Tourism Supply Chain Coordination

This assignment delves into the concept of tourism supply chain coordination, specifically examining the collaboration between tourism hotels and tour operators. It references academic articles that discuss various aspects of this topic, including the integration of research and practice in disaster relief routing and the application of OR models with stochastic components in disaster operations management.

TOUR OPERATION
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
Covered in poster....................................................................................................................1
TASK 2............................................................................................................................................1
2.1 Stages and timescales involved in developing holidays...................................................1
2.2 Suitability of different methods of contracting for different components of the holiday 2
2.3 Calculation of selling price of a holiday...........................................................................4
TASK 3............................................................................................................................................4
3.1 Planning decisions taken for the design of brochure........................................................4
3.2 Suitability of alternatives to a traditional brochure..........................................................6
3.3 Suitability of different methods of distribution used to sell a holiday package...............7
TASK 4............................................................................................................................................9
4.1 Strategic decisions made by different types of tour operator...........................................9
4.2 Compare decisions that could be taken by a selected tour operator.................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Tour operation management can simply be defined as those operations that are used by
tour operators in order to provide holidays accommodation and services to users. A tour
operators gathers tour and travel components so that they can make a package holiday (Robinson
and et.al., 2016). They effectively advertise and produce brochures in order to promote their
services, products or holiday packages. They also provide travellers luxurious facilities such as
fine dining, travelling and many additional services . These are all facilities and services that
makes their holiday more enjoyable and entertaining. This is an important constituent in the
tourism industry. There are several functions of tour operators. For example they work as agents,
promoters or market the image of the destinations. They not only support the tour packages,
they also promote the destinations who are responsible of creating the broad path and packages
based on innovation. The present report which is based on the tour operation management. For
example 3-Star WestCord Art hotel. In this project, effects of current or recent trends and
development on the tour operators industries are explained. The stages and timescales that is
taken in developing any holidays are also described here.
TASK 1
Covered in poster
TASK 2
2.1 Stages and timescales involved in developing holidays
Making or developing plan of holidays is not an easy process. It consumes a lot of time as
it is a lengthy process. Sometimes it takes a long period like to plan a overall holiday package.
For example 3-Star WestCord Art hotel has stage such as :
 Initial Research: In order to create any holiday, it is very essential for understanding the
structure of market of the tourist destinations, competitors who are offering same goods
or services, preferences of consumers, etc. This all requires a lot of research as it is very
important to interpret what goods will be successful and what should be there prices
(Kauppi and et. al., 2013).
 Tour Itinerary creation: After complete research, the next stage is to develop an
accurate itinerary that involves the decision-making of several things like what should be
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included in the packages of holiday , making of timescales in order to visit destinations,
time spending at particular location.
 Suppliers and vendors negotiations: This stage involves identification of suppliers and
vendors are done and dealing with them regarding what type of services have to be given
to users in tour by doing negotiation with them (Mak, 2011). It is kept very clear that all
demands are done from suppliers should be completed at fixed time and if any late
occurred in this, then penalty will be imposed on the vendors.
 Determining cost of the holiday package: Following stages are as it important stage is
to determine the costing of holiday packages. This is a very critical decision-making.
They have to decide the prices of accommodation, cost of travelling from airlines, cost of
facilities provided to them on ground, wages of their employees, marketing cost, survey
conduction price, cost involves in advertisement, etc. (Luis and et. al., 2012).
 Fixing the price of holiday package: After calculating all the costing of several
operations, the next step is to fix the the pricing of holiday package (Medlik, 2016). The
general way of determining the price of package will be done by adding the profit margin
with the total cost. Several other things are considered like prices offered by their
competitors, rules and regulations laid by government, the amount of money that
customers wants to pay, etc. After focusing on all these things, the cost of package is
decided.
 Administrative staff: This is needed in the season of holiday as different roles and duties
have to performed by them which is decided after appointing them (Moutinho, 2011). For
example, making arrangement of front office area of hotels, reservation system, etc.
Hence, it is concluded that in developing a holiday package, minimum 1 to 2 years of
time is needed by tour operators.
2.2 Suitability of different methods of contracting for different components of the holiday
The major part of prices of holiday package is determined by the accommodation only. It
also impacts the satisfaction level of the traveller who purchases such packages. A tour operators
have to fix some factors in their minds while they are giving contract of accommodation that are
defined below:
 Price: The cost of accommodation is the main factor that impacts the pricing of tour.
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 Quality and safety: The quality of settlement must be provided in accordance to the
prices paid by travellers. Additionally, there must no compromises in terms of safety and
security of tourists. Hence, it is the duty of tour operators to ensures the levels of safety.
