Tour Operation Management Report

This report analyzes the effects of current trends on tour operators, stages in holiday development, contracting methods, pricing strategies, brochure planning, distribution methods, strategic decisions, and tactical decisions.

Tour Operation Management
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Contents
Introduction......................................................................................................................................4
Task 1 Leaflet..................................................................................................................................5
1.1 Analyse the effects of current and recent trends and developments on the tour operators
industry........................................................................................................................................5
Task 2...............................................................................................................................................9
2.1 Assess the stages and timescales involved in developing holidays.......................................9
2.2 Evaluate the suitability of different methods of contracting for different components of the
holiday and different types of tour operator..............................................................................11
2.3 Calculate the selling price of a holiday from given information below..............................13
Task 3 Management report summary............................................................................................15
3.1 Evaluate the planning decisions taken for the design of a selected brochure......................15
3.2 Assess the suitability of alternatives to a traditional brochure for different types of tour
operators and recommend the most appropriate for your tour package....................................17
3.3 Evaluate the suitability of different methods of distribution used to sell a holiday for
different types of the tour operator and recommend the most appropriate for your tour
package......................................................................................................................................18
Task 4 Management report summary............................................................................................20
4.1 Evaluate the strategic decisions made by different types of tour operator..........................21
4.2 Compare the tactical decisions that could be taken by a selected tour operator in different
situations....................................................................................................................................23
Conclusion.....................................................................................................................................26
References......................................................................................................................................27
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Introduction
Management is prior to the business operations due to its direct impact on the outcomes. The
tourismindustry is having based on the market trends and demands so management is essential in
the business operations of a tour company which will be defined in the study. This report is
based on the Trailfinders Ltd and Kuoni Travel which are working in the UK as a tour operator.
This report will analyse current and recent trends and development, and its impact on the tour
operator industry. It will assess the stages used in developing holidays for the Trailfinders Ltd.
and also provide timescales in the tourism development. It will explain different methods of
contracts for different components of tour operations. The brochure is a necessary thing to
promote business and communication product in the customers. Several decisions have to be
taken in the brochure development which will be evaluated in the report. Organisations can use
alternatives to traditional brochures as per the suitability which will be assessed in the study. At
the end of this report will evaluate strategic decisions took by different tour operators. Different
tactical decisions will be compared at the last of the study which can be taken by a tour operator
to make the lead in different situations.
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Task 1 Leaflet
LO1 Understand the tour operators industry within the travel and tourism sector
1.1 Analyse the effects of current and recent trends and developments on the tour
operators industry
Title
Analyse the effects of
current and recent trends
and developments on the
tour operators industry
Introduction
Several kinds of changes are
made in the tourism industry
and especially trends are
regularly changed which has
created a huge impact on the
companies working in the
tourism industry of the UK.
This leaflet is having a focus
on the impacts of current
and recent trends and
development of the tourist
and tourists sector.
Responsible tourism
This is the latest development in
the tourism industry which
supports to the environmental
conservation, economic vitality,
cultural awareness and
involvement of localities.
Government is now providing
support to responsible tourism
which helps to economic
sustainability and to keep the safe
environment of tourist
destinations (Holden, 2016). It
has impacted on the working style
of the tourism industry. It has
increased the involvement of the
small-sized enterprises into the
tour plans which helps in
economical suitability. Tour
planning is also affected by the
environmental awareness and tour
operator are now using those
transportation, accommodation
and foods which are having less
Conclusion
It can be said in a concluded
manner that tourism industry
is now focused on
customisation from mass
deliveries. Several kinds of
tour packages are available in
the tourism which helps
customised services and to
provide better assistance to
customers on a tour.
Responsible tourism and
customised services are
mainly affectedby the
tourism industry.
Impact of recent trends
and development
Customised products and
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services
Customers are having their
own needs and demands on
a particular tour and it is a
current trend to provide
customised services to
tourists on the tour.
