Tour Operation Management Report

This report analyzes the effects of current trends on tour operators, stages in holiday development, brochure planning decisions, distribution methods, and strategic decisions. It also evaluates tactical decisions and provides recommendations.

Tour operation management
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Contents
Introduction................................................................................................................................2
Task 1.........................................................................................................................................3
P1.1 Analyse the effects of current and recent trends and developments in the tour operators
industry.......................................................................................................................................3
Effects of current and recent trends and developments on the tour operators industry.............3
Task 2.........................................................................................................................................6
Introduction................................................................................................................................6
2.1 Assess the stages and timescales involved in developing holidays.....................................6
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
Conclusion................................................................................................................................10
Task 3.......................................................................................................................................11
Executive summary..................................................................................................................11
Introduction..............................................................................................................................11
3.1 Evaluate the planning decisions taken for the design of a selected brochure....................12
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...................................13
3.3 Evaluate the suitability of different methods of distribution used to sell a holiday for
different types of a tour operator and recommend the most appropriate for your tour package.
..................................................................................................................................................14
Task 4.......................................................................................................................................16
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Executive summary..................................................................................................................16
Introduction..............................................................................................................................16
4.1 Evaluate the strategic decisions made by different types of tour operator........................17
4.2 Compare the tactical decisions that could be taken by a selected tour operator in different
situations..................................................................................................................................18
Conclusion................................................................................................................................19
Conclusion................................................................................................................................20
References................................................................................................................................21
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Introduction
This report helps the reader in knowing the numerous effects of recent as well as latest trends
and development on tour operator industry. Tour operator is defined as a traveling agent who
is specializing in providing holiday packages to the customer. This report also covers the case
study of Kuoni, Trailfinders Ltd. Timescales and stages of holiday packages are analysed in
this report. This report will help in knowing about the planning process to create the
brochure which will help the tour operator to attract different customers. This report will also
assist in knowing about the alternative which traditional brochure have which different tour
operators can use in place of traditional. The different methods of distribution will also
explain in this report which will help the tour operator to choose appropriate channels to
distribute. Different tour operators of UK are using contracting method for increasing rate of
customers. Tactical and strategic decisions are made with respect to different types of a tour
operator.
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Task 1
P1.1 Analyse the effects of current and recent trends and developments in the tour
operators industry.
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Effects of current and
recent trends and
developments on the tour
operators industry
Introduction
This leaflet is created to
understand the effects of
recent and current trends and
developments in the tour
operators industry.
Effects of current and
recent trends and
developments
Destination Marketing-
The destination marketing
is replacing the marketing
which is related to tourism.
The advertising companies
have been hired by the
different operators of tours
for increasing the image of
a particular location so
that it can attract the
tourists. Nowadays it is
taking place in the new
form of media. It has been
referred to the huge reach
by the use of the internet.
Advertising and
promotions are getting
Responsible tourism
According to Schegg, et. al.
(2017), as the travel and
tourism industry is getting
developed in a very effective
manner it is helping the
customers in very efficiently.
The travel industry takes
the responsibility of
providing each and every
facility to the customers
such as breakfast, meals,
rooms, insurance and etc.
All these facilities help
customers in feel free and
safe during their journey
which helps this industry
with positive feedbacks
(Schegg, et. al., 2017). This is
the best way of assuring the
customers for their
satisfaction and relevancy as
well.
Trends to include changing
trends in holidays - Use of
the internet became very
helpful for the people as
Conclusion
In this leaflet, the how travel
and tourism industry is
getting affected has been
described. Most of the points
like destination marketing,
Environmental awareness of
tour operators etc. have been
included to understand it
better.
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done on the larger scale for
different destinations of
tourists. They are getting
the availability to the large
base of the consumers in
the manner which is cost
effective. Increased
attention can also get
provided to the consumers
online, to make it better.
The destination marketing
is continuously changing
with the support of the new
forms of media.
they are able to book their
tickets for the holidays by
their own, for the
destinations they want to.
According to Harris (2017),
it became easy with the help
of customer services, tele-
text and etc. The people are
getting their tickets booked
by their own at the
convenient time and without
facing any kind of
frustration. This process is
been considered as a very
easy and cheap process. IT
helps in saving time and
providing as much as
information to the
customers which they
require. This is affecting the
business of travel agents as
people do not feel interested
to visit their places so far.
