Tourism Management & Sustainable Practices

This assignment delves into the crucial aspects of tourism management, particularly focusing on sustainability. Students are tasked with analyzing various theoretical frameworks for strategic marketing within the tourism industry. The emphasis lies on understanding the role of tour operators in promoting responsible and sustainable travel practices. Key concepts explored include ecotourism, ethical considerations, and the impact of tourism on developing countries.

Tour Operations
Management
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Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1.1- Analyse the effects of current and recent trends and developments on the tour operators
industry........................................................................................................................................3
TASK 2............................................................................................................................................6
P2.1 Assess the stages and time-scales involved in developing holidays...................................6
P2.2 Evaluate the suitability of different methods of contracting for different components of
the holiday and different types of tour operator..........................................................................7
P2.3 Calculate the selling price of a holiday...............................................................................8
TASK 3............................................................................................................................................9
P3.1 Evaluate the planning decisions taken for the design of a selected brochure......................9
P3.2 Assess the suitability of alternatives to a traditional brochure for the following tour
operators of the THOMAS COOK group..................................................................................10
P3.3 Evaluate the suitability of different methods of distribution used to sell a holiday for
different types of tour operator within the THOMAS COOK group........................................11
TASK 4..........................................................................................................................................12
P4.1 Evaluate the strategic decisions made by different types of tour operator........................12
P4.2 Compare the tactical decisions that could be taken by a selected tour operation..............13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
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INTRODUCTION
Tour operation is the fastest growing industry in the world. This sector is a key driver for
economy that supports employment in the country by creating number of jobs and generating
annual revenues (Page, 2011). It has vital role in arranging and offering various services as a
complete holiday package. This unit is going to investigate the tour operation industry of the
travel and tourism sector. Different types of operators, their products and services are going to be
described in the present manuscript.
The report represents the scales of industry and how it has been affected by recent trends
and developments. In addition to that various stages and time scales involved in developing
holidays are explained along with evaluating the suitability of different methods of contracting
for different components of the holiday and types of tour operators. This unit also demonstrates
the calculation of selling price of holiday package in accordance with given information.
THOMAS COOK is the third largest travel group operating in the UK travel industry which is
the key focused organization of present report. It explains the suitability of various alternatives to
a traditional brochure for THOMAS COOK group. Various strategic and tactical decisions made
by different types of tour operators are further evaluated in this report. With the help of present
unit insight about role of tour operators in holiday package design stages will be gained.
Furthermore, this investigation will give complete information about the strategic and planned
decision making of tour operators.
TASK 1
P1.1- Analyse the effects of current and recent trends and developments on the tour operators
industry
According to the information provided by World Trade Organization (WTO), travel and
tourism business has become a major source of economic booster. It is quite important for the
economy of developed as well as developing countries. Tourism to the UK Economy contributes
to £126.9bn (9.0%) Gross Domestic Product (GDP). This country is further seen as the eighth
largest international tourism destination in the world. The Gross Annual Value (GAV) growth
rate of UK tourism sector is around 13% which is quite good when compared with the growth of
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other sectors (UK tourism statistics 2015, 2016). Here is the list of major developments and
trends within tour operation industry:
Development of E-commerce technology
The recent development of E-commerce technology has contributed a lot to the tour
operation industry. With the help of such technology, there develops a platform where they can
provide information to visitors via on-line and can attract them. Online booking services have
been very helpful as the customers are now able to make reservation and cancellation
(Swarbrooke and Horner, 2012).
Improvement in spending power
The spending power of tourist across the world has increased and has significantly helped
tour operators for expanding more. It has further created huge opportunities for tour operators
working in UK’s market as now the country's tourism industry has become profitable sector. On
the other hand, local people who are residing in the tourism destination are also getting benefits
of improved spending power of tourists in such locations (Page, 2011).
Niche tourism segment
In contemporary era, numerous niche target segments have shaped the tourism industry.
