Tour Operations Management Report

This report analyzes the current and future trends in the tourism industry, focusing on the role of tour coordinators. It examines the stages involved in developing holiday packages, different contracting methods, and the calculation of selling prices. The report also evaluates strategic and tactical decisions made by tour operators, highlighting the importance of effective planning and distribution strategies.

TOUR OPERATIONS
MANAGEMENT

Table of Contents
TOUR OPERATIONS MANAGEMENT.......................................................................................1
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Effects of current and future trends on tour coordinators...........................................................3
TASK 2............................................................................................................................................5
2.1 Stages and timescale involved in developing holiday...........................................................5
2.2 Different methods of contracting..........................................................................................7
2.3 Calculation of selling price for holiday.................................................................................8
TASK 3............................................................................................................................................8
3.1 Evaluation of planning decision............................................................................................8
3.2 Suitability of alternatives...................................................................................................10
3.3 Suitability of different methods of distribution for selling holiday packages.....................11
4.1 Evaluation of strategic decision made for different tour operators.....................................11
4.2 Comparison of tactical decisions........................................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Tour operators are engaged in providing amazing discounts and offer packages to travellers
in order to make their tour memorable. They make sure that all the experiences availed by
travellers under their services are recognised by them. Study discusses about LCB tour services
which works as a tour coordinator indulge in providing travel services to make their consumer
feel relax and happy. Report discusses about the current, future trends and development on the
tour operators strategy (Standing, Tang-Taye and Boyer, 2014). It highlights the stages and time
scale involved in developing a holiday. Further assignment lays emphasis on different methods
of contracting and time scale involved in developing holiday. Study also explains varied methods
of distribution used to sell a holiday for different types of tour operator.
TASK 1
Effects of current and future trends on tour coordinators
TOUR OPERATION-MANAGEMENT
Effects of current and future trends on tour coordinators
Inbound tour operators:
These tour operators are
involved in imparting services
to the foreign tourist. These
coordinators provides
travellers with opportunity to
avail most prominent services
like tracking, sightseeing, river
rafting, organising events for
their consumers. They make
customer feel relaxed and
under the services of inbound
tour operators travellers can
enjoy their outing (Schegg and
Stangl, 2017). The tour
operators promote their travel
Outbound tour
operators: These are the
another type of tour operators
which are involved in
organising multinational
holidays for the travellers. The
out bound coordinators are
being indulged in providing a
holiday which is exotic and
full of various activities like
horse riding, paragliding,
tracking, river rafting. They
also give the services like
arranging visa or passport
services for the tourist. These
operators make each task easy
Specialist’s operator:
These tour operators are
involved in giving different
type of services like arranging
adventurous packages for the
travellers. They arrange
medical services for the
travellers, provide them with
environment which is safe and
secure. Also, specialists tour
operators do analysis and give
services according to the needs
and demands of consumers.

packages through various
marketing strategies like
online and internet marketing,
word of mouth publicity and
many more.
Current future trends and
development
Tourism industry has shown
an outstanding development in
the recent years. Rise in this
sectors has also raised
economic condition of the
region where the industry is
been prevailing. Many new
technologies have been
adopted by them which has
increased their revenue.
for the traveller (Zhou, 2015).
LCB tour as an outbound tour
coordinators can attract more
travellers towards them by
offering services like this. By
this, they can increase their
profitability plus market share.
Technological development:
Advancement in technology
has laid positive impact on
travel and tourism industry.
With the help of techniques
like social media, the tourism
sector is able to reach large
number of audiences and also
more consumers are attracted
towards them. This has helped
in increasing their revenue
plus expanding their market
share. LCB tours and services
are also involved in
coordinating with travellers
through online media. They
ask for feedback from
travellers on their online
websites. Also digital
Environmental awareness
and responsible tourism:
Increasing tourism leads to
creating issues for the
environment. Overcrowding,
traffic problems raises trouble
for residents. Furthermore,
from this it leads to pollution
as well. But over a period of
time people have become more
aware and responsible
(Wolshon and Pande, 2016).
Tour operators are now
promoting responsible tourism.
LCB tour operators are
engaged in implementing
schemes and policies which
are responsible for making
environment healthier for
people living in that region.
For example they make sure
that all their travellers while
travelling keep their
surroundings clean and make
use of paper bags instead of
poly bags.