From the time when
customers started booking
their tickets online,
Trailfinders Ltd. started to
close their agencies which
are working on streets
(Harris, 2017).
Environmental awareness of
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tour operators- Nowadays
with the help of the internet,
people gets aware of the
environment of the
concerned place, where they
are going. On the internet,
they can get to know about
the entire knowledge of
weather which is happening
at that place. This process
helps people in saving their
time and money in most
efficient manner. People
become able to change their
plans by knowing the
environment of that place
and do not face any bad
experience in terms of
traveling. This information
gets provided by the
customer service sometimes
or it can easily get available
on the different websites.
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Task 2
Introduction
The current report is based on the various stages and timescales required for the development
of holiday. It is important to consider each and every step properly while developing an
effective planning. In addition to this, different types of contracting method and tour operator
are analysed below.
2.1 Assess the stages and timescales involved in developing holidays
Holidays are intended to allow individuals to celebrate an event or cultural significance in an
effective way. Various stages and timescales involved in developing holidays are listed
below:
Market research-Market research can be defined as a first and crucial step which can be done
by Trailfinders for collecting the market information and data along with the demand of
customers. It is important to identify each and every factor which can affect the holiday
package in positive as well in a negative manner. This process can be achieved within 18
days.
Planning- Planning process is a method of combining the market records and information
which picking a destination. The planning process involves 15 days (Cleave, 2018).
Pricing- Pricing of holiday package is the critical step for the tour operator. They have to
develop the cost price by determining the segment of customers. Penetration pricing strategy
can be used by Trailfinders so that customers can easily be able to enjoy their leisure trip at
minimum cost. Pricing can be done within 9 days.
Advertisement- Trailfinders is a famous UK based tour operator. Advertisement of packages
can be done on the official website or social media such as Facebook, Google or other. They
can also post their hoarding or pamphlet in the crowded place for attracting customers.
Advertisement of tour packages can be done in 8 days.
Distribution- Numerous of distribution channel can be used by Trailfinders for the
distribution of their tour packages. They can use direct sell method so that they can easily
take review and opinion of their visitors. This process will require 5 days (Cleave, 2018).
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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 types of tour operators are underneath:
Outbound operators- The outbound tour operators provide a wide range of international tour
packages to their customers. They are familiar with the latest marketing and selling tricks.
Outbound operators used to make a contract so that they will be able to know the arrival of
customers.
Domestic operators- Domestic tour operators provide tour packages within their region. This
type of destination consists of a national park, amusement parks, safari, and others.
Direct sell operators- The direct sell tour operators work in an agency where they can easily
communicate with wide range of customers. This type of tour operator does not require any
intermediate person for the delivery of services and goods (Cruisejobfinder, 2018).
Following are the different types of contracting method:
Fixed Contract- In fixed contract, the tour operator usually books flight tickets before the
journey. By signing the contract, travelers cannot be able to cancel their ticket because the
overall cost cannot be recovered again.
Allocation contract- In allocation contracts, the tour operator is used to book hotel rooms at
the same time off package.
Charters flights- Charter flights are provided to the VIPs or another person who is able to
afford the luxury services and goods.
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2.3 Calculate the selling price of a holiday from given information below.
Details Cost
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 comprises of two
drivers, tour manager, fuel and all road
and ferry taxes
11200
Cost of tour guide £945
Overall cost 16,983.40
mark-up value 33%*17305.96 5710.966
Sale price 31,168
Adjustments- -
Given exchange rate= €1.12
Selling price per person of overall tour= 31,168/42 = £742
The overall sale price of the tour package is £ 31,168
Each person is required to pay £742 to the tour operative.
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Conclusion
The above report explains different types of stages and timescale involves the development of
a tour package. Tour operator like Trailfinders is required to include every benefit in the
package such as travel protection, accommodation, food and beverage and others.
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Task 3
Executive summary
Brochure helps the company in making the customers get aware about the products and
services which the tour operators are providing. The task will carry out all the information
related to the designing of the brochure, and the alternatives of the traditional brochure. This
will carry out methods of distribution to sell the packages and which different tour operators
can use for selling their package.
