Tour Operations Management Project

This project explores the tour operator's industry, analyzing current trends and developments, different types of operators, their products and services, and the impact of trends on the industry. It also examines strategic and tactical decision-making, including pricing strategies, marketing tactics, and distribution methods, to understand how tour operators can effectively manage their operations and achieve success.

TOUR OPERATION
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
AC1.1 Current trends and developments on the tour operators industry...............................1
TASK 2............................................................................................................................................3
AC 3.1 Strategies that are plan for design of a selected brochure for LCB tour company....3
,AC 3.2 Suitability of alternatives to different types of tour operator give a brief introduction
of the provided topic...............................................................................................................4
AC 3.3 Suitability of different methods of distribution for different types of tour operator. 5
AC 4.1 Strategic decisions made by different types of tour operator....................................6
AC4.2 Tactical decisions taken by LCB tour company and travel in different situations....7
CONCLUSION -.............................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Tour operations management relate to arrange the tour and holidays for its customers,
they advertise their product with social media, brochures, TV, travel websites etc (Giaoutzi, M.,
2017). this project is based on LCB tour company and travel which offer kind of tour packages
like business tour, holidays tour and sports tour. This study shows current trends and
developments in tourism industry, stages of tour planning. It also describes marketing and
pricing strategies of different type of tour planners. It also includes study about types of contract
use in tour industry with other agencies and suppliers. Evaluate suitability of distribution channel
and marketing tools followed by LCB tour company and travel.
TASK 1
AC1.1 Current trends and developments on the tour operators industry
Selected type of tour operators
TOUR OPERATION-MANAGEMENT
Effects of current and future trends on tour coordinators
Inbound tour operators-
These tour operators are
working in the geographical
boundary of a country. They
set their tour inside the country
They are working on the small
segment, these operators
provide a limited service to its
customers.
Current/Recent trends and
Outbound tour operators-
Lcb tours and travel are
included in this type of tour
and travel operates, they work
on international level these
operators provide wide range
of facilities to its customers
like arranging visa, tickets,
hotels, transportations etc. this
type of tour operators typically
work with international
travellers (Tour Operators
Types, 2018.).
Specialist tour operators-
These tour operators provide
all type of adventures tour
activity like jungle safari,
Desert safari, trekking, Scuba
diving, cycling etc. all the
activities are arranged by the
specialist tour operators. These
tour operators always seek for
the unique activities held in the
world like Tomatina festival
spain.
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developments
Advancements in technology-
Technology in tour and travel
industry is developed on daily
basis. There is always
something new to the
customers there are many
platforms which are created by
the tour operators for their
customers to convenient there
tour planning like
customization of tour package,
descriptive information,
accessible itineraries etc. the
developments in tour
operations are developed many
websites, development of tour
operators agencies, and many
gadgets are developed that can
book the tour in a minute.
They allow travellers to
arrange everything they need
on the particular locations.
Low cost carriers- low cost
carriers relate to cheap mode
of travel there are many
transportation system which
help to make travel accessible,
current trends of low cost
carriers depend on the demand.
There are many developments
are going around the world
which make more connectivity
option from one place to other
place.
Increased environmental
awareness and responsibility
tourism
This trends aware the
traveller to do less social,
economic and environment
impact on nature. Respect and
protect the environment and
make a sustainable
environment.
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TASK 2
Covered in ppt
AC 3.1 Strategies that are plan for design of a selected brochure for LCB tour company.
A brochure is basically a pamphlet which many organisation used them for the promotion
of there brands or entity. For example brochures of hospital, tourism, restaurants and coaching
centres have used by many of the firms to introduce there brands in the market so that more and
more people get to known by it. A LCB organisation uses different deigns in order to make their
brochure more attractive as well as which are affordable by them.
Figure 1: brochure of outbound tour operator
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Figure 2: domestic tour operator
 Cost: For every firm it is important to develop a brochure which is of adequate cost. lcb
which is a specialised organisation in tourism. Its main motive is to introduce a new
strategies and plans regarding the tourism, to the recent people and also to get connected
with the multiple numbers of youngsters in order to make aware about their organisation.
So for deigning there brochures they use good quality papers, nice colour combinations
with multiple numbers of tourism images which attract most of the youngsters to be a
part of it. After that they explore print options and then make thousands of copies of that
pamphlet in order to circulate there brochures to a wide area so that everyone gets to
know about there LCB organisation. Cost of outbound operator is high and they invest
high amount in preparing the brochure. Cost of domestic tour operator for brochure is
low.
 Deciding the format: After deciding the type of pages and the printing quality, then it
comes to the format procedure. The lcb tour uses booklet format which proves to be
much more effective to there organisation. As there booklet consists of introduction,
content and there location areas where it has been located with a lot of attractive images
that enhance the growth of the firm. Youngsters found this type of brochures much more
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helpful as compare to a single pamphlet as the booklet consists of all type of information
regarding the LCB tour company. Format of outbound tour operator is normal whereas
domestic tour operators implements simple format. Font size and paper is very normal.
