Operations Management in Tourism Industry

This assignment provides a list of references related to operations management in the tourism industry. It includes various sources such as books, articles, and online resources that cover topics like tour operations management, yield management, service operations management, sport operations management, and disaster relief routing. The references are from reputable authors and journals, making it a valuable resource for students and professionals in the field.

Tour Operation Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1 ...........................................................................................................................................1
1.1 Effects of present trends and develop operations of a tour industry.....................................1
TASK 2 ..........................................................................................................................................3
2.1 Timescales and stages are involve in developing of holidays...............................................3
2.2 Suitability of different methods of contracting for different components of a holiday and
different type of tours..................................................................................................................4
2.3 Calculating holidays of selling price.....................................................................................6
Task 3 ..............................................................................................................................................6
P3 Assessing the planning decisions related with designing of brochures.................................6
P4 Evaluate suitable alternatives for traditional brochures.........................................................8
P5 Various methods of distribution to sell tour packages ..........................................................9
TASK 4 .........................................................................................................................................10
4.1 Strategic decisions taken by tour operator .........................................................................10
4.2 Various tactical decisions taken by the tour operators in the organization ......................11
.........................................................................................................................................................1

INTRODUCTION
Tour operations are the plans and methods of proving good quality of tour packages to
the customers. It provides various facilities to the consumers so that customers can visit various
places and countries. Firm uses various technologies which results in improving the performance
and leads to success of the firm (Afshar and Haghani,2012). Project discusses about two
companies- Trail finders and Kyoni company which are travel and tourism firms. They are
operated in London and Switzerland respectively. Assignment discusses about the various recent
trends which impacts the travel industry, stages and timescale in developing holidays, evaluate
the suitability of various methods of contracting for various components of holiday and types of
tour operator.
Project describes the selling price of the holiday, planning design of various brochures,
suitability of various alternatives to traditional brochures for tour operator and suitability of
various methods of selling various holiday packages for different types of travel operator. Report
explains the strategical decisions such as pricing, surcharge and positioning of brand strategy
etc. Assignment also discusses about various tactical decisions such as discounting,price
management strategies etc.

TASK 1
1.1 Effects of present trends and develop operations of a tour industry
Tour operators covers both sector of tour and travel for holidays executions. Incresingly
growing in products and services demands of a tour operators (Bamford and Forrester, 2003).
Tours and travel pacakages and product related services of operations of tour. This domain
having a retail sector growth. Present trends and developments are as follows: Disposable income of economy increases: Economy of countries give impact on
companies growth. Individual income of disposable is a income part which saves after a
applicants of money. Increasing of a disposable income of economy lead to rise in a
standard of living of population. Development of technology: Operators of tour are growing and it provides growth to a
technology. Execution of a new technology transaction. Reaching in a sector of tourism
increases and quality help in a digitalization. It makes their time and price more effective. Education institutes management: by an effective management outcomes domain of tour
operators is effectively growing now a days who manage education are a efficient
workers, which provides many managements of institutes. It make performance
increasing its qualities by a industries managers. Satisfaction of customers level: Trade finders Ltd full fill satisfaction of customers is very
necessary so that they again come to organisation. It will help in assisting them in
revenue increasing. They effectively evaluated so Trade finders Ltd can know about their
drawbacks which it help in improving. It definitely benchmark which is created for others
firms so that they can gain loyalty of their customers. They can introduce schemes of
various kinds related to holidays. Globalization and foreign direct investment: Boundaries of a country are eliminated by
globalization. It influence in expand of a tour and travel for reaching to a industries of
worldwide (Barratt, Choi and Li 2011). Maximizing countries access on overseas of
market with a help of foreign direct investment. Capital is generated in country and
growth of opportunity increases a operators of tour by providing support. Customized products: facility of customization is given by a sector in their products.
They gives a packages of holidays, consider designs and their demands and requirements.

