Evaluation of Tour Operator's Holiday Package

The assignment requires evaluating the tour operator's holiday package by assessing the stages and time-scales involved in its development. It also involves calculating the selling price of the holiday package and evaluating the suitability of different methods and components used. The report concludes with a focus on planning decisions for designing a selected brochure.

Tour Operations
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Effects Of Current And Recent Trends And Developments On Tour Industry...............3
TASK 2............................................................................................................................................5
2.1 Stages And Time-scales Involved In Developing Holidays.............................................5
2.2 Evaluation Of Suitability Of Different Methods..............................................................6
2.3 Calculation Of Selling Price Of Holiday..........................................................................7
TASK 3............................................................................................................................................8
3.1 Evaluation of Planning Decision......................................................................................8
3.2 Suitability of alternatives to a traditional brochure for different types of tour operators10
3.3 Suitability of Different methods of Distribution............................................................12
TASK 4..........................................................................................................................................13
4.1 Evaluation of Strategic Decisions..................................................................................13
4.2 Comparison of Tactical Decisions Taken By Trail finders Ltd.....................................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Travel and Tourism is such a sector, that provides leisure and comfortability to the
customers. It is such a sector, that provides a complete hospitality to the customer, by helping
them in creation and distribution of holiday package. Here, the organisation is Trailfinders Ltd.
This is a travel organisation in United Kingdom. The organisation is having almost 31 travel
centres in UK. The assignment will focus on analysing the effects of current trends and
development in the tour industry. Along with this, the assignment also emphasises on the
research to be conducted in respect of tour industry. The project report further, focus on the
assessment of stages and time-scales that are involved in developing of holiday package and also
on the evaluation of suitability of different methods of contract and components of a particular
holiday package in respect of the different types of the tour operator.
TASK 1
1.1 Effects Of Current And Recent Trends And Developments On Tour Industry
Effects of Current and Recent Trends & Developments on Tour Industry
Outbound tour operator:They are work
with the international workers and creates
different packages which help a traveller to
travel from one country to another. The

market share of this tour operators are wide
because they operate at international level.
On the other side, the passengers are also
used this type of tour operators.
Inbound tour operator: They provide trips
within a country to those tourist who want to
visit other country and also make local
arrangements. The market share of this tour
operator are quite low as compared to
outbound but high from domestic tour
operators. It has been analysed that the
passengers are also uses this in order to enjoy
tour packages.
Domestic tour operators: This type of tour
operator are actually arranges tour packages
at local level for domestic tourist. The market
share of this tour operators are low because
they work in low or limited areas.
FF
lexible Booking Options: - Just because of
the technological advancement, it is
convenient for the people to book their
holiday package and getting the tickets done
with the help of internet and call centres of
the company with which they are taking the
package. Although, it's not easier for the
Technology: -, Technology is playing a very
crucial role in travel and tourism industry.
Scenario of the complete market in the travel
industry has changed with the entry of
technology in this field. Definition of
marketing has completely changed with the
adoption of new technology in the travel
industry. Trailfinders Ltd. has adopted such
technology which is helping them in
expanding their market share along with
having a grip on more and more customers.
Today, the tour operators in the travel
industry are offering more and more
attractive package to their customers
irrespective of domestic and international
trip. Trailfinders is offering best services to
its customers after knowing the taste and
preference of its desired customers. Digital
Revolution and the internet might have an
impact that the thinking of the tour providers
and tour organisers get changed in respect of
managing relationship with the customers.
The employees of Trailfinders are focusing
on the same issue.

customers to get the booking of tickets done,
they have to switch to various agents and
companies in order to know, who will
provide them holiday package in relatively
cheaper rates and in a quick manner (Ahmad
and Saber, 2015). But, Trailfinders Ltd. is
such an organisation, that provides its
customers the best rates in a very quick
manner and also at cheaper rates as compared
with the other travel agencies for eg. Thomas
Cook and SOTC that are offering its
customers a relatively higher rate.
ABTA: this travel agency provide guidance
to the public and also support high level of
service standard as they are also promoting
the responsible tourism at home as well as
abroad.
Association of Independent tour operators
(AITO): This association also offer full
protection to consumer holiday funds and
provide best quality of customer services and
also provide sustainable approach to travel.
federation of tour operators (FTO): This
association brings some changes as well as
improvement in some holiday packages. It
also coordinate members and mainly works
on crisis handling and health safety.
TASK 2
2.1 Stages And Time-scales Involved In Developing Holidays
Following are the stages and time-scales that are involved in the developing of
sightseeing tour of customers (students; businessman etc.):-
Time scale of developing holidays

