Methods of Distribution for Tour Operators

This assignment discusses different methods of distribution used by tour operators, including Visitor Information Centres (VCIs), Online Travel Agencies (OTAs), Concierge Services, Government Websites, and Social Network Websites. The importance of E-Brochures and alternative to traditional brochures is also highlighted. Additionally, the report covers planning decisions, cost, target market, budget, print specification, timescale, and production taken for designing brochures. Overall, the assignment aims to provide an understanding of the distribution channels used by tour operators in the travel industry.

Tour Operations
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Effects of current and recent trends and development .........................................................2
TASK 2 ...........................................................................................................................................4
2.1 Stages and timescales in developing holiday........................................................................4
2.2 Different methods of contracting for holiday development .................................................4
2.3 Calculate selling price of holiday .........................................................................................5
TASK 3............................................................................................................................................5
3.1 Planning decisions taken for design .....................................................................................5
3.2 Alternative to traditional brochures .....................................................................................6
3.3 Methods of distribution ........................................................................................................7
4.1 Strategic decisions of different types of tour operators .......................................................8
4.2 Compare tactical decisions ...................................................................................................9
CONCLUSION .............................................................................................................................10
REFERENCES .............................................................................................................................11

INTRODUCTION
Tour operators regularly joints tour and travel elements to design holiday package.
Operators are advertised and produced brochures to advance their goods, holidays and travel
plans. The tour operating is trouble for ordinary tribe of creating arrangements in far-flung
places with the difficulties of language, currency and interaction(Byrnes and et.al., 2016). The
advent of internet has led to fast enhance in self packaging of holidays. This study is based on
LCB tours. This assignment will analysis effects of current and recent trends and developments
on tour operations. It will assess stage and timescales in holidays development as well as
different methods of contracting for different elements of holidays. It will calculate selling price
of holidays and also evaluate planning decisions for brochures designing. Furthermore, report
will assess alternative to traditional brochures for various types of tour operators. It will evaluate
strategic decisions by various types of tour operators. It will compare the tactical decisions in
different situations by tour operators.
TASK 1
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1.1 Effects of current and recent trends and
development
Tour operators faces various current and recent
trends and development for expanding their
business and it success. Such as advancements
of technologies, increasing and failing of
inflation rate, low cost carriers, enhancing
environmental awareness, effects of Brexit on
tourism etc. There are four kinds of tour
operators such as:
Inbound tour operators: These types of tour
operators gives trips within nation to the
travellers from another nations. They give
localized help for travellers reaching in their
nations. These types of tour operators are
called as receptive tour operators. They are
made up localized preparation for pick up and
drop facilities to airport, planning for general
attraction visits and give local guidance as well
as taking responsibility to traveller stay.
Domestic tour operators: These kinds of tour
operators are also called as resident operators.
They cater trips to resident of nation within
boundaries of nation. These operators repeat
trips awareness demand of localized market
and advise destination needs to nearest DMOs.
Outbound tour operators: These operators
help travellers of nation to visit other nation.
These kins of travellers are also called as
international visitors. Tour operators are also
made up global holiday for travellers and give
Specialists tour operators: These kinds of
tour operators give services to recess market
that has curiosity in specific geographic areas
and particular type of activity.
Advancements of technology: Technology
advancement adopt by tour operators essential
for encourage team for product development of
the company across worldwide. With the help
of it, tour operator easily providing services
and running business with flexibility. These
trends effects on tour companies in terms of
modelling product and services, customer
alters, determining pricing etc.
Raising and failing inflation rate: If inflation
rate is increased, so that customers purchase
low level of package for tour. But if inflation
rate is decreased, so that consumers are buying
high level package for tour. These trends
effects on product development activities by
team in the organization.
Increasing environmental awareness:
Today's world, environmental awareness is
very essential to people. In this context, tour
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tour packages to other nations. operators are planning holidays trips to take
care of environment.
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TASK 2
2.1 Stages and timescales in developing holiday
Covered in PPT
2.2 Different methods of contracting for holiday development
Covered in PPT
2.3 Calculate selling price of holiday
Covered in PPT
TASK 3
3.1 Planning decisions taken for design
Different types of tour operators create specific brochures for luxury holidays for tourists.
They are planning and taking many decisions for creating brochures of company. Such as costs,
target market and budget, determining print specifications etc. Costa group is inbound tour
operators in UK. Another one is Rabbie that is domestic tour operators in UK. Both tour
operators are considered all the factors to create brochure of holiday packages.
Cost: Costa and Rabbie tour operators determines cost for designing the brochures of
holidays packages. Cost involve design of brochures, distribution, quality of print, number of
copies and wastages. It is essential to determine all types of costs for planning of holiday
packages.
