Operations Management in Tourism and Logistics

This assignment explores the application of operations management principles within the tourism and logistics industries. It delves into various case studies, examining how concepts like supply chain management, routing optimization, and sustainable practices are implemented. The focus is on analyzing real-world scenarios and proposing solutions to operational challenges faced by tour operators, transportation providers, and humanitarian aid organizations.

Tour
Operations
Management

TABLE OF CONTENT
INTRODUCTION................................................................................................................................ 4
TASK 1................................................................................................................................................. 4
1.1EFFECTS OF CURRENT MARKET TRENDS AND DEVELOPMENTS ON THE TOUR AND
OPERATIONS INDUSTRY.................................................................................................................................. 4
TASK 2................................................................................................................................................. 6
2.1 STAGES AND TIME SCALES INVOLVED IN DEVELOPING HOLIDAYS...........................................6
2.2 SUITABILITY OF DIFFERENT METHODS OF CONTRACTING FOR DISTINCT ELEMENTS OF
HOLIDAY AND VARIOUS TYPES OF TOUR COORDINATOR.....................................................................7
2.3 CALCULATION OF SELLING PRICE FOR A HOLIDAY.......................................................................8
TASK 3................................................................................................................................................. 9
3.1 PLANNING DECISIONS TAKEN FOR DESIGN OF A SELECTED BROCHURE..................................9
3.2 SUITABILITY OF ALTERNATIVES TO A TRADITIONAL BROCHURE FOR DIFFERENT KIND OF
TOUR COORDINATORS..................................................................................................................................10
3.3 SUITABILITY OF DIFFERENT METHODS OF DISTRIBUTION USED TO SELL A HOLIDAY FOR
DIFFERENT SORT OF TOUR OPERATORS...................................................................................................11
TASK 4............................................................................................................................................... 12
4.1 STRATEGIC DECISIONS MADE BY DIFFERENT TYPES OF TOUR OPERATORS.........................12
4.2 TACTICAL DECISIONS THAT COULD BE TAKEN BY A SELECTED TOUR OPERATOR IN
DIFFERENT SITUATIONS................................................................................................................................13
CONCLUSION................................................................................................................................... 14
REFERNCES...................................................................................................................................... 16
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INTRODUCTION
Travel and tourism industry has its positive impact on economy of United
Kingdom. In recent time industry of tourism and travel became a grown industry and
it generates high revenue in marketplace. United Kingdom is a tourist favorite place in
world and this made tourism sector a fastest growing exertion. Travel and tourism
industry are major contributor in economic funds of country due to its regular and
sustainable growth that is generating greater profits and contributing in economical
growth of nation. This is a sector is providing adequate level of support to their
economy and also helping in making developed country (Hoffman, Padberg and
Rinaldi, 2013). This report pays attention on several points that should be consider in
this sector like developing trends in industry, strategies that are involved in
development of vacation plan, procedure of brochure making with association of
distinct tactics like promotional tools etc. Thomas Cook is a travel agency founded in
2007 by merger of Thomas Cook AG and My Travel Group plc. It has its head quarter
in Peterborough, Cambridge Shire in England. They provide tour packages services
across the globe. This report will go to discuss tour operations management through
study of Thomas Cook within tourism and travel industry. It includes stages adopted
by an organization to create their travel plans involving negative and positive effects
of recent trends on tourism sector and this study also discuss about prominent
distribution channel of Thomas Cook travel agency (Gibson, 2012). Nowadays
preferred firm became a popular name in travel and tourism industry in United
Kingdom and providing support to its nations economy as well as their clients by
serving bets quality services. Tour operations management is a rapidly growing
business in current era of time that is generating number of employment that is
ensuring growth of social life of citizens of nation.
TASK 1
1.1Effects of current market trends and developments on the tour and
operations industry
Covers in leaflet.
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2.1 Stages and time scales involved in developing holidays
There are several services that involved in making holiday plans that help
management in serving quality services to its consumers. Thomas Cook adopts
various tools and techniques in their firm to set best plans for their different
customers. These stages are stated below:
1. Market Research – This search operation enable management to get to know
about taste and preferences of clients. It is a very much important task for
company to plan their holiday packages (Ronen, Pliskin and Pass, 2012).
Thomas Cook uses online market research technique to develop their holiday
packages that will enable managerial grid to recognize adequate demands and
want of customers and thoughts about different destinations in UK (Chand and
Katou,2012). This operation run by Thomas Cook with help of their website
that they run on Internet.
2. Planning & Scheduling - After completion of market research association
tries to execute views and preferences of clients in their organization. Planning
enables venture to design and schedule their tour packages as per customer
demand and tastes. Scheduling helps in matching holiday with time of
consumers. Scheduling enables managers to set distinct components of tour
plan like time period of holiday, best season for holiday, price of complete
plan etc. (Chon and Yu, 2012). This will help senior tour coordinator to
develop holiday plan as per client desire.