For example, newly married couple has become a major tourist segment which is targeted by
tour operators. It has long been witnessed that tour operators are focusing on such segment for
the purpose of gaining profitable business. However, there are various opportunities for
development and spending in this segment so-as-to spend large amount on the tourism activities
(Jayawardena, 2013).
Customized Holiday packages
Seeing the increased demand of customised holiday packages, tour operators are
designing their holiday packages while allowing visitors to obtain benefits. However, offering of
customized holiday packages leads tour operator industry to maintain high flexibility (Riege and
Perry, 2000). The visitors are now looking for the options in which they can select their own tour
packages. This has been seen as major factors that lead to higher customer satisfaction within
tours operation industry.
Change of demographic pattern
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In present era, number of changes in the demographic pattern of consumers has opened
up new horizon in tour operation industry. For example: tourists like travel with nucleus family
or friends. In this respect, tourism organizations/tours operators are now designing holiday
packages as per the demographic condition of customers (Damonte, 2013).
Market Research
Now-a-days, tour operators are conducting market research for the purpose of outlining
the consumer demand and preference to design several strategies which helps in meeting those
demands as well as satisfying customers.
PESTEL factors
Political, economic, social, technical, environmental and legal factors are also shaping
tourism industries. However, technical, economic and political factors are now affecting the
entire tourism industry. According to real evidence, consumers do not prefer travelling in the
countries with poor political stability. In addition to that inflation rate in the economy has also
affected travelling demand of consumers. As well as, to have convenient travelling services,
tourists are looking for online tour service providers.
Role of Government
UK government is witnessed for supporting the growth and development of tour
operation industry. For supporting the tourism activities, government has provided flexible VISA
policies and is also providing financial support for the development of tourism destination. It has
also relaxed taxation norm which are associated to tourism activities. The government
organizations are dealing with tourism association for offering good packages to tourists.
Tourism marketing
The improved marketing tactics have significant role in the development of tours
operating business. Now tour operators are adopting marketing activities for each tourism
segment after assessing the preference of target customers that are essential for gaining their
attention. The tour operators are offering their services in an attracting way to gain awareness of
visitors towards a specific tourist spot (Huang, 2008). The marketing tactics are now being used
for providing knowledge to visitors about particular tourism destination and spots.
Conservation of tourism destinations
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The tour operators are now having objectives of conserving the tourist destinations along
with their main aim to increase revenues. In other words, tour operators are focusing on
conserving tourism destinations for longer point of time (Buck, 2011). In this process,
government and non-government organizations are contributing for protecting these tourist
destinations to have regular source of income.
TASK 2
P2.1 Assess the stages and time-scales involved in developing holidays
In order to develop overall tour activities in a successful manner and to satisfy the
consumer needs from holiday package which is offered to them, there must be effective
planning. In this manner, Planning is considered as can integral part of developing holiday
packages. This is quite complex and time consuming task to develop the holiday packages in Las
Vegas and VIA ALGARVIANA as it can take time of 6-12 months’ and number of activity
would to be arranged. However, some issues relating to currency fluctuation and tax structure of
foreign countries may encounter and the planning process. This is quite important to handle such
issues for the success of overall planning. Here, the following points represent different stages of
developing the holiday packages :
Examining the new destination: Prior to select the holiday destination, there would be
conducted in-depth analysis of external environment of both the destinations (Crysta and Law,
2011). In this respect, an in-depth analysis of Las Vegas, US and AVIA ALGARVIANA,
Algarve, Portugal will be done. The mentioned stage is the foremost stage of designing further
activities of holiday tour designing. This stage may take time of 2-3 months.
Consumer Research: Consumer research is also to be done or the selected destinations
for assessing the opportunities of huge customers base and higher returns. As per the real
evidence, for designing wedding tour packages in Las Vegas, there will be research on the
various types of wedding ceremony features that Thomas Cook can offer to the customers.
Likewise, for VIA ALGARVIANA, a consumer research will be conducted to identify the
possible tourism activities that are preferred by the visitors. It is expected that, this process will
take time at least 3 months.
