(Doc) Tour Operations Management

Tour Operations
Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Effects of current trends and development on tour operations industry...........................1
TASK 2............................................................................................................................................4
2.1 Stages and timescales involved in developing holidays...................................................4
2.2 Suitability of different methods of contracting for different components ......................5
2.3 Selling price of holiday package......................................................................................6
TASK 3............................................................................................................................................7
3.1 Planning decisions taken for designing of a selected brochure........................................7
3.2 Suitability of alternatives to a traditional brochure for different kinds of tour operators.7
3.3 suitability of different methods of distribution used to sell a holiday for different types of
tour operator...........................................................................................................................8
TASK 4............................................................................................................................................8
4.1 Strategic decisions made by different kinds of tour operators.........................................8
4.2 Comparison of tactical decisions taken by selected tour operator in different situations.9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
Books and journals...............................................................................................................10

INTRODUCTION
Tour operations industry is analysed as one of the most important sectors in economy of
UK because it has achieved a phenomenal growth in last several years. Management of tour
operations is mainly associated with planning, organising and controlling of activities of tourism
service providers to attract customers and providing them leisure to travel in their favourite
tourist destinations. Present report is based on analysing recent trends and development in travel
and tourism sector as well as their effect on tour operations industry of UK. For this assessment,
Thomas Cook is taken into consideration which is an international tour operator that deals in
providing different types of travel and tourism services to people. At last, different aspects
related to development of holiday packages have been discussed in this report.
TASK 1
1.1 Effects of current trends and development on tour operations industry
Tour industry is continuously changing while following the current trends and
development. It is analysed that destinations around the UK have welcomed over 956 million
international visitors in between the year 2016 (Kang and Schuett, 2013). Moreover, the
emergence of new markets, different niche groups, digital trends and new ways of travel, types
of accommodation as well as types of travellers are main reasons behind change in this industry.
Further, there are various recent trends and developments occurred which affect the performance
of tour operations industry. Changes in industry have also affected the decision of Thomas Cook
relating to development of new services and tour packages for customers. Some major trends are
mentioned as below: Advancements of technology: Continuous development of new software and other
technology services have enabled tour operators to satisfy the requirements of customers.
They have provided customers with the facilities like online booking, development of
mobile applications, etc. that clearly provide information about tourism services of UK. Rise and fall in inflation: In relation to tour industry, increase in VAT due to rise
inflation from 17.5% to 20% has affected the prices of accommodation, tourist attractions
and other rental service. This will tend to raise the expenditure of tourists and decrease
the demand for tourism (Hudson and Thal, 2013). In this context, decision of Thomas
Cook PLC related to development of holidays is affected due to rise in inflation because

it has increased the prices of their different services which they offer to customers in tour
packages.
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 Brexit: It is considered as the major term used to determine decision of Britain to exit
from European Union. After Brexit decision, there are various trade barriers that have
been faced by travel and tourism companies. Restrictions on getting Visas for visitors
from EU countries have decreased the revenues and profitability of tour operators in
industry. Decisions of Thomas Cook related to tourism services are also affected due to
Brexit and company has made changes in their tour operations. Low cost carriers: Increase in low cost transportation service like Air flights, Cabs and
other travel facilities have also decreased the cost of travelling in the UK. This has
influenced the decision of international visitors to explore different tourist destinations of
UK. Increased environmental awareness: Mainly, visitors aim to travel in those countries
where will get an appropriate and clean environmental conditions so that it will not
affect their health and safety (Tsiotsou and Goldsmith, 2012). There are various measures
that have been taken by UK government and tour operators to provide pollution free
environment for visitors. These measures have provided them support in increasing the
number of visitors.
 Responsible tourism: It implies responsibilities which are taken by the operators,
hoteliers, government and local people for making tourism more sustainable. By
minimizing the negative economic, environment and social impacts, they have increased
the growth and development of tour operations industry in UK.
Further, there are various types of tour operators in industry such as: Inbound tour operators: It implies to tour operators which provides tour services to
people or visitors arriving in UK from other overseas nations. They mainly operate within
a chain of franchises and agents in order to attract more customers in different countries.
For example: A&T Travel and Active England tours are categorized in the form of
inbound tour operators. Domestic tour operators: They usually provide trips to the residents of a country with the
boundaries of UK and also called as residents operators. They can also repeat trips, sense
the demand of local market UK outbound: These tour operators usually provide multinational tourism. They take
residents of their own country to visit another country or continent. They sell their tour
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products or packages to customers in their own country who wish to travel to another
country.
 Specialist tour operators: They design their services for niche market which have interest
in particular geographical area or a special kind of activity. Based on geographical areas
and visitors, they handle their operations in the UK.
TASK 2
2.1 Stages and timescales involved in developing holidays
There are various important stages that have been involved in the development of
holidays which are considered by Thomas Cook PLC while creating its services for customers.
