Tour Operations Management Report: Analyzing LCB Tours Strategies

This report analyzes tour operations management within the context of LCB Tours, a Malaysian tour operator. It examines the impact of current trends like technological advancements, environmental awareness, and Brexit on the industry. The report delves into the stages of holiday development, including brochure design, and evaluates different methods of contracting and calculating selling prices. It assesses the suitability of various brochure alternatives, distribution strategies, and the strategic and tactical decisions made by tour operators. The report provides insights into how LCB Tours can adapt to changing market dynamics and customer expectations, offering a comprehensive overview of tour operations management principles and practices. The report also includes analysis of brochure design, distribution, and strategic decisions, providing a holistic understanding of the tour operator's role in the travel and tourism sector.

Tour Operations
Management
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TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
1.1 Effects of current and recent trends in tour operation industry........................................3
TASK 2 (Incorporated in PPT)........................................................................................................5
2.1 Stages and timescales involved in developing holidays...................................................5
2.2 Suitability of different methods of contracting................................................................5
2.3 Calculation of Selling price..............................................................................................5
TASK 3............................................................................................................................................5
3.1 Evaluating planning decisions taken for the design of selected brochure........................5
3.2 Assess the suitability of alternatives to traditional brochures for various types of tour
operator...................................................................................................................................6
3.3 Evaluating the suitability of different methods of distributions utilised to sell a holiday for
different types of tour operator...............................................................................................7
TASK 4............................................................................................................................................8
4.1 Evaluating the strategic decisions made by different types of tour operator...................8
4.2 Comparing the tactical decisions which could be taken by LCB tour operator company in
different situations..................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
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INTRODUCTION
Tours operations management plays a crucial role for a tour coordinator as it helps the
firm in matching up changes in travel services according to changing market trends. The study
will outline influence of recent trends like advancement in technology, increased environmental
awareness and effect of Brexit on tourism services of LCB tours of Malaysia which offers
different and attractive travel packages to travelers to meet their expectation. The study will
identify planning decision of firm to select an appropriate design of brochure which is to launch
in market for particular service. Report discusses about the strategic decisions made by different
types of tour operator. It also highlights planning decisions taken for the design of selected
brochure. Assignment further discusses about comparing of the tactical decisions which could be
taken by LCB tour operator company in different situations
TASK 1
1.1 Effects of current and recent trends in tour operation industry
Current And Recent Trends In Tour Operation Firm
Tour Operator
It is the company which
provides different travel
packages to travellers
according to their needs and
travelling preferences. The
focus of firm is on unpinning
recent treads and
development if industry in
order to meet changing
expectation of customers.
Role of Tour operator
The role of firm is to
incorporate all the needs of
travellers into one packages
in order to make travel plan
simpler and coordinated
On the other hand, digital
advertising enables wide
options to customers which
increase the risk of buyers shift.
Effect of Brexit on Tourism:
Britain exits from European
union has impacted creativity of
tourism industry. Tourism
industry has been facing huge
challenges in managing
workforce skills. It has huge
impact on tourism industry,
they have suffered huge loss
during Brexit period. In the
future, a mounting skills gap
will result in a shortage of 4.2
million skilled people to fill
Types of Tour Operators
Inbound: These are the
travel firm which focus
on making arrangements
for international tourist in
home country. These
operators are considered
as host and provide each
and every service to guest
in own country. The
travelling packages of
this operator comprise
accommodation, transfer,
transportation,
entertainment etc. Thus,
with this the tours
organisation are able to
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within time constraints.
Analysis of customer’s
expectation is done by
implementing use of on
boarding strategies like,
development of traveller’s
personal profile or by taking
regular follow up. Further,
the focus of team is on
coordinating travel plan and
launching in market with the
help of brochure, digital
advertising or direct mailing.
Three recent trends have
strong control over customer
expectation and changing
travel plans which are
discussed below:
Advancement in
technology: Digitalisation
has boomed consumer
awareness and market of tour
operations. Digital tools
demand (The impact of Brexit
on tourism and creative
industries, 2018). In accordance
with this, it is important for
tourism organization to conduct
regular training's session in
order to keep employee
motivated and updated with
changing market trends
traveler’s expectation.