Holidays packages gives them a products varieties and their features as per their
customization of customers. Marketing techniques: It is a source of techniques of marketing for customers making
and their awareness about their sector and products (Berkoune and et. al., 2012) .
Trailfinders Ltd use tools of marketing for tour operator for demand rising of products
and reach is expanding. Emerging trends in trailfinders Ltd includes packages of
holidays, others sector collaboration to customers get aware, gives points, educate and
sector discount which are used by a operator of tour sector. Source of marketing help
Trailfinders Ltd for business promoting. With this about present trends customers should
know in a industry of travel and tours about which a organisation are providing great
deals which are as per customers demand and needs. Operator of tour relate some tools
with present trends. Bodies of government new strategies are implemented such as brand
ambassadors as a sports person for advertisement, appointing of an famous actors. They
mention in many books about a places which are famous where visitors have to visit that
all famous places. Cost of transportation: It is a important role in operator of tour as influenced prize by a
cost of transportation. Increasing in products demand when prize of transportation is
lower. Organisation provides a facilities of a low cost. Transportation cost depend on a
various kinds of taxes, charges and cost of a fuel. Effects a factors of PESTEL: Growth of an industry factor is related with PESTEL. Its
meaning of a PESTEL are political, environment, social, technology, economic and legal
are a factors of PESTEL (Bonilla Priego and et. al., 2011). Effectively making of a
decisions all these factors are analysed for a growth of organisation and established
certainty. All these factors having their positive as well as negative aspects in sector of
tours and travels.
 Competition: In a very easy manner entrance and existence help in competition
increasing in a sector or they can say market of a travel and tours. Competition increases
help in employment increasing and made of equilibrium between supply and demand.

TASK 2
2.1 Timescales and stages are involve in developing of holidays
Holidays are replanted for enjoying of their holidays in a very special way. Planning of
holidays their first process of every and each activities provides a work frame of all activities are
going to held (Brent Ritchie and et. al.2011). Making on a particular decision helps by analysing
with others options. Stages are effectively and holidays developments are as follows: Research of destination: In a process of developing of holidays first stage is destination
are searched where they have to make a tour and travel. Travelling of destination are as
per demand of a customers (Decision-Making for Tourism Destinations: Airline Strategy
Influences, 2017). Their are many types of research are their which organisation have to
do like analysis of PESTEL which research are done according to destination. It take for
completing of a process within two, three days. Development route of tour: After completing of a first stage of developing holidays then
next stage is development of a tour route. Here summarized of program of a tour which
contains transportation, all destination, travel route, accommodations and places where
they have to visit. This process should be very systematic for holiday completion without
any disturbance. It consumes two months for completing of this stage. Negotiations: there are many vendors and suppliers having offers with operator of tour.
trailfinders Ltd do negotiate with their vendors for cost controlling of their packagers.
Customization of a groups holidays are not much negotiating in travel of tour prize,
transportation and accommodations. It take time for completing this stage of four months. Determination of prize: After a stage of negotiation next step of developing of an
holiday is a cost of packages which contains fuel cost, foreign exchange rate of country,
taxation framework (Brown and et. al., 2013). Prizes are fixed at least before 10 months
holiday dates. Maximum one months are taken by costing after completion of a
negotiation process. Tour packages marketing: after prize determination then they move to next stage of
marketing of an tours packages. It is a main factor of each organisation for raising

customers awareness about products and services. It will help in profitability increases
and demand of a Trailfinders Ltd. This stage is completed within a four to five months.
 Execution of tour: After a stage of packages of tour marketing then next stage is of
execution a final stage of developing holidays (Chon and Yu, 2012 . Preparations and
estimations all are converted into reality. Effectiveness of an tour execution make a
successful tour and travel. All marketing process is exercised and many of a operators of
tour of Trailfinders Ltd having controlling policies and all activities are monitored
process. Consumes times which is discussed in a travel route by a operator of tour.
2.2 Suitability of different methods of contracting for different components of a holiday and
different type of tours
A tour package encompasses several components from the various backgrounds which
marks the completion of a plan. The distinct components which can be included in the tour
package are listed below: Hotel: It contains facilities to a consumers. Students needs is undertaken of a various
contracts of accommodations like staying in a hotels in a various places during a travel
and tours. Five days of tour contains London sightseeing, France and United kingdom to
Paris. Staying in various places while tour and various contracts need to be complete. Transport: Booking of tickets includes dropping and picking travelling services for
sightseeing. Purpose of a contract is done with airlines or another travelling mode,
individual pay for cab hiring and driver pay for making their tour memorable trip for
customers. Attraction: It is a person which gives ideas for travelling to various places which attract
while trip. It is a total sum of various place of visiting. Knowledge gaining at a places
were they had already visited while package of tour operator. Need of a tourist guide who
guide about a place and various places for travelling in London, Paris, Brugge and
Brussels, Belgium and France which attract customers. Pay to guide is total amount and
contract with a guide for making a tour more smoother.
 Food and beverage: While staying in a five days tour they need eatables and food. Kinds
of contract purpose enter with a various hotels and restaurants for offering these services
to a customers whose are travelling from place to places.
However the various types of contracts of a tour package are as follows:

