HND Hospitality: Tour Operations Management Report on LCB Tours

This report, prepared for a Tour Operations Management assignment, analyzes the operations of LCB Tours, an outbound tour operator. The report begins with an introduction to the tour operator industry, followed by an examination of current and future trends impacting tour operators, including technological advancements, environmental awareness, and economic factors. It then details the stages and timescale involved in developing a holiday package, from market research and planning to brochure creation and advertising. The report also evaluates different contracting methods used by tour operators, such as fixed contracts, allocations, and ad-hoc agreements, and demonstrates the calculation of a holiday's selling price. Furthermore, the report evaluates planning decisions, the suitability of alternative promotional methods, and the effectiveness of different distribution channels for selling holiday packages. Finally, the report includes an evaluation of strategic and tactical decisions made by tour operators, providing a comparative analysis and concluding with key insights into successful tour operations management.

TOUR OPERATIONS
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Effects of current and future trends on tour operator............................................................1
TASK 2............................................................................................................................................3
2.1 Stages and timescale involved in developing holiday...........................................................3
2.2 Different methods of contracting...........................................................................................5
2.3 Calculation of selling price for holiday.................................................................................6
TASK 3............................................................................................................................................6
3.1 Evaluation of planning decision............................................................................................6
3.2 Suitability of alternatives.......................................................................................................7
3.3 Suitability of different methods of distribution for selling holiday packages.......................8
4.1 Evaluation of strategic decision made for different tour operators.......................................8
4.2 comparison of tactical decisions............................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Tour operators provide amazing travel packages to travellers in order to make their travel memorable. Present study is based
on Lcb tour that works as tour coordinator. Its main agenda is to provide n amazing travel experiences to tourists and generate profit
in business. Current assignment will explain effects of current and future trends on travel business. It will illustrate the stages and
timescale involved in developing a holiday. In addition, report will evaluate the different methods of contracting for different
components of holiday. Furthermore, it will describe different methods of distribution used to sell a holiday for different types of tour
operator
TASK 1
1.1 Effects of current and future trends on tour operator
TOURS AND OPERATION MANAGEMENT
Inbound tour operator
They are such
business that arranges
travel for foreign tourists.
They provide
transportation,
accommodation,
sightseeing, entertainment
services to foreign
travellers those who wish
to travel in other country.
Their travel packages are
Current/ Future trends and
development
Tourism industry has
significant contribution in economic
development of nation. Over a
period of time many developments
have been taken place in this industry
that has supported in increasing
revenues of travel business
(Yamamoto, 2017).
Specialist operators
They are specialized in providing
specific kind of products such as arrange
adventure, medical travel for consumers
according to their need (Enoch, 2016).
Rise or fall in inflation: It is another major
factor that affect tour operators. During
2008 UK has faced inflation situation where
people were not having adequate income
sources but now fall in inflation has
improved value of economy.
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marketed through various
Outbound tour operator
They are another
kind of tour operators
those who organize
multinational holidays for
travellers. They arrange
travel for consumers
within nation or another
region for specific period
of time. They arrange visa
and other facilities for
travellers so that
individual can enjoy their
journey. Lcb tour works
as outbound tour operator
 Technological development:
Advancement in technology
has affected positively to
tourism industry. It has
transformed the way of
communication between
consumers and tour operators.
Internet, social media sites
etc. have helped Lcb tour in
making effective coordination
with travellers and identifying
their needs (Sammer and
Saleh, 2016). Now consumers
actively participate in shaping
or designing products that can
meet their travel needs.
 Environmental awareness and
responsible tourism: Increasing
tourism activities create problem for
the environment. Overcrowding,
traffic issues create trouble for
residents. Apart from this it increases
pollution as well. But over a period
of time people have become more
aware and responsible (Wolshon and
Pande, 2016). Tour operators are
now promoting responsible tourism.
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in the country (Ferguson,
2018).
Digital revolution has helped
business in developing
healthy relationship with
customers and balancing
power of providers and
visitors (Coles, HC Poland
and Clifton, 2015).
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TASK 2
2.1 Stages and timescale involved in developing holiday
Lcb tour has to consider needs and requirements of consumers in order to develop holiday . This can support in providing them
amazing travelling experiences. Stages and timescale in developing a holiday are described as below:
Market research
In order to develop a holiday packages Lcb tour has to first conduct market research. This is the way through which major
attributes related to specific market and needs of travellers can be gathered (Bhouri, Aron and Scemama, 2016). By this way company
can analyses economic, political situation of particular place. Furthermore, research supports in finding attractive places where people
like to go and designing travel products accordingly.
