Tour Operations Management Case Study

Explore the effects of current trends on tour operators, stages in holiday development, brochure planning, strategic decisions, and tactical choices. Understand the impact of technology, globalization, and customer satisfaction in the tourism industry.

Tour Operations Management
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Table of Content
Introduction................................................................................................................................3
Task 1.........................................................................................................................................4
1.1 Analyze the effects of current and recent trends and developments on the tour operators
industry.......................................................................................................................................4
Task 2.........................................................................................................................................7
2.1 Assess the stages and timescales involved in developing holidays.....................................7
2.2 Evaluate the suitability of different methods of contracting for different components of
the holiday and different types of tour operator.........................................................................8
2.3 Calculate the selling price of a holiday from given information below...............................9
Task 3.......................................................................................................................................11
3.1 Evaluate the planning decisions taken for the design of a selected brochure....................11
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...................................13
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.13
Task 4.......................................................................................................................................15
4.1 Evaluate the strategic decisions made by different types of tour operator........................15
4.2 Compare the tactical decisions that could be taken by a selected tour operator in different
situations..................................................................................................................................16
Conclusion................................................................................................................................17
References................................................................................................................................18
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Introduction
In the present scenario, the tour and travel industry is becoming one of the most successful
industries in the world. It has been seen that the travel and tour industry contributes a major
amount of revenue to the entire growth and development of the destinations. The tour and
travel industry also facilitates the development of the political and economic necessities of
the nation. It also helps in improving the infrastructure of the place.
In this assignment, the case study of the tour operator company, “Trailfinders Ltd” has been
taken into account. This assignment will focus on the effects of the present and latest drifts
and growth on the tour operator industry. In addition, the timescales and stages that are
involved in developing holidays and vacations will be taken into consideration. Furthermore,
the appropriateness of the diverse methods of contracting for dissimilar workings of the
holiday and the various types of tour operator will be evaluated. The project also focuses on
the different options to a traditional brochure for different types of tour operators. Besides,
the tactical and strategic that is taken by the different tour operators has also been talked
about.
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Task 1
1.1 Analyze the effects of current and recent trends and developments on the tour
operators industry.
The tour operator plays a major role in the present world in initialising suitable tour packages
for the customers. The tourism industry has grown extremely in today’s world as the tour
operators are becoming specialists in offering full tour packages to the customers. It has been
witnessed that the tourism industry is an ever growing industry as the tour operators keeps on
including and comprising different and innovative changes as per the requirements and
demands of the travellers. The choices and preferences of the travellers keeps on changing
with time and for that reason the tour operators need to adopt the current and recent trends.
This will help them to draw attention of a huge amount of visitors from different places.
However, the tourism industry is incessantly integrating and modernizing different trends on
a standard base (Filby et al, 2015). In this section, the consequences of these trends on the
growth and development of the tourism industry have been discussed.
Growth in the Non-Refundable Profits
The growth and development of any country depends on the economy of that place. The non-
refundable profit is that fraction of the profit that is put aside after the functioning of the
capital. The standard of living of the populace of a particular country is directly proportional
to the increase in the non-refundable profit or income. The tourism industry opens up several
employment options for the people that in turn results in the increase in the revenue of the
country (Robinson et al, 2016).
Expansion in Technology
The incorporation of the new technologies in the tourism industry can increase the demand
and recognition among the travellers of the country. Digitalizing in the industry can help in
increasing the quality and reach of the tour operator. Latest technologies such as online
transactions, online bookings, website facilities, etc can be used by the tour operators in order
to expand its reach in the market. It also makes the entire process much faster and cost
effective.
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Globalization
With the concoct of globalization the boundaries between the different countries have been
swiped out. The tour operators have made proper use of globalisation in order to expand their
business globally (Page, 2014). This has further helped the tourism industry to contribute
more to the economy of the country.
Personalized Service
The tour operators try to provide the customers with the best possible facilities. They also
design customised and personalised tour packages for the tourists as per their desire and
requirements. Such services help the operators to attract more customers as the customers can
now choose and customise their tour packages as per their convenience.
Marketing
Marketing is one of the major tools for growth and development in any industry. Marketing
helps in making the customers aware of the products and services that are being provided by
the company. The tour operator company can also make excellent use of marketing in order
to develop their contacts in the market and also boost the demand of their services (Felice et
al, 2014.). They can use all the different methods of marketing such as, providing discount
coupons and vouchers, etc in order to increase their popularity and attract customers.