 Right accommodation for the right consumers: There are different consumers having
the different requirements and accommodation is one of the factor that impacts on tourists
(Martinez, and et. al., 2011). For instance, a family going on holiday will book a hotel
that has facilities of park or play area where their children can play.
Generally two methods are used by tour operators of 3-Star WestCord Art hotel in giving
contract that are listed below:
 Fixed contract: This type of contract is fixed in nature and done with the stakeholders
like hotel owner and head of transportation by the operators of tours. A definite sum of
revenue have to provided by the tour operators to them but they do not have the guarantee
that those specific services will be provided by hotel owners or transportation owners.
Some time rooms are get filled in the hotels , due to this tour operators have to face
serious problems as they have already paid money at the beginning of contract (Kauppi
and et. al., 2013). So, such type of contracts are generally fixed at low prices in
comparison to the sale only contract. But this is also true that this type of contract will
make high amount of earning at the peak seasons because at that time every rooms gets
filled by travellers. This business is very benefit-able for dealers as they get a fixed sum
of money at the beginning of contract without having the tension that their rooms gets
filled or not in off or peak seasons.
 Sale only contract: This is very unique from the above one because here dealers receives
money after the booking of rooms in hotels. This is very simple and are commonly used
for mass market (Luis and et. al., 2012). Here financial gain of dealers depends on the
number of tourists coming to visit their hotels.
 Rack rate: This is nothing but the public price that is paid for accommodation. Tour
operators are not keeping any contacting relationships here but are dependent on the
number of booking done for accommodation.
 Ad- hoc rate: Here tour operators do their task on the basis of contracts. The contacting
is done on a agreed cost that is below than rack rate but guarantee regarding room is not
present.
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2.3 Calculation of selling price of a holiday
The selling price of holiday package is determined by the 3-Star WestCord Art hotel by
identifying the overall services provided by them. The costing of conveyance, room for
accommodation, hospitality facilities and several other services charges are included in the
selling price. Also, some of the offers should be given to tourists so that they get attracted and
select this corporation for their vacations (Guo and He, 2012). For instance, hotel owners should
give some discount on booking more than two rooms of hotels. This discount factor is decided by
the negotiation power of dealers. For example, current holiday package given by firm needed 12
single and 24 double rooms that have the price of 400 Euro for each double room and 300 Euro
for every single room is provided as an offer by hotel manager.
The other important factor which impacts the cost is the transportation asseveration which
is as per the distance of hotel from airport or railway stations. This is depending on the number of
tourists are travelling in buses or several other vehicles that is reserved for the intention of
travelling from airport or railway stations to the destination. There are several other additional
factors in a holiday package that are provided by venture such as fresh and tasty lunch, cleanness
done, decoration by means of flower, or other services that is offered on demand of users. These
all facilities charges extra money (Gass and Harris, 2012). Hence, holiday packages have a
standard costing which is imposed by the owners of hotels, transportation agencies and several
additional costs that is put by the tour operators for their best servicing. Therefore, overall cost is
5000 Euro is determined by including the pricing of transportation.
The package of 5000 Euro provided by firm having the time period of two weeks. This is
proved to be beneficial for the organisation and it can be easily afford by any user. But it is noted
that extra revenue will be charged for each additional services that is excluded from the budget
plan of venture.
Calculation of selling price of holiday are done below:
Cost Cost on Euro or Pounds
Price of one room 168 euro for two sitter
Per person cost 84 euro
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Per person pricing of breakfast 11.5 euros of one person
Total 95.5 euros
Total number of pupil 46
Total for 46 pupils 4393
Rate of exchange €1.15 per £1
Rate according to exchange rate 3820
Number of days of tour 7
Total cost for 7 days of tour 26740
50 seater bus rent 10800 pounds
Guide costing 1200 pounds
Total Amount 38740 pounds
Pricing of complete tour 38740 pounds
Profit margin of venture 9685 pounds
Total costing consists profit firm 48425 pounds
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Cost per pupil £1052.71
TASK 3
3.1 Planning decisions taken for the design of brochure
The 3-Star WestCord Art hotel have to design a selected brochure that is very essential.
This planning process will consist of four major steps that are discussed below:
 Research for planning: This is one of the necessary step in developing a brochure for
holiday package. Researches have to be carried on in order to realise the lifestyle of
travellers so that same brochure can be design for them. Organisation can also concentrate
on past records that shows several types of brochure. By examining those they get an idea
of developing new one.
 Writing contents: Now contents should be written that can be easily read. In this
benefits of the product or services provided by company have to be highlighted. All
contents have be documented in bullets points so that it attract users (Disch, 2016). The
heading and subheading must be properly or clearly made so that no confusion will be
occur while reading. In this corporation should mention their website, mobile number,
email, permanent address,etc.
