Literature Review on Tour Operations Management

This assignment is a comprehensive literature review on tour operations management. It includes a list of references to various studies, articles, and books related to the topic. The studies cover different aspects of tour operations management, such as sustainability in tour operator business, cruise operations management, and multi-vehicle covering tour problems. The literature review also touches on tourism development in slums, disaster relief planning, and humanitarian aid distribution. The references provided are a mix of academic papers, books, and online resources.

Tour Operations
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Influence of current and recent trends on travel industry.....................................................1
TASK 2 ...........................................................................................................................................3
2.1 Timescale and stages involved in developing holidays........................................................3
2.2 Different approach of contracting various elements and types of tour operator...................4
2.3 Calculating the cost of entire holiday plan............................................................................5
TASK 3 ...........................................................................................................................................6
3.1 Evaluate Planning Decision related with designing of selected brochure............................6
3.2 Suitability of alternatives related with traditional brochures................................................7
3.3 Different methods of distribution used in order to sell tour package....................................8
TASK 4 ...........................................................................................................................................9
4.1 Strategic decision made by different tour operator...............................................................9
4.2 Compare the Tactical Decision...........................................................................................10
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................13
.......................................................................................................................................................14

INTRODUCTION
Tour operation consists those process and plan which support in giving different and
better quality of visitors and effective tour packages to audience (Tour Operations Management,
2014). It renders various facilities through which visitors can visit different places within the
outside the country. Travel and tourism industry have different sectors such as food and
beverages, tourism lodgings, transportation, retail and so on. They also apply latest and current
technologies and many other resources which output in quick development and progress of this
sector (Allahyari, Salari and Vigo, 2015). It is a fastest flourishing industry worldwide and
having significant involvement in the GDP of country. In this tour operation management mainly
considered as planning, market evaluation, implementation and controlling of the activities and
tasks to meet the companies objectives and retain the functions flow in professional manner. In
present assignment, given organisation is Thomas Cook, it is an integrated travel and tourism
industry related to financial service headquartered in London, UK. This report divided into
different tasks which are cover effects of recent and current trends and stages which involve in
developing holiday. Review of brochures and methods of distribution also involved in this
project. At last, tactical and strategic decision making for operators also analysed in this study.
TASK 1
1.1 Influence of current and recent trends on travel industry
There are different kind of tour operators including domestic, outbound, direct sell,
incoming and specialist. These are determined as below:
Inbound tour operator: It is a type of operators which are chiefly deals in inbound
international visitors and render them effective facility related to sightseeing, transportation,
accommodation, currency, entertainment and so on (Bagan and et. al., 2013) .
Outbound tour operators: Main role and responsibility of such operators is to advertise
and promote tourism services and products in order to attract international clients. They sell tour
package of domestic country to people of foreign nation.
Domestic tour operator: It is also main part of the tourist industry and role of this to
control entire market. In this, operators develop their own place effectively.
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Thomas Cook which is a travel and tourism sector in United kingdom has impacts of tendency in
business activities and operations. There are several effects which are analysed by the company
are determined as below:
Changes in technology: Traditional method to reservation or book ticket regarding the
tour package is replaced with modern technology. Thomas Cook is applying mobile app,
websites and many other internet sites to facilitate clients at door phase to deal with packages
and tickets (Bhatia, 2012). Thus, it help the customers to obtain necessary information and data
about tour packages.
Climate awareness: It is the role of manager is to handle the availability of tour packages
about the awareness of climate at tour destination. In this business analysis the customer and
better place where they can provide their effective services and products to the customers. For
example: if a destination is more amazing and awesome to travel in winter, then, Thomas Cook
conduct special programs to attract as well as aware large number of visitors regarding the
sightly impression of environmental condition at destination.
Diversity: World and environment is flexible due to different variation in religions,
culture, caste and many other modification. So, travelling agency has to analysed different
business conditions and make goods as well as provide tour packages as per the customers taste,
preferences, needs and many other (Chaumont and Yor, M., 2012). Thus, outputs of this in the
happiness and satisfaction of visitors.
