Effective Management in Tour Operations

The present research report has significantly analyzed different aspects of effective management in the tour operations company. The report has identified various trends and recent developments that can influence the overall economic effectiveness of companies. Additionally, it has covered various components related to strategic management and decision-making in the tour operator industry.

TOUR OPERATIONS MANAGEMENT

CONTENTS
INTRODUCTION...................................................................................................................................1
TASK – 1.................................................................................................................................................1
1.1 Evaluating the effects of current and recent trends and developments on the tour operators
industry................................................................................................................................................1
TASK – 3.................................................................................................................................................3
3.1 Evaluating planning decisions being undertaken for the selected brochure............................3
3.2 Assessing the suitability of alternatives to a traditional brochure for varied tour operators...4
3.3 Analysing the suitability of different methods of distribution adopted for selling a holiday..5
TASK – 4.................................................................................................................................................5
4.1 Evaluating the strategic decisions made by different types of tour operator...........................5
4.2 Comparing the tactical decisions that can be undertaken by tour operator in different
situations..............................................................................................................................................6
CONCLUSION........................................................................................................................................6
REFERENCES........................................................................................................................................7

INTRODUCTION
Talking in reference with the tour operations industry, it is defined as an integrated
approach in regards with the travel and tourism sector. There are many recent trends and
development within the industry that significantly influence the performance as well as
development of the tour operations industry (Page and Connell, 2010). Considering this fact,
the main aim of the current research writing is to carry out detailed analysis of the tour
operators industry within the travel and tourism sector. As a Tour Coordinator of lcb Tours,
the main focus will be laid on analysing the recent trends, developments, issues and their
impacts on the travel and tourism business. Finally, the later part of the report will help in
understanding strategic as well as tactical decision making for tour operators in different
situations.
TASK – 1
1.1 Evaluating the effects of current and recent trends and developments on the tour operators
industry
Tourism means travelling for pleasure. It includes the business that helps in attracting
and entertaining people who travel all across the world for various purposes. The most vital
component of tourism is the tour operator. These organizations offer specific packages,
travelling, hotels, sightseeing and many more services to travellers. There are different types
of tour operators and these are as follows:
 Inbound tour operators – These are defined as those tour operators that accomplishes
the needs of the foreign tourists into the nation and there main focus is on offering
services to the foreign tourists right from their arrival to their departure (Medlik,
2012). They offer services such as food, sightseeing, travel guides, hotels and
entertainment. GTI travel group is the leading inbound tour operators in UK.
 UK Outbound tour operators – These types of operators develops packages for
tourists of their own nation. They send own people to foreign nations by marketing
and selling packages. They have collaboration with the inbound tour operators of
another nation so that tourism services can be offered to tourists. First Choice is the
leading outbound tour operators of UK.
 Domestic tour operators – They carry out their operations within the boundary of
their own nation and provide packages to people who want to travel within the
country borders. Leisure Breaks is the leading domestic tour operators in UK that
helps the local people to travel in the nation (Huang and et.al, 2015).
1

 Specialist tour operators – They are engage in offering special tour to people and
group as per their choices. They have numerous untouched destinations and modify
the packages as per the preference of the tourists. These tour operators also have in-
depth knowledge of all the amenities available at different destinations (Batabyal and
Alao, 2015).
2
Integration (vertical and horizontal) –
Vertical integration means investing in
the related business at different levels
and horizontal integration means
merging of companies within the same
industry. Tour operators have increased
the variety of products in packages to
facilitate tourists. They are adopting both
integration practices to widen their
product range
Responsible tourism – it involves
removing the negative effects of
tourism and maximizing benefits that
can be earned through tourism. Now,
each and every people is thinking
about the welfare of the community of
the host nation and enhancing their
well-being through economic vitality,
environment conservation and
awareness of culture (Duffy and
Stroebel, 2015).
Advancement in technology –
Tourism industry is developing at
fast pace due to advancement in the
technology. All transactions are
being taking place by making use
of new technology. Because of
digitization within the tourism
industry, quality and reach of the
tour operators has increased.
Recent Trends and Developments