technology has supported
company in growing. Rise or fall in inflation: It
is also one of the major
concerns, which can be faced
by region. United Kingdom
has faced recession time when
the people living over their
faced situation of crisis.
Development of travel and
tourism industry has provided
employment opportunities to
wider range of individuals and
it also helped country in
overcoming the situation of
calamities. It has helped
company in growing.
TASK 2
2.1 Stages and timescale involved in developing holiday
LCB tour operators are involved in providing travel services that improves the travelling
experiences of travellers. Stages and timescale required in developing holidays are as followed:
Market research
In order to develop a premium holiday plan for travellers LCB tours and operators will be
involved in doing market research. They will analyse about the needs and wants of travellers or
customers. In addition, they would be engaged in knowing about what trends are being followed
in the market (Schegg and Stangl, 2017). Moreover, research will be also done by them relating
to the packages offered by competitors. By this way LCB tour operators can identify economic,
political condition of particular place. Furthermore market research will support company in
knowing about the attractive locations where the travellers like to go and spend their holidays.

Planning and scheduling
After doing market research LCB tour operators will engage in doing planning and
scheduling function. It will be done about how to manage the resources, major destinations,
hotels where people can go. Proper planning and scheduling will assist company in saving cost
and minimising expenses. Also it will make them utilise the resources perfectly.
Contracting
After planning and scheduling about the destinations and places where the tourist can go.
LCB tour operators will be engaged in doing the function of contracting. In this they will be
indulged in making dealings or contracts with suppliers. They will also make deals with airline
authorities, passport authorities and many more.
Costing
After making contracts with supplier and various other authorities LCB tour operators
would be engaged in making cost which would be required in preparing for holiday packages.
This will including determination of exchange rates which will be essential in order to increase
sales of the enterprise (Zhou, 2015).
Financial evaluation and pricing
This step is one of the most important step for the LCB tour operator. They must be
involved in doing financial planning and pricing. This will support company in determining the
price which would be needed for a particular holiday.
Brochure creation
Creating of brochure by LCB tour operators will help them in making travellers about the
services provided by them. This can also assist them in attracting new consumers. They must
make sure that brochure is attractive and presentable. It must contain all the relevant information
which company thinks is important to share with travellers.
Advertising
In this step LCB tour operators needs to involve in advertising the holiday or travel
services which they are offering to consumers (Xiang, Magnini and Fesenmaier, 2015). This
will assist company in attracting more travellers and also make them aware about the packages
offered by tour operators. Advertising will allow company to increase their revenue and also
profit would be raised.
Operation and execution

After going through all the stages LCB tours operator would be engaged in function of
operation and execution. They will check whether all the activities are being adhered
accordingly. Also, company will re check the amount invested and expenses occurred during the
planning process.
Post tour management
After performing all the functions involved in the planning process, LCB tour operators
prepare for the post tour services that includes functions like solving the queries of travellers,
providing them with feedback.
2.2 Different methods of contracting
Fixed contract
Fixed contract is made between tour-operators and share holders. It is very necessary for
LCB tour-operators to make this type of contract as it will help the company in achieving
efficiency. In this dealing company is involved in paying some amount to the stakeholders so
that their activities are carried out effectively (Standing, Tang-Taye and Boyer, 2014). This will
support company in making pre bookings also air line tickets can be done by them with help of
this contract. Fixed contract can help giving assurance to the consumers that there services will
be carried out properly.
Allocation
This allocation service can be used by LCB tour operators to book hotel and carrier
services. It will help company in getting early booking and this will also support in increasing
their revenue. Before connecting to carrier department services, organisation engages in doing
dealing with suppliers at nominal price. This allocation activity supports firm in saving cost and
also with the help of this they can minimise and make effective use of their resources.
AD-Hoc
This is yet another type of contract which LCB tour operators will make when their arises
a certain specific condition or problem. This will help company in solving the issues which they
can face while dealing or negotiating with share holders. Also, it will help them in building
relationship of trust with the stakeholders.

