Thomas Cook's Strategic and Tactical Decisions

The report discusses the importance of trends, stages, and methods for providing quality services to customers in the travel and tourism industry. It highlights the use of budget planning, selling prices, brochures, social media, online, and direct sales channels to market tour packages. The assignment also covers strategic and tactical decisions made by Thomas Cook to attract a large number of customers and increase market share.

Tour Operations
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Current and recent trends and its effect on tour operators industry......................................3
TASK 2............................................................................................................................................4
2.1 Stages and timescales for developing industry.....................................................................4
2.2 Different methods of tour packages......................................................................................5
2.3 Calculation of selling prices of Holiday................................................................................6
TASK 3............................................................................................................................................7
3.1 Planning decision for designing brochure.............................................................................7
3.2 Suitability of alternatives of a traditional brochure for various type of tour operators.........8
3.3 Different methods of distribution to sell a holiday and its suitability for different type of
tour operators..............................................................................................................................9
TASK 4............................................................................................................................................9
4.1 Strategic decisions made by different type of tour operator.................................................9
4.2 Tactical decisions that could be taken by tour operators in different situations.................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Tourism is travelling for pleasure also consider practice and theory of touring,
accommodating, business of attracting, entertaining tourists and entity of operating tours. It can
be international or within traveller's country. Tour operator is combination of travel and tour
components for creating holiday package. They produce brochure and advertise for promoting
products, itineraries and holidays. It is defined as company, organisation, firm which purchase
travel element from different suppliers and combine them into package tours with adding value
and selling them to public at their own tag price. It is combination of tour and travel element for
creating holiday (Allahyari, Salari and Vigo, 2015). The given assignment is based on Thomas
Cook which was incorporated in 1841 at United Kingdom. It provide travel and tourism facility
to customers. Here will discuss about current and recent trend of tour operations. The stage and
timescale, different methods and selling price of holiday packages has been discussed. There are
brochure for planning decision along with traditional types and methods of distribution for
selling packages. The strategic and tactical decisions for tour operators are included in project.
TASK 1
1.1 Current and recent trends and its effect on tour operators industry
The travel and tourism is fast growing sector in market. Thomas Cook is also playing an
important role for providing benefits to customers and fulfil their needs and demand. It is
growing at faster speed along with services and facilities. It is the first tour and travel company.
The major current and recent trends which effect tour operators industry are as follows:
Current Trends
Flexible booking operations- With the help of new technology and application easy
booking of hotels, buses and flight ticket can be done. It saves time and cost to consumers. It also
helps to know more about other hotels and their prices just with single click. It has created
positive impact on customers. All relevant information can be collected and proper decision can
be made.
Tour packages- With the increase in demand and need of customers tour operators
industry has introduced various tour packages. This packages is divided seasonal and off season.
At the time of off season, it offers various discounts, coupons and supplementary. Similarly, at

peak time prices are high with some benefits. Thomas cook has also brought packages at
affordable prices for clients (B. DiPietro, Cao and Partlow, 2013).
Marketing in travel- It is important in travel and tourism sector for creating awareness in
market. Thomas cook also use marketing tool for its products and services to customers. It makes
clear clarification to the user about company and its services. Thus it is used by all services
industry to aware its consumers about everything and achieving result effectively and efficiently.
Price Value- This is also important factor to perspective guest. Nowadays people are
ready to pay more but for services and product (Bazargan, 2016). Thomas cook can create price
value if it has core five elements such as guest room design, physical property, interpersonal,
functional & food beverages services.
Recent trends
From the past few years, there is trends towards developing of eco-friendly hotels and
increment in service facility. It helps in attracting large number of consumer. Every person at
least in a year make plan for holiday with their family and friends so to fulfils their needs and
demands recent changes have been seen.

This sector has grown from 2015 and 2016 at speed. It is very larger sector which
contributes 8.3% to GDP of nation. It provides service to all over world.
Recent trends took places at Thomas Cook because of Brexit and PEST which is
described below:
Political- Because of rise in taxes, interest rate, Thomas Cook has faced problem for
booking and travelling. As market declines because of political factors.
Economic- In recent times, travel and tour operators faced problems many challenges but
with increase in economic people started planning which increased value and profits.
Social- Economy of UK is strongest among all where people use disposable income for
travelling purpose. As rise in income of visitors, they prefer to make plan for abroad which is
double from past year.
Illustration 1: Market Growth of Thomas Cook