Decide format: It is also important to decide format of brochures that include two folds,
three or more such as booklet (Li, and et.al., 2017).Both tour operators make sure that deciding
the format according target customers and holidays packages. So that, it is essential to take
decisions for format of brochure. With the help of it, increasing attraction of target audience.
Target market and budget: Costa group and Rabbie identified and make decisions for
target market as well budget for creating brochures. In the target market, tour operators are
determined design and quality of brochures. For determine budget, they require design, quality as
well as volume for making brochures.
Determining print specification: Both tour operators make sure that print of brochure
must be specified. It involves nature of destination, target markets, budgets, style, font and size
of brochures. With the help of it, tour operators easily determine print specification for designing
attractive brochures.
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Timescale and production: Costa group and Rabbie setting up deadline, requirement
and demand of target market, travel of launching of brochures for holidays packages. It is
important for deciding time scale and stage of production. With the help of it, tour operators
easily launching their brochures of holiday packages.
3.2 Alternative to traditional brochures
Traditional brochures is used in form paper document that utilize for advertising. It can
be folded into template, or leaflet. There are different methods of brochures that are suitable
from traditional brochures. Such as, E-brochures, social media, radio, television, travel fair,
outbound media etc.
E-Brochures: This brochure is more suitable for traditional brochures. Because of, it is
more flexible, time effective, quick response, printing costs reduction, easily changes, download
simply etc. With the help of it, tour operators easily present their brochures to reaching
information to customers(9 Advantages of e-brochure design over traditional brochure printing,
2016). These are made by marketing and advertising experts. Therefore, it is most easy way to
know about holiday packages by tour operators.
Social media: It is the most important and suitable from traditional brochures. Tour
operators utilize social media brochures. Because of, every person use social media network, cost
and time effective. So that, it is more suitable and useful alternative to tour operators for giving
the information regarding holiday packages.
Outbound media: There are many outbound media brochures such as billboards, tube,
buses and TFL. This alternative brochures is more suitable from traditional brochures, because it
is consuming very less time and costs, grabbing attraction, achieving large coverage of certain
geographic with big oftenness.
Travel fairs: There are two largest fairs of travel and tourism such as World Travel
Market(WTM) and International Tourismus Borse. These alternatives are more suitable to tour
operators for presenting their brochures of holiday packages. With the help of it, tour operators
easily giving the information their product and services in terms of holiday packages.
Therefore, different types of tour operators utilise various alternative brochure to
traditional brochures for providing information of holiday packages to customers.
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3.3 Methods of distribution
Tour operators has utilized many distribution methods for selling of their holiday product
and services. Such as, direct distribution, government website, online travel agencies, review
sites, concierge sites etc.
Visitor information centre(VCIs): Visitor information centres have many tourists
destinations that are situated near of center in the heart of destination. VCIs workers give tourists
with recommendations and info about thing that are realised in the area. They organize
accommodation, tour, transport booking for travellers.
Online travel agencies: It is the most powerful channel of distribution by providing
travel providers. By this, provider give all the information regrading holidays packages. For
example Viator and Expedia. These agencies help in increase booking importantly.
Concierge services: Hotels concierge services means reservations for restaurants,
transport, events, tours and other functions. They are allowing concierge service to book tours
and activities and gain commission(Frankel and Gabriele, 2017). With the help of it, they start
praising products to customers.
Government websites: It is the good channel of distribution to leverage of direction on
destination. Local, state and national government identify ability of travel industry. They have
created many destinations websites to aids drive tourists to their areas(5 Essential Distribution
Channels for Tour Operators, 2018). This type of channel that assists to reach international and
domestic tourists.
Social network website: It is also very important channel of distribution that helps to
travel business. There are many social networking websites such as Facebook, Instagram,
YouTube etc. With the help of it, company easily providing all information regarding holiday
packages. It is the most beneficial distribution channel, because every person use these social
media websites.
Voucher sites: It is included in daily deal websites that are absolutely channelled for
filling capability during slower time periods. This helps in increasing awareness of business
without payment on the marketing.
With the help of it, increasing customer awareness and their experience for product and
services of travel sector. By this way, tour operators make sure that giving all correct information
all the websites and various distribution channel for planning of holiday packages.
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4.1 Strategic decisions of different types of tour operators
Tour operators made various strategic decisions for planning of holidays packages.
Strategic decisions includes pricing decisions, distribution, selection of product in relation to
customer portfolio, positioning and image, branding, surcharge policy etc.
Pricing Strategies: It is essential to determine pricing of product and services in terms of
holidays packages by tour operators. Therefore, they are applied various methods pricing such as
mark up, mark down, seasonality etc. Tour operators make sure that applying the appropriately
pricing strategies on affordable by consumers.
Distribution decisions: It is also very important decision to distribution channel for
holiday packages done by tour operators(Nagle and Müller, 2017). Therefore, tour operators
make sure that select appropriate channel for distribution of product and services that helps in
increasing customer attraction. There are many distribution channels such as visitor information
center, government websites, social media networking etc.
