Tour Operations Management - Trail-finders Ltd

Tour Operations
Management

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............................................................................................................................................5
2.1 Assess the stages and timescales involved in developing holidays......................................5
2.2 Evaluate the suitability of different methods of contracting for different components of the
holiday and different types of tour operator................................................................................6
2.3 Calculate the selling price of a holiday from given information..........................................7
TASK 3............................................................................................................................................8
3.1 Evaluate the planning decisions taken for the design of a selected brochure ......................8
3.2 Assess the suitability of alternatives to a traditional brochure for different types of tour
operator.......................................................................................................................................9
3.3 Evaluate the suitability of different methods of distribution used to sell a holiday for
different types of tour operator...................................................................................................9
TASK 4..........................................................................................................................................10
4.1 Evaluate the strategic decisions made by different types of tour operator..........................10
4.2 Compare the tactical decisions that could be taken by a selected tour operator in different
situations...................................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES .............................................................................................................................13
.........................................................................................................................................................1

INTRODUCTION
Tour operation management is a significant constituent of tourism industry where tour
operators are crucial players to distribute services. Tourism industry is an important attribute in
economy that largely contribute in economic development and also provides employment to
people. Tour operation is a business that have to integrate with other business to provide
satisfactory services to their customers. This report based on Trail-finders Ltd. which is a well-
known independent travel company in UK. It has 31 travel centres in UK and more 3 in Ireland.
This report is based on current and recent trends in travel and tourism industry and main
stages and timescales while developing tour packages in tour industry. In addition to it explains
planning decisions while selected brochure in travel and tour industry.
TASK 1
1.1 Analyse the effects of current and recent trends and developments on the tour operator’s
industry.
Travel and tourism sector is most developed sector and economically viable.. It
encounters lots of changes that are very important for organisational development and its
enrichment. In present scenario its scope is very large many people adopts it as a profession to
give services to clients and earn huge amount (Nakayama and Bucks, 2012). In changes that
occurs in that industry that different service providers amalgamate with each other and work as a
unit to give their service and satisfy their needs and wants.
Outbound tour operators:
Outbound tour operators sell their products and services to domestic country tourist to
provide multinational tours. They provide multiple tour packages to frame multinational tour
packages (Page, 2014). So they have remain update about recent and current changes that occurs
in today scenario. There are 72.8 million outbound visits in UK that increase 3% from 2016.
Specialist tour operators:

In specialist tour operators consist of many types of tour operators that provides their
services to niche market and special geographical features in country. Depends upon
geographical arena there are different types of tour operators in that consist: outbound tour
operators, inbound tour operators and domestic tour operators.
Direct sell tour operators:
In direct sell tour operators, they provide services to customers directly without share of
intermediaries. In that scenario they don't have to pay commission and extra charges to them. So
it is beneficial for customers indirectly, packages become economical for them. In recent trend
consumers are books their tour packages at last minute that denoted by survey in 2018 that 39%
participants select to book their packages at last minute. Tourist prefer to visit new places 22%
increase in participants are willing to visit new places. Visitors are more interested for ecological
tours that shows recent survey.
About industry and its recent changes:
Travel and tourism industry is most dynamic industry that have to encounter many
changes that are very crucial for them for expansion of market share. In old days people spend
their most time in work and other activities only rich class people spend their leisure time in
travel places of local areas. At that time, they have low level of income that directly affects its
business proceedings (Rohani, Wijeyesekera and Karim, 2013). In 19th century major
developments occur in that industry most dealers merge with each other to give satisfactory
services to their customers. People become more aware about exploring places in recent world
and spend huge amount on visiting places. People become more economical viable and
independent now. In major tour operators includes Thomas cook which is travel and tourism
related financial service company started its business from Manchester England. Its segment in
marketing consist of provides benefits by save cost and regular improvement in their plans so
that they grow in their business. Fierce competitors of Thomas cook includes BCD travel,
Carlson wagonlit travel etc.. The another tour operator is TUI group which is German travel and
tourism industry its origin is in Germany. There segment strategy is to distribute and fulfil power
up to customers by providing flexibility to provide packages by eliminate risk. In fierce
competitors of TUI are Kuoni travels, Barrhead travels and Thomas cook.

