Tour Operation Management Report

This report analyzes the impact of current trends on tour operators, stages in holiday development, contracting methods, pricing strategies, brochure design, and strategic decisions. It also evaluates alternative distribution methods and tactical decisions.

Tour Operation Management
1

Contents
Introduction......................................................................................................................................3
Task 1 Leaflet..................................................................................................................................4
1.1 Analyse the effects of current and recent trends and developments on the tour operators
industry........................................................................................................................................4
Task 2...............................................................................................................................................7
2.1 Assess the stages and timescales involved in developing holidays.......................................7
2.2 Evaluate the suitability of different methods of contracting for different components of the
holiday and different types of tour operator................................................................................8
2.3 Calculate the selling price of a holiday from given information below................................9
Task 3 Management report summary............................................................................................10
3.1 Evaluate the planning decisions taken for the design of a selected brochure......................10
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....................................10
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......................................................................................................................................11
Task 4 Management report summary............................................................................................12
4.1 Evaluate the strategic decisions made by different types of tour operator..........................12
4.2 Compare the tactical decisions that could be taken by a selected tour operator in different
situations....................................................................................................................................13
Conclusion.....................................................................................................................................14
References......................................................................................................................................15
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Introduction
The Management has a direct influence on outcomes preceding to the operations of the business
as the tourism industry is based on demands and market trends. This study relies on Kuoni
Travel and Trailfinders which acts as a tour operator in the UK. This report will analyze the
impact on the industry of tour operator by understanding recent, current and development trends.
It will evaluate the stages which has been used in the development of holidays particularly for
the company Trailfinders Ltd. while giving timescales in the development of tourism. Here the
brief will be done for different constituents of tour operations for various methods of contracts.
Many decisions are to be taken in the development of brochure to perform an assessment in the
report and thus brochure becomes a necessity in promoting product, service or business among
the customers. Here traditional brochures can also be used according to the appropriateness
which will be discussed in the study. This report will present strategic decisions being taken by
various tour operators and also these tactical decisions will be matched in the last of the report to
get the lead in various 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
Investigation of the effects
of current and recent drifts
and the progress on the
industry of tour operators.
Introduction
Trends in the tourism
industry are frequently
changing which is
impacting widely on the
UK companies working
mainly in the tourism
industry. This is the leaflet
which focuses on effects of
current and recent drifts in
trends along with the
progress in the tourism
sector.
Responsible Tourism
It is the most recent
development in the sector of
the tourism industry as it
benefits from the
conservation of the
environment, cultural
awareness, locality
improvement and economic
vitality. Support is been
provided by the government
to responsible tourism so
that environment of tourist
destinations can be kept safe
and economic sustainability
can be maintained
(Abramson, 2018).
Definitely, it has positively
impacted the working
culture of the holiday
business industry Economic
suitability is also kept alive
by the upsurge in the
involvement of the small-
sized enterprises in the trip
plans. Tour operators are
using accommodation,
foods, and transportation
creating minimizing the
impact on the surrounding
of particular tourists sites.
Development of Cruise
Market
A vacation only demands
some leisure and amazing
experiences and thus they
go on tours. Transportation
Conclusion
It can be summarized that travel and
tourism organization will stress
mainly on mass deliveries
customization. Various types of tour
packages are made available so that
better choices and assistance can be
provided to the clients.
Figure 1 Responsible Tourism
Source: (Nica, 2015)
Figure 2 Types of Travellers
Source: (Graciano, 2015)
Development and recent
trends impact
Customized services and
products
Each and every customer
carries different demands
and needs for any kind of
tour and hence this has
become the latest trend of
giving customized services
in the tour. Services along
with Packages have focused
on the needs of the
customers. This has
impacted the companies of
tour operator forcing them
to develop the customized
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tour and change the
working style. To work on
both the things, companies
are using market research
so that better analysis of the
needs of customers on
every trip so that proper
planning can be done to
meet-up expectation of
customers the next time.
Custom-made services and
products have affected the
working culture of the
organisation like tour
operator ones.
Variety in product range
In recent times the
organisation like tour
operators plans to conduct a
normal trip for a particular
place but now organisations
are focusing on specific
tours which consists of the
range of packages. Many
ranges of packages will
attract customers and
indirectly it will benefit in
the market and sales share
of the company. The most
ongoing and trendy tour
packages are in adventure,
green, medical etc. and
therefore many companies
are planning for tour
packages in these fields
only. Different organisation
like medical is also getting
involved in this industry of
tourism.