Increased environmental
awareness: Responsible
tourism is another concept
which has increase awareness
among travellers abut
presenting environment and
managing waste activities like
excessive transportation
(Kuilis-Bosimin and Chan,
2018). Environment can affect
tourism industry in positive and
negative way. If not adhered
properly, they can hamper their
contribute in foreign
exchange earnings for the
economy of host country.
Domestic: These firm
operates with domestic
boundaries with the
motive of exploring
diversity, culture and
beauty of own region.
UK outbound: These
firm of UK are focused
on providing multi-
national holiday tours.
These firm are
responsible for making
arrangement like,
transportation, visas and
contract with inbound
tour operating firms
(Mwesiumo and Halpern,
2018). The individual
forms and offers travel
packages according to
individual needs and
travelling preferences.
Specialist: These tour
operator incorporates
components of travel and
tour for creating a
package holiday with the
motive of meeting
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promote direct
communication of tour
coordinator and marketer
with travellers with the help
of which the company is able
to determine changing travel
preferences of travellers
(Hamid and ISA, 2018).
working. It lays a huge impact
on the tourism industry Further,
spread of awareness among
travellers has restricted travel
operator from enhancing
validation of travel packages by
adding activities when
travelling like, shopping
entertainment, etc. because all it
focuses on well-being of host
communities.
customer expectation
(Tamaki, 2018).
This is done by analysis
travellers specialise
travelling preferences and
wants like skiing, Hang
Gliding, Ice Driving,
Snow kiting, etc.
TASK 2 (Incorporated in PPT)
2.1 Stages and timescales involved in developing holidays
2.2 Suitability of different methods of contracting
2.3 Calculation of Selling price
TASK 3
3.1 Evaluating planning decisions taken for the design of selected brochure
Brochures can be defined as a small booklet which consists of promotional content or
information about the services or products offered by company. Companies such as LCB tour
operator operating in travel and tourism sector is required to inform customer about the products
or services offered by an enterprise. It is required by manager in LCB to involve various
elements in plans such as name of company, day-night packages, detail about the design of
brochure. All these elements are very much important in context of attracting customers and
influencing them to buy products or services. Brochure is a document which consists of detailed
information about the tour package. The planning of brochure starts with preparing the content,
selecting the color, pictures etc. Many brochures are designed by the marketing team in Lcb Tour
operator company which are published on the firm website, so that customer can easily access
the information. Brochure should be simple and should contain the clear information, as this
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factor has direct as well as significant influence on customer buying decision. It is important for
marketing manager to ensure that all the crucial elements are included in brochure, these
components are:
The planning decisions taken for the design of a brochure are :
Determining the purpose: The initial phase is to set the brochures objectives. It will assist in
determining all the other marketing plan and design of the brochures. The objective is to inform
the those customers about tour package those who wants to go on a tour to Spain. The target
market to distribute the and the way by which it will be distributed will be determine. It will
assist in designing the brochure.
Designing a brochure: After knowing the objective of the brochures, the next phase is to design
a brochure. It is the most essential phase as it will assist in attracting more number of customers.
In the designing procedures there are several factors that should be planned, size of the
brochures, colour decisions that will look attractive. Etc.
Folds in brochures: This is one of the unique feature of a brochure is its folds number. Deciding
a right folder number is one of the important task, the folds should be accurate that can complete
the content. There are different types of brochures are available with unique features and best
applications.
Review the copy: Only content is not sufficient, the way it is presented to the reader is also very
crucial. It is essential to review the copy of the brochures that will assist in determining the effect
brochures will have on customers.
Choosing correct fonts: It is required to be considered by tour operator that the appropriate size
of fonts are being selected for the brochures . It will determine the readability of the text, and
also influence it visual appeal.
Use photographs: For effective brochures design using quality images is very essential.
Selecting best photos that will give a visual picture of the tour packages will have positive
impression on customers.
3.2 Assess the suitability of alternatives to traditional brochures for various types of tour
operator.
