Tour Operations Management: Roles, Functions, and Package Holiday Creation

This document provides an overview of tour operations management, including the roles and functions of tour operators, the scale and structure of the tour operating industry, and the stages and components involved in creating a package holiday. It also includes profiles of key tour operators and their differentiation in the industry.

Tour Operations
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Different roles addition to functions of tour operators range......................................................3
Explanation of scale as well as structure of tour operating industry...........................................6
Task 2...............................................................................................................................................7
Outlining various stages as well as components for creating package holiday...........................7
Define and forecast changes in consumer demand by using sources of research.......................9
Task 3.............................................................................................................................................11
Review the content of range of packages tour programmes which serve similar product market
....................................................................................................................................................11
Comparing and contrasting a range of package tour programmes which serve a similar product
market........................................................................................................................................12
Evaluation of range of package tour programmes which are serving similar product market. .13
Task 4.............................................................................................................................................14
Explanation with examples of strategic and tactical decision making in tour operations.........14
Assessment of external factors which affects adversely strategic and tactical decision and
recommend response..................................................................................................................15
Critical evaluation of strategic and tactical decisions ...............................................................16
CONCLUSION .............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Tour operation management is defined as imperative task wherein entities prepares
holiday packages along with elaborated information in context to tour. In other words, tour
operation management can be mentioned as effectual process wherein tourism companies plan
standard quality travelling packages and manage them properly. The main work of business
concerns in this task is to attract tourists across nation together with increasing sales turnover of
operators of tour (Allahyari, Salari and Vigo, 2015). Tour and travel sector offers various
facilities to customers in order to make the trip memorable addition to comfortable. For
understanding tour operations management. TUI Company is chosen which performs activities in
Travel and Tourism industry. Its head offices were established at Luton, England and serves the
wide area of United Kingdom. The products offered by selected business concern are package
holidays, hotels and resorts, Charter as well as Scheduled passenger airline along with cruise
lines.
The present assessment includes information about roles, functions, types, scale and
structure of tour operating sector. It also includes different stages so to develop package holiday.
Further, it assess various tour programme range for meeting needs of targetted market. At last, it
examines various strategic along with tactical decisions that are framed by tour operators.
TASK 1
Different roles addition to functions of tour operators range.
Definition of tour operating business
Tour operating business can be mentioned as the organisation that purchases individual
travel essentials, separately from suppliers so to combine them in particular trip package that is
offered with price tag to targetted customer either directly or with the help of middlemen. This
type of business is owned by a person in which they transports paying holidaymaker on
organised itineraries together with makes arrangement for potential customers related to
accommodation, conveyance along with excursions. TUI Company is also a tour operating
business that works for organising addition to preparing variety of holiday tours (Evans,
Stonehouse and Campbell, 2012).
Tour operators performs wide types of business activities. One of business activity is to
devise, set up and promote options for holidays and travel so to execute proper arrangements.

Moreover, they also performs consultation services wherein they provide advices and solution to
customers in terms of where to go, best means to reach any destination and many more. For
instance, TUI Company, being a tour operator, it performs business activities related to drawing
travelling itineraries, provides advises for distinct travel destinations, makes arrangements for
conveyance, tours along with accommodation, contacts airlines, ground transport entities and
hotels, uses computer database in order to research information for fares of hotel accommodation
and ratings, performs general administration tasks, plans and promotes travelling packages, deals
with payments and evaluates customer's holidays so to issue suitable feedback forms.
Types of tour operators:
Tour operators are the travel agents which have specialisation in package holidays. These
operators combines tour as well as travelling components on order to frame a holiday package.
Moreover, they advertise together with produces brochures for promoting the set products,
itineraries as well as holidays (DiPietro, Cao and Partlow, 2013). These are generally responsible
to put essentials of tour ingredients, promoting them, making reservations together with properly
handling actual operations. Following are some tour operator types:
Mass market operators: These are the tour operators which organises tours for mass
population at a time. They requires understanding of entire tourism sector very well and have
knowledge for most affordable routes addition to transportation modes. For example, TUI
company is well popular as mass market tour operator because of selling holidays which request
to mass population of holiday makers.
Independent operators: The tour operator which organises things for themselves despite
of using any travelling institution or company. In other words, independent tour operators are
said to the single agency which are specialises in arranging hotels, flights and many more.
Domestic operators: The tour operator that manages travelling operations with nations
boundary are domestic tour operators. They assist in promotions for beauty, diversity as well as
culture of nation against population of country along with frames tour packages as per customers
interest, preference and choice (Bazargan, 2016).
Incoming operators: Incoming tour operators are described to the travelling
organisations that offers local services to travellers in location, including car rental, sightseeing
and many more. These operators also provides services for exhibitions addition to conferences to
travellers.

