Tour Operations Management

TOUR OPERATIONS
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Effects of current and recent trends and developments on the tour operators industry.........3
TASK 2............................................................................................................................................4
2.1 Stages and time scales involved in creating holidays from London, UK to Paris, France....4
2.2 Evaluation of suitability of different methods of contracting................................................6
2.3 Calculation of selling price of a holiday from given information.........................................8
TASK 3............................................................................................................................................8
3.1 Evaluation of planning decision taken for the design of a selected brochure.......................8
3.2 Access the suitability of alternatives to a traditional brochure for different types of tour
operators......................................................................................................................................9
3.3 Evaluation the suitability of different methods of distribution used to sell a holiday for
different types of tour operator..................................................................................................11
TASK 4..........................................................................................................................................12
4.1 Evaluation of strategic decisions made by different types for tour operators.....................12
4.2 Compare the tactical decisions that could be taken for selected tour operator in different
situations....................................................................................................................................13
Conclusion.....................................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Tour operation management can be regarded as a most important process which helps in
arranging and offering various types of services in the form of complete tour packages. It is the
most effective way on the basis of which organizations can create healthy package holidays for
their clients (Dezdar, 2012). There are various tour operators which mainly look for better
advertisement of their various tour operations. Within this same concern, these operators take
charge from audience and provide them quality travelling services in an affordable price. The
present report is based on the 4 different case scenarios (Barrett, 2012). In thus, Thomas Cook is
taken into consideration for first task which is British Travel Company which is also listed
company and registered on London Stock Exchange. Company deals with various travel services
related to the scheduled passengers airlines, package holidays, booking of hotels, resorts etc. In
this concern, first task presents the current and recent trends and development on tour operator
industry.
Second task is based on the creation of a sightseeing tour for Chinese students from
London, UK to Paris, France. It gives appropriate description about the stages and timescales
involved in developing holidays and also to be able to calculate the selling price of a holiday
(Smith and Waterton, 2013) . In addition to this, third task is based on the scenario of working
with marketing department of the company and evaluation of the planning decisions for
developing a new brochure for adventure holidays. Further, the last task presents the strategic
decisions made by the different type of tour operators.
TASK 1
1.1 Effects of current and recent trends and developments on the tour operators industry
Thomas Cook is one of the leading travels and tourism agency based in London, UK and
serves various tourism services. Tour operation industry is one of the fastest growing and leading
industries. In order to maintain their competitive position it is becoming highly important for
Thomas Cook to scan their environment effectively so that better tour packages can be planned
for all their customers (Smith and Waterton, 2013). There are various recent trends and
developments take place within tourism sector which totally affects their business operations. In
this same concern, tourism industry is considered as one of the fastest growing industries which
also help in increasing economy and revenue of country (Cooper and et al., 2008). Due to this,
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there are several developments have been seen by the nation among which some of them are as
follows:
1. Technological development: Within any tour operator industry technological
advancement plays a most crucial role. By the way of adopting latest technologies,
Thomas cook can easily enhance their worldwide consumer base (Mehmetoglu and
Normann, 2013). It is regarded as a best platform for this company as they can attract
majority of target customers over the internet. With the help of this, customers nowadays
can easily book and cancel their tickets online (Damonte, 2013).
2. Increase in spending power: Majority of customers these days are shifting towards the
changing and current trends. The recent developments have affected the perception of
individuals. Their spending power gets increased day by day and the same is influenced
with the increase in post and designation (Mehmetoglu and Normann, 2013). It clearly
states that, due to the increasing level of income tour operator industries are able to
expand their business. With the same, Thomas Cook can attract huge base of customers
and generate more of the revenues with the increasing profitability as well. Further, in
this concern, it can be stated that due to the increasing spending power of customers
towards the tourism sector all tour operators can attain higher competitive advantage
(Gray, Matear, and Matheson, 2016).
3. Satisfaction of customers:
Tour operator industries such as Thomas cook is highly affected due to the recent trends
and developments. Due to the increasing needs and desires of customers they are
developing several tour packages for their customers and enhance their level of
satisfaction (Barker, 2014). It helps in increasing their consumer base ad various tour
packages for different destinations will give clients a new way to explore different venue.
In this concern, due to the increase level of customer satisfaction company can easily
promote organization products and services with the help of word of mouth.
