Tourism Operations Management

This assignment delves into the current state of the tourism industry, focusing on tour operators. It examines factors influencing their growth, such as technological advancements and changing consumer preferences. The assignment also explores challenges faced by tour operators, including environmental concerns and economic fluctuations. It encourages critical thinking about the future of tour operator operations in a dynamic global market.

Tour Operations Management in Trailfinders Ltd

Table of Contents
Introduction..................................................................................................................................4
Task 1...............................................................................................................................................4
1.1 Analyze the effects of current and recent trends and developments on the tour operators
industry.........................................................................................................................................4
Task 2...............................................................................................................................................5
2.1 Assess the stages and timescales involved in developing holidays.......................................5
2.2 Evaluate the suitability of different methods of contracting for different components of the
holiday for example transport, hotels, attraction..........................................................................7
2.3 Calculate the selling price of a holiday per person from given information above...............7
Task 3...............................................................................................................................................8
3.1 Evaluate the planning decisions taken for the design of a brochure for luxury holidays......8
3.2 Assess the suitability of alternatives to a traditional brochure for different types of tour
operators and recommend the most appropriate for your tour package.......................................9
3.3 Evaluate the suitability of different methods of distribution used to sell a holiday for
different types of tour operator and recommend the most appropriate for a luxury tour package
....................................................................................................................................................10
4.1 Evaluate the strategic decisions made by different types of tour operator..........................11
AC 4.2 Compare the tactical decisions that could be taken by a selected tour operator in
different situations......................................................................................................................12
Conclusion.....................................................................................................................................12
References......................................................................................................................................14

Introduction
Every individual wants his travel experience to be a memorable one. Hence he does not want any
mismanagement in it. Tour operators are thus here to attain the travel objectives of individuals
and also act as boon for those who have a love for travelling (Shalmani, Javadi and Torabian,
2014). They make travel related arrangements by taking budget, interest and needs of client into
consideration. One such tour operator is Trail finders Ltd which is a UK based Travel Company
that is there to offer unbeatable and award-winning service to the clients (Trail finders Ltd,
2018). Focus of the report is thus on exploring the recent trends and developments in the tour
operators industry and how it has impacted the overall working of Trail finders Ltd. This is
followed by planning a holiday trip for students to Brussels and Brugge by preparing brochure
and calculating the selling price of the same. A discussion has further been made on strategic and
tactical decision made by the tour operators while carrying out the operations.
Task 1
1.1 Analyze the effects of current and recent trends and developments on the tour operators
industry
There is a presence of many recent trends and developments that has put an impact on the overall
working of tour operators industry especially Trailfinders Ltd.
Environmental awareness of tour operators – the present times are of global warming and hence
the earth is facing several natural disasters from time to time such as earthquakes, tsunamis,
tornados etc. hence the tour operators like Trailfinders Ltd are required to develop awareness
about the eniovrnment so that packages can be formed accordingly. For example, it will not be a
good idea to plan a package when volcanic eruptions are going on in a nation.
Expansion of the cruise market- Studies have revealed that tour operator market growth has
majorly been driven by cruises. The revenue from this segment in the year 2017 increased by
16.8% (Hildebrandt, 2018). This area can further be explored by Trailfinders Ltd so as to earn
increased revenue and sales.
Responsible tourism – The tour operators are further required to take responsible tourism
practices into account. This can be done by promoting growth within local economy i.e. by
hiring residents and using local produce. Energy-efficient equipment can also be used to run the

tour operation. The management at Trailfinders Ltd. is further required to train the staff in
providing accurate information about the local culture where the tour has been planned.
Emergence of ecommerce – The present trends in ecommerce is of digitalization hence firms
such as Trailfinders Ltd. are required to maintain the online presence; be responsive on their
website; and also put videos on social media platforms (Hsu and et.al., 2016). There should
further be an increased flexibility in booking over mediums such as net, teletext. These facilities
should also be there for 24 hours and a chat expert should manage the queries on website.
Female Solo Travel – Recent trend in travel business is also of Solo Travel by females. Hence
the tour operators are required to customize the holiday trips as per this change. It is actually a
growing market which can provide increased opportunities to Trailfinders Ltd. and must not be
ignored at any cost. The firm is most importantly required to work on the security concerns so as
to make their experiences a good one (Shalmani, Javadi and Torabian, 2014).
Brexit - Last but not the least there is also a presence of Brexit issue that has impacted overall
tourism industry of UK. Studies have revealed that there has been an increase of 71 percent in
the domestic holidays during the year 2016 in comparison to 2015 which was just 64 percent
(Cook, Hsu and Marqua, 2014). Hence the company is required to take steps for attracting the
domestic travelers rather than international ones at least for some time.
Task 2
2.1 Assess the stages and timescales involved in developing holidays
Effective planning of the tour can only be done if a proper timescale for holidays has been
developed so that better use of holidays can take place. If a timescale is developed then better
management of the time duration can be done and effective use of holidays is possible (Zehrer
and Hallmann, 2015). Hence the stage and timescales involved in developing holidays for a tour
to Belgium by Trailfinders Ltd. for adult students during August 2019 are as follows.
Stages 1st week 2nd week 3rd week 4th week
market
research
planning
and

