Tour Operation Management: Planning, Contracting, and Pricing

This document provides insights into tour operation management, including the effect of current trends on the industry, stages and timescale in developing holidays, methods of contracting, and calculating the selling price of a holiday. It also evaluates the planning decisions for brochure design and suggests alternatives for tour operators. The content is focused on the subject of Tour Operation Management.

TOUR
OPERATTION
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
1.1 Effect of current and recent trend and development on tour operation industry..............1
TASK 2 ...........................................................................................................................................1
2.1 Assess the stages and timescale involved in developing holidays...................................1
2.2 Different methods of contracting for different components of the holiday and tour operator
................................................................................................................................................2
2.3 Calculate the selling price of a holiday from given information......................................4
TASK 3............................................................................................................................................5
3.1 Evaluate the planning decisions taken for the design of a selected brochure..................5
There are some distinctions between traditional and latest brochure. ...................................7
3.2 Alternatives of a traditional brochure for various types of tour operators and recommend a
appropriate of their package of tour.......................................................................................7
3.3 Methods of distribution use to sell holidays for various tour operator and recommand most
appropriate package of tour....................................................................................................8
TASK 4............................................................................................................................................9
4.1 Decisions of strategies made by various types of tour operator.......................................9
4.2 Tactical decisions taken by a selected tour operator in various situation.......................10
CONCLUSION .............................................................................................................................11
REFERENCES .............................................................................................................................13

INTRODUCTION
Tourism industry is a rapidly growing and plays a vital role in economic growth of
country. This segment promotes higher returns and revenue for company and government both.
There are several tour operators who are providing better services to attract customer that bring
motivation in workers to serve them best (Gibson, 2012). Tour operators are specialists in
holiday package creation. Determination of tour operator can be done on basis of inbound,
outbound and domestic in nature. Several trends and developments are seen in tourism industry
which has t understand by TO. Developing a holiday package contains various steps which will
be evaluated in this report further along with calculation of selling prices. This is focused on
company Trail Finders that provided its services in United Kingdom and they provides services
related to vacation packages to their consumers. To manage every sort of influences TO has to
gather all info from appropriate source and they have to formulate tactical decisions (Operations
Management in the Travel Industry. 2018).
TASK 1
1.1 Effect of current and recent trend and development on tour operation industry
Covered in Leaflet.
TASK 2
2.1 Assess the stages and timescale involved in developing holidays
Tour operator must conduct market research for getting knowledge about taste and
preferences of current and future clients. This market research will enable them in becoming
specialised their skills that is necessary for preparation of holiday packages. There are various
phases that a research plan consist. In present context Trail-finders have to create a luxury plan
for their clients and for checking preferences they have to conduct a market research. Company
is developing a luxury budget for educational tour for students who will start their trip from
London to Brussels and Brugge, Belgium. Number of students who are coming for a trip in July
2019 are 42 and they will stay for five nights approx. so for developing apposite trip for those
operator need to run research plan for gaining some required knowledge (Brown, Bessant and
Lamming, 2013). These steps are explained further:
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1. Market Research – It is a very first step of plan and helps in determination of market.
This market research is profitable for both, company as well as their clients. User
conducts this research for obtaining best tour operator company which can serve them
best. On the other hand TO runs this for checking preferences and choices of potential
buyers. This is helpful in generating best quality services.2. Planning & Scheduling – Next phase is to analyse and organise dates plan so that they
can serve to their customers that will help them in organising best time frame which is
able in generating good results for customer and company. Set time frame helps both in
making plan for their trip. This also helps in saving time and in saved time a tourist can
visit more places. This kind of action generates customer satisfaction (Robinson and et.
al., 2016).3. Forecasting – Tour operator need to forecast some unnecessary factor in advance that
could affect holiday package. Forecasting includes prediction of very aspects that is
occurring and about to occur in marketplace related to tourism industry. Like Govt.
regulations and laws, environmental issues, and continuous changing in human nature. A
holiday package must look for future aspects to get benefits.