Planning and scheduling
Once research has been completed then Lcb tour will have to determine major destinations, hotels where people can go. Proper
planning aids in designing an attractive tour package and scheduling holiday (Fartash, Hadi and Xiao, 2016). Individual will have to
schedule the days of holiday at particular place.
Contracting
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Once scheduling has been done then next tour operators has to make contract with suppliers. These suppliers are such as airline
companies, hotels, etc. They have to make negotiation with these suppliers in order to develop holiday packages reasonable for each
buyer.
Costing
Once negotiation has been done then Lcb tour will have to identify various cost involved in holiday. They have to calculate all
expenditures and have to add marginal profit into it. Cost of research, local arrangement, travel, accommodation etc. need to be
considered (Types of Tour Operators., 2018)
Financial evaluation and pricing
Costing the holiday helps in reaching to pricing decision and evaluating the profit through this tour package. In this stage Lcb
tour will have to decide pricing for particular holiday. It is essential to determine exchange rates for deciding future selling price
(Types of Contracts, 2018).
Brochure creation
Once all details have been completed then individual will require to create a brochure in order to promote this tour package of
Lcb tour company. Brochure designing needs to be attractive and all details need to be maintained in it. This will help in attracting
travellers towards it. Paper, designing, colour, pictures etc,. all aspects need to be study properly in order to create a attractive
brochure (Ferguson, 2018).
Advertising
In this phase tour operator will have to advertise the brochure through website, social site, email etc. SO that more people can
know about the new holiday package and they make their mind to buy this package.
Operation and execution
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Once all these phases have been completed then Lcb tour will have to execute their plan and will have to start communicating
with consumers. Operations and execution need to be done in such manner so that goal of company can be accomplished ( Sammer
and Saleh, 2016).
Post tour management
Once plan has been executed then tour operator will have to prepare for post tour management because after implementing the
plan many quarries will be run and issue may take place so Lcb will have to be prepared to manage all these things significantly in
order to meet the objective (Wolshon and Pande, 2016).
2.2 Different methods of contracting
Fixed contract
This is type of contract that is made between tour operator and other stakeholders such as hotel owner, transportation supplier
so that they can achieve efficiency. In order to form this contract Lcb tour operator has to pay certain amount to these stakeholders
because without having their services company will not be able to provide amazing travel experience to travellers. Lcb has to pay
amount for pre-booking of hotel or airline services (Kavousi-Fard and et.al., 2014). Such type of contract is cheaper as compare to
other contract. Fixed contract helps the tour operators in gaining more profit in season time. It is also beneficial for dealers as well
because they assured get booking.
Allocation
It is another type of contract that is used by operators to block hotels and carrier seat in advance. Allotment is being purchased
by these operators throughout the season. Before carrier departure these companies make contact with suppliers and book services. It
is negotiable, both service provider and operator negotiate for pricing and reach to end result that can be profitable for both (Bhouri,
Aron and Scemama, 2016).
Ad-hoc
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It is another type of contract that is made for specific circumstances. It can be an improvised method in order to deal with
certain problems. If tour operator requires sudden services then they make such kind of contract with stakeholders and pay for the
same (Types of Contracts, 2018).
2.3 Calculation of selling price for holiday
Selling price is the actual rate of product on which company sells its products and services in the market. In order to decide the
selling price entity has to look upon its expenditures and revenues and have to add marginal profit in to it. This helps in deciding the
actual pricing selling price (Fartash, Hadi and Xiao, 2016). LCB tour firm incurs direct, indirect expenses. Calculation of selling prices
is illustrated as below:
Expenditures Price per person
Airline charges £ 25
Salaries to staff £ 50
Load cost £10
Hotel expenses £15
Miscellaneous charges £8
Mark up 15%
Total cost 108*15%=124.2
It is identified that total cost of developing a holiday package is £124.2, LCB Company will have to pay to airline firms for
ticket reservation and will have to pay hotel in which travellers will stay. Furthermore, salaries and other miscellaneous changes will
be occurring. If entity wants to generate 15% profit over it then total cost of developing a holiday packages will be 124.2. Thus,
selling price of LCB tour will be 124.2 that mean if entity sells its products at this price then it will be able to generate 15% profit.
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TASK 3
3.1 Evaluation of planning decision
In order to design attractive brochure, company is required to prepare it in efficient manner that can gain attention of mass
audience (Wolshon and Pande, 20`16). To implement attractive brochure it is essential for the company to understand psychology of
consumers and accordingly it has to use colour and paper so that people look upon it and make their mind to go on holiday. Planning
to prepare a brochure starts with content, colour and photos that would be used under it.
