Tour Operation Management: Analysis of Trends and Development in the Tourism Industry

This report focuses on recent trends and developments in the tour operations industry, including the effects of technology, expansion of airlines, and mass market tourism. It also evaluates the stages and time-scale for developing holiday packages and assesses the sustainability of different methods for contracting various components. Additionally, it discusses the cost of components and selling price of holidays, and explores alternative methods of communication and promotion for different types of tour operators. Finally, it examines non-traditional methods of distribution for holiday packages.

TOUR OPERATION
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Analysis effects of current and recent trends in tour operations industry.............................1
TASK 2............................................................................................................................................2
2.1 Stages and time-scale for developing holidays packages......................................................2
2.2 Evaluate the sustainability of different methods for contracting various components..........5
2.3 Cost of the components of packages and selling price of holidays.......................................6
TASK 3............................................................................................................................................7
3.1 Design and plan brochure......................................................................................................7
3.2 Assess the suitability of alternative methods of communication and promotion for different
types of tour operators.................................................................................................................7
3.3 Non-traditional methods of distribution which can be used for set holiday packages for
different types of tour operators..................................................................................................8
TASK 4............................................................................................................................................9
4.1 Different types of tour operators’ responses towards trends.................................................9
4.2 Tactical decisions which could be taken by chosen tour operator in different situations. . .10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Tour operation management consist important role in the tourism industry which determines
distribution channel. In distribution channel company catering for outbound, inbound and
domestic tourists (Bellman, 2015). Organisation of tour operations integrates with other tourism
enterprises to make the link between tourists and services providers. Present study based on
Thomas Cook group which leading in tour management of airline industry. In addition to this,
they are engaging in the hospitality sector in which company provides better services to their
customers. This report focuses on recent trends and developments of tourism to operate business
in different areas. Furthermore, it evaluates stages and time-scale for developing holidays
packages. Moreover, it determines design and plan to measure process and planning decisions
through proposed brochure. Lastly, report covers comparison of the tactical decisions which can
be taken by selected tour operator in different situations.
TASK 1
1.1 Analysis effects of current and recent trends in tour operations industry
Thomas Cook group was engaging as a tour operators in UK. They are organised, making
arrangement and prepare holiday plans for tourists in all over the world. When a company is
making their plans, various trends considered which create effects on their development (Brunner
and Stolletz, 2014). These factors are as follows: Technology: Nowadays, technology creates major role for travellers when they are
booking tickets through online (Dhiman, 2012). For these, Thomas Cook group need to
adopt advanced technology system which helps to operate functions in an effective way. Expansion of airlines: Thomas Cook group provide quick, fast and cost effective airlines
services which help them to attract potential customers.
 Mass market tourism: According to this tourism, an organisation considered whole market
and avoided to focus on particular goal (Espíndola, Fumagalli and Henriques, 2013). It
will assist to increasing customers towards Thomas Cook group.
Types of Holiday packages Domestic tour packages: In domestic holidays packages, Thomas Cook group arrange the
tour for those people who are living within the boundary, and they want to travel in the
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same country. In this aspect, the company provides various services such as transport,
entertainment, accommodation and many more things (KhairatP0F and Maher, 2012). Outbound tour packages: In this context, cited firm arrange tours for those people who
belong to other nation and want to travel in another place. Thomas Cook group arrange in
this multinational tours packages for their customers. Inbound tour packages: Thomas Cook group also arrange tours for the non residential
person who want to travel in other nation. This types of tours mainly called as
multinational tours for travellers (Lin and Tseng, 2016).
 Special tour packages: Specialist tour packages are organised by Thomas Cook group in
which they make arrangements for customers such as hotel booking, reservations, food
facility, etc.
TASK 2
2.1 Stages and time-scale for developing holidays packages
There are various methods through Thomas cook group can expand their business easily.
It is essential to them to determines stages with time-scale which helps to arrange holiday
program (Lovrić, Li and Vervest, 2013). Cited firm mainly focusing on wide arrangement of
customers base to increasing their operations.
