldwide (Afshar and Haghani, 2012). This reports includes,
analysis and its effect on current trends in this industry. Strategies which are involved in
developing holidays. Different methods which are suitable for any tour operators. Satisfaction
level is identified whether they are satisfied with there service or not. In short there will be an
overview of tour and travel industry for analysing growth rate in this field.
TASK 1
P1.1 Covered in Leaflet
TASK 2
P2.1 Stage and timescale involved in developing holidays
Holidays are spent so that they can take rest from their busy schedule. For vacations
planning is the process which is very essential so as to have a framework of all their activities.
They ensure that every possible things are included and implemented in a effective manner. Here
are some of the stages which are required for effectiveness of developing holidays:
Research for destination: This is the first stage in developing holiday. They have to look
out for weather conditions and many more factors where they are. Thus, it is essential to have a
detailed understanding of that place and based on that selection of their destination should be
there (Anderson and et. al., 2013).
Developing tour Itinerary: This is the second step, in which they make itineraries about
what are the places which are to be visited. They prepare a time slot under which they have to
travel. This includes travel routes, accommodations, transportation and places to be visited etc. it
is quite a systematic process and it does not create any complexities. It steps takes around two
months to get completed.
Negotiation: Budgeting is very important in this. They check out for vendors and
suppliers who can provide them with cheap travel packages. Group holidays are preferred by
every visitors because it is comparatively low at cost but they have to negotiate about prices of
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airline travels, transport etc. it takes around four months to get completed (Berkoune and et. al.,
2012).
Price determination: In this stage all packages and its elements are taken into
consideration. This involves cost of fuel, foreign exchange rates which are under the framework
of any country. Variations can be seen in different packages some may be high at price and some
can be low. The deals which satisfy customers will be opted by many travellers. This process
takes maximum one month.
Marketing of the tour packages: To create awareness among people marketing is very
important tool. This help them to enhance their revenues and increase their profitability. Certain
methods they includes in marketing process which are making of brochures, pamphlet and many
more. It takes approximately four to five months in completion (del Mar Alonso-Almeida and
Rodríguez-Antón, 2011).
Execution of tour: this is the last stage of developing holiday packages. In this all
possible estimation is converted into reality. They monitor and control possible outcomes which
affect their activities.
P2.2 Different methods and its suitability in contracting various components of holiday with
several types of tour operators
Various features are considered in designing packages like contracts. They manage the
whole tour in different countries. They have a contact with vendors and suppliers who provide
them with all facilities. There are some of the features which are suitable for particular operator
and are as follow:
Fixed contract: This types of contracts are officially used in off-seasons when number of
travellers are low in total. It give them benefits. They mainly focus on collective and quantitative
approach. Through this process they increase their capability which maximize their sales.
Trialfindings is having fixed contracts which provide them with advantage in costing and gets
huge discounts and benefits (Dhiman, 2012).
Sale only contract: in this method the price is comparatively higher than fixed contracts.
It works according to the demands of customers who visit them. No liability is given because of
which there is a less risk factors.
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P2.3 Calculation of selling price of a holiday
In this given case Trailfinders and Kuoni both company have make holiday tour for
developing UK country. The total member in one tour are approx 45 and passengers are book
Trailfinders and Kuoni travel company by fixed payment method's. They will pay advance to
firm for full utilisation of capacity.
Cost Calculation Amount
Cost of room 1*5*10 €50
Cost of BB 1*4*5 €20
Total variable cost €70
1€ =.9£
Variable cost in £ 70*.9 £63
Cost of Transportation £500
Cost of guide £150
Total cost of tour £713
Profit margin 20% £855
Total sales price of
tour(Discounted)
£825
As shown in the above table, selling price tour of educational students of London can be
calculated. As per this, organisation has changed fixed cost and variables cost as well. Variable
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cost which is €70 is transformed into ponds which is £825. In this cost of bus is included which
was hiered for longer distance. 20% is marginal profit which is calculated.
P 3.1 Explain planning decisions for design the selected brochure.
Travel industry agency have to required promote their tour package services to the
consumers, That is agency responsibility to create awareness about their tour and travel services
among the potential customers (Travel and Tourism Agent, 2017). Kuoni brochure are include
relevant information, its a kind of documents those provide support to sales person and overall
demand are increase. That is marketing strategies or technique for promoting their servicing at
low cost. Digitalisation are increase reachability of the brochure, there are two mode one is
online and second is offline mode.
Development of brochure: Many issue are arise when Kuoni prepare brochure . Some
issues are market segmentation, formate of brochure, information those are in build in brochure,
targeting and selection with in a time limit.
Brochure format: In any brochure many information are arrange in a systematic way. In
this section and sub section are divided for different types of information. Brochure are prepare
according to target market. Some important information those include in format of brochure are
as follows:
 Name of the tour company
 Transportation system mode
 Travel destination and program
 Food facilities and accommodation
 Total package amount
 Legal requirement
 All other information
Selection target market and their budget: Kuoni Company have prepare budget for
every target market. According they have deicide what is the total price of tour. For
identification of market segmentation Kuoni make strategies for analysing customers needs and
wants. Budget are depend on spending power of consumers (Gibson, 2012).
