Tourism Operations Management

This assignment delves into the operations management within the travel and tourism industry. It examines current trends impacting the sector, emphasizing the importance of customer satisfaction and loyalty. The analysis explores how social media influences consumer behavior and the role of blogs in maintaining customer relationships. Additionally, it highlights the significance of strategic planning, product development, and effective marketing strategies for tour operators to thrive in this competitive landscape.

TOUR OPERATORS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Recent trends and development in tour operation industry...................................................1
TASK 2............................................................................................................................................4
2.1 Stages and timescales in developing holidays......................................................................4
2.2 Different methods of contracting various components of holiday........................................5
2.3 Calculation of cost of components of packages and selling price........................................6
TASK 3............................................................................................................................................7
3.1 evaluation of planning while designing brochure ................................................................7
3.2 Suitability of alternative traditional brochures .....................................................................8
3.3 Suitability of various methods of distribution.......................................................................9
TASK 4..........................................................................................................................................10
4.1 Strategic decision made by different tour operators...........................................................10
4.2 Tactical decision taken by tour operators in different situations........................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Travel and tourism industry of UK is the main sector that contributes well in the
economic development of the nation. It is the major industry that generates the highest revenues
and contribute in raising foreign currency in the nation. Present study is based on TUI which is
the main tour operators of the country (Filby, Stockin and Scarpaci, 2015). It organizes domestic,
international tours for the consumers. It offers attractive services to consumers in order to raise
their satisfaction level. Current assignment will discuss trends and development in the industry.
Furthermore, it will explain different methods of contracting the various components of holidays
In addition, study will describe non traditional methods of distribution that are used to sell
holiday packages for different types of tour operators.
TASK 1
1.1 Recent trends and development in tour operation industry
Tour operators are responsible to arrange travel for the consumers. They provide travelling and
accommodation facilities to travellers so that individual can enjoy their trip. It is essential for
the TUI that to look at the current trends and development in the travel industry so that it can
design its products in effective manner and can satisfy consumers as well.
There are many kinds of tour operators such as inbound, outbound, domestic etc.
 Inbound tour operators are the tour operators those who arrange travel for the person
those who are not the resident of the nation and want to travel to other country.
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 Outbound tour operators are another kind of operators those who arrange travel for the
people those who live in the country.
 Domestic operators arrange the travel facility for the people those who live in the
country and like to travel in the same nation.
Current trends and development in tour industry are as following:
Flexible booking options
It is considered as one of the major development and trends in the travel industry. In the
modern era people are able to book their tickets online. This option give them huge facilities
and save their time as well. They are not required to go to the stations in order to book their
tickets. They get option of reservation, cancellation etc.
Airline expansion
It is another recent development, now people have variety of choice regarding airline.
Expansion of airline has supports in reducing cost and increasing facilities in the airline. Now
all income class people can travel in flights and can enjoy their holidays.
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Technological advancement
It is another recent development and trends, now many advance technologies are in
market. Consumers are using internet for searching about any place and compare various travel
packages of tour operators before making their final choice. It helps them in getting quality
products at lower price. People can pay online through their net banking or debit card.
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TASK 2
2.1 Stages and timescales in developing holidays
Travel and tourism industry contribute well in economic development of nation. In order
to develop holiday packages TUI is required to go through from several stages (Robinson and
et.al, 2016). These are discussed as below:
Market analyses
TUI is required to conduct market research so that it can identify consumer needs,
competitors strategies etc. This helps the firm in designing effective holiday package and
satisfying needs of consumers. TUI conducts online market research that assist the entity in
looking at previous data regarding consumer behaviour so it becomes able to make connection
with consumers in effective manner (Walker, 2016).
Scheduling
It is the next phase that assist TUI in developing systematic plan and scheduling entire
tour package. In this phase entity is required collect all necessary details regarding age of the
people those who will be in the travel, their income level, name etc. so that scheduling and
reservation can be done in effective manner (Vogel, 2016).
Contracting
TUI makes connection with other firms those which offer other services to consumers.
These are such as transportation, accommodation, hotel etc. so that entire tour package can be
made as per the requirement of clients and can satisfy them (Lewis-Pryde and Evans, 2016).
Pricing
In this phase entity has to set price for its products and services that can be affordable for
the target audience. Prices will be set on the bases of transportation medium, place, tax etc.
Designing the schedule
Manager of TUI is required to schedule entire tour that includes data, cost, time, number
of people etc.