Technology- With rise in technology people become independent and make plans
according to desire. Thomas Cook also provide online services to their customer for better
results.
Thomas Cook has its various group all over world but mainly owns number of operators
and airlines in United Kingdom, Scandinavia, Germany and Balearics.
Latest emerging popular destination at UK are Bath, Edinburgh, Wonderful Windsor etc.
TASK 2
2.1 Stages and timescales for developing industry
During holiday people go to travelling with family, friends in various countries. They
make proper planning before begin of trip. The formulation of tour packages have different
stages along with various elements which make tour effective. The stages and timescale for
developing industry are:
Step 1- Relevant and detailed data and planning and preparation of holiday tour
Proper investigation and decisions in terms of price, places. All the necessary
requirement are checked through website, rating and feedback.
Time taken- It task 2 to 4 months for collecting information about facilities offering
(Buckley, and et. al., 2014).
Step 2- Negotiation
The negotiation is done in terms of prices and services by two parties with mutual
consent.
Time taken- It requires 2 months for contracting with parties which provide benefits to
both.
Step 3- Development of tour
After choosing destination, development of tour for countries take place.
Time taken- It is important stage which requires 3 months.
Step 4- Price determination
The pricing strategy is analysed and compared. Thomas cook develop different price
strategy with various packages.
Time taken- It need 2 months to complete right price.

Step 5- Marketing and promotion of tour packages
After finalisation price the marketing and promotion channel is choose which can be
banners, brochure and online services.
Time taken- It take only 1 month to complete.
Step 6- After tour management
In this stage feedback is collected from customer and experience is measured and if
improvement required then it is done. Thomas cook can collect opinion and review from
consumers.
Time taken- It takes approx 1 month for collecting information about experience and
sending questionnaire to customer.
The itinerary plan of 7 days:
Days Itinerary Plan
Day 1 6 am- reached hotel
10am- 2pm – visit Historic Sanctuary of Machu Pichhu in Peru heritage
3 pm- 5pm- Rest
6pm- onwards party at hotel
Day 2 10am -3 pm – visit City of Sucre in Bolivia heritage
4pm- 6pm- visit park
Day 3 11am- 4pm – visit El Puma Ecological Park wildlife
5pm- 6pm- photo session
7pm- onwards dinner
Day 4 10am – 4pm- visit Rio de Janerio beach near our hotel
5pm- break
6pm – dinner at sea beach hotel
Day 5 10 am- 5pm – visited local places such as park, museum, church.
7pm- dinner
Day 6 10am- 3pm – rafting
4pm-6pm- break

7pm- dinner at Hilton hotel
Day 7 10am- reached airport
11am- flight for our place
6pm- reached home
2.2 Different methods of tour packages
Thomas cook is the first and oldest travel industry in UK. The main objective of this is to
provide quality products and services with reasonable and affordable prices to its customers. It
offer better tour packages to clients with quality in order to satisfy need and want. As per
scenario mentioned in report the tour operator manager of Thomas Cook need to plan new breed
packages for customer consisting all relevant services (De Sausmarez, 2013). The suitability of
various techniques of contracting for different elements related with holiday package are as
follows:
Fixed Contracts- Fixed contract is used for increasing profit and sell during off season. It
assist in managing and risk controlling which has directly impact on cost effectiveness and
business efficiency.
Allocation Contract- Such contracts are associated with allocation of services and
destinations for visitors. It helps customer to get all relevant information relating to travelling in
effective way. It avoid difficulties for individual because of providing all information.
Ad-hoc contract- it includes planning and arrangement of cost which depends ion
activities which can be daily and hourly basis. Thomas Cook should enter in this contract for
discounting rate for travelling to other countries.
2.3 Calculation of selling prices of Holiday
As given scenario in mentioned assignment, customer make a tour plan of travelling from
United kingdom to South America for visiting different places. For this context, consumers need
to make budget plan for 5 days 4 night at South America considering all factors. Thomas cook
deals in tourism and travel and has created good image in South America too. Tour operator
manager should first analyses need and demand of customer and try best to provide quality and
effective products and services with discounts and affordable prices. In order to know about
actual cost incurred for travelling prior amount is calculated (Guo and He, 2012). This company

uses customer based pricing strategy. The customer calculate cost of tour by adding all activities
cost during journey which is as follows:
Expenses Amount (£)
Promotion 100
Postage and phone 120
Direct mail 350
Promotional evening
Program 250
Wine and Cheese 112
Advertising 250
Others 110
Total expenses 1292
add: Mark-up of 20% 258.4
Total Net cost per person 1550.4
TASK 3
3.1 Planning decision for designing brochure
It is the most important planning for designing brochure. The brochure should contains
all relevant information for user. It is necessary document required by individual for taking tour
packages and decisions are made as per need and requirement. The brochure contains
information such as name of tour firm, destination information, prices, durations of tour process,
mode of transportation, type of food, extra charges, documents required to carry while travelling.
A brochure is type of informative paper document which can be folded into leaflet,
template and pamphlet (Jones and Robinson, 2012). It is promotional documents used by
company for introducing, products, services and inform consumers. In case of Thomas Cook, it
need to make effective and attractive design brochure for attracting large number of visitors and
helps in decision making. There are various methods which can be used by Thomas Cook to get
attention of many visitors. The major elements considered by Thomas Cook during process of
designing a brochure are as follows:

Format of brochure- It is paper type and informative document including relevant
information of products and services about company which is offered to its customers. It is
divided into section and sub section in which data classified in parts. It helps in attracting large
number of visitors with attractive and impressive designing and formatting. Thus, Thomas Cook
need to select and design unique and different brochure for its consumers to attract them.
Selection of target market- After designing of format the next step is selection of target
market. Thomas Cook can select target market by doing proper research work which aware about
deciding final price of goods and services (Luis, Dolinskaya and Smilowitz, 2012). From
research work it is found that adult are target customer who prefer to visit frequently so
accordingly plan should be made and budget is made.
Time required to complete a specific stage- In order to serve large number of customers,
it is important to design attractive brochure along with specified time and period. This helps
Thomas Cook to save time and cost for explaining to customers. It also help in better formulation
and impressive.
3.2 Suitability of alternatives of a traditional brochure for various type of tour operators
With the increase in new technology and inventions old methods have been changed. The
firm started adopting latest and new techniques for making brochure including websites, online
mode. Most of the company, firm use such modes for marketing their goods and services. Here,
Thomas Cook sold package of tour to their target market by demonstrating all features. Thomas
cook adopted this new brochures methods as old traditional failed to attract customers and
demand was not created. The invention and introduction of technology has created an
opportunity to design effective and attractive brochures (Medlik, 2016). The advantage of this
latest technology overcome barriers of traditional brochure and make effective and impressive.
The number of alternatives available for traditional brochure for tour operators are as follows:
E- brochures- The internet helps Thomas Cook to develop, formulate impressive and
attractive brochure. It also assist in saving cost and time. This provide all relevant information
required by clients and helps in decision making. It is most easiest and convenient way of
attracting people.
Visual- The visual includes images for attracting customer. Thomas Cook use visual
concept for brochure and published in newspaper and magazine to influence consumers. It is eye
catchy attention and impacting concept or element.

Social media- There are various social media available for brochure for promotion
purpose. Thomas Cook also use Facebook, Instagram, twitter for attracting large customer. As in
today's scenario most of people use social media so it easily catch attention of people.
Websites- There are various sites available for tourist destination including relevant
information. All the tour and travel company have their own website for providing services and
product knowledge. Thomas Cook also having website for travel, tour and destination package.
Use of such above technology helps in formulating electronic brochure which is more
effective and attractive as compared to old one. The enterprise take help from audio and visual
for getting attention of customers (Naji-Azimi and et. al., 2012).
Apart from above, there are some other traditional methods of communication which are
described below:
TV- It is most effective mode of communication for customer for tour planning. It has
disadvantage because nowadays people don't prefer to use television for getting information.
Direct Mail- Through help of direct mail information is sent to user and accordingly plan
is made. But it carry disadvantage as many people don't check their mails on regular basis which
might create problem for both company and individual to miss important information.
3.3 Different methods of distribution to sell a holiday and its suitability for different type of tour
operators
The main aim of Thomas Cook is to sell tour packages to customers. In order to achieve
firm have to select effective and right channels of distribution. There are various methods used
by selected firm for selling services to final consumer which includes direct sales or help from
mediators. The firm need to consider various tools for selling packages as one cannot helps in
achieving and benefits for firm (Ţigu and Călăreţu, 2013). The enterprise need to focus on that
method which influence and attract them. The following are major methods used by Thomas
Cook for selling tour packages such as:
Internet- This is the most easiest and most popular method of distribution. It is most
effective way to sell package of tour. The main advantage of this method is to sell and increase
company's profit. Also, IT department post in media, website for tourist destination in order to
attract large number of customers.
Direct sale- This is used by Thomas Cook for selling tour packages. In this tool, the
employees directly sales to its clients or customers tour packages. It also helps in creating and