 Market Research :- it is quite necessary for a tour operator to have proper market research
which also included external factors and without doing proper research in the respect of
taste and preference of the customers, the research is incomplete. Here, the focus is laid
on analysing and understanding the major attributes that are related with the specific
market taste of the tourists along with their destinations (Byrnes and et.al., 2016).
Trailifinders has undertaken the below steps in order to enter in the travel and tour market
segment with the motive of offering the best rates and quotations regarding holidays at
Grand Casselbergh, Brugge.
1. The organisation has identified the factors that are related with the economic;
political; social; and the climatic aspects that are affecting the package offered.
2. Identifying the major locations in the respect of having a comparative analysis of
the alternative locations.
 Planning and scheduling:- It is the second process in which proper planning and
scheduling is to be done regarding tour. After the discussion with the customer in the
respect of tour destination and everything, It depends on the customer as to where and
when he wanted to proceed and on the basis of that, the Trailfinders is able to make a
suitable package for the customers. For this reason, Trailfinder also make proper schedule
for a tour and then execute it. After finalizing with the customer regarding the package
and everything in respect of the tour destination, the Trailfinders Ltd. is able to negotiate
with the suppliers, that will going to provide the customers with the necessary things and
that will going to be helpful for the customers in this respect. The tour planner in this
case, will be working with various suppliers in the tour industry. The most important
thing here for the tour planner is to manage the lodging, flight tickets; contacting with the
transport operators i.e. car rentals and other sources in respect of sightseeing and many
other things.

 Forecasting:- in next stage, the firm has to decide the pricing of each tour packages and it
has to be at reasonable rate. The forecasting of the tour package should be proper such
that it helps to attract many customers.
 Contracting: proper contracting should be done while organize the tour such that
Trailfinders Ltd has to deal with many people such as transportation, hotels and also
provide many discount strategy in order to attract wide range of customers.
2.2 Evaluation Of Suitability Of Different Methods
The suitability of different methods in travel and tourism depends upon the various
factors that includes:- hotels; transportation and also point of attraction at that particular place.
 Allocation:- when a tour operator is planning for a tour, then they have to use allocation
contract such as this type of contract is done when the tour operator uses hotel I for room
booking (Granville Mehta and Pike, 2016).
 Ad hoc:- This contract is done for non- monetary purpose and it is done through better
collaboration in order to make a tour successful (Hartel, Constantine and Torres 2015).
 Tour operators also contract with transport company in order to make planning success.
Apart from this, they also make contract with guide who guide the tourist at destination
points. In this way, the tour operator also make bond legally in order to make planning
successful.
Different types of tour operators:
 Inbound tour operator: These type of tour operator provide trips within a country such
that they make local arrangements such as airport pickup and drop services and provide
local guides to them.
 Outbound tour operator: this type of tour operator provide multinational tourism and
they take residents of their own country to visit another country and then sell the
packages to the customers of their own country.
 Domestic Tour operator: These type of tour operator provide trips to local people
within the boundaries of a country. They also repeat the trips and also sense the demand
of local people and also suggest destination requirements.
 Direct sell tour operators:These type of tour operators sell the packages directly to their
customers through travel agents and did not pay commission to them. Thy also offer large
variety of packages to them.

2.3 Calculation Of Selling Price Of Holiday
COST COMPONENTS COST Total (Pounds)
Hotel Charges 89*50 person*5 day*0.88 19580
Luxury Coach 6949*0.88*5 day 30575.6
Attraction Charges 45.60* 50 persons 2280
Local Tour Guide 896 896
53331.6
Mark Up Price :- 53331.6+ 28%
Selling Price is:- Euro 68264.448
So, this is the total costing of services that will be given by Trailfinders Ltd. to a group of
50 students having a visit at Grand Casselbergh in Brugge, Belgium.
TASK 3
3.1 Evaluation of Planning Decision
The various planning decisions of Trail finders Ltd. that are involved in the designing of
a selected brochure are as follows: -

