Tour Operations Management: A Comprehensive Analysis of Trends, Strategies, and Tactical Decisions

This comprehensive analysis delves into the dynamic world of tour operations management, exploring current trends, strategic decisions, and tactical approaches employed by different types of tour operators. The paper examines the impact of recent developments on the industry, evaluates the stages and timescales involved in holiday development, and assesses the suitability of various contracting methods for different components of a holiday package. Furthermore, it analyzes the planning decisions behind brochure design, explores alternatives to traditional brochures, and evaluates distribution methods for selling holidays. The paper concludes by highlighting the importance of strategic and tactical decisions in achieving organizational goals and ensuring success in the competitive tourism market.

Tour Operations Management
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Table of Contents
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................4
1.1 Analyse the effects of current and recent trends and developments on the tour operators
industry........................................................................................................................................4
Task 2...............................................................................................................................................8
2.1 Assess the stages and timescales involved in developing holidays.......................................8
2.2 Evaluate the suitability of different methods of contracting for different components of
the holiday and different types of tour operator........................................................................11
2.3 Calculate the selling price of a holiday from given information below..............................12
Task 3.............................................................................................................................................13
3.1 Evaluate the planning decisions taken for the design of a selected brochure......................13
3.2 Assess the suitability of alternatives to a traditional brochure for different types of tour
operators and recommend the most appropriate for your tour package....................................16
3.3 Evaluate the suitability of different methods of distribution used to sell a holiday for
different types of tour operator and recommend the most appropriate for your tour package.. 17
Task 4.............................................................................................................................................18
4.1 Evaluate the strategic decisions made by different types of tour operator..........................18
4.2 Compare the tactical decisions that could be taken by a selected tour operator in different
situations....................................................................................................................................20
Conclusion.....................................................................................................................................21
References......................................................................................................................................22
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Introduction
Tour operators are companies that organize and provide holiday's site for those who are
interested in travel and accommodations. Tour operators combine the tour and travel to make a
complete holiday package (Fletcher, et.al., 2017). They advertise their packages through media,
brochures so that their holiday offers and products can reach many people across the globe.
Tour operator products exist in varieties such as the flight on charter airlines, the transfer from
hotel to airport and other local services. Tour operators can decide to specialize in the different
destination like USA, Germany, and France etc.
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Task 1
1.1 Analyse the effects of current
and recent trends and
developments in the tour
operators industry.
Tour operator is simply the companies
whose roles are to organize tour
packages such as traveling and hotel
accommodations. Tour operators have
got responsibilities of ensuring that
their customers are served with the
right packages of their own interests
and it varies from one destination to
another destination. In the UK there are
many types of a tour- inbound,
domestic, and outbound tour. Many of
the companies offer the combination of
domestic and outbound tours (Institute
of Marketing, 2018).
Types of services offered by the
different types of tour operators
Touring operators are offering many
services to their customers across the
globe. Among the services they offer
are traveling services. The traveling
services are too complex with varieties
of services in its search for tourism
products, destination marketing
organization, tour operations, travel
agents, and many more others. Among
other services that are offered are
accommodation, transportation,
recreation, food and beverages,
entertainment etc.
[Source: Nalam, 2013]
Accommodation: Tourism operators
have got well-vanished hotels in
different destinations where their
guests can seek accommodation.

Transportation: Transport services
are one of the key services offered by
the tour operators. Tour operators have
flights that go to various destinations
both in the UK and other countries.
Foods and beverages: To those who
border their flights and those who are
accommodated in their hotels would
want to eat and drink, therefore they
offer food and drinks to for their
customers.
Entertainments: There are various
entertainments which are being
sponsored by the tour operators such as
cultural events, musical events, and
various activities.
Recreational: There are many
recreational in the tour operator
terminals such as swimming, ball
games, athletes and many other
activities that are meant to keep people
happy.
Vertical and horizontal integration
in leading operators
Two tourism industries that are
offering the same products can decide
to merge together so that they can offer
this product while the effort is
combined. The process of these
industries becoming together is what
we call horizontal integration. An
example of the tourism industries that
merged together horizontally is First
Choice Hypermarket and First Choice
Travel Agency. The buying chain of
the two industries shows that they are
of the same level in product terms.
