Tour Operation Management: Planning, Contracting, and Distribution

This document discusses the effect of current trends on the tour operation industry, the stages and timescale involved in developing holidays, methods of contracting for different components of the holiday, calculating the selling price of a holiday, planning decisions for brochure design, and alternative distribution methods for tour operators.

TOUR
OPERATION
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Effect of current and recent trend and development on tour operation industry..................1
TASK 2 ...........................................................................................................................................2
2.1 Assess the stages and timescale involved in developing holidays........................................2
2.2 Different methods of contracting for different components of the holiday and tour operator
.....................................................................................................................................................4
2.3 Calculate the selling price of a holiday from given information..........................................5
TASK 3............................................................................................................................................6
3.1 Evaluate the planning decisions taken for the design of a selected brochure.......................6
3.2 Alternatives of a traditional brochure for various types of tour operators and recommend a
appropriate of their package of tour............................................................................................7
3.3 Methods of distribution use to sell holidays for various tour operator and recommand most
appropriate package of tour.........................................................................................................8
TASK 4............................................................................................................................................8
4.1 Decisions of strategies made by various types of tour operator............................................8
4.2 Tactical decisions taken by a selected tour operator in various situation.............................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
In recent era, industry that have a fastest growth which name is travel and tourism sector.
This sector has a wide role in growth of country's economy. This segment of generates higher
revenues and earnings for organisation as well as Govt (Wang, 2012). This report is focused on
Trail-finders and Kuoni are two tour operation companies. Trail-finders is offering their services
associated with vacation plans for clients in United States. In reply to manage all tasks and
operations, travel agent must collect all relevant info from adequate and reliable sources. Other
purpose of collecting information is formulation of strategies. Kuoni is a tourism company that is
operating various services like package services, airlines, cruise lines and hotels. It is a Swiss
company which is conducting its operations in Zurich. This assignment is focused on above
corporations.
TASK 1
1.1 Effect of current and recent trend and development on tour operation industry
Covered in Leaflet
TASK 2
2.1 Assess the stages and timescale involved in developing holidays
A tour operator collects data and information regarding customer tastes and preferences by
conducting market research which is helpful in recognising future potential clients of company.
This research make them specialised in their talents that is necessary while creation of holiday
packages. A research scheme consist more than one phase. As per recent trend Trail-finders has
to create a luxury vacation plan for its customers. To make this package successful, tour operator
has to conduct a market research so that agents could address actual need of consumers. This
luxurious package is an educational plan for students who are coming from China (Bladen and
et. al., 2012). Students who are going to start their trip from Lomdon and will end this tour on
Brussels and Brugge, Belgium. Number of students who are the clients of company are 45 and
they will approximately stay for five nights. For building an apposite package which would be
able in meeting needs of consumers, travel manager has to conduct a research for gaining
knowledge about choices and preferences of clients. Stages that are involved in research plan are
described as beneath:
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1. Market Research – Here, market research has been conducted to determine the market
status which results in profitability for company as well as its clients. It took 15-20 days
for completion of research where client's preferences and choices were studied. This
research helped in obtaining best tour company for reliable services.2. Planning & Scheduling – In this phase, analyses and organisation of dates plan was
conducted to help customers in organizing best time frame that results in good output for
customer and company as well. Setting time frames resulted in pre-plan scheduling. The
benefit of time frame was customer satisfaction as time management help customer in
saving of time and saved time was used by tourists to visit more places. This stage takes
approximately 23 to 30 days in result generation (Song, 2012).3. Forecasting: It is technique where predictions are made considering every aspects of
present and future activities of tourism industry occurring in the marketplace. Tour
operator forecasts all undesirable factors that adversely affects holiday packages such as
laws and rules, environmental issues, dynamic human behaviour, etc. A holiday package
must practice forecasting to attain benefits from that clients. This step reaches at outcome
in 7 to 10 days.
4. Negotiation: In this technique, customer is provided with rights to negotiate for a high
price package with the help of tour operator. This phase requires a time frame of 5 days.
For example, a hotel has very high prices for its services, therefore tour operator can
deliver negotiating price to their customer.
Trail-finders has to take all above factors into consideration as this whole process will further
point out need of students. This research will further helpful in recognising adequate time frame
by including all business and Govt. holidays.
