Tour Operations Management: Strategic and Tactical Decision Analysis

This report delves into tour operations management, focusing on Trailfinders Ltd. It analyzes the effects of current trends on the tour operator industry, including the growth of non-refundable profits, expansion in technology, globalization, personalized service, marketing strategies, and the importance of customer contentment in a competitive market. The report assesses the stages and timescales involved in developing holidays, from destination research and tour development to supplier negotiations and cost calculation. It also evaluates different methods of contracting for holiday components and alternatives to traditional brochures, recommending suitable distribution methods. Furthermore, the report compares strategic and tactical decisions made by different types of tour operators, providing a comprehensive overview of the tour operations landscape. Desklib offers similar solved assignments for students.

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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