[Source: Jurevicius, 2013]
A tourism industry might decide to
expand the level of the product in
which they offer to their customers.
The company then decides to buy
another company that offers a product
in the different chain. In traveling
industries, two companies might decide
to take over each other so that they can
sell the product of the other company
and their services to their loyal
customer.
Major tour operation in the UK
UK tour operators are very many with
different destinations across the world.
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Among them are virgin holidays tour
operators, which is the best for
honeymoon, wedding, sports because it
has many destinations across the
world. Titan Company which offers
arranges of escorted tour experiences
in the world. Milestones tour which a
family company and it offers tour
services in different countries such as
America, Africa, Asia, Turkey, and
Canada. Brittany ferries which offer
holidays to France and Spain while
crossing the water. Saga travel is AK
Company that is leading in offering
products to the people of the UK and
the world. Among other tour, operating
companies are Balkan holidays,
Explore, Riviera tours, Kuoni and
intrepid travel which offer traveling
services across many parts of the
continents (George, 2018).
Leading operators involved in the
vertical and horizontal integration
Horizontal integration is good because
it increases the market share for an
organization. In the UK the leading
company under horizontal integration
in an airline owned by the British
Airways which was taken by the Easy
Jet company in the year 2002. When
the company took over the British
Airway, they changed everything
including the names and the logos of
the company. Since they emerged, the
Easy Jet became popular with very
many destinations which then meant
good results in terms of the business
activities they offer in the market.
An organization such as Easy Jet may
decide to own two or more companies
of the buying level chain. The Easy Jet
is an example; they went further to
offer accommodation at an affordable
price which then made people shift to
the company for the same. The
company is now engaged in vast of
hotel activities that makes it one of the
popular tour and accommodating
company across Europe as things stand
by now.
Impacts of integration on the tour
operations industry
The tourism industry is the largest
known for its market across the globe.
The industry is contributing a lot to the
economic activities not only in the UK
but in the world at large. Around
11.8% of the GDP across the world is
contributed as a result of tourism
integrated industries while the rise in
job opportunities has gone to 9.11%
which makes it one of the leading
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industries in creating opportunities for
the youths in the UK and in the world.
Integration of tourism industries
reduces heavy competition among the
tour industries across the global
(Hayward, 2010). This is because the
companies are coming together for the
common goal of serving the interests
of the people, therefore; they emerge to
offer services in equal terms other than
competing each other in the same
industries.
Stimulating the social and cultural
exchange, people of different cultures
can go visit other people and learns
more about the other communities
across the world. This brings in unity
among the people and building the
culture of different people. Among
another achievement as a result of this
is ethical behaviours adopted by other
culture, religious values and other good
values from different people across the
boundaries of ethical behaviors.
European and global links of major
tour operators
There is quite a number of European
links and global links in the tour sector.
These links have got responsibilities to
ensures that the clients who have
visited various destinations are
properly served with the right services
they need. Among these links are
European Tourism Operators
Associations which stands for the
interests of the inbounds together with
the intra-European tour operators as
well as their suppliers (Dale, 2015).
Coach Tourism Council which is
dedicated to European to promote
travel and tourism through offering
training to consumers and travel trades,
UK inbound whose major concern is to
equip people with information about
British Tourism industries and British
tourism suppliers. BAFTA is a UK
association for the group wholesales
tour agents.
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Task 2
2.1 Assess the stages and timescales involved in developing holidays
Trailfinders needs to develop various stages and timescales to develop holidays and custom
packaged for the customers. There are quite a number of stages that are involved in creating the
holidays because customers do want to know the kind of feature they do expect in the different
destination, the kinds of accommodation and the environmental factors for a particular place to
visit.
Research: The elements associated with the tour are the things to analyze. These will include
things that are involved in the tour markets and destination together with what the people
touring expect to achieve. If somebody is willing to tour in a place and he/she has an area of
interest then tour operator will equip the person with a potential market that offers additional.
Tour operators have got another work of seeking a market for their products. And finally, the
operator should identify any feature be it economic, political; social that might influence their
operations in the future.