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Total time required for completing all stages: Kuoni have want to rep up their all stage
work with in a given time because this is a essential document for marketing and selling services
by sales persons or marketing team. Management are required to make strategies and planing of
decision making process for fixing time to all stages (Kerzner, 2013).
P3.2 Measure suitable alternatives to traditional brochure for different types of tour operator.
Traditional brochure are printed on paper. That is the classical approach for making
physical brochure. In today environment this kind of brochure are not effective for attracting
consumers toward their services. Kuoni want to use new technologies for updating their work
process that increase attractiveness and overall profitabilities of the firm. Kuoni have use several
alternatives of digitalisation for preparing brochures that is called modern approach, this
alternatives are very effective to full fill gap in traditional approach. Some important modern
alternatives are E- brochure, social media platform, call centres, direct sell, websites promotion
and visual brochure etc (Klassen and Vachon, 2012).
In today's competitive environment Kuoni have use electronic brochure for better results.
Visual and audio – visual brochure are more attractive, that is create curiosity in consumer and
they have feel to use this services. This create demand in market place and increase profitabilities
of the Kuoni at long period of time. Kuoni have to show images and video recording of tour
destination are create willingness or demand in customers and finally they will take the tour
package. Internet are very effective way to create awareness, mostly social media sites or
platform are very effective for create attraction. Many intermediaries are involve in tour
industries, travel agents and retailer are act as intermediaries. Those are effected market demand
by making attracting pricing package. Direct selling are also very effective because in this
activities sell person are directly meet with clients and influence or approach them according to
client needs, wants and their pocket budget. For adventure holidays Kuoni have use modern
brochure like E brochure, video and audio brochure, website etc (Kogg and Mont, 2012).
P3.3 Measure quality of different methods of distribution used to sell a holiday package.
Different mode of distribution channel have been used by Kuoni for sell their products
and services to their potential clients. Many types of distribution level are available at market
place like one level distribution channel, two level distribution channel, three level distribution
channel. In one level distribution channel only one mediator are available service provider -
retailer – clients, in second level service provider – distributor – retailer - client etc (Lam and et.
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al., 2014). Kuoni have select those channel who provide equilibrium point (point where demand
and supply are meet). When market trend are change then Kuoni have prepare new strategies for
distribution their services at market place. Kuoni may use communication tool to spreading their
information at market some are social media, call centre, online marketing, travel agents and
retailers, E – brochure etc. that provide help to Kuoni for increasing their market share in
industries and increase overall profitabilities of the firm. Tour operators are analysis different
distribution channel and take appropriate one form several alternatives those are cost effective
and attaining goals and objectives of the firm, they timely deliver their services in a appropriate
manner for gain productivity in their work. So that in last Kuoni have chosen best distribution
channel for increase reachability toward costumers and clients are easily use services with out
taking more effort and save time (Lifset and Boons, 2011).
TASK 4
P4.1 Measure strategic decisions made by tour operator.
Every Kuoni are use different strategies for promoting their services, for this Kuoni make
plan to achieving firms goals and objectives. Kuoni management are change their strategies time
to time for cope up with future change. Management are taken appropriate strategies for
preparing decision making process for this manager are analysis available options and
alternatives and choose best one to full fill business objectives. Some of the important strategies
decision choose by Kuoni for run their operation are as follows:
Market segmentation, targeting an positioning: Tour operator has segmented
customers according to their behaviour, demand, age, lifestyle etc. After the segmentation firms
have find out their target costumers by using appropriate method. Kuoni have target their
customers by identification of their needs and want accordingly provide services to them. Kuoni
have make plan for position their services at consumers minds for this they have advertise their
product through different advertising channel and use marking communication mix (Pohl, 2014).
Demand forecasting: Demand forecasting is very important for tour operator. They have
prepare forecasting strategies for analysis future requirement. They have identify costumers
future requirement of holiday product and services. For demand forecasting Kuoni have different
type of methods. Through demand forecasting Kuoni may known customers preference and
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accordingly they have prepare package for attract them and generate revenue (Grant and et. al,
2017).
Discounting pricing strategies: Discounting strategies are very important for this
industries. Through this strategies Kuoni have able to attracting large target customers (Robinson
and et. al., 2011). Customers are always price sensitive and they have attract form those product
and services which are low in price as compare to other market or competitor price, so this is a
opportunity for Kuoni to using discounting strategies and attract large number of consumers
form market place and increase overall profitabilities for firms.
Risk management: Kuoni make strategies for handle risk in tour industries an
appropriate manner. Risk are associated with sales and market tread. Some time market has
change very quickly due to change in technologies or any other reason.
