Effective Communication and Role Understanding in the Travel Industry

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Tour Operations Management
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TABLE OF CONTENTS
INTRODUCTION................................................................................................................................3
TASK 1.................................................................................................................................................3
1.1 Analysis of effects of current and recent trends and developments on the tour operation industry
.........................................................................................................................................................3
TASK 2.................................................................................................................................................4
2.1 Stages and time scales involved in creating holidays ...............................................................4
2.2 Evaluation of suitability of different methods of contracting for different components of the
holiday and different types of tour operators ..................................................................................5
2.3 Calculation of selling price of a holiday from given information.............................................6
TASK 3.................................................................................................................................................7
3.1 Evaluation of planning decision taken for the design of a selected brochure............................7
3.2 Access the suitability of alternatives to a traditional brochure for different types of tour operators
.........................................................................................................................................................7
3.3 Evaluation the suitability of different methods of distribution used to sell a holiday for different
types of tour operator ......................................................................................................................8
TASK 4.................................................................................................................................................9
4.1 Evaluation of strategic decisions made by different types for tour operators............................9
4.2 Compare the tactical decisions that could be taken for selected tour operator in different
situations..........................................................................................................................................9
CONCLUSION..................................................................................................................................10
REFERENCES...................................................................................................................................11
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INTRODUCTION
Tour operators plays a significant role in key activities of travel and tourism sector. In the
support of this, it can be said that the tour operators have accountability to arrange and manage diverse
services in order to meet the key expectations of travel and tourism sector. These kinds of companies
mainly focuses on transportation, accommodation, food and many other services which can enhance
the satisfaction level of service users (Aktas, 2003). Other than this, key motive of tour operators is to
reduce the cost of tour packages in order to meet the expectations of customers and improve supply
chain in context of tourism and travel industry. Moreover, tour operator firms provides number of
travel and tourism sector services under one brand name in order to enhance the experience level of
service users.
In this report, learning will focus on work culture of Cox and Kings who is looking for business
expansion in India, Andaman and Nicobar Islands. It will provide better understanding about key
factors which impacts the operations of travel and tourism sector. It will also have spot light on key
stages in creation of holiday packages. It will also provide information about methods of distribution
which can be used by management of Cox and Kings. Furthermore, it will also focus on strategic and
tactical decisions which relates to tour operation firm.
TASK 1
1.1 Analysis of effects of current and recent trends and developments on the tour operation industry
It has been spotted that there are various elements that can impact the operations of travel and
tourism firm in diverse manner. Trends of travel and tourism sector has changed in great context with
changes in time. Enhanced level of services has impacted the number of visitors in positive manner
which is one of great opportunity for UK tour operation industry. Tour operations also have great
involvement in UK economy (Dezdar, 2012). Citizens of UK are now more attracted towards overseas
destinations for holidays and it also influences the economy of UK. In the support of this, it can be said
that in year 2012-2013, the 17 % of UK residents has preferred their holiday to abroad destinations and
every year this percentage is increasing by 4% in UK. As per this, it can be forecast that the business
expansion in oversea market is one of great opportunity for UK tour operator sector.
As per the current statics of forecasting report, in year 2016 the tour operations industry of UK
is expecting 2.5% growth in context of outbound tourism and 4.5% growth in respect of inbound
tourism (Mehmetoglu, 2004). In order to meet these kinds of objectives the UK tourism sector is now
more focused towards creation of diverse strategies which can improve their operations. According to
tourism report of year 2015 the 40 million international and domestic visitors has been attracted by
industry using diverse strategies. Industry is also expecting increases in investment ratio by 31.5 billion
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euros by the end of year 2020. Number of supportive organizations are also improving their services to
render a support to travel and tourism sector such as hotel, transportation, airline, etc (Voxted, 2011).
These kinds of developments also plays key role in advancement of UK economy by increase in profit
margin ratio of sector. Moreover, the tour packages can be classified as international and domestic
packages. The services and price of packages depends on time period of holidays, distance and
locations. In domestic tourism the companies offer services within the national boundary and in
international packages services are offered in international boundaries. Companies are creating
packages as per consideration of various aspects such as sunny beaches, heritage and wildlife
attractions in order to meet the needs of sector (Kamra, 2006).