Packages and services are
now focused on the
customer’s needs ((Kaurova,
and et. al., 2014).). So it has
impacts on the tour operator
companies to make changes
in their working style and
develop customised tour.
Many of the companies are
using market research to
analyse the customers’
needs on a specific tour
which helps them to plan a
better tour against the
customers’ expectations.
Customised products and
services have impacted on
the working styles of the
tour operator company.
Variety in product range
In the recent era, tour
operator organisation plans
impact on the environment of a
particular tourists sites.
Expansion of cruise market
Most of the tourists are now
having the focus to take leisure
experience on tours and
transportation of tourists is one of
them. It is one of the central
attractions for the tourists on a
particular tour. This trend has
forwarded industry to involve a
cruise trip in each of their tour
plan which can provide special
memorable time to tourists. Many
of the tour operators have
contracted with cruise operators
to provide their services on their
tours.
E-commerce
The Internet is vitally used in the
promotions and booking of tours.
It has provided facility to the
customer to easily book their
seats on tours (Horner and
Swarbrooke, 2016). So it has
created a compulsion on the tour
operator companies to give an
option of online booking to
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a general tour of a particular
country or city. But now
companies are more focused
on a particular tour of which
they are having a range of
packages. It helps to attract
customers and to manage
sales and market share of
the company. Medical,
green, adventure etc. are
types of tourism and most of
the companies are now
planning their tour packages
in all of them. It has
enlarged the working area of
the tourism industry and
different organisations are
merged now in it. Medical
organisations are now also
involved in the tourism
industry.
ATOL protection
It is an Air Travel Organiser
License which is must for
the travel company to
organise an inbound and
outbound tourism. It is a
government certification
which authorised an
customers who can help the tour
operator’s organisation to
maintain sales and profits. Almost
40% of tourists are using online
method for booking for a tour
which shows the vitality of E
commerce.
Environmental awareness
Government and citizen have
become more aware of
theenvironment and global
warming issues are the main
cause of environmental
awareness. It has impacted on the
tourism industry also to make use
alternatives which are creating a
negative impact on the
environment. Transportation and
accommodation are the main
cause which affects the
environment so tour operators are
using cycles and Segways for a
site visit.
Discounts
This is a better way to attract
customers towards the tour plans
and most of the customers prefer
those tour operators which are
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organisation that is
providing protection to their
tourists from losing money.
Brexit
It has made a negative
impact on the tourism
relation in between EU and
UK. It has restricted the free
movement of tourists in
between EU and UK.
providing higher rates of
discounts. It has effected on the
working style and management in
the operations to maintain a cost.
Companies are now focused to
keep the operational cost under
the budget to provide discounts
and to maintain profits also.
Budgeted airlines services
The airline industry is providing
e-commerce facilities to their
customers and they are providing
many types of plans to customers
on the decreased fare. It has
impacted on the tourism industry
to provide discounted airline
services to their customers on the
trips. Customers are now aware of
it and tour operator cannot charge
excess fare so it has impacted on
the working style of tour operator
industry. Contracting in between
tour operators and airline
company is highly affected by
this.
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Task 2
Introduction
The report is based on the stages involved in the holiday planning supports to develop an
exclusive tour of the specific tourist market. Inflation creates a huge impact on the tour plans so
provisions are required in holiday planning for it. The study will provide an analysis of different
contract methods which is effective for different situations. At the end of this report will produce
the cost and selling price of the tour for students.
2.1 Assess the stages and timescales involved in developing holidays
Holidays can be defined as a short period of time in which customers can easily enjoy their
leisure period in an effective manner. Following are the stages required for the development of
holiday packages:
Market research-Market research is the first stage which helps in determining the latest market
trend. The organisation can also use PESTLE analysis for evaluating the external factors which
can be responsible for affecting the holiday packages. Trailfinders can also research various
destinations which are largely demanded by the customers. In addition to this, they can also
design the journey route of the tour plan. 15 days are required for the completion of this phase.
