Developing a Holiday Package and Tour Operations: Detailed Analysis

This report delves into the intricacies of developing holiday packages and tour operations, focusing on the current trends and developments shaping the travel sector. It begins with an examination of how technology, globalization, customized products, and marketing techniques influence the industry. The report then outlines the stages and timescales involved in crafting holiday itineraries, including destination research, itinerary development, negotiation with suppliers, and pricing strategies. Furthermore, it evaluates the suitability of different contracting methods, such as sales contracts and fixed contracts, employed by tour operators like Thomas Cook. The report also explores planning decisions for brochure design and the strategic and tactical decisions made by various tour operators. Overall, the report provides a comprehensive overview of the key elements involved in the successful development and operation of holiday packages, highlighting the importance of understanding market dynamics and customer satisfaction.

Developing a Holiday
Package and Tour
Operations

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK1.............................................................................................................................................1
1.1 Explain the affect of current and recent trends and development of tour and travel sector
.....................................................................................................................................................1
TASK2.............................................................................................................................................3
2.1 Explain the stages and timescales involved in developing holidays.....................................3
2.2 Evaluate the suitability of different methods of contracting tour program...........................4
2.3 Calculate the selling price of a holiday program..................................................................5
TASK3.............................................................................................................................................6
3.1 Planning decisions taken for design of a selected brochure .................................................6
3.2 Suitability of alternatives to a traditional brochure for different kind of tour coordinators 7
3.3 Evaluate the suitability of different methods........................................................................8
TASK4.............................................................................................................................................8
4.1 Explain the strategic decisions made by different tour operator...........................................8
4.2 Compare the tactical decisions which are used by selected tour operator in different
situations.....................................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERNCES.................................................................................................................................11

INTRODUCTION
Tour and travel industry in growing very fast in current environment. With time, per
person disposable income are increase and people are spend their money into travelling as well
as food. A travel agency is a private retailer or public services that provide various kind of
facilities to public such as activities, car, hotel, travel insurance, airline, cruise lines, railways,
package tours and accommodation etc. Various kind of services may done of the basis of income
of customers. In this assignment Thomas cook group plc is a British largest tour and travel
company. Its is founded on the year of 2007. they run various kind of other subsidiaries firm like
retail, airline, hotels4u, condor, airline balearics and scandinavia. Thomas cook group plc is earn
net revenue of £9,007 million in the year of 2017 with operational cost of £330 million. Its run
their business operation at international level (Kauppi, Moxham and Bamford, 2013). In this
report covers effect of current and recent trends and development on tour sector and analysis of
suitability of different method of contracting, in the last calculate selling price of holiday. It is
also covers strategic decision made by various tour operator.
TASK1
1.1 Explain the affect of current and recent trends and development of tour and travel sector
The tour operator provide both services both tour and travel sectors to implementing
holiday packages in order to gain high market share as well as profits. This industry are grow
very fast as compare to other sectors of the United Kingdom. Its increase demand of services and
product. Tour packages and all related services are the product for this commercial enterprise.
This sector provide high employments as well as salary to all others sector company or
employees like food, hotel, travelling, retail cloth sector and many more. There are emerge
various kind of trends which affect growth of tour industry. Some important recent rends and
development are explain as follows:
Developed technology: In current environment technology and innovation are grow very
fast that create positive impact on all industry (Jones and Robinson, 2012). Tour sector many
also affected by this trend. Some important technology which affect travel industry are effective
communication network, strong and safe transportation system, reachability and many more.
Globalisation: Through this, company are able to provide their product and services in all
nations. In which firms are sell standard goods. So that, visitor are purchase product form any
1