Introduction
This task will help in knowing about the way in which the brochure can be designed by the
tour operator to attract a number of consumers towards them. This task will also help in
knowing about the alternatives of the traditional brochures which different tour operators can
take in use. It will also assist in knowing about the approaches of different distribution to sell
the package.
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3.1 Evaluate the planning decisions taken for the design of a selected brochure
Brochure assists the tour operators to advertise the package which they have created to the
customers. There are many processes which are used to create an effective brochure. There
are some planning designs which are used by the company to create the brochure:
Deciding the format- While creating plan proper decisions has to be taken by the company.
The format of the brochure has to be made in a proper manner. A thing considered while
deciding the format is:
 Size of the paper (Khairat and Maher, 2017).
 Content.
 Structure of the brochure.
 Style
 Quality of the paper.
Cost- While designing the brochure cost (budget) of tour operator is being considered so that
brochure can be created according to the cost. All the expense of creating a brochure like
printing design, paper, etc. cost of these things as to be considered by the tour operator.
Based on a product- All the things which will be added in the brochure have to be totally
related to the products and services which the customers will get in the package.
Target market and budget- Determining the target market as well as identifying the budget
will assist in knowing about the way in which the brochure has to be carried out.
Target market and budget- Target market and budget have to be considering so that
brochure can be created according to that (Mattsson and Orfila‐Sintes, 2014).
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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 numerous alternatives to traditional brochures for the different tour operators with
the help of which all can quickly and easily advertise the package they are providing.
Alternatives to the traditional brochure are:
CD- The brochure can be created on CD same as it is created traditionally. This brochure is
created in CD form. This can be distributed to the people easily.
Video- The information related to the package the tour operator is providing can be converted
into the video format. People can see and share the video from the tour operator's site or the
video can be shared with the sites like Youtube (Long and Shi, 2017). This alternative is fast
and less expensive.
Television- The advertisement of the package can be given on some channels. This will help
in attracting mainly the targeted customers.
Internet – This is the alternative through which information about the package or tour
operator can be passed through different social media's. It spread the information very
quickly. This is also one of the low-cost alternatives.
Recommendation
One of the best alternatives for the Kuoni tour operator is an internet, this alternative will
help the company in advertising the package through different sites. It will cost less and will
help in attracting various people through different places.
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3.3 Evaluate the suitability of different methods of distribution used to sell a holiday for
different types of a tour operator and recommend the most appropriate for your tour
package.
There are different methods of supply which can be taken in use by the company for selling
the package which they created for the customers. Different tour operators use dissimilar
approaches of distribution to sell holiday package. Methods of distribution are:
 Direct mail- Direct mail can be used at the time when the brochure or any publication which
contains the information about the package directly to the targeted customers or business. The
things are directly provided to the customers without having the intermediate (Xu, and
McGehee, 2017).
 Online Travel agencies- The travel agencies provide the packages of different tour operators
to the customers and the customers get the facility of booking the package by clicking on the
links. This fast process of advertising the products.
 Websites- The tour operators can make avail of the information about the package through a
different website. The information pops up on the screen while using any of the websites
which grasps the people's attraction to the information
 Call center- Call center calls the customers and tells about all the information related to the
tour package and influence the customers to purchase it. The call executives very effectively
promote the package to the people (Page, 2014).
 Daily deal website- This is the process of distribution, in this the customers who go to
purchase products get the vouchers of the tour package in which they get discount.
Recommendation
A website is the best method of distribution for Kuoni to sell its package. This will help the
company in providing information through different places quickly and easily.
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Conclusion
From the above task, it is being analysed that to create brochure proper planning has to be
done by the company so that it can attract a number of customers. The planning process
contains size, quality, color, of paper, content, etc. This task also helped in knowing about the
alternatives of the traditional brochure which different tour operators can use. This also
helped the reader in knowing about the different distribution method to sell the package.
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Task 4
Executive summary
There are some strategic decisions which are taken by different tour operators. Tour operator
also takes tactic decisions. Both the tactic as well as strategic decisions is taken by different
tour operators as to carry out work in a proper manner.
Introduction
This task will assist in knowing about the strategic decisions that tour operators take. This
task will also help in knowing about the tactical decisions which different tour operators such
as Alfa Travels use for taking appropriate decisions.
