Analysis of Travel and Tourism Industry

The provided report discusses the importance of travel and tourism in generating revenue for a country. It highlights the changing trends in traveling, with people opting to visit multiple places during their holidays. The assignment emphasizes the need for proper planning and coordination among stakeholders, including tour operators, hotels, and transportation services. It also mentions the significance of sustainable logistics and supply chain management in the tourism industry.

TOUR OPERATION
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 The effects of recent trends and development in tour operations industry...........................1
TASK 2............................................................................................................................................2
2.2 Stages and timescale included in developing a holiday plan................................................2
2.3 Calculation of selling price of holiday..................................................................................5
TASK 3............................................................................................................................................5
3.1 Evaluation of planning decisions takes for brochure............................................................5
3.2 Assessment of suitability of alternative to a traditional brochure.........................................6
3.3 Evaluation of suitability of different methods of distribution...............................................7
TASK 4............................................................................................................................................8
4.1 Evaluation of strategic decision undertaken by the tour operator.........................................8
4.2 Comparison of tactical decision taken by a tour operator.....................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Tour is defined as an activity that is done by an individual or a group where they travel
from one place to another just to spend some leisure time with their families (Barratt, Choi and
Li, 2011). This can be with the purpose of business or spending some vacations. Company that
has been taken for this assignment is Thomas Cook as it is one of the leading companies in
United Kingdom. The report will highlight the effects of current trends in the industry of travel
and tourism. Stages and timescale is also mentioned in the assignment. Along with this,
suitability of different methods of contracting for various components is also mentioned in this
report. In addition to this, traditional brochure for various types of tour operator is included in
this assignment. Lastly, it will carry out comparison of tactical decision that can be used by
different situations.
TASK 1
1.1 The effects of recent trends and development in tour operations industry
Trends of travel have changed with the course of time. As the economy has increased, the
power of expenditure has also raised and due to this, more and more people are preferring to
travel so as to freshen up their mind. According to the current market situations, industry is
growing at a rapid speed and because of which economy of the nation is also increasing. Some of
the current trends are mentioned as follows in order to understand it in a better manner:
Implementation of E-Commerce technology: With the change in course of time, new
technologies have evolved and using these tools is providing maximum profits to different
companies (Cook, Hsu and Marqua, 2014). This includes online promotion of their activities
through websites, social media and many more. It provides entire information regarding the
schemes and offers implemented by the company.
Increasing in spending habit: According to the current market situations as the economy
is increasing, the capability of spending money is also increasing. They are travelling various
famous destinations in order to spend some time with their families and friends. Apart from this,
industry of travel and tourism has given a large number of opportunities to people living there.
Thus, they are playing some or the other role in increasing the revenues of the nation.
Change in demographic pattern: According to the current scenario, people are more
interested in travelling to exotic places. Thus, before making a proper plan, they analyse the
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demographic pattern so that they can make accurate action plan. Other than this, tour operators
are focusing on making appropriate trip packages that are as per the clients’ choices and
preferences (Dietz, 2011).
Focus on customer's satisfaction: Although all travel and tourism sector works for a
common goal i.e. to provide better services to its clients. Therefore, they must work as per the
needs and wants of the customers. For example: many organisation that are working in this field
provides variety of prices but they must ensure whether the cost they are implementing will be
paid by customers or not.
Apart from this, there are various other trends which are utilised for giving excellent
facilities and services:
Mobile application: In context with human, mobile technology has improved and made
the life easier. Nowadays, people can find any kind of information through phones. Thomas
Cook is taking advantage of this and they are making applications for their company which can
be accessed by everybody. Through this, people can know about the offers they are providing to
any particular destinations (Evans, Stonehouse and Campbell, 2012).
Virtual reality: This is a kind of modern tool that is used by most of the company so as to
give customers an excellent services of wonderlands or any amusement parks. Therefore,
Thomas Cook is using this tool in order to provide live experiences by sitting in a room. This is
useful for those who cannot afford the expensive rates of travelling.
TASK 2
2.2 Stages and timescale included in developing a holiday plan
For giving effective results in context with tour packages, company must consider all the
aspects that are available in the market. This will help them in generating proper plan of action.
Along with this, Thomas Cook is determining customer's needs and preferences, trending
locations, attractive places and many more. Therefore, planning is a basic design that is formed
for having a systematic process (Grant, Wong and Trautrims, 2017).