TASK 2
2.1 Stages and time scales involved in creating holidays from London, UK to Paris, France
In order to create sightseeing tour for Chinese students from London, UK to Paris, France a
new tour plan will be developed (Krogerus, 2011). For the same, tour operator needs to expand
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their target market and offer varied range of products to all their customers. The tour plan
developed for this sightseeing is only of 5 days in the time period of summer vacations. This tour
takes place in summer vacations and start in August 2018 (Smith and Waterton, 2013). For
developing this plan of 15 students there are several stages which needs to be assessed by tour
operator so that proper planning can be done. Some of the most common stages are as follows:
Market research
However, the location has already been decided and for the tour plan but still it requires
appropriate market research for getting appropriate information about the tourism rules of UK
and France as well (Lin and et.al., 2012). At this time, it is highly essential to go through the
demand of tourists in these countries as well as competitors which offer various holiday
packages for these countries. All these packages are being compared by each other and best price
have been selected with the same. Further, it is also essential for tour operators to provide
appropriate detailing regarding most visiting and famous places in France and London,
transportation cost etc (Mancini, 2001). All these things should be considered at the time of
finalizing this package.
Planning and scheduling
After going through the proper market research for the sightseeing tour for Chinese students
proper planning should be done (Lumsdon, 2010) . At this stage, confirmation from all 15
students should be taken into consideration and they must have informed about proper
scheduling and activities for 5 days such as departure time and day, days for visiting different
places, place for stay and dinner etc.
Forecasting
This is regarded as a most important stage where forecasting of total cost will be analysed
(Jayawardena, 2013). It covered the total cost for Chinese students for their tour from London,
UK to Paris, France. All those students who can afford this costing can be a part of this trip.
Contracting
At this stage, final selection can be made after selecting all the tour strategies as well as
packages (Voxted, 2011). Here, tour operator will be contracted and some negotiation on the
prices of holiday packages will be done for London, UK to Paris, France. On the basis of all
details regarding rooms, availability of seats in flights, places to visit etc. final contract can be
made.
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Creation of brochure
The brochure will be created for London to Paris Summer Vacation which will include all
the details.
Departure from UK
Reaching to France timing of flights
Places to be visited (Sims, 2010).
Execution
The total amount for the whole tour package will be taken in advance from the students.
Along with this, the half of the price of holiday package will be given to the tour (Smith and
Waterton, 2013).
Activities in Days 1 2 3 4 5
Market research
Planning and scheduling
Forecasting
Contracting
Creation of brochure
Execution
2.2 Evaluation of suitability of different methods of contracting
For different types of tour operator there are various methods of contracting for different
components of the holidays (Peters, 2013). Among all these tour operators best selection can be
made for the tour package of Chinese students from London UK to Paris, France. There are four
types of tour operators in travel and tourism.
Factors Outbound Inbound Domestic Specialist
Operations area In this tour
operator sell their
packages with
different king of
In this tour
operator discuss
their plan with
other operators and
These operators
provide the best
packages to their
customers and for
They all are small
in numbers and
they fist listen the
whole scenario of
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combines. Further,
they also covered
intentional country
in these promotion
activities.
then make an
appropriate
tourism plan.
this they take a
feedback from
their home country
customers.
their customers
than make an
appropriate plan
for them.
Package operated Ad hoc and regular Ad hoc and regular regular Regular
Example of tour
operator
Great British
Outbound tour
operator sells the
tour packages to
people who want
to go London and
other nations.
Great British Tour
Ltd make the
collaboration with
the other overseas
nations customers
to UK
British trip offers
the packages of
holidays in the UK
for the customers
Andean Trails is
specialist tour
operators in UK
and offering
different king of
tour packages to
their customers.
Example of
products
Short and long
haul trips, cruises,
city breaks' and
sea visit etc.
Self-drive tours,
heritage tour,
coach tours etc.
Boating, holiday,
day tours, great
hospitality services
etc.
Boating, holiday,
day, great
hospitality services
tours, adventures
trip etc.
Suitability of different methods of contracting for different components of the holiday and
different types of tour operators:
With the help of the above discussion it has been founded that, tour operators are agree
on the contracting with resorts and airlines. They have made a fixed contract for their 5 days
holiday trip (Britain tourism strategy, 2013. Under this contract, tour operators have booked
entire route for their airlines and their hotel rooms as well. As per the given case scenario, by the
way of selecting outbound tour operators such as Thomas Cook London, the whole summer
vacation 5 days tour package can be planned (Buck, 2011). Company offers various discount
services on its packages as well which helps them in attracting huge base of customers. Thomas
Cook itself having appropriate term contract with several hotels, resorts as well as restaurants.
They can sign the contract with best hotel under their budget and set their 5 days stay as well.
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One of the major reasons for selecting this tour operator is its brand image as well as the its long
and short haul trips, city breaks, cruise etc (Levene and Loizou, 2012).
2.3 Calculation of selling price of a holiday from given information
Services Cost(in £)
Twin room (2 adults sharing) 60
Supplement for BB 10
Transportation cost 50
Tour guide 200
Profit (10% of cost price) 320*10%
TOTAL 332
TASK 3
3.1 Evaluation of planning decision taken for the design of a selected brochure
For conveying the message, brochure plays an important role in tour and tourism
industry. By using this thing, Tourism Company can easily sell their holidays packages and raise
the profit of the organisation (Gray, Matear, and Matheson, 2016). According to the present case
scenario, the design and planning evaluation brochure is based on Thomas Cook. The major
advantage of this brochure is it is based on low coast and easily reaches to their target clients.