These important stages are discussed as below: Conducting Market Survey: At this stage, organisation will carry out an analysis of
market in which they operate in the UK. This aids them in understanding demand of
customers to travel to other countries and their capabilities to pay the prices. Thomas
Cook PLC also needs to analyse the inflation and tax rate for making plan and setting
prices of services. Planning and Scheduling: After this, company will make plan to include different
destinations and services in holidays like travelling, wildlife centuries, beach trips, food
and room division service, etc. Proper budget schedules for travelling will be made on the
basis of market research (Morgan, Pritchard and Pride, 2011).
 Cost Evaluation: In this, company distributes the prices required to accomplish different
activities and services for visitors to evaluate difference between actual cost and
estimated budget. It helps Thomas Cook in setting selling prices of their products or
packages.
 Market Reservation: After getting approval from customers, company will move
towards reservation of hotel and accommodation service for customers. Booking for
accommodation and travel services in hotels have been made to attract visitors from
different countries.
 Designing brochures: After setting prices and evaluation cost, brochure must be
designed by Thomas Cook to attract people or visitors from different in UK to travel in
another countries.
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 Implementation of Plan: Company will implement their tour plan by taking money
from the visitors who will visit the place. So that company can make an advance payment
to its suppliers like transportation and hotels
Activities in Days 1 2 3 4 5 6 7 8 9 10
Conducting market survey
Planning and scheduling
Making reservations
Evaluating the cost
brochures
Implementing the plan
Table 1: Timescale for developing holidays
2.2 Suitability of different methods of contracting for different components
Different method for contracting are discussed as below:
Fixed Contract- In this type of contract the hotel charges the amount for customer in
advance as all the rooms are provided to get booked in advance. It is known to be advantageous
as hotel gets paid even if room is not occupied.
Allocation- This type of contract is done between tour agencies and hotel as they used to
contract for booking certain amount of room at a price for particular time period whereas hotel
can provide other rooms at competitive price
Ad-hoc- These contract deals with the scenario of overbooking as it helps the company
for arranging extra accommodation for customers (Robinson and et. al., 2016). This particular
contract facilitate management of a hotel to fulfil it whenever the firm needs it
Following are the different types of tour operators :
Outbound- These types of tour operators provides luxurious kind of services to potential
customers. They have special packages which re not afforded by every buyer. They tends to from
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a contract with inbound operator of another country and provides travelling services to travel the
world.
Inbound- These operators provide services such as entertainment, activities involved in
providing local tours, exchange of currency etc. They tends to serve all customers in a direct
manner and focuses on fulfilling the aim of local travellers.
Domestic- These operators only serve travellers of a particular nation. And their services
is available to limited customers only.
Ground- These kind of operators potentially handles customers who belongs to various
organisations and leads them to provide facilities such as rental cars, accommodation ,
sightseeing, information, travel to several locations.
2.3 Selling price of holiday package
For the calculation of selling cost, one has to calculate the cost for 5 days as the time
duration of tour will be 5 days. Rooms will be shared for two people therefore, only 8 rooms will
be required. The whole framework of selling cot is provided below:
Particulars Per head amount (£) For 15 persons for 5 days (£)
Cost required for hotel 60*0.79 1896
Cost of supplement 10*0.79 592.5
Cost for coach 1000 1000
Charges related to local
guide 200 200
Total cost 3688.5
Profit margin (10%) 369
Actual selling price 4057.5
Fixed Cost for packages will be £ 3688.5
Profit margin will be 10 percent of total cost of sales £ 369
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Actual Selling price will be £ 4057.5
Package cost for individual : 4057.5/15= £270.5
TASK 3
3.1 Planning decisions taken for designing of a selected brochure.
Brochure is considered as the most important element for mechanising in business related
to tourism. Its role is to enhance every aspect of business. It enlightens the customer with
features, packages, selection of new markets and special offers of a company (Leslie, 2016).
Following are the aspects of XL Leisure Group.
Factors affecting decision planning- There are major factors which are considered for
planning the design structure of a brochure that are format, aim for providing various kind of
information and the preparation time.
Brochure Format- Some of the points which should be taken in consideration while
preparing the format is name of organisation, tour timings, information for destination and all the
types of cost involved.
Images and Maps- A brochure shall have attractive and authentic image of destination
and the correct mp showing several routes which are going towards the company.
Usage of pictures, Colours and fonts- The presentation should be effective as it
provides customer proper information of a company therefore appropriate colours , mages and
fonts should be used so that they can correlate easily.
3.2 Suitability of alternatives to a traditional brochure for different kinds of tour operators.
Traditional brochures are now ineffective as promotional activities of all the companies
now focuses on digital concept. They had certain disadvantages as it leads to provide reach to
less customers whereas nowadays promotions are done through internet with the use of social
media platforms which are very important to get adopted in order to reach a larger audience
instantly. Apart from these, television advertisements are also effective as it leads to provide a
creative approach to customers within short interval of time (Haavik, 2017). This method of
mass communication is one of the strong strategies for implications. Various kinds of videos are
uploaded on social media platforms which provide a short exposure to the audiences regarding
the company which may lead to create an impact. Also, e- brochures can be provided on the sites
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of company so that customers can easily download it which provide every kind of information to
them.