where and any location easily. Through globalisation, tour company are capable to select any
location in different country.
Customized product: It is a management of Thomas cook group plc responsibility to
conduct research for gather information related to customer's needs and wants. Accordingly tour
operators have develop product and services in order to full fill demand of all clients in an
effective manner in given time frame.
Marketing techniques: in current business environment various type of marketing
activities are done to gain high customer's attraction toward firm product and offers. Manager of
Thomas cook group plc has used various marketing techniques like advertisement, promotion,
branding, strategies and internet or many more for increase profitability as well as high market
share (Medlik, 2016).
Level of customer's satisfaction: In order to gain clients gratification, firm are know
consumers preferences, attitude, perception, motivation factors and many more. Through
affective operational planning and strategies, company are able to enhance customer's
satisfaction. For this, they are develop strategies and build strong plaining of all activities which
are executing in duration of travelling.
Transportation: It is a one of the important factors which affect customer's satisfaction as
well as firm profitability. Each and every clients want economic, safe and comfortable travelling.
Because visitor can spend lot of time on of travelling and they need comfortable. In current
environment, transportation cost are economic basis lot of clients may go for holidays, thus
reduce price of transit facilities.
Mobile application: According to recent trend most of tour operators has launch their
mobile application which helps customers to provide all relevant information and data related to
holiday package. Through latest technology, mobile application should be more advance which
provide guideline of whole holiday plan.
The best cruise liners: Best cruise liners are carnival line, royal seven seas cruises,
Holland America, lindblad expeditions, viking river cruises and many more. By make effective
cruise liner, firm are able to enhance buyers attraction as well as satisfaction which increase
overall profits. According to recent trend, clients demand holiday in cruise which provide high
gratification in their vacation.
2

Best holiday package: Best holiday package has ability to attract large number of
potential customers at market place. It is a management responsibility to develop effective and
economic package in order to increase profits as well as sustainability in industry that enhance
clients satisfaction in long period of time.
Affect of PESTAL factors: When Thomas Cooks group plc make holiday plan then they
have consider some factors like political, economical, technological, legal, social and cultural of
other country.
ADD ON Trends: This is a trend which allow tour operator to provide some extra profits
that are not disclose in holiday package. In this pattern various kind of offers are include which
provide extra benefits all customers. It helps to attract large number of clients in order to rise
maker share as well as profitability (Naji-Azimi, 2012). For example, it tour operator can not
include food like breakfast, beverages, lunch and many more in their travelling package them
consumers are not fully satisfy. So that, these kind of extra offer called add on strategy.
TASK2
2.1 Explain the stages and timescales involved in developing holidays
Holiday must be preplanned by tour operator firm in order to increase customer's
satisfaction as well as all clients may more enjoy. Plan is very important for all activities which
create overall framework of tour destination and associated cost. It helps to take most appropriate
decision by analysing all alternative options (Al-Odeh and Smallwood, 2012). While preparing
holiday plan several stages and factors are consider to rise certainty or efficiency. Following are
some stages of developing holidays are discus below: Research for destination: Management of Thomas cook find out some destination in
order to make effective tour plan which help to increase profitability as well as high
customer's satisfaction. Developing tour itinerary: Select some destination for all available alternative according
to individuals needs and wants. It is a summarized form of all tour program. It is includes
accommodation, all destination, transportation, places to visited, travel routes etc. it is a
systematic process to arrange all activities in an effective manner.
3

 Negotiation: There are various suppliers and vendors which have deal with management
of tour operators. They negotiated with them in order to make economic travelling
packages for all potential buyers. Price determination: Manager has consider all cost like accommodation, transportation,
food etc. related to whole tour program. Foreign exchange rate may affect pricing of
travel packages (Bethapudi, 2013). Also they consider taxation policies, cost of fuel etc.
So that, company may consider all these element to fix price of holiday packages. Marketing of the tour packages: Administration of firm develop marketing plan. In this
they includes advertisement, promotional action, selling activities etc. Through this, they
are able to increase awareness about product offer information as well as services types in
order to increase reachability and achieve high market share.
 Execution of tour: In the end, implementation of plan has been start. For this, it is a
manager responsibility to find out execution barriers and remove it to achieve goals and
objectives in an effective manner.
Two weeks plan of holidays in Thailand which are located in Asia are describe as
follows:
Place Days Activities Date of
reach
Bangkok 4 It is mixture of Thai and western social culture
environment. Here are lot of temples and sunsets
that attracting lot of people toward country. Along
with this, there have floating marketing and it is a
attraction of whole Bangkok tour.
1st March
2018
Kanchanaburi 2 Here are various kind of bridges and rivers are exist
which create attention of clients. It is a heritage
location where lot museums are exist and show
history of the Thailand.
4th of March
2018
Ayutthaya 1 It is a most attracting heritage site in Thailand. This
city is famous for temples and culture.
7th of March
2018
Khao sok 2 It is a wildlife park located in Thailand. This area is
loved by adventures lovers.
9th of March
2018
4

