Tour Operator Management: Strategies, Decisions, and Brochure Design

This report delves into the intricacies of the tour operator industry, exploring key aspects such as strategic and tactical decision-making, brochure design, and effective holiday selling methods. It examines the various stages involved in developing holiday packages, analyzes different types of tour operators and their unique approaches, and provides insights into the suitability of alternative brochure formats and distribution strategies. The report also includes a practical example of calculating the selling price of a holiday package, demonstrating the financial considerations involved in tour operator management.

TOUR OPERATOR
MANAGEMENT

INTRODUCTION
The tourism industry contributes a lot to the GDP of the various nations and this industry is also
responsible for generating the revenue in the United Kingdom. The different types of the
packages are being provided to the consumers. This report helps in giving the overview of the
tour operator industry enlisting the different types of the phases considered in the creation of
the holidays as well as in the brochures. Along with this, the various, as well as the tactical
decisions, are made by these tour operators so that they can be compared in the various
situations when encountered.
1

2

TASK 1
1.1 EFFECT OF RECENT AND CURRENT TRENDS AND DEVELOPMENT ON TOUR
OPERATOR INDUSTRY
A tour operator is a person or the company
responsible for creating the holidays as well
as the vacations for the travellers with the
help of providing the reservations as well as
the facilities of the accommodation
provided to the customers by the tour
operators (Mariani, et al. 2014). The tour
operator is responsible for combining the
travelling as well as the various components
needed in it so that customer can enjoy and
have a memorable experience. This also
includes the airport facilities, the hotel
facilities, as well as the other services
provided by the tour operators (Kapiki,
2012). There are various categories of the
tour operators namely inbound, outbound,
Domestic, Ground, and the direct Sell
Operator.
Figure 1 Tour Operators
Source: Admin, 2010.
The direct sell operators are those
operators providing numerous offers to the
consumers by selling the package of the
holiday to the public. These are also called
the mediators as firstly they purchase the
holiday package from the organization itself
and then they sold off the holiday package
are done to the consumers. These
operators help in providing the low cost for
the packages (Frey and George, 2010). This
has been made available in the market. The
inbound tour operators are those operators
which provide tourism to the foreign
clients. The whole facilities are provided
from source to destination. The facilities of
accommodation, guides related to the
3

travel, food associated with the travelling,
the forms of entertainment are being
provided (Elkington, 2013). The
collaboration is also done with the tour
operators internationally so that the holiday
package can be built as well as sold. The
brand image of the country is created with
the help of making the available resources
to maximize and attain the profit. The
example of an inbound tour operator in the
UK is GTI Travel Group. The outbound tour
operators are those operators which
provide holiday package of the native
country. The travelling included in this
operator is combined with the facilities
provided by the inbound tour operators so
that high foreign exchange can be earned.
The example of popular outbound tour
operator of UK is First Choice as well as the
My Travel. The Domestic Tour operators
help in operating within the area
domestically so that the travellers can see
the inside of the domestic country
(Maloletko, et al. 2014). The domestic
tourism is not popular since the travellers
would like to visit the international tours
which in turn generate the high returns as
well as the margins. The integrity is
maintained at the domestic level. The
example of domestic tour operator of UK is
Leisure Breaks. The specialist tour operators
are those operators who choose certain
type in designing the package. The
numerous varieties were included in such
packages (Duman and Tosun, 2010).
Another name of the specialist tour
operators is the tailor-made operators as
the preference is given by the tourists. Their
preference consists of the food as well as
the transport facilities, and the location
preferred by them. These operators possess
the high knowledge of the information of
the various destinations of the tourists
(Wearing, et al. 2010). The package is
designed according to the budget given by
the tourists.
The tour operators in the United Kingdom
give their attention generally to the tours
organized internationally so that high
profits, as well as the margins, can be
attained. The country popularity is also
spreading thereby providing the foreign
exchange associated with it. The TUI AG is
the tour operator Of the UK that helps in
providing the international tours thereby
generating the revenue of 23.8 billion Euros
and is currently operating in the 15
countries of Europe. The 81 tour operators
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are included in it (Mitchell, 2010). The
Thomas Cook AG is the popular tour
operator of UK which operates in the areas
of Germany, Hungary, Egypt, Ireland,
Austria, Poland, etc. the 30 tour operators
are included in this group. The revenue
generated by the Thomas Cook is about 8
billion euros and is originally operated in
Germany. The First Choice tour operators of
UK consists of about 28 tour operators and
the area of operation includes France,
Belgium, Switzerland, Canada, Italy, etc. the
39 tour operators are included in the My
Travel PLC thereby generating the revenue
of 8.2 billion Euros.
Vertical Integration helps in collaborating
with the various associates in the business
performed at the various levels (Burns, et
al. 2014). When the investment is done by
the tour operators in the companies of
transport as well as the hotels then this is
termed to as the backward vertical
integration and if the investment is done by
the tour operators in the various agencies
of the travelling then it is termed to as the
forward vertical integration. The focus of
the TUI Group is generally on the Vertical
Integration.
Figure 2 Vertical Integration
Source: Admin, 2013.
Horizontal Integration helps in doing the
merging process of the various agencies of
travelling so that the competition can be
reduced to some extent. In the year of
1995, the Thomas cook tour operator has
joined hands with the Sunworld so that the
standards of the company can be increased
(Joskow, 2012). This helps in generating the
higher market share thereby gaining the
competitive advantage.
5