In present scenario to protect the rights of people there are different types of laws and
bodies working to protect their rights and duties that are as follows:
The Travel association (ABTA):
ABTA is a travel association which works for tour operators and agents in worldwide
from about 65 years. They give advice and support to travellers and agents on different aspects
such as service standards, health and safety and promotions of travel and tourism in both home
and foreign marketplace.
Association of independent tour operators (AITO):
Association of independent tour operators is a British travel industry and trade group that
represents around 120 specialist and tour operators in world wide. It works in protecting rights
and duties of travellers and agents to give them assurance and build trust among them (Sheng,
Amankwah-Amoah and Wang, 2017).
Hence travel and tourism industry is an important attribute in world and very much
prosperous industry that helps in economic growth and provide no. of opportunities of
employment.
TASK 2
2.1 Assess the stages and timescales involved in developing holidays
There are different stages and timescales that playing important role while developing
holiday plans in travel and tour industry that are as follows:
Market research:
The main objective of market research in tour and tourism sector is to evaluate each and
every factor that associated with market and destination. It is very crucial and difficult task to
manage all things properly. In that tour operators have to access interest of people and according
to it they have to operate interest and specialization of consumers (Bellman,2015). Tour
operators have to find out potential, appeal and accommodation and other services while
operating in travel and tourism industry so marketers have to find out interest area of consumers
and then plan tour packages.

Planning and scheduling:
In planning and scheduling of tour packages it is very necessary in organisation to
coordinate with each other to get effective results (Chand and Katou,2012). In trail finders top
management give instructions to their subordinates and according to them all works and
proceedings prevails in whole organisation. In scheduling and planning dates, different types of
tour packages, transportation and hotels and beverages are planned and scheduled.
Forecasting:
In forecasting includes train finders have to evaluate future demands of consumers by
accessing different factors such as season, recent trends and development in tourism industry in
particular locality with government regulations are important aspects that helps to forecast
demand that appear in future (Cleere, 2012). Forecasting helps to grab large market share and
give satisfactory results to their clients.
Contracting:
In contracting of travel and tourism sector includes to coordinate among different
vendors, suppliers and dealers so that they integrate with each other and give satisfactory
services to their customers. In contracting includes allocation of resources, commitment and ad
hoc activities are includes to accomplish their goals and objectives.
Timescales:
In timescales includes to accomplish tasks and duties according to planning and
scheduling of tours and according to them complete the given services.
2.2 Evaluate the suitability of different methods of contracting for different components of the
holiday and different types of tour operator
Trail-finders is well known name in travel and tourism sector by giving various services to their
consumers for enchanted experiences. For satisfactory results organisation integrate and contract
with other dealers, contractors so that they provide their services to consumers in integrate
manner (De Sausmarez, 2013). In that scenario contracting plays major role in travel and tourism
industry. There are different types of contracting components that are as follows:
Allocation contract:
In allocation contract services providers integrate with each other and provides
destinations, packages to their consumers so that they not feel any difficulties in handling various

customers. In that they provide all required services in better manner so that effective results
should be accomplish in Trail-finders.
Ad hoc contracts:
In that type of contract in that some plans and packages are frame for special purposes
and that are not pre decided. So in travel and tourism industry without planning and
arrangements of costs that is scheduled on daily basis and hourly basis. Trail-finders planned to
arrange according to discount packages in that sector.
Time charter:
In time charter it fix for a no. of voyages or for trips not for a period. Time charter not
includes loading and uploading cost in travel and tourism industry (Dhiman, 2012). So to
coordinate in different sectors there is need to different dealers so that effective results should be
accomplish.
Schedule services:
In schedule services provides work and services that are pre plan and complete according
to time schedule in travel and tourism industry. Such as airport transport services operated in
schedule manner.
Fixed contract:
In fixed contract refers to increase sales and profit even in off season by managing
consumers interest and effectively control risk associated in travel and tourism industry.
2.3 Calculate the selling price of a holiday from given information.
Selling price is that price on which product and services sold to buyer of product. It is
represented in currency units (Goldsmith,Tsiotsou, 2012).
For example: students of Europe decide to visit from Paris to Austria to explore the places. For
that they have to make luxury trip of 5 days by evaluating all these factors that are as follows:
Cost of room (89*5) 445
Cost of luxury coach per
person 7922 / 50 158.44
Visitor attraction charges 45.6
Cost of a local tour guide 896/50 17.92
Total cost 666.96

Add mark up 186.7488
Total cost per person 853.7088
Working note: Conversion in Euro 7922
As per mention calculation, cost per person is 853.7088. above facts and figures show
that cost of room is 445 per person and and cost of luxury coach is 158 rupees in which
variable cost is fluctuate and fixed cost is stable. Hence total cost for a person in 854
rupees.
TASK 3
3.1 Evaluate the planning decisions taken for the design of a selected brochure
Brochure is a common marketing tool which is used for advertising and promotion of
services or product in any industry (Duggan, 2012). Brochure helps to businesses to launch new
products in existing market and in new market sphere. There are different factors that contributes
in brochure development.
Planning issues in brochure:
In organisation brochure play crucial role in advertisement and promotions in better
manner. There are some issues while frame brochure in content and their structure, style, quality
of paper and font size that are different from organisation to organisation.
Planning of brochure depends on budget of organisation and their objectives. Content if
not in proper manner in brochure then it not properly clear in front of consumers.
Structure of brochure should be right manner so that it give appropriate information.
Paper quality is very important factor that impacts a lot. If it is not appropriate then it spoils
perception of consumers.
Size of fonts should be equal manner not in different in one brochure so that it look
harmonious.
Timescales and stages of production:
in organisation while frame brochure there is need to pay attention on important
considerations that are brief should be creative enough so that it grab attention of consumers. On
other hand content should be proof read so that errors should be eliminate in proper way. While
launching brochure there is need to follow specific steps so that it give desirable results. If these