Customer Contentment
Customer satisfaction is very essential for any business to run successfully. The tour operator
must make sure that they regularly examine the wants and desires of the customers and
facilitate further improvements or changes as per their requirements. For gaining recognition
in a particular industry it is very important for the company to fulfil all the requirements of
their customers. By doing so they will be able to retain their customers and also find new
customers. It is the responsibility of the tour operator to provide the customers with the
facilities that they ask for in the best possible manner (Redjem and Marcon, 2016).
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Competition in the Market
Increased competition in the market makes available the provision of assessment between the
different companies in the industry and to choose the most appropriate alternative. The
augmented competition in the market shows the way to an augment in employment and
creates a balance flanked by the supply and demand (Burgin and Hardiman, 2015).
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The tour operator plays a major role in
the present world in initialising suitable
tour packages for the customers. The
tourism industry has grown extremely in
today’s world as the tour operators are
becoming specialists in offering full tour
packages to the customers.
It has been witnessed that the tourism
industry is an ever growing industry as
the tour operators keeps on including and
comprising different and innovative
changes as per the requirements and
demands of the travellers.
Growth in the Non-Refundable Profits
The growth and development of any country depends
on the economy of that place. The non-refundable profit
is that fraction of the profit that is put aside after the
functioning of the capital.
Expansion in Technology
The incorporation of the new technologies in the
tourism industry can increase the demand and
recognition among the travellers of the country.
Digitalizing in the industry can help in increasing the
quality and reach of the tour operator.
Marketing
Marketing is one of the major tools for growth and development in any
industry. Marketing helps in making the customers aware of the
products and services that are being provided by the company.
The tour operator company can also make excellent use of marketing
in order to develop their contacts in the market and also boost the
demand of their services.
Globalization
With the concoct of globalization the boundaries
between the different countries have been swiped out.
The tour operators have made proper use of
globalisation in order to expand their business
globally. This has further helped the tourism industry
to contribute more to the economy of the country.
Personalized Service
The tour operators try to provide the
customers with the best possible facilities.
They also design customised and
personalised tour packages for the tourists
as per their desire and requirements.
Such services help the operators to attract
more customers as the customers can now
choose and customise their tour packages
as per their convenience.
Customer Contentment
Customer satisfaction is very essential for any business to run
successfully. The tour operator must make sure that they regularly
examine the wants and desires of the customers and facilitate
further improvements or changes as per their requirements.
Customer Contentment
Customer satisfaction is very essential for any business to run
successfully. The tour operator must make sure that they regularly
examine the wants and desires of the customers and facilitate further
improvements or changes as per their requirements.
For gaining recognition in a particular industry it is very important for
the company to fulfil all the requirements of their customers.
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Task 2
2.1 Assess the stages and timescales involved in developing holidays
The process of developing a holiday includes a lot of factors that needs to be considered in
order to increase the proficiency and assurance of the tour. The various stages that are
involved in developing holidays are mentioned below:
Research of the Destination
Once the destination is selected the next task of the tourist destination is to research about the
destination that they have selected. In this case, the tour operator is planning to travel to
Brussels and Brugge in the month of July. Here the tour operator has considered the factors
such as the climatic conditions, social, economic, physical and political factors which doing
the research for the destination (Fang, et al, 2016). The tour operator has put major emphasis
on researching about the accommodation and daily meals for the students who are from
London. British hotels and restaurants that the students will be comfortable with are taken
into account. Also, the tourist destinations that will cater the educational purpose across
Brussels and Brugge have been evaluated. This stage requires a time span of around 12 days.
Tour development
Here the entire tour program is summarized including the time period and all the tourist spots
that will be covered by the tour package in Brussels and Brugge. At this stage, an
epigrammatic of the entire tour will be prepared. All the necessary needs of the British
students will be included in the tour plan (Xiang et al, 2015). This stage requires a time span
of around 12 days.
