Tour Operations Management Report

This report examines the various aspects of tour operations management, focusing on Trail Finders Ltd., a UK-based travel company. It analyzes the impact of current trends, the stages involved in developing holiday packages, different contracting methods, and selling strategies. The report also discusses strategic and tactical decisions made by different types of tour operators, emphasizing the effectiveness of e-brochures in modern marketing.

Tour Operations Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Effects of current and recent trends on tour operators (Leaflet)......................................1
TASK 2............................................................................................................................................3
2.1 Stages and timescales involved in developing holidays...................................................3
2.2 Different methods of contracting various elements and various types of tour operator. 4
2.3 Selling price of a holiday package....................................................................................5
TASK 3............................................................................................................................................6
3.1 Planning decisions taken for the design of selected brochure..........................................6
3.2 Alternatives to traditional brochures used by tour operators............................................8
3.3 Different methods used to sell a holiday package and recommend method....................8
TASK 4............................................................................................................................................9
4.1 Strategic decisions by different types of operators...........................................................9
4.2 Compare tactical decisions that could be selected in various situations........................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Tour Operation business is the most vital component of tourism industry. In the
distribution channel tour operators are partners for inbound, outbound and catering business.
This business is integrated with other tourism businesses because it is a connecting point
between service providers and tourists. It consequently generates huge amount of income sources
for the host country which in turn contributes to raise in their economy. Tourism business offers
broad range of ancillary services from professional point of view (Akroush and et.al., 2016).
Tour operators can be considered as promoters, agents and image builders of destinations. In this
report, there is description of tour operators of Trail Finders, stages involved in creating holidays
and strategies for decision making of tour operators. It is the UK's most trusted brand and
independently owned travel company. They offer exclusive holiday packages and highest
standard of customer service. Its corporate services include international ticketing, visa
assistance, travel assurance etc.
TASK 1
1.1 Effects of current and recent trends on tour operators (Leaflet)
Tourism is expected to
maintain its growth rate at 4%
estimated by World Trade
Organisation. Awareness of
organisation like of Thomas
Cook is there due to
technological advancements
(Buckley, 2014). Consumers
which can't be physically
connected by tour operators
can easily contact them due to
electronic devices. They can
be categorised as:
Outbound operators: These
tour operators travel from
Domestic operators: These
tour operators visit
destinations within their own
country.
Integration has affected
tour operators to a large extent.
UK tour operator’s strategies
are examined amongst travel
retailers, airlines and tour
operators which influence
contracting methods and
pricing of resorts. On the other
hand, cruise ships bring more
money and ensures sustainable
development of tourism
Mass market to
Customization: Various key
components have been realised
by present age tourism that are
having chances of earning
income and like to spend more
and freely. Thus, newly
married couples are among one
of them. Instead of going to
mass market, Trail finders Ltd.
should focus on particular
customers' need in huge
homogeneous market.
Scale and Segment: Number
of passengers taken by tour
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generating country to another
country.
Inbound operators: These are
international visitors who are
residents of the country and
help to gain country's income
(Mwesiumo and Halpern,
2018).
destination (Carmen and
Alexandrina, 2014). Economic
analysis of tourists taxes are
aimed largely on hotel
occupancy tax and daily car
rental tax that is levied by
many UK localities.
It contributes more than 21
million dollars to tourism
industry.
Changing demographic
pattern: Special attention is
made to newly married couple
which is a great turn made by
tour operators. According to
the segment types of services
and kinds of destinations
needed by newly married
couples differ and therefore
they need to understand their
distinctive requirements. This
results in better catering to this
operator can be categorised
into type of tour like family
travelling together or single
couple (Dickinson and et.al.,
2014). Newly married couple
is a kind of niche segment to
which tour operator has to
provide selected services that
must satisfy them.
Environmental awareness:
Environment awareness is
highly considered by all types
of operators as it attracts more
consumers. They like to carry
out those activities which don't
pollute environment and are
eco-friendly.