Figure 3 Horizontal Integration
Source: Holden, 2010.
The roles possessed by the various bodies
associated with the trade are described
below:
ABTA helps in giving the expertise as well as
the advice needed by the tour operators in
designing the holidays in an effective way.
The issues encountered in this process of
designing are also solved so that the
businesses operations do not create the
impact. It is considered as one of the largest
association of the travel of the United
Kingdom.
UK CAA which is abbreviated as UK Civil
Aviation Authority helps in defining as well
as framing the policies which help in
regulating the industry of the aviation. It is
regarded as the public organization of the
United Kingdom.
FTO which is abbreviated as the Federation
of the tour operators with respect to the
organization so that the activities of the
tourism can be coordinated in the various
countries across the world. The merging of
the FTO with the ABTA is done in the year of
2008.
AITO which is abbreviated as the
association of the independent tour
operators helps in operating the 122 tour
operators in Britain. The assistance is being
provided by them to the independent as
well as those tour operators who design
special packages according to the budget of
the consumers.
The various trends in the holidays are
described below:
Customisation helps in bringing the
modifications needed in the various
packages of the tours as per the preference
is given by the tourists. The standard
packages were provided in the earlier time
with the help of government interference
as well as the service providers of the
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tourism (Frey and George, 2010). With the
introduction of the specialised tour
packages, it becomes quite easier for the
customer to use and prefer according to
their budget.
Responsible tourism helps in eradicating the
negative impact created by the tourism so
that the benefits can be easily provided
with respect to the tourism. In addition to
this, the well- being is also improved
(Spenceley, 2012). The conservation of the
environment, the concept of sustainability,
as well as the awareness about the cultures,
is being given.
Figure 4 Responsible Tourism
Source: Administrator, 2014
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TASK 2
INTRODUCTION
This report gives a brief about the description of the stages which are essential for developing
the holidays. The various components of the holidays along with the tour operators are defined
so that various methods can be built for contracting.
BODY
2.1 STAGES AND TIMESCALE INVOLVED IN DEVELOPING HOLIDAYS
The holidays can be developed with the help of the various stages along with an estimation of
the factor referred to as the timescale. The timescale is applied to the development stages of
the holiday packages. The holiday packages are developed so that the support of the customer
can be increased and also the behaviour of the customer can be estimated by understanding
their perception in order to achieve the customer satisfaction. These stages are explained
below:
Scheduling and Planning
This stage comprises of the requirements analysis so that the holiday packages can be
developed (Humphreys, ND). The planning is done first and then scheduling is done in order to
save the excess time consumed in the process.
Market Research
The market research helps in understanding the older and the newer trends occurring in the
market. The people security, as well as the protection, is considered as the prime importance
along with providing the additional services of the accommodation and the sightseeing places
(Surana and Anadon, 2015).
Cost Estimation
The estimation of the cost is done on the basis of the services as well as the facilities provided
to the consumers. These services focus on the quality and comprising the cost-effective services
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(Westcott, et al. 2010). The holiday package is developed by keeping the view of the cost which
can be affordable for the people.
Negotiation
The tour operators apply negotiation process so that the cost associated with the high tour
packages can be reduced or lowered. This is carried out with the help of analysis done in the
market as the large market is possessed by the tour operators industry.
Analysis and Evaluation
With the help of analysis as well as the evaluation, the weaker areas can be analysed so that
they can be improved further (Burgess and Ivanič, 2010). The evaluation is done with the help
of taking the reviews as well as the feedback from the tourists as well as from the people.
Workforce Handling
The workforce of the organization must be such that the employees must possess the qualities
as well as the potentials so that they can deal with the customers easily thereby providing them
with the everlasting experiences. They should also have the knowledge about the market as
well as the needs of the customer.
TIMESCALE FIRST
MONTH
SECOND
MONTH
THIRD
MONTH
FOURTH
MONTH
FIFTH
MONTH
SIXTH
MONTH
Scheduling
and
Planning
Market
Research
Cost
Estimation
Negotiation
Analysis
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and
Evaluation
Workforce
Handling
2.2 SUITABILITY OF DIFFERENT METHODS OF CONTRACTING FOR DIFFERENT
COMPONENTS OF HOLIDAY AND DIFFERENT TYPES OF TOUR OPERATORS
The contract process consists of the two participants involved in the process on the legal basis.
The legal services and the legal products are given to the tourists on the basis of this agreement
(Ashworth and Goodall, 2012). This agreement further includes the various sites of destination
within the country along with the facilities as well as the privileges offered by the tour
operators so that the tourist’s tour can be made easier.
The different contracts on which the tour operators rely are described below:
Ad-Hoc Contract
The developments of the holiday are initiated by using the ad-hoc networks by making use of
the available resources. These contracts are based on the stay duration of the tourists as the
different tourists possess or want the different duration of their staying with respect to
someplace. Such packages come at the different prices according to the services offered by the
packages (Horner and Swarbrooke, 2016). Also, the tourists choose the holiday packages
according to their budget. The company of Trailfinders gives the assistance to the tourists with
the help of emails.
Fixed Contract
The fixed contract is of the fixed period and our operators give this contract in order to increase
the productivity. These contracts are designed after analysing the demands raised by the
tourists so that their holiday package can be designed accordingly. In addition to this, the
booking facilities are provided thereby determining the overall cost of the holiday package.
10

