Tour Operation Management: Analysing Trends, Developing Holidays, and Strategic Decisions

This assignment delves into the dynamic world 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 made by different types of tour operators. It examines the role of technology, business integration, niche tourism, and dynamic packaging in shaping the industry. The assignment also analyzes various contracting methods for different components of a holiday, calculates the selling price of a holiday, and evaluates the effectiveness of traditional and alternative brochure formats and distribution methods. Finally, it explores the strategic decisions made by tour operators regarding branding, service offerings, and pricing strategies, as well as the tactical decisions they employ to optimize operations and manage yield.

Tour Operation Management
1

Table of Contents
Introduction.................................................................................................................................................3
LO1.............................................................................................................................................................4
1.1 Analyse the effects of current and recent trends and developments on the tour operators industry.. .4
LO2.............................................................................................................................................................7
Introduction.............................................................................................................................................7
2.1 Asses the stages and timescales involved in developing holidays......................................................7
2.2 Evaluate the suitability of different methods of contracting for different components of the holiday
and different types of tour operator.........................................................................................................8
2.3 Calculate the selling price of a holiday from given information......................................................10
P 3.1 Evaluate the planning decisions taken for the design of a selected brochure................................11
P 3.2 Assess the suitability of alternatives to a traditional brochure for different types of tour operator
...............................................................................................................................................................12
P 3.3 Evaluate the suitability of different methods of distribution used to sell a holiday for different
types of tour operator.............................................................................................................................12
LO4...........................................................................................................................................................13
P 4.1 evaluate the strategic decisions made by different types of tour operator.....................................13
4.2 Compare the tactical decisions that could be taken by a selected tour operator in different situations
...............................................................................................................................................................14
Conclusion.................................................................................................................................................15
Reference...................................................................................................................................................16
2

Introduction
An individual needs his travelling practices to be an existence and impressive practice. Thus,
travelers did not spoilt additional time through mess up their practices. The tour operator
performs a vital role in creating travelling practices of an individual unforgettable. Tour
Operators are the advantages for those who are interested in visiting and travelling. Operators
formulate deal for the tour operations according to their budgets, interest, preferences of the
destination where traveler want to travel with including and excluding various choices.
Within this assignment, it will explain about Tour Operators, their methods of reservation
or booking, the facilities which they offer at the time of travelling, they make an effort to
providing an unforgettable practices to their consumers through making excellence packages of
tour.
3

LO1
1.1
4
Recent trend within Travel and Tourism may affect the
entire firm in both the methods either in optimistic method
or in negative method. The recent place of travel and tour
segment is that increasing quickly and latest consumers are
attracting by them. The tour and travel associations have
very immeasurable extent within the open market of UK
and London is mainly famous for their beauty, monuments,
Museum and many other places which attract large amount
of travelers. London is mainly eye-catching place for the
current visitors thus it can be assumed that the transforms
in the recent trends may affect the tour operator company.
There are some modern trends within tour operator
company are stated below:
Development of technology- the technology development
has improved the rate of growth of Tour and travel
segment. The digitalization has increased the quality and
achievement of tour operations. It has prepared the firm to
be time and cost efficient. The growth of latest technology
assisted the tour operator to offer online booking and
reservation services for their consumers. There are many
tour providers and hotels which has applied modified
software program as well as high organized hardware
within the systems for the enhanced performance of
business action.
Business Integration- it is examined as the current trend
within tour and travel segment which has wide affect
within the segment. It has consigned more function to the
CIO of the industries working within this segment. The
additional functions of CIO are the head of the business
procedure. TUI group is a popular and biggest tour supplier
within the tour and travel segment. It has combined with
First Choice and Thomas Cook to get wide open market
area.
Niche Tourism- the essential advancement within tour and
travel segment can be termed as niche tourism. The niche
tourism supports the tour operator to struggle inside the high
competitive open market and mix-up situation of tourism and it
also separate their goods and facilities of the industry along with
the last goods of the competitor firm which is working within
the open market. The rate of improvement of niche tourism is
extreme and it is also increasing rapidly. There is a possibility
that the tour operator can mistreat the enhancement of niche
tourism to attain additional income and profit.
Dynamic packaging- along with the passing time, there are
many aspects are added like smart user interface, fast search,
naturals gathering of products and superior flexible items. The
dynamic packaging includes accompanying as specific through
the tour like ticket show and facilities in airport parking. The
Travex apply dynamic packaging to attract wide number of
visitors. Travex can be mentioned as an online stage to the
travelers to reserve tickets and accommodation in hotels in
advance from anywhere within the world.
Expansion of cruise ships- from the previous two decade the
desire of cruise ship facilities has boon within the tour and
travel segment. The rapidly growing desire and needs of cruise
ship facility and also expanding number of country offering
cruise. Tourism is examined as the essential aspects within tour
and travel segment.