Outbound operators: These trip operators are specialised for creating and promoting
multi national holiday trips. They offers tourism packages to people or group of people of their
own country and another nation for particular decided time frame. Moreover, they also arranges
documents the purpose of travelling such as visas, conveyance to starting location, local
sightseeing and many more.
Functional roles of tour operators:
There are various roles and functions which tour operation business performs. In context
to TUI Company, following are its main function and roles:
Functional roles of tour operator: Tour operators are basically popular as service
providers to travellers in terms of visiting, staying as well as exploring the city or nation.
Different functions in relevance to TUI company are underneath:
 Product development: One of important function of tour operator is to develop the
product in accordance to traveller needs and choices. The entire production department of
TUI company sits and ensures that they have accurate marketing mix of destinations,
concepts along with hotels for matching customer demand. They tour operating company
analyses customers choices and develops suitable product for travelling aspect.
 Marketing and sales: Tour operators also have role of marketing and selling tourist
products. In relevance with TUI Company, it makes huge tour packages within distinct
market including national and international so that sales volumes at hight level are
achieved. In marketing of tourist products, key roles are played by tourist operators.
 Advising customers: Tour operators plays function of advising customers about
available packages as per the budget. For example, TUI Company provides advises about
various destinations of travelling that suits the interest of customers (De Sausmarez,
2013).
 Travel information: Tour operators also execute function for delivering necessary travel
information to wide travellers. In relevance with TUI UK, the tour operator execute
function for providing up to date, timely as well as accurate information related to
destinations, accommodations, immigration, travelling modes and rules that permit
travelling for specific location or area.
 Operations support: Tour operators also supports other operational areas such as
planning accommodation, controlling hospitality services and many more. Tour operator,

such as TUI Company plays key role of supporting operations so that maximum
hospitality products and services are provided to customers that satisfies their choices
together with interests.
Explanation of scale as well as structure of tour operating industry
Position of tour operators in distribution chain
Tour departing industry is wide industry that includes huge types of tour operators.
Within UK, the estimated worth of Tour Operator industry is approximately £14.9bn because of
existence of various top trip operators (Tour Operating Industry, 2020). The distribution chain
explains the involvement of agents or operators within the travelling industry are linked with
each other. At present, the top positioned tour operators in the chain of distributing tourism
services and products are TUI Company, Jet2 along with Thomas Cook. Along with this, various
other tour operators that are also positioned on high ranks in the industry are British Airways
Holidays, Kuoni and Explore (Evans, Stonehouse and Campbell, 2012).
Profiles of key tour operators:
Key tour operators in tourism industry of UK are TUI Company and . Their profiles
which differentiate them from other tour operators are as discussed below:
TUI Company: It is one of top positioned tour operator whose origins lie within
industrial as well as transportation entity Preussag AG, that was originally set up as mining
company in Germany. From September 2007, the ownership of 55% TUI Company was within
new entity, TUI Travel Plc. Considering its market segment, the company divides entire market
as per behavioural and demographic aspects which are segmented as per attitude towards brand,
usage rate and many more. The company follows structure of tourism development in which the
entity provides updated information to customers in context to all related things in the tourism
industry so that they can enhance their proportion of tourists. Tourism Information Board is the
main authority that operates the structure for tourism industry. In terms of the scale, the
company have approx 70000 employees who are liable to serve more than 100 nations through
its products and services. It is analysed that it offers 27 million comprehensive services to its
customers from single source that differentiate the tour operator from others.
Jet2: The another top poisoned tour operator if Jet2 when is highly competitive entity of
TUI Group. It is evaluated that the tour operator has its origin from Dart Group which is an
aviation service addition to distribution group. The tour operator initiated its activities in 1983