Thomas Cook is one of the leading tour operators in UK being formed in the year
2007. The origin of the group is in Germany and the annual revenue is around 8 million
Euros. The major operating areas of the company are Austria, Germany, UK, France, Ireland,
Hungary, Slovakia, Slovenia, Poland, Egypt, Canada as well as India. They have an
ownership of around 30 tour operators. The major competitors of Thomas Cook are Thomson
Holidays, First Choice, TUI, Airtours and My Travel Plc (Thomas cook, 2010). The market
share of Thomas Cook in comparison with other tour operators in UK is 21 percent.
TASK – 3
3.1 Evaluating planning decisions being undertaken for the selected brochure
Throwing light in relation with brochure, it is being defined as a template which is
being designed by the tour operators so as to attract the target audience for a particular tour
package. In simple words, it is nothing but a way to advertise the tour package being
introduced by the operators. It further supports the operators in communicating information
of the tour to the customers and build image in the market (Baur, Klein and Steinhardt, 2014).
The planning decision in terms of formation of brochure in three different tour operators
includes the following things:
Decisions Thomas Cook Thomson Holidays TUI
Cost
The design of the
brochure in Thomas
Cook is decided by the
ad agencies. The
quality of the paper is
good and now they are
focusing on E-
Brochure. They print
almost 5 million
copies of brochures.
The design is decided by the
marketing department if the
firm and the layout is quite
simple yet attractive. The
paper quality and colour
combination is good that
attracts large number of
people. They print around 3
million copies (Thomson
Holidays, 2018)
The company uses the
brand positioning for
deciding the quality of
paper and Glossy and
smoother paper is
used for the brochure.
They print around 4.7
million copies
Format Two folds Three folds Z format
Target market
and budget
Youth and budget
traveller market
Wealthier and older empty-
nester customers
Family oriented and
younger population
Print
specifications
The colours and
graphics being used by
the company is blue
The choice os colour is
decided by the marketing
department according to the
They chose the colour
of the brochure
according to the
3

shade that attracts the
interests of the
customers
destination chosen for the
tour package.
season and location
being selected for
tour.
Timescales and
stages of
production
Not so attractive
brochure is used as the
business is well-
established.
Attractive brochures are
introduced in a regular
interval of time so as to
attract large group of
customers
Already established
business in the market
and thus, brochure
with complete
information is offered
six months prior the
tour (TUI Holidays,
2018).
3.2 Assessing the suitability of alternatives to a traditional brochure for varied tour operators
As technological advancement is taking place at a rapid pace, the traditional methods
of communication as well as advertising is introducing consistently and replacing the
brochures. Some of them are being explained in the subsequent paragraph:
 Press – It encompasses print media such as newspaper, magazines etc. More
population can have access to this media and thus, it is quite easy to reach large
masses.
 E- Brochures – These are available online and is now considered as the easiest way of
communicating to people. It does not involve extra efforts of distribution. Thomas
Cook makes use of this technique.
 Social media – It is a traditional technique and is not so expensive as well. It is a
promotional tool that has taken place of direct marketing. Thomson holidays and TUI
uses this tool for promoting their holiday packages (Sigala, Christou and Gretzel,
2012).
 Travel fairs – These methods are being adopted for the purpose of targeting potential
customers in large masses.
 Outdoor media – It involves advertising on public billboards, buses, walls and many
more. Through this awareness about the product of the company among the public can
be done. However, it is expensive as compared to other tools.
4

 IPad/Android Applications – Making use of applications is now regarded as the
easiest way to reach the target audience. Companies can update the customers about
any changes in the product with this method (Chand, 2011).
3.3 Analysing the suitability of different methods of distribution adopted for selling a holiday
 Direct Distribution – It involves direct selling of the product without involving any
intermediaries. This method is also flexible in nature.
 Two level Distribution – In this method, there is no direct contact between the
supplier and customers. Mediators are being involved that supports the sales and it is
quite costly as well (Manuj and Sahin, 2011).
 Through social network website – It offers high speed of interaction with the
customers and it is inexpensive as well.
 Government website – Government websites also allows offers platforms to tour
operators to advertise their tour packages on the websites.it is suitable mainly for local
tour operators and native tourists.
 Online travel agencies – They are not physically present and offers list of tour
packages from varied tour operators. This method is generally used for enhancing the
sales and bookings by the tour operators.
 Visitor information centre – This is a platform where tour operators are allowed to
drop their flyers and leaflets along with phone numbers on the counters. Customers
approaches these centres and selects the best suitable tour operator (Lee, Chang and
Chen, 2013).
 Concierge services – These services are being offered by some of the hotels and
motels. In this method, hotel act as an intermediary and attracts the guests living in
their hotel to visit a particular place. The local tour operators drops their flyers at
hotels.
TASK – 4
4.1 Evaluating the strategic decisions made by different types of tour operator
Focusing in relation with strategic decision making, it is nothing but an ongoing
process to attain the final goals of the firm. It is vital to bring changes in the structure and
processes as per the current need so that it offers long term effects to the organization. Some
of the strategic decisions being taken by the tour operators are as follows:
 Pricing strategies – The price of the product reflects the quality as well as quantity of
the product and thus, it should be adopted wisely (Festa and et.al, 2013). There are
5

