A Comprehensive Report on Tour Operation Management and Trailfinders

This report delves into the intricacies of tour operation management, using Trailfinders as a case study. It examines the impact of current trends and developments on the tour operation sector, analyzing the roles of inbound, outbound, and domestic tour operators. The report assesses the stages and timescales involved in developing holidays, including market research, planning, and negotiation, while also exploring various contracting methods for holiday components. A key aspect involves calculating the selling price of a holiday package, considering factors like room costs, coach rentals, and guide fees, alongside profit margins. Furthermore, the report evaluates strategic and tactical decisions made by tour operators, comparing different approaches and distribution methods, and also explores alternatives to traditional brochures. The report provides a comprehensive overview of the tour operation process, from initial planning to final pricing, and also highlights the importance of adapting to changing customer preferences and market dynamics.

Tour Operation
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Effect of recent and current trends along with development on tour operation sector.....3
TASK 2............................................................................................................................................4
2.1 Assessing the stages and timescale involved in developing holidays..............................4
2.2 Various methods for contracting for several components of the holiday and tour operator.6
2.3 Calculating selling price of holiday from given data.......................................................6
TASK 3............................................................................................................................................8
3.1 Evaluating planning decisions taken for design of selected brochure..............................8
3.2 alternatives to traditional brochures for different tour operators .....................................9
3.3 Suitable methods of distribution used to sell a holiday for different types of tour operator
..............................................................................................................................................10
TASK 4 .........................................................................................................................................11
4.1 Evaluation of strategic decisions made by different types of tour operator..................11
4.2 Comparison of tactical decision taken by tour operator we in different situations........12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Tourist is one of the major source which help in supporting economy of the nation so it is
best suitable and gain correct advantages for getting promotion. In this context, different tour
operator companies provide the best services for potential users so that it will assist in promoting
better work. Tour operators are those individuals who have specialised in creating holiday
packages in a proper manner. This report is based on Trail-finders which is a famous tour
operator service provider company and situated in the United Kingdom (Hoyos, Morales and
Akhavan-Tabatabaei, 2015). There are different types of tour operators which can determine
inbound, outbound and domestic in character. In the nation, there are various developments and
current trends for determining travel and tourism sector which required for identified by tour
operators in appropriate manner. There are various stages which are involved in analysing and
creating holiday package that will be evaluated in this report for calculating effective selling
price. It is also necessary for giving accurate information by using suitable sources and tour
operators want to frame such strategical and tactical opinions.
TASK 1
1.1 Effect of recent and current trends along with development on tour operation sector
There are large number of tour operator companies which help in determining a person
such as leisure journey, business tour, etc. These can be stated about different nature of an
individual who mainly help in maintaining suitable economy rate of the country. All these
tourists consider for important section which assist business administration for increase and
acquiring development in correct manner. There are different types of tour operators which get
evaluated that are as under:
 Inbound tour operator
 Outbound tour operator
 Domestic tour operator
All the people giving best and quality based services to their customers by designing
attractive collection. There are various types of current and recent trends which get evaluated and
get impact on tour operation sector. Also, it is important for tour operator company to determine
all these respond and then given them quality based services to potential users. Different changes

that have to be understood by Trail-finders whom tour operator and providing effective and
good service delivery that are as follows: Changing tendency in holidays- In this context, it is essential for tour operator to realise
the major alteration nature of traveller. For effective development and growth in time, the
nature of holidays will change according to the time modification which require to
understand by company managers appropriately so they are able for delivering best
quality services. Most of the travellers need all inclusive holidays where they have able
for visiting at more than one place so the money get recover properly in adequate time
period. Environment awareness- It is another thing which have to be taken by tour operator
within effective environment includes external or internal. Business require for
determining about external environmental factor properly so customers are external
stakeholders of the firm. For changing in technology and various social cultural factors,
most of the customers need alteration. The current and recent trend need to analyse
effectively by tour operators so they will became able for delivering and considering
quality based services to all users of an organisation.
 Competition- The other major things which direct effects on tourism sector is
competition. For increasing the competition in market place, company identify tough
competitor for determining effective and better technology for deliver services.
Therefore, Trail-finders need to determine all these rivals which existing in the market
place and also deliver quality based services at correct price level. It can consider them
for maintaining positive factors towards business operations for their customers.
The current and recent trends and development made positive impact on tour operation
management sector if they get analysing such factors in an effective manner. If these alteration
will not get estimation in advance, so the chance of failure continuously rising and Trail-finders
cannot able for sustaining at market for long time period.