 Cost: First LCB will have to analyses the cost that would be incur to design this planning process (Ferguson, 2018).In contrast
when Firm has to understand what kind of paper would be used and how much investment are require to be done in order to
design an eye catching brochure. If entity does not have adequate financial resources then it would use cheap material that may
impact on consumer buying decision to great extent (Yamamoto, 2017).
 Deciding the format: Next phase is to decide the format of entire brochure. It is responsibility of manager that to prepare
presentation of this brochure in such manner so that consumers look upon it and make their mind to buy this travel package.
However when Individual has to ensure that brochure contains all necessary information that is essential for the travellers.
However All details must be clear and concise (Sammer and Saleh, 2016).
 Target market and budget: Lcb tour firm has to decide the target market, for example if it is organising a adventurous tour for
youngster then it has to decide price accordingly and if it wants to target the professional people then has to decide budget
accordingly.This supports in determine volume and design that would be used for designing this brochure.
 Determining the print specification: font size, colour all these things need to be clear so that target audience can understand the
benefit and can take quick decision to buy this holiday package. (Kavousi-Fard and et.al., 2014).
 Timescale and stages of production: Deadline of launching this brochure, destination, need to be clear so that demand of
consumers can be meet out.
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3.2 Suitability of alternatives
Creativity and innovation has replaced the traditional methods of promotion. Development in technology has supported business
in implementing latest and creative way to promote the products so that entity can gain attention of mass audience and can influence
their decision. Traditional brochures now have been replaced with many alternative ways of promotion. Now Lcb tour company can
take support of E-brochure to approach the target consumers (Bhouri, Aron and Scemama, 2016). This is the easiest way to reach to
large audience and making them aware with new product of business unit. Mailing to travellers regarding the new offer and package
will help them in knowing about the attractive places and important features. This will help the company in making them ready to buy
products.
Entity can also use social networking sites in order to send visual brochures. Through social sites entity can send them pictures,
videos of particular place. This innovative idea aids in grabbing attention of mass consumers to great extent (Kavousi-Fard and et.al.,
2014). Facebook, Twitter platform supports business in spreading information across the world in easy or quick manner. Thus, by
applying these alternative methods Lcb tour company would be able to increase its sales for the new holiday package that would aid in
raising profitability of organisation to great extent.
3.3 Suitability of different methods of distribution for selling holiday packages
Tour operators always concentrate on needs of consumers and distribute their products through appropriate way so that they can
reach to mass audience. There are several methods of distribution of holiday package of Lcb tour company (Yamamoto, 2017).
 Direct distribution: It is considered as most simple and effective way to distribute the product and services. Telephone,
internet, social networking sites etc. are various methods through which entity can make direct communication with buyers. By
this way firm will be able to make them aware with new holiday package and t will be able to influence their decision as well
(Ferguson, 2018). If consumers have any kind of issue then they can directly ask their quarries and company will be able to
resolve it immediately through direct distribution channels.
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 Online travel agencies: There are various travel agents those who work as intermediaries between company and consumers.
Entity can make connection with these online travel agencies in order to sell its products and services. These online travel
agents make connect with mass audience and distribute brochures to their existing travellers. This helps in attracting more
people and making them aware with new products of Lcb tour company (Enoch, 2016).
 Government website: This is another effective distribution channel. Government always give necessary detail regarding
destination, facilities so that tourist activities can be encouraged. Many travellers now-a-days first loo upon these sites in order
to gain all necessary detail regarding the place (Wolshon and Pande, 2016). By giving detail of new travel package on these
government sites entity would be able to communicate the information to travellers. This will support in gaining attention of
mass audience and influencing their decision as well.
4.1 Evaluation of strategic decision made for different tour operators
It is very important for company to take many strategic decision so that it can meet the objective of business. Lcb tour company
has taken many decision and have implemented effective strategies in order to gain competive advantage and sustaining in market for
longer duration. Strategic decision of Lcb Tour are described as below:
Discount pricing strategy
There are many tour operators such as Thomas cook, TUI etc. those which are offering amazing travel packages to travellers.
In order to sustain in market for longer duration it is essential for Lcb that to take significant strategic judgement regarding pricing
(Bhouri, Aron and Scemama, 2016). Thus, entity has implemented discount pricing strategy to seek attention of high number of
consumers. Each travellers who is interested in this travel package will get additional 10%discount on it. Now when people look upon
this pricing then they found it little better and affordable. By this way they buy this product and enjoy their trip.
Distribution decision
It is another strategic decision of Lcb tour company, entity has used social media for distributing the information regarding its
holiday package. Entity has send attractive videos, images and all detail of tour to consumers. This is direct distribution or two way
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