Sales Contract
This contract is based on the providing the high rates of the holiday packages so that maximum
profit can be attained. The high class and the luxurious facilities are provided by such contracts.
It also involves the prime focus concerning about the security as well as protection of the
tourists (Pearce, 2013).
The versatile contract is being decided by the tour operators for their tourists as per the needs
of the tourists. The various varieties of the packages are designed so that the tourists can select
of them.
DIFFERENT TYPES OF TOUR OPERATORS
Ground Operator
The ground operator is the handling agencies which undertake the particular region as well as
the area so that supervision can be done. This supervision is done with respect to the accounts
which need to be handled in order to successfully implement the services (Dodds and Kuehnel,
2010). The facilities of accommodation, as well as the travelling, are being provided by the tour
operators.
Domestic Tour Operators
The services offered by the tour operators are native to the country that is at the domestic
level. This helps in giving the diversification which is needed by the services for the domestic
people. Agents are associated with the tour operators which help in giving the promotion to the
services. Further, it helps in building the national integration.
Inbound Operators
The international tourists are being handled with the help of the inbound operators. The
insurance services, the entertainment services, as well as the sightseeing of the popular
destination sites are being provided to them. The country image is restored with the help of this
thereby increasing the country economy (Prideaux and Coghlan, 2010).
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Outbound operators
The outbound operators travel to the destination country. The various arrangements were
made by the tour operators for such type of people including the travel documents, facilities of
transportation, and accommodation. The international tours are being organized with the help
of this (Erskine and Meyer, 2012).
2.3 CALCULATION OF SELLING PRICE OF A HOLIDAY
The tour of education for the 18 age group of the adults comprising the students has been
organized. The sources of the education tour in London. The destination of the tour is to reach
to the Brussels and Brugge in Belgium. This tour is for the summer vacation which is going to be
held in the year 2019 in the month of August (Mc Hugh, et al. 2010). The tour is attended by the
group of the students. The size of the group is fixed including the 42 students taken in a single
group. The tour is organized for the five nights.
All the tour dates have been decided by the Grand Casselbergh in the city of Bruges. Each
person rate is the 92 euros with the facility of twin room as well as the breakfast. The 45 seat
luxury seat coach is included in the tour which costs about £7,350. This coach comprises of the
two drivers, fuel, the manager of the tour, ferry taxes as well as the road taxes. In order to
allow them to see the attractions of the places, the cost is decided which accounts for €52 of
one person (Levy, et al. 2010). A tour guide is also provided with a cost of €1020 throughout the
tour. The 25% mark-up is given by the company in order to cover the cost of administration,
profit, as well as the selling cost. The exchange rate is fixed at which about €1.12 per £1 is.
1 euro = 1/1.12 = 0.8928 pounds
Amenities Calculation Estimated Cost
Rooms along with breakfast 42*92 *5 € 19,320.00
Overall cost € 19,320.00
Cost in pounds 19,320.00*0.8928 € 17,248.89
Cost of Guide € 1020.00
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Cost of Bus € 7350.00
Total holiday package cost = € 25,618.89
Package cost with 25% mark -up = € 6404.7225
Holiday package net cost = € 32,023.6125
Per person cost of holiday package = € 762.4669
CONCLUSION
