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Vertical Integration of Thomas Cook and Its Impact on Competitiveness

   

Added on  2019-12-28

15 Pages4996 Words203 Views
Leadership Management
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Tour OperationsManagement
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TABLE OF CONTENTSINTRODUCTION ..........................................................................................................................3TASK 1 ...........................................................................................................................................31.1 Analyzing the effect of current and recent trends and development of on the tour operatorsindustry........................................................................................................................................3TASK 2 ...........................................................................................................................................52.1 Assessing the stages and time-scale involved in creating holidays.......................................52.2 Evaluating the suitability of different methods of contracting for different components ofholidays ......................................................................................................................................62.3 Calculating the selling price of a holiday .............................................................................7TASK 3............................................................................................................................................83.1 Evaluating the planning decisions taken for the design of a selected brochure.....................83.2 Assessing the suitability of alternatives to traditional brochure and recommending the mostappropriate of Thomas Cook tour packages................................................................................93.3 Evaluation of the suitability of different methods of distribution used to sell a holiday andrecommending the most appropriate of Thomas Cook tour packages.......................................10TASK 4..........................................................................................................................................114.1 Evaluating the strategic decisions made by different kind of tour operator........................114.2 Comparing the tactical decision could be taken by Thomas Cook ....................................12CONCLUSION..............................................................................................................................13REFERENCES .............................................................................................................................142
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INTRODUCTION The term “Tour Operations” is the definition of combining different elements of Traveland Tourism (from products of an airline, transfer from/to an airport, accommodation providerand services of a local representative) by a tour operator into a package offered for a combinedprice. Tour Operations are regulated by laws and policies and constantly faces externalinfluences and challenges. Customers, who do not have time to arrange DIY holidays, will seekthe products of a tour operator as they possess contracts with several airlines, hotels, etc., andmight also, have influence over other organizations such as tourism boards and other governmentauthorities (Zhao, 2010). Due to these connections, tour operators are able to create packages fordestinations which otherwise might be difficult and expensive to visit. Tour operators can maintain profitability only if they operate on high levels of capacity aspackage holidays loses all its values if unsold before the departure date. As a result of the above,tour operators have to constantly analyze the demand of the market as such enable their suppliersto plan ahead so tour operators can obtain a low enough price to attract customers. Thomas Cook Limited is a British charter airline based in Manchester, England. It servesleisure destinations worldwide from its main bases at Manchester and London Gatwick Airport.It also operates services from eight other bases around the United Kingdom (Thomas CookGroup Key industry trends: December 2013, 2016). Thomas Cook arranges transport,accommodation, activities and any extra services that might be needed. They need to understandthe tourism industry really well, know which are the most affordable routes and modes oftransport, destinations where tourists get most of the adventure and what services can be offeredfor free. A holiday comprises at least one overnight stay and consists of a pre-arrangedcombination of elements - typically a flight plus accommodation or car rental - that is sold at aninclusive price. The present study evaluates different aspects of tour management process. TASK 1 1.1 Analyzing the effect of current and recent trends and development of on the tour operatorsindustryThere are several changes in travel and tourism business that are creating huge impact onbusiness operations of tour operators. On the basis of different report it has been identified that,3
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travel tourism sector reflects positive trends in growth of industry in 2014 as compared to 2013.This factor also leads a positive impact on hotel. The emergence of new budget hotels along withlow cost 4-star accommodation services has created huge effect on selection on accommodationservices of price sensitive consumers (Kyriakidou, 2005). Online travel sales has been addressedcontinue growth in overall sales of companies in travel and tourism business. Furthermore,Consumers are increasingly taking in account the internet and online services to assess widerange of information through which consumers are able to take appropriate purchase decisions.In order to achieve good return from online services, a strong digital strategy is essential forhandling various operations of tour management to increase profitability and reduction(Grimwade and Carter, 2010).As per the evaluation of different tourism statics, it has found that inbound tourism in UKis increased by 6%. In this context, the number of travelers has been raised by 2m to 34.8m in2014. These figures are showing that tour operators are having good opportunity to increase salesand profit along with market share in UK. In addition to that it has been evaluated that thespending of international visitors is also enhanced by 3% to £21.7bn (Travel and Tourism in theUnited Kingdom,2014). Therefore, travel agencies have earned appropriate profit from overseasbookings of different services. In this context, it is evaluated that 40% of total tour bookings aremade through wide range of online booking channels that results internet travel booking revenuehas been grown by more than 73% within last five years. The growth of social provides anopportunity to service user to examine the views of other individuals. The number of visitors in 2014 has been reached to 34.4 million since after 2010. On theother hand, the average expenditure made by travels was £636 in 2014. It has shown positivetrends during the peak of £650 that is reflecting negative trends in peak season of 2013. ThomasCook is one of the leading travel and tourism organizations that has maintained strong positioninto market for providing quality of tourism facility and offers to its tourists at the compatibleprice (Sharpley, 2003). For rendering the low cost, cost management and service management isidentified as most crucial part of business management for tour operators companies. In thisregard, Thomas Cook has to take care about proper planning, forecasting, allocation of elementsand data present with help of time- series, and ad hoc charting strategies for maintaining thebalance between quality and cost against other tour operators who are present in UK market. 4
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