Stills there are various companies such as LCb is still utilising the traditional brochure for
promoting their goods or services. There are various types of brochures which can be used by
LCb tour operator company for promoting holiday packages these are:
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Figure 1:Tri fold brochure
(Source: Make the brochure worth keeping, 2018)
E- brochure:This type of brochures is created electronically. In other words these types of
brochures can be designed using software. E- brochure provide customer an ease in accessing
the information about the holiday packages, detail about destinations etc. It enables tour operator
enterprise to deliver good experience customers (Page, 2014.). This types of brochures are
generally adopted by specialized tour operator. E- brochure are designed by marketing and
advertising experts. These types of brochures are suitable as it involves low marketing costs. It is
flexible and and are time effective tool. In addition to this, It helps in minimizing printing cost
to a great extent.
Internet : Promoting brochures on websites and different sites will be more beneficial than
traditional brochures. It is cost effective and assist in promoting holiday packages or products to
large number of customers as compared to traditional method. By utilizing the software,
company can make brochure more attractive. It will assist firm in influencing people to buy
particular products or services offered by an organisation.
Social Media: Social media is a great tool to distribute the brochures. Trough Facebook, twitter,
Instagram an organization can promote and advertise their brochures which will reach to more
customer than the traditional brochures.
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3.3 Evaluating the suitability of different methods of distributions utilised to sell a holiday for
different types of tour operator
Distribution can be defined as systematic procedure of delivering goods or services to
customers. It is very much important for LCB organization to select an appropriate distributional
channel, as this strategy will assist business entity in making the timely delivery of goods or
services to customers. In addition to this, Lcb company can make plan to form strategic
partnership with other firms, as this tactic will support an enterprise in providing quality and
timely services tourists. It will also assist an organization in providing high level of satisfaction
to customers. By adopting an appropriate distribution channel LCb organization can reach to
wide number of customers and can easily influence them to buy goods or ser4vices offered by an
enterprise (Kato, Hosono and Yamao, 2015). There are different methods of distribution which
can be adopted by LCB firm for selling holiday packages these are:
Direct selling: It is considered to be as the best method for selling the holiday packages to
customers. Direct selling is an effective method, as it provides marketing personnel a chance to
provide detail information about holiday package. In addition to this, direct selling supports
business entity in developing strong relationship with customers. It also enables marketing
personnel to influence people to buy holiday package. The major drawback is that direct selling
method cannot have used for selling goods to large number of people. Direct selling can be used
by the domestic tour operator or direct sell tour operators, as this distribution strategy will assist
an organization in developing strong relationship with customers. It will also support business
entity in influencing people to buy holiday packages and other services from company. By
utilizing this distribution strategy tour operators can sell holiday packages or services at lower
cost to customers.
Online selling: It is considered to be as another effective method for selling the services or
products to customers. Online distribution method enables an enterprise to sell products or
services to wide number of customers. In addition to, it also enables people to place orders and
pay for products online through company's website. LCb organization is presently utilizing this
distribution method for selling holiday packages. In addition to this, LCb company can take
support of social media platform for selling the holiday packages. Online selling is the best
distribution strategy which suitable to wholesale tour operators. Wholesale Tour Operators sell a
product through established retail distribution channels, both shopfront and online
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Visitor information centers: This information’s are also recognized as traveling organizers.
These institutions are responsible for organizing the tour as well as providing the services or
facilities to tourist at different locations. Customer generally visits information centers for
gathering the detail about specific tourist place.
TASK 4
4.1 Evaluating the strategic decisions made by different types of tour operator
In service sector, especially tour and travel company’s manager in an organisation has to
make various strategic decisions related to the growth of the firm. Some decisions might be
related to efficiency, customer services, market segmentation etc. All the strategic decisions are
taken by manager in an enterprise considering the needs and demands of targeted customer
group. There are few decisions such as pricing, positioning decisions are very crucial in context
of company success. Such decisions are to be made after detail discussion as well as depth
analysis of market.
Pricing decision: there are two factors on the basis of which manager in LCB company
determine the price of goods or services these are cost in developing the particular good or
service and other factor is income of customer (Chand and Dahiya, 2014). This strategy has
enabled an organization to increase its sales and profitability. Pricing decisions are taken by
retail tour operators. These tour operators are the face of main distribution channel for package
holidays. They sell the tour operator’s tourism product in return for commission. The
commission of retail tour operator generally ranges from ten to fifteen percent of the booking
price. They are motivated to sell a product to earn commission and they are keen to attract repeat
business.
