Sustainable Tourism Business Plan

This assignment requires students to create a comprehensive business plan for a sustainable tour operation. Drawing from the provided readings on sustainable tourism (Maher, 2017), disaster relief routing (Luis et al., 2012; Naji-Azimi et al., 2012), and operations management in tourism (Moutinho, 2011; Wu, 2012), students should propose innovative approaches to tour operation, marketing, and distribution channels that prioritize sustainability and responsible tourism practices. The business plan should include a detailed analysis of the target market, competitive environment, operational strategies, financial projections, and marketing plans.

TOUR OPERATIONS
MANAGEMENT

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 The impacts of recent and current trends on tour operational industry.................................1
TASK 2............................................................................................................................................3
2.1 The timescales and stages involved in developing holidays plan.........................................3
2.2 Suitability of various approach of contracting for various elements of the holiday.............4
2.3 Measurement of holiday cost................................................................................................5
TASK 3............................................................................................................................................6
3.1 &3.2.......................................................................................................................................6
Covered in Brochure...................................................................................................................6
3.3 Suitability of various tools of distribution............................................................................7
TASK 4............................................................................................................................................8
4.1 Strategic decisions made by various kinds of tour operators................................................8
4.2 Compare the tactical judgements .........................................................................................8
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10
.......................................................................................................................................................12

INTRODUCTION
Tour operation identify as an effective procedure in which different travel and tourism
sectors is going to plan standardised quality of tour packages (Tour Operations Management,
2014). It will includes all facilities which are required as well as necessary for travellers while
visiting various destination. However, manager of travel industry is trying to give their advise or
prepare attractive brochures to advertise their itineraries, tour packages, products and services to
clients. This type of industry is growing and succeeding at quickly with the contend of advanced
technology in transportation or other essential facilities (Barratt and et. al., 2011). It mainly
includes five sectors which are tourism lodgings, beverage & food, transportation, retail and
other additional sectors.
This report is based on Thomson which is travel and tourism organisation in United
Kingdom. This sector provides different to tourist who are interested in visiting this place in
happily. Main purpose of this report which assist the tour manager in T&T sector in researching
the changeable things which have direct and negative impact on the business capability. This
assignment includes the various stages and timescales of holiday package development. It will
also shown modern and new promotional techniques and compare between the modern and
traditional tool of advertisement. Along with this, it also focused on management approach of
business entity while planning impressive and effective packages for their clients by following
actual figures and facts. Apart from this. Tour operator have to make tactical and strategic
judgement during trip which is also discussed in this study.
TASK 1
1.1 The impacts of recent and current trends on tour operational industry
Due to world war II, there are various things which took turn and has changed or
modified industrial revolution because of that travel and tourism sector is bing highlighted point
for countries. As per the investigation, it has been determined that travelling sector is growing
very fast because of growth in clients demand and need (Cook and et. al., 2014). Thus, due to
this, different number of industries are converting in travelling sector in regards to acquire more
advantages by fulfilling demands and requirements of large number of visitors. Thomson is a big
service provide companies about tour packages, facilities and other necessary services to their
potentials and target clients effectively. One of the main aims of this company is to enlarge their
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business operations and activities in international and national level factly. This sector has large
number of the financial factors without investing more amount in this industry. In 2006,
contribution of tourism sector is $ 170 billion to United Kingdom, France economy and USA.
Each and every business organisation tries to attract huge number of persons of other nations as
to encourage their social culture and maximise flow of international currency. This development
and variation in sector came after the actual trends which started to get favourable. There are
different recent and actual trends which have influenced the T&T industry (Dietz, 2011). All
these are determined under this:
Globalisation: At global level, it has to be led as a part of society. This is also known as a
procedure which encouraged human interaction as well as travel in all around the world. With
nations integrating their own economies with world economy, the person occurrence also got
raised. It was identify as a phase which assign companies to visit all around the universe freely.
Security and Safety: In this, globalisation is one of the important and essential part
because is led to maximise growth and development in travelling sector, due to this, security and
safety of the people is automatically improved. In today business environment, there are huge
number of vital challenges or problems in head-on the legal authorities to give an effective
atmospheres to visitors which is sound & safe.
Diversity: Now the day, world is very much diverse, so counties around in all over the
economic and have different resources and populations than before. It will attract the large
number of travellers and tourists to various place as they need experience regarding latest trends,
culture and spend their qualitative time happily.
Technology: It is identify as a vital part which modified whole tourism sector effectively.
Technological variations in the transportation and hospitality industry that has to led various
opportunities or possibilities which can be employed by the huge stakeholders of company
(Evans and et. al., 2012). Apart from this, modern and advancement communication tool have
verified the entire economy in an effective or efficient manner.