4. Negotiation: This can be done when a price for package is high but tour operator can
organise a negotiation for bulk customers. For instance a inn is charging hiked rates for
their services so a tour operator can negotiate prices that they are about to deliver their
clients.
Trail-finders have to conduct all the above factors because they are providing services to a
student group and they have to make a suitable time frame that could include holidays as group
is coming for 5 days.
2.2 Different methods of contracting for different components of the holiday and tour operator
Every tourist has a different expectations from their trip and travel agent should
understand this because it a wide factor that can affect creation of tourism package. There are
various operators that are determined who serve effective and sophisticated services to their
clients. In this case of package tourist provide a full contract for their trip to get modified and
quality facilities (Ronen, Pliskin and Pass, 2012).
Students of a college want to visit some places in Europe for that they are giving contract
to Trail-finders who are an inbound tour operator company. They are serving in a country
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boundaries. All places that group want to see are located in EU so company can design a
effective package for those.
Group gave their trip contract on basis of services that company is providing in best way
they can. Trail-finders got this contract because they promised to their customers that they will
gain best services advantage in proficient manner. Their aim is particular that they have to spend
some quality time with each other and they want to enjoy a picnic also. Time span that they are
spending on this trip that is 5 days approximately, travel time is excluded in that. There are some
king of contracts that an operator provides to its clients. These contracts are stated below: Fixed Contracts: These are made in fixed assessment so that changes can not happen on
regular basis. It for a specific group or company selected tour operators is gaining
contract again and again. Several time is obtained when a user provides contract in
repetition behaviour for same company for their every trip (Chon and Yu, 2012). In this
assignment Trail-finders is that association which is a contract of many users as they
provide best quality services to their clients.
 Sale Only Contract – It means those contracts that are start when a tour trip start and
gets ended with trip ending. It consist high prices that is to be charged by customers.
Trail-finders does not to become a sale only contractor as they need to maximise their
benefits for which they provide best quality services to their consumers. Best services
provided by Trail-finders attracts more clients towards them.
There are some methods of contracting in which a tour operators deal to operate his
activities. Elaboration of these methods are as follows:
1. Design-Bid-Build – It is a three phase process that starts with design of a projects and
ends with finally building of project. It is a overall construction phase of a project.
2. Alternate Contracting Methods – This method includes several other tools apart from
above method and that are design-build services, construction management services etc.
 Construction Manager: This section has various option that can converts a
manager into a tour operator at different levels like construction of manager as
agent, manager-at-risk. In this a manager works with distinct duties to deal with
tour operators activities and to attend clients as a travel agent.
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 Design-Build-Services: In this one individual entity works in a single contract
with project owner to serve designs and construction services to company with
they are associated.
 Guaranteed Maximum Price: This can be a part of manager-at-risk and can also
be included in Design-Bid-services. In any case project must be finished below or
at GMP.
2.3 Calculate the selling price of a holiday from given information
Every trip consist a different price that is to be charged from customers. It is an important
task to set up a price for package by operator properly that could gain customer attention because
in determination of package price plays a vital role. Price of package is to be determined by
calculating per head cost along with full cost of plan. Trail-finders need to identify their
package's rate that they are providing to student group. An adequate consent is for this is Grand
Casselbergh in Bruges of 96 euros per head for a twin room (two adults is sharing a single room)
with inclusion of breakfast. Price of 48-seater luxury coach is £11,200 and it includes two
drivers, a tour manager, road and ferry taxes with fuel charges. Fees that a local tour guide
charges is £945. In addition to this manager marked a an add on with 33% exchange rate of
€1.12 per £1. as per above given data following calculation is based that includes basic info like
suitable calculation of selling price need to get fixed for better development of package and
deliver to consumers (Evans, Stonehouse and Campbell, 2012).