scheduling
costing the
holiday
pricing,
discounting
strategies,
Market research – The very first stage is of market research where consumers for the tour is to be
made would be chosen. As per the above information, adult students over the age of q8 has been
chosen hence educational destination in Brussels and Brugge are required to be researched where
the students will be taken. The hotel prices are also required to be compared with each other so
that final yes can be said to Grand Casselbergh. It will also be good if a study is made on prices
offered by their tour operators to Belgium such as Thomas Cook among others (Gretzel and
et.al., 2015). Pricing to be set should be at par with the competitors so as to provide value for
money deal to the students.
Planning and scheduling – This will involve for deciding over the days for which the tour is to be
kept and scheduling the destinations where the travellers will be taken. As per the information,
the proposed trip is of 5 nights hence destinations are required to be scheduled on the basis of it.
Climate of the region is also required to be taken care and as per the research the places have
good climate hence focus should be given on covering the destinations in open (Croce and Perri,
2017). Planning is also required to be done with respect to food to be served and time to be spent
on very spot.
Costing –Overall costing of the package is required to be found out by management at
Trailfinders Ltd where emphasis will be on hotel cost per room, traveling expenses; food cost;
staffing salaries among others. The costing will thus be inclusive of all the fixed and variable
costs, direct and indirect costs (Cook, Hsu and Marqua, 2014).
Pricing – Then comes deciding over the pricing strategy whose formulation will be done on the
basis of profit margins to be covered by company. The choice of strategy will also be important
for management at Trailfinders Ltd which will majorly be from skimming or competitive pricing.
Focus will also be given on special offers and discounts to be provided to the travellers (Hsu and

et.al., 2016). The above costing as well as pricing strategy is further required to focus on
currency exchange rates of Belgium where the tour is going to be held.
2.2 Evaluate the suitability of different methods of contracting for different components of the
holiday for example transport, hotels, attraction.
The term contracting can be defined as the process by which a person deals and enters into an
agreement. It is the deal that is made for agreed value of the product or service offering. In this
regard, as per the current scenario, the tour package launched by Trailfinders Ltd from London,
the United Kingdom to Brussels and Brugge, Belgium will involve certain contracting
agreements (Cook, Hsu and Marqua, 2014). This is as different things such as transport, hotels,
attractions etc. are a part of the package. The components and respective contracting methods are
as follows;
 Transportation – The contract to be done with local transport service provider in Brussels and
Brugge should be fixed one and must be made by signing the agreement for sightseeing for the
scheduled days. Fixed payment must also be set with the transporter for all the costs that are
inclusive of driver, fuel, toll gates and parking (Holland and Leslie, 2018). In this regard a lump
sum amount should be paid to the operator in start and rest amount in later stages of operations.
 Accommodation– As per the information a special group rate has been set for Grand Casselbergh
in Bruges which is of 92 euros per person that is meant for a twin room with breakfast. But it is
also true that hotels may change as per different locations hence a variable contract with payment
should be set. In this case the contractual agreement is also required to be different for different
hotels. Allocation contraction technique can be utilised where there is no need to pay for unsold
services when a holiday package
 Meals - fixed contract method is not a good option for the meals to be provided to the staff as
supply of food is to be done as per taste of students. Also there will be a change in location hence
fixed contract is not of any use (Hall and Page, 2016).
 As the tour guide should be signed as per fixed contract method where they will travel with
students at different locations and help then explore the sights and sceneries. A lump sum
amount should thus be fixed as per the places to be visited by students. But in case the places are
not pre decided then fixed contract method will not be a good option as guide may not be willing
to take students to more places.