2.3 Calculation of selling price for holiday
Selling price is that cost which can be used LCB tour operators to sell its product. This
price is set above the cost indulge by company and nominal profit is also been added in this. The
price incurred by organisation is been mentioned below;
Expenditures Price per person
Airline charges £ 30
Salaries to staff £ 40
Load cost £20.00
Hotel expenses £5.00
Miscellaneous charges £18.00
Mark up 10.00%
Total cost 113*10%=124.3
From the above table it has been identified that LCB tour operators for developing travel
package will indulge a cost of £ 124.3. It is because company have to do all the functions related
to planning the activities, paying of salary to employees, purchasing of raw materials, finding for
the perfect resources (Schegg and Stangl, 2017). Also, the mark up price has been set up by the
company above 10%. This will help organisation in earning a nominal amount of profit. LCB
tour-operator will make their plan according to this budget. This can make organisation grow.
TASK 3
3.1 Evaluation of planning decision
In order to gain competitive advantage LCB tour-operator is involved in making strategic
planning for the preparation of E- brochures. They have identified that in order to attract
consumers the brochures needs to be presentable with attractive clip arts, images and pictures.
For achieving business objectives firm needs to have a keen understanding about the taste and
preferences of travellers. This will help them in attracting more customers. Also brochures
should contain relevant information asked by the client. So that it would be easy for the firm to
solve the queries faced by travellers.
Basis LCB tour-operator Thomas Cook TUI

Cost Design of brochure-
Company is engaged
in using attractive
design for the
preparation of
brochure. They select
design which attracts
consumers.
Distribution- Brochure
is been distributed by
them through the help
of print media and
social media.
Quality of print- They
are involved in using
high quality print
which increases cost
of LCB tour-operators
Number of copies-
Company is involved
in making copies for
the whole region that
directly relates to rise
in price (Xiang,
Magnini and
Fesenmaier, 2015).
Wastage- Firm makes
sure that the resources
are utilised effectively
and there is minimum
wastage.
Costing of the
company increases
while designing the
brochure, they make
use of advance
technology to create it.
Distribution is done by
traditional method
which makes there
expenses rise. They
are involved using low
quality print to save
money (Vellas, 2016).
Also, the company is
involved in
distributing copies to
only limited
consumers to save
cost. It has been
analysed that a lot of
wastage is been done
in the firm relating to
the creation of
brochures.
TUI designs brochures
using attractive arts.
This rises there cost.
Also, distribution is
done through online
channels in order to
save cost. Quality of
print is high so that
more consumers are
attracted. Copies are
distributed to limited
travellers. Wastage is
been try to reduce.

Deciding the format LCB operators have
try to make there
brochure short and
simple with only
relevant and specific
information
Thomas cook is been
involved in making
brochure a booklet that
becomes quiet hectic
for customers to read
it.
TUI E- brochure is of
2-3 pages with
attractive pictures.
But, also more
travellers found it
difficult to read more
pages.
Target market and
budget
LCB tour operators
wants to expand their
market share, so the
target market is wide
and also the quality of
print of their brochure
is also high. Budget is
set according to it.
Thomas cook is
limited in their space,
target market is
narrow than also to
save cost design and
quality of the print is
low. Budget is
prepared according to
the quality of service
offered.
TUI wants to target
large audiences, so
they have quality of
print high.
Determining print
specifications
The style of font is
kept attractive by LCB
tour-operators. Also,
they keep font size
which is easily read by
travellers.
Thomas Cook keep
their print
specification and fonts
according to the
budget set up by them.
TUI also sets the font
size according to the
consumers targeted.
Timescales It is been set according
if the company is
going to enter new
market.
Set according to the
seasonal market.
Set according to
launching of new
service in market.

3.2 Suitability of alternatives
LCB tour-operators can make use of various alternatives in order to increase their market
share and also raise their revenue. They can make use of creative and innovative techniques
which can attract more number of customers. Strategies like social media marketing, internet
marketing has taken place of traditional method of promotion. Using online platform can help
company in exploring wide range of consumers and also it will build a good image in the market
for LCB tour-operators. Organisation can make use of E- Brochures that makes consumers aware
about the product and services offered by company (Page, 2014).
Firm can also make use of social media channels like Facebook, Instagram, Twitter that
can help entity in gaining feedback from the consumers. Through knowing drawbacks about
services company can improvise the holiday package offered by them. This will also build a
relationship between travellers and tour-operators which will enhance their effeciency. The
relationship will directly link to increase in the revenue of the enterprise. Hence, by applying the
alternative strategies LCB tour-operators will be able to increase their sales, market share and
their revenue. It will also create brand image for the company.
3.3 Suitability of different methods of distribution for selling holiday packages
Different methods of distribution will be undertaken by LCB tour-operators in order to
reach large mass of audience and increase their sales and profit revenue.
Direct distribution: This method supports company in directly connecting to the
travellers. For this organisation will make use of social media, telephonic conversation, face to
face talking so that they can directly interact to the large audiences. Company can make
travellers aware about the services and holiday packages offered by them. Through direct
interaction company would be able to influence the decision of the travellers.
Online travel agency: LCB tour operators can make collaboration with online travel
agency which connects to the travellers through internet. These travel agency can connect with
tourist through online channels and can solve their queries over there. They are also engaged in
distributing brochures to their present consumers (Cetin and Yarcan, 2017).
Government website: It is also one of the most important method of distribution way
which can be used to sell the holiday packages. These websites can provide information to
consumers about various tour packages given by LCB tour operators. They give data related to
the price of the airline tickets, make arrangements for passport services and many more.