TASK 2
2.1 Stages and time scales involved in creating holidays
Planning is one of most essential section in effective development of tour activities as it
facilitates in meeting needs and expectations of service users. In this support, it can be said that the
development of holiday packages is one of most complex activity and it covers number of stages. It is
also necessary for management of Cox and Kings to consider factors like currency, tax and government
policies, etc so that holiday package can be designed in appropriate manner (Krogerus, 2011). In this
respect, the Cox and Kings will design holiday plan for Andaman and Nicobar Islands, India.
Classification of stages can be as follows:
Market research
It is essential for management of Cox and Kings to understand the economic condition of India
in order to design holiday plan. Moreover, the proper information about competitors and Indian
tourism sector is also essential so that proper decisions can be made in context of cost, events and
famous places in Andaman and Nicobar Islands.
Planning and scheduling
As per the analysis of market research the planning and scheduling decisions will be taken into
account. At this stage, the perception of employees also need to be consider as a critical aspect so that
tour plan can be designed in appropriate manner (Wheeler, 2011). Other than this, small groups need to
be devide in order to manage work properly. Number of activities will be designed such as departure
time and total number of days, etc.
Forecasting
It is also necessary for management to forecast the future of tour activities which are designed
for Andaman and Nicobar Islands holidays. Cost forecasting and other estimates also need to be
calculated in order to take effective decisions.
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Contracting and Costing
Number of contracts will be taken into account to meet the key needs of services which are
offered in tour package. Negotiation actions also need to be consider to reduce the cost of operations
and meet the expectations in economic manner (Buck, 2011). Decisions regarding allocation of the
rooms, availability of flights, destinations visit, restaurants etc will be taken into account to meet
expectations.
Creation of brochure and execution
After this, brochure will be created to attract more and more and customers towards services.
Brochure must contain detailed information regarding time period, destination, hotel, services, etc so
that customers can understand the value of tour package. Number of additional and important
information also need to be provided in brochure. At last, the holiday package will be offered in market
and advance bookings will be started to meet the objective of tour plan.
Table 1: Time scale for creating holiday in Andaman and Nicobar Islands
Activities in Days 1 2 3 4 5 6 7 8 9 10
Market research
Planning and scheduling
Forecasting
Contracting and Costing holidays
Creation of brochure and Execution
2.2 Evaluation of suitability of different methods of contracting for different components of the holiday
and different types of tour operators
As per the above study, the holiday has been planned for summer vacations in Andaman and
Nicobar Islands. In this respect tour operator requires great level of assistance from many types of tour
suppliers.
Parameters Outbound Inbound Domestic Specialist
Area of operations In this kind of
tourism the tour
operator provides
its tour package
services within
parent country to
In this, tour
operator firm
needs assistance
from diverse tour
operators which
provide tour
In this, tour
operator firm
mainly focuses on
tour services
within boundary
of the home nation
These kind of
firms provide few
services in sector
but they are
specialized in their
area.
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visit international
borders for
limited period
(Damonte, 2013).
services in
international
borders.
and its target
customers belongs
to parent nation
(Huang, 2008).
Package operated As per season As per season Regular Regular
Suitability of different methods of contracting for different components of the holiday and different
types of tour operators:
As per above discussion, tour operators can have contracting as per consideration of diverse
components which relates with holidays. Mostly, contracts are taken into account as per holiday
seasons and tour operator firm sign contracts with resorts, airlines, etc. In fixed contract, the Cox and
Kings have bookings on advance basis to ensure the service availability. On other side, in Ad hoc
contract company sign contacts at time of service uses. In the support of Cox and Kings tour package
for Andaman and Nicobar Islands, it can be said that with an assistance of outbound operations
company can easily meet the expectation and needs of tour package (Mehmetoglu, 2004). Cox and
Kings offers number of services in international borders and they have efficient contact with different
hotels, resorts, restaurants. It will boost services effectiveness and provide long term sustainability to
tour operator firm. In this, firm can have bookings and contract as per requirements.
2.3 Calculation of selling price of a holiday from given information
Services Cost(in £)
Accommodation services in Andaman and Nicobar Islands 30
Transportation services such as flight tickets 70
Supportive services such as breakfast and dinner in Andaman and Nicobar
Islands
50
Local transportation services 70
Other fees and tickets at attractions(Radhanagr Beach, Cellular jail, Jolly buoy
island, Makruzz, Elephanta beach, Scuba and smorkeling, etc)
80
TOTAL 300
Tour package price for customers = £ 450/ person
Profit margin ratio per tour plan = 450-300= £ 150.