Chosen business take various consideration which considered major factors which are
related to the planning of the company. In the UK 20 students planning for Liverpool which is
recognised as Maritime Mercantile City as natural world heritage site.
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Another destination which is want by students is Westminster Abbey, is the burial place of score
of great Britons.
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Illustration 1: Liverpool of UK
Illustration 2: Tower of London

With the help of following stages company can be designed their holiday packages for UK
students: Market investigation: For evaluating the market, it is essential to conduct the proper
research program related to competitor pricing, their products, availability of
accommodation facilities and many more things (Mary Ann Anderson and Parker, 2013).
Thomas Cook group need to identify current trends of the UK market so that
accommodation and transportation facilities can be provided by cited firm according to
recent events. Programming: After conducting research program, next step is considered as scheduling
or programming in which Thomas Cook group collect information related to customers
who want to make arrangements for travelling. All essential information require for
making an arrangement which can be made the effective program at a workplace
(Masterman, 2014). Forecasting: When Thomas Cook group know about competitors price, they need to
forecast price and need to give an estimation for all tourists. The company need to manage
details regarding accommodation, hotel facilities and food structure, etc. (Mok, Sparks and
Kadampully, 2013). It will assist to demonstrate essential things at the workplace. Contracting: After considered forecasting, Thomas Cook group need to take contacts with
transport organisation, hotels for accommodation and other suppliers, etc. They should try
that no conflicts can be occur at workplace regarding hotel booking and other reservations
(Ronen, Pliskin and Pass, 2012). Pricing strategy: After making arrangement for all facilities, cited firm need to make
pricing on their packages. They have to know about actual price for making arrangement
for holiday packages. Designing: In this step, Thomas Cooks group design for their brochure in which they
demonstrate for packages and arrangements. In this context, company arrange timing for
flight, departure date and hotel bookings, etc. (Sennewald and Baillie, 2015).
 Implementation: In final stage cited firm collect payment for developing the operations. In
this context, an organization can achieve their goals in the best manner.
Day 1 Date
February 3, Friday
Time-scale
5: 30 AM
Activities
Departure
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Day 2 February 4, Saturday
7: 45 AM
8: 40 AM
11: 00 AM – 5: 00 PM
5: 30 PM
10: 00 AM
10: 30 AM – 5: 00 PM
Terminal
Arrive
Liverpool
Comes to Hotel
Going from hotel
Tower of London
Time-scale for accomplishing activity
Activities in months 1 2 3 4 5 6 7 8 9 10
Market investigation
Programming
Forecasting
Contracting
Pricing strategy
Designing
Implementation
2.2 Evaluate the sustainability of different methods for contracting various components
There is a various type of contracts that can be taking by tour operators for organising functions
functions. Thomas Cook group take two kinds of contracts which can be chosen within the
operations. This is considered as fixed and sale contract which has advantages for the
management of accommodation services and transportation facility as well (Su, Yang and Cho,
2014). Contracting methods can be explained as follows:
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 Fixed contract: This types of the contract determines several benefits to company for
ensuring suitable method which is based on their volume. It includes maximisation of
revenue in peak season. According to customers requirements, this contract is taken for
booke transportation services within the enterprise (Wang, 2012). As compare to this,
payment is taken as determining capacity utilisation. Tour operators mainly face risk in
this context due to non-utilisation of whole capacity. In this aspect, the firm makes'
development for tour packages for getting less chance to fell within the environment.
Fixed contract has benefit to make higher discount which facilitates to the organization for
attracting potential customers (Ward and Peppard, 2016).
 Sale only contract: In addition to this, Tour operators need to take sale contract to design
and making facility for several types of tour packages. In this aspect, high standards
people can easily make a payment related to hotel and transportation as well (Wu, 2012).