Steps Description Time taken
Research and Data collection It is considered as a primary step under
which company conducts various
market research so as to evaluate the
For preparing the
entire process, it will
take around 3 months.
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current trends that are going through.
This will help them in knowing the
current pricing policies that are
available in market area or adopted by
other rival companies.
Negotiation This is a kind of process in which the
views of both the parties are concerned
so that final decision can be made.
Therefore, negotiation is done between
tour operators, vendors, owner and
many more. Thus, it helps them in
preparing better tour packages.
For completing this
process more
effectively it will take
around 2 months.
Development of tour After coming to a conclusion, it has
been analysed that Sri Lanka will be
the place for destination. As this
includes wild parks, ancient
monuments, heritage sites and many
more. Therefore, it will be the ideal
destination for the visitors.
Time duration for
accomplishing this
task is of 2 months
and it is suitable for
the same.
Determination of Price For determining the effective price
rates Thomas Cook has consulted
various service provider. This enables
them in offering better rates that they
can charge to its final consumers. Other
than this, they can incorporate different
strategies for improving their sales and
profitability.
It will take around a
period of one month
for completing the
task.
Marketing Tactics Marketing tool is considered as an
effective tool as it helps the
organisation in pulling attention of
For promoting there
activities and
formulating many
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maximum number of people. Thomas
Cook has made some changes in their
existing tour packages in context with
rates and destinations. Thus, it is
helping them in attracting more and
more customers.
strategies it will take
around 2 months.
After tour management For giving effective services and
facilities for a long time, it is necessary
that company takes proper feedback
from visitors. This will help them in
making changes if required. For this,
Thomas Cook can use questionnaire as
their tool.
For performing this
task in a better
manner, it will task
around 1 months as
collecting data and
analysing is a time
consuming process
(Guo and He, 2012).
It can be analysed that customers may have various view points according to the needs
and wants of the tour. So, it is necessary that company work according to the choices and
preferences so as to fulfil their demands. Thomas Cook has designed a perfect holiday vacations
for Sri Lanka and in their trip plan they have managed to involve heritage sites, wild parts,
natural beauty, some exciting water sport and exotic beaches. Thus, they have planned the entire
trip for giving best experience. To make it possible, tour operator has contracted with various
services provider for example: airways, accommodation, along with local suppliers. Some of the
points are mentioned below form which the concept can be understood:
Contractual relationship with hotels: While providing better services, accommodation
must be considered on a prior basis. During the process of hiring hotels it is necessary for the
company to ensure that sufficient amounts of beds are available. This will help travellers a
pleasant stay at specific destinations (Hoyos, Morales and Akhavan-Tabatabaei, 2015).
Contract with the transportation provider: It is considered as one of the important factor
that must be looked after by travelling company. Thomas Cook, are majorly using two types of
conveyance are airlines and railways. For this, they have pre-handedly booked all the tickets in
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advance because of which they get discounts on the same. Therefore, a better relation with
agents have given them advantage in availing the facilities.
Contract with sites: Some of firms mostly does contract with different agencies that takes
care of historical site. Thus, their contracts are based on fix purpose and whatever profit margin
is earned some part of them are given to these travel companies.
2.3 Calculation of selling price of holiday
Cost is one of the essential element that must be considered while making an effective
packages. There are some of the factors that is to be looked after and it includes profit margin
this will enable them in deciding a better price of the packages. Apart form this, it involves
travelling, accommodation and food items. In these all the prices are to be paid by the travellers
along with the service charges (Kerzner, 2013). The trip was designed for 6 nights and 5 days
and this will be sufficient for visiting the sites, parks and beaches. The entire trip will cost
around £40000 that is according to the profit margin. In order to remain in the market area for a
longer period of time they must set price that should give competitive advancement to the
company. Therefore, all the plans that are offering by Thomas Cook are attracting more and
more traveller towards their organisation.
Details Price(in £)
Accommodation cost 8000
Transportation cost 10500
Food costing 1750
Charges of tour guide 875
Total cost 21125
Add: Profit margin 7520
Sale price 28645
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TASK 3
3.1 Evaluation of planning decisions takes for brochure
Brochure is considered as an promotional tool that is used by a company so as to give
information about the desired trips along with their schemes and offers. Therefore, for
influencing a large number of travellers they are publishing brochure on a regular basis. Through
this, travellers can know about the latest schemes that company is offering (Khairat and Maher,
2017). Along with this, procedure of availing these facilities are also included in this. Thomas
Cook has incorporated this as it is less time consuming and the cost is relatively low.