with the name of Channel Express. Moreover, the ownership of the tour operator lies within
Philip Meeson of 37.85% shares. The market segment of Jet2 is done on the basis of geographic
segmentation only in which the targetted customers have differences in interests and their
preferences varies throughput states, regions or countries. The company follows transportation
structure so to deliver transportation system facilities to the targetted ones. Within the structure,
the company provides huge variants of transportation facilities including aircraft and many more
to meet demand of different market. In context to the scale, the company have nearby 12000
employees that offers services and products related to aircraft and travelling to 72 countries
which differs it from other tour operators (Guo and He, 2012).
Task 2
Outlining various stages as well as components for creating package holiday.
Creating holiday package is said to the process that involves various stages for designing
a suitable package for a holiday. For this, various workings are to be done in various phases that
leads in planning perfect trip. In order to develop a holiday package, managers of TUI group
have to undergo with various stages that will assist in creating effective holiday package. For
example, to create holiday package for educational tour as well as escorted luxury coach by
targetting students of above 18 years from London to Belgium that will visit few areas including
Ghent, Antwerp and many more in Summer 2022,
Following stages as well as key components in context to carrying holiday packages for
requirement of distinct tour operator:
Market research: At this stage, TUI Company managers will conduct market research
so to analyse needs of customers for holiday packages. The component in the market research
stage is interviews, trend analysis, competitive assessment and understanding needs that belongs
to different types of tour operations. In this stage, marketers of TUI Company conduscts market
research for recognising the preferences and trends that are more in demand so that they can use
the data for building trip package. It is the main stage wherein tour operator collect relevant
information about tourist destination, legal authorities, guidances and transportation facilities that
are preferred by the customers the most (Khairat and Maher, 2017).
Capacities: In this stage, tour operators evaluate the ways that will help in maximising
potential activities as well as production outputs under all conditions. They main component in

capacities includes opportunities within which various workings are executed to build an
effective trip package in accordance to requirement of various tour operators. Moreover, it also
involves workings towards recognising the expectations of tour operators for holiday package.
In this, TUI Company managers will measure the potentials that can be achieved, produces along
with sold in particular time frame. The calculate capacities of the activities that will assist in
achieving outcomes.
Contracting suppliers: After research about market and analysing capacities, the next is
to contract with suppliers or middlemen for conveyance, accommodation and ancillary services.
The essential components in building suitable holiday also include establishing relations with
suppliers that have information about location, transportation and so on in order to provide
suitable offerings to customer. For example, a supplier is the one who arranges transportation,
accommodation and other aspects concerned with a holiday package. Herein, production team of
TUI Company will contact with suppliers and will discus them about required components
including transportation modes, accommodation facilities, transfers along with ancillary services
for the holiday trip.
Pricing: Herein, prices for the holiday package will be set with the help of various
strategies. Key component in holiday package is the price involved in holiday package. To set a
price, various factors are recognised by managers of TUI Company including the direct cost and
indirect cost in the holiday package. The managers for respective holiday trip, will use pricing
strategies like seasonal flexing, skimming strategy and discounting strategies so to set suitable
and accurate prices according to the value of the holiday package (Lenahan, 2011).
Brochure production: After setting prices, the next stage is to produce a brochure that
will entails all relevant information about the package and other essentials. Brochures are
important component in devising holiday package. A brochure involves detailed information
about the holiday package as well as motivates different tour operations to chose their required
package. For example, travel brochure is perfect for holiday package as it entails about particular
trip package that aids tour operators in meeting requirements. Herein, TUI Company managers
will communicate with other departments so that an attractive brochure is designed which
attracts huge population or targetted customers for the holiday package.
Marketing and sale: In this, the holiday package is marketed and sold to targetted
audiences. Essential components of marketing are place, price, promotion and product for which