Planning-In the second step, the collected data, and information are used for picking the right
destination and trend in an effective and efficient manner. The planning process includes the
development of objectives, tasks and also determining the resources. Planning process requires
10 days.
Pricing-Pricing of the holiday package includes the cost of flights, trains, hotel rooms and
others. It is important to filter the overall cost of the competitors as this will be helpful in
knowing the latest market price. Penetration pricing strategy can be adopted by the management
of Trailfinders in order to maintain the relationship with their target customers. Skimming price
can also be adopted by Trailfinders in which they can fluctuate their price as per the peak time of
holidays. Selection of pricing strategy can be done in within 8 days (Sharpley and Telfer, 2015).
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Marketing of the tour plan-Marketing is a process for increasing the awareness of services in
the marketplace. Trailfinders can use various advertising methods such as social media
marketing, public speaking, and others. Marketing of tour plan requires 7 days.
Discussion with the experts-It is important to have a discussion with the professional tour
operators for consulting for knowing the critical factors required for the development of holiday
packages. This stage requires 6 days.
Distribution of brochure- In the final step, the distribution of brochures is done in the
marketplace. This will be helpful in creating awareness within the customers. They can easily be
known as the latest destination and plans. The distribution of brochure can be done within 5 days
(Sharpley and Telfer, 2015).
Timescales
Activities Duration (In days)
Market research 15 days
Planning 10 days
Pricing 8 days
Marketing of the tour plan 7 days
Discussion with the experts 6 days
Distribution of brochure 5 days
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2.2 Evaluate the suitability of different methods of contracting for different components of
the holiday and different types of tour operator
Different contracting methods are followed:
Allocation contract- In allocation contract, the tour operator contracts with the hospitality sector.
They are also responsible for providing flights, trains and bus booking to their customers.
Fixed contract-Fixed contract is done before the journey. Tourists cannot be able to cancel their
booking as it can affect the overall budget of travelers.
Charter flights-Tour operator provides charter flights to the VIP people or who can be able to
afford the luxury facility (Cruisejobfinder, 2018).
Tour operators provide the volume of travel services such as accommodation, transportation and
another facility to a wide range of customers.
Outbound operators- Outbound operators plan and work their personal trips working with their
associates in the destination. They sometimes choose the designed tours of inbound operators
and just market to their personal client.
Domestic operators-The domestic tour operators provide transport, accommodation,
entertainment, and other tourism services to their customers. They usually provide a variety of
local tours like national park tours and others.
Inbound operators-Inbound tour operators provide travel arrangement for both groups as well as
independent travelers as a client. They focus on studying the travel incentives of target markets
separate their region (Cruisejobfinder, 2018).
Specialist operators-Specialist operators are responsible for providing exclusive and new
destinations along with multiple facilities to their customer. The client-centered approach of
specialist operators makes them flexible in context of location, facilities. The tour cost of
specialist operators is higher than others because they used to provide untouched destination than
others.
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Direct sell operators-Direct sell operators work like a travel agency in which they used to
directly communicate with their customers. This type of operator earns more than others because
no intermediate clients are required for the delivery of tour services.
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2.3 Calculate the selling price of a holiday from given information below.
Details Amount
Per person cost= 96 euro is the cost of a
twin room (shared by two adults)
96*45*1.12
£11,289.6
(96*42/2*1.12*5)
luxury coach bus cost includes two drivers,
tour manager, fuel and all road and ferry
taxes
£11200
Cost of the tour guide £945
Total cost £16,983.40
mark-up value 33%*17305.96 £5710.966
Sale price cost £31,168
Adjustments-
Given exchange rate= €1.12
Selling price of each person involved overall tour= 31,168/42 = £742
Overall sale price of the tour package= £ 31,168
Each person is required to pay £742 to the tour operator.
Conclusion
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On the basis of the above-presented report, it can be concluded that fluctuation in the inflation
creates a huge impact on the price determination. Provisions for the inflation have to be made in
the holiday planning.