Impact of E-Commerce: For
booking in Trail Finders Ltd.
And many other companies’
young people prefer using E-
commerce. Presence of
technology help tour operators
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segment. can help them to develop
reputation among segments.
Role of ABTA, AITO and
FTO: Trade Bodies like AITO
help business fast by providing
fellowship, financial
reliability, innovative and cost-
effective marketing, affiliated
legal advice service and many
much more help (dos Santos,
Méxas and Meiriño, 2017).
ABTA and FTA help in
providing information to
members in making complaints
of tour operators and travel
agents.
TASK 2
2.1 Stages and timescales involved in developing holidays
Stages and timescale involved for holiday package of Brussels is described in following ways:
1. Market Research: Main aim of developing holidays is to analyse and know the core
components associated with destination and tourism industry. Tour operators make research on
areas of their interest and specialization before entering into this field (Jovicic, 2016). It is
necessary to understand social, political, economic and environmental factors for tour package.
2 Forecasting: Forecasting leads to change in dynamics and decisions of tourism industry. It is
influenced by tourism preferences and patterns.
3. Tour itinerary development: In this stage, entire summary of tour is prepared for Brussels
which involves initial point and place of destination where the students will stay. Further, route
and duration are decided through which travelling will be done to Brussels. Complete
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accommodation facilities, transportation and location get confirmed. Recommendation and
suggestions of students are taken which leads to development of entire tour package.
4. Negotiation with Suppliers: In this stage, all types of arrangements are done with suppliers
and vendors which involves different types of services relevant to tour. For example: supply of
various products and goods required at UK would be listed and related terms and conditions are
properly discussed among them. This is done so that there are no chances of further confusion
and misunderstanding while travelling.
5. Costing of holiday packages: Cost is perfectly determined and calculated in the contract that
involves cost of all facilities given by tour operators in the form of expenses, cost of travel fare,
meal etc. This pricing is made for the duration of 6 days (Le, Pearce and Smith, 2018). For the
pricing of the tour cost pricing strategy is applied. Costing can be variable or fixed depending
upon the expenditure. For example: costing done with tour guide is certain.
6. Brochure production: At this stage, entire brochure of holiday package is prepared that
involves mandatory information which has to be properly communicated to the students. This
includes transportation amenities given at different ventures, luggage, mesmerizing locations of
Brussels etc. This could be considered as pre-determination and planning of designing.
7. Administrative Staff: Specific duties are assigned for smooth and effective running of
organisation. Different roles and responsibilities of staff, members are decided in advance so that
no risks are encountered in the near future (Su and et.al., 2014). This staff plays vital role for
security of group.
8. Timescale: This stage consumes maximum time in which entire planning process is discussed.
(Ling and et.al., 2015). In this, feedbacks are discussed so that there are further chances of any
hurdles and loopholes. Further negotiation process is time consuming process capturing 40% of
the total time for the development. Time period taken could be is 1 year.
On the basis of above discussed stages and timescale, a full-fledged holiday tour is
planned in which every student's views and discussion are involved and packages are properly
monitored so that better decisions are taken to make tour more effective and attractive.