Negotiation with suppliers
In this stage, it is required to negotiate and bargain with all the different suppliers that are
related to the summer tour. It is essential for both the tour operator and the suppliers to
negotiate and come down to a settlement so as to avoid any interruption during the tour. This
stage requires a time span of around 10 days
Cost of holiday package
In this stage the cost of the entire tour is calculated keeping in mind all the factors and
requirements of the students. The factors include transportation charges, daily meal,
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accommodation and other charges. Here the tour operator, “Trailfinders” shall calculate the
entire cost of the tour that is for 5 nights. The entire budgeting strategy is based on the current
market. This stage requires a time span of around 8 days
Administrative staff
In this stage, the tour operator focuses on assigning jobs to the different employees of the
company so that the entire tour is completed effortlessly without any difficulties (Han and
Hyun, 2015). They will also make sure that the students are safe during the entire trip and
that all their requirements are satisfied. This stage requires a time span of almost 30 days
Production of brochure
The production of brochure is necessary for the tour operator in order to provide all the
information to the customers and also to advertise their tour package (Becker, 2016). The
brochure contains all the required information regarding the tour package, together with the
details of accommodation, daily meal, total tour cost, destinations that will be visited, travel
expense and every other detail related to the tour package to Brussels and Brugge will be
included in the brochure. This stage requires a time span of almost 15 days.
Feedback
The constant reviewing and monitoring of the feedbacks provided by all the 42 student from
London travelling to Brussels and Brugge will help the tour operator to function in a more
better way in future (Hingtgen et al, 2015.). This stage requires a time span of almost 15
days.
Therefore, from the above conversation it can be stated that the above stages and timescale
shall be considered by Trailfinders in order to have a have a successful tour package for the
42 students who are going to visit Brussels and Brugge for 5 nights.
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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 components of the tour package are jotted down below:
Transportation
The tour operator must make a fixed contract with the local transport service of Brussels and
Brugge and come down to a mutual agreement for the purpose of tourist attraction visit
during the 5 nights stay. All the factors such as fuel and toll charges and the driver’s expense
must be considered while deciding the payment.
Accommodation and Meals
The accommodation for all the 42 students must be provided by the tour operator. They must
consider all the factors including the payment on the basis of per night stay as the students
will be travelling to various places all over Brussels and Brugge. The daily meal facility must
be fixed with the local food suppliers as per the taste of the British students. As food will be
required at the different tourist spots that the students will visit, the tour operator must make
sure that the food suppliers prove good quality food to the students on time (Hingtgen et al,
2015).
Tourist guide
A fixed amount will be paid to the tourist guide as he will be travelling with the students to
all the destinations in Brussels and Brugge. The payment must be fixed beforehand based on
the destinations that will be visited as the guide may not agree to move around with the
students if the payment is not made (Bredvold and Skålén, 2016).
2.3 Calculate the selling price of a holiday from given information below.
No. of students = 42
Room rent per student = £ 96
Transportation charges = £ 11,200
Tourist guide = £ 945
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Mark up = 33%
In Euros In Pound Sub Total
Students 42 - -
Room rent per
student
€
96.00
£ 85.71 £3857.14
Transportation
charges
- £ 11,200.00 £ 11,200.00
Tourist guide - £ 945.00 £ 945.00
Exchange rate (€1.12
per £1)
0.892857143
Total cost £ 16,002.14
Selling price of the entire tour package = £ 21,282.85
Total price/student = £ 472.95
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Task 3
3.1 Evaluate the planning decisions taken for the design of a selected brochure
In order to develop a high quality holiday package, it is important to have a good planning
that must be undertaken focussing on the targeted customers. This is a key element for
developing the tour and travel business involving proper analysis of desired destination and
different research activities and understanding the requirements and needs of the customers.
The planning helps in the actual designing of the holiday package taking into consideration
the expectations of the customers with affordable pricing. Some of the vital activities of
decision-making and planning of a holiday package involves:
Precise evaluation of specific destination- Here, different tourist destinations of Belgium
have been selected with respect to the popularity among the customers, climatic conditions,
expenditure factor and natural beauty of the locations (Morosan, 2015).
Research-The activities related to the research involves several investigations of the facilities
which are available for the customers on a selected destination. From a research of a
particular destination, a good planning activity can be properly initiated.
Developing a tour- For conducting a holiday package, a particular tour service provider must
be selected. In the ongoing study, Kuoni package travel directive has been chosen as it offers
different types of promotions, involves many other benefits through advertisements, posters
and brochures (Woo, et al., 2015).
Negotiation-When a suitable transportation facility is required, it is important to choose the
most efficient and convenient service provider. Thus, it requires good negotiation so that it
can take at least three months by the visitors for getting a minimum knowledge about all the
facts.