Four tour operators:
Trafalgar- it is examined as foremost and popular firm of tourism industry in conditions of
seasonal tour (Festa et al., 2013). The industry has held its practices since 70 years and it also
hold the open market very strongly because it offers guide to the travelers which improved their
trip. It offer amenity which facilitates the travelers to recognize the culture, values and the
history of the native inhabitants of the travelling regions. it has been computed that the industry
carry out 226 travelling in his business year within the region like New Zealand, Asia, South
America, North central, Australia and Europe. It is a worldwide tour supplies and it has recently
offers 1700 tour on a daily basis. The industry mostly focuses on the economy class of travelers
who desires to take global packages of tour.
TCS world travel- the industry is honored in the class of excellence tour supplier in 2017. The
industry is popular for its luxury amenities like private jet service which is offering through the
industry since previous two decades. The consumers love the universal facilities which are offer
through the industry like the Asia culture within a worldwide excursion of 24 days. The voyage
and packages of tour which is offer by the industry is quite luxurious because the industry mostly
concentrates on the individual connected to wealthy economic part of the industry.
Butterfield and Robison- the association is working within the tour and travels for 5 years and
has attained fame between the travelers. The major reason of the industry is to offer an excellent
practice of the environment of sites where travelers desire to travel. The industry offers the
authentic and adventurous voyage all over the globe to its travelers (Gavalas et al., 2015). The
firm targets the segment of the societies who are seeking out for adventurous tour and also desire
to explore the nature beauty of many destinations of the globe.
Thomas Cook- it is most important tour supplier industry within the globe. The industry execute
it business action within nation like Germany, United Kingdom, North Europe and Continental
Europe. The association target entire segment of the community who is seeking out for
worldwide tour. The industry increases its packages of tour with respect to recent trend of the
tourism trend.
5

International trade bodies: Roles and responsibilities
ABTA- ABTA is the biggest tour business of UK that handles the travel industries and tour
manager who perform the big business of 37 billion pounds through offering packages of
vacation to the travelers within a business year.
AITO- it is based on the British tour and travel segment which manages around 120 tour
industries and representative of the tour industry of UK. The members of AITO work within 170
countries and more (Lee, 2015). The goals of this organization are to offers high standard of
satisfaction to the travelers through concentration on the three essential aspects that are service,
choice and quality.
FTO- FTO- it identify the organization which work within many nations around the globe
(Barratt et al., 2011). The FTO is the vital aspect of ABTA and the organization has the liability
to improve and grow the areas which is influencing the worldwide vacations.
6

LO2
Introduction
The preparation for the vacation is very time taking and complex procedure which includes many
phases. The tour offers to handle the facilities and goods which are required during vacations. As
planning for vacation is very time taking thus the holiday planning must prepare before the
departure date.
2.1
The preparation for the vacation is very time taking and complex procedure which includes many
phases. The tour offers to handle the facilities and goods which are required during vacations.
The tour operator confronts strong rivalry from worldwide and the domestic open market during
starting the packages of tour. The tour industry utilizes different policies in starting packages of
tour which are discussed below:
Marketing Research- it is examined as a vital portion within the procedure of beginning your
packages for the travelers. It is vital for the tour supplier to examine the condition of the open
market before starting the packages of tour (Espino et al., 2015). Market research offers data
regarding the competitors of the industry, target consumers and economic situation of the open
market. The polices built up through marketing research which includes many factors like rivalry
in price, subsidy within tourism, overseas development and exchange rate of currency. The
research provides idea regarding the superb time for visit definite visiting sites; reservation of
tickets for airlines, booking hotels for accommodations and it also offer data regarding many
elements of the open market. Consumers’ research system is an element of marketing research
which provides idea regarding socio-demographic aspects, phases of life and situation of
marketplace (Lee, 2015). There is one more element of marketing research that is demand
research which provides data regarding the accessibility of the specific goods. The examination
offers whole knowledge regarding the competitors of the industry in word of cost of tour
packages, uniqueness and its aspects.
Planning and scheduling- the scheduling and planning is the techniques to choose travel date,
accommodation in hotels, destination where travelers desire to visit, and proficiency (Golding,
7