Stages Months Calendar Month
1. Market Research 2 months January-February
2. Forecasting 1 month March
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3. Tour itinerary
development
2 months April-May
4. Negotiation with
Suppliers
3 months June-August
5. Costing of holiday
packages
2 months September-October
6. Brochure production 1 month November
7. Administrative Staff 1 month December
2.2 Different methods of contracting various elements and various types of tour operator
There are different types of tour operators like Specialist, Mass Market Tour, Outbound,
Inbound, Domestic, Retail, direct and Wholesale tour operator. Mass market operator afford to
sell services to customers at low price (Mitsche and Strielkowski, 2016). Specialist tour operator
offer services to the niche market. They handle tourists depending upon the geographical area
while outbound provide multinational tourism. Outbound operators sell products to those who
wish to travel to another country. Inbound offer trips who visit their own country. They provide
local assistance to visitors and are known as receptive tour operators. Domestic tour operator sell
packages directly to consumers without interruption of travel agent. They try to repeat trips and
are also known as resident operators. Retail do their job for commission while wholesalers
negotiate with suppliers and create packages. They sell their packages through distribution
channels. There are different methods of contracting holiday: Fixed contract: In this kind of contract, tour operators charge amount fixed price on
whole package with different benefits. Therefore, they regulate functions and operations
to set price as per mark up cost. This method is useful because all services has been set at
fixed price so that reliability can be measure easily. This method is generally adopted by
mass market tour operators because they are targetting large number of audience.
 Sale of contract: In this kind of method, tour operator can regulate their functions as per
customer requirements and demand. Therefore, they can set their price accordingly.
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Generally retail tour operators using this method to increase sustainability with charging
price as per customer demand and requirements.
1. Transportation: According to the contract, local transport service of Brussels should be
planned effectively. Sightseeing and different other locations are also signed in the agreement by
the parties during 6 days and 5 nights. Fixed payment of transporter related to fuel and driver,
parking and toll charges are prior discussed (Hansen and Mossberg, 2017). Charges would be
divided among students afterwards.
2. Accommodation Facilities: In Brussels, variable contracts are made with students which is
most suitable for accommodation purpose. They will travel at different places during their
journey and location will vary according to the requirements of contract. Thus, there would be
basic need of separate contracts with particular hotels that will plan for travelling.
3. Meals: Fixed contract won’t be helpful for students as supply of food will vary depending
upon the location. Thus, contract is needed with vendors for supply of food at right time (Le-
Klaehn and Hall, 2015). This would definitely provide an option to students to taste preferences
of Brussels, thereby fulfil their needs. Through contracting method proper arrangements of meal
and accommodation could be done at various locations.
4. Tourist Guide: While travelling, guide plays an important role. Tour operator has fixed
contract with guides because they know all locations properly and while travelling they show
correct directions and places that are included in holiday package. They help in exploring the
things in perfect manner and will travel along students (Cetin and Yarcan, 2017). Payments are
fixed for them and are included in holiday package. All possible destinations are pre-decided
which are described after approaching the places. Extra locations are not explored by them as all
required place would be decided according to the brochure and final payment is made
accordingly. They use pricing strategies like seasonal pricing, mark down pricing strategy, last
minute pricing etc.
2.3 Selling price of a holiday package
S. No. Details of Holiday
Packages
Individual's selling
price
Total amount
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1 Rooms Charges £79.12*42 £3,323.04
2 Luxury Coach charges £7,350.00 £7,350.00
3 Visitor's attraction
Charges
£44.72*42 £1,878.24
4 Tour Guide Charge £877.20 £877.20
5 Cost of package 13428.48
6 Administrative and
selling profit @ 25%
3357.12
7 Total amount of selling 16785.6
This selling price includes charges of luxury coach, room, visitor's attraction and tour
guide. Finally, administrative and selling profit of 25% is also added on selling price of holiday
package. There are various other factors which impact cost like transportation and airport
charges. Additional margin would be taken by the tour operator for the services offered by him.
TASK 3
3.1 Planning decisions taken for the design of selected brochure
Brochures are source of distribution for holiday packages with both offline and online
methods. Planning decision of brochure would be made for Trail finders Ltd. Online methods
would provide some advantages and lower out the cost. Developing a proper brochure would
require extensive planning, organising and implementation of brochures. Following steps have to
be considered for planning a brochure for Trail finders Ltd.
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1. Recognition of planning issue: Firstly, consideration of issue regarding the needs of planning
have to be made. For Trail Finders, different parameters like target-segment, objects and
timescale have to be decided for in-depth analysis and proper planning.