all the activities are performed sequentially. For example, TUI company has devised a product in
this case is holiday package, price is the monetary value that customer or tour operators pays,
place is the distribution system and promotion includes the ways in which it will be marketed in
among tourists. Through using marketing strategies like paid advertising, word of mouth,
transactional marketing and diversity marketing, targetted population will be attracted towards
the holiday package and maximum sales volume will be achieved. The essential components in
marketing and sale are online advertisements, communication channels and social media tools
which will help in promoting the tour package and improving sales volume of it.
Critical path analysis: In this stage, all the tasks will be mapped out for completing the
project. In relevance to creating holiday package effectively, the stage is importance as it map
out all the necessary activities and involves identification of time for finishing all activities along
with the dependencies of activities on others. Essential component in building holiday package
includes the activities which are scheduled to achieve final location. For example, the holiday
package designed by TUI Company includes activities or the paths through which travelesr will
go through to meet their final requirements. In relevance with creating holiday package by TUI
Company, the stage defines important tasks and provides highest insights levels along with
correlation among tasks, providing understanding for task duration that are required to modify
and which are to be performed as same (Luis, Dolinskaya and Smilowitz, 2012).
The timescale for the each activity or scale regarding creating holiday package for, it is as
follows:
Activities January
01 to
January
25
January
23 to
Februar
y 20
Februa
ry 26
to
March
31
April
01 to
April
25
April
26 to
May
05
May
06 to
May
25
May
26 to
June
05
June
06 to
June
30
Market research
Capacities
Contracting supplier
and pricing

Brochure production
and marketing with
sales
Critical path analysis
Define and forecast changes in consumer demand by using sources of research
In changing environment, the needs of people are also changing so they are demanding
for new products and services which can satisfy them and make feel them happy. This is
important for organisation to know the needs of people and provide products accordingly which
can help to improve the production and profitability. Without knowing needs of people a
business organisation cannot get success because it needs information what people wants and
how they can be satisfied. Evaluation of customer's needs is consider as main information factor
which helps to complete the goals and increase organisational profits. Forecasting is the process
of making predictions of the future by interpreting the past data and present data. In business,
there are different types of people who are demanding variety of products that is important for
corporation to provide products accordingly. Forecast means to introduce something firstly than
action which states the accessibility of business operations. In context to TUI, management are
using forecasting tool which helps to perform well and increasing profits. In this organisation
management understand the needs as at what package people want to get hotel, airline and
staying services which helps to provide them that kind of products and services and maintain the
production level. In other words, management are focusing on changing pattern of consumer
demand and make them satisfied (Naji-Azimi and et. al., 2012).
There are different types of factors which can affect the consumers and their needs which are
defined as:
Economic effects – This can be consider as effective changes which are changing the
demand of customers. This is important for organisation to prepare travelling packages as per
income effects of people. This factor influences TUI as it understand different need of people
and introduce holiday travelling packages for classic, economical and luxurious customers which
helps to perform well. This factor may impacts operation of TUI which is defined as:

Positive – By introducing different packages as per customer demand it attracts
customers and encourages them to buy products and services from TUI and increase the
productivity effectively.
Negative – In, business environment people are having different income and TUI is
introducing travelling packages by charging higher amounts from customers and classical people
select other organisation which has impacted negatively as less in number of customers as well
as profit.
Social effects – In current market, the needs, culture, beliefs and attitude is changing
where customers are demanding products as per their status and increase the organisational
profits. In context to TUI, management are focusing on demographic of the population, ages and
lifestyle of society which helps to satisfy the customers.
Positive: By considering needs and lifestyle of people TUI is increasing its travelling
activities and develop more packages which increases operation of business organisation.
Negative: Not focusing on changing demand of customers the operational activities of
TUI would fall and decreases the profits.
Technological effect – This is another factor which has influences the operation of
business organisation by introducing new technology. In context to TUI, management are using
new technology which has impacted on business such as:
Positive – By using new technology, organisation process and operation become easy
which helped to improve the profits. Moreover, it help to reduce the cost and time taken activity
which helps to improve the profits.
Negative – This can be create higher cost for TUI as to adopt new innovation there is
need to invest high amounts which is risky for organisation.
Above are the pattern due to which consumer demand are changing which affects the
organisational activities and make efforts to achieve the business goals effectively.
Uses of different research methodology and sources of research
Capacity and contracting – This method states that organisation should have capacity
and contract to introduce the travelling packages in industry. Such as in TUI, the capacity of
student is 50 who are travelling by using a special rate. The process of contracting includes
transport, accommodation and ancillary services which helps to attracts people and increase the
organisational performance (Moutinho, ed., 2011).

