Analysis of Tour Operation Industry and Business Strategies

The given report provides an in-depth analysis of the tour operation industry, highlighting its vast scope and significance. It emphasizes the importance of implementing better tools and tactics to sustain business operations. The report also discusses the role of brochures in gaining attention and mentions the need for tactical strategies to maintain a good presence in the market.

TOUR
OPERATIONS
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Evaluate effects of current and recent trends and developments on the tour operations
industry........................................................................................................................................1
TASK 2............................................................................................................................................1
2.1 Assess the stages and timescales involved in developing holidays......................................1
2.2 Suitability of different methods of contracting for different components of the holiday and
different types of tour operator...................................................................................................1
2.3 Calculation of the selling price of a holiday.........................................................................1
TASK 3............................................................................................................................................1
3.1 Planning decisions taken for the design of a selected brochure............................................1
3.2 Suitability of alternatives to a traditional brochure for different types of tour operator.......3
3.3 Suitability of different methods of distribution used to sell a holiday for different types of
tour operator................................................................................................................................3
TASK 4............................................................................................................................................4
4.2 Tactical decisions that could be taken by a selected tour operator in different situations....5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
Tour management is concerned with tourism industry which provides several services to
tourist such as, hospitality services, holiday plans or packages, etc. This sector is beneficial in
sustaining and developing nation. Many tourists and travellers visits several destinations by
investing in tour agency. This helps tourism sectors in increasing their sales and profitability
margins. This assignment is prepared in context of LCB tours which is a British tourist travel
industry. The company serves many services to its consumers at affordable rates. Along with
this, some currents and recent trends in development of tourism industry is discussed under this
report. The design and texture of brochure's which company to popularize its business is also
evaluated in this project (Ţigu and Călăreţu, 2013). In addition to this, there are also some stages
and timescales which helps company in developing their holiday plans.
TASK 1
1.1 Evaluate effects of current and recent trends and developments on the tour operations
industry
( Covered in leaflet )
TASK 2
2.1 Assess the stages and timescales involved in developing holidays
( Covered in PPT )
2.2 Suitability of different methods of contracting for different components of the holiday and
different types of tour operator
( Covered in PPT)
2.3 Calculation of the selling price of a holiday
( Covered in PPT)
TASK 3
3.1 Planning decisions taken for the design of a selected brochure
Marketing unit of LCB travel agency conducts operations which involves planning and
decisions to design a brochure. Factors that needs to be given consideration while preparing a
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brochure is its cost, budget, targeted population, style, format, printing specification and many
more. To prepare an attractive brochure LCB consider brochure of two other tour operator
traveling agency. These agencies are Insight vacations and Travelsphere. Information regarding
their luxury holiday brochure is discussed below:
Cost: This aspect of a brochure depends upon its format, style, design, wastage and
number of pages to be printed. Insight vacations is a big traveling tour operator and acquired a
good position in market. Their facilities and services are available anywhere in the world. Insight
vacations provide facilities worldwide. Their main aim is to satisfy the demands and needs of
clients as this will help them in improving their share margins and revenue. For this they mention
in detail about their services in their brochure. This is the reason their brochure is costly than the
brochure of Travelsphere as number of printed page in more in Insigh tvacation's brochure.
Deciding the format: Brochure used by Insight vacation is in the format of a Booklet in
which all the services and facilities are mentioned in detail where as the brochure of
Travelsphere includes only necessary information and three fold in format.
Target market and budget: In this a particular section of society is targeted and all the
facilities and services are provided in accordance with their budget. Quality of Insight vacation's
brochure is high as it is specially designed to target high class people (Jennings and Stadler,
2015). Quality of Travelsphere brochure is fine but not as good as Insight group. Differences in
budget of these two operations can be seen from the fact that brochure provided by Insight
involves even small aspects that must be known to a client. But case of Travelsphere is not same.
Determining print specification: Specifications while printing the brochure is
impressive of Insight vacations than travelsphere. Management in Insight vacation not only have
objective to acknowledge clients regarding their service but also to gain their attention which
will help them to expand their presence in market. But the brochure of Travelsphere is to just
inform clients about their facilities.
It can be seen from above mentioned comparisons that the brochure of
Travelsphere faces several shortcomings which they have to overcome in order to improve their
revenues and market image. If LCB will consider these above mentioned aspects while creating
their brochure, it will help them in expanding their market presence in a better way. Usually, a
good brochure includes images, compete information and stylish fonts. If these shortcoming will
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take place due to budget difference is resolved then brochure of Insight and Travelsphere can
compete with each other.
3.2 Suitability of alternatives to a traditional brochure for different types of tour operator
With changing time advancement in every field is expected whether it is traveling and
tourism or some other. Brochures that are traditionally used by traveling agencies has several
limitations that are needed to be resolved. Alternatives that can be used by LCB are mentioned
below:
E-brochure: These are basically the online reports which are delivered to audience by
the means of internet. This helps the companies to cover large market segment in minimum cost
and shorter span of time. These type of brochures are used by Travelsphere to acknowledge
clients outside UK regarding their services and facilities.
Android application: With advancement in technology, many software applications are
also developed which helps the people in deciding best traveling package in accordance with
their choice and budget (Hijaz, 2015). Sky-scanner is an application which helps in booking the
packages. Many tour operators like Travelsphere join hands with developers of these
applications so that their packages can be purchased by customers. In this way the packages are
promoted worldwide.
Social media: It is the cheapest and fastest method which can be used by large tour
operators like Insight vacation to advertise about their facilities and services in a limited time.