Operators of tour are designed packages by having a features of various and having a two
methods which are fixed contract and sale contract. Various kinds of operators of tour used these
contract of methods. Trailfinders Ltd make a contract with vendors and suppliers by consider the
following contracts and operator of choosing a operator particular which is mostly suitable are
discussed in detail are as follows: Fixed Contract: This is referred to one of the traditional method of formulating a tour
package. Under this approach booking are made before the inception of the tour and
services which are predetermined are offered to travellers. There is a certain amount of
rigidity to this term of contract. This approach is suitable when the tour operator is
aiming to enhance the level of sales. However the range of utilisation of services does not
make a difference as it is carried out contractual basis. In this approach the tour operator
aims to achieve cost efficiency so that profits margin can be maximised. This contractual
basis can often lead to losses as well. For instance booking have been carried out for 50
traveller and the amount of booking which were made stands at 38. in this particular
scenario the operator is facing losses due to lesser number of bookings.
 Sale Contract: This is a contemporary approach while booking in which prices charges
for the tour are comparatively higher than that of contractual basis. The responses of the
consumer towards the tour determines the amount of booking and contracts are formed
accordingly. The type of contract provides operator which certain degree of flexibility
and he is able to provide services according to the responses. This ways of organising a
tour is often less risky as the booking will be made according to the number of travellers
who have signed up for the sale contract. This particular feature helps an organisation to
stay on the safer side of business. There is minimum chances of wastage in this approach
as services are generated as per the requirements. Trail-finder have identified this as a
more suitable approach when it comes to forming contracts. This independently owned
organisation emphasis on taking risk minimisation measures. The another reason is that
company is renowned when it comes to provision of tailor-made tourist plans. Therefore
this particular scenario can not be achieved through contractual basis and an organisation
have to definitely opt for sale contracts.

Analysing of kinds of contracts they know that return generated higher having a risk
high. Fixed contracts are having a high risk and its gives a profit and high level discounts and
contract of sales have no risk and having its higher cost.
2.3 Calculating holidays of selling price
In a present case, tour of educational have five days nights for Brugge and Brussels,
Belgium development. Booked passengers which are made with Trailfinders Ltd airlines on a
contact of fixed payments and groups of size is 42 and its basis are in advance made rather than
actual capacity utilized.
Table 1: presenting total cost containing in package brugge, brussels and belgium
PARTICUALRS TOTAL COST IN POUNDS
Room cost 9000
Luxury coach 11200
Local tour guide 945
Total costs 21145
Profits@33% 10414.7
Total tour package cost 31559.7
Local Cost
PARTICUAR COST PER PERSON
Room cost 42.85714286
Luxury Coach 266.6666667
Local tour guide 22.5
TOTAL COST 332.0238095
add: Profits @33% 163.5341151
TOTAL PACKAGE COST 495.5579247
As shown on above calculation on table of a selling price in a educational tours for
London students. Company determine their stay at grand casselbergh in Bruges. Aggregrate cost
is £107 every night. £96 Euros per twin with breakfast. Luxury coach cost is 48 seater is
£11,200 with 2 drivers, ferry taxes and fuel. Local guide is taking more than £945 along with
spot exchange price is £1.12 per £1.