Price value: Travel and tourism sector has been capable to enhance the value of holiday
package and facilities which are given. In this ratio of price value which has been maximised
related to the joint activity of whole the industry forces.
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Demographic changes: It has been witnessed that world is under going massive changes
in demographic. In this population in main countries and cities is acquiring more alert regarding
to travel or visit which means they are very much likely to occurrence of destination.
TASK 2
2.1 The timescales and stages involved in developing holidays plan
There are different number of phases which are needed to be adopted as to plan a perfect
South African trip. In this Thomson is preparing or organising to make a holiday tour in the
natural destination which have a different heritage attractions (Grant and et. al., 2017). South
Africa is very attractive locations which completes entire criteria as directed by the company
management. This country has different variety of destination which highly attracts visitors from
worldwide. Such as Victoria Alfred river front, Table Mountain, Robben island and Kruger
National park etc.
There are certain stages of creating holiday plans for the clients who are interested to visit
all this places are as follows:
Collecting information: It is a prime stage which is very important for the tour operator in order
to collect all information about clients taste and preference in an effective manner. Manger of the
travel industry is able to collect necessary data and message as per the needs of holiday trip. The
information is gathered as to ignore entire plans on the ways of limited knowledge and
assumptions. It is defines as incomplete output of package which is not capable to fulfil legal
needs and clients requirements. The contends which has been assigned that will includes all
evidence about tourist destination, services providers, legal authorities, transportation facilities
and guides.
Packaging cost evaluation: After entire investigation, data and information are collected in a
systematic manner. In this manager of the Thomson has to evaluate the trip cost and value which
would obtained by the business organisation as to give holiday package to the clients. Due to
this, managers has to capture at the various kind of clients requirements as to access accurate
value of holiday package (Guo and He, 2012). It will support the representative in order to
explaining trip to various types of consumers.
Negotiating and arrangement with services provides: Main objectives and motives of T&T
sector is to give effective trip package to their clients in an attractive way. In this they give
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different services like transportation, leisure time, accommodation, sight-seeing and other
beneficial facilities to their travellers. Due to this, Thomson will have to determine different
service givers in mentioned destination who will give the better and time-to-time facilities to the
visitors.
Completing lawful requirements and needs: In this phase, lawful requirement and needs
automatically completed in an effective manner. Each and every place or country has their own
legislation and rules which have to known as well as completed by the business entity as to
check tourism facility to clients smoothly.
Promotion and advertisement strategies: It is very essential and vital face of the business
success and development (Hoyos and et. al., 2015). With the help of communication channels
such as advertisement and promotions, tour operator can easily promote their products and
services to customers. It is best stage of developing an effective tour plan, due to this, manger
requires a promotional scheme as to see that the holiday package is encouraged and clients
understand regarding it. In order to advertise their products and services, Thomson can follow
various ways like, television, online advertisement, and other social media tools.
In regards to known the timescales of entire phase which are identified below, in this
Gantt Chart is essential tool because it will give correct information:
Activities 1 to 7
Day
8 to 14
Day
15 to
21 Day
22 to
28 Day
29 to
35Day
36 to
42 Day
43 to
49 Day
50 to
56 Day
Collecting Information
Packaging Cost
Evaluation
Negotiating and
arrangement with
services provides
Completing lawful
requirements and needs
Promotion and
advertisement strategies
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2.2 Suitability of various approach of contracting for various elements of the holiday
There are different number of factors which are managed and handled in planing of trip.
These are identify as bus services, tour and hotel guide, flight ticket of for family as well as
individual (Kerzner, 2013). There are huge kinds of contract and agreement but due to this
lawful statement have to be complete as per requirement of clients and environmental nature.
Negotiation also complete with the service givers and suppliers in effective or efficient manner.
There are various contracts which are determine under this in detailed form:
Fixed Contract: This type of contract basically a mutual agreement between two or more than
two parties who comes under legal deed. One of the main objectives of this statement is to
generating more profits in the off-peak of travelling. It has been complete according to the
volume capability (Khairat and Maher, 2017). In this agreement, both parties are utilise more
capacity in an essential manner. But, Thomson have to lay on finical problem due to less
customers.
Sale only contract: This type of agreement have been complete at the off season period, so in
this business organisation mainly followed the niche marketing because with the use of this tool,
company selling and promoting their services or products to a specialized part of a marketplace.
These kind of statement have more costly for travel and tourism industry by advertising their
commodities.