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Negotiation: The possible negotiations with the different service providers in both the
destinations are must. This is a crucial stage that allows Thomas Cook to decide the best offering
like accommodation, food, transportation, and other facilities. The tourist require a tour package
within their budget hence, this stages helps tour operator in deciding on the best tour packages
(Michael and et.al, 2014). The possible time schedule will be of 2-3 months.
Tour development: Tour development is the final stage of holiday package designing
which includes negotiations with the service providers and conveying various features of tour
package to the tourist. However, it can be said as a stage of creating promotions of the newly
designed tour package among customers. This stage is expected to take 4-5 months of time.
P2.2 Evaluate the suitability of different methods of contracting for different components of the
holiday and different types of tour operator
Two famous methods are there that are used for the purpose of booking the different
aspects of the tour package which are designed by tour operators. These two methods are named
as sale only contract and fixed contract. Here, in this project Air tours and Flight centers are
given as tour operators that are going to be compared for making various order for the tour
services including transportation, accommodation, etc (Butler, 2000). Following points are
representing Sale only Contract and Fixed Contract used by the two selected operators:
Sale only Contract
In order to design the tour packages in South America, Flight centre has chosen sale only
contract method. The niche consumer segment is selected for offering this tour package because
a particular consumer segment is required for highly expensive tour. The selected market would
be interested in investing money for such travel package (Jesus, 2010). While following such
kind of contract, Flight centre is going to pay for the hotel and the transportation that will used
by customers. This contact is made to overcome the risk of weak response for any tour package
and is usually made at the time of lean session.
Fixed Contract
The fixed contracts are made by the tourism companies for ensuring proper utilization of
volume based capacity. However, it also allows tour operator to maximize the income even
during off seasons. The fixed contracts are chosen by the companies in the forms of Air tours
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which further depends on customer expectation. In this method, a total capacity is booked by Air
tours and the relative payments will be made in accordance with utilized capacity (Holloway,
2009). Nonetheless, a risk of non- utilization of capacity is associated with business but tour
operators have to pay for unutilized portion. The above mentioned package is designed by
Airtours while considering the fact that during summer, large number of tourist came to visit the
designation thus, its is expected that there is very little chance of non-utilization of capacity. The
huge discounts provided to the customers will also benefit to the tour operates (Knowles,
Teixeira and Egan, 2003.).
After a proper assessment of Sale only Contract and Fixed Contract contacting methods,
it could be said that fixed method is beneficial mostly for customers as they can get huge
discounts however, such contracts are made in advance. The tour operators make such contracts
during peak times so-as-to gain huge profits. On the other hand, sale only contract allows tour
operators to minimise wastage on money which is paid for un-utilized capacity thus, reduces
losses (Becken and Hay, 2007).
P2.3 Calculate the selling price of a holiday
According to the given case scenario, passengers will travel by air with Thomas cook
airlines from Gatwick each Saturday and stay for 7 nights. This package to Greece by booking
Boeing 737-800 plane and the that have a maximum capacity of 180 tourists. The
accommodation will be made in Avra Beach resort which will be for twin sharing. The
mentioned booking are made for 80 passengers, it is a fixed contract thus the tour operator will
bear cost in case no consumer turns up. The incurred costs for various activities in the current
tour are explained in the following:
Table 1: Total cost involved in package of Greece
Sr. No. Package detail Sale price/single travellers Sale price/couple
1
Charges for transportation in
airplane 102.7 189.6
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2 Transportation local 0 0
By coach 7.9 15.8
By taxi 27.65 43.45
Representative visit 79 79
3 Booking for Hotel 15.8 23.7
4
Other charges for sightseeing and
misc. 31.6 63.2
Total cost in pounds 264.65 414.75
1 Euro=0.79 pounds
TASK 3
P3.1 Evaluate the planning decisions taken for the design of a selected brochure
Within the tour operation industry, brochure is a key essential for conveying information
regarding tour packages and their specific features to the customers. However, this is also used
for selling holiday packages while using on-line as well as off-line method. The present section
is going to reflect on planning decisions associated with Thomas Cook brochures. Distribution of
brochure for tourism packages provides two major advantages such as low cost and high reach.