Sunny
Beaches
5 Large as well as small both kind of beaches are
located here. Some are Lamai,Ta Pho, Buffalo Bay
beaches and many more.
11th of
March, 2018
2.2 Evaluate the suitability of different methods of contracting tour program
This assignment is provide information about method of contract that adopted by Thomas cook
group plc are explain as follows:
Sales Contract – In this method, tour operator make contract with other firm related to
sale product and services thus increase profitability and save resources. They are use only
relevant components which are needed. This kind of strategy may helps to sell alternative in peak
seasons and coordinator are able to rise sales (Chon and Yu, 2012). This sort of option that is
depend on experience of management which are came from customers. Thomas cook group plc
pay only for those services which are used by their clients. They return money to all original
suppliers and expend their business operations in an effective manner. It is understood by
example, a group of clients want to stay in Thailand in four star hotel, for this Thomas cook
booked 12 room for them but only 10 room are used. Thus company may return 2 days amount
to hotel because they book 12 room. So that, liabilities are transfer to other.
Fixed Contract – This tool assist manager to provide better or best services to their
clients in order to increase gratification with services of specialist vendors. This kind of service
have more productive as compare to others. Thomas cook group plc has enhance employment for
small scale firm by making contract like cap availability, catering, facilities and many more. It
include several risk factor that create negative impact on business activities as well as
profitability. This have clear that all vendors are specialist in their services which increase
quality of product and services (De Sausmarez, 2011). Through this, company are able to rise
customers experience.
Above both contract method are helps an organisation to build strong and effective
relationship with vendors in order to increase profitability and reduce complexity of work. They
develop strategies in order to achieve predetermine goals and objectives in an effective ways.
Clients satisfaction is a one of the important task of an organisation to gain competitive
advantages as compare to their competitors at market place. Company used various tool that
assist company in getting consumers attention.
5

Two bed contract allocation: Travel company has make contract to reduce uncertainty of vacant
room. Through this they are able to match their demand with supply effectively. Two bed
contract allocation: One: In this Company has allocating bed according to seasonal demand.
 In Second: Firm has already sell their bed to other room services provider like oyo rooms.
Tour and travel organisation has give contract to transportation in order to full fill their
vacant set. For example, hotel Marriott has book sets in transportation and it help them to rebook
their set in advance thus help to get profits.
2.3 Calculate the selling price of a holiday program
The tour is planned for ten people for two weeks or 14 days and cost statement of whole
trip program are explain as follows:
Type of Expenditures Total Expenses
Stay for 7 Persons 60000 Thai-Bhat
Beverages & Food 50000 Thai-Bhat
Accommodation (Approximately) 20000 Thai-Bhat
Transportation fee 70000 Thai-Bhat
Expected Tax rate @ 25% 50000 Thai-Bhat
Total Expenditure 2500000 Thai-Bhat
Sales Percentages
(£)
Summer exclusive tours
Winter exclusive tours
Minimum rated packages
Insurance and excursions
Interest on deposits
TOTAL
65
20
7
6
2
100
6

Prices structure of excursive tour:-
ITEMS PRESENTATION
(£)
Price 100
DIRECT COSTS
Accommodation
Air seat (included tax)
Excursions, transfers and many more.
Commission of agents
TOTAL
GROSS MARGIN
INDIRECT COST
Payroll expenses
Marketing
Office cost
46
30
5
7
88
12
4
4
1
TOTAL
NET INCOME
Trading profits
Interest on deposits
9
3
2
TOTAL 5
From the above table of sales maximum selling are done in summer approx 65% of total
sales and followed by winter with 20% to total sales. Some offer which are introduced by
organisation like low price packages etc. attracting 7% people.
In other table of tour expenses concluded that firm spend large amount in accommodation
and air ticket approx 46 and 30. So that, total direct cost is 88 and indirect cost 9. so all over cost
is 5.
Two adults are sharing one room, so that is why room cost was calculated as per utilisation of
room by visitors. Thai-Bhat is currency of Thailand.
7