This report helps in defining the timescale as well as the stages required so that holidays can be
developed. The classification of the tour operators is done which will help in establishing the
methods needed for the contracting of the tour operators.
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TASK 3
INTRODUCTION
This report helps in designing a brochure so that decisions can be made with respect to the
planning. Also, the alternatives of the traditional brochure are made available so that the
various tour operators can use it. Lastly, the methods were described which will be effective in
selling the holiday.
BODY
3.1 PLANNING DECISIONS TAKEN FOR DESIGN OF SELECTED BROCHURE
Trailfinders is the tour operator company which specialises in building the various packages
associated with the customer by analysing their needs. After building the packages, the
marketing of the packages is done so that these packages can be made available to the
consumers. The likes, as well as the dislikes, are also associated with the marketing of the
packages. The popularity of the company is restored with the help of marketing. The marketing
can be done effectively with the help of brochures (Wates, 2014). The brochure describes all
those services as well as the information needed by the consumers in an attractive and
beautiful way. The idea of using the brochure in doing the marketing of the holiday packages
helps in saving the time as well as it is cost effective (Cascetta and Pagliara, 2013). The
traditional method was based on selling the packages of the holidays on the paper which
consumes the larger time.
Figure 5 Thomas Cook Brochure
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Source: Thomas, 2010.
BROCHURE AIM
The building of the brochure helps in giving the required information to the consumers about
the holiday package with the help of attractive design as well as the layout by analysing the
needs of the people. The people should find the brochure attractive.
TARGET MARKET
The target market must be identified so that high profits can be attained by the company. The
market analysis helps in finding out the correct target market (Sharifi and Murayama, 2013).
The target market is decided upon the several factors by considering the various categories of
the people and generally done on the basis of segmentation.
Figure 6 Thomson Brochure
Source: Thomson, 2012.
The format of the Brochure
The brochure format must be designed in such a way that people feel attracted towards it. The
first page must depict the attractive pictures with the beautiful layout so that people find
interested in knowing about it in the deeper way. It must possess appeal to the people.
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Quality, Theme, and Style of the Paper
The good quality paper should be used so that the brochure can be designed perfectly and also
the quality of the paper must last for years. The brochure theme must focus on the packages as
well as the services associated with it so that the reader gets attracted towards it. The beautiful
colours, as well as the styles, should describe the various tour packages (Pandey, 2010). The
popular destination sites should be there in the brochure.
Figure 7 Brochure
Source: Montagna, 2017.
3.2 SUITABILITY OF ALTERNATIVES TO TRADITIONAL BROCHURE FOR
DIFFERENT TYPES OF TOUR OPERATORS
The traditional method was focused on giving the details of the holiday packages by describing
the popular as well as the famous destination sites. With the introduction of the modern as well
as the latest technology which comprises of using the internet and the smartphones, the
improvement in the services can be seen easily. The latest technology is serving the features
which the traditional brochure doesn’t include (Papathanassis and Knolle, 2011). The
alternative sources of the traditional brochures include the social media, newspaper
advertising, electronic brochures, as well as the call centres.
16

