Tour Operations Management: A Comprehensive Guide to Planning, Marketing, and Managing Successful Tours

This comprehensive guide delves into the intricacies of tour operations management, covering essential aspects like planning, marketing, and managing successful tours. Explore the stages involved in developing holidays, analyze the effects of current trends in the industry, and evaluate the suitability of different contracting methods for various tour components. Discover effective strategies for designing brochures, assessing alternative distribution channels, and making strategic and tactical decisions for different types of tour operators. This resource provides valuable insights for aspiring and experienced tour operators seeking to optimize their operations and achieve success in the dynamic tourism industry.

Tour Operations Management
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Table of Contents
Introduction......................................................................................................................................4
Task 1...............................................................................................................................................5
P 1.1 Analyse the effects of current and recent trends and developments in the tour operators
industry........................................................................................................................................5
Task 2...............................................................................................................................................7
P 2.1 Assess the stages and timescales involved in developing holidays....................................7
P 2.2 Evaluate the suitability of different methods of contracting for different components of
the holiday and different types of tour operator..........................................................................9
P 2.3 Calculate the selling price of a holiday from given information......................................11
Task 3.............................................................................................................................................12
P 3.1 Evaluate the planning decisions taken for the design of a selected brochure..................12
P 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....................................14
P 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 a luxury tour
package......................................................................................................................................16
Task 4.............................................................................................................................................19
P 4.1 Evaluate the strategic decisions made by different types of the tour operator.................19
P 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
The tour operator industry is a developing sector of the tourism industry. This sector provides
with accommodation, transportation and the recreational service etc. to the consumers and
tourist. The report has focused towards the tour operator industry in order to establish an
evidence-based and real-time understanding of the tour operator industry. The report will study
various attributes and concepts of the industry in relation to performance and operations. The
report will study stages for developing tour packages, the decision-making functions, brochures
and recent developments in the tour operator industry.
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Task 1
4

P 1.1 Analyse the effects of
current and recent trends
and developments in the
tour operators industry.
Introduction
Tour operator industry is a
dynamic and evolving sector
of the economy. The tour
operator industry is impacted
by the various current and
recent trends that are
functioning in the orbit of tour
operator industry. The trends
and their impacts are analysed
as below:
The trend of Technology
application in the industry–
Tour operator industry has
observed the excessive
application of technology and
software to process numerous
business functions and
activities (Font and McCabe,
2017). The industry has
observed for increased
application of internet
technology and information
technology for the preliminary
The trend of Product
development- This industry
has undergone extreme
alternations and changes in the
respect of product
development and
undertakings. The industry has
observed developments in the
tour packages and services as
per the requirements and
specifications of the
consumers.
Effect on the Industry-
The trend of product
development as per tourist
specifications and
requirements advanced the
products and services in the
tourism industry (Jenkins,
2015). The industry has
observed the development of
tour packages and programs
according to the demands. It
has increased the level of
performance and services for
the consumers.
The Trend of Increased
disposable income –
Conclusion
It can be concluded from the
above discussions that tour
operator industry has been
impacted in a developmental
and positive manner from the
recent and current trends and
development in the tourism
industry.
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and ancillary services.
Effect on the Industry-
With increased application of
information technology and
the internet into tour operator
industry, the business
functions and services have
been altered. The industry has
observed changes in booking,
reservations and the payment
systems execution today.
In the contemporary tourism
and tour operator industry, the
consumers are provided with
increased disposable income
to furnish their tourism
requirements.
Effect on the Industry-
With increased levels of
disposable income available to
the consumers, the industry
has observed a shift in the
tourism market. The
consumer's demands for high-
quality services that provide
with exceptional experience
(Watne, et. al., 2014). The
industry has observed the
development of niche market
tourism facilitating the leisure
tourism.
6

Task 2
Introduction
The report will discuss the concepts and aspects included in developing tour programs and
packages. The report will focus on the terms of evaluating the suitability of various contracting
methods in relation to different types of tour operators. The report will execute calculations of
the selling price for an educational tour package.
P 2.1 Assess the stages and timescales involved in developing holidays.
Trailfinders is developing an educational tour package for 42 students with time duration of 5
days. The organisation will undergo a process that will entail various stage involved in
developing a tour package or a holiday. The stages are explored as below:
Market Investigation: The Trailfinders are required to access market information and details of
the desired location. In this stage, the tour operator organisation will investigate into the market
conditions of the identified location(Watne et. al., 2014). The market investigation includes for
analysing and evaluating the forces of demand, supply, consumer expectations, and economic
conditions. The stage enables to identify and estimate the required services and finances involved
in developing the tour package.