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4.1 Evaluate the strategic decisions made by different types of tour operator
Pricing strategies- The price is the amount which the customer pays for the product and
services which they buy. The price of the products and services helps in identifying the
products quality and value. So the tour operator needs to fix the price of the package in a way
which can define the product.
Surcharge policy- This is the strategy in which the Alfa Travels can raise their price of a
package at the peak time (Mowforth and Munt, 2015).
Positioning and image/branding- A bran provides a different image to the company and its
products. It is essential for the for the tour operator to create a good brand image which
would assist them in attracting more customers.
Choice of product in relation to customer portfolio- A product plays an essential role in
the company so it is important for the company to choose a proper product. Alfa Travels
provides packages to the customers in whom they provide different things so the selection of
that has to be done in a proper manner (Mowforth and Munt, 2015).
Distribution decisions- Tour operator has to choose proper distribution channel to provide
their services to the customer in a better way. The selection of the distribution channels
should be proper as to sell the products and services in an effective manner.
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4.2 Compare the tactical decisions that could be taken by a selected tour operator in
different situations.
The tactical decisions are considered as a medium run decision that gets changed according to
the requirements.
Competition- In all sector competition is high. The tour operator has to consider it and plan
the package according to it. The strategies which they will make have to be analysing the
competitor’s strategies properly (Telfer and Sharpley, 2015).
Tactical pricing- The pricing of the products and services of Alfa Travels is decided
according to the situation. There are different pricing strategies which are like:
 Fluid pricing- This is the approach which is being used by the company in which the
products and services are provided at a cheap price. The price is kept low in this and
afterward, it can be raised according to the situation.
 Yield management- In this approach the price changes according to the time, place, and
needs. The price of the product can be different for different customers (Telfer and Sharpley,
2015).
Discounting- This is being used at the time of attracting more number of customers towards
the company. Providing discount will assist the company in attracting a number of customers
in offseason also.
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Conclusion
This task helped in knowing about the different sort of strategic as well as tactical decisions
which different tour operators can use in the different situations. This helped in identifying
the proper strategies for the tour operators.
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Conclusion
From the above report helped in knowing about the tour operators. This report assists in
knowing about the different current trends of the different tour operators. It also helped in
knowing about the development of the tour operator. In this report planning process of the
brochure is being carried out which helps in knowing about the process which is used to
create the brochure in a proper way. It is essential for the company to create an effective
brochure which will help the company in attracting a large number of customers towards the
company. There is a various number of the alternative to the traditional brochure are there
which the different tour operators can use. It helped in understanding about the different
distribution method which is used to sell the products and services of the tour operator to the
different customers. This report also helped in knowing about the strategic as well as a
tactical decision which different tour operators can use to make proper decisions in the
business.
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References
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 Cruisejobfinder., 2018. All Types of Guided Tour Operations [Online] Cruisejobfinder.
Available at: http://www.cruisejobfinder.com/fm/tourguides/tour-operations.php [Accessed:
03 Feb. 18].
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tourism. Handbook of Consumer Behaviour in Tourism. Schegg, R. and Stangl, B. eds.,
2017. Information and Communication Technologies in Tourism 2017: Proceedings of the I
 Khairat, G. and Maher, A., 2017. Integrating sustainability into tour operator business: An
innovative approach to sustainable tourism. ARA: Revista de Investigación en Turismo, 2(2).
 Long, Y. and Shi, P., 2017. Pricing strategies of tour operator and online travel agency based
on cooperation to achieve O2O model. Tourism Management, 62, pp.302-311.
 Mattsson, J. and Orfila‐Sintes, F., 2014. Hotel innovation and its effect on business
performance. International Journal of Tourism Research, 16(4), pp.388-398.
 Mowforth, M. and Munt, I., 2015. Tourism and sustainability: Development, globalisation
and new tourism in the third world. Routledge.
 Page, S.J., 2014. Tourism management. Routledge.
 Telfer, D.J. and Sharpley, R., 2015. Tourism and development in the developing world.
Routledge.
 Xu, Y. and McGehee, N.G., 2017. Tour guides under zero-fare mode: evidence from
China. Current Issues in Tourism, vol. 20(10), pp.1088-1109.
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