The electronic brochures help in organizing the copies in the digital forms on the various
platforms in order to provide the information which can be easily gathered to the large group of
the people. This is done through the process of sharing. The people can be easily targeted with
the help of sharing (Ashworth and Goodall, 2012). The online marketing plays a significant role
in doing the marketing as the people are available on the various platforms available online.
These platforms include facebook, twitter, and Instagram which are utilized by the majority of
the people.
3.3 SUITABILITY OF DIFFERENT METHODS OF DISTRIBUTION USED TO SELL A
HOLIDAY FOR DIFFERENT TYPES OF TOUR OPERATOR
The various methods of distribution used to sell holiday are described below:
Travel agencies
The travel agencies establish as well as design the packages so that they can do the promotion
of these packages. These travel agencies help in providing the support locally along with the
establishment of the relationship which proves beneficial in selling those holiday packages. The
society cultures are being reflected locally with the help of the travel agencies (Veal, 2017). The
local needs and the demands help in building the successful and attractive our packages.
Blogs
Blogs are referred to those websites which are either run by the individual or the group of
people for the purpose of providing the information regarding the holiday packages. This
process is called blogging and is done with the help of the bloggers. These bloggers are those
persons who have experienced in designing the packages in an attractive way.
Social Networking Sites
The social networking sites are available online and are being utilized by the various people
from all over the world. People use such sites for connecting to the people socially. The
promotion, as well as the marketing on the social networking sites, helps in gathering the
17