2.3 Calculate the selling price of a holiday per person from given information above
Calculation per
person
Per person (in pounds)
Accommodation at
Grand
Casselbergh in
Bruges
92/1.12*5
s
£410.70
Transport 7350/42 £175
Visitor attractions 52 EURO/1.12 £46.42
local
tour guide
1020 EURO?
1.12/42
£21.68
FINAL COST FOR
TOUR OPERATOR
£653.8
PROFIT TO TOUR
OPERATOR (mark-up
of
25% to cover selling and
administration costs and
profit)
s£653.8*25%
£163.45
TOTAL COST TO THE
TRAVELLERS
£817.25
Task 3
3.1 Evaluate the planning decisions taken for the design of a brochure for luxury holidays
Brochure
Designing of a brochure in tourism is not a ways task as it requires the understanding of the
psychology of audiences and what they are exactly looking for with respect to their travel needs.
The design should be such that it is able to meet a good first impression and also able to attract
the tourists by making them get mesmerized in the upcoming travel (Shalmani, Javadi and
Torabian, 2014).

Designing of a brochure especially in the luxury segment is not an easy task as it various
planning decisions that are as follows;
Defining the target measure – proper designing of brochure can only be done when the target
market is clear. Then only the overall effectiveness of the brochure can be improved. As of now
it is quite clear that the brochure is for students hence planning with respect to design can be
done accordingly (Alegre and Sard, 2017).
Images – The need is to make selection regarding the images to be selected for the luxury
brochure. Planning is thus required to be made with respect to the size of image, types of photos
to be chosen among others (Cook, Hsu and Marqua, 2014). Seeing the requirement of the present
brochure, it will be good to select large, beautiful imagery about famous tourist spots in Brussels
and Brugge that attracts the potential consumers.
Color – The planning related to selection of color is also a huge requirement so as to draw the
readers towards the journey. Choice is to be made from bright, basic, pastel shades among
others. For the present brochure, it will be best to make use of bright blues, reds and magentas
shades on a black background (De Sausmarez, 2013). It is also essential to create a clean look
that can complement with rich photography and also draw readers towards the travel.
Paper –Decision is required to be made as to what quality of paper will be used and what will the
overall weight and texture of it. It will be best to make use of high-quality paper that focuses on
quality and glamour that the travellers can also expect from the travel (Cetin and Yarcan, 2017).
Information –
Focus is also required to be given on the kind of information to be included in the brochure. This
is a requirement so as to motivate as well as convince the students to be a part of the tour. Focus
should be given on name of tour and travel agency; modes of transport; details of destination;
tour duration; pricing; facilities; booking conditions; insurance; meals and stay details among
others (Pasape and Mujwiga, 2017).
3.2 Assess the suitability of alternatives to a traditional brochure for different types of tour
operators and recommend the most appropriate for your tour package
Varied alternatives means for traditional brochure is present that can be used by the tour
operators.

 CD – CD drives can be used as an alternate as it presents the text in digitalised format.
The CDs are easy in terms of access and also environmental friendly due to usage of
paper which brings a reduction in printing cost (Robinson and et.al., 2016).
 Video – It can also be used as a brochure as it helps in carrying out effective
communication and also has an ease in editing after it has been produced.
 Internet- then is the internet which is quite suitable as publishing can be done instantly
and large number of consumers can be served at the same time. It is also less expensive
and there is an avoidance of issues that is linked to the printer (Cook, Hsu and Marqua,
2014).
 Television – it is also a convenient means to display information about the travel
packages of the company and can be viewed by millions of consumers both at national
and international level.one more advantage is that audio and visual effects can also be
given which assists in creating a long lasting impact on the audiences and may help to
generate positive sales (Bruni, Cassia and Magno, 2017). It is somewhere
disadvantageous as running a TV commercial is a costly affair and hence may not be so
viable in comparison to available options.
 Use of mobile applications – the mobile apps assists in easy dissemination of the
information with respect to the product and services offered by the company. A large
consumer base can also be generated in a small amount of cost.
As per the above alternatives in relation to the traditional brochure the best option is of internet.
This is as the tour package is basically meant for students and they are the ones who use the
internet most of the times (Wall-Reinius, Ioannides and Zampoukos, 2017). Hence internet can
help in easy targeting of the students. Moreover the presence of e-brochure on internet also
provides a flexible means as choice can be made from a set of available templates. These are
more flexible as well as adaptable in nature in comparison to printed formats. Hence information
can be changed easily in case a need arises for the same.
3.3 Evaluate the suitability of different methods of distribution used to sell a holiday for different
types of tour operator and recommend the most appropriate for a luxury tour package
Various techniques for distributing a holiday packages can be made by firm. One such is direct
selling where consumer service executive can be appointed and new relations can be built by the
clients directly. This will also aid in testing the overall appeal of the service that has been

