Tour Operations Management Report: Planning, Decisions, and Strategies

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This report delves into tour operations management, analyzing various aspects of the industry with a focus on LCB Tours. It examines the planning decisions involved in brochure design, assessing alternatives to traditional brochures and evaluating different distribution methods for selling holiday packages. The report also evaluates the strategic and tactical decisions made by tour operators, comparing decisions in different situations. Key areas covered include pricing strategies, surcharge policies, branding, product choices, and distribution systems. The report aims to provide a comprehensive understanding of the tour operator's industry, emphasizing the importance of strategic and tactical decision-making in the context of LCB Tours' operations and the broader travel and tourism sector.
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Tour Operations
Management
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Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Covered in Leflate..................................................................................................................1
TASK 2 ...........................................................................................................................................1
Covered in PPT.......................................................................................................................1
TASK 3............................................................................................................................................1
AC3.1 evaluate the planning decisions taken for the design of a selected brochure..............1
AC 3.2 assess the suitability of alternatives to a traditional brochure for different types of tour
operator...................................................................................................................................2
AC3.3 evaluate the suitability of different methods of distribution used to sell a holiday for
different types of tour operator...............................................................................................3
TASK 4 ...........................................................................................................................................3
AC4.1 evaluate the strategic decisions made by different types of tour operator..................3
AC4.2 Compare the tactical decisions that could be taken by a selected tour operator in
different situations..................................................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6
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INTRODUCTION
Travelling industry is increasing day by day and it needs tour operation management for
managing their activities. It helps in economic development of tourism industry. Tour
operation is an important part of this industry as it helps business to make integration with other
tourism business (Chand and Katou, 2012). This report is based on Lcb Tours, it provides travel
and tourism services to its customers. It provides services in various countries. This project
explains different type of tour operators and recent trend in industry, planning decisions for
design of brochure, it explains alternatives to a traditional brochure for different tour operator,
different methods of distribution for selling holiday packages.
TASK 1
Covered in Leaflet
TASK 2
Covered in PPT
TASK 3
AC3.1 evaluate the planning decisions taken for the design of a selected brochure
Brochure plays an important role in tour operations as it provides complete details about
the packages offered by the tour company. It is considered as the promotional tool which helps
in promoting and advertising the plan and packages offered by different tour operator is very
essential for them to attract customers (KhairatP0F and Maher, 2012). In case of Lcb Tours,
marketing department designs brochures to sell their luxury packages. Brochures includes
planning decision which have several following steps:
Factors Thomas Cook Virgin Group
Cost The costing of this company's
brochure is generally high with large
market distribution which leads to
reduce their wastage
Its costing is low as compared to Thomas
Cook. It has small market distribution and
have high level of wastage.
Deciding
the format
It has three fold brochure which is
easy for its potential customers to
Their brochure is not effective as
compared to Thomas Cook because of its
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understand booklet form
Target
market and
budget
They generally targets large market
which will increase design and quality
of their brochure
They target small market with less budget
as compared to Thomas Cook which
results in low quality of their brochures
Determini
ng print
specificati
ons
They attract their customers through
very pleasant and finest through
feasible budget on their brochures
They rarely attract their potential
customers because of their print quality of
their brochures
Timescale
s and
stages of
production
They complete their brochures and
other stages of production on time
which leads in creating a good impact
in consumer mind and in marketplace
They generally does not complete their
brochures and stages of production on
because of this they are unable in meeting
their customer's requirement
AC 3.2 assess the suitability of alternatives to a traditional brochure for different types of tour
operator
In tourism industry brochure plays important role in selling their tour packages to the
clients as it includes complete information about the package. It helps customers to have full
knowledge about the destination, accommodation, transport etc. it also assists in attracting new
customers by making them aware about their services and products. The following are some
brochures which Lbc Tours adopts:ï‚· E-brochure: Company can use this kind of brochure for advertising their products and
services by making the customers aware about their offerings (Su and et. al., 2014).
Company upload their brochure to their official website so that every individual can
easily get knowledge about their packages. Outbound tool operators can use this as they
provide services in many countries. It will provide easy access to the client across the
globe.ï‚· Internet: In this company promote their services by using internet like they use Email
for advertising. Inbound tool operators use this by mailing all the details about package
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to clients. This gives information about the destination and cost related to package. It is
very cost effective and easy way to create large customer base.
ï‚· Social media: In this method, company use Social media platform for promotion.
Specialist tour operators can use this platform as it is very cheap and has wider reach to
many customers and it is very attractive way to promote packages. They can use
Facebook, twitter, Instagram etc. It will help LCB tours in enhancing their customer
experience and gaining an competitive advantages in a business environment.
AC3.3 evaluate the suitability of different methods of distribution used to sell a holiday for
different types of tour operator
Company can use different techniques for selling their tour package and offers to
customers. Management of Lcb Tours adopt those techniques which are beneficial for them to
increase their profits and customer base. These channels helps organization to make their
decisions. Company can use the following methods of distribution to sell holiday for different
type of tour operators:ï‚· Direct Distribution: In this method company sell their products and services to its
potential clients directly without involvement of any intermediary (Filby, Stockin and
Scarpaci, 2015). Domestic and inbound tour operators can use this method as it helps in
making direct relation with their clients. It attracts customers as they are making direct
communication with them. It also increases trust among clients and company. From this
organization can make large amount of profit.ï‚· Social media: Company can use social media platforms for distribution of their holiday
packages. Out bound tour operators can adopt this as they provide their services across
the globe. This platform has reach to the customers across world. By using Lcb Tours
can provide their services in other nations. Company can provide discounts coupons on
these platforms to attract and influence clients.
