Tour Operators' Business Activities and Strategic Decisions

The report discusses the business activities of tour operators, focusing on ICB Tour Operator's collaboration with Hotel Hilton to deliver excellent customer services. It explores current trends in tour operators, strategic decisions made by tour planners, and evaluates different types of tour operators. The document aims to improve functional effectiveness and provide better facilities to customers.

TOUR OPERATION
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Description on the analyse the effects of current trends and development on the tour
industry........................................................................................................................................1
TASK 2............................................................................................................................................3
2.1 Define the stages and timescale involved in developing holidays. ......................................3
2.2 Description on evaluation on suitability of differ method of contracting for different
components of holiday. ..............................................................................................................4
2.3 Calculation on the selling price of holiday from given information. ...................................4
TASK 3 ...........................................................................................................................................5
3.1 Description on the evaluation of planning decision taken for selected brochure. ...............5
3.2 Access the suitability of alternatives to the traditional brochure for differ tour operator. ...6
3.3 Description on the evaluation of different method of distribution to sell holiday for tour
operator. .....................................................................................................................................7
TASK 4 ...........................................................................................................................................7
4.1 Define the strategic decision made by differ types of operator. ..........................................7
4.2 Description on tactical decision select by tour operator in different situations. ..................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
The tour operation and management is one of the dynamic and service driven industry
and to be successful in the market they need to deliver high quality products to the customers
(Brennan and Bae, 2018 ). Thus, operators need to make the arrangement for the transport,
accommodation and tours package so that it can attract to the customers.
The present report is based on the Hilton in UK and they are working as the tour
coordinator. They must provide the effective services to the customer.
Thus, report need to look upon the various things as current and recent trends and
development, stages and time scales involved in developing holidays, various method of
contracting, selling price of the holiday, planning decision taken for the selected brochure and
the suitability of alternative tradition brochure for various tour operator. Lastly, the strategic
decision are needed to be made by different team operator.
TASK 1
1.1 Description on the analyse the effects of current trends and development on the tour industry.
EFFECTS OF CURRENT TRENDS AND DEVELOPMENT OF TOUR INDUSTRY
Company or a person who takes the full
responsibility of holiday and vacations
of the travellers (Crossley and
et.al.,2018 ). They must provide the
good facilities so that they can enjoy
their tour in effective manner. Thus,
there are various current trends that
affects the working of the tour
operation in the significant mode.
Types of Tour Operators
 Inbound Tour Operators-
They mainly works as to deal
with the making arrangement
for the foreign tourist at the
 Domestic tour operators- they works as to
promoting the beauty, diversity and culture of
the country and creates tour Packages as per
the choice of customers.
 Specialist tour operators- A tour operators
that typically combines the tour and travel
components in order to create the effective
package of holiday. The tour operator can be
specialised in destinations and have the wide
knowledge about the various places.
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time of visiting the country.
Inbound tour operators creates
holiday packages by identify the
need and wants of the
customers. The package must
be direct relates or are marketed
through intermediaries.
 Outbound tour operators-
there are may operators who are
basically specialised with the
creation of multi national
holidays. They makes
arrangements of the services as
visas and pick and drop
facilities with inbound tour
operators and ground operators.
They play their role as liaison
with ground and inbound tour
operators.
Current/Recent trends and developments
 Advancements in technology- The industry as
tourism is growing by the having wide growth
in development in technology. With use of
technical advancement there are possibilities in
order to enhance the quality and to reach tour
operators. It is also assistive in terms to make
time and cost effective.
 The effect of Brexit on Tourism- The
separation of the UK and EU impact on the
travel agreement and there it is expected to see
major consequences in terms to freedom and
movement of security. Thus, the British tourist
destination image is expected to have major
consequences in order to negatively impacted
the enhanced efforts of marketing.
 Low cost Carriers- The charges as
transportation also plays the crucial role in
terms to travel industry. Thus, lower the
amount of the transportation work as to
enhance the demand of products. Thus, airlines
provide the low-cost travelling facilities to the
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customers.
TASK 2
2.1 Define the stages and timescale involved in developing holidays.
There are various stages that get involved in order to develop the sightseeing and or this
ICB tour operators are taking various initiatives steps as-
Market research- It is one of the main objectives in terms to analyse and understand the major
attributes and that must relate with special market with tourist as well destination. It is typical for
the tour operators to arrange the all services for the individual (Fang, Yin and Wu,, 2018). In
this term, they decide to undertake below mentioned points and this all are defined in following
context as-
 Identification of the factor associated with economic, political, social and climate that can
impact over growth of package tours.