three pricing policy such as premium pricing (higher prices than rivals), value for
money (medium prices) and cheap value (lower prices). Thomas Cook makes use of
single pricing for the product which means prices remains the same at all the mediums
of distribution.
 Surcharge policy – It means increasing the prices during peak season. For example, at
the time of rise in the oil prices in UK, Thomas Cook has reintroduced their bills by
adding fuel surcharges (Dolgui and Proth, 2010).
 Image positioning or Branding – With brand image and positioning, companies can
create loyal customers and can do repeat business.
 Product choice – Tour packages are product for the tourism industry and thus, wide
range of destination products should be offered to the customers to have best
travelling experience.
 Distribution channel – Both indirect as well as direct channel of distribution are being
used by Thomas Cook, TUI and Thomson holidays for reaching to their target market
(Evans, Stonehouse and Campbell, 2012).
4.2 Comparing the tactical decisions that can be undertaken by tour operator in different
situations
 Tactical responses – Numerous tour operators have to make decisions in response to
the external as well as internal environment. Decisions related to change in the prices
due to change in the economy of a nation is another tactical decision being taken by
the tour operator. For instance, rise in the oil prices and adoption of surcharge pricing
by Thomas Cook is tactical pricing.
 Tactical marketing – It takes into consideration execution of the marketing strategies
by taking decisions in regards with the conditions of the market. Most of the tour
operators such as Thomas Cook and Thomson are making use of internet to target
market. It is essential in the situation of high market competition (Lee, 2015).
 Tactical planning – It encompasses decisions in relation with the ways strategies can
be implemented so as to accomplish the short terms objectives of the firm. For
example, in the situation of price wars, tactical planning is required.
CONCLUSION
Thus, it can be said that the present research report has significantly analysed different
aspects in relation with the effective management in the tour operations company. The report
has identified various trend and recent developments that can influence the overall economic
6

effectiveness of the companies. In addition to this, various components in relation with
strategic management and decision making in the tour operator industry was originated in the
research study significantly.
REFERENCES
Books and journals
Batabyal, A.A. and Alao, O., 2015. On the Sale of Package Tours to Infinitely Many Possible
Types of Tourists. International Journal of Tourism Research, 17(1), pp.1-3.
Baur, A., Klein, R. and Steinhardt, C., 2014. Model-based decision support for optimal
brochure pricing: applying advanced analytics in the tour operating industry. OR
Spectrum, 36(3), pp.557-584.
Chand, M., 2011. Strategic Alliance Practices in Indian Tour operation Industry: an
Exploratory Study. International Journal of Hospitality and Tourism Systems, 4(2), p.30.
Dolgui, A. and Proth, J., 2010. Pricing strategies and models. Annual Reviews in Control,
34(1), pp.101-110.
Duffy, R. and Stroebel, M., 2015. Protecting Holidays Forever: Climate Change and the
Tourism Industry. Journal of Travel Research, 22, p.7.
Evans, N., Stonehouse, G. and Campbell, D., 2012. Strategic Management for Travel and
Tourism. Jordan Hill.
Festa, P., Guerriero, F., Lagana, D. and Musmanno, R., 2013. Solving the shortest path tour
problem. European Journal of Operational Research, 230(3), pp.464-474.
Huang, H., Wu, P., Wu, S. and Wu, C., 2015. Construction of Decision-Making Model to
Select Incentive Tour Travel Agencies. American Journal of Applied Sciences, 12(10),
p.714.
Lee, C., 2015. Tourist satisfaction with factory tour experience. International Journal of
Culture, Tourism and Hospitality Research, 9(3), pp.261-277.
Lee, Y., Chang, C. and Chen, Y., 2013. The influence of novelty, flexibility, and synergy of
package tours on tourist satisfaction: an analysis of structural equation modelling (SEM).
Quality & Quantity, 47(4), pp.1869-1882.
Manuj, I. and Sahin, F., 2011. A model of supply chain and supply chain decision-making
complexity. International Journal of Physical Distribution & Logistics Management,
41(5), pp.511-549.
Medlik, S., 2012. Dictionary of Travel, Tourism and Hospitality. 3rded. Jordan Hill.
Page, S. and Connell, J., 2010. Tourism. Los Angeles: SAGE.
7

Sigala, M., Christou, E. and Gretzel, U., 2012. Social media in travel, tourism and
hospitality. Burlington, VT: Ashgate Pub.
8

Online references
Thomas cook. 2010. Just book it. [Online] Available Through:
<http://www.thomascook.com/?sinav=topnav_home_TC>. [Accessed on 29thOctober
2018].
Thomson Holidays. 2018. [Online] Available Through: <https://www.thompsons.co.za/>.
[Accessed on 29thOctober 2018].
TUI Holidays. 2018. [Online] Available Through: <https://www.tui.co.uk/>. [Accessed on
29thOctober 2018].
9