Nonetheless, designing of brochure required proper planning and research as well as an effective
implementing and organizing process (Black and Crabtree, 2007). The points below represents
planning decisions associated with designing of brochure for Thomas Cook group:
Assessment of issues related to planning: It is quite expected that the many be some
issues associated with planning process including format, objectives of brochure designing,
deciding on target segment, time-scale etc. These all issues are to be considered properly as there
are vital to be work upon for designing an attractive brochure.
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Deciding on Format of brochure : For making a brochure more attractive as well as to
increase its visibility, it is crucial to decide on the formate of broacher. This is also important to
match the brochure format with target segment of tour package (Fleischer, 2009).
Target market and Budget: Selection of target market for Thomas Cook is the most
important task which depends on specific niche segment. However, budget is crucial to decide
the success of broacher so the company has to plan for cost which is to be shown on broacher.
This is also important for business to investigate into spending power of the consumer (Buckley,
2004).
Timescale and various stages of brochure designing: The planning process also
involves time associated with the entire process. In addition to that planning for stages involved
in designing of brochure will consider in planning decision (Riege and Perry, 2000).
P3.2 Assess the suitability of alternatives to a traditional brochure for the following tour
operators of the THOMAS COOK group
Traditional brochure are nowadays not preferred by the customers and there are looking
for new ways to gain information about available tourism packages. This section is going to
provide a knowledge about suitability of alternatives to a traditional brochure for Thomas Cook
cruise summer 2014 and Air Tours summer 2014.
For the purpose of improving quality of brochure as well as to attract the large number
customers form the target market, alternatives for traditional method can be used by tour
operators. However, the traditional brochure has really been an important medium f to convey
information to the customers but the significant developments in new technologies have been
changed the entire tour operating industry and provided a chance to tour operator for adopting
other mediums for conveying messages to customers about new tour packages (Sasidharan,
Sirakaya and Kerstetter, 2002).
E-brochure : In present era, E-brochure has become the most demanded method of
designing brochure and conveying information to tourist. However, it can also be said that on-
line designed brochure are having wider reach than compared to the physical brochure. Airtours
and Thomas Cook are advised to design their tour-package brochure via using online tactic as it
is the more profitable way to design brochures and conveying informations to customers. It can
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also be said that, it is the cost effective way to design a brochure and E-brochure method will
provide benefits of being cost efficient to Thomas Cook. Using this method, the mentioned tour
operators can reduce cost of designing and developing e-brochure as they had to bear for
designing physical brochure (Veres, Clark and Golbourne, 2008).
Video brochure : For a next alternative the tour operating companies can use visual
medium of brochure as it will provide benefits in terms of reaching to the large number of
customers. In other words large number of customers can be attracted towards the tour operator
offerings. With the help of such alternative, the tour operate can convey essential information
and the visual beauty of tourism destination to the large number of audience. Making use of
visual brochures, the sales of tourism packages can be increased within tourism industry (UK
tourism statistics 2015, 2016). For the promotional purpose of Video brochure social media tools
such as Facebook and You Tube can be used.
From the analysis made in the above points, Airtours and Thomas Cook are
recommended to design an integrated brochure. For this kind of brochure the combination of e-
brochure and video brochure can be used. In addition to that, online marketing campaign is
designed that will be further linked to e-brochure and video brochure.
P3.3 Evaluate the suitability of different methods of distribution used to sell a holiday for
different types of tour operator within the THOMAS COOK group
From a long run till now, brochure is evident as an effective medium of selling tour
packages that are designed by different tour operators. However, it has been seen as the major
sources of gaining competitive advantages over other rivals. But, there have been seen various
changes in the system of designing and developing the brochure as technology has rapidly grown
in the tour operation business (Mintzberg, Ahlstrand and Lampel, 2005). The designing and
development of brochures has become technology oriented task. Within the present scenario,
holiday package of Thomas Cook can be sold via using online marketing, direct sales, telephonic
sales. In addition to that, the holiday packages can be sold via call centre through approaching to
the target audience.