TASK 2
2.1 Assessing the stages and timescale involved in developing holidays
It is necessary for tour operator for determining and organising appropriate research of
market by this they will become able for creating correct package for their customers. There are
large number of phase and steps which may includes in such factors that have to be understand
by tour operator when they dealing with other customers. In this context, Trail-finders need to
make education tour for students who start their trip from London to Brussels and Brugge,
Belgium (Kerzner, 2013). There are approximately 42 students group for stay around 5 nights
during summer vacation in July 2019. For appropriate and suitable development in this context,
tour operator company require for performing correct and best appropriate things that are
describing as under:

 Market research - It is the first step for developing holidays for determining large
market area. Market research is necessary for both; tour operator and their desired
customers. Individual require for determining organisation who have good market
condition and present some parcels. Tour operation need to conduct research for certain
market place where customers desire to visit at specific location. So, this will help in
providing the best quality services at correct rate or price. Scheduling and planning - It is the second step where planning and scheduling of dates
and also set best suitable time period (Khairat and Maher, 2017). The task is important
for tour operator because it will assist in giving clear time frame for their visitors where
they can easily go to the different destinations. It can able for preserving accurate time
and also try to find out such places where customers desire to visit. Prediction - The major thing which need to be consider by tour operator is to be
estimated and foreseen some unneeded aspects in early. Such kind of circumstances get
presented at different location by which they can recover is important. In this context,
tour operator require to explain all essential things in advance to their travellers and
estimate such things which might be change in upcoming future that is not suitable and
proper in quality for their improvement.
 Negotiation - If price of package is higher than tour operator require to organise suitable
rate for large number of people holiday package. Also if hotel charge high rate then tour
operator can conduct negotiation for all goods and services which lead towards delivery
action.
Trail-finders require to conduct or organise all such things at the time when they provide services
to their students. In addition to this, the time scale of 5 day package has been prepared in
effective way.
2.2 Various methods for contracting for several components of the holiday and tour operator
Each tourist has different willing for their tourism that have better understanding by tour
operators (Lenahan, 2011). There are different kinds of tour operators which get evaluated and
also help in understand their travellers demand and needs, by this correct and appropriate
services has been rendered. Generally users provides contract to the tour operators for deliver
quality based services to them.

The college group of students desire and willing to visit at certain place of Europe where
they contract with Trail-finders who are inbound tour operator. Also they will giving services in
the large nation. Thus, all these locations are also part of Europe that can easily design by an
organisation.
A groups provide contract which is based on quality services for deliver by tour operator
to their customers. This contract given to Trail-finders by these groups in which firm commit to
their visitors so they will profit improved and effective quality services. The main purpose of this
tour is picnic and spend some time with their friends (Luis, Dolinskaya and Smilowitz, 2012).
The duration of time for all such locations is around 5 nights excludes travelling time. There are
several kinds of contract that can evaluated for understand by supplier and services individual
which are described as under: Fixed Contracts - It is that term which stated most of the time company gain same type
of contract for tours. So these are based on fixed assessment and get opportunity for
changes in less time period. Thus, many time users fixed their service provider who
design each travel packages for the visitors. Trail-finders required for making and
creating quality based services for these group so they take contract on daily basis.
 Sale Only Contract - Such providers basically change high rate and their cost of volume
is also higher in quality. Also sale only contract is that term which begin with ultimate
timing and start selling of quality goods and services to their customers. Trail-finders
does not use sale only contract provider so they desire to gain maximum profit and
deliver best quality services at correct price which mainly attracts large number of
visitors in market place.
2.3 Calculating selling price of holiday from given data
Different tour operator has various price for packages that are basically provided by
them. This is necessary for firm is to determine price of packages appropriately and given best
price to their potential users. Selling rate of packages get determined for analysing per cost and
total expenditure on such consents. It is necessary for considering selling price of holiday
package by trail-finders (Martinez, Stapleton and Van Wassenhove, 2011). The proper prediction
for this respond is Grand Casselbergh in Bruges of 96 euros per individual for twin room (2
adults sharing) with breakfast. The rate of 48 seater luxury coach is £11200 and which includes
two drivers, a tour manager, fuel and ferry taxes. Cost of local tour guide is £945. in addition to

