Tour Operations Management: Strategic and Tactical Decisions for Tour Operators

Tour Operations Management
1

Table of Contents
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................4
1.1 Analyse the effects of current and recent trends and developments on the tour operators
industry........................................................................................................................................4
Task 2...............................................................................................................................................6
2.1 Assess the stages and timescales involved in developing holidays.......................................6
2.2 Evaluate the suitability of different methods of contracting for different components of the
holiday and different types of tour operator................................................................................8
2.3 Calculate the selling price of a holiday from given information below................................9
Task 3.............................................................................................................................................12
3.1 Evaluate the planning decisions taken for the design of a selected brochure......................13
3.2 Assess the suitability of alternatives to a traditional brochure for different types of tour
operators and recommend the most appropriate for your tour package....................................14
3.3 Evaluate the suitability of different methods of distribution used to sell a holiday for
different types of the tour operator and recommend the most appropriate for your tour
package......................................................................................................................................15
Task 4.............................................................................................................................................18
4.1 Evaluate the strategic decisions made by different types of tour operators........................18
4.2 Compare the tactical decisions that could be taken by a selected tour operator in different
situations....................................................................................................................................21
Conclusion.....................................................................................................................................22
References......................................................................................................................................23
2

Introduction
Tour operator is a combination of tour and travel elements which creates a holiday package.
They give core attention to the promotion and advertisement of their products, itineraries and
holiday package. In the United Kingdom, travel and tourism industry are continuously growing
which is providing the future opportunities to UK based tour operators. Tour operation is
considered as the essential constituent of travel and tourism industry. This assignment is based
on the study of tour operator management so that tour operators can manage their day to day
activities and holiday packages in most effective as well as in a systematic manner. In this report,
an influence of recent and current trends on tour operator firm like Trailfinders Ltd has been
analysed. Apart from this, each and every stage of creating holiday has been explained. While
making holiday package selling price of holiday play most important role so in this report a huge
description has been given to selling price of a holiday. Along with this, different methods and
brochures have been evaluated which is used for selling holiday packages. At last some tactical
as well as strategic decisions, have been introduced so that tour operators can take most effective
future decisions.
3

Task 1
1.1: Analyse the effects of
current and recent trends
and developments on the
tour operators industry
Introduction
The tourism industry has
changed depending on the
circumstances and discovery
of historical places in the 20th
century. The expectation of
the customers has increased
and hence, the tour
operators always thrive to
give the unique experiences
to its customers. The advent
of new technologies has
enabled the customers to
choose their desired
destination and visit places of
their choice at the lower
costs.
Current trends in travel
and tourism
The tourism sector is one
of the most adaptable of all
the industries since the
The tour operators can now establish
their businesses across the globe
which not only helps to sustain in
the market but also to enhance the
revenues. The concept of
liberalisation has increased the
competition in all the sectors
including aviation sector. The sector
operates flights at a cheaper cost
which minimises the cost of travel
(Kapiki, 2012).
Consumer Protection Legislation: The
UK government has enacted the
consumer protection and hence, the
tour operators serve the customers
ethically. For example, ATOL, which is
known as Air Travel Organisers Licence
ensures that the travellers do not lose
money or stranded abroad. It is a
financial guarantee provided to the
tourists and this scheme is managed by
Air Travel Trust (Civil Aviation
Authority, 2015).
Technological Advancements:
Technology enables to interact with the
customers effectively. The use of
Brexit: The decision of the UK to
leave the EU will impact the free
movement of tourists to other EU
countries. As per the estimates, the
contribution of EU countries
towards the movement of
passengers is 85% though maritime
transport and 64% by air travel. The
decrease in the number of
passengers will impact the revenue
generation o0f tour operators
(World Travel & Tourism Council,
2017).
Conclusion
The tourism industry provides
various services in order to
attract the tourists and increase
their revenues. However, there
are various factors that affect the
changes in the tourism sector.
The tour operators have to adapt
to these changes in order to
4

changes in the preferences
of the customers has
enabled the tour operators
to change the way of
operating the business. The
changes that drive changes
can be stated as:
Globalisation: The concept of
globalisation and the free
market has enabled the
movement of people from
one country to another. The
customers are now able to
select the destination of their
choices. The increase in the
number of tour operators
and the advent of
technologies has enabled the
customers to travel at a lower
cost.
internet provides the opportunity for
the customers to select the destination
and tour operator easily. This helps the
tourists to decide the destination and
type of travel. The tour operators are
benefited by providing the information
through internet by developing their
websites. The selection of the type of
service and payment methods are
simplified which encourages the
tourists to visit distant places. The use
of technology also enables to innovate
and provide the latest facilities to the
customers which enhance the
reputation of the tour operators
(Kapiki, 2012).
sustain in the competitive
market. The tour operators
should research about the current
trends and aspirations of the
customers while planning
various activities.
Task 2
Introduction
5

The packaged tours are preferred by the customers since they are economical and also, provide
an opportunity for visiting numerous places that could not be done on a solo trip. There are
various factors that have to be considered while planning these trips. Trailfinder should ensure
that the students feel comfortable while travelling and hence, a proper planning has to be done so
that the time allotted for each trip is efficiently planned.
2.1 Assess the stages and timescales involved in developing holidays
Stages of developing holidays
The stages that are involved in making successful holiday packages are:
Step 1 - Research
The first step is to ascertain the climate and other factors such as social, political and economic
factors of Brussels and Brugge. These updates will help to plan each stage of the tour and also,
the places where the accommodation can be provided effectively can also be ascertained. The
destination can be changed if the weather condition is not favourable and hence, prior planning is
required as to the destinations that can be visited in case of the bad weather conditions.
Step 2- Negotiating with Vendors and Suppliers
In this stage, the arrangements have to be made to procure the goods and equipment which are
required for the trip by contacting vendors and suppliers (Tourism Council, 2018).
Step 3 - Pricing of the tour
The cost of the tour has to be ascertained including the facilities provided by Trailfinders such as
accommodation, food and other expenses. The pricing strategy can be based on cost or market
pricing strategy.
Step 4 - Development of Tour itinerary
A detailed plan has to be presented as to the various destinations that have to be planned to visit
and the places where the accommodation facilities are arranged for the students (Tourism
Council, 2018).
6