Planning and Scheduling: The tour operator will schedule the tour after assessment of the
market and economic condition. In this stage, the Trailfinders will plan the requirements of
various activities and services required in order to execute the educational tour activities(Jenkins,
2015). The stage involves assessing the best time period to visit the identified destination.
Further, the accommodation, transportation and recreational activities and facilities are organised
by the tour operator.
The framing of Agreements: The stage is required to proceed for the contracting and forming
agreements for the identified services and facilities form the service providers and organisations.
It involves negotiating and determining the costs and process for all the required services and
facilities to be included in the tour package. Trailfinders is recommended to execute these
requirements 12 months before the required tour dates.
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Costing and Financing: The tour operators further assess and determine the selling prices for
the tour package developed. At this stage, Trailfinders will determine the actual costs incurred to
develop the program and will add up a markup percentage in order to incur profits from the
development of the holiday package. It also accounts for developing coupons, discounts, and
special offers etc.
Promotion and Marketing: After the development of the tour package Trailfinders will develop
marketing strategies and programs to market and promote the developed tour package. The tour
operator will develop brochures, mailing lists and pamphlets to be distributed amongst the
students and acknowledging with the details and requirements of the educational tour
program(Charter and Tischner, 2017).
Execution and Post Toru Analysis: The last stage of developing a tour program includes for
implementing the program and executing a post-tour analysis. The real-time execution of the
plan is furnished and the services developed in the program are availed. Lastly, the tour operator
is required to execute a post-tour analysis in order to determine the consumer experience and
satisfaction level from the tour package.
Timescales Involved
8

P 2.2 Evaluate the suitability of different methods of contracting for different components
of the holiday and different types of tour operator
There are several types of contracting methods and tour operators involved in developing a tour
program. The different tour operators and services required in the tour programs are discussed as
below:
Accommodation Services: The accommodation services provide staying over services required
in order to stay at the desired destination. The hotels and resorts provide with these
accommodation services by providing rooms and clubbed areas to facilitate the accommodation
services. The Trailfinders are required to assess the room requirements and the number of guests
the tour is accommodating. Further room capacity is to be determined in order to evaluate the
accommodation requirements(Clark, 2015). For developing a tour package for 5 days fixed
contracting is suitable as it is a pre-defined tour package with a fixed number of guests. This type
of contracting provides with maximum profitability and revenues for the tour operator.
Transportation Services: The tour operator is also required to determine the transportation
services and facilities. These services include for determining the routes and the modes through
which transportation will be executed. The transportation may be executed through airlines,
railways, and waterways etc. The tour operator is required to assess the number of bookings to be
processed and determine the requirements(Trinkūnienė et. al., 2017). Variable contracting is the
most suitable for this type of service as it provides with opportunities to change the number of
requirements as per the number of seats and bookings required. Variable contracting also enables
to monitor the fluctuations in the prices that are reflected upon the selling price of the tour
package.
Food and Eatery Services: The tour activities and programs also require including the food and
eatery services. These services are either fulfilled through restaurants or the services provided by
the hotels and resorts. The food services are required three times a day which forms a major part
of the tour costing and finances. Thus the food and eatery services are executed through fixed
contracting that provides with all the required meals.
9

Recreational and Amusement Services: These services are required for a tour in order to
increase the level of services and satisfaction of the consumers. As the above developed is an
educational tour it requires to provide with various recreational and educational activities and
programs(Lai and Hichcock, 2015). The tour has to incorporate visits to various visitor
attractions that provides with educational and professional knowledge and content to the
students. For this segment of the tour, the tour operator is required to consider variable
contracting or fixed contracting.
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P 2.3 Calculate the selling price of a holiday from given information
Particulars Per Person Selling Price for 42
students
Hotel €79*5= €395 €16590
Coach €7400/40= €185 €7770
Tour Guide € 800/40=€20 €840
Mark Up (30%) €180 €7560
Total €780 €32760
Conclusion
The report has provided with in-depth analysis and has accumulated evidence-based information
to comprehend the concepts of developing a tour package. The report has increased knowledge
related to tour contracting, types of tour services, calculations for tour costing and stages of
tourism development.
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Task 3
Executive Summary
The report has been developed with an objective to depict evidence-based and effective
understanding of the brochures and its development. The report will focus on developing
brochures and designing brochures. It will assess the suitability of various alternatives towards
traditional brochures. The report will also develop an understanding of ways to sell the holiday
packages and programs.
Introduction
Brochures are referred to as informative documents which are used for providing different types
of information to the target markets. The brochures are developed in a manner that provides with
the visual and graphical representation of the information and details. Brochures can be folded
into templates and are easy to disturb in mass gathering and public areas.