Most of the people around globe uses internet so it is easier for Insight to inform clients about
their services. Companies like Insight vacations provides their packages through out the world
and updating people about their services through brochures is not possible. This alternative is
cheap and more efficient way to expand their business operations in accordance with current
trends.
3.3 Suitability of different methods of distribution used to sell a holiday for different types of
tour operator
To sustain business in traveling and tourism sector, it is vital for the companies to expand
their distribution methods. These distribution methods helps the companies to sale their holiday
and vacation packages to more number of people. Suitable distribution methods that can be used
by LCB are through governmental sites, direct distribution and two level distribution (HE and
CHEN, 2012). These methods have certain disadvantages and advantages which are needed to be
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acknowledged by tour operators before reaching at any decision. Suitability of various methods
with different operators are mentioned beneath:
Direct distribution: In this method the tour operators sell their packages and services
directly to their clients without involving any third party. This is considered as the best option for
small tour operators like Travelsphere which possess a direct relationship with their clients and
customers in marketplace. In this method, there are less chances of misunderstanding as
customers directly talk with the managers of agency if any issue take place.
Through social media: This kind of distribution method is best suited for the big tour
operators which are successful in sustaining their presence inside and outside UK. As they have
to deal with clients throughout the globe, this is the best alternative they have. Here selling of
services and packages is carried out with the help of social websites which are used by millions
of people in different nations (Gibson, 2012). Large traveling companies like Insight vacation
uses this medium of providing packages as people are sure their money is safe and refundable if
they cancel their trip due to any reason.
Government websites: This is the safest method which is available for customers to buy
tour and traveling packages. Public organizations gain several benefits due to these websites. As
people are sure about the security of their money due to government influence, they feel more
safe while purchasing these packages. Usually, the process to buy packages by this medium is
long and hectic but due to surety of no fraud and cheating, people purchase them. This surety is
because of the influence of government authorities while transacting for such organizations.
TASK 4
4.1 Strategic decisions made by different types of tour operator
To manage their business by efficient means LCB tour operators formulate effective
strategies which help them to deal with changing situations. By these strategies they can manae
business through various locations (Deresky, 2017). For this, firm carry out analysis which help
them to determine the needs, demands and requirements of their customers and strategies are
then formulated in respect with that. Strategic decisions which are important to consider by a
traveling company are specified below:
Pricing strategies: Costing of the packages which are provided by LCB must be in
respect with the capability of their targeted section. If prices of packages are high, people of UK
will not buy them and company may have to face several losses due to this. Affordable and
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reasonable packages are more preferred by people so company needs to implement their
strategies in according to that.
Surcharge policy: While deciding these policies LCB needs to consider some facts.
These facts are if no hidden cost must be present within the packages. It is the responsibility of
LCB to provide accurate and complete information to their customers so that no confusion will
take place at the time of payment.
Positioning and image branding: To create a better image and sustain their position in
the minds of people, LCB needs to formulate strategies which help them to expand their
business. This can only be possible if the demands and needs of clients are satisfied within
affordable pricing (Collins, Munday and Roberts, 2012).
Distribution decisions: To increase their sales it is must for LCB to use more methods of
distribution rather than depending on a single one.
4.2 Tactical decisions that could be taken by a selected tour operator in different situations
Within the hospitality industry, every company formulates some tactical strategies and
decisions to run their business operations in an appropriate way. This will helps them in
enhancing their profit margins and attaining their predetermined objectives.
Tactical responses: In this, company needs to give proper consideration to the response
which is given by customers regarding their products and services. In according to that they can
improve their services and maintain their position.
Tactical pricing: Maintaining affordable and reasonable cost for packages is must for
LCB to attract wide number of clients. Reasonable pricing allures customers towards the
packages which helps LCB to gain competitive advantage.
Tactical marketing: In this, decisions are taken to promote and advertise the services
which are offered by a company. Proper monitoring is carried out to check if all the plans are
executed in the decided way or not. Under this, LCB can adopt some changes in their tactics
which will help them in improving their profit margins and revenue (Bratton and Gold, 2017).
CONCLUSION
In this report, it is analyzed that tour operation industry is a vast sector which includes
several aspects related with traveling and tours. It is important for these companies to implement
better tools and tactics to sustain their business. Brochures are very important to gain attention of
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people and they also include all the necessary aspects. To maintain business efficiently tactical
strategies and their implementation is needed. If all these aspects are given consideration
company can maintain a good presence in market.
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REFERENCES
Books & Journals
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Journal of Travel Research. 51(5). pp.577-590.
Deresky, H., 2017. International management: Managing across borders and cultures. Pearson
Education India.
Gibson, P., 2012. Cruise operations management: Hospitality perspectives. Routledge.
Han, W., Zhang, G., Xiao, J., Benard, P. and Chahine, R., 2014. Demonstrations and marketing
strategies of hydrogen fuel cell vehicles in China. international journal of hydrogen
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HE, M. and CHEN, X. Y., 2012. Status-quo, Problems and Emerging Mechanism of China's
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Kelly, J., Male, S. and Graham, D., 2014. Value management of construction projects. John
Wiley & Sons.
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Newsome, D., Moore, S. A. and Dowling, R. K., 2012. Natural area tourism: Ecology, impacts
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Pitoura, E. and Samaras, G., 2012. Data management for mobile computing (Vol. 10). Springer
Science & Business Media.
Qiang, H. U., 2013. Research on The Preliminary Design of 3D Virtual Tour Based on The
VRML Technology. Journal of Convergence Information Technology (JCIT) Vol, 8.
Ţigu, G. and Călăreţu, B., 2013. Supply chain management performance in tourism. Continental
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Yeoman, I., et. al., 2012. Festival and events management. Routledge.
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