All these are main effects which are hinder on business operations and activities. It is the
role of trade bodies including, Federation of Tour Operators and Association of Independent
Tour Operators are determined as below:
Federation of Tour Operators: Main role and duty of this group is to ensure the long
term growth and progress of tourism sector by causing legal authority and thought formers on the
advantage to customers and many other stakeholders.
Association of Independent Tour Operators: It is a British based tourism industry that
represents approximately 120 expert and autonomous tour operator. They have complete
protection of consumer in destination. It also causing policy that impacts travel industry and its
consumers.
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TASK 2
2.1 Timescale and stages involved in developing holidays
In order to developing effective holiday package, role of tour operators is to develop a
proper stages which would assist in acquiring better outputs and implement the profitable and
most appropriate tour package. Thomas cook would apply the different steps which are
determined as below:
Market research: It is a first part of the research which is important for the tour operator
in order to analysis customer and better destination where tourist are visit. It is essential activity
in which company would be analysing and gathering necessary data regrading the market
tendency as well as the attraction of the place (Dodds and Kuehnel, 2010). These informations
are mainly related with weather conditions, events, culture, accommodation, main attractions,
food, security and safety and many other.
Negotiations with many other marketers: After gathering entire information and data
related to market, the management of Thomas cook deal with other vendors of tourism sector
such as transport companies, airlines, hotels, car rentals, ground operators, sightseeing vendors
and many other. Therefore, business entity discuss with marketers as per the needs of tour.
Cost assessment of the tour package: It is important and necessary part of the business
activities and functions that effects on on its operations. Total cost of package consider the
payroll, research, accommodation, tourism, local arrangement and many other expenses.
Planning and scheduling: It is the responsibility of Thomas cook and its operator is to
plan entire journey and set an effective schedule for them. In this whole plans related to food,
destination, activities, events are included which are effects on business operations and activities
in an effective manner.
Administrative staff: It is next phase which is important for the company to gain
maximum amount of sales as well as attract large number of customers towards tour package
(Erdoğan, Laporte and Calvo, 2014). In order to render effective service, travel industry would
hire a temporary candidates whose are having proper knowledge regarding sense of ethics, good
humor, destination and decision making ability about easily convincing customers.
Evaluation of post package growth and development: With the implementation of
effective tour package, Thomas cook analysis the package with the support of clients comments
and many other parameters such as marketing activities, customers interest in the package.
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2.2 Different approach of contracting various elements and types of tour operator
In order to render best and effective facility to the visitors and deals out the tour package,
Thomas cook come up into prior agreements with various vendors of hospitality industry such as
hotels and airlines at the proposed places like France and UK for students for 6 days (Fei and et.
al., 2014). In this tour manager obtain into agreements prior one year. Thus they can provide and
negotiate with the marketers and earn maximum amount of money. There are different kind of
contact but Thomas cook mainly apply Ad hoc and fixed contract. These are determined as
below:
Fixed contract: In this contract, Thomas cook mainly emphasis on selecting collective
and qualitative methods via the sale ratio. They increase their capacity through maximising the
turnover and revenue. With the use of this agreement, tour manager of the company can aware
about the benefits of off weather by rendering more advantage and many other offers to their
target customers (Figliozzi, 2010). Under this, business entity is normally taking uncertainty
factor namely UN-utilized. Beside this, they are also capable and responsible to pay the accurate
amount of capital to the dealer who are giving same kind of services.
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Ad hoc: It is also important and another part of contract which is mainly included as the
essential way of scheduling for the necessary resources for the tour package. As per this
agreement, cost facility has been fix according to the activities, it is developed in the journey
either daily and hourly. It is essential and beneficial for the Thomas cook in handling all resource
of finance and obtains the substantiation by email and many other aspects.
2.3 Calculating the cost of entire holiday plan
As per the mentioned information in given assignment has been identified the cost of
tour package for UKCBS students and Other than UKCB students (Flores-Garza and et. al.,
2017). These is important for the visitors to visit different destination effectively.