P 3.1 Evaluate the planning decisions taken for the design of a selected brochure
Designing of a brochure requires ascertaining various decisions and strategies. Several elements
are to be considered before developing and distributing the brochure in public. It is essential to
study all the elements that are necessary to develop a brochure(Hudson and Hudson, 2017). The
elements enable to determine the effectiveness of the brochures. The planning decisions that are
undertaken in designing the brochures are as below:
Format: This refers to the design and the layout or the structure in which contents of the
brochure will be presented to the consumers. The format also includes for the font style, size,
matter representation and the writing patterns of the details and information(Ahmad, 2016). The
format is one of the most essential elements of the designing the brochure.
Design: It refers to the layout of artwork and the graphical representation that is to be included in
the brochure. The design is required to be attractive and appealing so that it attracts an increased
number of consumers towards the organisation. Brochures must be designed as per the abilities
and understanding capacities of the target market consumers.
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Cost: It is an integral element which is to be considered in developing and designing a brochure.
Cost is incurred in printing, designing, distribution, and advertisement etc. It is essential to study
the various costs that are to be included in brochures. Thus it is necessary to estimate the costs to
be incurred in developing a brochure.
Budget: It refers to the estimation of the financial resources that will be required by the tour
operator to develop a brochure(Lumsdon, 2016). The budget identifies and estimates for the
financial requirements and the types of costs that will be incurred in developing the brochures.
Printing: It is the element which decides for the printing the brochures after all the elementary
designing decisions have been developed. Printing decisions accommodate themes, layouts
colour and styles etc. The printing decisions also require deciding for the quality of the paper and
the size of the paper(Font and McCabe, 2017). It is to be determined as per the details and
information to be included in the brochure and it must be represented in an understandable and
effective manner.
Target Market: The planning decisions must also consider the target market of the brochures.
The data and details must be as per the demands and requirements of the consumers. The
brochure is required to depict the information as per the knowledge and understanding of the
target market.
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P 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.
Traditional brochures are informative documents that are simplified templates. Traditional
brochures are developed in order to just educate the consumer about the tour packages and
programs. The traditional brochures are less costly and are designed in a normal manner. The
alternatives to these traditional brochures are as below:
Social Media and Internet Marketing
The increased application and utilisation of social media in the contemporary business
environment has provided an alternative to traditional brochures. The brochures are replaced
rapidly by social media marketing(Shaw, 2016). The organisation is using social media platforms
and portals to educate and communicate the target markets for the tour packages and programs
developed.
Travel Magazine
The tourism industry requires for promoting and advertising the tourism business and operations
through the application of travel magazines. The travel magazines attract an increased number of
consumers and enable to direct the motives towards the target market. Travel magazines also
enable to attract tourist and individuals fascinated by exploring new destinations and locations.
Mobile Application
The tour operator industry is also applying mobile phone and applications in order to increase the
market and consumer share. Organisations in this industry are engaging in online marketing
through mobile applications and software (Hall and Holdsworth, 2016). The tour operators have
developed their own websites and application that provides with regular updates to the
consumers and users about the tour programs and packages developed by the organisations.
Events and Collaborations
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The tour operators are also diversifying into organising and executing events and collaborations
in order to increase the area of operations for marketing and promoting the developed tour
programs and packages. The operator's industry has observed a shift from traditional brochures
to collaborations. The business organisations in this sector are collaborating with various
organisations to increase the market area. Events are organised in public areas in collaboration
with the tour operators. This way the audience covered is multiplied in numbers at minimal costs
and finances.
Short Movies and Graphical Representation
Tour operators have also developed an alternative to traditional brochures by developing short
movies and graphical representation. Short movies are presented in the cinema halls and theatres
in between the intermissions(Kavaratzis, 2017). This alternative enables to graphical and visually
represents the destinations which enable to increase the appeal of the location and alters the
consumer buying decisions.
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P 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 a luxury tour
package.
The tour operator industry is provided by various channels of distribution in order to sell the
holiday and tour packages developed. This contemporary industry has developed several
channels of distributions either direct or indirect. The channels of distribution are represented as
below:
Methods of Distribution
The industry distributes the packages and programs through direct channels by directly selling
the products and services to the consumers. Another mode of distribution is indirect sales by
involving intermediaries and retailers in order to reach the consumers of the target market (Björk
and Kauppinen-Räisänen, 2017). The various distribution methods applied in the current
scenarios are discussed as below:
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Direct Sell: The method of direct sales is executed by directly selling the products and services
developed by the tour operators to the consumers. Direct sells involve tour operators contacting
the consumers and executing the sales without any intermediary or interlinked person. Direct
sales create greater profits and revenues for the sellers.