2011). It offers data which assist to compute the number of visitors that packages of tour can
include. It also assists to compute the excellent time for tour. 3A’s strategies are followed by the
Scheduling and planning that is accessibilities, amenities and attraction. With respect to the data
it can stated that scheduling and planning is the procedure which assists to compute the section
size, quality of travelers’ accommodation and the amount of visitors.
Creation of brochures- the brochures assists the travelers through offering whole explanation of
the packages of tour which is offered through the tour operator. Thus, it is vital for the tour
suppliers to make brochure and allocate it between the consumers or purchasers through various
other mode of communication.
Advertising, operation and execution- This phase assists for endorsement of the brochures and
allocating it to the purchasers.
Post tour management- within this phase, the practices of the travelers are studied through
obtaining feedback from the travelers. Examining this feedback is most critical for the industries
as it assist to expand the business actions in future
2.2
Various other viewpoints to contact the many aspects for the holidays:
Contracting: The tour provider needs to sign contract with the airlines and hotels. It also
computes the amount of travelers before the journey starts. It is critical portion of the
development of packages as the tour suppliers has made advanced booking of flights and hotels
and paid. The contracting is made before the vacations date as wide amount of travelers are eager
to travel the similar spots.
Fixed contract- within this procedure, the hotels and tickets are reserved in advance. This
procedure is useful for the provider as it reduce the risk of cancelation of the holiday’s packages.
Room- this procedure is popular between the hoteliers (Gavalas et al., 2015). It declares that
total bed and rooms are sold and if some rooms are vacant then the manager of the hotel directly
contact with the tour operators. Within this procedure, the tour operators have to book the beds
and rooms before and at predetermined date.
8

Flights: the tour industries reserve small number of seat within the flight. If total seating
arrangement are sold and to be paid then it can demands for the additional reservations. If the
seating arrangements are vacant then it could directly come back to the airlines industry in
assured period of time.
Ad-hoc contracts: Within this technique, the tour industries prepare a contract when there in
requirements of flight and beds. It reduces the aspects of threat management. This procedure is
helpful for individual industries like adventurous and luxury tour industries.
Charter flights: It is booked by the tour operators to travel from one spots to another.
Hotel: it performs an essential role in choosing the fame of the travelling spots. If the travelling
sites are not capable to offer better facilities of foods, hotels and accommodation and if they are
not capable to meet the needs and demands of the travelers then it cannot attract the interest of
the latest travelers.
Attraction: the attraction perform vital role in improving the fame of the travelling spots (Lee,
2015). It assists to create income for the administration, develop the living standard of the native
inhabitants and also assist the industry to attain profit.
Transport: transportation performs essential roles in choosing the fame of the travelling spots.
The facilities of transportation within travelling spots have to be handling appropriately and no
problems have to generate for the travelers because of transportation service of the travelling
spots.
Different types of tour operations
Outbound operators- outbound operators are the industry or the representative of the tour who
grow the holiday’s packages internationally for the travelers. This kind of tour operators mostly
trade the packages of tour to the travelers who desire to go to the abroad nations.
Inbound operators- these kinds of tour operators have directly connected to their purchasers.
They offer services to the purchaser from the beginning to last of the journey. The inbound
operators offer data regarding the travelling spots, hotels, currency and the tour.
9

Domestic operators- the domestic operators meet the requirement and needs of the native
marketplace. The major goal of the industry is to meet the needs of the domestic tour and travel
segment.
Ground Operators- ground operator performs essential role at the time of holiday because the
common needs and wants of the travelers are fulfilled through the tour operators. These
operators make an effort to fulfill all the needs and desire of the travelers by providing excellent
facilities.
2.3
Total students= 40
Accommodation for each person= 90 Euros (every person accommodation for 5 days)
Then total cost for accommodation= 90*5*40= 18000 Euros
The rate of conversion is 1.15 Euros is 1 pound, the after conversion 18000 Euros is equal to
15652 pounds
The 45 seaters coach cost= 7400 pounds
Local guide costs= 920 pounds
Total expenses at the time of accommodation and travelling=23972
Profit margin of the tour operators is 30%
Then, 23972/30%= 7191.60 pounds
Total expenditure at\ the time of accommodation and travelling= 23972+7191.60= 31163.60
pounds
Total expenditure at the time of travelling and accommodation per person= 31169.60/40= 779.40
pounds
So, the total expenditure including travelling and accommodation per person= 779.40 pounds
Conclusion
10