Task 3
P3 Assessing the planning decisions related with designing of brochures
In the travel sector it is crucial to educate the customers related to the various products
and services. Brochure is a document made by the organization to promote various products
and services (Gountas, 2005). It includes all the relevant data related to goods and services. The
cost is low as compared to other alternatives. This is done to attract large number of customer.
Brochure can be distributed through online and offline (Kauppi and et. al., 2013). Factors can be
considered by Kyoni company while designing the brochure are -
 Issues of developing the brochure - In this company determines the problems related to
the product and services before creating the brochure. Issues include
targeting,segmentation, positioning,advertising and promotional techniques and other
data. Manager of Kyoni firm has to evaluate these factors to take various decisions and
can compare them and choose best option among them (Hoseason and Johns, 2011). It
will help manager to create attractive brochures and can capture more customers. Thus
firm can increase the market share and leads to generating of more revenues. Thus
company can easily expand the business.
 Format of brochure – It is a document which contain various information related to
designing of brochure. This is used to advertise and promote the product. This includes
relevant information that is provided to the consumers. This includes
Heading – It includes the heading which means name of tour company. It is at the top of
the brochure. It can be written with capital letters with the black colour.
Sub heading – It means the subheading which is written after the heading. It describes the
topic which is discussed in the brochure.
Travel destination images and pictures – It means the images and pictures related to
travel and tourism places. It can be given to attract the customers.
Estimated price and the meal facilities – It means the price related to various travel and
tour packages. Brochure can also contain different information such as meal facilities etc.
Budgeting and target market - Before creating the brochure Kyoni company has to do
market segmentation in which it has to divide people on basis of homogeneous needs and then
make various strategies related to target a particular section of population. This helps in meeting

the needs and preferences of consumers. Budget needs to be considered while making various
plans and policies (Johnston, 2012) . Thus company can generate more revenues.
 Timescale and stages of production – Company has to create and publish the brochure
in time so that extra time is not wasted. Firm has to do proper copywriting and colour of
brochures to attract more consumers. Thus firm can increase the sales and can gain more
profits.
Different types of brochure are -
Leave behind – It is self explanatory brochure. Interaction is already with the customer
about the advantages and pricing etc. In this detailed description of details are to be given so that
it is different from the competitor.
Respond to enquiries - In this brochure it contains attractive and innovative details so that
prospect can purchase the product. It helps in convincing many people through this brochure.
Handouts – In this there is no knowledge of the prospect. In this attention needs to be
gathered from the prospect through many aspects. In thus front and contact page can be made
more attractive so that it attracts many customers. In this attractive figures,imagery pictures and
images are to be included so that it can attract many consumers.
Point of sale – This helps in creating many designs in brochure. It contains all details and
images which can attract more consumers. It is deigned in such a way so that prospect after
observing it immediately attracted towards it and purchase it.
Direct mail – In this stage there is conversion of customers into prospective buyers. So
hence detailed information is to be given to buyers and emphasis on cover and front page which
ca attract more consumers. After creating brochure they are send through direct mail. Avoid
sending junk mails as it gives negative image on consumers.
Company can use direct mail brochure as it attracts many consumers in shorter period of
time. It incudes all details of company, attractive offers and different types of pictures and
images which can attract customers very easily. It includes 3 parts creating offers selecting
targetted audience and then mailing an offer. The uses of this brochure are-
Offers – This brochure can give different types if offers such as discount, financial
services and donation request from consumers. Offers can also include free gifts and other prizes
which can attract many consumers a lot. Through different offers it can attract many consumers.

Effective source – It can also be used as business to business marketing. In this many
innovative packages are send from one to another business. In this more than 1 mail is send to
increase the sales. By using this sales it can generate leads and contacts of prospective buyers
from another business which in turn leads to increasing sales of firm.
P4 Evaluate suitable alternatives for traditional brochures
Classical approach includes the advertising of products and services in the market in
traditional printed form (Lam and et . al., 2014). But now the brochures has relevant information
related to various products to attract the consumers. There are use of digital technologies to
promote various commodities to gain consumer interest. Thus firm can increase their sales. The
various alternatives for creating brochures by Kyoni are- Videos- There are various websites such as You tubes etc. to promote various products
of the company. In this site firm can put various images and pictures of destination and
places. It is done to attract various customers. Thus organization can capture man users. It
leads to increasing of sale and revenues. It helps in maintaining positive image in minds
of customers. Direct mail – It includes the promotional messages given to various consumers on their
mails. Company can also give the advertisements to the users. This helps in drawing
attention of various people and generates the interest of the consumers. This leads to
increasing of sales and revenues (Stevenson and Hojati, 2007) . Firm can change the
methods and procedures by receiving the consumer feedback and suggestions. Thus
company can expand their business. So firm can maintain unique position in the industry.
 Internet – It includes different websites which promotes various products. The site
includes the relevant information about the goods which help in promotion. It is done to
attract many consumers. Thus it generates the interest of many consumers. It results in
increasing of sales and profits. This helps in maintaining unique position in the industry.
Firm can also give strong competition to other companies.
 Deliver companies - There are various deliver companies who helps in promoting and
advertising of the goods and services. They make various plan and policies of distributing
the brochures in various places (Li, Robinson and Mabert,2012) . Various salesmen can
be hired to distribute them in various destinations. Company also make strategies and