4.1 Evaluation of strategic decision made for different tour operators
In order to achieve business objectives company must be involved in making strategic
decisions. This can assist LCB tour-operators in gaining competitive advantage. Also, the
judgements will support them in growing and expanding their market share. Strategic decision
taken by LCB tour-operators are given below:
Discount pricing strategy: This strategy has been implemented by LCB tour-operators in
which company is involved in giving significant discount on holiday packages to their loyal
consumers (Li and et.al., 2017). Also, other firms such as Thomas cook, TUI are also engaged in
giving most amazing tour packages to their travellers. This strategy has been applied by LCB
tour-operators in order to gain competitive advantage and to achieve their market share.
Company has made a scheme that the traveller interested in their tour packages will gain
additional 10% discount. This attracts more customers towards the firm.
Distribution decision: LCB tour-operators are engaged in distributing their services
through appropriate channel of distribution. This is one of the most important strategic decision
taken by the firm. Also, through channel of distribution company is able to send videos, images
and E- brochures to travellers. This assist them in enhancing their efficiency and improving there
functional abilities.
Choice of products: LCB tour-operators provides travellers with ride range of choices as
they through market research company has analysed that need of every consumer is different.
This also helped firm in gaining competitive advantage and increased their revenue and profit. It
builds a good image of enterprise in the market (Li and et.al., 2017).
4.2 Comparison of tactical decisions
Tactical decisions undertaken by LCB tour-operator are the judgements which has
supported organisation in achieving their business objective. Discounted pricing decision is one
of the most important strategic decision undertaken by the firm . However, offering discount may
initially lower down the profit of the company but it has supported company in attracting more
consumers. This has also provided firm with the competitive advantage. Thus, pricing decision is
profitable for enterprise and it will rise their sustainability.
Tactical marketing such as social media marketing implemented by the firm is also one of
the most valid judgements (Zhou, 2015). This has assisted LCB tour-operators in making
collaboration with large audiences. Also, by the help of social media channels firm were more

able to make travellers aware about the E-brochures, services and packages offered by them.
Overall it was beneficial for the company.
CONCLUSION
From the above study it has been summarised that in order to increase sales LCB tour-
operators has been involved in making different type of contracts like fixed, allocation and Ad-
hoc. Also, this has made the relationship between company and stakeholders stronger. Further
report has also explained that company has applied different strategies like making use of social
media techniques, online and internet marketing has assisted company in attracting new
travellers and retaining the old one. Report has also highlighted about the time scaling plan
which has been implemented by LCB tour-operator in order to save and minimise expenses.
REFERENCES
Books and Journals
Zhou, Z., 2015. Travel agency and tour operation.
Li, Y. and et.al., 2017. The concept of smart tourism in the context of tourism information
services. Tourism Management. 58. pp.293-300.
Cetin, G. and Yarcan, S., 2017. The professional relationship between tour guides and tour
operators. Scandinavian Journal of Hospitality and Tourism.17(4). pp.345-357.
Page, S.J., 2014. Tourism management. Routledge.
Xiang, Z., Magnini, V.P. and Fesenmaier, D.R., 2015. Information technology and consumer
behavior in travel and tourism: Insights from travel planning using the internet. Journal
of Retailing and Consumer Services.22.pp.244-249.
Vellas, F., 2016. The international marketing of travel and tourism: A strategic approach.
Macmillan International Higher Education.
Standing, C., Tang-Taye, J.P. and Boyer, M., 2014. The impact of the Internet in travel and
tourism: A research review 2001–2010. Journal of Travel & Tourism Marketing.31(1).
pp.82-113.
Schegg, R. and Stangl, B., 2017, January. Information and Communication Technologies in
Tourism 2017.
Online

Butler's Tourism Area Life Cycle. 2018. [Online]. Available through <
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