 To get effective approach to the suppliers.
 To take better policy decision.
 Planning and scheduling- It is the responsibility of tour operator to suggest better place to
the travellers. The time date and location all things are need to be decided so that things
can be scheduled in better manner (Ferguson, 2018 ). With help of planned out all
activities the customer can get the effective services.
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 Contracting- After finalising the locations, there are organisation for lodging, airline,
operators for transport and many more. There the tour operator provides option as to
negotiating directly with airlines or to get booked with by themselves.
 Costing of the package tour- in this, the total cost related to the project must be estimated.
It is crucial for managing tour in order to determine the financial worth of tour package.
The cost must be fragmented into various components as accommodation, cost for local
management and other expenses.
 Financial evaluations and pricing- The finalisation of the cost structure will be done by
the tour planner. In this, tour operator should work as to evaluate the monetary risk like
foreign exchange payments to be made in respect of airlines, hotels etc. Under it, cost-
based tour pricing takes into consideration the factor as total cost, product cost and rate of
return etc.
 Marketing of a tour package- under this, there are various vendors and they must be
taking into consideration as airlines, operators of transport and hotel in combining the
differ components of travel industry. In order to make it effective, the tour operator needs
to apply additional refined strategic aspects to satisfy the wants of the buyers.
 Developing tour marketing plan- In this, the plan associated with marketing is focused on
the goal of the enterprise. This is generally a short period of time and it will be guiding
by the tour operator for one or two years (Gonzalez‐Urango and García‐Melón,, 2018 ).
Thus, it will provide the clear direction with the function of tour marketing and in order
to make it effective the proper approach is need to be taken.
2.2 Description on evaluation on suitability of differ method of contracting for different
components of holiday.
The term contracting refers as to deal with the many contracts in order to identify the agreed
value of the price and product. In terms to plan the holiday effectively the better contracts are to
made so that holiday can be successful with planning of all other activities. In addition to this,
components of the holiday will be inclusive of the various features as hotel, transportation,
sightseeing places etc. Thus, these methods are defined in following context as are-
 Fixed Contract: This are the contracts that are based on the fixed price and it is effective
in bulk consumption and in the purpose of high level of the consumption. In this kind of
the contracts the service provides fix rate of the bookings and there are number of the
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people who takes the responsibility effectively (Inkson and Minnaert, 2018 ). It is
beneficial for having the large number of booking at the heavy discounts and class
facilities will be provided at the lower price.
 Allocation- In this, the tour operator get the discount with allotment and commitment
contract and that are primarily based on size of enterprise and bargaining power
exercised. The all the expenses will be allocated on behalf of the tour operator so that
greater facilities can provide to them.
 ad-hoc- It is the kind of the travel package provided by the operator at a one time. They
work as to provide the tailor-made solution to the customers. Thus, provide specialised
dietary option in terms to meet and provide the facilities as customized services.