For designing the brochure for Chinese college students, it is necessary to do a proper planning
and researcher (Cooper and et al., 2008). Further, it is also considered their culture and their
taste. The planning decision for Boucher is based on some facts and they are as follows:
Recognizing planning issues
During the decision of planning Thomas Cook consider so many brochures and also put
their concentration on selection method. For example, whole planning is based on the Chinese
student education tour (Lumsdon, 2010). The location will be based on London, UK to France.
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The major issue will be considered is based on the quality of food items, the need and desire of
the students for the company.
Format
While taking the decision, format also plays an important role. The font system,
language, colour and quality all things are included in the format (Peters, 2013). Thomas Cook
first prepares a tour package for their Chinese students than prepare a format for them. For
example, the holiday is based on the summer holidays, due to this, planning members set the
entire colour according to the summer holidays. All details will be based on the tourism
destination of London. Further, this brochure also includes the name, address, phone number of
hotel and restaurant (Sims, 2010).
Target market and the budget of the tour
After selecting the perfect brochure, the next step is based on to select a target market and
budget for the tour (Britain tourism strategy, 2013). For this, Thomas Cook, divide their whole
tour into some segments. Furthermore, the major factor is based on the tour budget, for this UK
government also give their support.
Print specification
In this step, Thomas Cook decides the printing of brochure. For this, planning department
give an order to printing department and check the whole content. For this, they proof read the
whole content; detect the colour and size of brochure (Levene and Loizou, 2012). All things have
been done under the guidance of supervisor because brochure is one of the important things. The
reason behind determine price specification is to ensure each and everything in details and also
mention the whole format of the brochure.
3.2 Access the suitability of alternatives to a traditional brochure for different types of tour
operators
Nowadays most of the organisation use digital marketing for the advertisement (Levene
and Loizou, 2012). Thomas Cook also used this method, furthermore, they also follow some
different methods and they are as follows:
Internet
It is one of the common methods of advertising; by using this method Thomas Cook
Company advertise their tour information on social media sites (Cooper and et al., 2008). Make a
PDF and upload on you tubes and other sources. By this they do marketing and attract the
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customers. By doing this, they can easily grab the attraction of customers and by sharing the
knowledge they can easily raise their company profit and brand images as well (Barrett, 2012).
Videos
In this method, tour operator makes a short video of their trip and uploads it on website
(Damonte, 2013). For this, it is important for planning and development department to make an
attractive video and show all the important information in the video.
By seen the video on website most of the students get attracted toward the packages of
London and they registered their name (Krogerus, 2011). By doing this thing, organisation raise
their brand image and also raise their profit.
Television
It is also successful method where tour operators make a short commercial ads and
upload them on television (Lin and et.al., 2012). The main reason behind selecting this method
of promotion is, most of the people watch television, so by this they can easily share their
awareness of their tour. in these ads they mentioned all the important information like; phone
number for contact, address etc (Dezdar, 2012). By seen the ads customers can easily contact
them and get all the information about the tour. By selecting this sources promoter also do a
comparison with other companies.
Banner
In this method, tour operator print their broacher into the banner and grab the attraction of
customers. In this broacher they mentioned all the important things (Dahles, 2013).
Mail
In this method, tour operator sends a mail to their permanent customers and conveys their
message which is based on their upcoming tour (Cloonan, 2013). By doing this they can save
their time and money as well.
3.3 Evaluation the suitability of different methods of distribution used to sell a holiday for
different types of tour operator
In order to reach to target intended audience there are various methods of distributions
used to sell holiday package at right sources. With the help of selecting right distribution
channels tour operators can reach out to their target intended audience and easily attract them
towards their services (Levene and Loizou, 2012). These channels are as follows such as:
Internet
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In today’s globalized world majority of customers nowadays are spending their time on
the internet surfing. It makes them aware about recent development trends on the basis of which
they can enhance their business and profit margin as well. This method is highly suitable as tour
operators can easily reach out to worldwide consumers and provide them appropriate services as
well (Jayawardena, 2013). It is much cost and time effective distribution channel as it do not
involve any intermediary between this. Tour operators can directly make contact with the
customers and keep them happy and satisfied with the same. They can take feedbacks from them
and provide them services as per their feedbacks (Barker, 2014). It has been evident from past
studies that southwest airlines increase its revenues by posting the attracting ads on their website.
