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Tour Operations Management - Roles & Function

   

Added on  2021-02-21

15 Pages4878 Words112 Views
TOUR OPERATIONSMANAGEMENT

Table of ContentsINTRODUCTION...........................................................................................................................1LO1..................................................................................................................................................1P1 Various roles and functions of tour operators........................................................................1P2 Scale and structure of tour operating industry.......................................................................3LO2..................................................................................................................................................5P3 Outline the different stages and components in the creation of a package holiday for arange of different tour ................................................................................................................5P4 Determine and forecast changes in consumer demand using different sources of research..6LO3..................................................................................................................................................7P5 Review the content of a range of package tour programmes which serve a similar product.7Market.........................................................................................................................................7LO4..................................................................................................................................................8P6 Explore examples of strategic and tactical decision-making in tour operations....................8CONCLUSION..............................................................................................................................10REFERENCES..............................................................................................................................12

INTRODUCTIONTour operations management refers to managing the travel agents, inventory, customers andcreating tour packages in order to provide best travel services to fulfil and understand the needsand requirements of the customers that will result to growth in the tourism industry.TUI (Tourism Union International)is a leading travel operator established in UK in the year1965. It has its headquarter in Luton, England. The founder of TUI was Roy Thomson TUI wasknown as Thomson holidays and it is subsidiary company of TUI group. On 18th October 2017started its business as TUI UK. This travel agency provides products like packages for holidays,provides hotels services, airline services in the travel industry. The report will cover the roles andfunctions of the tour operators as well as it will help the tour operator to forecast change inconsumer needs using different sources as well as decision making by tour operators(Bruni andet.al.,2015).LO1P1 Various roles and functions of tour operatorsTour operator is a person who manages multiple things for his clients. From preparing itinerariesto booking mode of transportation to accommodation, he does it all (Robinson and et.al., 2016).The end motive of every tour operator is to provide maximum satisfaction and comfort to hisclients. Unlike a travel agent, tour operator starts from the scratch, he brainstorms the destinationas per the clients needs, searches for popular locations to explore and finally does all thenecessary bookings.Tourism Union International, United Kingdom has around 70000 employees that deals withtourism and travel operations.Functions of Tour Operator-Travel details- Indeed, the most important function of a tour operator is to give necessarydetails about the tour to his clients because at the end of the day, it's the opinion of clientthat matters (Evans, 20160). Be it, international or domestic full disclosure of traveldetails is requisite for the clients.Booking the accommodation- Accommodation booking is not as easy as it seems.Although, TUI has its own chain of Resort and Hotels but before being owned by the TUIgroup, the company used to book hotel and resorts as per the budget available to them.The tour operators used to collaborate and partner up with different Hotel chains both bi1

and small, so that they could make reservations at much less price (Pencarelli and Dini,2016).Reservations and transportation booking- Depending on the client's budget and traveldestination, the tour operator needs to book necessary mode of transportation. It can bethrough train, flight, cruise or in some cases through car. TUI group also owns an airlinecompany which makes it convenient for the company and its tour operators to book andarrange flight services for its customers.Preparation of detailed itinerary- A detailed itinerary acts as a road map for the clients. Aperfect itinerary incubates the vibes within the clients. TUI's itinerary includes detailsabout accommodation, total duration of trip, day-wise segregation of activities, places toexplore and transportation details. At the end, the total cost for tour package is stated.Tour package pricing- The tour operators at TUI follow different statistical techniques inorder to price the tour packages. Majorly the company uses marginal pricing method, thatincludes analysing the market trends and fixing the prices accordingly. Another simplerapproach followed by tour operators includes, addition of all the fixed and variable costsincurred in preparation of tour package and then ultimately including their percentage ofprofit in it (De Vita and Kyaw, 2017).Role of tour operator-Bulk Purchasing- In order to maximize the profits and efficiency of not only tourismbusiness but in any business, bulk purchasing is mandatory. The company must analysethe market and predict its future demand and accordingly make purchases. In context totourism sector, the tour operator must analyse the future clients and tourists expectationand then accordingly make necessary reservations. This will not only save time but alsogive cost benefits to the company in terms of cash discount or bulk discount.Negotiation- The ability to negotiate is rare and unique. Tour operator must have thecapability to bargain at time of hotel booking, local sight-seeing, restaurants etc. TUIGroup being a Multi national company, has a strong bargaining power because of itsname and reputation. This allows the company to raise additional profits because of thediscount received to them from its suppliers.Correcting the glitches and errors- TUI is a company made by humans, so mistakes arebound to happen (Pulido-Fernández and et.al., 2015). In case some error is committed by2

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