3. Forecasting – It means organization plan their holiday packages by taking
efficient measures from different other tour plans. In this forecasting
management tries to find out climate of particular destination in United
Kingdom and set up vacation plan according to this atmosphere. This tools
helps company to decide various elements like current position of that
destination is it suitable or not, than they are able to design their packages. For
e.g. a group of visitors wants to see London in snow fall but as per climate
coordinators deny for vacation plans at this time as this time is not suitable for
tourists (Redjem and Marcon, 2016).
4. Contracting – It is a tool that helps management in providing best quality
services to its customers and design distinct tour plans as per client
preferences. Contracting includes acquiring different type of services that they
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can serve to their consumers like restaurants, cab facility etc. Inclusion of
these options enables organization to make their vacation plan successful and
create satisfaction among customers.
Above are steps that include in development of different tour packages and enables
management to design their plan as per consumer demands and make them satisfied.
2.2 Suitability of different methods of contracting for distinct elements of
holiday and various types of tour coordinator
Methods of contracting enables clients to save their money in putting
additional costs and to get services according to their desires and demands. Various
methods of contracting may help corporation to provide services to its clients as per
their requirement and in making good operator customer relationship. This report is
providing knowledge about methods of contracting adopted by Thomas Cook are
stated as beneath:
 Sales Only Contract – In this method operator use only that components
which are actually in need. This methods means operator chooses plans as per
their choice and sells the same to its customers. This kind of contract provides
best selling alternatives in peak seasons and coordinator can sell packages
easily. This sort of option depends upon experience of corporation with their
last customer (Evans, Stonehouse and Campbell, 2012). Thomas Cook pay
only for that services which are actually consumed by their clients and then
return that money to original vendors. This can be understood by this example
a group from China wants to stay in London in a 3 star hotel so that Thomas
Cook booked 10 rooms in a desired hotel but that group used only 8 rooms
thus firm returned 2 rooms back to hotel (Medliked., 2016).
 Fixed Contract – This tools assist managers in serving best quality services to
its consumers and make them satisfy with services of vendors. This type of
services enables association to provide services as per their status in tourism
industry. Thomas Cook provide employment options to small vendors by
making small contracts like catering, cab, facilities etc. This kind of contract
also includes risk factor that if in any case services taken from small vendors
are not sold then organization has to pay for these unsold services. This will be
more clear with this instance Thomas Cook make a contract with cab service
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provider that at time of Christmas holiday they will provide this facility to its
customers and corporation pays for that on weekly basis.
Above study of contract method enable the understanding that selected
organization uses short and small cost associated contracts that ensures success of
their different tour packages and make clients satisfy by providing all and distinct
kind of services. Company uses various techniques that assist firm in getting
customer attention and insists them to take service from preferred enterprise
(Jonesand, Robinson, 2012).
2.3 Calculation of Selling Price for a holiday
This would be clearer by taking an example and that is further explained.
A group of Russian people wants to visit some places in United Kingdom. Tenure of
their vacation is more than five days and total number of students is 50. For their tour,
expenses are in Euros. Complete cost of their visit will be calculated in Euros.
People will share the rooms of hotels like two students, so total rooms occupied by
50/2 = 25 rooms, will occupy one room.
Cost of 25 rooms for 5 days will be = 25*54 = 1350 £
Cost of B&B for one individual person = 12 euros
Cost of B&B for 50 boys for 5 days = 50*5*12 = 3000 euros
Table 1 Calculation of selling price
Expenditure Type Cost
Luxury Coach 5600
Local tour guide 1000
Hotel Cost 1350
Cost for B&B 3000
Total Expenses Euros 10950
The margin of profit is 25% that is euro 3000.
So selling price of package = 10950 + 3000 = 13950 Euros.
Thus selling price vacation plan for 50 students would be 13950 euros.
Selling price for one person = 13950/50 = 2750 euros.
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TASK 3
3.1 Planning decisions taken for design of a selected brochure
Decision making that is associated with design of brochure is an important
task for any company that may assist management in making people aware about their
provided services. Tour coordinator of Thomas Cook always tries to set up those
vacation plans that will be able in attracting more number of customers (Hoyos,
Morales and Akhavan-Tabatab ei, 2015). Planning of brochure depends on current
market trend that helps in gaining competitive advantages and will assist in getting
customer attention towards corporation. Brochure of holiday package of selected
association relies on actual services that are provided by venture with destination’s
pictures that attracts more clients towards places. Procedure of planning includes
various components like color of brochure pages, photographs, and total number of
pages, marketing elements of services etc. The brochure is developed by operations
like planning, organizing and execution.