2. Including right photos: Photos are important part of brochures that display image of any
company in the minds of visitors. They draw readers in and help them to understand important
locations of the destination. Colourful photos always invite readers (Szopiński, 2017).
Companies must think for that things which readers want to see like golfing, shopping,
sunbathing on beach and fishing on lake.
3. Using a colour scheme: Colours make brochures more attractive and vibrant. Various types of
bright colours put psychological effect on visitors and match with the feel of brochure. Trail
Finders could promote itself through fine brochures.
4. Deciding the format of brochure: Brochure should be descriptive and all contents should
describe background of the company and attractive locations of country's respective locations.
Picture should be properly painted and places must be illustrated to readers so that they could
understand what they see. Format must match targeted market of company.
5. Copywriting: Copy write should be taken by Trail Finders so that 80% marketing
communications is done. Sales is made up through good writing. Customers should be
influenced and informed at right time and brand must be built in their minds for predetermined
action. This requires time and action. All legal formalities must be completed by the company at
this stage.
6. Designing: Designing of brochure drives its usability and pulls on customers it can cause
headaches and increase costs. Main objective lies in getting good designer from the outset.
7. Brochure Printing: Good and service oriented commercial oriented printing partner should be
involved in the business who can add value and manage issues. A great communicator who can
resolve problems and delivers quality product is preferable.
8. Target market and budget: Target market of Trail Finders would be niche or mass market
because it finds more opportunities in that segment.
8. Timescale and stages: Main priority after printing of brochure should be stages and timescale
that should be developed and followed properly.
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3.2 Alternatives to traditional brochures used by tour operators
In present scenario, alternative to traditional brochures would be online brochures
provided through social media like Facebook, Instagram by Trail Finders Ltd. Higher consumers
are attracted towards offerings of the company with more information and holiday packages
available online. Internet is the fastest and cheapest source of information that allows consumers
to know about its products and services. Consumers can hire tour operators of Trail Finders
online and put their choices and deal with them. Simultaneously, they can also see brochures
uploaded social sites like Facebook, Instagram etc. (Veretekhina and et.al., 2017). Tour operators
can adopt online brochures for information and share details of sales and holiday packages to
consumers. With the development of e-brochure, important changes are made on routine basis.
Like this, tourists are aware of these changes as internet has become the part of their daily life.
Companies can gain popularity through online brochure which is a globalization phenomenon.
Online media is important for the distribution and development of Trail Finders. It helps to reach
huge amount of visitors.
Another major benefit of online media is providing low cost packages and creating with
higher reach of tour operators. E-brochures doesn't contain any stationary expenditure or any
other expense as compared to traditional brochures. This would further decrease the marketing
expense on sales of holiday packages which would benefit complete segment of consumers.
Designing and photos can be added by special software which would not include any printing
charges. Alternative method for brochure design and distribution process for Tail Finders can be
taken as visual media method. In this, with the help of video, complete brochure is presented in
front of tourists in a better way as compared to online and traditional brochures. This method can
be used in present age in order to distribute them through internet via social sites like youtube,
Facebook (Lacej and Kalaj, 2015). Thus, these low cost information methods are very useful to
impart information young visitors and newly married couples who like to visit their favourite
destinations. These methods attract large amount of consumer base with lower efforts.
3.3 Different methods used to sell a holiday package and recommend method
Main methods of holiday packages are as follows:
1. Brochure distribution Method: This is the oldest selling holiday package method
adopted by Trail Finders. These are sold to huge amount of consumers with formal and
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informal of the holiday information in the form of catalogue (Farmaki, Georgiou and
Christou, 2017). Various tour packages highlight low cost for the travel packages in order
to attract visitors.
2. Website distribution method: With the help of internet tools like social media sites via
Facebook, Instagram holiday packages can be presented and distributed to consumers of
the tour operators. This is most effective method with increasing use of online media and
gives a very little cost for the tour operators (Mitsche and Strielkowski, 2016). Its
advantage is that it penetrates into deeper locations of the country where physical
distribution of brochures are not possible.