Through examining the analysis it can be mentioned that the transportation performs very crucial
part in tourism. Additional essential segment of holiday is the rivalry among two rivals industries
working within tour and travel segment. it also stated that vacation planning is time taking and
also very complex.
11

LO3
P 3.1
To expand the brochure for the packages of tour, it is necessary for the operators to examine the
outlooks and the needs of the consumers. The brochures includes compete data regarding the
packages which are offered through tour operators. The major goal of beginning of brochures is
to improve the status of the brand of the industry.
The Planning decisions:
Cost- it is among the one essential aspect which includes within the enhancement of the
brochures (Deonandan, 2015). This aspect offer financial support for the supply and formation of
the brochure.
Formatting- it is essential portion within the formation of the brochure because it help in
achieving the consumers. The structure of the brochure is prepared through examining some
aspects like photograph, quality of paper and size of the font and font style
Budget and target market- it is vital to identify the section of open market with respect to that
brochure is prepared. It assists the industry to identify the targeted consumers and avoid the
industry from creating additional brochure.
Considering print design- this technique is examined as an essential portion in preparing the
brochure because it assists the industry to attract the mind of modern consumers and hold the
existing consumers of the industry.
Production steps and timescale- the entire process of preparing the brochure is necessary
through the management of the industry to appreciate the aims and objectives of the brochures.
P 3.2
Different traditional brochures have been mentioned below:
CD-ROM- It is mentioned as it is the division of traditional brochures because it contains the
photograph of all hotels for the entire session. It is stated as the strong tools of advertisement
which can be prepared at low price. There are simple to assign and it has very less price in
compare to printed brochure.
12

Leaflets/Flyers- leaflets need low cost in manufacture and it can be circulated effortlessly. These
are correct substitutes of traditional brochure and are useful in unique sale and during end pacts.
Application- with respect to the recent situation, person from the corner of the globe is
passionate to the mobile phones. The individual need the application that can be utilized by the
mobile phone. The tour industries have to increase application for mobiles which could simply
contact through the consumers by their mobile phones.
Internet- because of the improvement of the internet, there is growth of many social platforms
where people expend their times. This platform is very affordable and industry utilizes this
platform for their promotion of their goods and facilities.
Television- the television utilized as the replacement to the traditional brochure (He & Wang,
2012). The tour operators can encourage their facilities and packages on the advertisement in TV
that will help the industry to attract awareness of huge amount of travelers.
P 3.3
Mass market tour operator- these kinds of tour operators increase packages of holiday which
includes entire facility which are necessary within vacation like flight, transportation and
accommodation. This tour industry sell huge amount of travel packages to the travelers because
the industry has proven it existence within the tour and travel segment. First Choice holidays,
Thomson holidays and Thomas Cook are the industry w these all are tour operators and all these
operators are comes in this segment.
Specialized Tour operators- It has observed that there is a vital growth within the needs and
requirements of specific tour operator (Chand & Katou, 2012). These kinds of tour operators
offers many sorts of holiday packages like hiking, safaris, sailing or cycling, cruise tour,
adventurous tour and family holiday.
Recommendation
With respect to the examination it can be stated that the travelers have to prefer specific tour
operators on the huge open market. As the definite tour operator offer various packages to the
travelers.
13