 Total expenditure for all 10 persons are = 200000 Thai-Bhat.
 Cost of holiday for per person cost is 200000/10 = 20000 Thai-Bhat.
TASK3
3.1 Planning decisions taken for design of a selected brochure
In travel sector or any other industry, it is most important part in which company are
develop a brochure to provide full information about firm as well as their product and services to
all potential customers. Through this they are able to attract attention of large number of clients
in order to increase profitability and market share (Evans, Stonehouse and Campbell, 2012). This
is a method for marketing. It can be distributed face to face or on internet. Digitalization enhance
reachability of the brochures.
Issue identification for developing brochure: Management of Thomas cook group plc
identify problem which are came during development of brochure. Some important issues are
segmentation, targeting, positioning, formal of brochure, all information and data which are
includes, time limitation of implementation of brochure or many more. Management of the
company develop strategic decision related to tour holiday packages, it should be analysis and
comparing all alternative option.
Format of the brochure: Brochure is a systematic document of all relevant data and
information which helps to clients to select most appropriate one offer among all available
alternatives according to their needs and wants. There are includes many column and bus column
in brochure and all information are divided affectively in these segments. It make booklet more
attracting and understandable by all potential clients. The brochure designed are depend on
customer's preferences, attitude, perception, behaviours and many more. So that target
consumers may effectively understand all relevant information. Some information which are
contain in brochure are as follows:
 Name of the tour operator organisation.
 Mode of transportation in same as well as other country.
 All the legal requirements.
 Travel location and itinerary of the travel schedule.
 Accommodation and food facilities.
 Price of the holiday tour package (Gibson, 2012).
8

 All the conditions and other charges which are applicable.
How to make brochure: After gather all relevant information, designer has select photo, colour,
size, design etc. according to their theme like if they offer greece and spain. It help to attract
large number of clients toward company product and services offers. Three kind of size of
brochure is making so that they are able sell it it all store as well as easy to carry. Photo should
be related to famous located that attract number of consumers and provide information that they
“how attractive the location is”.
(Source: Greece, 2018)
(Source: Spain, 2017)
Budgeting and selecting target market: Before distributing brochure, management of
firm may prepare budget and identify target market. It helps to prepare brochure in an effective
9
Illustration 1: greece
Illustration 2: Spain

manner. Budget are show the capability of buyers to expand money which are the key factor of
selecting tour packages. According to budget target customers may identify easily.
3.2 Suitability of alternatives to a traditional brochure for different kind of tour coordinators
The traditional printed brochure is a classical approaches of marketing which are help to
attract large number of customers. Thomas cook group plc are used this approach to sell their
product and services. It is a physical formate of brochure which contain all relevant information.
But according to current market scenario printed books can not able to attract or retain buyer in
front of digitalization. The new technologies and innovation may are able to developed different
alternative of traditional approaches (Guo and He, 2012). It is a capable to manage gap or
shortcomings of all conventional brochures. The various types of different alternative of
brochure are explain as follows: E- brochures: According to current market scenario E brochure is a widely used method
by companies. Management of firm are select mode of distribution of these brochure are
social media site like Facebook, Instagram, twitter and many more. They also used
website and other internet networking site in order to spread information about product
and services. Visual brochures: In this, manager of Thomas cook group plc has make visual video to
attract attention of large number of people to gain high profits. It is a one of they
promotional strategies which push out the sales. This method help to create long term
memory about product in the mind of customers. Call centres: Various organisation hire many employees and provide training to them to
present product by calling to potential buyers. Through this, they are able to reach to all
consumers in a low price (Hoffman, Padberg and Rinaldi, 2013). Which positive affect
total package price of tour.
 Travel agents and retailers: Many small agency are work in tour and travel industry.
That improve effectiveness of operational activities as well as reachability. They are
located in each one area where firm can not able to present. That helps to increase
numbers of clients.
3.3 Evaluate the suitability of different methods
Every sector expand their distribution channel to develop equilibrium between supply
and demand. That helps to provide effective services to all buyers. Management of the company
10