 Decision of Designing of brochure: - The designing is a major concern in the
development process of a brochure. It is the time when the creative activities are required
to be bring in action. In this case, concepts may turn out to be the most suitable that are
assessed and then, further actions are taken with respect to develop them in a better way
Illustration 1: Thomas Cook Brochure
Illustration 2: Trailfinders Brochure

that may include:- colour concepts; graphic style; use of keywords and technology, etc.
(Mason, 2015). The content should be simple and style will be formal. The paper used in
this case will be good quality and of A 4 size.
 Decision of Implementation Strategies: - Once, the decisions in the respect of the
designing of brochure is taken, then very next step includes the implementation of those
concepts that have been taken to implement them in the best way. Here, a detailed
strategic framework is required to be done in respect of:- who will be there to greet them;
where and in which type of hotel the tourists will go to stay after reaching at the
destination. Travel agency is required to keep a note of all such type of things and with
the help of professional programmer, the designs can be converted and uploaded
effectively on the websites. The budget should be according to the needs of middle as
well as higher income group. According to the needs of customer, the brochure should be
designed.
 Detailed Designed development:- It is such a step in which the concept is further
developed and designed with the help of implementation of the relevant details. A logo is
required to be created in a unique and with the use of attractive colours. In this case, the
various pages of the websites are assembled with the help of advance tools available in
the Photoshop and just as a sample some pages are also created on HTML. The aim of
this step is to foster the needs of the product planning and final costing (Moid and Alam,
2015). The brochure created will be proofread and then, colour will be added to it to
make it more attractive and presentable. Also, it should be very creative, that the attention
of the customers can be grabbed. After all this, a copyright of brochure should be done.

3.2 Suitability of alternatives to a traditional brochure for different types of tour operators
Brochures are of different types and the concepts of designing the brochure is challenged
by the new brochures in the industry and it has been completely changed. Brochures of the other
travel organisation like: - Thomas Cook and SOTC can prove to be somewhat helpful in the
making of brochures in this context. Trailfinders Ltd. should have magazines and some such
sources that may be used as a modern form of brochure instead of traditional brochure.
Illustration 3: Thomas Cook- Tours and Travels
(Source: - Thomas Cook, 2018)

 Brochures As Invitations: - Using a brochure as an invitation is quite common. A
brochure can be used for serving such type of purpose and the benefit that can be reaped
out of here, it is truly perfect and easy to view. Customers can see the details very easily
in a single sheet whereas, on the other hand the traditional brochures were used to be
divided in the two pages. Inviting someone by using a brochure format, is the best option
because it facilitates the maker to use more and more of information along with the
images' so as to serve the purpose in a better way (Navruz-Zoda and Ibragimov, 2015).
As compare to the old and simple brochure this format, helps in attracting customers.
 Brochure as A Presentation Package: - Trailfinders Ltd. can use brochure which will also
serves the purpose of presenting package to the customers. By making a good and
attractive presentation of package it can be presented before the customers who are
willing to go on a tour. Following such type of rule, will help Trailfinders Ltd. In
Illustration 4: TrailFinders Ltd.
(Source: - Trailfinders Ltd., 2018)

boosting up the sales. Most of the major corporations, like Thomas Cook; Travel
Network and SOTC are following such strategy for boosting up their sales.
 Brochure As A Map:- It can also prove to be the best way in attracting the customers,
with the motive of selling them the best package according to their needs. By presenting
the brochure in this format will help the customer to reach at a particular destination.
1. Brochure in Video Format:- As compare to earlier days, the recent trends for presenting
information related to the various services and packages in the tourism industry has been
changed. Nowadays, companies are developing brochures in the video format that
describes the features and components of entire tour package. It is highly attractive as
compare to traditional brochures.
Recommendations: it is recommended to the quoted firm to use Brochures As
Invitations because it is the best option because it facilitates the maker to use more and more of
information along with the images' so as to serve the purpose in a better way. Sending this
brochure online is another best way to reach a wide range of customers and also helps to increase
the sales.
3.3 Suitability of Different methods of Distribution
A tour and travel package company or a firm adopts various methods of distribution for
selling their services and travel products to the consumer with the motive of providing them ease
of comfort at the time of travelling with a luxury tour package. So, there are various methods that
can be suitable for a firm. A distribution channel is the best way that helps the customer in
getting best services from the tour package providers. So, following are the distribution channels:
 Online Travel Agencies: - These are the travel agencies that will list some activities and
will allow the users to search regarding any tour provider and also to have the bookings
through them. Thomas Cook is offering such type of facility to its consumers. The
customers can search on internet in the respect of various tour providers and can compare
the package being offered by them and also the various facilities included in the package
(Ryanand et.al., 2017).
Thomas Cook and Trailfinders Ltd. are using the Omni channel of distribution, which
includes: retail stores; websites and call centres of these famous organisations. Here, the main
motive behind using such type of distribution channel by the organisation is to set a benchmark
before the competitors in the field of offering holiday packages.