2.3 Cost of the components of packages and selling price of holidays
Thomas Cook group offer their services to UK students and their selling prize considered as
follows:
Services Selling price for one child (in
£)
Selling price for one adult (in
£)
Ticket price 180 250
Accommodation changes 160 245
Food charges 92 198
Transportation charges 215 165
Price for UK destinations 265 610
Total 812 1468
The pricing structure of Thomas Cook group is considered in above aspect. Mainly price for UK
destination is very high then other facilities. Students of UK wants to visit Liverpool and Tower
of London in which cited firm arrange it for two days. In addition to this, chosen enterprise also
deliver accommodation facility which increases total cost of the tour. They mainly try to serve
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satisfactory packages to increase the loyalty of customers towards cited organisation (Xu and
Gursoy, 2015).
TASK 3
3.1 Design and plan brochure
Covered in the poster.
3.2 Assess the suitability of alternative methods of communication and promotion for different
types of tour operators
The traditional brochure is the format which is utilised as pamphlets. The main purpose for
utilising this system to advertising company products in an effective way (Lovrić, Li and Vervest,
2013). Different types of the brochure can be considered by Thomas Cook group which can be
considered in these days. It is the best way to enhance utility of cited firm services through they
can easily target in a large marketplace. In recent time E-brochure is maximum use which created
by digital platform for the products and services of company. This system is mainly considered as
offering to give greater benefits for customers needs to utilise both methods in effective manner.
According to suitability of customers, cited firm can use contract to develop their operations in
the best manner (Brunner and Stolletz, 2014).
Another method is to promote for brochure is encourages their customers towards the positive
reviews. In this context, Thomas Cook group take views and ideas from customers regarding their
perceptions. With the help of email, company encourage to customers of their experience to
different sites (Ronen, Pliskin and Pass, 2012). When cited firm adds activities and tours in an
itinerary, travellers are more personalised. In addition to this, another method is considered as
enhancing activity with descriptions on organisation website. They can make their operations to
attract customers with the use of brochure. For instance, attractive nature of UK can be design as
attractive and colourful so that UK students are highly satisfied with cited firm packages
(Espíndola, Fumagalli and Henriques, 2013).
E-brochure helps to make quick decisions at workplace because it takes place as flexibility. In
this context, customers can easily get relevant information regarding their tour packages
anywhere. It will be helpful to Thomas Cook group to deliver effective services for enhancing
revenue within an organization. According to customers perception and their requirements, they
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deliver services which can be assisted to make planning for future activities (Lovrić, Li and
Vervest, 2013).
3.3 Non-traditional methods of distribution which can be used for set holiday packages for
different types of tour operators
Distribution takes important place which determines the expansion of business in an
effective manner. Apart from a brochure, Thomas Cook group has various methods for
distribution and selling their packages in various parts of the nation. In the company, distribution
channel depends on organisation packages which they considered for passengers (Ward and
Peppard, 2016). According to target market chosen enterprise make channel within the
marketplace. Small enterprise generally makes their operations due to limited resources in the
company. Following methods can be considered within cited firm:
 Direct selling or retail outlets: In this type of channel, Thomas Cook group can direct
control over the business. Face to face communication take place for handle queries with
the help of agents (Mok, Sparks and Kadampully, 2013). Retail travel agents take these
types of the channel because they have limited resources which consist important aspect
for the company. They are using the local centre for any query regarding travel.
 Wholesale: Tour wholesalers also take services in another country for making operations
in an effective manner. They are selling products directly to retail or online for taking
place in the market. They considered their operations for every individual with making the
link with packages (Lovrić, Li and Vervest, 2013). They are offering different packages
according to person demand and then match it with their system. They make their products
with suppliers to sell through websites.
 Selling through the Internet: Internet and E-commerce take effective medium through
operators can easily promote their services in wide group of people. The International tour
generally select other country people. In this context, they can use, social sites such as
Facebook, Twitter and many more sites (Su, Yang and Cho, 2014). With the help of this
system, customers can easily compare their products in and choose best from that. It will
assist to them to take benefits from their products in the best manner.
 Catalogues: With taking this system, small operators promote their services effectively.
Catalogues offer customers brief ideas regarding tourist destination, a price for it, and
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other facilities which they provide in travelling. It passenger take it, customers can easily
choose service which they want (Xu and Gursoy, 2015).