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Task 3 Management report summary
LO3 Be able to review brochures and methods of distribution used to sell holidays
Executive summary
In this section of the report, the various strategies have been discussed which is related to the
changes taking place in the travel and tourism sector. The two different brochures have been
designed of the company Kuoni in regards to the holiday planning decision.
Introduction
The report study comprises of the description relating to the tactics or methods or strategies used
are different tour operators for the distribution of holiday packages. The Kuoni which is the U.K
based company has been producing various brochures against their tour packages. The
conclusion is also drawn at the end of this section.
3.1 Evaluate the planning decisions taken for the design of a selected brochure
Brochure helps in providing information, to create brochure various planning decisions are taken
with the help of which it can be designed. The different decision planning for designing the
brochure:
Planning- Planning is the first and most important step for starting designing the brochure. For
planning to create a brochure conducting a proper marketing research is required for the
company. There should be proper analyses of the market so that proper and effective planning
can be conducted. The proper and effective data can also be gathered by planning to make the
brochure. Deciding the format- After the planning process, it is essential to decide the proper
and effective format of the brochure so that it can be created in a proper way. The design of the
brochure also assists in attracting the people towards Kuoni Company which also helps in
increasing the revenue of the company (Elliot and Litvin, 2016). It is essential for the company
to set proper format of the brochure, to create format there are various things which have to be
considered so that brochure can be created effectively. The brochure should contain regional
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language so that the local customer can be able to understand it. This also consists style, quality
of the paper, the size of the paper and structure.
Budget- Budget plays an important role in making the brochure. It is essential to set the proper
budget so that brochure can be created in a proper way and in a planned manner. To create
brochure proper pricing strategies has to be considered in it so that the brochure can be designed
according to the plan. The pricing strategy also assists in knowing about the level of income of
the customers.
Target market- It is essential to know about the target market so that the plan can be carried out
in the more better way. Identifying the target market helps in carrying out things according to the
customer's needs and requirement (Elliot and Litvin, 2016).
Uniqueness- The brochure that the company is producing should have uniqueness so that it
could be able to attract the customers to the products and services which the company is
providing. The customers get attracted to the things which are unique to the way in which the
brochure is created should be unique and the entire pattern in which things are done should be
unique which will assist in attracting the customers.
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3.2 Assess the suitability of alternatives to a traditional brochure for different types of tour
operators and recommend the most appropriate for your tour package.
There are various technologies which the customers are using on the daily basis. So it is seen that
the use of traditional brochure is decreased as nowadays there are various technologies. Kuoni
Company is also looking for the options for the traditional brochures which can be able to attract
a number of customers. Some of the alternatives are like:
Internet- This is one of the best technology to make people aware of the information which the
company requires to provide. The online technology helps in spreading the information widely
and in a quick way (U.R and Joseph, 2011). This technology would assist Kuoni to provide
information of the holiday package which they are providing. The brochure that will be created
from this source would also contain the visual effects and various another thing which would
attract the customers towards it.
CD and video- People are connected to various sites and so they can be able to know about the
things through those services. The site like youtube assist in spreading the information to the
people through videos and so Kuoni also tries to upload some of their videos which have the
details about their company, products, and services which they provide.
Distribution channels- This is the channel which helps the companies in marketing their
products and services to the market so that they can be able to get more customers. These
distribution channels include the carriers, direct mail, etc.
Television- This is also one of the best places where the advertisement can be provided. This
technology helps in making aware of the products and services which the company is providing
in a quick and in a wide range as because television is one of the main sources which a huge
number of people are connected through (U.R and Joseph, 2011).
The most suitable traditional type of brochure which is suitable for the Kuoni Company is CD
and video as this can help in making the customer get aware about the products and services the
company is providing anytime and anywhere and they can see the services which are best for
them.
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3.3 Evaluate the suitability of different methods of distribution used to sell a holiday for
different types of the tour operator and recommend the most appropriate for your tour
package.