ATOL protection
It stands for Air Travel
Organiser License and acts
as a must especially for the
travel companies to
of travelers is also a kind of
it and also is the main
attraction on a particular trip
for the tourists. A special
remarkable time to sight
seekers is provided with the
help of cruise trip and this
trend is also forwarded to
the industries. The contracts
also occur in between tour
operators and cruise
operators to offer the
services or amenities on the
trips.
E-commerce
The internet is a buzz all
around when tour bookings
and promotions are
considered. The Internet has
made things simpler and
very easier as booking can
be made anytime and
anywhere in the world
(Khurana, 2017).
Compulsion is created on
the companies like tour
operator to provide online
booking option to customers
also it benefits tour operator
organization in proper
maintenance of profits and
sales. The vitality of E-
commerce can be seen as
almost 40% of the tour
bookings are done by its
help.
Environmental Alertness
Citizens and their
Government both have
become aware of the global
warming and environment
issues as these are the main
causes of alertness of
environment. The tourism
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organize and establish
outbound and inbound
tourism. It is basically a
government accreditation
which certifies a company
that is shielding their
tourists so that money does
not loosen (Derouiche,
2012).
Brexit
Due to the exit of Britain, a
negative impact on the
relation of tourism among
UK and EU is reflected.
This impact has lead to
restriction of the free
movement of the sightseers
between the United
Kingdom and European
Union.
industry has also been
affected which creates an
adverse impact on the
environment. To improve
the environment, Segways
and cycles are used whereas
the main causes of
environment degradation
accommodation and
transportation is controlled.
Discounts
It is a sure shot way which
can help in attracting
customers for the tours. The
higher the discount rates,
the more will be the
customers. Management and
working style in operations
is effected for cost
maintenance. Organizations
are been forced to retain the
operational price under the
budget so that profit can be
gained.
Budgeted Airlines Services
The industry of airline is
giving the facility of e-
commerce and plans to
customers at minimized
prices. The tourism industry
is now bound to provide
decreased airline services on
their trips. Contract among
the airline company and tour
operators is greatly affected.
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Task 2
Introduction
It is based on the methods induced in the vacation planning to make an elite trip to the particular
tourist market. The inflation has produced a great influence on trip plans so provisions are
needed in vacation planning. This report will get us with analysis of various contract methods
which tends to be efficient for various circumstances. The selling and cost price of the tour will
be presented for students.
2.1 Assess the stages and timescales involved in developing holidays
Holidays are a short span of time which generally people enjoy to relax and refresh themselves.
There are some ways which would help in creating the holiday packages-
Research of Market- It helps in knowing what exactly is creating a buzz in the market. Analysis
can also be done with the help of PESTLE so that external factors can be evaluated because of
their effect on holiday packages. Trailfinders can search for all the possible good destinations
along with its tour planning and journey route. Approximately 15 days will be consumed in this
process.
Planning/ Scheduling- In this step, all the gathered data is utilized so that correct trend and
destination can be obtained. It involves the process of objective development, resource and task
determining. Approximately 15 days will be consumed in this process (Philip, 2012).
Estimating- The cost of holiday package involves the total cost of hotel rooms, trains, flights
and others. Filtration of all the prices of competitors is to be done so that optimal charges can be
asked and also maintain a relationship with clients it is important to follow penetration pricing
strategy. Trailfinders can also go ahead with skimming price strategy which allows price
fluctuation as per the crowning time of vacations. Approximately 8 days will be consumed in
this process.
Tour Plan Marketing- Marketing is actually a key which helps in increasing the awareness of
any product or service of a company in the market. This Trailfinders can use this technique to
advertise their services. Marketing can be done by social websites, traditionally or by public
speaking and others. Approximately 7 days will be consumed in this process.
Experts Conversation- Experts have more experience and knowledge, therefore, it is important
to consult with them to know critical factors needed for the creation of holiday packages.
Approximately 6 days will be consumed in this process.
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Dispersal of Brochure- Brochure is to be distributed all over the targeted market which will
benefit in creating awareness among the customers. Approximately 5 days will be consumed in
this process.
Summary of Activities-
Stages Time consumption
Research of Market 15 days approx.
Scheduling 10 days approx.
Estimating 8 days approx.
Tour Plan Marketing 7days approx.
Experts Conversation 6 days approx.
Dispersal of Brochure 5 days approx.
Total Days 51 days approx.
2.2 Evaluate the suitability of different methods of contracting for different components of
the holiday and different types of tour operator
The various methods of contracting are
Allocation contract- In this, tour operator pacts with the hospitality division. They are also held
liable for providing bus, train or flight bookings for their customers.
Fixed Contract- It is done prior to the journey and here cancellation of bookings is not an option
because the total budget of tourists could be greatly affected.