Tour itinerary development: This involves working out the effective tour itinerary. An
itinerary is a process of developing the tour program which outlines the destination, the origin,
routs, accommodations, sightseeing activities, transportation and other tourism services. Tour
itinerary is the outline of key activities that are going to be carried in the field such as
destinations, departure, arrivals, meals available, modes of transportations etc. An itinerary
enhances the tour process because it outlines the activities together with the involved parties in
that particular activity.
Negotiation with tourism suppliers: The next step is to negotiate with tourism vendors such as
airline suppliers, transport operators, lodging companies, car rentals, ground operators, etc. this
can be done with air carrier directly or through their agencies.

Costing of packages: The cost is involved to change the need for the client into a package. The
cost of tour package depends on what the package client needs, therefore, no fixed package is
available.
Financial evaluation: The exchange rates will be the step here to know what the value of the
package offered to the client. In these steps, the tour operator will evaluate both the benefits and
the risks such as the exchange rate risks for payments of the service that can be incurred in the
process of this service.
Administrative staff: Tour guides are the sensitive job and seasonal job. Because of that, the
people required to conduct the activity are people of high integrity, sociable in nature, maintain
ethics, results oriented and can quickly make a constructive decision to enhance the growth of
the tourism business.
Marketing of the tour packages: The tour operators have a duty to combine those packages
and put them in a way that can be affordable to people. These marketing will then be carried in
the most common and known nations such as USA, India, France, Germany where they do have
destinations.
Developing tour market plan: This involves the aim in which the company is set for. The tour
company needs to understand their products and their market so that they can plan to base their
minds on the services and products they offer and whom their customers are.
Market inbound and outbound tour: The international market tour is more complex as
compared to domestic market tour. To achieve it successfully, the tour operator will be then
forced to attend the international conferences, meetings, and other associations internationally.
Tour operator’s brochures: The tour brochure is produced in a way that it contains the
products and services for the company that can attract the customers to purchase (Fletcher, et.
al., 2017). The other things that are contained in the brochures are the name of the company,
location, contacts, the products they offer, nature of the place and any other necessary service
depending on the company.
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Operation and executive tour: This part is vital because the company should make sure that
all the services they mentioned are being offered successfully. Therefore, the operating manager
must ensure that they work and deliver services according to what the tour guide stipulates.
Tour management: The tour officers should now go through their set goals and the actual
performance to see if at all they achieve their plan as per the objectives. The companies have
policies to guide them through their duties and therefore will ensure the success is meat
depending on the managements' commitment to achieving their goal.
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2.2 Evaluate the suitability of different methods of contracting for different
components of the holiday and different types of tour operator
The different types of tour operators are as follows:
Domestic tour: These kinds of a tour are whereby the citizens of the same country are traveling
to tour within their country. These tours offered within the country could be natural resources of
the country such as rivers, national park tours, cultures of the countries, oceans, train tours etc.
The UK is in the group of the most lucrative countries to visit because of their good natural
outlook. The domestic tour operator has the role of ensuring that he knows all the physical
features of the country and other features that can attract the local residents and foreigners who
get their time in the country in case if.
Outbound tour operators: In this case, tour operators take residents from a different country to
another country. In Europe, these places are the countries such as China, Australia, Patagonia,
Middle East etc
Inbound Tours: Non-resident of the country traveling to another country. There are companies
that provide assistance for the guests from another country. This is due to language issues
whereby the visitors are not conversant with the language used in that country very well. These
companies are called inbound companies or receptive tour operators. Receptive tour operators
can be formed by groups for offering transportation or they are as well called destination
management companies since they help to direct the visitors or goes with visitors to their areas
of choice in the country. Receptive tour operators are concerned with the visitors from various
parts of the world and therefore, they are concerned with barriers such as language,
uncertainties about the destinations etc.
The above tour operators contact with other components that are involved in packaging holidays
that may involve transport, hotels and attractions.
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2.3 Calculate the selling price of a holiday from given information below.