this, company manager add marking up with 33% with transaction price of £1.12 per £1.
According to this information, correct calculation of selling price require for get determine for
effective creation of package and deliver best rate to their potential customers.
value of rooms per person 85.71
cost of luxury coach per seat 233.33
Allocation of local guide cost per person 472.5
Total cost of tour before margin 791.54761905
Add: Profit margin
261.19238095
24
Selling price per person of tour after
margin 1052.74
It is the selling price of per individual of tour which provided by an organisation to their
customers. In this context, firm can given certain offers to their visitors. This change them for
gaining correct offers and especial services to their clients. Addition to this, various strategies
which are related to discount for supporting business to gain attention of large number of
customers towards attractive products and services. In the pricing concepts, various factors or
cost has been considered by organisation that are stated as follows: Fixed and variable cost - There are two types of cost in which one is fixed cost that can
not change and occurs in each project before its starting. Along with this, another one is
variable cost which get change and modify as per the time. Trail-finders need to
determine such cost in effective manner so they can lead for delivering quality based
services to all users of an organisation (Moutinho, 2011). This is essential for evaluating
variable cost due to change in environment of business operation and its functions.
 Profit margin - In addition to this, calculation of cost management determine profit
margin in appropriate manner. This is necessary for understanding profit margin of each
project properly which mainly included in selling price. The management help in gaining
suitable profit which design packages so that they are able for maintaining correct level
of profit and does not suffer any type of losses.
Such things must be involved in management of company for designing their holiday packages.
This will assist in acquiring correct results and also help in increasing customers base effectively.

TASK 3
3.1 Evaluating planning decisions taken for design of selected brochure
All organisation have their own marketing department team which are doing effective
work and its main purpose for creating and developing awareness regarding firm products and
services among customers. There are different types of techniques and methods that can be
applied by company marketing team for getting suitable information and data. Kuoni is one of
the leading travel service provider who mainly desire to create awareness about their luxury
holiday package to all users (Barratt, Choi and Li, 2011). They can determine brochure as best
method for giving data and information which relates to such factors.
Brochure of an organisation require appropriate planning decision that have to consider
by association on the basis of these respond: Planning issue - Firstly corporation have to consider major problems which is linked
with firm effectively. This issue also concern with style, format and content. It is clearly
determine that most of issues for firm are related with brochure is to provide them correct
information related to luxury package of holiday to their customers. It is necessary for
firm is to provided relative content with this affection so it is better and appropriate gain
for getting driven. In addition to this, such factors, quality and size are play an important
role in effective manner. Company manager need to determine the brochure size so this is
correct for adding into it. The luxury holiday package full information determine the
important tasks. It is also necessary for organisation is to planning before implementing
planning process in appropriate manner. Target market - It is essential for company is to analyse the target market as well as
customers for gaining attention of them. For identifying the major issues and problems, it
is necessary for delivery these data or information for targetting market. Luxury holiday
packages required to provides high expendable income group people so that Kuoni
became popular among these person and gain ultimate buyers base. The marketing team
determine the market place which they desire to target for particular purpose. In
brochure, company have detailed analysis of budgets or price of packages (Cook, Hsu
and Marqua, 2014). This will assist in attracting huge number of consumers towards
pricing strategies. Also target large number of customers for purchasing desired products

and services at the market place. This is need for the firm is to target the whole market
place by which they easily target more customers as well as market area.
 Attracting brief - Content should be correct and relevant in nature and also this require to
be specific in nature. Attractive brief along with specified area to visit with attractive
colours and pictures to make it easier and interesting. Most of the people start dreaming
to visit at such locations and places with their friends and family members. They require
for attracting more customers towards effective goods and services and gaining attention
of them.
All such are necessary which mainly considered by Kuoni in their working for gaining
and adopting best outcome for preparing effective brochure so that large number of users start
attracting towards products and services of company for gaining best results. So tour operator
firm can use latest techniques and methods for achieving desired goals and targets to determine
accurate result or outcome.
3.2 alternatives to traditional brochures for different tour operators
Brochure is a source which helps in delivering adequate and appropriable information in
target market. Traditional brochure are in paper format which are very costly and do not provide
adequate data in relation to business activities (Dietz, 2011). So it is very important for tour
operators to analyse brochures properly and select a better one out of the lot which helps in
transferring adequate message abut their business. With changing era and inclusion of
digitalisations in tourism industry they need to adopt certain business practices for getting and
providing effective information.
Video – it is a part of modern brochure technique they can upload videos on social
networking sites like you tube and vidmate from where people can access. It helps both
outbound and inbound operators for promoting their business. Creating video and publishing
them on YouTube are regarded as costly affairs and must be planned properly by travel agents
and managers.
Internet – it is a cheap source of digital promotions which helps them to to spread their
business to an wider area. Regarded as a best source of marketing and promoting their business
because most of the people in world spend most of their tine on internet. They can flourish their
business by applying techniques like making attractive and creative image and adequate
information . There are many online business on tours and travel running on internet through