Implementation
It is the last phase in which entire plan is being executed so tat consumers can enjoy their
holiday packages (Ho and Lee, 2015).
Time line
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Activities 1 2 3 4 5 6 7 8 9 10
Analysis of Market
Scheduling activities
Forecasting
Contracting with other firms
Set Pricing
Design the schedule(brochures)
Final Implementation
2.2 Different methods of contracting various components of holiday
There are various methods that supports consumers in planning tour in reasonable prices
and saving cost as well. This helps the TUI in offering high quality services to consumers as per
their requirements (Maguire, 2018). The main two methods of contracting various components of
holiday are as following: Sales only contract: It is the type of method that is used by TUI in which it designs such
type of holiday packages as per the needs of consumers. These are designed as per the
specific needs of clients ans sell directly to those only. This method is used by cited firm
in peak seasons in order to attract passenger towards the location (Xu and Gursoy, 2015).
This is the suitable method that assist TUI in gaining competitive advantage and
increasing its revenues as well.
 Fixed contract: It is another type of method which is applied by TUI in order to offer
quality services to the consumers. In this techniques TUI fix its services for specific
target group of people. In this method it involves all these services that can meet with the
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needs of mass audience and can maintain status of the firm as well (Mokhlis, 2016). TUI
develops relationship with concern firms such as transportation, accommodation,
restaurants etc. Making relationship with these firms helps the cited firm in providing
high quality services to travellers and accomplishing their desires. This is the significant
method that support the business unit in giving amazing experience to consumers and
enchaining their satisfaction level (Moutinho and Vargas-Sanchez, 2018).
2.3 Calculation of cost of components of packages and selling price
TUI is going to plan a tour for the students. These people will visits London, Paris and
United Kingdom. The entire tour will be designed for the 5 days. Total number of students those
who will take participants in this tour will be 45. Cost of components of packages can be
calculated by adopting following procedure:
there will be two students in one room, that means two people will share one room thus,
total room required for this tour are 45/2= 23
Cost of one room is= 54 Euro
(1Euro=.85 pounds)
Cost of rooms= 54*85=45.9
Cost of 23 rooms= 23*45.9
Cost of 23 rooms for 5 days = 23*45.9*5= 5278.5
B&B for one person= 12 Euros
(12*.85=10.2)
Cost of B&B for total students= 45*5*10.2= 2295
Selling price calculation
Expenses Cost
Luxury coach 5400
Tour guide 900
Hotel cost 5278.5
B&B expenses 2295
Total cost 13873.5
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TUI wants to earn profit of 20% on its expenses which is 2774.7
Thus, selling price would be=
=13873.5+2774.2
=16648.2
This is the cost of entire tour for the 45 students
Selling price per person= 16648.2/45= 370
TASK 3
3.1 evaluation of planning while designing brochure
If company wants to attract more people and want to gain more profit than it is very
important to design an effective and presentable brochures (Kohler, Stribl and Stieger, 2016).
TUI is planning to design a good holiday packages for that it is required to make effective
brochure that can help circulate the features of the tour packages to the mass audience and can
influence their mind as well. In this brochure company is required to involve all necessary things
such as detail of transportation, data, time, hotel, facilities, cost etc. Brochure helps the firm in
promoting the product and services of the entity across the world. In the tourism industry people
make their mind to visit particular place by visiting Boucher of the company. It is required that
marketing team conducts proper research before designing the brochure (Current trends in the
global tourism industry: evidence from the United States, 2010).
 Budget decision: It is the first phase in which TUI is required to decide their budget for
entire brochure planning and designing. This helps the firm in allocating resources in
effective manner and calculating the profit percentage.
 Objective: Once budget has been designed that manager of TUI is required to set
objectives. Targets and goal plays significant role in the planning. With the help of this
individual can become able to make effective planning and scheduling things in effective
manner. TUI is required to decided target audience to whom it is going to target by
designing this brochure. By this way it will be easy for the firm to carrying out the
planning in effective manner (Xu and Gursoy, 2015).
 Target consumers: It is the next phase and very important aspect that assist business unit
in circulating right message to the right person. Selection of right target guidance is very
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important that helps the firm in accomplishing business goal in effective manner. As TUI
is targeting to the families for the luxurious tour package. Thus, it will involve all the
luxurious services in the Boucher that can attract these people tours the brand (Filby,
Stockin and Scarpaci, 2015).