It is the best distribution channel through which they are able to reach through the huge base of
customers. On the other hand, Thomas Cook has sold out almost 200 summer vacation tour
packages to their entire with the help of internet (Barrett, 2012). It is the best place where many
of the students are able to know about the summer tour in France and London as well. Both
destinations are highly popular and Thomas Cook has already gone through selling of these
packages over the internet.
Travel agents
Another most effective distribution channel is related to the traveling agencies as they are
the one who can provide better services to the required person (Buck, 2011). Due to the
increasing use of internet most of the tour operators are shifting towards it and it is decreasing
the rate of using travel agents. As per the given scenario, for the tour package of Chinese
students, Thomas Cook can also make contact with the travel agents and make various bookings
for their tickets as well as transportation and hotels (Voxted, 2011).
TASK 4
4.1 Evaluation of strategic decisions made by different types for tour operators
In order to attract huge base of customers, it is becoming highly essential for travel
operators to take appropriate strategic decisions (Smith and Waterton, 2013). In their day to day
operation management, they need to prepare several decisions which help them in gaining higher
profit margin as well as revenues. By the way of taking appropriate decisions companies can
easily generate higher revenues. It is the most effective way through which profitability can be
enhanced. These decisions are as follows:
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Pricing strategy
This is regarded as a most important part at the time of developing any type of tour
package. It needs to be set by tour operators by the way of deciding their pricing strategy as per
the buying behaviour of customers (Mehmetoglu and Normann, 2013). There are various
decisions that need to be taken into consideration at the time of setting any tour plan such as
fixed price strategy, discounting pricing etc. Among both them company needs to select the best
pricing as per their profit margin. In this case, it is being determined that with the help of this,
Thomas Cook offers the discount during the summer holiday package (Mancini, 2001). It is the
most effective strategy on the basis of which they can attract huge base of customers.
Positioning and branding
It is regarded as another most important strategy which needs to be set as per the needs
and demands of customers. Within this concern, it can be regarded that at the time of taking this
decision, tour operators needs to select best promotional methods so that they can make
appropriate branding of their products (Lumsdon, 2010). They need to set appropriate
positioning and segmentation so that target customers can be attracted with the same. Moreover,
tour operator’s needs to make various strategic decisions on the basis of selection of target
customers. For the same, companies need to take several feedbacks and suggestions from the
customers. It is the only way through which they can position their new tour package.
Distribution decisions
All decisions related to the distribution of the services and selling of holiday packages
should be inline (Levene and Loizou, 2012). It is the regarded as a most important decision as it
helps tour operators in attracting right customers towards their right services. For example,
Thomas Cook can easily make direct contact with their customers by the way of selecting
appropriate distribution channels such as internet, retailers etc (Gray, Matear, and Matheson,
2016). These are the channels on the basis of which they can reach out to their target customers.
4.2 Compare the tactical decisions that could be taken for selected tour operator in different
situations
There are various situations which may take place at the time of developing and
implementing any new tour package (Damonte, 2013). However, there are various tactical
decisions that need to be taken into consideration at the time of deciding pricing of tour package,
planning for day to day activities etc. In terms of managing their whole business and meeting out
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with the changing needs and demands of customers some of the most essential tactical decisions
which tour operators may take are:
 Cancellation the contract with the other service providers (Cooper and et al., 2008).
 Keeping appropriate contact and relationship with stakeholders
 Business and distribution channel expansion
 Introducing new holiday packages as per the changing desires of customers (Cloonan,
2013).
The above given decisions are counted as some of the most important tactical decisions
which needs to considered in varied range of situation. However, tour operator need to make
appropriate contract with the different service providers. It helps them in making better relations
with them (Smith and Waterton, 2013). It can be easily explained with the help of proper
example such as: Thomas Cook is a leading tour operators and they can attract huge base of
customers by the way of making required contract with different service providers such as: They
can make the tie up the airlines of the different nations for giving more luxury to the customers.
By making inline relations with these service providers company can easily enhance their
business and make contact with more number of customers . By conducting appropriate meetings
they can make contact with them and easily enhance their profit margin with the same (Dahles,
2013). Lastly the most effective tactical decision which can be taken into consideration is related
to providing better customer experience for the next time. For the same, they need to better
understand the desires of customers by filling questionnaire for them (Lin and et.al., 2012). Here,
Thomas Cook can send consumer feedback form to all their regular clients and make changes in
their strategies as per the changing desires of customers. With the help of this feedback forms
they can provide high level of satisfaction to all its customers and make them happy and satisfied
as well.
CONCLUSION
From the above report, it has been founded that there is a huge growth of travel and
tourism industry due to the changing needs and demands of customers. It has been articulated
that tour operator play a most important role in developing effective holiday packages. Tour
operator’s needs to consider several activities where different stages are involved such as making
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appropriate contract airlines, hotels, resorts etc. Further, there are several strategic and tactical
decisions needs to be taken into consideration which helps tour operators in effectively managing
their tour plans.
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