 Finding issues that affects decisions – It is a fundamental responsibility of
organization’s management to find out issues that are related with whole
planning procedure of brochure and leaves negative impact on brochure
designing. Issues are like target market, language of different regions, cost of
designing and execution, region of publishing brochure etc. This type of issues
affects business operations of Thomas Cook negatively (Sigala, 2014).
 Budget and target market – This topic includes recognition of budget for
whole process of designing brochure and this also includes identification of
target market that is more preferable by company clients. This complete
procedure contains cost of making brochure and describes details of other
expenditures that affect organization.
 Format of brochure – under this heading manager identifies proper format
for brochure that is understandable for consumers like will it be single color or
multicolor etc. This heading includes looking of brochure that actually attracts
customers. Format of brochure includes several components for instance name
of company, color of brochure, elements of brochure, holiday tenure and
prices that are related with tour plans etc.
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Brochure making is a single topic but it includes various steps of designing or making
brochure and this section concludes all aspects that are connected with brochure
making stages.
3.2 Suitability of alternatives to a traditional brochure for different kind of tour
coordinators
Brochure is a tool that plays a wide role in selling of tour packages as it
provides complete description of packages to company customers and helps in
retaining clients with Thomas Cook. A brochure should be designed in a way that it
will be clear and understandable to clients and must be able in attracting more
consumers towards corporation and clearly explain all aspects of tour plan that
association made for their customers (Luis, Dolinskaya and Smilowitz,2012).
 Email Brochure – This type of tour operators help outbound tour
operators to serve customers with help of email that is a technological
developed option. This heading includes that various tour operators
mail all details of vacation package to its customers and make them
aware about price and locations. It is a most easy and cheapest way to
publish services and make strong consumer base for their company. It
is a most efficient way of publishes servicing in marketplace for
concerned industry (Guo and He, 2012).
 E-Brochure – It is a different way of publishing services in market
and make purchaser aware about services that are provided by
corporation. E-Brochure is an easy and most convenient way to make
connection between association and its target buyers. E-Brochure is
attached with website of Thomas Cook and any consumer that visits
company site he or she will be able in viewing that brochure easily.
 Video Brochure – Most attractive way that gets attention of many
clients and also provides full description of travel plans that is video
brochure that contains short and long clips of destinations and services
that are provided by enterprise. It is a collection of different site’s
pictures that gains attention of consumers towards association. This
sort of brochure attracts more clients than any other method of
brochure. This method is suitable for inbound travel coordinators.
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This study helps in making relevant decisions related to brochure making and
provides several alternatives in brochure making that attracts more clients and
suggests cheaper and easiest way to publish services that is actually work for getting
customer attention. Brochure is a tool that is used for explaining company services to
its target buyers of tourism plan. It is a technique that enables purchasers to make a
clear decision and also provide comparison between different kinds of tourism plan
(Naji-Azimiand et. al., 2012).
3.3 Suitability of different methods of distribution used to sell a holiday for
different sort of tour operators
Thomas Cook has various tools that it can adopt to sell their services in market
either they can sell with help of mediators or they can do it directly. Firm does not
focus on a single method; it evaluates several methods and chooses that tool which
gives more benefit than other alternatives. Company always tries to adopt that
technique which serves facilities directly to consumers and make buyers aware about
services and facilities that are served by venture. There are lots of methods that
organization can adopt to sell their tour packages and these are stated as beneath:
 Internet – It is a best alternative to sell services of association in marketplace
and generates more returns in comparison of direct selling of services. Thomas
Cook has a separate department of IT to post services on company website
with new and improved features on regular basis that clients get to know about
latest tour and travel plan (Allahyari, Salari and Vigo2015). Management
provides additional discount on those customers whom book their package
with help of company website. By this discounting technique corporation
enables high customer attention towards enterprise.
 Direct Sale – In this type of marketing tool workers of venture meets their
clients directly and seldom outlets are another way of selling vacation plans
directly to buyers. This method helps in creation of strong customer base for
organization. Direct sale may help business to get more returns and to achieve
competitive advantages.
 Telephone – In this type of selling company make calls to selected clients and
make them aware about several tour packages that may help corporation in
lead generation regarding customer’s clients. Employees of Thomas Cook
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make calls to their regular and old clients to elaborate their travel plans of
various locations with nominal prices that attract more clients on loyalty basis
(Kauppi, Moxhamand Bamford,2013).
Internet, direct sell and telephonic are the methods that provide distinct
alternative of selling company services to regular as well as new buyers of services
with help of various tools and techniques. Above techniques elaborates that Internet is
a cheapest and easiest way to make customers aware about their overall serving with
full description of vacation packages.
