Holiday Package and Tour Operations: Analysis of Trends and Strategies

This report provides a comprehensive analysis of holiday package development and tour operations, focusing on recent trends and developments within the industry. The report examines various aspects, including the stages and timescales involved in holiday development, the suitability of different contracting methods, and the calculation of package costs. A significant portion of the report is dedicated to planning a brochure, evaluating the planning decisions, and analyzing different distribution methods. Furthermore, the report delves into emerging trends in the UK tour operations sector, differentiating between tactical and strategic decisions. The report uses Thomas Cook as a case study to illustrate the concepts discussed, covering both domestic and outbound tour operations, and addressing factors such as globalization, customer preferences, and environmental awareness. The report provides a detailed budget for a sample tour package, and offers practical insights for those in the tour and travel sector.

Developing a Holiday package
and tour operations

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1...........................................................................................................................................1
1.1 Recent trends and development in the tour operations industry.......................................1
TASK 2............................................................................................................................................3
2.1 Stages and timescale involved in development of holidays.............................................3
2.2. Suitability of different methods of contracting the various components of holidays for
different types of tour operators.............................................................................................4
2.3 Cost of the components of the package and calculation of selling prices........................5
TASK 3............................................................................................................................................5
P 3.1 Plan a brochure and evaluate the process and planning decisions for the proposed
brochure..................................................................................................................................5
P 3.2 Analysis of the type of holidays taken..........................................................................7
P 3.3 Evaluate the non-traditional methods of distribution....................................................7
TASK 4............................................................................................................................................8
P 4.1 Analyse the emerging trends in the UK tour operations sector.....................................8
P 4.2 Differences between tactical and strategic decisions....................................................9
CONCLUSION .............................................................................................................................11
REFERENCES .............................................................................................................................12

INTRODUCTION
Industry of tour operations involve various sectors which directly connected with the
business of organisation in travel and tourism sector. There are various trends and development
have been taken place in this industry which has changed the ways of organisation to operate
their business. These recent trends have provided impact on performance and development of
tour operations industry (White, 2016). Present report is based on analysis of Thomas Cook,
which is British tour operators has its business various countries. Information about different
types of holiday packages have been provided along with strategic and tactical decisions which
are need to be taken by Thomas is also discussed. Further Various promotion methods are also
discussed by using the brochure and various methods of distribution are also reviewed.
TASK 1
1.1 Recent trends and development in the tour operations industry.
Tour operators mainly combines the mainly person and organisation, performs the functions of
planning various tour packages for people.
Working as tour development manager in Thomas cook which is tour operator in UK, the
current recent trends and development in industry have been discussed which affects the
organisation and its important activities. Tourism is one of the fastest growing sector which has
provided its major contribution towards growth of economy and GDP of countries (Jacobsen and
Munar, 2012). This growth has been achieved by organisation due to some important changes in
trends and development arise within tour operation industry. Tour operation industry is growing
continuously due to increase in demands of products and services. Tour packages and related
services are analysed as products in this industry. There are various and development have been
taken place which are mentioned below:
 Increase in disposable income in the economy: Economy of country has provided impact
on the growth of industry. The disposable earning is that part of income of person which
is considered as saving after meet all the expenses. In UK, disposable income of people
have been increased as a result of increase in economic growth of country. It has raised
the spending power of customers and they are more likely to purchase the holidays
packages for travelling to different parts of world.
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 Globalization and FDI: With an increase ion globalization and Foreign direct investment,
the trade boundaries between countries have been eliminated. This has provided major
influenced on travel and tourism industry by increase customers from different overseas.
Thomas cook is also affects by globalization because they also have their business in
different overseas nations.
 Increase in customer preference: Rise in educational level of people in countries have
changed their preference towards products and services which are offered by tour
operators. At present, customers more likely to travel adventurous places, beaches,
wildlife safari and other services (García and eta.l 2016). While development of tour
packages, Thomas cook also needs to consider the requirements of customers.
 Growth in cruise holidays and eco-tourism: Cruise tourism is one of the fastest growing
segment in the tourism industry and also provided important contribution to economy of
UK and local communities. In this, Thomas cook needs to develop cruise tourism to
make sure that they should maintain core and natural and cultural values of their
destinations through development of various policies that safeguard their nature.
 Environmental awareness and responsible tourism: With increase in problems of
pollutions in various countries, people have become more concentrated towards travelling
to those places which are free from pollution and create environment awareness among
people. In this, Thomas Cook needs to develop their tour packages after analysis level of
pollution various countries and tourist destinations. Company is also focused towards
creation of environmental awareness among people in UK.