2.3 Calculation on the selling price of holiday from given information.
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Particulars
Jan
uar
y
Feb
ruar
y
Ma
rch
Ap
ril
Ma
y
Jun
e
Jul
y
Au
gus
t
Sept
emb
er
Oct
obe
r
Nov
emb
er
Dece
mbe
r
Opening
balance of
cash inflow
450
00
810
800
149
400
7
218
777
6
289
226
4
360
763
0
433
403
7
507
164
9
5820
632
658
115
5
7353
390
8137
510
Average
consumers
400
0
406
0
412
0.9
418
2.7
1
424
5.4
5
430
9.1
4
437
3.7
7
443
9.3
8
4505
.97
457
3.5
6
4642
.16
4711
.8
Average
selling prices 205 205 205 205 205 205 205 205 205 205 205 205
Sales revenue
820
000
832
300
844
785
857
456
870
318
883
373
896
623
910
073
9237
24
937
580
9516
43
9659
18
Other income
400
0
400
0
400
0
400
0
400
0
400
0
400
0
400
0 4000
400
0 4000 4000
Total cash
inflows
869
000
164
710
0
234
279
2
304
923
2
376
658
2
449
500
3
523
466
1
598
572
2
6748
356
752
273
5
8309
033
9107
428
Cash outflows
Material
300
00
124
845
126
718
128
618
130
548
132
506
134
494
136
511
1385
59
140
637
1427
47
1448
88
salaries and
wages
250
00
250
00
250
00
250
00
250
00
250
00
250
00
250
00
2500
0
250
00
2500
0
2500
0
Other expenses
120
0
124
8
129
8
135
0
140
4
146
0
151
8
157
9 1642
170
8 1776 1847
Administration
expenses
200
0
200
0
200
0
200
0
200
0
200
0
200
0
200
0 2000
200
0 2000 2000
Total cash
outflows
582
00
153
093
155
016
156
968
158
952
160
966
163
012
165
090
1672
01
169
345
1715
23
1737
35
Cash deficit /
surplus or
closing cash
balance
810
800
149
400
7
218
777
6
289
226
4
360
763
0
433
403
7
507
164
9
582
063
2
6581
155
735
339
0
8137
510
8933
693
TASK 3
3.1 Description on the evaluation of planning decision taken for selected brochure.
 There is the various planning decision that are must be taken in order to provide the
brochure in attractive manner to the customers. Thus, it defined in following ways as are-
Research strategy and feasibility- in this stage, all information in terms to project must be
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collected. It will be inclusive of things as brief, background material, existing brand, legal
issues and this all are needed to be backed by effective research.
 Brochure format- it is need to be considered at the time of designing the brochure and this
also get affected by budget and target market (Kuyumcu and et.al., 2018 ). In order to
make the brochure attractive, the various things must be covered as time of tour,
destination explain, transportation and other kind of the cost.
 Design concepts- it will be selected after implementation of all relevant things. In this,
the logo needs to be created with attractive colours so that consumer can be attracted. In
addition to this, the stage includes the detailed specification of design fostering needs of
product and planning.
 Implementation- After getting approval, the implementation of all decided elements will
be included to finish the artwork and that must be produced effectively. In addition to
this, it can be said that with help of professionals program the all design must be framed
in the better and attractive manner.
 Supervision of production- in this, it can be said that to have control over the quality is
one of significant tool and effective supervision of the produced work is essential and this
kind of the things must be implemented accurately with the help of proper design.
3.2 Access the suitability of alternatives to the traditional brochure for differ tour operator.
In this task, two differ tour operators will be taken as ICB tour operators of UK and
Thomas cook and this both are working in Hotel Hilton. In this task, it defines the all traditional
way of promoting the task and to sell it through brochure.
Due to the facility of online system and various kind of technical advancement the all kind of
method can be changed. In this, it can be said that selling and promoting can only be exercised in
the modern times. In order to grab the attention of the number of the customers tour operators
has the option to design attractive e-brochure (Mancinia and Steccab, 2018 ). The online
techniques have almost changed the way of conducting the business.
With the use of e-brochure, the tour operators can improve the way of communication and will
provide the better and easy facilities to the customers. It provides access to reach the wider
public in all around the world. In case of the ICB tour and Thomas cook has attracted the many
customers with the help of facilities as e-brochure. This kind of the better and attractive visual
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provides the facility in order to have the clear understanding of the all packages and the services
and this all can impact on customers in terms to have the use of attractive image.
In addition to this, it can be said that the appropriate method of distributing and selling the
holiday packages must be done through telephonic method of selling commodities. For this, it is
very essential to grab the attention of the customers. There must be maximisation of the
profitability. This kind of the services will be beneficial in order to derive the long amount of the
profitability. The Tour operators need to tied their contract with the hospitality services of UK.
On the other hand, it can be said that taking the business with the help of the online method will
be beneficial in terms to know about the each trends and aware the customer about the product
and services.
3.3 Description on the evaluation of different method of distribution to sell holiday for tour
operator.
There are numerous method of selling tour and holiday for different type of tour
operators. Under this, the most common method as direct selling, online selling and promotion
are most popular among the all. This all methods are very assistive in term to aware the custmer
and grab their attentional towards the firm services. In this, Hotel Hilton is providing services of
the hospitality in the UK so that they can attract the customers widely. The ICB is working as the
Tour coordinator in the Hotel Hilton and they must promote the customer to have the services of
hotel. In the present scenario information provides the customer at their door step so that there
can be maximisation of the profitability and productivity in the enterprise (Nagai and Kashiwagi,
2018.). Thus, it can be said that the email method is one of the best method to promote the
services with help of emails. The various packages and differ schemes are must be define in the
email so that customer can be attracted towards the working of the enterprise.