 Writing heading: Then heading is written. One of the biggest mistake of brochure maker
is that they put the logo or their business name at the top of the brochure. Travellers looks
for the services provided by corporation not their name.
 Supplier negotiation: In this stage, negotiation is performed with the suppliers of
brochure as price of brochure includes the major area of marketing. So organisation are
concentrating on developing new styles of brochures in order to draw attention of large
number of travellers.
 Admin: After recognising overall methods of brochure designing, admin design the
brochure. They assures that those design will show their effectiveness to organisation.
Also, it is their responsibility to check again the information filled in the brochure in
order to identify any wrong data (Dietz, 2011). If there exists any false information in the
brochure then it must be removed by writing the correct one. Additionally, it is the task of
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administrative department to ensure about the potentiality of brochures as it has to be
addressed among mass market section.
 Marketing: The work of team members of marketing is to deliver or transfer brochure to
their customers by providing the guarantee that it is given to the right person. This
increment the awareness of holiday packages to the potential users of firm. The team
member uses utilizes different methods in order to distribute brochure like print media,
designing banners, posters, outdoor display, using network or internet in designing of
electronic-brochures, etc.
If above written planning does not work then electronic brochure can by created that does
not such steps. This is very easy to draw and one can change their styles or designs if those are
not accepted or wrong according to their heads. This also saves times as well as papers as large
quantity of paper get wasted in making physical brochure. And while making such brochure, no
one can edit their designing, they have to torn their work and make it again as per their need. It is
very easy to transfer or supply e- brochure as almost all organisation are offering online business
and can send their brochure to clients via email, what's app, twitter, etc. Therefore, enterprise
need to create or design electronic brochures with the help of internet.
3.2 Suitability of alternatives to a traditional brochure
Tour operators of 3-Star WestCord Art hotel used to utilize the conventional brochures
from long period of time. Physical brochures are designed by printing which is delivered to the
targeted sector of company in order to create awareness among users regarding the facilities
provided by several types of tour operators (Robinson and et.al., 2016). While this physical
system has some demerits as this is very costly and cannot afford by common people. This
critical issue has been resolved by using e- brochure. This can be developed by using internet by
corporations for their consumers. This may consist of multiple contents of pages and that content
is documented by occupational group in an enterprise. This includes the creative working such as
inserting images, graphics, etc. (Medlik, 2016). These facilities are provided over the network
and having the forms like online banners, mails, website, etc. The powerfulness of e- brochure is
very high as people of United Kingdom has been increasingly using internet services. According
to the report of a survey , 15.4 million of people are utilizing e-brochure in relation to the
physical brochure. Additionally, it is also recognised that more than 50 % of organisations are
engaged in doing online business so the traditional brochures are very rarely used in this modern
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era (De Sausmarez, 2013). Therefore, the demand or trend of e-brochure has been drastically
increases due to the fact it is similar to online business. Some of the merits of e-brochure are
listed below:
 The use of e-brochure has stopped the cutting down of trees and it is proved to be
environment friendly which aids in increasing the business of travel and tourism. It
prevents the wastage of papers that is done in conventional printing.
 It also reduces the mistakes that is occurred while creation of physical brochure.
 It also saves the time as it takes very little time in comparison to the physical brochure.
 It also saves the revenue of corporation as it diminishes the work of designing and prices
of marketing. Now no money gets wasted in printing as PDF file of e- brochure can be
developed (Moutinho, 2011).
 E-brochure are more flexible regarding marketing. Several templates can be used for the
designing purpose of brochure.
 This can even be design at home without going at work place.
 A large number of customers can be attracted online by sending them different e-
brochure as much as possible.
 Errors occurred on the physical brochure cannot removed. This causes the loss of paper
as new paper will be taken for next work. While in the case of e-brochure one of the best
thing is that , it is easy to modify or alter. If some changes needed to be done, it can
easily done.
 The advancement in technology and graphics made the brochures most attractive. The
feeling of paper can also be created via this.
 They are easy to download but the speed of downloading is depending on the speed of
internet connection.
Disadvantages of traditional brochures are listed below:
 Higher cost of materials and prints are associated with the physical brochures.
Corporations have to design printed brochures in a large number that may cause a large
amount of costs of printing (Chon and Yu, 2012).
 The printed one has very small or limited space to define about a specific product or
services . But travellers wishes to know about the description of goods or services more
in relation to images or graphics.
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 Additionally, enterprise have to spend a large sum of money in distributing and mailing
the printed one.
 Printed brochures are not thought as an environment friendly tool as it causes waste of
papers. This causes cutting down of trees at large extent.