policies related to promotion of the products through online medium. This helps the firm
in increasing their sales. Thus firm can generate more revenues and market share. It
results in expansion of the business
P5 Various methods of distribution to sell tour packages
There are various methods and techniques to sell tour packages. It includes direct
sales,agencies, call centre, internet etc (Lifset and Boons, 2011). Now a days companies are
using various digital technologies to promote and advertise various products. Tour operator make
various plans and policies to sell holiday packages. They are done to increase the sales and to
generate profits. Various methods of distribution of Kyoni are - Direct sale – This is an effective method of promoting the packages. Firm can hire many
salesman to distribute various holiday plans. They go to various places and regions and
sell the packages (TOP 10 WAYS TO DISTRIBUTE YOUR BROCHURE TO THE RIGHT
TARGET AUDIENCE, 2017). Various salespersons explain the information related to
tours and other relevant data. This is done to increase the knowledge of consumers. Thus
customers gain interest and ready to purchase different plans. So it leads to increasing the
sales and profits of the firm. Agencies – There are various agencies of travel company which helps in promotion and
advertising of various products. They make plans and policies related to distribution of
brochures in various places and regions. Agencies explains to all employees regarding
their role and responsibility. It helps employees to do their work efficiently and
effectively. So company can do high promotion of their products. Firm can capture more
employees. It leads to increasing of sales and profits.
 Call centres – There are various call centres which are situated in various countries.
Employees call to each customer and give relevant information about the travel packages.
They explains about the prices and various destination to various people. It helps in
attracting more consumers. Consumers can easily understand the data and have knowledge about
the packages. So hence there is increasing of sales and profits. Thus company can maintain the
unique position in the market (Luis and et. al.,2012). They can give strong competition to other
companies. Internet – It includes various websites which help in promotion and advertising of the
holiday packages. There are various websites which creates unique and innovative pages

of tour companies. It gives relevant information related to the prices,rooms etc. Thus
customers can have knowledge about the packages and they become aware about it. So it
increases the attention of each consumers. Thus firm can increase their sales and profits.
Thus they can easily expand their business.
 Telephone – Salesman of various companies sell various holiday tours through
telephone. They explain about the plans and policies,prices and other relevant
information to the consumer (Medlik, 2016). They solve all the problems and issues of
customers. Consumers take busying decision as their queries gets solved .This helps the
company to increase their sales and profits. Company can easily capture more consumers
and expand their business in limits time. Thus it increases the efficiency and effectiveness
to perform better in long run.
TASK 4
4.1 Strategic decisions taken by tour operator
There are various strategic decisions taken by tour operator to achieve the organization
goals and targets. This is done to increase the efficiency and effectiveness of the firm. This leads
to improving the performance in the long run. Decisions are taken for creation effective plans
and procedures related to the tour packages. Various strategic decisions taken by Trailfinders are Pricing strategies – Company make various pricing strategies such as seasonal pricing
which includes high or low prices according to various seasons. It also uses last minute
pricing which includes increasing the daily prices to increase the booking of packages.
They also use discounting policies in which company give low pieces to their packages to
various customers (Pohl, 2014). It attracts many customer from various places and
regions. Thus it results in increasing of sales and profits of the company. Surcharge policy – Company usually increase the prices in the seasonal periods. This
helps in attracting more customers. So company can increase the sales in the peak season.
Thus firm can attract more consumers in less time period. Thus it can generate more
profits and market share. Thus firm can generate unique position in the industry and can
give strong competition to other firms. Thus firm can expand the business in shorter
period of time.