attributes not be considered in proper way it impacts negative and attractive brochure should not
be achieve.
Other formats of brochure:
organisation can promote their produts from other formats of brochure includes CD,
video, internet and TV from that marketers can promote their products and services with help of
Brochure in trail-finders.
Examination of distribution channel:
Brochure helps to reach at large consumer base but for that effective distribution channel
should be adopted. In which includes direct mail, specialist carriers, consolidated delivery if
proper distribution network is not adopt by marketers then it can not reach at potential customers.
Direct mail:
with help of direct mail marketer can reach at potential consumers by observing their
taste and preferences in better manner.
Travel agencies:
Travel and tour operator have to contact with other tour operators that connect with trail-
finders so that they can deliver best services to their customer’s.
3.2 Assess the suitability of alternatives to a traditional brochure for different types of tour
operator
Brochure is an important attribute in advertisement and promotions of goods and services
and it help to reach at large consumer base. It has different aspects that brings difference in
traditional and modern brochure and in their objectives also.
Thomas cook to reach at masses use brochure which is best source to advertisement and grab
attention of people. It is best source to organisation to take feedback also of people and to
acknowledge their key interest area of people. In e brochure organisation design brochures and
send through different modes such as social media and webs.
On other hand TUI group used traditional brochure in which content is concise and visual
images should not be use in that so that it is not as much effective in comparison to modern
brochure. In traditional brochure structure of information is different from modern brochure that
are not as much clear in view.
For train finders the best method of advertising and promotions is e brochure because it helps to
reach at large consumers and grab their attention.

E- brochure:
E brochure is an informative document that is folded in a template, pamphlet and in
leaflet. It is a unfolded paper set that can be put in packet. Trail finders widely use that tool to
advertise and promote their services.
CD ROM:
CD ROM stands for compact disk read only memory, it can be read by an computer with
optical device. In case of Trail finders it uses CD ROM to save data and information for future
perspective.
Smart phone app:
A mobile application app is an software designed to run or control a mobile device,
smartphone or mobile device. In case of Trail finder it operates an app that helps to know
consumer responses and their requirements related to tour packages.
3.3 Evaluate the suitability of different methods of distribution used to sell a holiday for different
types of tour operator
Distribution channels and methods play a very important role in organisation to reach at
potential consumer base. To communicate in effective manner there is need to link with right
consumer base. The most appropriate method in case of luxury tour packages is internet because
rich class people can easily access to these sources and also marketers can reach is also large.
There are different channels of distribution in travel and tourism industry that are as follows:
Direct mail:
This is one of best method to grab large and potential consumer base by observing their
likes and dislikes on websites. In that service providers send relevant mails to their clients and
according to them plan the tour packages. In that they evaluate their past choice and behaviour
and according to it sent them mails. Direct mail is suitable for tour operators because from that
source marketers can take feedback easily and make reforms according to them.
Consolidated delivery companies:
It is another channel of distribution in which major companies and service providers
integrate to each other to satisfy consumer wants and give all services under one roof. In travel
and tourism industry there are more than one tour operators integrate with each other to provide
services to them. So, it works as a channel in promotion and advertisement of trail finders.
There are different methods of distribution in tour and travel industry that are as follows:

Direct distribution:
Direct distribution is one of best method for small dealers in different scenario. In that
method dealers contact directly with their clients and build personal relationship with them so
that they become loyal consumers for them (Horner and, Swarbrooke, 2012). They influence
them to buy their services by mould their behaviour and tactics to increase their sales. It is best
suitable for them because marketers can reach frequently to customers and increase their Market
base.
Internet:
Internet is one of the most useful and secure method to reach at large no. of consumers .
Social media is one of the most accessible sources that help to marketers to reach at their
potential consumer base and grab their attention as well. Internet is most suitable source because
from that marketers can reach at large base of consumers and in internet competition is also less.
TASK 4
4.1 Evaluate the strategic decisions made by different types of tour operator
Strategies play crucial role in organisation while launching and expanding market share
in which various strategies should be adopted (Howes, Scarpaci and Parsons, 2012). For
successful implementation of strategies there is need to understand wants and needs, perception
of consumers to take effective decisions related t price, location and accommodations etc. are
main attributes that helps in strategy implementation.
Pricing strategies:
Trail-finders is most well-known brand name in hospitality industry in which travel and
tourism sector it deals to attract lot of consumer base. To grab attention of consumers it is
necessary to fix reasonable prices so that they easily avail their services. Pricing should be set
according to market segment.
Surcharge policy:
Surcharge policy consist of Fees, charges, taxes or regimes that included in cost of goods
and services. Surcharge includes in exist tax and not added in stated price of goods. By adjusting
with price in goods and services gives benefits to consumers.
Bundle pricing:

In bundle pricing companies offer discounts to consumer when they purchase goods and
services in bundle rather than in separately. In case of Trail-finders when consumers purchase all
services from them or purchase a complete tour package they give discounts on them.
Economic pricing:
Economic pricing is an valuation technique in which discounts and lower price should be
offered on some products. It widely used in retail businesses, in case of Trail finders it gives
economic pricing on services that rarely avail by consumers. Trail finders gives discount when
consumers avail hotel services from their tie up hotels.
Skimming pricing:
Price skimming is a pricing strategy in which initially higher prices are set by
organisation and gradually and lower price over time. In case of Trail finders it fixes price high
at initial level and by observing consumer interest and preferences they lower price over time.
Segmentation and positioning with image:
segmentation, targeting and positioning is very important factor in business. To grab right
consumers there is need of proper segmentation of market and according to them build cost and
services. Trail finders have to divide their consumers according to different factors such as
demographic and behavioural aspect. Trail-finders divides there market on basis of age group in
which it mostly deliver to youngsters, couples according to them they frame their tour packages.
On other hand with help of behaviour they monitor their activities on social media and evaluate
their behaviour and tour packages.
Distribution decisions:
Distribution is very important tool in organisation to provide goods and service to
potential customers. In trail finders they decide the best distribution channel to reach to their
potential consumers.
Strategies are very important for organisation while expanding and new launch of product
and services in different market sphere (Witt, Brooke and Buckley,2013). In travel and tourism
sector which is most changing and competitive industry that have to adopt new strategies to
attract lot of consumers in market. In that scenario organisation have to take many decisions
while expanding their market relation to price, product, place and distribution network are main
aspects that have to adopt. According to market scape and competitor strategy organisation have
to adopt different strategies according to demand and supply of products and services.

4.2 Compare the tactical decisions that could be taken by a selected tour operator in different
situations
In hospitality industry tactical decisions play crucial role in business expansion and
developments to create and build portfolio of consumers. Tactical decisions helps to attain goals
and objectives of organisation.
Tactical responses:
Responses and feedback are very potential for organisational development that are
accessing through different sources in industries. Feedback help to reform in organisational
products and services and give opportunities to organisation to erase their mistakes in proper way
and effective results should be achieve (Li, Hu and Duan,2017). Feedback should be achieved in
different manner by social media, questionnaire and other modes that helps to evaluate market
position and their value in fierce competitive world. Feedbacks are useful in case of fierce
competition and price wars that prevails in industry so at that time trail finders take revert about
their products and make necessary reforms.
Tactical pricing:
Cost is an important attribute that help to grab attention of large consumer base.
Organisation have to collect large consumers to avail their services there need to fix prices
according to consumer income base and competitors so that competitive advantage should be
gain in effective manner. For example fluid pricing which is very important term in travel and
tourism sector in which prices constantly up and down according to demand and fill capacities.
Trail-finders use these price strategy to grab large base of consumers.
Tactical marketing:
marketing is an important attribute which grab attention of large consumers in effective
manner. The main role of advertising and promotions is to reach at their large and potential
consumer base by right type of advertisement at right time and place so that effect results should
be achieve. In trail-finders advertisement plays very crucial role to attract large consumer base
and gain competitive advantage and remain market leader to gain huge share of market by
effective advertising and promotional strategies. In trail-finders discounting is an important
factor which use to enchant large consumer base.
External factors decisions:

In external factors consist of Macro environment analysis that are very beneficial for
organisation while expanding its market share or launch a new product into market (Mohan and
Baskaran, 2012). So at that time effective evaluation of macro environment factors should be
taken that helps in risk elimination at their best level and new operations can be successfully
accomplish in trail-finders. In external factors includes political, social and economic etc.. that
affects on business environment both positive and negative manner.
CONCLUSION
From the above report it has been concluded that travel and tourism sector is an important
part of economy and develop day by day. It encounters many changes and development that is an
important attribute in tourism development. In travel and tourism sector while plan holidays
packages timescales and duration play a very important role in success. In addition to different
types of operators are operating that helps in consolidate activities of travel and tourism sectors
which enables to give satisfactory services to their consumers. Also different strategies that
helps to take necessary decision making in every sector.

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Online
Journal of Tourism & Hospitality, 2017. [online]. Available through:
<https://www.omicsonline.org/open-access/emerging-trends-in-tourism-opportunities-
challenges-and-implications-2167-0269-1000318-96507.html>.

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