3.3 Suitability of different methods of distribution used to sell a holiday package
3-Star WestCord Art hotel uses following methods to sell their holiday packages that are
following:
 Brochure distribution method : Sir Thomas cook has invented this method and this is
known as one of the oldest method which is used in selling holiday packages. This is
same as women wearable or clothing magazine and a holiday catalogue is made by
making certain modification by giving more options of services (Chan, Online News
Link, 2013). Those brochures are delivered to the consumers associating with the contacts
details so that they can be in touch with them in future also.
 Website distribution method: This is a method that uses technology in selling holiday
packages. This is done by using technological tools such as electronic mail, social media,
etc. Customers are using internet services in large amount, ultimately this method
increases the popularity among themselves because this is of low cost. Also, by using the
network, now products or services can be delivered to that places where printed brochures
can not send.
 Agent distribution methods: There are different aims and objectives of this method that
cannot be completed by using other methods like website distribution and brochure
distribution methods. There are three agencies that is being used for the intention of
distribution that is independent, manciple and multiple (Brown and et. al., 2013). By the
help of this method, sales are attained because these agents have every information of
their products or services. Hence, it is very easy for travellers to understand the act of
contracting between two parties. This also give important data to the decision-makers so
that they can select tour and travel packages immediately.
 Direct selling distribution method: This method provides direct selling of holiday
packages to the personnel department of the enterprise (Brent Ritchie and et. al., 2011).
This is based on both direct to consumers and enquiry in which customers enquiry direct
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sales are transferred to travellers so that important data can be given to them. This also
involves carrying out sales of holiday packages by contacting with them.
Here corporation should use website distribution methods in order to sell their holiday
packages because it takes less amount of time. The designing of brochure consumes very amount
of money and aids in saving revenue for corporation. Also, less physical work is done because all
works are performed on system and this also do not need travelling here and there to spread
information about holiday packages. Also, direct selling method can be used by enterprise in
order to sell holiday packages for local people.
TASK 4
4.1 Strategic decisions made by different types of tour operator
Strategic decisions are taken by the tour operator so that they can manage the business of
travel and tourism. Several important strategic decisions made by them that include offering of
revised destinations, developing mass packages so that large number of users gets attracted, also
designing small packages for small number of visitors, etc. (Snyder and Deaux, 2012). Another
strategic decisions is selecting the target market as tour operators have to make choices between
mass market and niche segment. Mass market is selected by those tour operators who have the
goal to draw in large number travellers at the same location. These tours are designed having
intention to enjoy leisure hours and involves those locations where water, hills, sand dunes, etc.
are available (Sigala, 2014). For instant, large number of tourists gets attracted towards Goa for
the purpose of visiting. One who chosen niche market having the intention to attract those
travellers who are most taking more interest in cultural places like forts. Other decisions is taken
to make an investment in the area of technology (Bonilla Priego and et. al., 2011). In some
captious condition, tour operators have to use appropriate strategies, for example when there is a
tour of desert area and there is scarcity of water, then at those places organisation have to take
their own water facilities so that they can provide water for needy users. Also, in those places
where crime are occurring frequently then at those areas corporate have to provide more security
so that safety is maintained for all visitors .
4.2 Compare decisions that could be taken by a selected tour operator
Tour operators of 3-Star WestCord Art hotel requires to choose some tactical decisions
when they are dealing with different situations. Some of those are described below:
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 No fee for kids: Corporation should make new policies in which no price can be taken
for children that are under eighteen.
 Additional value offering: Organisation should also offer additional services such as
providing free insurance for those tourists that have paid their fee before one or two
months.
 Allowing credit card: They should make such policies where payment can be done by
using credit cards.
 Lower pricing: Enterprise should offer low price holiday packages in relation to their
competitors in order to draw the attention of large number of tourists (Baddeley and
Font, 2011). This will increase the turnover as well as popularity of company drastically.
 Tour of natural places: Organisation should design a tour having a natural feel and
taking their users at some natural places like mountains, hilly areas, seas, lake, etc. are
present because people want to travel or live at natural places that is free of pollution and
noise. So, that they feel relax. For example, they can choose Goa, Kerala, Switzerland,
etc. for the purpose of tour.
CONCLUSION
To conclude tour operation management is above the management of activities related to
tour and travel. To make arrangement of tourism related tasks, Organisation such as 3-Star
WestCord Art hotel uses several methods for example making brochures physically as well as on
the website that is called as e-brochure. This takes less amount of revenue and also saves the
important time. The effects of current and recent trends has been analysed and in accordance to
that development in the industries of tour operators are done. The time needed and the various
stages involved in designing holiday packages are described like research, supplier negotiation,
marketing, role of admins, etc. The different contraction method are also explained like fixed
contract, sale only contract, rack rate, ad- hoc rate, etc. The tactical decisions taken by tour
operators are also discussed like taking no fee from children, using credit cards for payment,
lower prices are offered, selection of natural location for tour , etc.
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