As per the above statics, it can be said that the company will charge £ 450 per person for tour
plan at Andaman and Nicobar Islands. Company actual costing on diverse services is £ 300. This
clearly indicates that the company is earning £ 150 profit in every tour plan. In other aspect, it can be
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said that the tour plan is well designed and it provides number of monetary and non monetary benefits
to Cox and Kings. Moreover, company will charge extra £ 20 if customer is not belongs to UK
citizenship (Nath, 2013). Other than this, if customers include children under 2 year then they will be
not treated as quest. But if children is above 2 year than they will be treated as a guest and company
will have half charges for it. If children is above 12 years then company will charge as a adult guest. So
the prices of package for children between 0-2 year is nil, for 2- 12 year children will be £ 225.
TASK 3
3.1 Evaluation of planning decision taken for the design of a selected brochure
It has been spotted that the brochure plays a key role in success of tour operator firms as it is
one of significant factor that conveys message as well as sale holiday plans through on line and off
line methods. It is necessary for management of Cox and Kings to have correct decisions regarding
planning and evaluation so that brochure can be designed in proper way (Rana, 2014). One of key
benefit of brochure that it target customers effectively in low cost operations. In order to have effective
designing of the brochure it is necessary for management to focus on planning, research, its
implementation.
Recognizing planning issues
It is necessary to identify the key issues that management can face in formulation of the
brochure and its objectives. It is also necessary to determine the target segment and their needs in order
to design brochure.
Formate
In the support of this, it can be said that all factors need to be considered as equally important
aspect and decisions regarding brochure are taken into account properly. In this aspect, it is necessary
to have improved focus on formation of brochure and few factors. Classification of factors can be as
font styles, structure, quality and size (Mehmetoglu, 2004).
Target market and budget
Other than this, it is also necessary for management of Cox and Kings to ensure about target
customers so that brochure can be designed in appropriate manner. In this context, it is also essential
for Cox and Kings to decide the segment for which it wants to offers the tour packages. Moreover, the
decisions regarding budget also need to be taken properly.
Launching of brochure
It is final stage, in which management of Cox and Kings will have decisions regarding
launching of holiday plan brochure for Andaman and Nicobar Islands. In order to have proper
launching the management can focus on customer place, internet, televisions, newspaper, etc (Voxted,
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2011).
3.2 Access the suitability of alternatives to a traditional brochure for different types of tour operators
In the support of this, it can be said that the tradition way of distributing brochure is taken into
account with an assistance of newspaper, direct handover to the customers, etc. But these kinds of
methods cost high which impacts operations in negative manner so there are various alternatives ways
which can be adopted in order to have effective distribution of brochure.
Internet
In order to have effective distribution and launch of brochure the management of Cox and
Kings can focus on internet. It is most commonly used method which can target large number of
customers in less time (Kirkwood, 2003). Company can promote its tour package via internet in order
to attract more and more customers. It will also provide easy access to brochure by using internet.
Videos
In this respect, it can be said that the tour operator firm can promote its brochure by using short
duration videos. Company can upload videos on various tour websites and attract customers towards it.
It is a method which can be used by outbound and inbound tour operators in order to attract customers
towards package.
Television
In the support of this, it can be said that number of tour operators are using television as a key
communication tool in order to promote its holiday package. In this support the management of Cox
and Kings can focus on preparing short and attractive commercial advertisements. Company can
promote its advertisement on television in some intervals (Robinson, 2009). In addition to this, it can
be said that the company can use television to display some important information so that more and
more customers can be attracted towards tour services.
3.3 Evaluation the suitability of different methods of distribution used to sell a holiday for different
types of tour operator
It has been spotted that there are number of distribution channel which can be used by
management of Cox and Kings in order to promote the holiday packages. In the support of this, it can
be said that distribution channel is combination of diverse mediums which involve in promotion and
sales activities of services (Kirkwood, 2003).
Internet
It is considered as a one of cost and time effective distribution channel. With an assistance of
this, management of Cox and Kings can reduce the cost of operations and attract more and more
customers in better way. It also assist tour operators in selling of tour plans in better way. It also
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provides better reach to customers by use of technological aspects (Voxted, 2011). For example, the
management of Cox and Kings can have advance booking of tour packages in a single day with the
help of internet. Company can also maintain better relationship with its suppliers like airline, hotel, etc.
Travel agents
It is a method which is mostly used by small size tour operators in order to target more and
more customers. Small size businesses can easily operate their business with an assistance of travel
agent (Mehmetoglu, 2004). But it has been spotted that the significance of travel agents is decreasing
due to the wide use of internet.