provided to the consumers. The clients will further get a chance to ask questions with the
representative about the product and service offerings, other facilities, pricing etc. The response
of consumer can then be judged and booking for the same can be made at the same time if the
consumer is positive (Solnet, Kralj and Baum, 2015). The need here is that the representatives
must be trained in a thorough manner so that maximum response can be generated from the
consumers. They must further be given an authority to make changes in the plan by upgrading or
modifying the services so as to suit the needs of consumers.
Next technique is by hiring agencies for the purpose of distribution by which repeated consumers
can be attracted towards the offerings of company by providing them with value for money
offerings and also satisfying the overall needs. A nominal amount of money is charged from the
tour operator (Croce and Perri, 2017).
Then comes call center that can carry out 3rd part promotional activities for the clients where the
agents call the prospective consumers and message people so that awareness can be spread about
different packages (Wood and Peters, 2014).
Telephone calls are also present that can aid in providing detailed data about the packages and
consumers can then be attracted accordingly.
As per my belief the best suitable technique for selling the luxury holiday trip to the students
seems to be of talk with a sales representative. This is as in the present case; students for the tour
may not be contacted directly rather the focus will be given on educational institution that is
carrying out the tour. Hence the need here is that sales personnel try to convince the management
through face to face communication.
4.1 Evaluate the strategic decisions made by different types of tour operator
There is a need to take decision in the area of pricing by which the package can be made
attractive for the consumer and profits can also be gained accordingly. The need is to set price of
the services by assessing the overall market demand, availability of alternatives, economic
conditions. Strategic decisions related to pricing will also be different if the tour operator is of
low cost hence strategies will be formulated on the basis of objectives of the company to attain
profits (Bruni, Cassia and Magno, 2017). In this regard, if there is a presence of low consumer
demand on account of lean season then the Trail finders Ltd will not increase the prices even if
cost is rising but if there is an upsurge in demand then price escalation is justified (Lammgård

and Andersson, 2014). Other than this, there can also be use of different offers and schemes to
lure consumers during lean seasons.
Then comes the overall image possessed by the tour operator towards the business. Hence
management of the company is required to work on creating a proper brand image in the minds
of consumers so that best form of decision making can be done. Choice of product in relation to
customer portfolio is also very essential while providing the services to the consumers. This is as
management is require to decide as to if customized product offerings are to be given to the
consumers or not. If not then how needs of the clients are to be met (Wood and St. Peters, 2014).
In the same way, strategic decisions related to distribution are inclusive of selecting the exact
method of distribution; assessing the process in supply chain management and entering not
contractual agreement with the middle man so as to serve the needs of target consumers.
Then comes the decision with respect to investment funds where strategies and policies are
required to be made. This will assist in meeting the financial needs of the company and selling
the packages accordingly (Carreira, Patrício, Jorge and Magee, 2014). In the strategic decision
with respect to modes of transportation the need is to decide as to which means will be the best
one as per the current requirement. In this regard, the transport mode should be such that it not
only provides value for money offering to the clients but also aids in meeting up the company
goal of safety and security.
AC 4.2 Compare the tactical decisions that could be taken by a selected tour operator in different
situations
Tactical decisions are the ones that are taken to implement strategies within the organization.
These are generally made in day to day operations of tour operator business. The present
company under study being Trailfinders Ltd is required to make decision in the area of financial
strategy to be undertaken by the company. The decision to be taken will depend on the financial
goals of the firm (Cook, Hsu and Marqua, 2014). For example, if it is involved in profit making
then high priced services will be provided to consumers. Decision is also to be taken with respect
to provision of value added services in its holiday packages. The operator in this regard may do
the work of comparing the offerings with competitors and then make a decision as to what kind
of extra service should be given to consumers (Shalmani, Javadi and Torabian, 2014). In the
same lines, tactical decisions are also required in the area of maintaining good relations with the
consumers. The need here is to ensure towards the health and safety during entire touring

process. They should also provide seamless advice and support from the time of booking and
throughout the trip.
Conclusion
From the above report it can be concluded that there is an existence of many recent
developments in tour industry such as increase in Environmental awareness of tour operators;
Responsible tourism; Expansion of the cruise market; Emergence of ecommerce among others.
These have led to negative and positive impact on the overall operations. Hence the firms such as
Trailfinder limited are required to be aware of various stages in planning of holiday packages as
well as the timescale linked to it. Decision making is also to be done in planning of brochure and
selling price per person. In the same way, it is essential to select the means of distribution and
undertake tactical as well as strategic decisions.

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