TASK 4
4.1 Define the strategic decision made by differ types of operator.
Strategic decision can be termed out as specific plan of action so that all things can be
conducted in the effective manner. With help of better strategical decision all things can be
conducted in the better and effective manner. Thus, it has been defined in the fowling manner as
are-
 Segmentation, targetting and positioning- This is helpful in order to segment and to
have proper identification of the target consumer in terms to attracting the significant
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strength of the customers. The hotel Hilton working with tour operators must work as to
gather the all essential information about the need of the customer and their purchase
behaviour.
 Tour package seasonal scenario- The preferences of the customer changes as per the
changed in the season. T the time of the festive season the changes also been made in the
high impact. In addition to this, there is variation in the rate of price of the tour package
and also depends on the rate of consumer turnover.
 Pricing Strategies- The pricing strategy will help to providing the competitive advantage
to the tour operator by focusing over the tour package prices and the services offered by
the particular tour operators. In addition to this, it can be said that the tour provides
should offer the better services in the affordable prices so that customer can get attracted
towards the working of the enterprise.
 Surcharge policy- The term surcharge policy can be defined as the charge or the tax that
added to the cost of good and services. It is the policy that typically added to the existing
tax and will not be inclusive of the stated price of good and services (Southern and
Moutinho, 2018). It is the kind of the extra fees that can be demand by the holiday
company as per the rules and regulations.
 Choice of product in relation to customer portfolio- The services must be offered to the
customer s on behalf of their spending level. The tour operator should have the idea about
the portfolio of the the customer so that they are able to provide the effective product
services to the customer.
 Distribution decisions- This means the chain of the intermediaries with the help of which
the effective services of the products can be rendered to the customers. Thus, it will be
inclusive of the person as tour operators, distributors and the various
4.2 Description on tactical decision select by tour operator in different situations.
In this, it can be said that the tactical decision will be helpful in order to ensuring the
smooth and flexible operations and also aids to deal with the organisation matters. There are
various tactical decision taken by the operators in order to make the negotiation with service
providers in respect to the transportation services (Wang and Luo, 2018). In addition to this
healthy relation must be developed so that better things can be done. Under this, one of the
essential tactical decision is relates with the tour operators in order to make the better
9

coordination of the services and to conduct the proper research. In addition to this, the ICB tour
operators are taking variosu initiatives in order to have reduction in the prices of the products so
that it can sttarct to the customers.
CONCLUSION
Based on the above report it can be concluded that tour operators is the main element that
combines the tour and travel components in order to create the tour package effectively. This will
be helpful in terms to promote the product and services. The present report is based on business
activities of ICB tour operator and it was coordinated with the Hotel Hilton in aim to provide the
effective services to the customers. In this report, the various things are to be covered as current
and rends of tour operators, strategic decision of the tour planners and evaluation of the differ
types of tour operators. The all things has been in order to conduct the function in the effectively
so that tour can be successful and better facilities can provide to customers.
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REFERENCES
Books and Journals
Brennan, B.S. and Bae, K.M., 2018. MBA Study Tours as Tourism Products.
Crossley, J.C and et.al.,2018. Introduction to commercial recreation and tourism: an
entrepreneurial approach . Sagamore Publishing LLC.
Fang, Y., Yin, J. and Wu, B., 2018. Climate change and tourism: a scientometric analysis using
CiteSpace. Journal of Sustainable Tourism. 26(1). pp.108-126.
Ferguson, E., 2018. Travel demand management and public policy. Routledge.
Gonzalez‐Urango, H. and García‐Melón, M., 2018. Stakeholder engagement to evaluate tourist
development plans with a sustainable approach. Sustainable Development.
Inkson, C. and Minnaert, L., 2018. Tourism management: An introduction. Sage.
Kuyumcu, A., Yildirim, U., Hyde, A., Shanaberger, S., Hsiao, K., Donahoe, S., Wu, S., Murray,
M. and Maron, M.B., 2018. Revenue Management Delivers Significant Revenue Lift for
Holiday Retirement. Interfaces. 48(1). pp.7-23.
Mancinia, S. and Steccab, G., 2018. A Large Neighborhood Search based Matheuristic for the
Tourist Cruises Itinerary Planning. Computers & Industrial Engineering.
Nagai, H. and Kashiwagi, S., 2018. Tourism: Current Trends and Challenges. Asian Youth
Travellers: Insights and Implications, p.117.
Southern, G. and Moutinho, L., 2018. Process-based management in tourism. Strategic
Management in Tourism, CABI Tourism Texts, p.231.
Wang, H., Li, S. and Luo, J., 2018. Optimal markdown pricing for holiday basket with customer
valuation. International Journal of Production Research, pp.1-15.
ONLINE
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