Positioning strategies: It is crucial decisions as this has direct and significant effect on
firm performance. Selecting the right market for positioning services or products are very much
important. These types of decisions re taken by domestic tour operators. They provide trips to the
residents of a country within the boundaries of a country. They are also recognized resident
operators.
Distribution decisions: This is very much crucial decision in context of delivering the
goods or service on time to customers. In addition to this, transportation services should be
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strong. These types of decisions are generally taken by wholesale tour operators, as they sell
goods through established retail distribution channels.
4.2 Comparing the tactical decisions which could be taken by LCB tour operator company in
different situations
Tactics can be defined as the planning of actions which are to be executed by an
organisation for reaching to specific goals and objectives. There are various types of tactics are
adopted by LCb company for dealing with different situations. Some of the tactical decisions
which are taken by manager in LCB organisation for fostering business growth these are:
Tactic marketing -this decision has been taken by management in LCb organisation
considering the decline in sales. Manager has taken decision to bring improvement in marketing
activities. Management in an enterprise has planned to provide training to employees those who
are engaged in promotional activities. In additions to this, discounts have been offered by
company for attracting more number of customers. Manager in an organist ion has planned to
develop innovative product for attracting customers (Tay and et.al., 2016). Hence, the result is
increase in sales and profitability.
Tactics Pricing: discounted pricing strategy adopted by the competitors of LCb this factor
has direct as well as significant influence on the profitability and sales of firm. In such situation ,
management in LCB has planned to concentrate on the quality of products, as this strategy will
assist firm in attracting more customers. An organisation has planned to adopt either flexible or
low cost pricing strategy, as this will support company in dealing with price changes. In addition
to this an organisation has decided to set the price of products on the basis of demand in the
market. Marketing manager in Lcb has planned to conduct market research at regulars intervals
of time for analysing the demand of specific good by customers.
Tactical responses :There is continuous increase in level of competition in an industry, in
order to reduce threat of this factor LCB has planned to enter into new product segment.
CONCLUSION
The assessment summarized about tour operations management which is critical
functions of travel and tourism organisation because the services of these companies are
completely consumer centric. It outlines leaflet where the study discussed about different types
of operator and trends impacting travel and tourism industry. Thus, it concluded by conducting
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analysis of Brochures from different tour operators by rating them on the basis of cost, format,
budget, print specifications, etc. Hence, it outlined appropriateness of traditional brochure for
different types of tour operator.
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REFERENCES
Books and Journals:
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.
Hamid, M.A. and ISA, S.M., 2018. Exploring the sustainable tourism practices among tour
operators in Malaysia. Journal of Sustainability Science and Management. pp.68-80.
Holland, J. and Leslie, D., 2017. Tour Operators and Operations: Development, Management
and Responsibility. CABI.
Kato, A., Hosono, K. and Yamao, M., 2015. Effect of introducing an experience-based
educational tour and organizational operation: the case of Iejima Tourism Association in
Okinawa Prefecture. Journal of Rural Economics. 87(3). pp.279-284.
Kuilis-Bosimin, P. and Chan, J.K.L., 2018. PERCEPTION OF SABAH AS A SAFE TOURIST
DESTINATION FROM THE PERSPECTIVE OF THE TOUR OPERATORS AND
TOURISTS. Journal of Tourism. 3(11). pp.01-13.
Li and et.al., 2017. The concept of smart tourism in the context of tourism information
services. Tourism Management. 58. pp.293-300.
Mwesiumo, D. and Halpern, N., 2018. Acquiescence and conflict in exchanges between inbound
tour operators and their overseas outbound partners: A case study on Tanzania. Tourism
Management. 69. pp.345-355.
Page, S. J., 2014. Tourism management. Routledge.
Tamaki, K.Y., 2018. Integrated, diverse media marketing linked with database marketing for
inbound reginal tourism planned by destination. Journal of Global Tourism Research.
3(1).
Tay and et.al., 2016. Comprehending the responsible tourism practices through principles of
sustainability: A case of Kinabalu Park. Tourism Management Perspectives. 18. pp.34-41.
White, P. R., 2016. Public transport: its planning, management and operation. Taylor & Francis.
Online
Make the brochure worth keeping. 2018. [Online] Available through:
<https://creativemarket.com/blog/how-to-design-a-stunning-brochure-30-expert-tips-and-
templates>.
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