TASK 4
4.1 Strategic decisions made by different types of tour operators
There are various decisions taken by Thomas Cook to expand their business
operation in various regions aw well as other different industries. These are decisions
that are associated with serving best quality services to its clients and make them
aware about full details regarding destinations, prices, and other options related to
quality services. These are decisions that contains several components for instance
package cost, designing brochure, appropriate distribution of services and use best
distribution channel, and identifying who will be target buyers (Bethapudi, 2013).
These are strategies that enable sustainable growth of business and ensure
market position of firm. Below are strategic decisions taken by business are as
follows:
Segmentation, Targeting and Positioning – In this type of strategy
organization can make policies to classify customers as per cost of different tour
packages. Reason behind this strategy execution is that this enables company to
provide best quality services and retain them as loyal consumers of enterprise. It is a
fundamental decision taken by selected firm to serve best quality of services to its
clients that shall create strong client base for venture in industry.
Promotional Strategy – It is a core part of strategic decision-making that
ensures selling and make popular of organizational services among buyers. This
strategy helps in raising profits and benefits of firm that further helps in maintaining
prominent position in marketplace. It is a strategy that ensures higher competitive
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advantage and greater revenues for association by generating quality business
operations and tour coordinator consider this strategy as a best tool behind greater
sale. In this heading manager of corporation generates knowledge for customers
regarding different tour packages and also mention distinct discounts and price of
vacation packages (De Sausmarez,2013).
There are various strategies that help in attaining competitive advantage and
assures strong market position that generates more consumers and also provide help in
maintain those customers with corporate house. Above are strategic decisions that
ultimately help in making convenient tour packages that actually attracts consumers
and retain them with business. Segmentation, targeting and positioning is a tool that
helps in identifying customers as per rate of package and promotional tool is a factor
that makes organization services popular in their client eyes and insure company sale
in relevant industry and in market as well. Thomas Cook uses various strategies to
sale travel plan that and make customers aware about qualities of their services that
they are providing best services in comparison of their rivals.
4.2 Tactical decisions that could be taken by a selected tour operator in
different situations
Thomas Cook is an organization that operates their activities in hospitality
sector and uses various tactical decisions to improve their benefits and wants to make
strong customer base for their company. There are various external factors that affect
these tactical decisions either negatively or positively. Fundamental objective of firm
is to increase profit and take decisions in favor of corporation (KhairatP0Fand Maher,
2012). Tactical decisions taken in Thomas Cook are as follows:
Maximizing occupancy of contracted beds: For sustainable growth of
company management always tries to raise occupancy of beds in hotels that are in
contract with preferred organization. It is to be considering as bets way to generate
higher profit for corporate house. This may help in achieving competitive advantage
and also increases number of customers.
Utilization of coach and aircraft services: It is an another tactical decision
taken by organization tom provide aircraft facility to its buyers and this facility also
includes provision of coach to clients that is very unique and trendy in currents time
that help in gaining customer attention of customers. This type of decisions may help
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in achieving expected targets and also creates benchmark in related industry and stand
Thomas Cook apart from their rivals and growth of association also motivates its
employees to work hard for attaining targets of venture (B. Di Pietro Caoand
Partlow2013. Referred organization also deals in air coaches but does not include
them in their tour packages but after analyzing tactical decisions company started to
add them in cost of their cost plans.
Above is the explanation of distinct tactical decisions that help an organization to
achieve set target in limited period of time or in other words these are decisions that
enables corporation to create strong customer base that could be retain with firm for
longer period of time. Tactical decision making is a critical task that has to be taken
by management of selected company and they get affected with several internal and
external factors for e.g. working style of employees, budget of corporate house,
quality of services are intrinsic aspects that affects operations of tourism sector
negatively or positively. On the other hand there are many extrinsic factors like
changes in climate of destination, prices of many other services etc. affects operations
of business house. Thomas Cook is a company that has an efficient management that
is able to handle these tactical decisions aw well as generates higher revenue for their
association).
CONCLUSION
Above study can be concluded as in recent time most, fastest and rapidly
growing industry is travel and tourism sector because people work a lot for their
survival and they want holiday from their routine life and this became reason of
growth of tourism industry in current time. This report concludes several aspects
related to tour operation management like calculation of selling price, various
strategic decisions and factors affecting tactical decision making etc. This report also
enable explanation regarding various steps that are included in brochure making as
well as that are included in recognition of client preferences and tastes that enable
them to buy a tour package. Assignment also discussed idea of lead generation that is
associated with interest of customers that will help them to identify what are the
requirements of their target buyers. This study also pays attention on different market
trends and also considers several changes that occurs in marketplace and also provide
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information regarding procedure of developing holidays that provide clear details
regarding travel and vacation plan of an organization. At last it can be said that this
report address all aspects that helps in profit maximization as well as lead generation
regarding consumer interest and various promotional tools and information that is
related with various strategies and brochure making.
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