 Economic, political and technological factors: Political factors that affects the tour
operations industry are changes legislation of government and policies related to
sustainable tourism in country also provides impact on operations (Grant, Wong and
Trautrims, 2017). Economic factors involves in changes in tax policies, tax rate and
inflation rate of country also affects the decisions of tourists and holidays packages of
Thomas cook. For example: country having high rate of inflation will provide impact on
expenditure of tourists.
There are various types of tour operators which are mentioned above:
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 Domestic: These are tour operators that formulate and design tour packages for people
living in country to travel different parts of same country. Thomas cook , TUI group also
comes under category of domestic tour operators.
 Out bound: These tour planners have their operation at global level and they develop tour
packages for customers of different countries (Hall, 2010). These tour operators mainly
plans to take travellers all around the world. For example: Virgin holidays, Thomas cook
and TUI groups also comes under category of out bound tour operators as they develop
various tour packages for traveller to travel in different parts of world.
 Inbound: It involves the non residents travelling in another country. Companies that
delivers local assistance for tours arriving in their country are inbound tour operators.
 Specialist: These are tour planners who only formulate tour packages for specialised
group of people that needs to travel in different parts of world.
 Direct sell: These are also analysed as agents who direct sell the tour plans which are
developed by various tour operators in their websites as they have major interlink with
international tour operators
TASK 2
2.1 Stages and timescale involved in development of holidays.
Below given are some stages which are involved in development of holidays are as follows:
 Market research and planning: It is the most important stage for development of holidays
packages in which the organisation tends to undertake research about the current trends
and requirements of people in UK and different countries (Hudson and Thal, 2013).
Appropriate market research will help the managers of Thomas in analysing demand of
tourist destinations in packages and buying power of people to pay for holidays packages.
It enables organisation to plan the tour packages.
 Forecasting and scheduling: After making research, Tour operators will forecast the
resources which are requirements for development and implementation of holidays
packages. After this, managers of Thomas cook will make proper schedules of activities
which are needed to be involves in these packages.
 Contracting and allocation: In this stage, company will make contract with their suppliers
such as Hotels, travel companies, cab service providers, Flight bookings and other
services providers for development of budgets.
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 Ad HOC and Split chartering: In tour operations, this is also involved by tour operators
when there is requirement for customers transport some goods to another countries with
them. Along with this, charter flights is a flight in an aircraft in which all the seats are
paid by the travel company and then sold it to customers, usally at low cost than that of a
scheduled flights.
 Air brokers: These are persons or organisation that provides air travel services for
customers. These are also considered as mediator between tour operators and Airline
companies in UK. They provide services by charging specific amount as commission on
Air bookings.
2.2. Suitability of different methods of contracting the various components of holidays for
different types of tour operators.
 Fixed contracts: This type of contract involves collective and quantitative approach. It is
type of contract which is fixed for particular term and will end after the end of period. It
is contract which is meant for maximizing sales and services which will not be utilized
and repaid back by tour operators to customers (Kayar and Kozak, 2010). In this context,
Thomas cook also make this type of contract with customers in their holidays and charge
fixed prices for services. It is less beneficial for them because they have to prices of
extra sets if they are not used. For example; If the prices are paid for 50 seats and
customers are only 48 then company has to pay the price 50 people.
 AdHoc contracts: In this type of contracts, tour operators make booking when the there
is requirement of services for customers. It involves no risk and cost administration. It is
also effective in case where tour operators needs to manage extra requirement of
customers.
 Sale only contracts: In these contract, services are sold by Thomas cook at high prices as
compared to fixed. These contracts have been made on the basis of demands and
requirement of customers. It contains no risk because payment will be made for the
services which are used by customers.
2.3 Cost of the components of the package and calculation of selling prices.
In this case, a budget for tour package has been prepared for providing information to
Thomas cook about the cost which is associated with tour packages such as direct, indirect cost,
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fixed and variable costs. A tour package has been prepared for students for five nights and six
days in Brussel for month of July 2019 is mentioned below:
From the above table, it is analysed that this tour packages will cost £3436.4 for each students and it
has prepared for 42 students. All the cost such as direct and indirect, fixed and variable cost are clearly
mentioned in the budget. Facilities which will be provided to clients by Thomas cook is also discussed in tour
package. The selling prices of tour package will be £3436.4. Travel company will provide a 50 seater bus for
clients.