TASK 4
4.1 Different types of tour operators’ responses towards trends
In the marketplace, there are various types of tour operators take place in the tourism
business. Different organisation take distinctive decisions with taking diverse strategy according
to working area, customers’ database and budget, etc. Following decisions can be taken according
to trends:
Price strategies: In this aspect, the company can take three types of price strategy for particular
product and services (Espíndola, Fumagalli and Henriques, 2013). It means that how much cost
was taking in packages, how much amount can be easily paid by customers and competitor price
for same product or services. Different tour operators take distinctive strategy for pricing.
Domestic tour operators have the low budget, and they take low competition in the market so that
company is set low price for their products and services. Due to high competition, Thomas Cook
group set their price after analysis customers demand and competition in market.
Positioning and branding: Different tour organisation use distinctive strategy for making their
brand and position in the market (Lovrić, Li and Vervest, 2013). This can be depending on
comfort zone and luxury brand of customers which they want from the organisation. Major tour
operators take their concentration on cost factor which helps to maintain the company position.
Thomas Cook group provide luxury services to their customers with giving them advance
booking facility in hotels. This is because customers are satisfied which create the positive impact
on cited firm.
Choice of product: Different products of operators take variation in their operations. Due to the
variety of products, customers have the choice to select the best one which they want. Thus,
company design as per budget and customers' requirements (Lovrić, Li and Vervest, 2013).
Distribution decision: Domestic tour operators use simple and direct method for distribution.
Inbound tour operators mainly considered the internet, online medium to advertise their products
in the market. Special tour operators has a various database which helps them to deal in the mass
market with huge customers.
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These strategies can be used by different tour operators to operating their functions. It will assist
them to enhance their profits by attracting potential customers towards company products and
services (Ward and Peppard, 2016).
4.2 Tactical decisions which could be taken by chosen tour operator in different situations
Tactical decisions are playing very important role within the organisation which make
support to strategic decisions. It will be helpful to develop a business plan, structure and
distribution channel etc. These can be changed according to market trends and situations. As
results, the company will easily achieve their goals through making decisions in which they can
enhance organisation performances.
In addition to this, tactical decisions also help to a decision maker to analysis current
situations of the business environment. It will assist to focuses on determining standards and
increasing the quality of products and services at a workplace (Espíndola, Fumagalli and
Henriques, 2013). Thomas Cook group consist that customers are main resources of the
organisation for them they serve duty effectively. They make communication with their customers
transparent and easily. Recently they take place in the market as the leader which giving products
and services effectively. They continuously implement new technologies for taking place in the
marketplace. It will be helpful to them for making their brand reputation for delivering effective
services to customers. All accommodation which they provide to customers are personally
checked by the organization and confirm standards of the company.
Tour operators should make changes in their strategies according to the situation (Xu and
Gursoy, 2015). Various situations occur which create a negative impact on the price of company
products and services. If currency fluctuates then operators need to make changes in their pricing.
If rates are increasing, then it create the direct impact on the cost of company packages. In
addition to this, any changes not directly affect to the organization so that Thomas Cook group
have to maintain their standards for any situation. It will be helpful to manage the organisation
functions and enhance profits to make the focus on customers' requirements (Su, Yang and Cho,
2014). Further, cited firm have to make focus on their good yield management through they can
increase profits easily.
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CONCLUSION
From the above report, it can be concluded that tour management plays very important
role within the country. In the UK, there are different types of tour operators take place which
contributes effective role to make holiday packages. They advertise themselves by several
methods in which they can arrange holiday packages in a different part of the nation and other
areas as well. They make advertisement through the distribution channel and adopting strategies
to promote themselves.
In addition to this, brochure design considered important role within the enterprise through they
can attract customers easily. The company has different types of strategies such as direct sell,
agency and the internet, etc. It will be helpful to promote the business activities in an effective
manner. Furthermore, it can be concluded that strategy and tactical decisions create an important
aspect to promote the organisation. In this way, cited firm can easily enhance their profits through
various parts.
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REFERENCES
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