 Target market and budget: LCB tour company plan there brochures according to the
market budget for example if the cost of good quality papers is high than they have to
deign there brochure accordingly. So they will use cheap quality papers, low cost printers
and etc for deigning there brochures. Domestic tour operators keeps low budget for
brochure designing.
 Determining print specification: This includes the nature of destination for example lcb
tourism used to organise holidays package mostly for hill stations that also for couples
and family members so they apply most of the images related to hill stations which attract
the people to be a part of it. the size which the lcb tourism used in there brochure is 14
and the style of font is italic which makes it much more attractive and visible to the
youngsters as well as different age people to join lcb tour.
,AC 3.2 Suitability of alternatives to different types of tour operator give a brief introduction of
the provided topic
E-brochure- Brochure in a paper used to introduce service and product to the end
customers. Brochure contain photo, list, information, offers, special announcement, address and
contact information about organisation. E- brochure is also a brochure but in electric form rather
than paper. E brochure are cheaper than paper brochures and quick distribution is possible only
in one click, save paper waste and cost, easily editable. Inbound Tour Operators can do
advertisement beyond geographical constraint, Mass Market Tour operators can minimise their
distribution cost.
Travel fairs (WTM, ITB) - People with same interest area and hobby go to the fairs.
Travel fair in meeting place of tour supplier, customer and supportive service supplier like
traveller, hotel, food chain, other distributes. In trade fair tour operator try to give information
about culture, temples, adventure activity, natural sights. They use big display, game activities,
virtual tour tools etc. it is a bit expensive practice so Direct Sell Tour Operators, Direct Sell Tour
Operators, Specialist Tour Operators are suitable for this. Director tour operator can participate
in government tour fair as they are less expensive than another.
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Social media – Advertising through social media like on Facebook, twitter, Instagram,
google plus, Pinterest are the tool which is now used by every organisation. Also, for tourist it
plays a referrals' role as well. Shared experience and rating about hotel, tour provider and travel
have more impact on customer than organisations own marketing campaign. LCB tour company
and travel use social media to get recommendation and testimonial and address customer
problems, also introduce their new tour packages and schemes. Social media must use by every
kind of tour operators. Social media gives world of mouth sale as well as brand positioning and
brand image (Zeng . and Gerritsen., 2014).
 Press (newspapers, magazines) –Newspaper and magazines are sources of information
for a limited geographical area audience. Newspaper is affordable and in trend today as
well. Outbound Tour Operators can provide information of their tours according to
targeted customer like deluxe tour can be advertise in premium newspaper and season
and economical tour package can print in general newspaper. LCB tour company and
travel uses high quality picture and display offer and discount in newspapers. Newspaper
assure delivery of services for example person who need these service definitely. Pay
attention on that section of newspaper (Buhalis and Amaranggana, 2015)
AC 3.3 Suitability of different methods of distribution for different types of tour operator
Brief introduction of task
Direct Distribution- In direct distribution an organisation communicate direct with its
target customer or stakeholders without involving third party. It comprise advertisement, door
selling, coupons, internet marketing, demonstrations. Domestic tour operators who have
geographical reach with their customer can use this format of distribution (Vellas, 2016)
Two level Distribution- In two level distribution producer sale the product or service to
retailer and retailer resale in to the customer. This format suits where retailer can not produce all
the good by himself cause of lack of fund, geographical hurdle in distribution, lack of knowledge
of market like customer segment, customer, external and internal environment working, narrow
product line. Intermediaries provide regular demand, communication, short service according to
customer need, reduce distribution cost of wholesaler. Mass Market Tour operators who target
large group can use with help of travel agency, travellers, hotels, local market. Wholesale Tour
Operators who buy service and give to another tour operator.
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Online travel agencies- Online travel agencies offer tour services directly to customer
and they also make contact with supplier of various accommodation service provider, traveller,
airline, restaurants to sale their product indirectly to agency's customer and contacts. For
example a travel agency located in other country has relation with LCB tour company and travel
for avail lcb's service in manage their outbound tours. Wholesaler tour operators and specialist
tour operator are the ideal for this distribution format. Both parties give discounts to each other
in services.
Review sites- Review site are come in trend because of increase internet use and high
awareness, education level among people. Review sites are expert in sharing experiences, view
abut quality of product, individual perception to a business or service. These sites gather
information from social sites, online survey, feedbacks and from expert critic of that industry.
Review sites works for tourism provide experience of customers who recently visited. Customers
who are planning to go another country will use this information to decision making. Except
wholesaler tour operator, it is suitable to all kind of operator like inbound, outbound, retailer,
specialist, domestic tour operators. LCB tour company and travel are more focused to get high
reviews and rating on these sites.
AC 4.1 Strategic decisions made by different types of tour operator
Strategic decision are long term decision taken by the organisation for meet their
vision,mission and objective.
Pricing Strategies – strategic pricing decision are based on competitors pricing or value of the
service to a customer rather than cost of the productions service sector have intangible cost of
product,they use pricing by value. for example LCB tour company and travel take high price for
tour which are planed for rich people and add value to the services providing to them..