TASK 3
P 3.1 Plan a brochure and evaluate the process and planning decisions for the proposed brochure
In tour and travelling sector is focus on more and more marketing is to be used to
improve the level of customer in market. In the brochure is incudes all the terms and conditions
related to package services (Redjem, 2016). This is one of the most important part and help to
increase the number of client in market. This may incudes the complete information about
packages services is to be provided and manage work and increase on the job state of affairs.
Some most important factor are as follows :-
 Name of the package
 Content and services provide by package
 Discount and offer
 Time limit
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 Rules and regulation or some restriction
 Other relevant services is to be provided by tour and travelling sector.
The Booklet purpose at capturing the market and inform custom-made about the relevant
commodity and services (Kerzner, 2017). In addition, consumer is focus on bewitching brochure
and manage work or improve productivity in market. Client aim is supply best services and
increase total development of governing body. Some important steps to be follow are as
follows :-
 Design a brochure :- A booklet can tell your trade name story in a manner a flyer or a
poster can’t can have an amazing subdivision on the cover, a powerful body of
commodity or services, and a powerful closing call-to-action that drives contact.
 Take photo :- In this stage, to take a new photo related to tour and travelling sector. It is
easy to improve customer services.
 Write a copy :- In this stage, can print a quick run on your business office printer if you
ever need to. Granted, laser printer adjustment will never look as slick as a professionally
printed but it will get you out of a baulk.
 Determine price :- The overall demand is to be depend on price. The demand and level of
customer is help to increase market share.
Some other factors for help to increase number of customer in different market.
 Advertisement online :- Online adversing, also called online merchandising or Internet
promotion or web promotion, is a form of commercialism and advert which uses the
Internet to deliver encouragement marketing communication to take in.
Advertisement offline :- Offline marketing is any promotion or advertisement that is published
and discharged outside the Cyberspace. It effectively reaches and grabs the tending of multitude
who are currently inside the vicinity of said marketing activity.
P 3.2 Analysis of the type of holidays taken
There are some factor is most important part and manage work or improve productivity
and number of customer in market. Some key elements are to be used and manage work or
improve method in work place. Some other factor are as follows :-
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 Content :- In this context, content to be used in tour and travelling sector for promotion is
most important part and help to increase number of customer in market. In this way,
welcome note and brief note of the company and about the packages what the package is
offering organisation and way to promote such kind of activity (Flores-Garza, 2017). This
is to be focus on many factors are taxied, bus, hotel and securities safety is to be provided
by organisation. This is help to improve overall development and increase market value
or improve overall development in working environment.
 Structure :- In this context, Construction of such Booklet are consecutive starting with
series of content, attractive image and a detailed message about the package is most
important part and improve growth rate in market (Medlik, 2016). This is help to manage
work and improve productivity and increase market share.
 Size :- It is one of the most important part is style to used in booklet. The customer is to
be attract on size and proper formatting is to be done. There should be used A4 and A5
size paper in booklet and manage work or improve productivity in overall development in
market share. In addition, horizontally written over it with a book fold at the Centre of the
leaf.
 Traveller agency :- A travel agency is a business that operates as the intermediary
between the travel industry (supplier) and the traveller (purchaser). Part of the role of the
travel agency is to market p repackaged travel tours and holidays to potential travellers.
P 3.3 Evaluate the non-traditional methods of distribution
In this context, non- traditional method is to be used and manage work and improve
general physical process in activity share (Byrnes, 2016). Know-how of arrangement Booklet or
packages include the transmission channel or middlemen who help in administer the same.
Arrangement is situated at one spot and it is difficult to publicize about the institution end-to-end
the globe. There are some new method is to be used and manage work or improve productivity in
working environment. On the other hand, different method is to be used are as follows ;-
 Newspaper :-This is most important and less costly method is to be used in organisation.
The paper are the essential and most applicable form of print media accessible to
institution to reach wide range of custom-made. The further vantage of the above channel
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are as travel. In the context, tour and travelling sector is to be focus on some changes and
manage work or improve the level of productivity and market share.
 Internet :- This method is use now days and manage work or improve productivity and
alteration overall physical process of organisation. In this way, each and every customer
is use internet and easy to handle any kind of situation and manage work or improve
productivity in new areas as well (Vongsaroj, 2018). In this way, Custom-made now a
day are devising relation investigation on different piece of land so the organisation has
to be open-eyed in making argumentation related to concept, promotion, service,
evaluation and discounts offering on packages. All such factor is to be incudes and pull
off work and better overall on the job state of affairs.