Building product strength: Tour operator have increase their brand image in customers
mind for increasing product strength. Management have take appropriate decision for positioning
their product at market place. That is increasing brand strength as well as brand value. Kuoni
take steps for improving their product like quality of product, effective price, attractive offers,
quality of services etc. and increase product strength (Rousseau, 2012).
Promotional strategies: Tour and travel Kuoni use marketing communication tool or
mix for promoting their product and services in the industries. That promotional strategies are
provide help to Kuoni for creating awareness at market place and enhance reachability of product
at market. For promotion strategies Kuoni spend lot of money and that increase total price of the
tour package, in result tour package are expensive and customers are not purchase. So that Kuoni
have make cost effective promotional plan for solve this problem.
P4.2 Comparison of tactical decisions that are taken by tour operators in different situation
Tactical decisions is very essential so that business can run in a effective manner. It
includes all activities related to company. They are the short term decisions which are applied for
shorter period of time so that they can meet daily requirements. In this process they negotiate all
the problems related to services provided by them. This involves accommodation of places.
Transportation, foods and other stuffs (Afshar and Haghani, 2012). These are to be maintained so
that they can have healthy relations between different firms. Some of the steps which are
included in this are as follows
1. There should be a frequent analysis of various segments which assist them in promotion.
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2. Price should be determined.
3. They should maintain a certainty by securing transactions.
There are various factors through which tactical decisions are influenced. Information and
communication is the main element because without this there cannot be a perfect conversation
between two or more groups. If there is lack of communication that it will not be possible to
provide required informations to their clients. This can hamper in decision making process. In
such situations there are certain rules and regulations are there which are to be followed and they
are as follows:
Economic Growth: Income is the biggest factor without which no body can plan for
travelling any place. This can effect tactical decision in a positive and negative manner. Travel
agencies may face loss if there is decline in visitors in their country (Anderson and et. al., 2013).
Environmental Issues: If conditions of any country is not suitable than it will be not
possible for tour operator to arrange any trip. It is necessary to determine value and importance
of any area for travel agencies before executing the plan.
Exchange Rate: This factor is a base for any country because it helps them to increase
their revenues so that they can provide better facilities to those who are travelling in their nation.
There can be seen fluctuation in their economic growth (Berkoune and et. al., 2012).
CONCLUSION
From the above report we can conclude that tour managers are very important for
managing tour and travels. Several features are discussed in this assignment which are related to
travel agency that is required for growth in this industry. Logical study of different aspects is
done so that company can know what all changes are essential for further situations. Price
determination has been included which gave us an overview of their schemes and packages.
Strategies and policies which is required for their business so that it can be run effectively. Thus,
in all aspects tours and travels is very necessary to be maintain because it plays a huge role in
increasing any countries GDP(Gross Domestic Product).
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REFRENCES
Books and journals
Afshar, A. and Haghani, A., 2012. Modeling integrated supply chain logistics in real-time large-
scale disaster relief operations. Socio-Economic Planning Sciences. 46(4). pp.327-338.
Anderson, M. A., and et. al., 2013. Operations management for dummies. John Wiley & Sons.
Berkoune, D., and et. al., 2012. Transportation in disaster response operations. Socio-Economic
Planning Sciences. 46(1). pp.23-32.
del Mar Alonso-Almeida, M. and Rodríguez-Antón, J. M., 2011. Organisational behaviour and
strategies in the adoption of certified management systems: an analysis of the Spanish
hotel industry. Journal of Cleaner Production. 19(13). pp.1455-1463.
Dhiman, M. C., 2012. Employers' perceptions about tourism management employability skills.
Anatolia. 23(3), pp.359-372.
Gibson, P., 2012. Cruise operations management: Hospitality perspectives. Routledge.
Grant, D .B., and et. Al ., 2017. Sustainable logistics and supply chain management: principles
and practices for sustainable operations and management. Kogan Page Publishers.
Kerzner, H., 2013. Project management: a systems approach to planning, scheduling, and
controlling. John Wiley & Sons.
Klassen, R. D. and Vachon, S., 2012. Greener supply chain management. In The Oxford
Handbook of Business and the Natural Environment.
Kogg, B. and Mont, O., 2012. Environmental and social responsibility in supply chains: The
practise of choice and inter-organisational management. Ecological Economics. 83.
pp.154-163.
Lam, C. H., and et . al., 2014. An order-picking operations system for managing the batching
activities in a warehouse. International Journal of Systems Science. 45(6). pp.1283-
1295.
Lifset, R. and Boons, F., 2011. Industrial ecology: Business management in a material world.
Pohl, B., 2014. EU foreign policy and crisis management operations: power, purpose and
domestic politics. Routledge.
Robinson, P., and et. al., 2011. Research themes for tourism. CABI.
Rousseau, D. M., 2012. Envisioning evidence-based management.
Online
Travel and Tourism Agent. 2017. [Online]. Available through:
<http://www.spoiledagent.com/members/rwbimini.php>.
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