Pricing – This method states what pricing strategy is adopted by management in order to
attracts customers. There are different pricing strategies such as seasonal, competitive, special
offers, discounting and price skimming which attracts customers and retain its customers. In
context to TUI, management are using competitive pricing strategy where it set the prices lower
than its competitors resulting increase in number of customers and high productivity (Naji-Azimi
and et. al., 2012).
Holiday package for the tour
Name of package: Educational tour package
Targetted population: Adult students (Age group between 18 to 25)
Target place: London, UK to Belgium
Targetted number of students: 50
Tour inclusions: Tour is for 7 nights in the city of Ghent an surrounding places.
Prices:
Particulars Cost of tour
Visitor attraction charges £55
Luxury Coach £9157
Local tour guide cost £960
Total £10172
Margin of profit 25%
Total £12715
Task 3
Review the content of range of packages tour programmes which serve similar product market
Tour operation is associates with tour and travel components which are used to create
holiday packages. In business environment, there are many tour operators who are running tour
programmes in order to inform people and increase the organisational productivity. With the help
of tour operators organisation get information which type of tour packages wants customers and
how they can be satisfied (Robinson, Heitmann and Dieke, eds., 2011). This organisation is
running luxury tour programmes for students in which it provides different services at

discounting rate and increase the number of customers. By introducing new packages according
to season, holiday, special offer and demand of customers organisation recognise the similar
products. In context to TUI, using different types of packages tour programmes are as defined:
Tradition brochure - It is related to tourism and travelling, where design of brochure is
required real understanding of psychology of audience and what customers are looking in
tourism brochure. The planning process of brochure starts with “first impressions” and works
which includes colour, photos, content and many more. This is prepared by management in order
to provide information about different packages which are running in order to increase the
organisational performance (Scherrer, Smith and Dowling, 2011). In travelling agency, strategic
marketing plan is prepared by managers who analysis the needs of people and develop the
market plan which helps to maintain the production.
E- Brochures – It can be identify as important aspects of brochures which supports the
tour operator to provide necessary data and packages to its customers which helps them to chose
best one. TUI, is tour operator company who uses E-brochure in order to provide relevant data
and information about tour packages as well as accommodation which attracts customers and
increase effectiveness (Luis, Dolinskaya and Smilowitz, 2012).
Printed – This is another tour programme in which organisation print the tour packages
in order to attracts customers and provide them information. This involves different types of
design, structure and style which influences customers and encourages them to buy products. In
context to TUI, there are different type of luxury tour programmes which are designed according
to special requirement and increase number of customers.
Online – This is another way to running tour programmes which involves websites and
sources which helps to aware the people and influence them to purchase such products and
services. In context to TUI, management run online programme by creating website and
promotional activities which helps to provide tour packages and give option to select best one.
Advertisement – This involves different ways which can be use to inform people about
new tour packages and accommodation services resulting incremental in number of customers.
In context to TUI, uses different sources for tour programme and selling the packages which
attracts customers and maintain the profits (Ţigu and Călăreţu, 2013).
Social media – This is important part of tour programme which is used by management
in order to provide information and increase the number of passengers. TUI, is using mass

media, you tube, Instagram, google, twitter and various sources and other which are used to
provide information and increase organisational performance.
The above brochure was for the tour to Gint which was organised by trips and Tours. The
price of the tour was € 59. It was organised for only 1 day in which accommodation no
accommodation were offered. The transportation and other facilities were limited.