Room's cost per head 85.71
Per seat luxury coach's cost 233.33
Appointment of local tour guide charges per individual 472.5
Total cost of tour before margin 791.55
261.19
Add: Profit Margin 4
Selling price of tour after margin for single person 1052.74
It is a selling price on per head basis provided by operator to their consumer. In this
respect company also attach their customers with attractive discounts. This enables them in
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gaining high number of customer. On the other hand clients get high quality services in budgeted
price. Strategies that combined various discounts in them are very helpful in obtaining more
number of attentions that will bring high profitability into company (Jone and Robinson, 2012).
There are some cost related aspect that Trail-finders has t consider before setting price of any
package as follows:
 Fixed and Variable Cost: This heading consists two kind of costs one is fixed and other
one is flexible. Fixed cost is set for one time and it remains same and does not affected
with changes that occurs time to time in travel plans. Like ticket fare at some destination.
Variable cost is that which is affected with variations and keeps changing with them.
 Profit Margin: It is a gain of company that she obtains from clients in exchange of
providing services to them. Organisation has to set up that margin which is to be
collected in easy manner from customers. It hooks up with selling price. A selling price
includes rate of profit. This enable management in attaining their interest which is
associated with service.
All aspects must included by managers in their travel package for vacation. This assists operators
in hitting better results as well as it also supports in enhancement of customer base.
TASK 3
3.1 Evaluate the planning decisions taken for the design of a selected brochure
It is a need of every organisation that that they develop a marketing department in their
association. Very fundamental task of this functional area is to spread news and awareness about
company's products & services and also attracts more consumers (Hoyos, Morales and Akhavan-
Tabatabaei, 2015). There are various tools that member of this department can utilize to provide
info which is associated with travel package and can attain attention of potential buyers of
package. Kouni is one of an efficient travel operator agency that is known for their best quality
services. They want to spread awareness regarding their services to gain customer attention. For
accomplishment of this aim they use a marketing technique named as Brochure. That contains all
relevant information that is related to vacation package. Brochure of an association needs
appropriate planning decisions which have to be considered by marketing manager in
development of a that. It depends on following context:
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 Planning Issue: This issue is concerned with such points like format of brochure, style
and content. An operator need to concern all this context to get an effective brochure.
Main issue that is associated with brochure is that it should provide all info related to
luxury tour package that clients found relevant for their trip (Guo and He, 2012). Higher
returns and interest could be derived in company by providing all related information in
brochure that is helpful for customers. In association with above it also considers other
aspects for e.g. size & quality also plays a vital role in success of brochure. Marketing
managers have to select a proper size for it so that it could contain all information into it.
Essential task for a manager is to determine details that will be add in brochure. Target Market – Recognition of issue is not enough enough for delivery of info.
Identification of target market is also as important. Without identification of target
market brochure could not be successful because this would not be able in generating
correct information. It is a duty of marketing department that they should focus on those
who have a willingness that will be consumers of corporation. Brochure also contains
knowledge about cost of a single package. This assist managers by utilizing many pricing
strategy (Bethapudi, 2013).
 Attractive brief: brochure content should be relevant in nature along with specification in
tenure. Brief could be made attractive by pasting pictures and attaching some video clips
of destination. This will make consumers curious about location and they start dreaming
to explore such places. Thus it is an objective of company that they made dream come
true of their clients and secure their footfall for places.
Above are important component of brochure that must be considered by marketing managers
while making people aware about their plans, facilities and services (Allahyari, Salari and Vigo,
2015).
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There are some distinctions between traditional and latest brochure.
Traditional Latest
In earlier days there were a single option is
present which is print media and to provide
information regarding holiday packages tour
operators use this tool as to give some handout
to their clients.
Nowadays so many alternatives are present to
attract new clients that are internet, electronic
media, social media, visual brochure etc. with
assistance of this a travel agent can gain
attention of public.