There should be a proper and useful way in which selling of the tour package to people can be
conducted. There are various methods with the help of this the company can be able to sell the
holiday package:
Call center- This is the method in which call center is responsible for call different targeted
people's and make them know about the package and make them attracted towards it. They use to
call and influence people to purchase the package (Lumsdon, 2016).
Direct selling- Direct selling in the process in which the company sells their holiday packages to
the customers by communicating with them face to face. This helps them in knowing about the
customer's needs and wants which assist in providing the package according to it.
Internet- This is the modern technology in which the company can be able to connect to the
customers through various social sites like Facebook, Instagram, etc. This helps the company in
connecting with the customers in huge numbers.
Agencies- The agencies also one of the methods with the help of which the company can make
then customer gets aware. Some of the agencies use to work for the Kuoni Company to make
people get aware about the tour packages (Lumsdon, 2016). They also help in collecting the
requirements of the customers. People use to get connected to the agencies to know about the
budget, latest services, etc.
All the above methods which are being explained plays important role in making the customers
aware about the holiday package of the company, from all of the direct selling, as well as
internet, would be the best and suitable method for Kuoni Company.
Conclusion
On the basis of the above analysis of the reported study, it has been analysed and revealed that
the Kuoni has been using the various effective and efficient strategies. Moreover, these strategies
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framed are helpful in designing of the brochure and thereafter, distribution of the holiday
packages to the visitors.
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Task 4 Management report summary
LO4Understand strategic and tactical decision making for tour operators
Executive Summary
This report is based on the different types of decisions which are taken by the several kinds of
tour operators in different situations. Strategic and tactical decisions are evaluated in this
assignment and also the significance of strategic decisions is explained in the report. A
comparison has made in the last of this report for specific tour operators.
Introduction
This report is based on the Trail Finders who is working in the UK. The report will present
different factors of the strategic and tactical decision which essential for the effective decision
are making (Mowforth and Munt, 2015). Starting of the report will evaluate the strategic decision
taken by several kinds of tour operators. End of this report will focus on the comparison of
tactical decisions in different situations.
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4.1 Evaluate the strategic decisions made by different types of tour operator
Strategic decisions are taken by the higher management in the organisation which a having a
huge impact on the direction of the company. These kinds of decisions are having generally used
to make a long-term impact on the organisation. Strategic decisions are effective in the
sustainability of market share, profits, and sales (Mowforth and Munt, 2015). It is mostly used
for market expansion and product development which helps to keep the growth of the company.
Evaluation of strategic decisions made by different types of tourists operators are given below in
points:
Strategic decisions are taken by TUI group (mass market tour operator):
TUI group is working in the mass market tourism and they are providing services to all kind of
tourists. The strategic decision is used by the TUI group to sustain the growth and sales of the
company on below-given factors:
Price: Pricing of their packages is set by the using this decision making process. Pricing is
having a huge impact on the customers so it is essential to keep effective pricing strategy to
attract more customers on a tour (Galle, 2010). As they are working in the mass market so it is
essential for them to set a price of their packages which is able to attract to all customers.
Economical pricing strategy is effective for them to sustain the effective number of tourists on
the tours. It can help the company to attract customers which belong to different segments.
Promotional strategy: It is having a significant role in the success of the organisation so it is
essential for the organisation to use it effectively. So TUI group has used print media due to its
effectiveness in the mass area of customers (Poels, et. al., 2017).By using this method they can
easily promote their tour plans to the customers to accomplish the set target of tourists on a tour.
The promotional strategy provides a communication medium to a company with the customers.
so they have use general and most appropriate way for the business promotions.
Strategic decisions are taken by Trail Finders Ltd (niche market tour operator):
The Trail Finders is working in the niche tourism market and their tour plans are based on
specific tours. They are using segmentation, targeting and positioning for the customised
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services. The company has made a strategic decision on STP which is explained hereinbelow-
presented points:
Segmentation: Each of the tour packages is specifically focused on a tourists needs. They have
made a segment in the tours which are medical, green, adventure, dark etc. It helps them to
allocate plan accordingly to work according to the needs of their targeted customers. All of the
facilities, price, and promotions are distinct in all of these segments.