Package Details Total (Amount in €)
Accommodation and food 42*€90 3780
Cost of Transportation £ 7400 8510
Cost of Local tour guide € 920 920
Total cost 13210
30% mark up 3963
Selling price for the package 17173
Price per persen €17173/42 408.8809524
Calculation of Mark up amount
(30/100)* €13210 0.3* €13210
€ 3,963
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Task 3
3.1 Evaluate the planning decisions taken for the design of a selected brochure
A designing brochure is a planned decision that requires covering the holiday packages for the
industry. The package shall then include the information about the destinations, the products
which can be able to convince consumers such as the students, workers etc. the kind of package
should consider what the customers want to take. Trailfinders have got their specific products
and services while the company employees who have decided to go for a tour have got their
own interests and therefore shall be expecting to get the right package for them. Other
information includes insurances cover, documents required, prices, duration of the tour, details
of destination, transport for the tour, materials to be carried by the person, risks that are likely to
be involved, extra costs that may arise (Heizer, 2017). While considering taking the brochure,
the user’s interest is a key factor. Interest is based on the color of the brochure, selected vendor
etc.
A traditional brochure is an important tool for providing information about the outlay of the
tourism company. The brochure is a brief summary of the targeted market. By using the
brochure there are high chances that are being increased for the purchase of the ticket.
Therefore, a brochure should be made attractive by colors, decorations such that when the client
happens to come across it, they admire what has been seen in the brochure. Even though
traditional brochure is good but the modern brochure that has been made through the current
technology looks so pretty and is able to do marketing for the company worldwide.
The current physical features that the traveler is expecting to see while in those countries, such
as UK, Ireland, and Central Europe at large (Macário, 2011). It shows some of the unique
building and animals which are rarely in many parts of the world. It is therefore a clear
indication that the brochure has given the picture of the countries. Because of that, the client
would be interested to see the physical features, the unique animals and the mountains of these
nations. Out of that, the interest of many people can be driven by only what they see. Therefore
brochures are a good marketing method for the tourism sectors.
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The legal implication in tour operators
The holiday tour is covered by law and there are a number of things that need to be clear before
you make a travel. The first thing is to ensure that the journey is covered and protected by law.
The holiday tour package must meet the laws and if any law is not met as per the requirement
then you need to claim before so that details by law to be followed. After booking the package,
the tour operator is now liable for everything like car hire, accommodation, food, flight etc.
travel package policies are meant to help customers to pursue the law against the tour operators
in case the services do not meet the standards as stated in the brochures.
Strategic decisions made by different types of tour operators.
In the cause of the traveling, there are uncertainties that can be met by the flight, road and any
other mode of the traveling. In the places of accommodation, we also understand that things
might change hours before the occupation of those houses. Under such circumstances, the tour
operators are then allowed to make strategic decisions that will help to avoid any ugly even
from taking place. W, therefore say that making the strategic decision and doing implementation
is good to avoid any problem that can ruin the company (Nilsson & Rapp, 2014). The decision
made should be a decision that can strengthen the organizational service provided. For an
example, the destination in which the people booked experienced a very cold weather such that
whoever goes there can be affected by malaria then it forces the company and the operators to
change the directions.
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3.2 Assess the suitability of alternatives to a traditional brochure for different types
of tour operators and recommend the most appropriate for your tour package.
Apart from traditional brochures, the Trailfinders have their attention on advertising their
products with the adoption of diverse procedures. The adoptions of numerous different
strategies in marketing and advertising and marketing their products embody their website;
procedures are at its superior level and are followed by many whilst going for walks their
businesses or being within the place of work, advertising of their tour applications whether or
not on line online or on the basis of direct marketing. Those excursion programs are being
supplied via the use of various tour operators further to describing the added gain of the use of
such applications via the goal customers. To evaluate the suitability of alternatives to a
conventional brochure may want to, therefore, be appropriate with using E-Brochures as E-
Brochures have been within the normal name for of the customers as they may be not having
enough time to the touch with the tour operators straight away. Such brochures are made
retaining in thoughts the approaches to attract customers closer to their excursion programs and
in the course of choosing their website to journey (Jurevicius, 2013).
Any other opportunity for a traditional brochure is the media that's made operative that allows
you to fulfil the desires of the contemporary purchaser. As using video brochures entice more
customers and make clients informed about the journey industry and the features that are being
promoted thru the industry. With the help of YouTube essentially, such brochures are made
available to the potential customers.
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3.3 Evaluate the suitability of different methods of distribution used to sell a
holiday for different types of the tour operator and recommend the most
appropriate for your tour package.