Call centres
Other than this, it can be said that the call centre assistance is also beneficial for effective
distribution. It is considered as 3rd party method in which tour operators have direct relation with call
centres where customers can books tour plans. Tour operator firms need to provide commission to the
call centres in respect of business availability.
TASK 4
4.1 Evaluation of strategic decisions made by different types for tour operators
In the support of this, it can be said that the tour operator system needs to focus on various
elements for better profits and flexibility in operations. Number of strategic decisions are made by tour
operators in order to have better success and promotion of tour plan (Rana, 2014). In the support of
this, it can be said that the management of Cox and Kings needs to make decisions regarding pricing,
efficiency, segmentation, making competitive strategies, etc.
Pricing strategy
Pricing is considered as one of most significant aspect in tour operations as it is necessary for
business firm to set pricing of tour plan according to the buying behaviour of customers. With an
improved focus on fixed price strategy, the business firm can easily offer its services to wide range of
consumers. However, the discounting pricing strategy is also beneficial for business firm as it helps in
attracting more and more customers towards holiday packages (Nath, 2013). It also facilitates in
gaining better competitive advantage and increase the sales of tour package.
Positioning and branding
It is also necessary for business firm to have correct decision in respect of branding and
positioning. In this, respect, it is necessary for management of Cox and Kings to take the review of
services from its target customers as it will provide information about the popularity of package among
customers (Mehmetoglu, 2004). Moreover, the feedback or suggestions process can also be considered
as one of critical aspect to understand the effectiveness of tour package.
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4.2 Compare the tactical decisions that could be taken for selected tour operator in different situations
It has been spotted that number of decisions are taken into account for better handling of
business operations in context of pricing, sales of packages, etc. It is necessary for business firm to
ensure regarding diverse functioning (Huang, 2008). It is essential for management to maintain good
relationship with stakeholders during the cancellation the contract. It will facilitate business firm to
expand business in effective manner.
In the support of this, it can be said that the tactical decisions which are taking by the tour
operators are related to tie up or making the contract with the different service providers. Key motive
behind this kind of tactical decision is to increase the sales ratio. For example, Cox and Kings can have
contract with airlines so that transportation services can be provided to customers. It will provide long
term sustainability to business (Damonte, 2013).
CONCLUSION
As per above study, it can be concluded that the tour operators plays a key role in success of
travel and tourism sector. It has been identified that the travel and tourism sector is playing key role in
development of UK economic system. Planning is one of most essential section in effective
development of tour activities as it facilitates in meeting needs and expectations of service users. In
the support of this, it can be said that number of tour operators are using television as a key
communication tool in order to promote its holiday package.
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REFERENCES
Books and Journals
Aktas, A., 2003. Tourist profile research: Antalya region example 2001. Tourism Review. 58 (1). pp.34
– 40.
Buck, M., 2011. Trends and Issues in Global Tourism 2011. Springer Science & Business Media.
Damonte, L., 2013. Segmenting tourists by direct tourism expenditures at new festivals. International
Journal of Culture. 7 (1). pp.51 – 57.
Dezdar, S., 2012. Strategic and tactical factors for successful ERP projects: insights from an Asian
country. Management Research Review. 35 (11). pp.1070 – 1087.
Huang, Y., 2008. Toward Semantically Enabled On-line Tour Planning. ProQuest.
Kamra, K., 2006. Tourism. Indus Publishing.
Kirkwood, R., 2003. Marine Mammals: Fisheries, Tourism and Management Issues. Csiro Publishing.
Krogerus, M., 2011. The Decision Book. Profile Books
Mehmetoglu, M., 2004. Tourist or traveller? A typological approach. Tourism Review. 59 (3). pp.33 –
39.
Robinson, P., 2009. Operations Management in the Travel Industry. CABI.
Voxted, S., 2011. Traditional and non‐traditional employees in production teams. Team Performance
Management: An International Journal. 17 (5/6). pp.299 – 310.
Wheeler, M., 2011. Backcountry Skiing. The Mountaineers Books.
Online
Nath, R., 2013. Plan your tour step by step. [Blog]. Available through:
<http://paradise-kerala.com/blog/kerala-travel-tips/planning-kerala-tour/>. [Accessed on: 2
Janurary 2016].
Rana, P., 2014. How to plan a perfect holiday trip. [Blog]. Available through:
<https://www.tourmyindia.com/blog/how-to-plan-a-perfect-holiday-trip-to-kerala/>. [Accessed
on: 2 Janurary 2016].
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