Financial evaluation and Pricing-Evaluation of a tour package involves a good financial
aspect that is sufficient pricing which has to be checked initially. It can be due to the overall
cost that should be always maintained with respect to the affordability and visitors
convenience (Penman, et al., 2017).
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Marketing of holiday package- It can be done successfully either through online or offline
so that more number of customers can be made aware of several key aspects of the particular
holiday package. Marketing has to be done through depending upon the target segment
specified by advertisement media (Oppewal, et al., 2015).
Brochure for tour operator- Brochures are one of the most favourable tool for travel and
tourism industry. All these must contain the overall information related to the destination,
organization and other visited locations.
Post-tour management- Through different surveys which includes involvement of
customers once the tour is completed, a report is prepared by the post tour management. This
must be conducted in order to analyze the customer satisfaction.
It is very well-known that brochure plays an important role in figuring out the overall
planning design. It provides the basic information about the holiday package for the
customers (Lin and Kuo, 2016). In order to design a proper brochure which may provide
several vital information that is necessary to prepare, organize and implement the activities
with great care. Different planning decisions related to the present brochure are:
 Identifying the issues- Several issues related to the format, idea, target segments
must be identified at the initial stage before progressing further in the formation of a
brochure.
 Formatting the brochure- After past identifications, formatting is required. The
name of the tour operator, brief description about the destination, mode of transport
facility that will be availed and pricing, booking facilities must be formatted in a
proper manner.
 Targeting the market and budget consideration- Target market must involve the
niche segments. There must be a clear image of the section of the people that is being
targeted through a particular holiday package. Budget consideration also plays a vital
role for targeting the customers.
 Stages and time limits- Brochure designing must be completed within the given time
frame. The whole organization must initiate the process from planning and finally end
with the implementation of the planned idea that must be completed within a specific
time limited for every stage.
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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.
The tour operation assignment is constructed for different tourism agencies that are
completely based at the European Union (Kuoni). The identification of several organizations
includes marketing segments, ownerships, genesis and some particular characters within each
category. There have been different types of analysis performed on the effects of the latest
trends of the tourism industry. The study has been conducted with the aim of attracting the
attention of the visitors. Technological advancement has made the job easier to develop
several other alternatives of traditional brochures. So, after designing a beneficial brochure,
most of the customers become desirable to attain such offerings.
If the design is been done through online, then it becomes more successful in reaching out
large number of people and by different overpowering promotional activities. Apart from
such technique, E-brochures are also quite beneficial as it serves at lower cost and are easier
to access rather than the previous ones. It depends completely upon the tour operator whether
it will provide the customers with E-brochure or the hard copy ones (Chandiok and Sharma,
2017). The audio-visual brochures provide much more clarity and selected designs of the
proposed destinations.
Further it can be stated that all the visual medium brochures can be promoted with the help of
social media that include use of Twitter, Instagram, Facebook, etc. All these types of
brochures can be easily uploaded on YouTube at an affordable price which serves as the
fastest worldwide promotion. Although the audio-video brochure involves various tools and
techniques of online marketing to highlight the elements such as beautiful graphics,
animation, sounds which is concerned with targeted destinations. Taking into consideration
the various aspects that has been recommended by two tour operators in the combination of
all those above mentioned tools in order to obtain more benefits through these two operators.
Customers can easily refer this as an integrated brochure.
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.
There is a huge scope of methods with Kuoni for the customers to avail that mainly aims to
sell the holiday packages for large groups especially for tourist groups or students going for
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an educational trip. These several methods involve online trading facilities, direct sales, sales
and promotion through telephones that are call centers. Direct selling involves use of online
media to interact with customer and sell the product or service directly (Peppard and Ward,
2016). There are tour operators who use the distribution method in order to gain large number
of customer at low cost.
To be more specific, proper use of tools must be used for significant distribution of the
holiday packages. For some particular promotional activities, different agencies are chartered.
These are basically done in order to maximize the sales rate of the holiday packages.
Considering the benefits that are highly associated with the several distribution methods helps
the tour operators such as Kouni to adopt both the online as well as the offline distribution
method for the marketing department in reaching out maximum number of people.