3.3 suitability of different methods of distribution used to sell a holiday for different types of
tour operator
There can be various ways to sell their holiday packages to customers through
direct sell which includes appointing sales person to communicate with potential customers in a
market. This lead to create an impactful relationship that leads to develop a good image of
company. Apart from it several agencies can be appointed that can attract customers and create
several contract with other tour operator for in order to provide them accommodation effectively.
Also, official website an mobile based applications can be used for providing them services
instantly without any delay (Chang, Yeh and Liu, 2015). This will lead to create customers who
are technologically advanced and wants to save time. Social Media platform can be the best
option for creating sales as it has a reach to larger audience and provide instant promotions and
sales. It will help the company to formulate customers from different countries to avail their
services. Telephonic calls can be adopted to provide them verbal idea of the several kind of
information.
TASK 4
4.1 Strategic decisions made by different kinds of tour operators.
Strategic decisions are very important for a company in order to gain profit and to sustain
in a market. Some of the strategic decisions of Thomas Cook are discussed as below:
Pricing Strategy- It is very important to provide packages to customers at a decided rate
which leads to provide profit to company as well as attract customers. The pricing strategy which
is followed by this company premium pricing strategy or skimming pricing strategy as it leads to
target only cream layer of the customers in a market as it tends to provide them a great
profitability and leads to attract high economical segment of customers which values the service
more as compared to prices. They are only attracted to the firm that they are ready to pay an
amount of price for the services.
Marketing strategy- It includes various strategies which are followed for marketing the
product and services which are provided by the Thomas cook. It leads to include the marketing
mi of the company that includes formulation of the structure of product, price , place and
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promotion (Hoarau and Kline, 2014). It leads to decide which product to sell at places on which
price by describing the promotional strategies for it.
4.2 Comparison of tactical decisions taken by selected tour operator in different situations.
Relationship maintenance with stake holders- It is very important to develop a good
relationship with he stake holders as they invest in the company which provides them a chance
for implementing various provisions for achievement of their goals (Tour operations, 2018).
There are many chances of disputes with the stakeholders for decision a particular decision
therefore it is very necessary to maintain the relation by implementing negotiations.
Evaluation of Customer Experience- It is very important to acknowledge the
experience of a customer because several feedbacks must be taken in order to provide them a
chance for advising, suggesting or complaining regarding any service or product. It leads to
identify all gaps which occurs between the expectations of customers and the service provides
and facilitate them to build up a strong strategy for improving the experience of a customer.
CONCLUSION
It has been concluded that there are various strategies which has to be formed by tour
operator in order to provide an effective service in the market. There are various external factors
that have influenced the strategies of Thomas Cook. Apart fro these it has been noticed that
brochure plays an important element for providing basic information of the company to the
customers therefore it is very necessary to implement the all the factors related to it in a creative
way. Also, there re several tactical decisions which are taken by company in order to survive I a
market effectively.
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REFERENCES
Books and journals
Kang, M. and Schuett, M.A., 2013. Determinants of sharing travel experiences in social media.
Journal of Travel & Tourism Marketing. 30(1-2). pp.93-107.
Hudson, S. and Thal, K., 2013. The impact of social media on the consumer decision process:
Implications for tourism marketing. Journal of Travel & Tourism Marketing. 30(1-2).
pp.156-160.
Tsiotsou, R.H. and Goldsmith, R.E., 2012. Strategic marketing in tourism services. Emerald
Group Publishing.
Kunczik, M., 2016. Images of nations and international public relations. Routledge.
Morgan, N., Pritchard, A. and Pride, R., 2011. Destination brands: Managing place reputation.
Routledge.
Robinson, P. and et. al., 2016. Operations management in the travel industry. CABI.
Leslie, D., 2016. Corporate Social Responsibility in the Tour Operating Industry. In Tourism
Enterprises and the Sustainability Agenda across Europe (pp. 88-110). Routledge.
Haavik, T. K., 2017. New tools, old tasks: Safety implications of new technologies and work
processes for integrated operations in the petroleum industry. CRC Press.
Chang, D. S., Yeh, L. T. and Liu, W., 2015. Incorporating the carbon footprint to measure
industry context and energy consumption effect on environmental performance of
business operations. Clean Technologies and Environmental Policy. 17(2). pp.359-371.
Hoarau, H. and Kline, C., 2014. Science and industry: Sharing knowledge for innovation.
Annals of Tourism Research. 46. pp.44-61.
Online
Tour operations. 2018. [online]. Available Through<https://www.rezdy.com/blog/ways-to-
structure-your-tour-operation-for-tour-operators-guide/>
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