Tour package per person for 7 days
For UKCBS students
Particular Amount
Entry ticket £80.00
Accommodation £45.00
Break fast £20.00
Dinner £15.00
Transport £90.00
Price of tour package £250.00
Add: Additional charges @40% of the price -
Total price of tour package £250.00
As per shown above table that described the cost of entry ticket, accommodation,
breakfast, transport, dinner and price of tour package for UKCBS student. Beside this, they
charge 40% of the price. So that total cost of the tour package is £250.00 which is appropriate for
the student to visit happily.
Tour package per person for 7 days
Other than UKCB students
Particular
Entry ticket £80.00
Accommodation £45.00
Break fast £20.00
Dinner £15.00
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Transport £90.00
Price of tour package £250.00
Add: Additional charges @40% of the
price £100.00
Total price of tour package £350.00
From the above mentioned table that determined the cost of tour package for other UKCB
student. In this cost of entry ticket is £80.00, accommodation price is £45.00, dinner cost is
£15.00, transport, £90.00, thus net value of tour package is £250 which is increase by 40%. so
that total price of tour package is £350.00 which is appropriate for the UKCB students.
TASK 3
3.1 Evaluate Planning Decision related with designing of selected brochure
In order to develop market plan and awareness that Thomas cook has created for student,
in this administration take following judgements for designing the effective brochure (Frenzel
and Blakeman, 2015). It will assist business entity to target the large number of customer group
and gain competitive benefits. There are some decision that will be seized by Thomas cook
management. These are determined as below:
Format of Brochure: It is one of the best and essential part of planning attractive
brochure in an effective and efficient manner. It plays vital role and responsibility as the people
become attracted towards the data that given by Thomas cook. In order to develop such plan,
administration could apply Z format in order to put data in various class which will be easier
informal for visitors to analysis and know. In this format of brochure, administration will render
the information or data regarding transportation service, destinations specification, price,
contract, accommodation as well as the plan duration including the goodwill (Gibson, 2012).
This format develop the state of mind and prosecute the target clients.
Paper quality: It is next part which is important for the tour operator of Thomas Cook.
For planning the brochure administration of enterprise will take an effective decision regarding
the paper quality as per the brand perspective. In addition, travel and tourism industry will
planned the smooth and glossy paper with aim for implementing brochure.
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Content: It is another important and essential part which is beneficial for them to make
an effective decision regarding the formatting, so in this administration would sized decision
regarding the matter of brochure. In the part of content, tour manager of Thomas cook will
includes the challengers informations and plans that has been given to clients, furthermore,
business entity will sized the judgement regarding the languages as per the target audience to
implement the content in an effective and efficient manner (Ha and et. al., 2013).
Graphics and colours: This factor highly effects on the design and plan of brochure that
maximise awareness of people in order to read brochure properly. Including this, Thomas cook
administration will make effective judgement regarding the selection of colour and graphics as
per the locations and summer session that have been chosen for travel and tourism industry.
3.2 Suitability of alternatives related with traditional brochures
The classical methods for promoting tourism products and facility in market were
traditional brochures attract large number of customer's towards products. There are chiefly four
kind of tour manager who are perform the business operations as per the resources and capacity
to meet with long term goals and objectives of organisation. Variation in marketing tool related
to globalisation as well as utilisation of internet related services has emphasised tour managers in
order to choose the various ways to render data via brochure. For instance: Outbound tour
enterprise like apply the online option for advertising the tour packages and achieve more
attention of clients. By applying the email activities and functions that, administration of such
enterprise could render the information or data regarding the plan with better design and full data
about the accommodation, transportation, local sightseeing and many other (KhairatP0F and
Maher, A., 2012) Apart from that, TUI is an inbound organisation that deal with international
visitors in direct way. In this they can apply E-Brochures for advertising and rendering data to
target audience easily.
On the other hand, ground and domestic level tour manager could apply traditional
brochure. Main aim of using this tool is to providing necessary data regarding the transportation
and recommendation, both are main facility which is render by Thomas cook. For instance:
domestic tour organisation is Kuoni that provide high service quality for local people and
developing tour package for niche place which could be advertised via traditional marketing
aspect of brochure. Such type of advertising is essential and beneficial for the company to easily
attract large number of the visitors as well as gain maximum amount of money in limited time
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duration. In addition, advertisement via email and website are core concepts and key tendency in
the tourism sector to achieve competitive benefits and reach maximum number of clients.