2.2 Different methods of contracting for different components of the holiday and tour operator
Expectations from a tour plan depends upon nature of an individual and this behaviour of
person must be analysed by tour operators because this thing has a wide impact on success of a
plan. There are various tour operators who provides better quality services to their consumers. In
this case of lavish tour package, tourists are provided with a full and clear contract which
comprises all prices along with service details.
Students want that they have to visit some places in Europe and for this they have chosen
Trail-finders as their official tour operator. This firm is an inbound travel agent and are serving
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within country boundaries. All destinations that students want to see are located in European
Union so tour managers has to design plan by considering all legal and societal factors that are
associated with locations (De Florio, 2016).
Trail-finders get this contract because they are providing best quality services in travel
and tourism sector. Company promised their clients that consumers are to be provided with best
quality services in efficient manner. There are some kind of contracts that are operators offer to
their clients these are stated below:
 Fixed Contract: In this section changes can not happen on regular basis. It means when a
client select a particular company then consumer again and again chooses them as their
core service provider. More than one time is observed when a client made repetitive
purchase.
 Sale Only Contract: It means consumer makes different choices and changes their tour
operators while planning trip. This kind of contracts consist high rates which customers
have to pay. Trail-finders are not mainly deal in sale only contract.
There are various methods of contracting with travel agents deal. Explanation of these are as
below:
 Design-Bid-Build: It is a procedure that consist three stages that are to be begun with
designing of a project and goes to be ended by completion of project structure
development. This is a complete construction of package. Alternate Contracting Methods: This section comprises many other tool that were not
covered in last step. For example design-bid, construction management services.
◦ Construction Manager – This section includes those points which are helpful in
converting a manager into tour operator at several distinct levels. For instance
construction of manager as agent, manager-at-risk. In this section there are several
duties that must be performed by manageable personnel (Bititci, Cocca and Ates,
2016).
◦ Design Build Services: In this portion an individual works on a single contract with
owner of package.
◦ Guaranteed Maximum Price: This segment relates with manager-at-risk and also
sums up design-bid-services. In this point all package must be rated on or below
GMP.
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2.3 Calculate the selling price of a holiday from given information
As per case study 45 students from China want to visit some places of European Union.
In Burge, Grand Casslebergh is a hotel which wants to calculate price for trip that will be spent
there. To estimating profit it is very essential for company that they must consider all aspects that
are helpful in setting a feasible prices which must not be so high for clients on the other hand it
can not be too low so company could get some adequate earnings. Below is a calculation of
selling price in context of customers as well as company both (Schanzel and et. al., 2012).
cost 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 261.192380952
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Selling price per person of tour after margin 1052.74
This above table represents that there are 45 students who want to stay in hotel and two adult will
share a room and breakfast is included in above measured selling price. This price also includes
some factors like a 48 seater luxury coach with two drivers and one tour operators. This price
also comprises fuel, all road and ferry taxes. Cost of a domestic tour guide. Marked up price is
33% and overall cost with exchange rate of €1.12 per £1. cost of local tour guide is £945.
with context of above, there are some concepts that are elaborated as beneath:
 Fixed & Variable Cost: Value that does not fluctuates with number of manufactured
goods and services is called as fixed cost. Apart from this amount that varies according to
production is defined as variable cost.
 Profit Margin: It is a value that company adds in rate of product or service other than
cost. Margin profit decides growth and success of travel plan (Mok, Sparks and
Kadampully, 2013).
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TASK 3
3.1 Evaluate the planning decisions taken for the design of a selected brochure
Descriptions of stages that are included in developing a brochure are elaborated further: Planning Issue: Operator have to design an effective brochure considering factors such
as style, format and content to be published. Main issue in brochure designing is
relevancy of information for luxury tour packages. Company can achieve higher interest
and returns by providing all essential information that can help customer to decide
whether to opt a service or not. Along with relevancy of information there comes size and
quality, that also helps in designing brochures. It must be design in such a way where
modifications can be made easily. Marketing managers select proper size of content i.e.
content must not lengthy where customer can loose interest, also it must not be more
precise where customer is unable to understand. A standard length of information must be
followed along with quality in the content of a brochure. Target Market: Analysing issues in target market is not enough for survival. In fact,
identifying market needs is also important. Without identification process successful
brochure cannot be constructed as it will lack proper information. Brochure consist of
pricing of single as well as combo packages, to give customers a range of services to
choose and have effective decision making according to their comfort. This helps
managers to build multiple pricing strategies to stand out in the marketplace. Marketing
department must focus on their target audiences and keep a track of it (Kerzner, 2018).