Charter Flights- These flights are provided to the VIP people or the ones who can afford such
luxuries (Cruisejobfinder, 2018).
Outbound Operators- They plan and work on the personal trips while working with
acquaintances in the destination areas. Sometimes they prefer the already designed trips of
inbound operators so that they can just market it to their client.
Domestic Operators- They provide customers with facilities like tourism services,
accommodation, entertainment, local tours like national parks and transport.
Inbound Operators- It provides travel preparation for both groups and independent travelers.
Here the focus is kept mainly on the travel incentives of goal markets distributing their regions
(Antipenko, 2015).
Specialist Operators- It is held responsible for giving exclusive destinations with many
facilities and their approach of client-centered will enable their flexibility in terms of facilities
and place. Its cost is higher than all because they provide untouched destinations than others.
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Direct Sell Operators- It acts as a travel agency which directly communicates with its clients. It
earns more than anybody else as no intermediate persons are involved in service distribution.
2.3 Calculate the selling price of a holiday from given information below.
Specifics Amount
The price of twin room been shared among two
adults is 96 Euros.
Cost would be 96x45x1.12
96x42/2x1.12x5
= £11,289.6
The luxurious bus coach price includes 2
drivers, 1 tour manager, ferry and road taxes
along with fuel
£11200
Price of the Tour guide £945
The total of the above cost £16,983.40
The Mark-up price 33%x 16983.40 £5604.522
Sale price cost £22,587.922
Adjustments
Provided exchange rate= €1.12
Selling price of the people included in overall tour= 22,587.922/42= £537.8
The tour operator has to collect £537.8 from each person.
Conclusion
The report concludes that variation in the inflation produces a deep and wide impact on the cost
determination. In the planning of vacations or holidays, it is required to have provisions for the
increment.
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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
For the company Kuoni, two different brochures are designed for the purpose of decision taking
in holiday planning. This report will show many strategies or plans related to changes happening
in the sector of travel and tourism.
Introduction
The UK company Kuoni has produced many brochures in contrast to their trip packages.It
describes the methods or tactics been used for the dispersement of packages of the holiday.
Things will be briefed more below and the conclusion will sum-up all.
3.1 Evaluate the planning decisions taken for the design of a selected brochure
Brochure is designed by following some stages which are,
Planning- For this proper marketing research is done for the company so that effective planning
can be made and then conducted. It helps in gaining effective data.
Determining the Format- After planning is done, it is important to know the operative format of
brochure so that people can be attracted to Kuoni. The proper way can be created here so that
more revenue can be generated. Style, paper size, quality, and language must be focused as per
the place.
Budget- When a budget is set then only things can be considered and pricing strategy can be
maintained.
Target Audience and Market- It is mandatory to know the targeted market so that planning can
be done effectively. Afterwards, the things could be managed as the requirements and needs of
customers will be known then only.
Uniqueness- An attractive, distinguished and eye-catching brochure drives audience more than a
simpler one. Here proper designing, the layout of the texts or background must be maintained so
that more customers can be drifted (Ovsyannykov, 2016).
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.
Kuoni along with traditional brochures wants something new which should be introduced to
technologies so that more customers can be reached. The methods which could be adopted are-
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Internet- It is a way which almost every company uses to spread out its information. This would
help Kuoni as the brochures can also contain some visual effects benefitting Kuoni to create
better and strong impression on customers. Email marketing and online promotions can be done
for advertising (Ward, 2017).
Videos and CD- The videos can greatly help as it is been assisted by YouTube. People
remember things more when told visually rather than verbally therefore when effects will be
added to videos than it would greatly help Kuoni to leave a strong impact on customers.
Distribution Channels and Television- The channels include direct mails, carriers etc. so
market the products and services. Television is proved to be the biggest source now for the
purpose of advertisement. Almost every product or service is broadcasted here because a huge
number of people can be connected at a single moment (Halbrooks, 2017).
Among all the types, most worthy, optimal and good source will be Video and CD as customers
can see offerings of product and services anytime and anywhere.
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.
Some effective ways which can benefit the companies in selling of services are-
Direct Selling- It is basically face-to-face marketing which allows direct communication with
the clients. It is very effective as the seller can easily identify the needs of customers and
influence them.
Internet- It is widely popular because of the presence of social media integration like Facebook,
Instagram, LinkedIn etc. It is a modern technology helping a company to connect with a huge
number of customers.
Call Center- It is also an effective method to target different people and attract them towards
packages and influence them to buy it (Valente, 2015).
Agencies- Agencies here will work for the benefit of a company like Kuoni so that more and
more people get aware of the services. Apart from this, requirements of customers are also
gathered which could help in getting more amendments and updates on services offered.