people’s interest (Giaoutzi, 2017). Another technique called the Google ad words helps in doing
the various searches along with the estimation of the searches through the people in the UK by
providing the name of the company.
Figure 8 Social Networking Sites
Source: Publisher, 2016.
Direct Mail
The direct mail also helps in doing the marketing of the holiday packages and is termed as the
old method. The people are being targeted with the help of analyzing the market so that they
can sell various types of tour packages (Bowie, et al. 2016). The description about the packages
is given to them in the form of emails with the vivid description of the popular destination sites
of the popular countries. Attractive pictures are also attached with the mail.
The most appropriate method of the holiday package selling is regarded as the blogging. This is
because the blogging estimates the most visited hotels as well as the sites by the tourists and
18

also helps in analysing the reviews. In such sites, the experts are also available for the purpose
of giving the opinion.
CONCLUSION
This report helps in understanding the various decisions can be made so that the brochure can
be designed accordingly with the help of planning. Along with this, the distribution methods are
described so that holidays can be sold among the tour operators. The traditional brochure is
also described.
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TASK 4
INTRODUCTION
This report helps in determining the various decisions that the tour operators can take in order
to build the strategy so that these decisions serve as a support in tackling the critical situations
when encountered. These decisions are very effective in the industry. Overall, this report
focuses on the strategic decisions.
BODY
4.1 STRATEGIC DECISIONS BY DIFFERENT TYPES OF TOUR OPERATORS
The strategic decisions taken by the various types of tour operators are described below:
Promotion Strategy
The promotion of the holiday packages is done by the various tour operators so that the
awareness about the packages and its information related to it can be distributed among the
masses. These promotions are done across the world. The social networking sites also play a
significant role in doing the promotions of the packages (Nagle and Müller, 2017). In addition to
this, the attractive brochures are designed by providing beautiful pictures of the destination
with the view of developing the interests about the packages for the people.
Distribution Strategy
The distributing strategy helps in building that strategy which can be circulated among the
various and numerous people along with the accommodation facilities provided with the
packages (Jogulu and Pansiri, 2011). They also mention the duration of the holiday package
with the additional services of the packages. The information about the packages is also
described.
Positioning and Segmented Targeting
20

These strategic decisions help in sorting out the people according to the age, gender, as well as
the culture through the process called segmentation. This is done to ensure the determination
of the needs possessed by the different categories of the people (Chand and Katou, 2012).
Targeting involves all those people who are newly married and are looking for a holiday
package with a decent price.
Pricing Strategy
The pricing strategy describes the price associated with the packages which must be strong
enough to gain the attention of the people. Building the package with the decent price along
with the additional features of discounts as well as the offers brings the competitive advantage
for the tour operators.
4.2 COMPARISON OF TACTICAL DECISIONS TAKEN BY TOUR OPERATOR IN
DIFFERENT SITUATIONS
The strategic decisions are complex in nature as compared to the tactical decisions. These
decisions are classified by the level of the medium. The middle management is responsible for
taking such decisions (Jacobsen and Munar, 2012). The tactical decisions are further affected by
the external factors. Each organization is set up in order to increase its profits by maximizing
the sales. So, the decisions play a key role here. The loyalty of the customers is also gained with
the help of this.
Utilization of Coach and Aircraft Seats
The service provider can give the facilities of aircraft as well as the coach which is not only
attractive but also unique and the people are attracting towards it. This will help in generating
the revenue or the organization in providing the quality services. The tactical decisions help in
adding the packages.
Maximizing Occupancy of Contracted Beds
The occupancy of the contracted bed must be done along with the hotels which are contracted
for attaining the maximum profits as well as the clients. The growth of the organization is
21

successfully done by this (Bronner and De Hoog, 2010). In addition to this, the business will also
receive the advantage to survive in the competitive world.
These decisions are further taken so that problem can be solved. The market share of the
organization is enhanced. The negotiation in the market is done to the various categories of the
vendors so that the cost associated with the package of the designing the holidays can be
reduced. The strategy of the competitor will give an idea of the trending things as well as the
packages on the market.
CONCLUSION
From the above report, it is concluded that the strategic decision plays a significant role in
influencing the tour operator industry. These decisions are used so that the critical situations
can be handled when encountered in the industry. Lastly, these decisions are compared on the
basis of various tour operators.
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CONCLUSION
This report helps in giving the brief about the tour operator industry. The various issues of the
management are described as well as explained with the help of tactical as well as the strategic
decisions so that the skills of making the decisions can be made. The various methods are
depicted in order to do the promotion of the holidays. The holiday selling price is also created
according to the mentioned scenario. This report describes how the operators aim to give a
luxury and the everlasting experience to their customers with the help of designing attractive
tour packages.
23

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