web portals (Evans, Stonehouse and Campbell, 2012). Features like online booking as well as
providing cashback and discount has minimise use of traditional booking through booking
counters.
These are major approaches in promoting business which can be adopted by Kuoni in
their business for transferring of information in relation to holidays packages. These activities
help them to reach out to people in relatively quicker time .
3.3 Suitable methods of distribution used to sell a holiday for different types of tour operator
It is an important for an organisation to adopt best method for distribution of brochure to
their target customers . It helps them to achieve better results and gain popularity and prosperity
in market place. They must make sure to use appropriate methods for transferring of message to
target customers. Kuoni use various distribution methods effectively for for selling their holiday
packages to outbound and inbound customers which are pointed as below
 Direct selling – this means when organisation start distributing their brochure direct to
customers or through and social media sites like mails, texts, social networking sites.
Direct selling is an effective medium as it helps in making a goodwill and generate faith
among their customers (Grant, Wong and Trautrims, 2017).
 Call centres – it is another important way of passing informations . In doing so Kuoni
can provide contracts to some legal call centres agency for promotion of their packages.
They are efficient in providing proper information about tour and packages and assist
them in resolving their problems. They also focus on providing information on discounts,
cashback and all other factors and information related to tours and travel.
 Internet – Emails, social networking sites are best source of making and spreading
brochures on internet. They have a better scope of transparency in providing information
about their company and tour and travel plans. It also gives information about rating of
the organisation which helps customer to analyse performances of that travel agency.
For making these activities more effective in market they should select a specific market where
they can implement these factor. They should make sure they have better planning in
promotional activities and avoid unnecessary costing on promotional activities. A important
factor which they must notice is that they must have a proper monitoring team for promotional
planning team as well as have a detailed information of customer activities like their
behaviours , liking and interested destinations.

TASK 4
4.1 Evaluation of strategic decisions made by different types of tour operator
Strategies plays a very important role in management of business it is a responsibility of
top level management of companies to make strategies in every context of an organisation.
Strategies must be made for both long time and short time .For making long term strategies
judgements by senior manages plays a key role. Tours and travel companies are categorised into
different types like some are inbound some are outbound and some deal in both so as their
strategies. So an appropriate Stargate decisions is needed for flourishing in market. For getting
long term success different categories of operators have different planning practices like Inbound tour operators- these type of travel operators a deal in inbound tourism
practices as they prefer medium term planning instead of long term planning as are
mostly small scale business and fear change in government policies will hamper their
marketing policies. Their demand forecasting is easier as they only deal in small
geographical area which are very easy to cover (Guo and He, 2012). Apart from this they
must frame a comparable pricing strategy which is suitable for all kind of travellers. They
have a problem in dealing with people of same country as they want more discounts.
 Outbound tour operator – they are operators who provide services to residents of other
countries. They are major companies who are responsible for growth in economic
conditions of a country. More the number of visitors visit the country it will help in
enhancing country's economy. Traffic of services are higher than inbound travel
operators. As they are working in higher level they must have a better management
otherwise it will become very difficult for them to survive in competitive market. They
must have a good demand forecasting in changing environment like they must analyse
time of peak season and plan accordingly to fetch at that time, then it become more
important in making suitable decisions for better positioning of their product and
services. Judgement plays a crucial role in this environment , a wrong strategy or as
decision can hamper whole prospects of developing and building a business.
Every tour operator try to make innovative planning which help them to distinguish from other
competitors in their business.