So both are vital part of the contract which is analysis by Thomson effectively. In this
they have to analysis their disadvantages and advantages systematically. Both aggrievement are
best, but business organisation find much better contract which assist in making maximum
profits or revenues. It will also support the company to survive in competitive marketplace
(Lenahan, 2011). Then planning and designing for chosen approach have to be completed
effectively. In order to making several innovation and creativity in that programs and decision
which help business to earn more profits. Then implemented and formulated at the first level
which is decided below, it should be completed in the impressive way.
2.3 Measurement of holiday cost
Thomson has to plane a holiday trip for the family and individuals for South Africa. So in
thy measure total cost of the package which have to shown under this:
Cost Calculation Amount
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Cost and value of room 1*5*10 €60
Cost of bad room 1*5*6 €30
Total variable cost 1*9*10 €90
1€ =.9£
Variable cost in £ 60*.9 £73
Cost of Transportation
facilities
£400
Cost and price of guide
services
£250
Total tour cost £650
Profit margin ratio 20% £780
Entire sales price of
tour(Discounted)
£780
The cost for the family holiday are as follows:
Cost Calculation Amount
Cost of room 5*5*10 €250
Cost of Bad room 5*4*5 €100
Total variable cost €250
1€ =.9£
Variable cost in £ 250*.9 £225
Cost of Transportation
facilities
£2500
Cost and price of guide service £900
Entire cost of tour £1125
Profit margin ratio 20% £1350
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Total price of tour £2475
Both tables has define the measurement of the selling cost. There are mainly two types of
costs such as fixed and valuable. In this fixed cost in not changeable and variable cost is
changeable. This table also shown two measurement is complete above prime is individual and
second is family cost (Luis and et. al., 2012). Family package includes only four members, in
this cost of them mainly evaluate as a part of variable price which are analysis in euro and
exchanged in pound. Travelling cost which has been denoted as a part of bus service that is
higher due to long spacing. Margin cost of all facilities which has be measured as 20%. So all
these are shown as per member cost is approx £ 619.
TASK 3
3.1 &3.2
Covered in Brochure
3.3 Suitability of various tools of distribution
There are different options present which will assist in producing the services and
products to business manager (Direct and Indirect Marketing Methods and Distribution
Channels, 2015). Different facilities are selected by Thomson which are determine under this:
Direct Sale: It is one of the important and beneficial part of the business success and
development. It will refer to selling entire facilities in direct way without the assist of
intermediary such as online and mail order, monitoring the presentations and organising visits of
offers, due to this, price structure also help company to selling their services and products to
buyers in direct way (Martinez and et. al., 2011). Through accurate comment and evaluation
from visitors will assist the business entity in modifying marketing atmospheres accordingly.
Hiring Agents: It is known as a people who understand regarding the destination of
visiting so this person is called as agent. They are capable to takes agreements from both parties
such as companies and its travellers. Sometime effective and direct transmission between both
parties will does not take particular place. Along with this, Thomson will give entire services to
their customers in an easy manner.
Partner: It is also refers as two or more than two personas with non competing
enterprise. In this tour manager can have accurate concern with popular destination, bus
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operators and hotels of visiting or travelling that will assist the both parties in acquiring accurate
facilities.
Online sales services: It is known as selling service which is follows by the business
manger in order to offer holiday trip. In this different aspects are includes such as places,
booking of tickets and hotels to visit which assist the Thomson in acquiring advance reservation
for the facility to be given (Moutinho, 2011). There are also different services are beneficial for
the consumers such as discount by booking and other essential services.
Opaque Distribution: It is identify as a process of selling services which considers entire
advantages that gives to the minimum pricing services given by the business sellers. Real
marketer of the facilities are does not understand but the clients are valued, so it is an essential
and famous part of distribution of holiday trip.
Thomson is a travel and tourism industry, in this they required different tools and
techniques but they follow direct sale. With the use of this aspects, business organisation can
increase their sales, hire different number of the agents, and gather different information about
tour packages and place. These services needs effective strategy of marketing on the basis of
giving advantages to the organisation and its customers. There are main two types of services
which are adopted by companies such as offline and online methods.
TASK 4
4.1 Strategic decisions made by various kinds of tour operators
Strategic decisions are defined as long term decisions that are made by the top
management of the firm. These decisions influence the whole direction of the firm. These are
complex in nature and deals with various organisational activities (Naji-Azimi and et. al., 2012).
These decisions assists in developing goods and services according to the needs and wants of
customers. These strategic decisions are as follows:
Pricing strategy: In order to sell products and services, different pricing strategies are
used by the firms. Prices are set by an organisation in order to maximize profitability of the
company (Wu, 2012). Pricing strategy is used to prevent existing marketplace from new entrants,
gain market share or get into in new market. Pricing decision of the firm influence decision of
customers whether to purchase a product or not. Tour operators generally offer low price,
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discounts etc. in order to attract large number of customers towards the organisation. It also help
customers in getting packages that are required by them as per their needs.
