Tourism Operations Management Report

This report delves into the intricacies of tourism operations management, covering trends, holiday creation stages, brochure review, distribution methods, strategic, and tactical decision-making for tour operators.

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George Muwongue
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TourismOperations
Michael Munteanu
HND level 4
Id 16002752

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Contents
INTRODUCTION......................................................................................................................3
LO1 Understand the tour operators industry within the travel and tourism sector....................4
1.1 Analyse the effects of current and recent trends and developments on the tour operators
industry...................................................................................................................................4
LO2 Understand stages involved in creating holidays...............................................................6
2.1 Assess the stages and timescales involved in developing holidays..................................6
2.2 Evaluate the suitability of different methods of contracting for different components of
the holiday and different types of tour operator.....................................................................7
2.3 Calculate the selling price of a holiday from given information below...........................8
LO3 Be able to review brochures and methods of distribution used to sell holidays..............10
3.1 evaluate the planning decisions taken for the design of a selected brochure.................10
3.2 Assess the suitability of alternatives to a traditional brochure for different types of tour
operators and recommend the most appropriate for your tour package...............................11
3.3 Evaluate the suitability of different methods of distribution used to sell a holiday for
different types of tour operator.............................................................................................11
LO4 Understand strategic and tactical decision making for tour operators.............................13
4.1 evaluate the strategic decisions made by different types of tour operator.....................13
4.2 compare the tactical decisions that could be taken by a selected tour operator in
different situations................................................................................................................14
CONCLUSION........................................................................................................................15
REFERENCES.........................................................................................................................16
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Introduction
This report provides a coherent detail regarding tourism operation management various
understanding that can help tour operator industry in building effective plans and packages. It
also provides details regarding stages that to be included in creating holidays and various
forms of brochures that are essential and effective in implementing methods of distribution
that can be used by travel and tour operators. The strategies and tactics are to be considered
while planning for development of business. The strategies and tactical decision making are
effective in terms of the development of business.
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TASK 1
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LO1 Understand the tour operators industry
within the travel and tourism sector
1.1 Analyse the effects of current and recent
trends and developments in the tour
operators industry.
Introduction
This task provides coherent information
regarding the roles and functions of the
operators that are operating in travel and
tourism industry. This will also deal with
directives regarding travel and regulations
prevailing in UK. Various forms of services and
tour operator management will also be
discussed. Analysis of the recent transformation
in trends regarding operation of various tour
operators is also provided herein.
Tour operators:
Tour operators refer to a person or a business
entity providing various forms of services in
respect of travel and tourism by providing
reservation facilities at the destination which
includes all necessary services as essential for
enhancing comfortable travelling experience.
Tour operator’s leading role:
For providing effective and efficient
experiences to the travellers it is necessary that
tour operators act with all good conscience. It is
done by preparing an itinerary providing all
necessary information regarding travel and
accommodation facilities. The information
regarding their accommodation as well as
transfer and commute facilities are to be
provided by tour operators. Tour operators
provide various packages to travellers or
tourists. There has been significant increase in
travel and tourism booking through tour
operators due advent of internet (Ivanov and
Zhechev, 2012).
Associations related to tour operators:
AITO (The Association of Independent Tour
Operators), ETOA (European Tourism
Association), ABTA (Association of British
Travel Agents), ECTAA (European Travel
Agents and Tour Operators Associations) are
responsible for controlling and regulating the
conduct of tour operators in UK (ECTAA, 2017).
Different forms of tour operators:
 Inbound tour operators:
These tour operators are bound to make
arrangements for foreign tourists who are
willing to visit their country. They are the
host operators in their native country.
Services that are provided by these
operators include services at time of
arrival and departure that is regarding
accommodation transportation and
transfer of such tourists. These operators
are likely to play significant role in
foreign exchange development.
 Outbound tour operators:
These operators basically deal with
services providing multinational holidays
to tourist. They contribute to the
promotion and creation of these holiday
services. They provide offers for tourist of
one country to travel in any other country

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 Domestic tour operators:
These operators provide services and
packages to tourist who is intending to
travel and explore their native country.
They aim at providing services that allow
tourist in exploring culture and heritage
and natural beauty of that particular native
country.
 Ground operators:
These are highly related to services that
are to arrangements that are to be
provided to tourists at particular
destination. Basically, such operators are
related to making arrangement, managing
and planning tour and travel components
such as tickets, accommodation,
transportation, insurance, providing
adequate currency and other facilities as
and when required by tourists (Espino-
Rodríguez and Gil-Padilla, 2015).
Impact of recent as well as current
development on tour operators industry
Changing trends of holidays has potential
impact on the development of tour and tourism
industry it has led way to include various
reformative ideas that have changed mindset of
tourists.
All inclusive holiday package trends is another
factor that has impact on inclusions in travel and
tourism packages that includes all types of
services as desired by tourist.
Increasing awareness regarding environment
provides for making tour operators to include
services that not at all have any negative impact
on the environment.
Increasing competition has led way to have
impact on development of various packages that
allow and attract tourists for focusing on overall
experience to the tourists such as total tourism
product.
Conclusion
The changing trends in travel and tourism
industry have ultimately raised the competition
and also in effective regulations of the tour
operating agencies in UK.