3.3 Different methods of distribution used in order to sell tour package
For delivery of brochures and data regarding the plan and package that has been
implemented by Thomas cook and many other organisation which are determined as below:
Direct selling: I is a type of distribution which is essential and beneficial for the company
to sell their tour packages to the customers who are interested for visiting different destination.
By applying this method, an enterprise will capable in order to make long lasting and strong
relation with target audience and maintain them by rendering the package or plan as per the
requirement and demands. This approach basically utilised by the domestic and ground level tour
operation with aim to develop awareness regarding the services and products in various class and
evaluate the requirement of customers who are targeted (Lee, Kim and Park, 2013). Furthermore,
option of direct selling for brochure distribution will assist the business to obtain attention of
customers and gather their commend regarding the selection of plan and service. This will assist
to chance service and operation planning to gain new standard as well as maintain strong relation
with clients.
Online: It is another essential and main technique's which is important for the Thomas
cook to maximise their sales and revenues in limited time duration. This method is highly used
by the Thomas cook because they are outbound enterprise. This technique's highly support
business organisation to cover entire area where they can offer their quality products and services
to the customers at reasonable cost. This tool also helped to save time and cost of company as
well as increase sales in given time period. For instance: this technique's could also be applied by
Thomas cook for selling their tour package brochure encompassed by different customers. In
order to use appropriate approach for selling the tour packages is essential to make apply of
online and direct sales approach (Lopes, Souza and da Cunha, 2013). All the same, both type of
distribution approaches are used by the Thomas cook with motive to develop awareness and
effect the judgement of large number of clients but maximum level of rivalry is impacting
business scheme and local tour manager.
Hiring Agents: It is another beneficial tool for company to give important information to
the clients towards tourism products and services. In this Thomas cook recruit large number of
person from outer who produce their goods in market on the interest of enterprise. In this they
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have an agreement with tour manager in way of lead period of time and maximising revenues.
This kind of agent mainly render guidance and support to travellers which further help in
exploring specific nation.
TASK 4
4.1 Strategic decision made by different tour operator
The tour operators such as Thomas Cook planning to apply various type of strategies in
their business which help them to increase their business globally. They take various decisions
which help them to achieve customer satisfaction, increasing profit, expansion of business and
help in achieving goodwill (Mak, 2011). These decision are taken by them daily which are
related with fixing the prices of offered tour package, identification of consumer segments,
developing and designing brochures etc. Thomas Cook made strategic decision which is very
important it help the organisation to face efficiently in any emergency and crisis in the business
occurs. The business of tour and travel is flexible and for this appropriate strategy is required for
smooth running of business. Various strategic decisions are made by Thomas Cook are as
follow:-
Distribution decision:- These focus on establishing a system that in its basic level allow
customers to gain access and purchase a marketer's product. Under this marketer's may find that
getting to the point at which a customer can acquire a product is complicated, time consuming,
and expensive. These decision are adopted by Thomas cook for satisfying the demand of its
customers by making available need at a committed time. These helps in organisation to attract
and retain its loyal customers.
Segmenting, targeting and positioning:- In this , this company find out the targeted
consumers so that tour packages are increased by keeping in the view of positioned clients
(Milanfar, 2013). This is the very important decision for company because all the other
decisions are fully depend on this. Company made these decision after analysing the competition
which are running in the market and the various services which is to offered to its targeted
customers. This help in achieving their desires in a pre defined manner.
Promotional strategy:- This include the decisions which help in promoting the various
tools and techniques. It help in increase awareness, create interest, and help in create brand
loyalty. This can be done through promotion, direct marketing publicity, exhibitions and trade
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shows and help in increasing overall profitability of the business which depends on these
decision. This help in increasing income for the organisation. Thus this company helps is making
very strong promotional decisions which help in increasing growth and goodwill of the
organisation.