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Task 4
4.1 Evaluate the strategic decisions made by different types of tour operator.
There are various types of strategic decisions that can be framed by the tour operators. It may
involve important decisions related to the design and development of a proper brochure
which includes choosing of the best distribution method, fixation of the total cost for the
holiday package, etc. Strategic decisions are often valued to have a great importance in an
organization. The entire tour and travel industry involves several other elements that help to
run the business in a proper manner (Schlegelmilch, 2016). At every instance, persistent
decision making is highly critical in order to run a business successfully.
Some of the basic principles of strategic decision making related to the travel and tourism
industry of the two mentioned tour operators namely Trailfinders and Kouni are explained
below:
Targeting, segmenting and positioning- It has been noticed that Trialfinders have always
tried to identify the target customers in order to provide the best tour package available in that
present moment. In fact, packages are developed analyzing the present situation in
accordance to the expectations of the customers which needs to be considered while making
the strategies. It is seen that Kouni always make strategies within the pre-defined budget.
However, it is one of the most vital decision that a tour operators needs to take in order to
form the significant decision with highest importance (Armstrong, et al., 2015).
Strategy of discount pricing- To attract a large number of customers, it is essential to make
strategies of discount pricing. It has been done mainly to avail the complete tour package.
The discount amount is calculated with respect to the fixed cost of a particular tour package
which is another important factor to be of huge concern for most of the reputed tour operator
such as Trailfinders and Kouni. Normally, high rate of discounts are generally offered in the
seasonal packages. Thus, it is important to implement a profitable pricing strategy keeping in
mind the earning process and the spending intent of the profitable pricing strategy that is
made for the targeted consumers (Mitra, 2016).
Competitive strategy of pricing- It includes the prices or costs that are charged by large
number of competitors, including Trailfinders, particularly for the same tour package. Price
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fixation is important as it draws the attention of more customers and ultimately instigates
from buying holiday packages. It also helps to develop the loyalty among the customers even
though the tourism market is too competitive. After analyzing the present condition, Kouni
takes perfect decisions in order to accept the results of a competitive environment
Seasonal aspects- It has to be kept in mind before implementing a proper tour package that
seasonal aspects are the key element for both the Trailfinders as well as Kouni. In the tourism
industry, the peak and the off seasons are always said to affect the requirements and demands
of the holiday packages. Customers are said to have attain an average rate of discounts in the
peak seasons for the desired destinations. Whereas, in the off seasons the discount rates
gradually increases due to less demand which is prominent from the surveys. It has been
always noticed that the selection of destination and structure of pricing has always got
affected by the seasonal changes (Trenberth, et al., 2014).
Promotional strategies- Promotional strategies basically involve selection of the most
suitable method of promotion in order to publicize the holiday package. For Kouni, it has
been seen that the tour operator always try to use the number of tools within a specific
budget. The entire business productivity of Trailfinders is completely relied on promotional
strategic decisions. It is mainly due to the different tour operators involved in implementing
such promotional tools and techniques in order to generate a good profit margin (Kim, et al.,
2016).
4.2 Compare the tactical decisions that could be taken by a selected tour operator in
different situations.
Decisions that are developed to run a current business are referred to as the tactical decisions.
It engages discussions with different service suppliers in any field, accommodation,
arrangements of food and several other amenities. Originally arranging the inventory of
service supplier has to be devised. This is the initial and leading thing that needs to be
preserved. There are a large amount of service suppliers as of dissimilar fields for different
activities. There is another essential customer understanding that needs to be measured for
strategic choice making procedure. All are significant substances of anxiety that requires
verification. Therefore, it is better to investigate the occurrence of the customers. Later, the
labours ought to be completed to decide this matter that the customers have faced. The
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consumers come back to avail other tour packages offered by any operator, only once their
previous issues are resolved.
Conclusion
From this study, it is understood that the tourism sector is an important source of country’s
economy as there has been significant initiative taken by the UK government in order to help
the tourism industry. The study has also highlighted the objective of an educational tour that
has been planned in Brussels and Brugge, Belgium. The design of the tour along with the
planning of strategies must be made taking care of the time limit and the budget which should
not get crossed at any circumstances (Redjem and Marcon, 2016). It is also noticeable that
the approaches taken by the tour operators has definitely affected in the growth of the
industry and its entire prospects. Holiday package planning and development is often
considered to be the needs of the targeted customer segment. Different strategies framed by
the tour operators mainly aim to attract a large group of people and at the same time to
enhance the overall growth for the said organizations.
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