 Government Websites: - The websites that are focusing on the destination proves to be a
good channel to leverage the tour packages in the respect of those customers who want to
enjoy their holiday and spent a quality time with the friends and family members.
 Call Centers:- There are many tours and travel companies that can launch their websites
with the intention of helping the customers in respect of guiding them regarding the
package and best rates being offered by the tour operators. For tour companies like:- TUI,
direct distribution channels would be the best key to attract the customers. This type of
distribution channel in the year 2014 was improved by 68% and the major reason behind
this, was related to the way the tour organisers used to entertain and cater to the needs of
their customers.
 Internet:- The company can also use internet and social media platforms such as
Facebook to promote their package to a large no. of audience in a minimum time.
Recommendations: it is recommended to Trailfinders to use website and social media. It
can help to provide most suitable and useful information regarding tour package to potential
customers. It has been analysed that in this modern era, the company should also use online
mode of brochures and also posted them on the social websites because it helps to draw attention
of many customers towards a firm.
TASK 4
4.1 Evaluation of Strategic Decisions
There are various types of strategic decisions that are followed by different kinds of tour
operators are as follows: -
 Segmentation; Targeting And Positioning: - It is such a strategic decision in which the
tour and package providers have to do the segmentation in the respect of what type of
package that they have to tell to their consumers. Here, the package agencies are required
to offer the package before the consumer or the tourists in the respect of needs of
customers (Wu and Tse 2016). Here, the customers can be students from any school or
college; any individual going with any business motive. For Eg:- Trailfinders being one
of the largest and a renowned group in field of travel and tours is focusing on doing
market segmentation on the basis of geographical; demographical and behavioural aspect
of the customers. On this basis the companies target and make their positions in the

market. Here, in this case, the positioning strategy, used by Trailfinders is, the
organisation created a message and positioning segment for the target customers by
identifying the targeted consumer market; type of services required to be offered to the
customer. Analysing and adjusting in respect of what new services can be offered to the
customers.
 Tour Package And Seasonal Scenario:- It is the case, in which the strategic decision is
made by the Trailfinders on the basis of season in which the customer can be offered best
rates and also the tourists can be sent to such places where they can enjoy the destination
according to the weather and the climatic conditions.
 Strategy For Innovative Promotion: - Trailfinders can offer something as complimentary
and in the entire package. Along with this, some exclusive and innovative techniques in
the respect of promotion can be adopted to attract numerous customers. In comparison to
Trailfinders, Thomas Cook is offering to its customers a travel card of its own in which
there are five major currencies that are easily convertible as per the local currency of that
nation.
 Offering Discounts: - The customers can be offered discounts at time of festive season
and when there is no rush and fewer customers in the trip. The tour organisers can also
offer discounts to the customers by taking them in a group of those people who are going
at one place. Here, Trailfinders is using various premium pricing strategy for its
customers. Here, the customers are required to avail the products and services that are
being offered by Trailfinder. The management of Trailfinder is making their efforts in
increasing the sale.
4.2 Comparison of Tactical Decisions Taken By Trail finders Ltd.
The tactical decisions that are taken by Trailfinders Ltd. In different situations are as
follows: -
 Negotiation with The Service Providers: - A tour operator has to negotiate with the
various service providers in case of triggering competition. The tactical decision is taken
in the respect of transportation; lodging and boarding and also in respect of building
relationship with the service providers. (Xu and Wang2017).
 Pricing Decision: - The pricing decision making strategy used by the Trailfinders Ltd. is
very reasonable and affordable to the consumer. This tour operator after confirming and

negotiating with the service providers in respect of different services being offered by
them to tourist in situation like price wars. After getting a quotation of pricing from every
side the final quotation of entire tour package is send to the customer. At time of festive
season and when there is off season going on, discounts can also be offered to the
customer.
 Promotion Techniques: - In this case, trail finders can facilitate its customers by offering
them, fluid pricing which is same at all levels. By exercising, the tactical decisions i.e. by
giving them discounts and continuing the sales till late. By taking help of yield
management i.e. using variable pricing strategy; based on the understanding and
influencing the consumer behaviour to maximise revenue.
CONCLUSION
The project report here has focused on the analysis of effects of current and recent trends
in the tour and travel industry and the developments to be done. Further, the assignment lays its
emphasis on the assessment of the stages and the time-scales that are involved in the
development of holiday package for the tourists and calculation of selling price of the holiday
package. Along with this, it focuses on the evaluation of suitability of different methods and
different components in the holiday package and also on different types of the tour operator. The
report here concludes by focusing on the evaluation of planning decisions for designing of a
selected brochure by the tour company.

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Suitability of Different methods of Distribution. 2018. [Online]. Available Through
<https://www.rezdy.com/blog/5-distribution-channels-every-tour-operator-should-
harness/>.