 Strategy, research and planning: It is considered as most important part of planning,
manager of TUI is required to make effective strategies through which it can become able
to meet with its objective. For that manager of the firm has to collect relevant data so that
it can analyse needs of families whenever they plan any luxurious tour (Ho and Lee,
2015). This will help in identifying their buying behaviour and factors that influence their
mind. This will assist in making effective planning and strategies that can assist the TUI
in fulfilling its goal.
 Concept designing and format setting: It is the next phases of planning for the brochure
designing in which cited firm will have to design its concept that is going to be presented
in brochure. There is required to have adequate topography, colours, graphic so that
individual like the place and make their mind to go to particular place (Kohler, Stribl and
Stieger, 2016).
 Implementation: It is phase in which entire content and message with necessary images
are printed and professional programming is being done.
 Distribution: It is the last phase of planning in which manager of TUI needs to distribute
the brochure to the right person through right platform (Filby, Stockin and Scarpaci,
2015).
3.2 Suitability of alternative traditional brochures
The brochure is essential for the tour operators, attractive briochure support the firm in
attracting more people and gaining success (Walker, 2016). This assist in circulating right
information to the mass consumers and making them aware with the luxurious tour and its
facilitiues. There are various non traditional methods of distribution that are used by TUI in
ordert to circulat the message regarding its holiday package to its target audience. These are
described as below:
Email brochure:
It is considered as one of the cost effective method of distribution. TUI can send this
brochure to the consumers through email (Lewis-Pryde and Evans, 2016). By this way cited firm
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will be able to make the people aware with price, destination, cost of the packages and benfit for
them. It is the easy and most effective way of distributing brochure to the mass audience.
E-brochures
It is another non traditional marketing techniques or the distribution method in which
entity can directly connect with consumers by circulating this brochure on internet. Whenever
people search for the holiday packages then they will find this brochure that can influence their
mind. By this way entity will be able to interact with consumers in effective manner (Maguire,
2018).
Video brochures
This is another way of distribution, it is non traditional method. In this method entity can
circulate the information through video presentation to the consumers. Company provides full
detail of travel firm, tour destination, price, facilities, accommodation to the consumers through
video and power point presentation (Ho and Lee, 2015). In each power point slide entity adds
some interesting pictures about the location so that consumers can take interest and make their
mind to buy holiday packages of TUI. It is effective method of distribution that support the cited
firm in gaining attention of travellers and making them positive towards the holiday packages.
3.3 Suitability of various methods of distribution
TUI is the well known tour operators that offers various facilities and services to its
consumers. Its facilities are such as scheduling, ticket booking, accommodation etc. It organizes
domestic and international tour for the consumers as per their requirements (Current trends in
the global tourism industry: evidence from the United States, 2010). There are various methods
of distribution that can be used by the cited firm to sell its tour packages. There are various other
tour operators such as Thomas cook, trail-finders etc. those who can use these methods in their
workplace:
Direct sale:
It is the best way to reach to the consumers, Company can directly sales its products to
the end users without involving any intermediary in the selling process. Marketing manager of
TUI and other tour operators can communicate directly with the consumers through email, social
networking sites etc (Kohler, Stribl and Stieger, 2016). This is the easy and effective way to
communicate with the target audience. Company can coordinate with the target guidance and
can ask for their demands. These are the suitable platform that helps in gaining reviews of the
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people so that entity can modify its tour packages as per the requirements of client. This is the
suitable method that assist in reaching to mass audience and influencing their mind. It is the way
that help the organization in increasing its sales revenues and enhancing profitability as well.
Hiring agents
It is another type of method that can be used by tour operators in travel and tourism
industry in order to distribute its products and services to the consumers (Filby, Stockin and
Scarpaci, 2015). Thomas cook, TUI etc. can connect with agents those who directly deals with
the clients. Agents provide information to consumers on behalf of firm.
Online sale services
It is the most effective method of distribution and selling of tour packages for the tour
operators. Entity can take support of e-brochure technique and can communicate with clients
through internet. On this e-broacher consumer get facility to check each details related with
booking, schedule, transportation etc (Kohler, Stribl and Stieger, 2016). By this way they get
adequate information about destination and entire tour and they make their mind to go there.
Telephones
It is another technique in which marketing team of TUI and other tour operators can
communicate with consumers through telephones and can give them detail about the tour. In this
company uses old consumers' data and give them information regarding the same (Moutinho and
Vargas-Sanchez, 2018).