Consumer relation:-The strategic decision of Thomas Cook related to customer relation
includes services which is related with customers. They are trying to give their services at
minimum prices (Naji-Azimi and et. al., 2012). They make these decision according to choice of
customers so that they can gain trust of them. These decision are made by company in order to
retain its current and future customer so that they maintain goodwill in market. This includes
providing better health and safety of customers which help in achieving the demands of the
customers.
Pricing strategy:- Thomas cook uses various pricing strategies so that they attract more
customers for buying their products which help in increasing the sale of company. The main
objective of these decisions is to retain and attract its customers. Due to this company able to
take decisions of the pricing according to the quality of products.
Demand Forecasting:-This is important technique of strategic decision which help in
analyses future of company. It is important decision taken by this company. It is futuristic
method which help in analyses the future uncertainty that affects the business operations and
functioning. With the help of this Thomas & Cook can easily assess the future demands of its
product or services in the market place. This also help in fill the gap between supply and
demand.
4.2 Compare the Tactical Decision
Tactical decisions are short and medium term decisions . Sometimes wrong strategy
could take business in wrong direction which leads to failure. This strategies are usually place for
longer period of time and tactics are more changeable. These are short term decision which may
influence the organisation for shorter time period (Nolz and et. al., 2010). There are various type
of these decisions which are made for organisation in their day to day operations. This include
arrangement of facilities, food and negotiation with service provider etc. The comparison of
tactical decisions taken by this company are as follow:-
Pricing strategy:- Thomas cook is good organisation in terms of financial condition. The
financial conditions of company is good so that company is using this strategy. The company is
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delivering economical products to its customers with good discount schemes which help in
attract more customers. This focuses more on customer satisfaction which help in profit
maximizing. The pricing strategy of this company is consumer-oriented. The company is mainly
focus on maximizing of its profit.
Currency rates:- The Thomas cook is an international tour operator which help in
dealing the customers of different nations. Because of its expansion in international level of
business they are directly influences by the fluctuations in the currency rates between the
countries. To face this problem this company make short decisions which help in avoiding loss
that occurs due to some problems (Nolz and et. al., 2010). On the other hand this company deals
in national level so that they not face any fluctuation problem in future. Therefore , company not
adopted these decisions to overcome with this problems.
Government support:- This company work at various international level and they have
to often face the interruption of the government of various countries when they make plan for
tour. This company , Thomas cook is requires to take various decisions which help the
organisation to deal accordingly with the government of various countries (Allahyari, Salari and
Vigo, 2015). These company made such decisions which help the government of their nation and
which help in gain support of their government in promoting the business.
Under this economic recession and growth also impact the tactical decision of Thomas &
Cook because the flow of disposable income and money of target customers effects its decision
in both positive and negative way. Due to fluctuation in exchange or currency rates has major
effect on these decisions of this firm as they prepare Itinerary by considering their exchange
rates.
CONCLUSION
From the above mentioned report, it can be concluded that tour operation management is
essential part of the travel and tourism industry. The development and recent tendency in the
travel sector are essential for the business entity. There are different methods are used by the
company in order to sell their tour package to the visitors in an effective manner. Stage and time
scales which are also beneficial for them to produce tour package to the customers in an effective
and efficient manner. There are two approaches of contract such as Ad hoc and Fixed contract
which is applied by the travelling industry to agreement with another organisation. Cost of
holiday plan For UKCBS students and Other than UKCB students are different for the students.
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In order to implement an attractive brochure, tour operator make an essential decision which
support to attract maximum number of customers towards business services and products. There
are mainly two type of decision such as tactical and strategic which are made by tour operator
with motive to increase their sales and revenues.
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REFERENCES
Books and Journals
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Frenzel, F. and Blakeman, S., 2015. Making slums into attractions: the role of tour guiding in the
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Milanfar, P., 2013. A tour of modern image filtering: New insights and methods, both practical
and theoretical. IEEE Signal Processing Magazine. 30(1). pp.106-128.
Naji-Azimi, Z. and et. al., 2012. A covering tour approach to the location of satellite distribution
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Tour Operations Management. 2014. [Online]. Available Through: <http://somo.co.ke/bachelor-
of-travel-and-tour-operations-management-at-moi-university-sm2-493.html>.
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