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TASK 2
LO2 Understand stages involved in creating holidays
Introduction
It is necessary for having cherishing enjoyment at the chosen destination. It is essential that
proper planning for the travel at destination must be done in accordance with not facing any
sort of issues at the time of travelling. It is effective to state that at every stage of planning
for travelling various stages and factors are to be considered.
2.1 Assess the stages and timescales involved in developing holidays
The stages that are to be followed at the time of planning of holidays:
Research related to destination:
This is the first and primary stage of planning for travelling. This helps in exploring basic
information about the destination. It is necessary that destination is to be selected in
accordance with demand of tourist. This is to be concluded within a timeframe of 1-2 months.
Preparation of itinerary:
Once destination has been chosen, it is essential to prepare an itinerary that will provide all
necessary information regarding whole tour. This is second stage. Itinerary will provides all
information related to staying, transportation, inclusion in packages and travelling routes.
This is considered to be a systematic approach which will aid in dealing with issues that
might occur at destination. It must be completed within time frame of 2-3 months (Khan,
et.al., 2015).
Negotiation:
Tour operators are required to negotiate with various vendors that help in providing effective
services in packages. The travel and tour operators bargain in terms of decreasing price at a
possible rate that will allow effective price for a particular package. It is considered as third
stage which must be completed within a period of 3 months.
Price determination:
This is next stage which provides for determining price of package after having negotiation
with various vendors. This must be based on exchange rate of foreign currency that must be
accomplished at the final price of the packages. Time frame is 2-3 months.
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Marketing:
This is one of the essential tasks which are essential for being done in order to increase the
number of consumers of travel and tour operators. This is to be done by considering various
marketing techniques such as distribution of pamphlets and brochures, advertisement through
online media and other sources. This is to be done in a period of 1-2 months (Tigu and
Calaretu, 2013).
Tour execution:
The last stage is the execution of tour plan that has been proposed by tour operator. All
necessary plans are to be executed in manner as proposed in tour plan. It is essential that tour
operations use all necessary tools for effective control and monitoring of tour plans. All
factors that are being provided in itinerary are to be accomplished in decided manner.
2.2 Evaluate the suitability of different methods of contracting for different components
of the holiday and different types of tour operator.
Tour operators are focused on designing packages that include various features for alluring
consumers. These can be done by adopting two methods these are sale only contract and
fixed contracts. These methods are being used by various services providers such as airlines
etc. These contracts are being adopted by tour operators in terms of providing services to
tourists (Benjaminsen, et. al., 2013).
Fixed contract provides for collective as well as quantitative approach that is being used
towards sale of packages and services. These contracts provide for benefiting organisation in
earning profits of season. These contracts provide for benefits in term of advantages as it
improves cost-effectiveness of packages by including services at huge discounts.
Sale only contract includes high prices as compared to fixed contracts. These contracts are
also termed as seasonal contract that provides for maximization of quantity of sale of
packages. These contracts are made in order to earn off seasonal profits. There is less risk
associated with such types of contract thus it provides no liability to be imposed on tour
operators. However, there is no such high probability of discount (Waligo, et. al., 2013).
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2.3 Calculate the selling price of a holiday from given information below.
Details Amount in £
Cost 96 euro per individual twin room
sharing of two adults ( 96*42/2*1.12)
11,289.6
Fare of luxury coach bus (capacity 48 seats
including two drivers, one tour manager,
fuel and all taxes of ferry and road)
11200
cost of the Tour guide £945
Cost in Total 23,434.6
markup that has been decided 33% 7,733.42
Final selling price 31,168
Adjustments-
Exchange rate= €1.12
Final selling price of tour packages for per person= 31,168/42 = £742
Sale price of tour package £ 31,168
Per head contribution that is to be given to tour operator is £742.
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Conclusion
This task provides coherent information regarding various forms of stages that are to be to be
adopted by Trailfinders in terms of providing effective planning and packages to tourists.
Further, it is necessary that both the methods of contract are to be considered by the tour
operators at time of planning of travel packages. Lastly, it provides the details of selling price
as proposed by Grand Casselbergh in Bruges.
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Task 3
LO3 Be able to review brochures and methods of distribution used to sell holidays
Executive summary
This report is being prepared in terms of reviewing brochures and various methods and
techniques that are helpful in distribution and marketing of the holiday packages by TUI and
Thomas Cook.
Introduction
For the purpose of proposing the marketing plan for Kuoni, it is essential for planning for
decision that is to be taken in terms of designing of brochures and methods of distribution
methods as well types of tour operators that are to be determined in the present report.
3.1 evaluate the planning decisions taken for the design of a selected brochure
The phase of planning is considered to be one of the most of essential phase that provides for
implementation of the package brochure that will enable in terms of meeting objectives as set
by the company in respect of development of effective plan (Cisneros-Montemayor, et. al.,
2013). The essential planning decisions are herein discussed and provided:
 Inspection of decision-making issues:
It is essential that all the issues that are hindering the planning process must be
identified on priority basis. Such issues are to be considered for making inclusion of
such decision in particular format and design in the brochure of the company. It must
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include the information that is to be conveyed through brochure and also indicate the
time that is being utilised for development of brochure.