TASK 4
4.1 Strategic decision made by different tour operators
Strategic decision are related with the strategies of the firm that helps the entity in
accomplishing its objective and gaining success in the market. Top management makes decision
in order to raise performance of the business. If they make any wrong decision then it may
impact on overall business performance badly (Xu and Gursoy, 2015). Strategic decision taken
by TUI are as following:
Pricing strategy
Price is the major factor that can influence the mind of clients to great extent. Thus, it is
very important for the manger that to make effective pricing decision so that it can gain success
in the market and can accomplish its goal as well. It is essential to look at the cost and then take
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pricing decision so that revenues can be generated in organization (Ho and Lee, 2015). TUI is
required to adopt discount pricing strategy. This will help the cited firm in proving attractive
discount to consumers so that they take interest in tour packages and make their mind to buy this
product and services.
Seasonal strategy
Many travellers like to go on particular place in specific season because of attractive
weather condition. Season impacts on the consumers choice to great extent. They have to design
their tour packages as per the requirement of season so that people take interest and make mind
to buy its packages (Robinson and et.al, 2016).
Promotion strategy
TUI is required to promote its products and services in effective manner so that mass
people can get to know about the firm and benefits for them. Correct advertisements and chosen
correct platform to promote the products help the cited firm in attracting mass audience and
gaining competitive advantage (Filby, Stockin and Scarpaci, 2015).
4.2 Tactical decision taken by tour operators in different situations
Tactical decision are related with profit, improvement and growth of business unit.
Tactical decision are highly depended upon the strategic decision of management. Most of the
consumers do negotiation in order to get quality services at reasonable prices. In such condition
TUI is required to make effective pricing strategy and policy (Moutinho and Vargas-Sanchez,
2018). In order to make pricing strategy it is required that managers of TUI look at actual
demand and cost of overall package of tour. Accordingly, they have to set their product prices.
TUI offers additional facilities to its consumers such as parking, airport, hotel,
accommodation etc. In such condition cited firm is required to make strong relationship with its
stakeholders so that it can offer these services to clients on time. All these facilities and tactical
decision will help the entity in gaining success and increasing its profitability (Kohler, Stribl and
Stieger, 2016).
CONCLUSION
From the above study it can be concluded that technological advancement, changing
demand of consumers force the tour operators to make changes in their strategies so that they can
sustain in the market for longer duration and can provide quality services to consumers. Tour
operators need to design attractive brochure that can gain attention of the consumers and can
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influence their mind as well. Proper research and effective planing assist business unit in proving
quality products and services to consumers and enhancing their satisfaction level.
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REFERENCES
Books and Journals
Filby, N. E., Stockin, K. A. and Scarpaci, C., 2015. Social science as a vehicle to improve
dolphin-swim tour operation compliance?. Marine Policy. 51. pp.40-47.
Ho, C. I. and Lee, P. C., 2015. Are blogs still effective to maintain customer relationships? An
empirical study on the travel industry. Journal of Hospitality and Tourism Technology.
6(1). pp.5-25.
Kohler, T., Stribl, A. and Stieger, D., 2016. Innovation for volunteer travel: Using crowdsourcing
to create change. In Open tourism (pp. 435-445). Springer, Berlin, Heidelberg.
Lewis-Pryde, J. and Evans, R. D., 2016, August. A Social Networking Strategy for Improving
Knowledge Management and Communication in the Travel Industry. In Proceedings of the
The 3rd Multidisciplinary International Social Networks Conference on SocialInformatics
2016, Data Science 2016 (p. 24). ACM.
Maguire, K., 2018. Operations Management in the Travel Industry. Tourism Analysis. 23(1).
pp.173-175.
Mokhlis, S., 2016. Passenger satisfaction and loyalty: a case of inter-city coach travel in
malaysia. Benefit: Jurnal Manajemen dan Bisnis. 11(2). pp.1-20.
Moutinho, L. and Vargas-Sanchez, A., 2018. Strategic Management in Tourism, CABI Tourism
Texts. Cabi.
Robinson, P. and et.al., 2016. Operations management in the travel industry. CABI.
Vogel, H. L., 2016. Travel industry economics: A guide for financial analysis. Springer.
Walker, J. R., 2016. Introduction to hospitality. Pearson Higher Ed.
Xu, X. and Gursoy, D., 2015. A conceptual framework of sustainable hospitality supply chain
management. Journal of Hospitality Marketing & Management. 24(3). pp.229-259.
Online
Current trends in the global tourism industry: evidence from the United States. 2010. [Online].
Available through <http://www.scielo.br/scielo.php?script=sci_arttext&pid=S0034-
76122010000500006>
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