3.2 Alternatives of a traditional brochure for various types of tour operators and recommend a
appropriate of their package of tour
Most important approach for promoting services and goods in a are of a market where in
a post times it is consider as a form of printed brochure. It is divided into different sub sections
and sections which help in giving all information and relevant data about offered services and
product of Kuoni in a detail form. Attention is gaining a valuable of people in a large numbers
towards the company and having a high benefits for company (Dhiman, 2012). Digital
techniques and tools play a very important role in implementing more innovative and effective
brochure for customers attraction. These tools help in construct a gap between different alternate
of traditional brochures. Some of important components are discuss below:
 Visual brochures
 E- brochures
 Direct sell
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Illustration 2: Latest Brochure Illustration 1: Traditional Brochure

 Mobile applications
 Social media
 travel agents and retailer
 Websites
 Call centres
These tools help in construct a gap between different alternate of source but here
company has choose the source from all alternatives sources is traditional brochures.
Brochure which are electronic ca consider as an main part of a online business and also
help in a growth of a organisation or online activities also known as online brochure, it is very
effective as comparison to a traditional brochure. In electronic brochure cost is incurred
relatively low than a traditional brochure. E-brochure is very much effective in a large numbers
they attract a customers towards their services and products of a company Kuoni is wide interest
on applying a E-brochure as to retain customers for a long periods of time (Gibson, 2012).
Organisation is significant concern for adopting a techniques and tools for being in a higher
position at a place of a market while having attention at a large numbers of consumers. It
increases in a productivity as well as efficiency of a Kuoni. Attraction of a customers make a
growth of a organisation at a higher level.
Brochure which are online is an electronic gazetteer. It involves many video clips
and photos for a destination of tourist is a method that increases client readiness for purchasing a
packages of holidays. Media of social is a place having a wide scope where a operator of tour
can plant online brochure for gaining customers attention because know a days many persons are
using a social media for connecting with others persons.
Organisation had develop their websites which gives information regarding a packages of
luxury tours and travels. It also contain a knowledge which is associated with facilities and
services. Activities of a less price improvise consumers accessibility. For collecting informations
of a operator organisations and their services through a call centres. Agents are a type of
intermediators and mediators of kouni which works as a middlemen and having a main role of
maintaining a supply and demand in this firm. Having a direct connections with clients is a direct
selling.
Mainly brochure are planned for a luxury tours and travels which is much appropriate.
These brochure of operator of tour having a corporate websites where having all informations
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and news which is associated with a plan of vacations with attachments of clips and pictures of
destination in detail for platform of social media and quality services on websites. Regular
brochure are better in context and having a less price, attract customers, demand generating,
wide range of clients reaching and corporation productivity.
3.3 Methods of distribution use to sell holidays for various tour operator and recommand most
appropriate package of tour
Purpose of every business company is to explore their operations of business at a high
level for that they have to distribute a high quality of services and goods in a wide market area. It
help in bridge a gap between demand and a supply (Grant and et. al ., 2017). In a today's trends
mostly companies are concern in adopt of a innovation and suitable technologies and tools for
customers attraction with a implement of a attractive and affective brochure in which detail about
a organisation is mentioned in a brochure. In a past times brochures which are traditional are
apply by a company for attracting consumers towards their services and product which gives
benefits to a customers. Technologies of digitalization like as social media, electronic brochure,
websites, online marketing etc. are very effective in exploration of the channels of distribution.
Managers of marketing of a Kuoni enhance its efficiency and profitability with satisfaction of
wants and needs of person in a place of market. Their are having a different strategies which are
implemented by a managers of Kuoni for influencing the channel of distribution of a company.
Some of channel distribution is described below: Agents hiring: this process is very effective for selling their services and product at a
place of market. Some of persons are hired who is having a skills of selling products and
attracting customers for a organisation. It is considered as a representation of a company. Direct sales: companies are focused on recruiting a person who is well educated at a
place of work as for customers attraction while giving them a different types of services
and products. In Kuoni goods and services which are produced in direct selling to a final
customers. Telephone: This is very effective methods as they keep on contacting and try to convince
for their services which are given by Kuoni. Call centres: Kuoni use call centres for attracting customers or target audience at a large
number as well as call to people so that they should get aware of holidays package if they
are planning then they can choose a package.