This is the another brochure related to trip to Belgium. It was also organised for 7 day
and the price was $1695 that covers facilities related to airfare, hotels and many more. It was
organised by Porterra Travels. The trip was organised for December 12 to December 19, 2018.
Comparing and contrasting a range of package tour programmes which serve a similar product
market
Tour packages are introduced by operators by understanding different demand of
customers and make efforts to satisfied them. In UK there are many tour operators who are
increasing their organisational performance by running various tour programmes which helps to
provide the information and encourages them to buy tour packages. Therefore, organisation set
the prices of tour packages by analysing other organisation which helps to maintain the suitable
cost and accommodation services. This is important for organisation to compare the similar
products and services which are provided by other organisation and make plans to provide their
products and services at large number (Wu, 2016). In context to Trips and tours, the tour was
organised for small children with limited facilities. However, the similar tour organised by
Porterra Travels that was also of 1 day but in this, this the tour operators offered few of services.
Both organisation are providing travelling services and tour packages to its customers which
helps to influence customers and increase the organisational profitability. The comparison of
range of tour programmes among Porterra Travels and Van der Valk Hotel.

Porterra Travels Van der Valk Hotel
The products of Porterra Travels are Charter
and scheduled passenger airlines, package
holiday, cruise lines, hotels and resorts which
attracts customers to buy them.
The products and services of Van der Valk
Hotel are holiday packages, cruise lines,
various accommodation services and others
which attracts people and sale them airline
services.
Belgium was the only destination of the tour
organised by this company.
Ghent, Brugge, Ostend, Antwerp, and Brussels
are some of destinations in the educational tour
of Van der Valk Hotel.
The tour was only for 7 day and that cost
$1695 with limited destinations to be visited by
the targetted population. Only limited
accommodations facilities are also offered by
the traveller.
This tour is organised for 7 days that will cost
around 130 euros to a single student. Various
types of accommodation will be provided
along with travelling and tourism facilities.
Similarities and contrasting a range of package in order to services similar products
 TUI and Trailfinders are proving airline and travelling services, by formulating
strategic marketing plan which helps to improve the organisational performance.
 The main aim of both company to deliver quality of product and services in
travelling industry and make higher profits.
 Both organisation are adopting competitive and economic pricing strategy in
order to serve their similar products.
 Both are focusing on promotional programme such as advertisement, brochure,
online marketing and social media which provide information and sale them
services.
Evaluation of range of package tour programmes which are serving similar product market
There are different type of organisation which are running their business by using
different programmes and activities. In market, organisation has competitors which are selling
similar products and services by comparing with other and make right business decisions. TUI is

largest organisation which is providing tour packages and airline services which helps to
improve the business performance. This organisation is using luxury tour programmes and
educational programme which helps to provide information about tour product in market. For
instance, TUI is introducing new tour packages for its target customers at competitive pricing
strategy which helps to improve the organisational performance. In this, management of chosen
company analysis the services and make efforts to provide travelling services which attracts
customers and increase the business activities (Guo and He, 2012). From the discussion it has
been recommended that luxury tour programmes are the best programme which is used to
provide information about new packages and pricing strategy which influences customers and
make profits. With the help of this programme management increase the number of passengers
as organisation is providing different services and maintaining the business activities. This
programme is used to understand the needs of customers and provide them products accordingly.
Task 4
Explanation with examples of strategic and tactical decision making in tour operations
Strategic decision are the decisions which are associated with whole environment in
which the firm operates business activities, entire resources and mage the business performance.
This is important for business organisation to make strategic decision by introducing product and
services. Decision are made by management by analysing needs of people and provide them
products accordingly. In other words, it deal with harmonizing company resources capabilities
and states opportunities as well as threats. Tactical decision considered as decision which is
taken on regular basis by tour operators in order to execute the day to day operations. For
example, TUI has decided to increase their business activities by improving the organisational
performance. For this, tour operate make strategic decision by involving such aspects:
Images of tour operator and branding – This affects the behaviour of customers and
encourages them to buy products from TUI organisation. This helps to gain the customer loyalty
and brand image of entire business (Hoyos, Morales and Akhavan-Tabatabaei, 2015).
Variety of packages – This is another which is consider in strategic decision such as the
tour operator of TUI offers variety of packages that attracts customers by offering different
features, places, regions and hotel facility resulting increase in sight of customers.