Tour of Sri Lanka of 6 nights and 5 days has been designed in order to provide relaxation
from the busy schedule of their work. Therefore, a proper planning is done so as to make the
entire process complete in efficient timely manner. There are different planning steps and
decisions that are to considered while creating a brochure and these are mentioned below:
Identification of key issues: This is the first step that are to be followed in priority. This
assist them in identifying the problems that are need to be eliminated so as to a proper and
fascinating brochure can be made. Therefore, it help them in preparing a influencing brochure
that can attract more and more customers towards them (Lenahan, 2011).
Format: Under this, company tries to make a eye catchy format that can pull attention of
maximum number of people. Therefore, company must give relevant information about the trip
so as to give entire knowledge about a particular destination. For making that more effective
Thomas Cook is using interesting pictures of the destinations for making the brochure more
interesting and attractive at the same time.
Budget consideration: Every company has its own budget according to the capacity of
the company. Therefore, developing a brochure depends upon the funds a company have. As
Thomas Cook is a big tour operator before making a plan they are determining the customers
database in order to produce a effective brochure.
Target market: This is determined as the primary segment under which company focuses
on its own data base. If the tour operator will not being able to deliver or fulfil the requirement of
the brochure than it may be distributed at big levels (Luis, Dolinskaya and Smilowitz, 2012) .
Time limit: This is the factor that must be considered so that all the items are delivered
right on time. It will assist them in gaining the loyalty of customers for a longer period of time.
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Therefore, to prepare a brochure it will take around two months as it can be made after
evaluating all the factors.
3.2 Assessment of suitability of alternative to a traditional brochure
In order to providing better services it is important that tour operator focus on the
contemporary method of marketing. This will enable them in having proper information about
the market areas therefore, through this a better planning can be done. In the market areas
different contemporary alternatives are available for making a brochure under low budget as
well. Some of the alternatives are mentioned below:
E-brochure: For traditional brochure, e-brochure is considered as an important
alternative which can have an impact on the entire process (Martinez, Stapleton and Van
Wassenhove, 2011). In order to accomplish it in a better manner a better communication must be
carried out between operator and target segment. Thus, it is essential that an effective and
attractive brochure is developed that can grab the attention of maximum number of people.
Basically, brochure includes a brief detail about the entire holiday package. Thomas Cooks
utilises different tools and techniques for developing a brochure which is cost and time effective.
Social media platforms: Now a days, this is one of the most influential and effective
tools in order to pull attention of number of customers towards them. Therefore, social media
platform is determined as one of the important tool for promoting their activities. This includes
twitter, Facebook etc., this assist them in pulling attention of large crowd. Thus, it is considered
as a perfect plan for providing information regarding the trip.
Direct mailing: Companies that are working in the sector of travel and tourism must
work according to the current market economy. According to the present scenarios most of the
organisation rely on mail marketing and provides information through newsletters and
promotional messages. Thomas Cooks is a renowned organisation which is famous for giving
services through out the world. They are optimising direct mailing tool for making aware its
customers about their schemes and offers. This helps them in providing details about the
upcoming packages along with special offers and schemes. Therefore, this will enable them in
generating more and more revenues and funds (Moutinho, 2011).
3.3 Evaluation of suitability of different methods of distribution
There are various approaches that are available in the market this help a company in
giving better services and facilities. Therefore, it assist a firm in carrying out its business
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operations in an effective manner. This may include different mediums such as direct selling,
telephonic sales, through travel agents etc., along with this, they are using other sources as well
like media channels and many more. Thus, it is important that they all the relevant informations
are provided through online and traditional way of promoting activities. Henceforth, Thomas
Cooks are utilising all the resources that are available to them for giving information to its end
customers as well.
Apart from this, Thomas Cook is taking help from external agencies on a contractual
basis so that they can provide better services and facilities to its visitors. Although it is a best
process but it can be higher at cost in some context. Therefore, different distribution process is
used by the company in providing offers to its end customers. In terms of Thomas Cook they are
gaining benefits through this process (Barratt, Choi and Li, 2011).