Surcharge policy- Surcharge is additional amount demand over normal price. Surcharge
basically charge when there is any emergency happen, shortage of product supply, for unique
feature provide or extra amount changed by company for its brand image and position. Surcharge
quote by Outbound Tour Operators to recover exchange rate of currency of other country,
Specialist Tour Operators get surcharge for special arrangement for providing extra facility like
medical assistance to sports tour, special cloths for cold temperature conditions etc., provide
business banquet for business tours seasonal demands, tie ups with universities for education
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tours. Discount pricing policy is given wholesalers. LCB tour company and travel uses
customised pricing policy according to customer and type of tour package
Positioning and image/branding- Brand position means occupy a special space and
impression in customer’s brain as brand loyalty, brand positioning . Brand positioning give
customer information about what an organisation offers to customer which is different from
others. Outbound and inbound tour-operators earn brand image by rating, recommendation,
referral, advertisement like e- brochures, experience story telling etc. special tour operators
research the requirement of customer, make segments and offer customised package to the
customer, retail tour operators make direct communicate with customers.. all tour operators
communicate about uniqueness in service they are providing.
AC4.2 Tactical decisions taken by LCB tour company and travel in different situations
Tactical decision are short term decision taken by an organisation to meet short term
objectives. These decision help in counter the short term effect occur by any external
environmental change. As change in pricing and marketing policy to counter the competitor's
strategy .
Tactical pricing – . LCB tour company and travel offer low price package to students,
low social class people. Low price for new market at introduction, whereas high price discount
for new customers, loyal customers, premium price for business class person. Pricing of the
service also gets affected by cost. Inbound and outbound and special tour are cannot be so low
price because of exchange rate of different countries. skimming price policy can be taken when
organise any special tour like educational and business tour etc.(Alegre and Sard, 2017
Tactical Marketing- marketing Tactical is a short-term decision to grab competitor
advantage, to introduce new product, for seasonal product or time sensitive products. A tour
operator can offer economical tour package, free complimentary service like free medical check
on tour, free meal for one night, deals, offer gifts to the customers, organise event and fair.
Tactical marketing on internet can be perform by increasing frequency of advertisement. LCB
tour use tactical marketing for geographical tour because tour planning can be done to specific
country only in tourist season. .(Tsaur and.et.al., 2018)
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CONCLUSION
It is been concluded form the above study that tour and travel agencies are putting their so
much effort in proactive actions to meet higher customer satisfaction. Now tour is customised
according to trend and special need of customer than traditional tours. Proper pricing policy and
marketing tactics are practising with co coordinating with all internal and external factor. Brand
image and positioning are key concern of this industry because they deals in intangible service
only. A bad experience or negative image can hamper the customer satisfaction and instant
decrease in sale. Different type of tour operators uses diverse format of distribution, marketing,
and pricing.
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REFERENCES
Books and Journals
Alegre, J. and Sard, M., 2017. Price strategies by German and British tour operators in Mallorca.
Journal of Hospitality and Tourism Management.33. pp.93-102.
Andrus, D.M. and et.al., 2015. Distribution and Sales Management Strategies Related to
International Involvement Levels. In Proceedings of the 1989 Academy of Marketing
Science (AMS) Annual Conference (pp. 465-468). Springer. Cham.
Buhalis, D. and Amaranggana, A., 2015. Smart tourism destinations enhancing tourism
experience through personalisation of services. In Information and communication
technologies in tourism 2015 (.pp. 377-389). Springer. Cham.
Giaoutzi, M., 2017. Tourism and regional development: New pathways. Routledge.
Hudson, S. and et.al., 2015. The effects of social media on emotions, brand relationship quality,
and word of mouth: An empirical study of music festival attendees. Tourism Management.
47.pp.68-76.
Masiero, L., Nicolau, J.L. and Law, R., 2015. A demand-driven analysis of tourist
accommodation price: A quantile regression of room bookings. International Journal of
Hospitality Management. 50. pp.1-8.
Nagle, T.T. and Müller, G., 2017. The strategy and tactics of pricing: A guide to growing more
profitably. Routledge.
Popov and et.al., 2016. Trends in the development of hotel business in the world and the Russian
Federation. International journal of applied business and economic research. 14(9) p.5843.
Smith, S.L., 2014. Tourism analysis: A handbook. Routledge.
Tsaur, R.C. and et.al., 2018. Strategies for cross-border travel supply chains: Gaming chinese
group tours to Taiwan. Tourism Management. 64.pp.154-169.
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Vellas, F., 2016. The international marketing of travel and tourism: A strategic approach.
Macmillan International Higher Education.
Zeng, B. and Gerritsen, R., 2014. What do we know about social media in tourism? A review.
Tourism Management Perspectives.10.pp.27-36.
Online
Tour Operators Types. 2018. [online]. Availabel through
<http://www.iibmindialms.com/library/operation-management/supply-chain-management/tour-
operators-types/>
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