There are various strategies of distribution which might be being accompanied for you to sell a
holiday by manner of distinct forms of excursion function as:
Tour retailers are the retail distributors in promoting a package deal vacations. The principle
function of a tour agent is to sell the product that is put together by an excursion operator in go
back for a fee which might also lie among 10 to 15% of the vacation reserving price. The
excursion retailer’s fundamental reason is to promote a product to the clients as they fantastic
fee expenses being set with the excursion operators. They will be also very strange in attracting
the repeat companies thru making the patron satisfied with the useful resource of the operator
who is presenting them the high-quality fee for cash (Jurevicius, 2013).
Direct distribution technique or channel to a promote a product thru a tour operator right away
because the excursion operator operates with the purchaser right now through the usage of cell
Smartphone, net or may be with the assist of social media. For range of operator’s distribution
thru adventure sellers have turn out to be much less vital and is in much less call for while as
compared with the contemporary techniques of promoting the product as internet, cell phone,
and so forth. As customer ownership is essential for the operator so they placed their efforts in
promoting the product without delay.
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Task 4
4.1 Evaluate the strategic decisions made by different types of tour operator
The Trailfinders is flexible in terms of many items that help them to enhance the income of
tourism companies. In order to achieve that, there are different kinds of decisions that require
them to make so that the firm can be a profitable firm for the society at large and for the
company. Amongst the strategy that they take to help the growth of the company are adopting
the price efficiency, the strategy that will enable them compete with their enemies in the market,
the consumer segments which are the right people who are willing to consume and ready for
their products, the strategic planning is the key driver for such organizations because through
planning strategically the company can know the cause of action for the good of organization.
These are the strategic planning that can be taken by this kind of the organization.
Viewing full documents
The discount in pricing strategy is a good strategy that is being considered to make this
organization to earn more customers. If the organization takes a fixed price contract, then the
tour operators will stand a chance of providing the discount the loyal customers so that it can be
a way of retaining their loyalty and bring more to the company. The loyal customers will
compare the discount effect to the packages that are being offered by the company of which that
will make them stick by the company and the company will have an advantage over that to their
competitors. The company needs to segment the market, knows their target customers, and then
position themselves in a strategic manner that can help them to win the market as a whole. The
tour operators have the capacity to analyze all the decision taken and finally, they make the final
decision that can help promote the activities of an organization. As the company is making
decisions via tour operators, the situation of such as the pricing in the market by other
competitors, promotion strategy is also factors since it is very much important to know how
your competitors are faring in the market (Barnes, 2018). There is what we call seasonal aspects
in the tourism industry. Some seasons are so good and demand is high while other seasons are
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so low and demand is very low. Due to that, seasons are also contributing when it comes to the
strategic planning. High seasons are referred to us as high peaks while low seasons are lean.
4.2 Compare the tactical decisions that could be taken by a selected tour operator
in different situations.
Competitive pricing strategy which is the most important part of all strategies, this is because an
organization should be competitive in terms of the prices and their prices should not be of big
different to what the competitors are offering in the market. These techniques will be a building
foundation for the organization because it will help to attract the consumers as well as develop
the local consumers that are around the place where the company exists in. Promotion strategy
is also good to be there because the operators will desire to promote their tour packages a time
(Gibson, 2016). The tour operators will then see how best they can manage to make their
promotion by choosing the right tools, the right methods so that they can be of the top market
that is needed by the client. These decisions are very much important because organizations are
found where many other tourism companies are and the best in the market will be picked by the
majority of the consumers. Times there are wars in the companies such as political mayhems
and other violent, due to those, companies may not be able to get customers as per the intention.
Therefore, such as activities has led to the downfall of some organizations.
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Conclusion
From the above, it has been concluded that management of tour and tourism need lively
integration of different parties like hotels, tour operators, and travel companies. It helps to put
together powerful excursion package deal and provide element information to site visitors as a
consequence. It could also be said that social media advertising and other appealing ways of
non-traditional strategies facilitate to decorate income turnover of the organization to a splendid
quantity. That is because of visitors who can easily book their ride. In addition to this, tactical
choices play the imperative position in formulating powerful strategies and executing the
identical with a purpose to carry out company targets in an effectual way.
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