Segmentation: It is defined as a process of dividing market or customers into
homogeneous groups. Some common characteristics are considered while segmenting market
into sub segments. These characteristics includes similar lifestyles, shared needs, same
demographic profiles, common interests etc. The main aim of segmentation is to determine most
profitable or high yield segments (Robinson and et. al., 2011). The customers are segmented by
tour operators on the basis of age, income, religious beliefs, behaviour and some other factors.
Targeting: In this process, a group of people is targeted who will become the customers
of the company. Different services are offered by tour operators to its users. They targeted every
group of customer from children to adult and are of all classes such as upper class, middle class
and lower class. For flight services, they select upper class people. For bus and train services,
they target middle and lower class customers. Every kind of services are provided by tour
operator according to the need of consumer.
Positioning: It creates an additional advantages for the customers. For instance, in
flights, people are divided into two classes, i.e., business and economy class. High class family
will administer with business class seat and middle class with economy seat. Air tickets are
different for both the classes.
Promotional strategy: By the use of promotional strategies, company can easily promote
its product and services in the market (Ronen and et. al., 2012). Effective promotional strategies
assist the company in communicating the values and benefits of its services in proper way. Every
tour operator use promotional strategy to promote its services at different places.
Competitive strategy: This strategy helps the company in gaining competitive advantage
from the market. These strategies plays vital role when firm is competitive and customers are
administered with almost same products. Competitive strategy is devised after evaluating
strengths, weaknesses, opportunities and threats of the firm. Four types of competitive strategies
can be devised which are as follows:
 Differentiation
 Cost leadership
 Cost focus
 Differentiation focus
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One of these strategies are adopted by tour operator in order to gain competitive advantage over
competitors.
4.2 Compare the tactical judgements
Tactical decision: It is refers at entire judgements that supports travel and tourism
industry in order to select effective techniques. This assist the company to gain profitability and
achieve long term goals and objectives (Scherrer and et. al., 2011). Tactical judgements is taken
by manager will support them in order to create day to day operations and functions of business.
 Short term policies are being developed by the tour operators which aids them to modify
and make strategic decisions for the development of products and services. There are
various number of customers for which different kind of policies are being made by
Thomson regarding location choosing, adoption of various prices and many more. There
are even other firms which develop the same kind of products and package tour as per the
actual needs and wants of the customer.
 There are various types of extra facilities which are being provided by the tour operators
like car hiring, facility for parking, hotels arrangements and many more so that more
customer can be attracted towards their packages (Tigu and Calaretu, 2013).
 There are various other strategies which are being adopted by tour operators like they
communicate with the customers by calling on their phone number, e-mailing, fax and
others ways by which they can directly sell their packages and other services and even
after taking feedbacks of the customer they maintain the relations with them so that
customer loyalty can be gained and thus profitability can be enhanced.
 There are some additional features which are being provided by the tour operators like
providing a tourist guide so that customers can get full information about the places they
are visiting (Wang, 2012).
 Some of the tourist operators promote themselves by advertising about their packages and
give customers various options regarding packages so that they can choose as per their
budget and thus can avail maximum number of benefits.
CONCLUSION
As per the above mentioned report, it can be concluded that tour operation management
is very essential and important part of the business success. Company has to design a tour plan
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for their clients who are interested to visit South Africa. There are different tools and techniques
are present which is follows by the company in regards to attract different number of buyers.
Various kinds of contract which also help the service provider to give better and effective
services to their clients. Business organisation also apply different distribution channel such as
direct selling, websites, and other useful tools which help them to promote their products and
services in an effective manner. In this business decide to offer family and individual tour, in this
cost of these are also calculated in an effective manner. Different destination which are attractive
for the visitors so profitability of the business entity is automatically increased.
REFERENCES
Books and Journals
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Hoyos, M. C., Morales, R. S. and Akhavan-Tabatabaei, R., 2015. OR models with stochastic
components in disaster operations management: A literature survey. Computers &
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Kerzner, H., 2013. Project management: a systems approach to planning, scheduling, and
controlling. John Wiley & Sons.
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Khairat, G. and Maher, A., 2017. Integrating sustainability into tour operator business: An
innovative approach in sustainable tourism. ARA: Revista de Investigación en Turismo.
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Online
Tour Operations Management. 2014. [Online]. Available Through: <http://somo.co.ke/bachelor-
of-travel-and-tour-operations-management-at-moi-university-sm2-493.html> .
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