TASK 4
4.1 Evaluation of strategic decision undertaken by the tour operator
In order to operate their business in a better manner it is essential company make
appropriate strategies and plan of action. This can help them in performing the task in an
effective way. Therefore, in context with Thomas Cook it is helping them in accomplishing the
task according to the day to day operations. In terms of travel and tourism it has been evaluated
that nature of seasonal firms is related with ensuring that there is flexibility in all business
operations so that all business activities are operated in effective and planned manner. The
strategic decision that are performed by business organisation are evaluated below as:
Segmentation and targeting: To operate a business, decision making plays an important
role. This can be done according to the segmentation of the people which may includes targeting
customers in a company (Cook, Hsu and Marqua, 2014). Therefore, it can be possible after
evaluating the performance of workers on a regular basis thus, market analysis can be one of the
effective tool for the same. Henceforth, Thomas Cook is working according to the current market
situations so as to sustain a better position at market area.
Pricing strategy: Price is what that are paid by the consumers so it is important that
company fix rates according to the current market situations. Travel companies may also
consider the choices and preferences of the travellers in order to know amount which tourist can
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pay for specific destinations. Therefore, the prices must be reasonable so that maximum number
of people can avail.
Promotional strategy: As per the current market situations company can use various
promoting strategies for making their activities and company popular amongst others. For this,
Thomas and Cook makes proper strategies which is helping them in taking appropriate decision
according to the situations and circumstances (Dietz, 2011).
4.2 Comparison of tactical decision taken by a tour operator
Tactical decision helps an organisation in order to run their business in an appropriate
manner. This help them in avoiding any kind of confusion in their activities and helps them in
making proper tour packages. For this negotiation is also done with service providers in order to
make proper arrangements. This includes accommodation, transportation and food facilities.
Some of the tactical points are mentioned below:
Increasing occupancy of the contracted beds: For giving better services the management
of Thomas Cook has tried to increase the number of beds and for this they have contracted with
different ventures. This will gradually increase the sales and profitability of the company along
with this it will provide them maximum benefits (Evans, Stonehouse and Campbell, 2012) .
Utilisation of aircraft and coach sales: In context with Thomas Cook, they have
managed to occupy sufficient amount of aircraft seats. This will enable them in generating more
and more revenues other than effective benchmarks. Therefore, all the details about the fares are
included in their brochure.
CONCLUSION
From the above report it has been evaluated that, travel and tourism is one of the essential
element that plays an important role in increasing the revenues for the country. According to the
current market scenario, trends of travelling has changed now people tend to travel to number of
places in order to spend their holidays with their families. Therefore, for this, it is necessary that
they must design a proper plan about the activities they will do in the vacations.
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REFERENCES
Books and Journals
Barratt, M., Choi, T.Y. and Li, M., 2011. Qualitative case studies in operations management:
Trends, research outcomes, and future research implications. Journal of Operations
Management. 29(4). pp.329-342.
Cook, R. A., Hsu, C. H. and Marqua, J. J., 2014. Tourism: the business of hospitality and travel.
USA: Pearson.
Dietz, D. C., 2011. Practical scheduling for call center operations. Omega. 39(5). pp.550-557.
Evans, N., Stonehouse, G. and Campbell, D., 2012. Strategic management for travel and
tourism. Taylor & Francis.
Grant, D. B., Wong, C. Y. and Trautrims, A., 2017. Sustainable logistics and supply chain
management: principles and practices for sustainable operations and management.
Kogan Page Publishers.
Guo, X. and He, L., 2012. Tourism supply-chain coordination: The cooperation between tourism
hotel and tour operator. Tourism Economics. 18(6). pp.1361-1376.
Hoyos, M. C., Morales, R. S. and Akhavan-Tabatabaei, R., 2015. OR models with stochastic
components in disaster operations management: A literature survey. Computers &
Industrial Engineering. 82. pp.183-197.
Kerzner, H., 2013. Project management: a systems approach to planning, scheduling, and
controlling. John Wiley & Sons.
Khairat, G. and Maher, A., 2017. Integrating sustainability into tour operator business: An
innovative approach in sustainable tourism. ARA: Revista de Investigación en Turismo.
2(2).
Lenahan, T., 2011. Turnaround, shutdown and outage management: Effective planning and step-
by-step execution of planned maintenance operations. Butterworth-Heinemann.
Luis, E., Dolinskaya, I. S. and Smilowitz, K. R., 2012. Disaster relief routing: Integrating
research and practice. Socio-economic planning sciences. 46(1). pp.88-97.
Martinez, A. J. P., Stapleton, O. and Van Wassenhove, L. N., 2011. Field vehicle fleet
management in humanitarian operations: a case-based approach. Journal of Operations
Management. 29(5). pp.404-421.
Moutinho, L. ed., 2011. Strategic management in tourism. Cabi.
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