Agencies: Another method to distribute the holiday for different tour operator is executing sales
through agencies and ancillary associations. Agencies are mass distributors that provide with an
increased number of consumers as per the requirements of the tour operators(Xu and Gursoy,
2015). These agents sell the tour packages and programs to the consumers by adding up some
certain amount of commission for each sale processed.
Call Centres: The tourism industry has also developed cell centres as a mode to sell and
distribute the holiday packages. The call centres are centres that contact the consumers for tour
operators through mailing lists and phone calls. The centres inform and educate the consumers of
various tour packages and programs. This enables the tour operators to contact the consumers
and serve with required services and tour operations.
Internet: Developments in information and internet technology has taken the world by storm.
Tour operator industry is deploying the resources of the internet and social media in order to sell
and distribute the tour packages and holidays(Evans, 2015). The tour operators have developed
websites and web pages for their organisations. The consumers visit these websites and pages to
purchase the developed holiday packages.
Telephone: The most traditional and old age method to sell the holiday package used by
different tour operators includes interacting with the consumers through telephone calls. The tour
operators contact the consumers and educate them about the various packages and programs.
Telephones are made to the previous consumers and potential consumers identified by the tour
operators.
Recommendations
Each type of tour operator requires for different platforms and mediums to sell and distribute the
holiday tour packages and programs developed. For a luxury tour package and program social
media and internet are identified as the most suitable and effective mode of distribution. As
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luxury tour packages involve various services and facilities that are required by the elite class of
the market. Since social media and internet is popular in this segment of the market, it is
recommended as a most effective medium for distribution.
Conclusion
The report has provided with information and knowledge in the various concepts and attributes
of tour operations through brochures traditional and modern approaches. The report has
conversed on the details over designing and developing the brochures. It has also developed
recommendations for identifying social media as an effective mode of distribution for luxury
tour and holidays.
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Task 4
Executive Summary
The tour operator industry requires developing and executing various tactical and strategic
decisions in order to survive the competitive market. The report will provide an understanding of
various decisions undertaken by the different tour operator.
Introduction
Tactical and strategic decisions include forming decisions over pricing, managerial, and
operational functions of the business. The report will provide information and detail about the
various decisions executed.
P 4.1 Evaluate the strategic decisions made by different types of the tour operator.
The strategic decision refers to developing policies and procedures that are strategized and are
according to the requirements and specifications of the tour operators. The various strategic
decisions undertaken are described as below:
Managerial Decision: The tour operators are indulged in various strategic decisions related to
management of the business. The tour operates have developed effective managerial strategies
that provide with an increased level of effective services to the consumers.
Operational Decisions: The operational decisions deal with daily functioning and operations of
the business activities and services(Charter and Tischner, 2017).The tour operator industry has
observed the development of packages as per the requirements of consumers. The new product
and service development are identified as strategic decisions.
Pricing Decisions: Another type of strategic decision developed by the tour operator includes
the pricing and financing policies for the business activities and services. The tour operator has
developed special discounts and offers, coupons and vouchers etc. to compete in a strategic
manner.
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P 4.2 Compare the tactical decisions that could be taken by a selected tour operator in
different situations.
Several tactical decisions are undertaken by different types of tour operators which provide with
market advantage and opportunities to captivate an increased market area for the business
organisations. The various tactical decisions undertaken are discussed as below:
STP Analysis: Segmentation, Targeting and Positioning analysis is one of the tactical decision
undertaken by the business organisations. Segmentation enables to segregate the different types
of consumers. This creates opportunities to identify the target market for the business
organisation and develop strategies according to the requirements.
Pricing policies: The organisation also undertakes pricing policies to establish differential
pricing policies. The pricing policies are developed according to the competition level in the
market. Special discounts and offers are made available to the users in order to increase the
consumer base and expand the market for the organisations(Lai and Hichcock, 2015).
Market Decisions: This tactical decision depicts marketing and promoting the business services
and operations. The market decision enables to create opportunities for spreading the information
about the programs and tour to the target market with the application online and social media
marketing. It also includes for advertising and marketing the business services and operations.
Demand Forecasting: This decision relates to forecasting the demand for tour operations and
activities. The demand forecasting creates possibilities for analysing the demand and developing
the services as per the requirements of the tourists and the consumers(Clark, 2015). Demand
forecasting enables to predict the demands and form the tour packages adequately.
Conclusion
The report has discussed towards strategic and tactical decisions developed by tour operators to
execute effective business operations and activities.
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Conclusion
The report has provided with a greater description for tour operator industry and the various
functions undertaken in this sector. It has been analysed by the above discussions and studies of
reports that tour operator industry is growing on a rapid rate. This industry has observed
significant growth and development in the recent times. The report has identified alternatives to
traditional brochures, development of various strategic and tactical decisions etc. The report has
also identified various stages and levels involved in certain educational tours and holidays.
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