maintaining good relation with consumer which retain client for longer period of time. Through
this Thomas Cook can increase profit and market share.
Telephone- Under this the company management call to their selected number of
customers to aware them about products and services and influencing them to buy it. It helps in
knowing and generating interest of customers. Thomas Cook call loyal and old customer at
affordable price at various destination. It also create loyalty towards company and its product
and services.
These methods helps in influencing and achieving goal and objective of firm which
attract large number of consumers.
Social media contain all relevant information required for tour packages which attract and
influence large number of customers at time. Thus, Thomas Cook uses social media for their
customer which helps in sustainability and growth.
TASK 4
4.1 Strategic decisions made by different type of tour operator
The meaning of strategic is long term direction for organisation to achieve competitive
advantage within changing environment need (Wang, 2012). The decision depends upon
strategic and tactics goal after considering every factors. Thomas Cook and Kuoni take various
decisions related with marketing tools, price, package duration, positioning of brand. It is
significant to choose supplier which provide goods and service to target market. Also firm need
to take decision regarding media, communication and brochure design. The various strategic
decisions made by different type of tour operator are as follows:
Strategy for competitive pricing- In this company need to achieve competitive advantage
by unique price set for tour by comparing with other tour or competitors (Wu, 2016). Thus,
Thomas Cook need to set or decide prices after analysing its rivalry or competitor.
Strategy for discount pricing- This strategy helps in attracting large number of
customers. It assist in capturing market share and gain competitive advantage. Thomas Cook can
follow this strategy and retain customers for longer period of time by satisfying their customer
needs and demand.
STP (Segmentation, Targeting and Positioning)- Thomas Cook need to segment market
on basis of interest, age, purchase power. This helps in choosing target market and provide

support for positioning products in effective way to attract large number of customers. The STP
also firm to achieve final goal and objective.
Strategy for promotion- Thomas Cook can use various promotion tools and strategy for
products and goods. The firm need to choose right method to attract and influence large number
of customers. It uses exclusive strategy for promotion and also print media, social media have
been used to serve large number of clients.
Tour packages seasonal scenario- There are many customer who prefer to visit place
during winter breaks, vacations. There is change in prices during such period. Thomas Cook
need to make such plan so that large customer influence from it and decide for travelling.
4.2 Tactical decisions that could be taken by tour operators in different situations
In order to achieve overall strategy, tactical decision making is required. It denotes day to
day implementation for achieving final goal of an organisation. The tactical is medium term
decision which assist strategic decisions. It play big role for growth and success of business. It
ensure effective execution of operations and providing benefits to company. There are various
decision made by travel and tourism industry for achieving their goals and objectives. All
decision should be made in favour of customers, visitors and others (Allahyari, Salari and Vigo,
2015).
It means providing quality services along with effective accommodation to guest. This
can be solve by tie up with different stakeholders for tactical decision. Thomas Cook need to
take help for personnel advisor for making decision making. This assist manager in taking better
strategic decisions which increase position of firm along with attracting large number of visitors.
The firm need to conduct meeting with service providers which built collaborations support and
satisfy needs of customers. Thomas Cook have to set right price for tour package.
There are various techniques, tools and methods which tour operators choose for
providing value for money. It create positive note for overall experience. Thomas Cook also
helps in customisation of products and service as per needs and demand of customer. The
research plays an important role in finding issues and problems in travel and tour industry and
correcting them accordingly (B. DiPietro, Cao and Partlow, 2013).
Thus, in this way Thomas Cook satisfy customer need and want and increase profit of
firm. It is important to make tactical decision in order to achieve effective execution of
operations.

CONCLUSION
From this report it can be concluded that trends affect development of travel and tourism
industry. There are stages and different methods for providing quality services to customers.
Before planning the budget is planned which is calculated with help of selling price. The client,
customer make decision for marketing of tour package with help of brochure. Further
alternatives methods for traditional brochure to market and create awareness among consumers.
From social media, online, direct sales channel distribution the selling is done. Thomas Cook
make strategic and tactical decisions for tour operators in order to attract large number of
customer and increase market share.
REFERENCES
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Evans, N., Stonehouse, G. and Campbell, D., 2012. Strategic management for travel and
tourism. Taylor & Francis.

Guo, X. and He, L., 2012. Tourism supply-chain coordination: The cooperation between tourism
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Jones, P. and Robinson, P., 2012. Operations management. Oxford University Press.
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research and practice. Socio-economic planning sciences. 46(1). pp.88-97.
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pp.596-605.
Ţigu, G. and Călăreţu, B., 2013. Supply chain management performance in tourism. Continental
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Online
Tour Operations Management. 2017. [Online]. Available through:
<http://sk.sagepub.com/books/the-management-of-tourism/n4.xml>.

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