Here, in the present section, it could be stated that direct selling method can be employed
for the online sales of brochure. The rationale behind choosing this method is that tour operators
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like as Thomas Cook can have more profits and benefits from such. However, it could also be
said that Thomas Cook can also target large number of customers via using effective line
marketing (Page, 2011). In this process, tour operators can provide data with the help of online
source only. In order to sales the holiday package and brochure via using a suitable method to
the target audience, tour operators can use e-mail marketing tools.
TASK 4
P4.1 Evaluate the strategic decisions made by different types of tour operator
Tour operators have to take various decisions and have to design strategic plans for the
purpose of conducting successful business into tour industry. There are various strategic plans
that are to be carried out by tour operators including adoption of appropriate price efficiency,
deciding on competitive strategy and selection of the best consumer segment. The following
points describe strategic planning that is going to be undertaken by the organization:
Discount pricing strategy: Being a crucial aspect of tourism business, pricing is
considered important by tour operators. Making use of fixed price contract, the operators can
provide huge discount to customers. However, the mentioned discounting pricing strategy is
going to help tour operators in attracting huge customers base and having competitive
advantages. In addition to that company has to choose a competitive pricing strategy (Pine and
Gilmore, 2011).
STP (Segmentation, targeting and positioning): These three are the most crucial
decision that are to be taken by tour operators. Segmentation is to be done within the industry
and targeting is made by the organization. On the other hand positioning is will be a crucial task
of tour operators. In addition to that, the final decisions are to be taken by tour operators for
which they asses the competition held into the marketplace (Swarbrooke and Horner, 2012).
These three major decisions are to be taken after reviewing the situation to make appropriate
pricing, promotion, and place decisions which are based on STP strategy.
Creative promotion strategy: The role of creative strategy is crucial in tour operating
business which further helps tour operators to promote tour packages. They have to decide on
the methods of promotion as well as to take major decisions on promotion budgets (Luo and
Girazova, 2014). This decision is crucial as the profitability of tour operators along with there
market image is based on Creative promotion strategy.
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P4.2 Compare the tactical decisions that could be taken by a selected tour operation
Tactical decision are those which are taken on daily basis such as designing and the
selling of tour packages. These decisions are important for ensuring smooth business functioning
and such kinds of decisions include conciliation with the service providers, deciding on
accommodation and maintaining tie up with stakeholders.
Furthermore, other tactical decision taken by the tour operator is to make tie ups with
service providers. This is very important decision as it affects the cost of business and helps in
deciding on the selling process of tour packages. For being successful in such kind of decision,
it is important for tour operators to adopt personal and corporate selling tools (Donnelly, 2008).
They have to do various meetings with different service providers and then have to compare their
services and prices so-as-to select the best supplier. However, tie up is o be done while assessing
its suitability as per customer's requirements. In addition to that, consideration of consumer
experience can be said as another tactical decision that is being taken by using effective tools and
methods. This is also important to assess the consumer experience in respect with tour package.
To assess the sanctification level of customers with the present tour packages, the tour operators
conduct research (Swarbrooke and Horner, 2012). This research will be helpful in identifying
problem associated with the tour packages that will further resolved by proper planning.
CONCLUSION
The report represented the scales of UK tourism industry and the recent trends and
developments. It was found that development of E-commerce technology, improvement in
spending power, customized Holiday packages, Change of demographic pattern and
Conservation of tourism destinations are some of recent trends in the industry. It was found that
using Fixed Contract the tour operators can provide huge discounts to the customers. As per the
investigation made into various methods of distributing brochure so-as-to sell holiday packages,
the tour operators are recommended to use online as well as direct methods.
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