TASK 4
P 4.1 Analyse the emerging trends in the UK tour operations sector
In tour and travelling sector is to be focus on operations' activity is to be used by
organisation and manage it proper way. There are some decision is to be taken by organisation
and help them to for future time period (Celik, 2017). This is assistance to manage work and
improve overall improvement and addition activity growth. Some important factor, which is give
direct impact are as follows :-
 Pricing strategies ;- In pricing strategies is most important part and tour or travelling
sector is to be focus on price and select the best price as per the need of customer in
market. Evaluation is of import tool and aspect in maturation and property of any
organisation peculiarly tour and travailing which is extremely influenced by dense cut
tubular cavity request. For every arrangement net income is the soul demand for its
creation. To be focus on social environment and manage work and improve productivity
and increase market share (Grant, 2017). It is to be incudes cost, objective and different
packages is based on only one factor is cost. The cost is changes demand and supply
conditions and manage work or improve overall future development market.
 Positioning and branding :- It is to be focus on decision is to be taken by name of the
arrangement and manage growth rate in market share. It is short and simple or easy to
recognise each and every activity in market share. Like Thomas Cook it should be casual
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to articulate as client will hesitate to economic process ask for service from that trade
name which are hard to en-ounce in market.
 Market segmentation, targeting and positioning: Customers are segmented by
diversification of customers according to their features and demand. Packages are
designed considering the requirements of the customers.
 Effective promotional strategies: Marketing is an effective tool to aware the customers
about the products and services. The operators should choose the most effective tool for
promotions from all the available options.
In this context, management of Thomas Cook should follow recent trends such as
technological advancement, foreign direct investment, globalization, customized products and
different marketing techniques. Company should used all of these in order to understand
customer's preferences and fulfil them in competitive environment. These are too much useful
for determine the operation in tour management and provide help to the marketers of Thomas
Cook for demonstrating the choice of potential clients and suggest ways for achieving desired
growth. From the above finding, it can conclude that the company will able to attract more
customers. In the travelling industry, there are various type of tour operators such as inbound,
outbound, domestic and specialist tour operators. All of such type provides better services to
their customers.
P 4.2 Differences between tactical and strategic decisions
There are some strategies is to be concentration and improve overall development in
market share. Some other kind of plan of action is to be travel and manage work in outside
environment (Kennett‐Hensel, 2010). On the other hand, market competition is give negative
impact and reduce level of performance and slow down in market.
This is help to manage the work and improve productivity and increase overall
development and increase market share. If the security's industry is challenger due to existent
rivals or entranceway of new participant in special type of industry of journey and travels
marketplace is hugely impressed, then institution has to opt for liberal argumentation and to
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support its work choice intact (Grant, 2017). A institution like Thomas cook can fix terms of the
employment equal to or lower berth than that of challenger price but company should not see or
via media on the quality of work supply.
There are some factor is give tour and travelling sector and manage work and better
work-clothing improvement and increase market share (Byrnes, 2016). Some decision is to be
taken with the help of promoting new facts about growth rate and come through number of client
in market. To be use short and long term decision is to be taken for future improvement or help
any kind of marketing issue. To be solve each and every factor and take long term decision and
manage work as per the need of general alteration in securities industry.
 Market penetration – It is a significant strategy that use for understanding the demand
and preferences of customers for their products and services. In this context, The Thomas
Cook made better brochure for increasing the number of customers and achieve all
desired targets and objectives. Management of this Company also take some strategic
decisions for achieve the pre determined aims. For this purpose, the company produce the
products and services for the specific population and cover up their demand.
 Sales promotion – In this technique, the Thomas Cook is able to increasing its sales
during the summer holiday. It is the systematic process of build up long term customer
loyalty. There are many types of sales promotion techniques that are gift coupons,
sampling, offers and several discounts for expanding their turnover in competitive
market.
 Early booking discounts – It is an essential technique that is useful for attracting those
customers who booked their holiday package early with using any kind of booking. In
this context, management should provide proper discount to such type of customers.
CONCLUSION
Form the above report is based on tour and travelling sector and manage work as per need
of overall physical process in market. The report is detail description of tour operation company
and main aim is to increase number of customer in market share. As per the above report is focus
on arrangement Booklet or packages include the transmission channel or middlemen who help in
administer the same. In this report is focus on pricing plan of action is most important part and
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tour or travelling sector is to be focus on price and select the best price as per the need of
customer in securities industry. Form the above report is based on focus on new method or
contracting and manage work and increase overall practical state of affairs.
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