Conclusion
Kuoni can use different strategies which could effectively and efficiently help it in successful
brochure designing, brochure distribution and brochure conversions to holiday packages. Apart
from traditional ways, new ways can also be indulged to obtain a lasting effect.
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Task 4 Management report summary
LO4Understand strategic and tactical decision making for tour operators
Executive Summary
This document focuses on various decisions taken by various tour operators. In different
scenarios, tactical and strategic decisions are analyzed and its significance is highlighted. After
this comparison of decisions will be done so that tour operator can take it and act on different
scenarios.
Introduction
It is based on UK company Trailfinders who will present various factors of tactical and strategic
decisions essentially for the efficient decision making, In starting of the report there will be
assessed of the tactical decision taken by various types of tour operators whereas the report
ending will assess and evaluate the comparison of strategic decisions under various scenarios.
4.1 Evaluate the strategic decisions made by different types of tour operator
Tactical decisions are taken-up by top management of a company which has a high influence on
the company direction. These strategies will help to establish long-term influence over the
organization and are proved to be effective in profits, sales and market share sustainability. It is
generally utilized for the development of service and expansion in the market.
Tactical decisions are taken by (mass market tour operator) TUI group-
TUI provides services to tourists and works for mass-market tourism. The TUI group uses
tactical decisions so that sales and growth of the organization can be sustained based on factors
given below-
Price- Pricing impacts largely on clients so it is important to keep optimal and effective prices to
fascinate more clients. If the strategy of economical pricing would be adopted by them then it
will be able to attract clients.
Promotional Approach- This approach has proven to be significant and essential, so TUI group
has utilized print media. With its help, promotion of tour plans can be easily done and targeted
tourists can be easily reached (Calabresi, 2014).
Tactical decisions are taken-up by company (Niche market tour operator) Trail Finders
Ltd.-
The tour plans of Trail Finders are based on particular tours and are using targeting,
segmentation, and positioning especially for adapted services. Strategic decisions are taken on
STP which is explained below-
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Segmentation- Every tour package is made giving focus on the requirements of tourists. In each
of the distinctive segments, promotions, price, and facilities are distinguished. Segments example
are an adventure, dark, green, medical etc.
Targeting- Usage of particular promotional strategies is done like for the tourism of adventure,
social media integration is used. For Medical and green tourism generally, print media
promotions are used.
Positioning- The suitable way should be used to establish perfect positioning of customer
products or services. USP of the packaged tour can be used for the promotion or communication.
4.2 Compare the tactical decisions that could be taken by a selected tour operator in
different situations
The strategic decisions are taken by the middle-level of administrators so that proper execution
can be done. Modifications can be done by experienced middle-level of administrators in the
Trail Finder Ltd. Company. Below there will be comparison of different situations in strategic
decisions-
Extreme Utilization of aircrafts and coach- The company Trail Finders is a tour-operator
which make pacts with the airline companies. Seat utilization depends on contract type taken
with Airline Company. Two kinds of contract methods are Variable and Fixed. The variable
method helps in maximizing the booked seat utilization when a number of booking tickets are
not assured whereas a Fixed contract is not able to work effectively in such kind of situation.
Middle-level of administrators can prove to be helpful in Trail Finders as they can administer
profits of tours.
Full Utilization of the contracted bed- For any company to be in profit margin it is important
to utilize resources optimally. Trail Finder company is collaborating with some hotels to give
lodging facilities to travelers. In the season of tourism, fixed contracting can be done to
maximize their profit margin (Barratt, et. al., 2011).
Discounts- On tour packages discount schemes are offered so that customers can be retained. If a
specific tour package is not getting optimum tourists then they can provide some discount
schemes to fill the capacity of tourist’s members.
These decisions work best when a quick decision is to be taken.
Conclusion
The strategic decisions discussed can work effectively and efficiently in any organization.
Organizations which are working in mass and niche markets carry equal implications of tactical
decisions to determine STP, promotional strategy and price. These strategic decisions prove to be
very helpful in a situation when quick-decision making is required.
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Conclusion
The analysis and report of the study proved that tour operator management study was very
significant. In vacation time many tourists visit their tour operators for the purpose of booking
and reservations. Therefore these tour operators are vital in the industry of tourism and travel.
Many issues and problems are present such as economic problem, health problem, time problem
or other issues effect on the efficient and smooth functioning of the industry. The major area
which impacted on the travel and tourism is a technological factor. There is sometimes peak of
the trend and sometimes bottom decreasing trend in this leisure industry with the season change.
The company Kuoni will be able to respond to variations efficiently by using strategies
significantly.
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