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 Internet: It is an very effective source in recent scenario as they can advertise through
pop up advertising so that people can get aware about holidays packages or showing of
advertising about holidays package on running websites.
TASK 4
4.1 Decisions of strategies made by various types of tour operator
Main factor of tour operators of trail finders in decision making of strategies is for
achieving of goals in a effective while certainty increases of a organisation (Kerzner, 2013). It
increases the productivity of trail finders and management is proper for productivity increases
and cope up with a changes of a future. It help in choose of a best from all alternatives for
making a decisions strategically.
Following are a key for decision making of strategies by a operator of tour in trail finders: Forecasting of demand: First step of decision making of strategies made by a operator of
tour of a company. This approach has done for calculating a forecast demand of a
travelling holiday services of a product. With respect of demand all decisions making is
made for future customers which help in filling up of gaps between supply and demand.
 Market segmentation, product positioning and target: It is a second approach which
have to do by a operator of tour in respect of customer diversification who are featuring
the demand of services and products (Lam and et . al., 2014). Package design are made
according to the needs of a consumers. Various targets are selected for analyse of all
types of factors which include in a packages of tour and positioning of product is done
according to a capacity of customers spending.
Following are a key for decision making of strategies by another operator of tour in trail finders: Strategic discount pricing: In trail finders organisation gives discounts in tour operators
for some periods of time which play a very significant role dragging attraction of a
consumers. It determine a cost of package of travelling on discount basis. Fixed contract
give high discount account (Klassen and Vachon, 2012).
 Building strength of a product: Decisions are taken by a trail finders organisation for
increasing strength of brand by growing a large extent of product corporate according to a
customers taste.
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From a part of all above points there are many others points which are included in the decisions
of strategic type such as effective promotional strategies, pricing strategies and management of
risk etc.
4.2 Tactical decisions taken by a selected tour operator in various situation
Each organisation decisions of tactical are essential for management to take a decisions for
achieving a organisation objectives and goals. In environment of a organisation are having many
problems raised on day to day basis. They solve their daily problems by using their decisions of
tactical. Various types of problems are covered in a method of decisions such as providing
accommodations, gives food, transportation arrangement and many more services. Decisions are
taken for remain connecting with their organisational financial shareholders. Decisions give help
to organisation for cope up with all activities very effectively. Influencing tactical decisions of
factors. Crucial factors are on decisions (Kogg and Mont, 2012). Decisions involve following
points are as follows: Discounting: Trailfinders and Kuoni had analyse both organisations. Trailfinders are
conducting outbound operators of tour which deals with different services and products in
international and UK deals mainly over products sale. Kuoni provides different offers and
discount for increasing their customers also benefit oneself.
 External factors: There are many kinds of components in external environment of an
travel and tourism sector of Trailfinders and Kuoni. Overcoming with these effects of
changes in environment, technologies, political changes and high authority which effect
enterprise.
 Specific promotion and frequently analysis of segment.
 Determination of packages on tactical pricing.
 Maintain of certainty for achieving operations day to day.
Information technology and communication influence decisions of tactical as their should
be a effective communication in each activities. Their is a lack of proper communication and
with that the decisions are not much effective.
Explanation of regulatory of all the rules and regulations are not follow by a Trail finders
which is liable for comparative prosecution. Exchange rates are based on international trade.
Environment issues give impact on a decisions of tactical of operators of tour.
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CONCLUSION
As per above assignment, it can be terminated that travel agencies are important part of
company which take care that tourists get good experience by providing them assistance. They
should determine best packages through which they are able to attract individuals by providing
them adequate facilities. Company uses various tactics through which they are able to sustain
their market position. They even design packages to influence people by offering services at low
cost when family avail their services so that they influence their clients behaviour. By modifying
their offerings, adding new features is able to captivate their visitors interest visiting first time.
As a result, firm is able to enhance its profitability by accomplishing their plans and objectives.
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