3. Agent Distribution Method: This method helps to achieve various objectives like sales
and agents know detailed information about packages so it becomes easy for them to
describe to tourists. But then, its expense is counted in the holiday package.
Recommendation
Among above three methods, website distribution method should be adopted by Trail
Finders because it is cost-effective and consumers trust online more and it saves time. Online
brochures provide perfect description of the packages and senior management team can directly
contact to visitors. Website distribution method provides more opportunities to consumers to
select tour packages according to their choices.
TASK 4
4.1 Strategic decisions by different types of operators
Strategic decisions are major consideration that choice of actions and influence with
major part of the enterprise. They are contributing directly for common goals and objectives. As
a result, long term implications in the selected business. There are different kinds of pricing
strategies adopted by different tour operators. It can be described below:
1. Discount Pricing Strategy: Tour operators can be considered as more cost-effective by
using fixed price contract. With low price contract, tour operators get chance to provide
discount pricing to their tourists. For example: Price offered by tour operators of Trail
Finders was based on discount Pricing Strategy. This pricing strategy has been adopted
by specialist tour operators which take interest within the particular geographical areas in
special kind of activity.
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2. Volume Pricing Strategy: This strategy allows discount for heavy packages (Le-Klaehn
and Hall, 2015). Special discounts are offered to consumers based on higher volumes in
competitive market. It encourages large orders instead of small ones. This type of pricing
strategy adopted by direct sell tour operators which is directly influence by passing the
travel agent. As a result, amount of commission also set by tour operators to accomplish
expectations from package.
3. Positioning: Positioning of products and services in the market could be considered as
strategic decision in which company could position itself into normal or medium range. It
can do branding and promote its image in the minds of customers. Trail Finders use this
strategy to position itself in market.
4.2 Compare tactical decisions that could be selected in various situations
Tactical decisions are the achievements of entire strategies made for accomplishment of
plans. These are medium term that support strategic decisions. Following are some tactical
decisions of various tour operators:
1. Tactics applied by Domestic Tour Operator:
Tour operator can use strategies like fluid pricing in which companies can push prices up
and down through tour operators to full capacity. In this way travel companies sell their packages
easily at discount rates (Ling and et.al., 2015). Domestic tour operators possess complete
knowledge of running prices of other competitive companies, therefore they, can easily convince
customers and sell their packages. In strategic decision aspect, organisation look outward to
accomplish their primary purposes that helps to attain overall goals and objectives. Beside this,
tactical intelligence looks primarily towards current situation which gives information to carry
policy initiatives. As a result, purpose can be accomplish that helps to attain all information with
significant advantages.
2. Tactics applied by Inbound Tour Operator
This tactic is commonly used by companies which make money by offering correct price
at best time. Those companies who expand its branches in other countries can hire inbound
operators and modify their pricing strategy. This is known as yield management. Strategic
decision helps to focus on future development program that helps to consider outcomes on the
basis of available choices, strategic alliance, etc. On the other hand, in tactical decision past
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strategic decisions led in the organisation with current state. As a result, tactical decisions enable
to implement task and initiatives to take advantages to develop current opportunities.
CONCLUSION
Finally, it is concluded that tour operation management has been described in tasks like
leaflet, timescales, different methods of contracting, decisions made for brochure and types of
tour operator of Trail Finders. There are various tactical decisions are taken by tour operators
shows that they know how to deal with consumers and e-brochure is the most effective way of
marketing. Through this report it can also be determined that e-brochures are effective way of
promoting Trail Finders. Trail Finders could promote itself through attractive brochures and
presenting useful holiday packages to its customers. Tour operators apply many strategic
decisions to make their packages cost-effective. Like this, tour management industry is widely
running at global scale.
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Online
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