Targeting: They are using specific promotional strategies for each of the market segment. For
the adventure tourism, they are using social media promotions. Print media promotions are used
by them for the green and medical tourism because it is generally used by older age of people
(Middleton, et. al., 2009).
Positioning: By using the suitable way to communicate they are making a perfect positioning of
the products in the customers. It helps to company to communicate or promote the USP of their
tour packages to their targeted market.
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4.2 Compare the tactical decisions that could be taken by a selected tour operator in
different situations
The tacticaldecision is generally made by the middle level of management to implement the
strategic decisions in a better manner. Some changes and modification can be made by the
middle level of management for the better implementations. Experienced middle level of
management is needed in this which can help the company for the better implementation of
strategy in the actual conditions (J. C., 2009). These kinds of decisions are made by the middle
level of management in the Trail Finders Ltd. to manage profitability in their operations.
Comparison of tactical decisions in different situations is presented here in the below-mentioned
points:
Maximum utilisation of coach and aircrafts: Trail Finders is a tour operator organisation
which has made contracts with the airline companies. Utilisation of seats depends on the type of
contracts which they have made with the airline company. Variable and fixed two types of
contract methods are generally used in the contracting. Variable contract methods are effective
and support to organisation maximise the utilisation of booked seats. It is effective in that
condition when managers are not assured about the number of tourist bookings. Fixed contract
method is not effective in this condition. So these kinds of decisions are taken by the middle
level of managers in the Trail Finders which is huge effective to manage profitability in a
specific tour. Either this operational cost of the tour would be increased as per their budget.
Highest utilisation of contracted bed: Optimum utilisation of the resources is the prior thing
for the company to be in the profitable situation. Trail Finders Ltd. is having a contract with
some of their specific hotels which provides accommodation facilities to their tourists. To attain
the highest profitability in the tour, it is essential for them to maximise utilisation of their
occupied bed and rooms (Barratt, et. al., 2011). So they have to use fixed contracting in the
tourism season which can help them to optimum use of bed and rooms. It will also help them to
make a competitive advantage by decreasing availability of rooms in premium hotels to their
market rivalries. So the use of tactical decisions is equally effective for the company to keep
profits in their tour packages.
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Discounts: Most of the companies which are working in the tourism industry are providing a
discount on the tour packages. So it is essential for the managers of the Trail Finders to provide a
discount to their customers to retain them. Each of the tours is planned for a specific number of
tourists and if the company is not getting an equal number of tourists then they can allow
discounts to customers to fulfill the tourist’s numbers. Tactical decisions are mainly used in that
kind of situations which help the company to make a lead in a critical situation. It helps to the
company to be in the win situation.
Tactical decisions are used in different situations in the company but it is mainly effective in
those conditions which help to make quick decision to lead to situations.
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Conclusion
On the basis of the above-presented report, it has been concluded strategic decisions are effective
for any kind of organisation. Companies which are working in the niche and mass markets are
having the equal significance of strategic decisions in determining price, promotional strategy
and STP. The tactical decision is subordinates of the strategic decision and it helps in the
implementation. The tactical decision is more effective in quick decision-making situations.
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Conclusion
From the study and analysis of the above report study, it has been observed that the study of tour
operator management is very significant. The tour operators play a very vital role in the travel
and tourism industry. At the time of planning holiday or vacations, most of the tourists
irrespective of their traveling purpose visit the tour operators for the reservations and bookings.
However, there are various issues been identified such as health issue, an economic issue and
many others which impacts upon the smooth and effective functioning of the travel and tourism
industry. The technological factor is majorly impacting and is not controlled easily as accessed
from the above report study. There is an increasing and decreasing trend in the tour operations or
leisure industry is observed. Furthermore, the company Kuoni is able to respond the changes
effectively and has made use of the significant strategies.
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