Positioning and image: Tour operators take decisions regarding targeting customers and
positioning in the marketplace. This helps in increasing branding and image in travel industry.
Therefore, tour operator make all decisions such as pricing, design of product, its quality etc. that
assists to become specific position in tourism market.
Product selection: Tour operators take strategic decisions about choice of product in
relation to customer portfolio. They make sure that select quality, pricing, design of product
according to customer demand. With the help of it, increasing customer awareness and attraction
for company.
Surcharge policy: Tour operators take decisions about surcharge policy for planning of
holiday packages. It is fee or tax that adding in cost of product and services. They make sure that
apply this policy for creating plan of holidays packages.
4.2 Compare tactical decisions
Tour operation take various tactical decisions such as tactical response, pricing and
marketing for planning of holiday packages.
Tactical response: Tour operators focus on customer demand, needs and wants,
requirement of product and services. With the help of it, tour operator take decisions according
to demand of customers in the marketplace. Through it, they are easily determining pricing,
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product design and other information according to customer demand. This helps in increasing
customer awareness and experiences for holiday packages.
Tactical Pricing: It is short time pricing for product that purpose is upsetting
competition and way of marketing entry. Tactical pricing involve one or more of strategies such
as temporary price cutting or other financially motivated sales schemes to assists enhance sales
of good. This pricing strategies is not helpful for long term. The middle level is tactical pricing
that adjusts price to take into account short term market dynamic that looks demand shifts and
competition.
Tactical Marketing: Tactical marketing directs on details to accomplish objective. The
tactics needed to reach goals set into occurrence within place of strategy. Tour operators make
tactics that helps to marketing strategies which includes portion profiles of customers. This
marketing frequently includes generating leads, building websites, placing ads, and following up.
It involves advertising, sales promotion and other actions that instantly helps to strategic
marketing plan of tour business.
Therefore, tour operator take tactical decisions such as customer response, pricing of
product and marketing plan for holidays package. With the help of it, they are determining
customer demand and needs. So that, they are taken decisions of pricing and marketing
according customer requirements.
CONCLUSION
This report has summarised that effects of current and recent trends and development on
Domestic, Inbound, Outbound, Specialists tour operators. Current trends includes advancements
of technology, raising and failing inflation rate, increasing environmental awareness in travel
industry. It can be concluded that stages and timescales that involves market research, planning
and scheduling, costing of holidays, creating Brochure, advertising, operation and execution in
developing holiday. It can be discussed that different methods of contracting for holiday
development that involves allocation, fixed and ad hoc contract by tour operators. Furthermore,
report completed that planning decisions that involves cost, decide format, target market and
budget, determining print specification, Timescale and production taken for design of brochures.
It can be concluded that alternative to traditional brochures that involves E-Brochures, social
media, outbound media, travel fairs for holiday packages. It can be discussed that methods of
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distribution that involves Visitor information centre(VCIs), Online travel agencies, Concierge
services, Government websites, Social network website for planning of holiday package.
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REFERENCES
Books and Journals
Byrnes, T. and et.al., 2016. Environmental management of boating related impacts by
commercial fishing, sailing and diving tour boat operators in Australia. Journal of
Cleaner Production. 111. pp.383-398.
Frankel, A. S. and Gabriele, C. M., 2017. Predicting the acoustic exposure of humpback whales
from cruise and tour vessel noise in Glacier Bay, Alaska, under different management
strategies. Endangered Species Research. 34. pp.397-415.
Karray, S., 2015. Cooperative promotions in the distribution channel. Omega. 51. pp.49-58.
Law, R. and et.al., 2015. Distribution channel in hospitality and tourism: Revisiting
disintermediation from the perspectives of hotels and travel agencies. International
Journal of Contemporary Hospitality Management. 27(3). pp.431-452.
Li, B. and et.al., 2016. Pricing strategy and coordination in a dual channel supply chain with a
risk-averse retailer. International Journal of Production Economics 178. pp.154-168.
Li, Y. and et.al., 2017. The concept of smart tourism in the context of tourism information
services. Tourism Management. 58. pp.293-300.
Nagle, T. T. and Müller, G., 2017. The strategy and tactics of pricing: A guide to growing more
profitably. Routledge.
Yang, D. and et.al., 2018. Optimal reservation pricing strategy for a fashion supply chain with
forecast update and asymmetric cost information. International Journal of Production
Researc. 56(5). pp.1960-1981.
Online
5 Essential Distribution Channels for Tour Operators, 2018. [ONLINE]. Available through. :
<https://www.rezdy.com/blog/5-essential-distribution-channels-tour-operators/>.
9 Advantages of e-brochure design over traditional brochure printing. 2016. [ONLINE].
Available through. : <http://itruth.biz/9-advantages-of-e-brochure-design-over-traditional-
brochure-printing/>.
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