Decision regarding distribution – The tour operator of TUI make strategic decision
distribution process by identifying method and purpose of distribution which improve the
organisational activity.
Funding – This aspect is related with investment decision which helps to increase the
production and profitability. In context to TUI, management make decision regarding investment
in order to increase business activities and tour services.
Therefore, all decisions are taken by tour operator in order to increase the organisational
performance and productivity. Moreover, management of TUI make decision through market
positioning as it has up market position which remain competitive pricing of its qualitative
products, resulting high performance in target market.
Assessment of external factors which affects adversely strategic and tactical decision and
recommend response
Strategic and tactical decision are taken by tour operator by evaluating external factors
which has impacted on business operation. In context to TUI there are many factors which can
affect the strategic and tactical decision of management such as:
Political and civil unrest – This factor is related with instability of political system and
civil unrest in UK which has impacted negatively on day to day operation of TUI organisation.
For instance, changes in political system and civil unrest reduces the productivity of business
organisation because organisation need to follow new rules and regulation which are difficult to
follow.
Natural and man made disaster – This factor is related with environmental factor
which states natural disaster and man made disaster affects the strategic and tactical decision of
TUI organisation. For instance, tour operator has made strategic decision in order to increased
the number of passenger and selling the tour packages. In UK, there is natural disaster has come
due to which all activities are affected negatively and profits also can be affected badly.
Currency fluctuation – In UK, there is change in currency as it decrease which affected
decision of TUI organisation adversely. For instance, decrease in value of UK currency reduces
the production level as well as profitability.
From the above mentioned factors it has recommended that tour operator should make
strategic and tactical decision by considering external factor which may impact on day to
activities. If there is change in currency, political system, civil unrest and natural disaster then

organisation faces challenges. For facing this challenges organisation need to make strong
planning and focus on needs of people which can help to perform well and increase performance.
Critical evaluation of strategic and tactical decisions
From the above it has been evaluated tour operator of TUI organisation should evaluate
all strategic decision and action which helps to improvement the activities. TUI is making
decision regarding pricing, promotion and marketing strategies which helps to compare with
others and make efforts to increase the business performance. On the other hand if not having
strategic pricing and promotional strategy then it cannot get improvement in its business
activities. Thus, it has recommended to tour operator to make strategic planing regarding price,
product and promotional activity which helps to improve the business operations effectively.
CONCLUSION
From the above it can be concluded that tour operation management means an activities
which is required to manage and operate by management. To increase the business activities
there is need to focus on different factors which can affect the operation and increase
profitability. The tour operator of organisation design a tour plan and packages for its targeted
customers which attracts customers and increase the business operation. Strategic an d tactical
decision are taken by management in order to improve and increase profitability. In tourism
industry there are different role, scale and structure of tour operator which attracts people and
run business effectively.

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<https://www.hallidays.co.uk/views-and-insight/sector-report/tour-operator-industry>
(Allahyari, Salari and Vigo, 2015)(Evans, Stonehouse and Campbell, 2012)(DiPietro, Cao and
Partlow, 2013)(Bazargan, 2016)(De Sausmarez, 2013)(Evans, Stonehouse and Campbell,
2012)(Guo and He, 2012)(Khairat and Maher, 2017)(Lenahan, 2011)(Luis, Dolinskaya
and Smilowitz, 2012)(Naji-Azimi and et. al., 2012)(Moutinho, ed., 2011)(Naji-Azimi and
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2011)(Luis, Dolinskaya and Smilowitz, 2012)(Ţigu and Călăreţu, 2013)(Wu, 2016)
(Cook, Hsu and Marqua, 2014)(Guo and He, 2012)(Hoyos, Morales and Akhavan-
Tabatabaei, 2015)