Tour Operations Management : Assignment

Added on - 21 Jul 2020

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Tour OperationsManagement
Table of ContentINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................11.1 Covered in Poster..................................................................................................................1TASK 2............................................................................................................................................12.1 The stages and timescales involved in developing holidays.................................................12.2 Suitability of methods of contracting for different components of the holiday...................22.3 Calculation of the selling price of a holiday........................................................................4TASK 3............................................................................................................................................43.1 Evaluation of the planning decisions taken for brochure......................................................43.2 Suitability of alternatives to a traditional brochure for different types of tour operators....53.3 Evaluate the suitability of different methods of distribution used to sell a holiday..............6Task 4...............................................................................................................................................84.1 Strategic decisions made by different types of tour operator...............................................84.2 Tactical decisions that could be taken by Thomas cook......................................................8CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................10
INTRODUCTIONTour industry is one of most growing sector in current time and most revenue generatingall over world. In following report, effect of recent trends and developments on tour operatorsindustry especially in United Kingdom will be discussed. As a lot of people make their holidaysto several places in world, this leads to more complication for tour companies. To understandholidaybetter, there are some stages and timescales involved in developing holidays. To avoidany disputes in future, there are many different methods of contracting related to holidays andtour operators. Calculation of selling price pays a vital role in providing travel packages bytourism agencies or operators. Tour operator take various tactical decisions to gain maximumcustomer satisfaction and make profit out of it. This industry is vast as it has different category oftours operators. There is a positive huge impact of integration of global and European travelsectors. Today, consumers taste and preference change related to tourist destinations as well asoperators. Some major trade bodies play a vital role in tourism likethe UK Civil AviationAuthority (CAA), The Travel Association (ABTA), Association of Independent Tour Operators(AITO), Federation of Tour Operators (FTO) and UK inbound.TASK 11.1Covered in PosterTASK 22.1The stages and timescales involved in developingholidaysThomas cook is one of leading firm in tourism sector of United Kingdom which offersdifferent holidays package to consumers (Mak, 2011).There are some stages and timescales inprocess of holidays development as following.1.Market Research-This is first step of holiday package process offered by tour operator.Company conducts a detailed market research so that it can forecast current demand ofvisitors at local as well as international level (Dodds and Kuehnel, 2010). There are twoforms of market research in tourism sector as qualitative and quantitative. Throughsurvey and personal interview, operator can gain information about what types of holidayis in demand and make their package as per it. This stage will take four to five days fordetailed market research.1
2.Cost Estimation and set targets-This is second stage of developing holidays in whichdifferent cost of elements used in making holiday for customers. It helps in estimatingwhich package will cost and commission to suppliers. The company tries to identify itspotential customers and plan a customised holiday for them to gain maximum revenue.There are different types of costs which will occur like fixed and variable. Fixed costs donot fluctuate with number of passenger or duration of trip (Witt, Brooke and Buckley,2013). For this stage, two to three days will be taken.3.Pricing of holiday-On third stage, tour operator like Thomas cook set price of holidaypackage which is reasonable and satisfactory for customer. In this competitor price has tobe considered as it can affect sales of holiday in future. Skimming process is also used byoperator. Along with this,currency exchange rate play vital role especially with foreignvisitors. So keeping profit margin and industry situation, pricing of holiday will be set.4.Legal requirements-This is fourth stage in holiday development package to visitors. Inthis different rules and regulation are obeyed by tour operators so that no disturbance infurther process (Baddeley and Font, 2011). Season of tourism also an important factor aspeak time uplifts the price of holiday. On other hand, if there is off season the operatorwill have to decrease its rate for trips offered to customers. This stage takes almost threeto four days to fulfil all legal requirements.5.Final holiday package making- This is fifth stage of this process in which developedholiday is prepared with accommodation, duration of trip and destination to be visited(Tsiotsou and Goldsmith, 2012). In this, business organisation provides all details withfinal price like type of other services which will be delivered to clients.6.Advertisement-When a holiday package is made completely, tour operator starts to usemost suitable methods to promote and advertise its package. There are different types ofadvertisements through which tour operator can use. One of best medium is onlinemarketing as most of people are available on it and maximum customers can beconnected. Others are television, news paper, brochure, posters, hoarding and word ofmouth.2.2 Suitability of methods of contracting for different components of the holidayAs tourism is one most most growing an vast industry, there are many issues which canoccurred in future between tour operator and visitors. To avoid any dispute, there should be clear2
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