 Attractive brief: Brochure must posses relevant information along with their service
period. Audio/video aid can be incorporated to attain attractiveness. Customers can be
provided with small clips of their destination. Attractive brief increases level of curiosity
among customers and they develop eagerness to explore destination. As to achieve
customer satisfaction by making their dream come true, company secure their client's
interest, which is the main objective of travel and tourism industry.
All of above are essential phases that Kuoni must taken into account for grabbing
competitive advantages and to opt or design a best featured brochure that is made for
attracting more and wide number of people (Rego and et. al., 2011).
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There are multiple distinctions that are stated as beneath:
Traditional Latest
In past only option to promote travel package
was printing a brochure in paper or in
newspaper. Print media was only available
option in earlier times.
Although, today's world is a place of
technologies and possibilities where moere
than one alternative can be chosen for creating
a brochure for example electronic media, social
media, visual brochure etc.
3.2 Alternatives of a traditional brochure for various types of tour operators and recommend a
appropriate of their package of tour
There are several options that are available in replacement of traditional brochure. These
are helpful in gaining attention of many people who could be converted into buyers of tour
packages. Elaboration of various techniques that are to be use in exchange of traditional brochure
are stated as beneath: Visual brochures: This section incudes some audio and video clips related to destination. E- brochures: Brochure on email Direct sell: face to face interaction with clients. Mobile applications: Apps on cellphones. Social media: Where more people are connected. Travel Agents and Retailer: Who are working their own.
 Websites: Are to be operated in internet.
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Illustration 2: Traditional Brochure Illustration 1: Latest Brochure

 Call Centres
these tools are helpful in reducing gap among distinct option of sources but here company opts of
out of all alternatives (Haukeland, 2011).
3.3 Methods of distribution use to sell holidays for various tour operator and recommand most
appropriate package of tour
There are some distribution channels which are stated as follows:
Agents hiring: Here selling are done by a single person who is having a skill of making
sell effectively along with customer satisfaction.
Direct sales: When company make one to one interaction and conducts meeting from
customers.
Telephone: In this section, selling to be happen via telephone.
Call centres: Kuoni establishes call centres who works for 24x7 to solve consumer
queries.
Internet: Make advertisement on websites and social media platform.
TASK 4
4.1 Decisions of strategies made by various types of tour operator
Below are a key aspect for making a decision by tour operators in Trail-finders are explained.
Forecasting of Demand: It is a foremost step that an operator takes for formulating a strategy
regarding developing a tour package. This step is done for making an estimate related to future
demands for a particular travel plan (Maylor, Blackmon and Huemann, 2016).
Market segmentation, product positioning and target: If demands are high then company
segments the market and identifies that who will be the potential buyers or whom having
purchasing power. This section also includes those people whom company are addressing fo their
services.
There are key decisions that are helpful in making an effective strategy by Kuoni. These are
described as follows:
Strategic Discount Pricing: It includes, tour manager providers some seasonal and occasional
discounts to customers and this aspect must be taken into consideration while preparing budget.
Building Strength of a Product: Here decisions are taken by enhancing service qualities and
develop this as a brand. This action helps in growth of corporation (Masterman, 2014).
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4.2 Tactical decisions taken by a selected tour operator in various situation
Critical factors that affects decision-making are described as below: Discounting: Trail-finders are inbound tour operators whereas Kuoni provides different
kind of services in comparison of Trail-finders.
 External Factors: By analysing and considering aspects of environments various
challenges could be removed. These aspects are political, legal, environmental,
technological etc.
 Specific promotion and frequently analysis of segment.
 Determination of packages on tactical pricing.
 Maintain of certainty for achieving operations day to day (Jallat and Shultz, 2011).
CONCLUSION
This report can be summarised as tour operators are experts of creating holiday packages.
There are three type of tour operators inbound, outbound and domestic. Building a tour package
is not a single step thing as it consist more than one phase. These stages was already been
explained in this project along with calculation of selling price. There are some tour operators
who are serving better quality services which attracts more number of customers and this action
inspires workers to work hard as this working style will further increase their lifestyle which is
also an indicator of economic growth. Nowadays multiple trends and developments are seen in
the travel and tourism sector which has to get understand by travel agents.
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