 Format of brochure:
The target consumers are to be kept in mind at the time of designing of brochures. It
is necessary that brochure must contain accurate and specific information in respect
of the packages that are being provided by the company to tourists (Boyle,2017).
 Target market:
It is necessary that at the time of developing of brochure target market is to be
determined by the company for which the brochures are being created and designed.
Thus, it will depend on the type of consumers to which such brochure is being aimed
at for attracting towards the packages.
 Budget:
All necessary information regarding the budget that is to use in the designing of the
brochure must be estimated so as to meet the expectation and quality that is to be
considered for designing of brochure.
 Scale of time and plan of action:
It is necessary that an action plan must be proposed for completion of activities that
are being done for development and designing of brochure (Phadnis, et. al., 2016).
3.2 Assess the suitability of alternatives to a traditional brochure for different types of
tour operators and recommend the most appropriate for your tour package.
There are significant differences between two forms of brochures that are being adopted by
various tour operators. Traditional brochures are documents that are containing all, necessary
information in terms of packages that are being provided by tour operators in printed form.
This provides for not establishing any direct communication in between company and
consumers.
Alternative brochures that are prevailing are E-brochures, visual brochures, websites. These
are considered to be effective brochures for making effective terms in establishing effective
communication between tour operators and consumers. This is considered to be less
expensive way for providing effective information to the consumers regarding travel
packages available with company (Kew and Stredwick, 2017).
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Thus, it recommended that E- brochures must be adopted by Kuoni for spreading information
and marketing its packages that are available with it.
3.3 Evaluate the suitability of different methods of distribution used to sell a holiday for
different types of tour operator
The various methods that are to be adopted for distribution by various tour operators are
direct distribution and distribution by using any other medium such as social media. These
methods help in expanding the business by allowing more and more consumers becoming
aware of the services and packages that are available with the tour operators.
Direct distribution can be done by way of allowing sales executives to interact with the
consumers that are interested in availing the services of tour operators. Travel agents are also
a part that allows travel and tour operators to communicate with the consumers by providing
retail packages to such tourists. However, another method that can be adopted by tour
operators is to provide information by using various technological means such as websites,
advertisements on various social media platforms (Bell, 2016).
Conclusion
The planning is one of the most important factors that allow tour operators to design brochure
meeting all necessary information to the consumers. The E-brochure is more effective in era
of technology to meet the demand of the consumers as compared to traditional brochures.
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Task 4
LO4 Understand strategic and tactical decision making for tour operators
Executive summary
This report is being prepared for providing information regarding various strategies and
tactics that provides for effective decision making for tour operators depending on the type of
tour operators that are aiming at effective decision making
Introduction
The strategies and tactics help an organisation to build strong and effective decision in terms
of meeting the expectations of the consumers. Thus it is essential to understand all sorts of
strategies and tactics that will be effective in decision making prices for a tour operator.
4.1 evaluate the strategic decisions made by different types of tour operator
Strategic decision making is considered to be one of the essential factors that allow a
company to meet its goals more effectively. Strategic management helps in increasing
productivity of the company (Khairat and Maher, 2012).
 Forecasting of demand:
Forecasting of demand is considered a determination of futuristic approach that us
essential for analysing an estimated demand that might arise in future regarding the
products and services of travel and tourism sector. This is to be done in respect of
establishing equilibrium between demand and supply.
 Market positioning, target and segmentation:
Consumers are diversified in terms of geographical and demographical prospective. It
is essential that company must understand the demand as is being proposed by tour
operators.
 Strategies related to pricing:
It is necessary that prices are to be fixed in terms meeting the terms of the meeting
the demand and pocket of the consumers. It is also necessary that price must not be
discriminating as to profit-making capacity of the company (Räikkönen, 2014).
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4.2 compare the tactical decisions that could be taken by a selected tour operator in
different situations
Tactical decision making is essential for the purpose of effective execution of various
activities that are essential in terms of development of the company. The decision that is
being affected by tactics includes:
Analysis of segments that are frequent and promotions that is specific. Price determination of
packages is also tactical decision. Maintenance of certain and secure transactions that are
taking place in day to day life of any tour company.
Other factors that are being included are tactical decision-making process are exchange rates
and economic growth and decline (Khairat and Maher, 2012).
Conclusion
The tactical decisions and strategies help an organisation to meet the competition that is
prevalent in market. All these provide coherent support to an organisation for the
development of the economic growth of the company and to meet all competitive
organisations.
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Conclusion
The effect of current and recent trends is to be considered important at the times of
developing business and futuristic growth. The stages those are essential in terms of
developing business for including developing holidays. The methods of contract such as fixed
and sale only contract are to be considered. The selling price gives an idea of estimated
budget of the packages. The effective planning of the brochures is to do for development of
business. Strategic decision and tactical decisions are to be considered by travel and tour
operators.
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