LO4
P 4.1
The tactical and strategic decision perform fundamental role within tour and travel companies.
The tour industries have to increase useful methods to apply the strategic decision inside the
industry. The trail-finder carries out the strategic decision within the business action of the
industry for the improvement of the wealth and the enhancement of the business. There are some
aspects of strategic decision are stated below:
Image branding and positioning- this policy is applied through the Trail Finder in conformity
to develop the status of the brand of the industry.
Choice of Services- the facilities offered through the tour industry is decided and increased with
respect to the needs and desires of the travelers (Romero and Tejada, 2011). To appreciate the
needs of the travelers the industry wants to compute the portfolio of the consumers.
Pricing Strategy- the pricing strategy is stated as essential tools of marketing and performs a
vital role within marketing mix of the industry. There are many sorts of pricing strategies that are
low-priced value, value of money, and premium pricing.
With respect to the premium pricing policy, the industries place the cost of the goods and
facilities over the market cost to generate status of superior quality of goods within the thought
of the travelers.
4.2
Tactical decisions
Fluid pricing: the tour operator and low-price airlines are utilized these kinds of approach.
Thomas Cook utilizes this approach to trade their packages of holidays at very reasonable rate to
the consumers.
Yield management- these kinds of administration assist the tour industry to appreciate the
performance of the travelers to raise the income of the industry (Batabyal & Alao, 2015). These
types of methods are first applied through the Airlines companies.
14

Consolidation- it happens when the flights are cancelled and displaced to different flights to
enlarge the gap on aircraft and also saving price (Camprubi et al., 2014). Thomas Cook, it is a
tour supplier within UK which works it business purpose within worldwide platform.
15

Conclusion
From the above assignment it has concluded that the transportation performs very crucial part in
tourism. Additional essential segment of holiday is the rivalry among two rivals industries
working within tour and travel segment. It also stated that vacation planning is time taking and
also very complex
16

Reference
Barratt, M., Choi, T.Y. & Li, M. 2011, "Qualitative case studies in operations management:
Trends, research outcomes, and future research implications", Journal of Operations
Management, vol. 29, no. 4, pp. 329-342
Batabyal, A.A. & Alao, O. 2015, "On the Sale of Package Tours to Infinitely Many Possible
Types of Tourists”, International Journal of Tourism Research, vol. 17, no. 1, pp. 1-3.
Camprubi, R., Guia, J. & Comas, J. 2014, "Analyzing Image Fragmentation in Promotional
Brochures: A Case Study of Two Urban Destinations", Journal of Hospitality & Tourism
Research, vol. 38, no. 2, pp. 135-161.
Chand, M. & Katou, A.A. 2012;2011;, "Strategic determinants for the selection of partner
alliances in the Indian tour operator industry: A cross-national study",Journal of World
Business, vol. 47, no. 2, pp. 167-177.
Deonandan, R. 2015, "Recent trends in reproductive tourism and international surrogacy: ethical
considerations and challenges for policy", Risk management and healthcare policy, vol. 8, pp.
111.
Dodds, R. & Kuehnel, J. 2010, "CSR among Canadian mass tour operators: good awareness but
little action",International Journal of Contemporary Hospitality Management, vol. 22, no. 2, pp.
221-244.
Espino-Rodriguez, T.F. & Gil-Padilla, A.M. 2015, "The structural and infrastructural decisions
of operations management in the hotel sector and their impact on organizational
performance", Tourism and Hospitality Research, vol. 15, no. 1, pp. 3-18.
Festa, P., Guerriero, F., Lagana, D. & Musmanno, R. 2013, "Solving the shortest path tour
problem", European Journal of Operational Research, vol. 230, no. 3, pp. 464-474.
Gavalas, D., Kasapakis, V., Konstantopoulos, C., Pantziou, G., Vathis, N. & Zaroliagis, C. 2015,
"The ecompass multimodal tourist tour planner", Expert Systems with Applications, vol. 42, no.
21, pp. 7303-7316.
17

Golding, P. 2011, Connected services: a guide to the Internet technologies shaping the future of
mobile services and operators, Wiley-Blackwell.
He, Q. & Wang, X. 2012, "Realization of sustainable development of tour engineering land:
Guided by the government and participated by the public", Trans Tech Publications Ltd, Zurich,
pp. 3628.
Lee, C. 2015, "Tourist satisfaction with factory tour experience", International Journal of
Culture, Tourism and Hospitality Research, vol. 9, no. 3, pp. 261-277.
Robinson, P., Heitmann, S. and Dieke, P.U. eds., (2011). Research themes for tourism. CABI.
Romero, I. and Tejada, P., (2011). A multi-level approach to the study of production chains in
the tourism sector. Tourism Management, 32(2), pp.297-306.
18