ï‚· Government website: Through this method of distribution, Lcb Tours can sell their
holiday packages and offers on website of public sector organizations. This method is
appropriate for domestic tour operators as it provides security of transaction to its
customers.(Buckley, 2014).
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TASK 4
AC4.1 evaluate the strategic decisions made by different types of tour operator
Various strategic decisions are taken LCB tours to meet standards set by organizations.
Purpose of this evaluation is that organization is able to know about customer. Decisions can be
taken with at-most effectiveness. These key strategic decisions are need to be evaluated so that
best strategies can be identified among them. Different strategic decisions taken by various
tour operators are as follows:
Pricing strategies: Pricing strategies are made to to attract as many customers as an
organization can. These strategies includes discount, additional offers etc. pricing strategies are
designed to provide cost effective tour packages to customers. Also, purchasing power of
customers of different segments are also taken into consideration before deciding prices (Cetin
and Yarcan, 2017).
Surcharge policy: Surcharges are referred to as additional costs involved in travelling
packages. These should be properly disclosed because it will enhance customer loyalty. As
amount of surcharges should not be more than expectation level of customers. This will help in
improving transparency between customer and LCB tours.
Positioning and image/branding: This is considered as an important strategic decision
taken by an organization. Because there are many companies present in in this tour and
travelling industry. So, to build image and position, LCB tours has to offer something different
that none other company is offering. This can only be possible when need and preferences of
customer will be analysed.
Choice of product in relation to customer portfolio: Customer satisfaction is an
important factor for any organisation so LCB tours have to design their products in accordance
with their wants and needs.
Distribution decisions: LCB tours should design its distribution system in a way that
time for fulfilling demand can be reduced so that customer not needed to be wait for long time.
Requirements of customer can be arrive at any time, and companies should be prepare for it.
Also, distribution system should not be complex (Shyju and Lama, 2015).
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AC4.2 Compare the tactical decisions that could be taken by a selected tour operator in
different situations
Tactical decisions are related to implementation of strategies prepared by management.
It is related to development of plans, structures, distribution channel and acquisition of required
materials. In case of tour operators, they make tactical decision for implementing their plans
and packages which they offer to their target clients. These decisions helps company to create
large customer base and in decision making process.
Tactical Responses: It is related to conditions of external and internal environment. In
case of Inbound tour operators, it helps them in making decisions which can be influenced by
other rival tour operators. Like responses from their clients and competitors can impact
implementation of their strategies.
Tactical Pricing: Specialised tour operators make their pricing strategies by considering
their target customers in niche market. They can provide surcharge pricing strategy to their
potential customers in which pricing is set in accordance with seasons .i.e. if there is a peak
season then prices will be higher and vice-versa. The other one is competitive pricing which
means they can set price of a holiday package according to their competition. (Holland and
Leslie, 2017).
Tactical Marketing: It includes strategies for achieving specific goals and objectives
and it also helps in implementation of strategies. Domestic tour operators use tactical marketing
strategy for advertisement of their offers and packages. They uses different promotional
activities including traditional and modern tools of promotions. In this context, LCB tours can
choose online distribution marketing strategy that includes face to face distribution and they
can also choose online marketing strategy in which they can distribute brochures by the use of
social media.
CONCLUSION
From the above report it is concluded that tour operations management helps tour
operators to manage and conduct their activities in an efficient manner. There are four types of
tour operators in this industry domestic, inbound, outbound and specialized operators. It
explains that there are some stages involved in development of a holiday plan. Tour operators
use fixed, allocation and ad-hoc contracts as per cA70819 (copy)omponents of holiday plan.
Designing a brochure includes planning decision which contains cost, format, target market,
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budget etc. Different methods of distribution like direct, social networking and websites are
used by tour operators.
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REFERENCES
Books & Journals
Chand, M. and Katou, A. A., 2012. Strategic determinants for the selection of partner alliances
in the Indian tour operator industry: A cross-national study. Journal of World Business.
47(2). pp.167-177.
KhairatP0F, G. and Maher, A., 2012. Integrating sustainability into tour operator business: An
innovative approach in sustainable tourism. Tourismos: An international
multidisciplinary journal of tourism. 7(1). pp.213-233.
Dhiman, M. C., 2012. Employers' perceptions about tourism management employability skills.
Anatolia. 23(3). pp.359-372.
Su, C. J., and et. al., 2014. Tour Leaders' Impression Management and Job Performance:
Exploring the Moderating Role of Tourists' Self-Monitoring. Asia Pacific Journal of
Tourism Research. 19(3). pp.356-373.
Filby, N. E., Stockin, K. A. and Scarpaci, C., 2015. Social science as a vehicle to improve
dolphin-swim tour operation compliance?. Marine Policy. 51. pp.40-47.
Buckley, R., 2014. Tour production costs. Journal of Travel Research. 53(4). pp.418-19.
Cetin, G. and Yarcan, S., 2017. The professional relationship between tour guides and tour
operators. Scandinavian Journal of Hospitality and Tourism. 17(4). pp.345-357.
Chand, M.O.H.I.N.D.E.R. and Dahiya, A., 2014. The impact of Service Quality on tourist
satisfaction and loyalty in Indian tour operation industry. International Journal of
Sales & Marketing Management Research and Development (IJSMMRD). 4(5). pp.1-
14.
Shyju, P. J. and Lama, R., 2015. An empirical study of new age employment in tour operations
and allied areas. International Journal of Tourism and Travel. 8(1/2). pp.20-31.
Holland, J. and Leslie, D., 2017. Tour Operators and Operations: Development, Management
and Responsibility. CABI.
Zhou, Z., 2015. Travel agency and tour operation.
Yan, L. and Ho, H. K., 2017. Impression management of tour leaders. Asia Pacific Journal of
Tourism Research. 22(4). pp.422-435.
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