 Positioning of brand – Company can make various plans and policies related to
positioning. Firm is doing segmentation on basis of geographic and behavioural basis.
Company creates according to needs and preferences of cities,towns and villages. It also
make plans and policies related to the children,adults and old people. So thus it fulfils all
the requirements of all people. So thus company can easily increase their sales and
profits. It can increase their market share and maintain unique position in the industry. Choice of product – Organization can explain various plans and policies related to the
packages to the customers (Robinson and et. al., 2016). For example firm can explain
that there are warm and cold places. It can also describe the historical monuments and
places to consumers. So thus it is easy for the customers to rake relevant purchasing
decision regarding various packages. It also give convenience to users in choosing their
places. Thus organization can increase their sales in very shorter period of time. Firm can
improve their performance and can generate more profits.
 Distribution decisions – Company can easily distribute the holiday packages through
different methods. It can use direct sales in which salesman go and sell various holiday
plans in various regions and places. They can use digital technologies for promoting
various products. In different websites firm can create innovative webpages to attract
many consumers. Organization can also share various videos and images related to
different destination and places. So it satisfies and attracts the consumers to purchase the
package tours.
4.2 Various tactical decisions taken by the tour operators in the organization
Tactical decisions are the decisions related to the daily activities and tasks. They solves
the issues and problems related to the various packages. For efficient and effective functioning of
the organization manager takes strategic decisions. Various strategic decisions taken by Trail
finders are Triggered by competition - Company faces huge competition from other firms. So thus
Trail finder make plans and policies by evaluating various competitors in the market.
They change their methods on daily basis so that they can easily promote the packages
and advertise their products. This helps the firm in increasing the sales and market share
in limited time period. Organization can maintain competitive edge on other firms. It
leads to success and growth of the company.

 Price wars – Trail finder evaluates the pricing strategy of the competitors. Then it create
plans and policies to reduce or increase the prices of holiday packages (Robinson and et.
al.,2011) . Thus organization can fluctuate prices on daily basis to increase the sales and
profits. They set such prices which give strong competition to other firms. This helps in
earning more revenues (Rousseau, 2014). Thus it can capture more customers. Thus firm
can expand their business in various countries. Yield management – Company creates various strategies plans and policies to increase
the profits. Tour operator can motivate various employees to perform better. This helps in
increasing the energy and enthusiasm level so that they can easily do their activities,
tasks. It results in efficient and effective functioning various activities. Thus it results in
increasing the sales and profits. Thus organization can expand their operations in various
countries. Thus firm can capture more customers.
 Maximising occupancy of contracted beds – Company create products according to
supply in the market. They evaluate the requirements of beds for the consumers. Thus
accordingly sells the rooms. Firm tries that each bed can be sold to all customers.
Through this there is no vacant bed. It reduces the wastage of resources of company. This
helps in increasing the sales of firm and profits. It also solve the problems of the customers
regarding delay of the services.
 Discounting – Company adopts the discounting policy for promotion of the tour
packages. They give the rooms and other services at low price. This helps in gaining
more attention of the consumers. Thus firm can capture more consumers in less time. It
leads to increasing of the sales and profits. Thus users give referrals to the friends and
relatives. This results in huge promotion of the packages of the firm. It results in growth
and success of the company.
CONCLUSION
Conclusions gives a program summary where overview is covered an aspects of keys
which are discussed on a above report that differents aspects are discussed of a travel and tours
sector. It also discussed about a present trends and imoact over a tour and travel development. It
also discussed techniques of a organisation tour. Alternatives and brochures are analysed.

Understanding of two elements of various kinds of travel and tour operators of a holiday or
pacakages of tour affects pacakage of tour functionings (Russell and Taylor-Iii, 2008). It also
gives understanding on stages of holiday developing or pacakages of tour. It help in knowledge
development in a way which planning of a process of decisions are evaluated and design.
Suitability of a many distribution methods are used by a various kind of a operators of tours
which are discussed for quality enhancing of their services which are offered by customers and
area expansion of operations of travel and tour sector (Schwartz, Tapper and Font, 2008).
Differenciations are made between decisions of tacticals which are taken by a operators of tours
in a various conditions are arised on front of it.

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