Tour Operations Management: Strategic & Tactical Decisions

This report provides a comprehensive analysis of tour operations management, covering various aspects of the industry. It begins by examining current and recent trends and developments, including product development, technology application, and increased disposable income, and their effects on tour operators. The report then assesses the stages and timescales involved in developing holidays, evaluates different contracting methods for holiday components, and calculates the selling price of a holiday using provided data. Furthermore, it evaluates planning decisions for brochure design, assesses alternatives to traditional brochures, and recommends suitable distribution methods for different tour operator types, specifically focusing on luxury tour packages. Finally, the report evaluates strategic decisions made by different tour operators and compares tactical decisions in various situations. The document concludes with key findings and recommendations related to tour operations management.

Tour Operations Management
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Table of Contents
Introduction......................................................................................................................................4
Task 1...............................................................................................................................................5
P 1.1 Analyse the effects of current and recent trends and developments in the tour operators
industry........................................................................................................................................5
Task 2...............................................................................................................................................7
P 2.1 Assess the stages and timescales involved in developing holidays....................................7
P 2.2 Evaluate the suitability of different methods of contracting for different components of
the holiday and different types of tour operator..........................................................................9
P 2.3 Calculate the selling price of a holiday from given information......................................11
Task 3.............................................................................................................................................12
P 3.1 Evaluate the planning decisions taken for the design of a selected brochure..................12
P 3.2 Assess the suitability of alternatives to a traditional brochure for different types of tour
operators and recommend the most appropriate for your tour package....................................14
P 3.3 Evaluate the suitability of different methods of distribution used to sell a holiday for
different types of the tour operator and recommend the most appropriate for a luxury tour
package......................................................................................................................................16
Task 4.............................................................................................................................................19
P 4.1 Evaluate the strategic decisions made by different types of the tour operator.................19
P 4.2 Compare the tactical decisions that could be taken by a selected tour operator in different
situations....................................................................................................................................20
Conclusion.....................................................................................................................................21
References......................................................................................................................................22
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Introduction
The tour operator industry is a developing sector of the tourism industry. This sector provides
with accommodation, transportation and the recreational service etc. to the consumers and
tourist. The report has focused towards the tour operator industry in order to establish an
evidence-based and real-time understanding of the tour operator industry. The report will study
various attributes and concepts of the industry in relation to performance and operations. The
report will study stages for developing tour packages, the decision-making functions, brochures
and recent developments in the tour operator industry.
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Task 1
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P 1.1 Analyse the effects of
current and recent trends
and developments in the
tour operators industry.
Introduction
Tour operator industry is a
dynamic and evolving sector
of the economy. The tour
operator industry is impacted
by the various current and
recent trends that are
functioning in the orbit of tour
operator industry. The trends
and their impacts are analysed
as below:
The trend of Technology
application in the industry–
Tour operator industry has
observed the excessive
application of technology and
software to process numerous
business functions and
activities (Font and McCabe,
2017). The industry has
observed for increased
application of internet
technology and information
technology for the preliminary
The trend of Product
development- This industry
has undergone extreme
alternations and changes in the
respect of product
development and
undertakings. The industry has
observed developments in the
tour packages and services as
per the requirements and
specifications of the
consumers.
Effect on the Industry-
The trend of product
development as per tourist
specifications and
requirements advanced the
products and services in the
tourism industry (Jenkins,
2015). The industry has
observed the development of
tour packages and programs
according to the demands. It
has increased the level of
performance and services for
the consumers.
The Trend of Increased
disposable income –
Conclusion
It can be concluded from the
above discussions that tour
operator industry has been
impacted in a developmental
and positive manner from the
recent and current trends and
development in the tourism
industry.
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and ancillary services.
Effect on the Industry-
With increased application of
information technology and
the internet into tour operator
industry, the business
functions and services have
been altered. The industry has
observed changes in booking,
reservations and the payment
systems execution today.
In the contemporary tourism
and tour operator industry, the
consumers are provided with
increased disposable income
to furnish their tourism
requirements.
Effect on the Industry-
With increased levels of
disposable income available to
the consumers, the industry
has observed a shift in the
tourism market. The
consumer's demands for high-
quality services that provide
with exceptional experience
(Watne, et. al., 2014). The
industry has observed the
development of niche market
tourism facilitating the leisure
tourism.
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Task 2
Introduction
The report will discuss the concepts and aspects included in developing tour programs and
packages. The report will focus on the terms of evaluating the suitability of various contracting
methods in relation to different types of tour operators. The report will execute calculations of
the selling price for an educational tour package.
P 2.1 Assess the stages and timescales involved in developing holidays.
Trailfinders is developing an educational tour package for 42 students with time duration of 5
days. The organisation will undergo a process that will entail various stage involved in
developing a tour package or a holiday. The stages are explored as below:
Market Investigation: The Trailfinders are required to access market information and details of
the desired location. In this stage, the tour operator organisation will investigate into the market
conditions of the identified location(Watne et. al., 2014). The market investigation includes for
analysing and evaluating the forces of demand, supply, consumer expectations, and economic
conditions. The stage enables to identify and estimate the required services and finances involved
in developing the tour package.
Planning and Scheduling: The tour operator will schedule the tour after assessment of the
market and economic condition. In this stage, the Trailfinders will plan the requirements of
various activities and services required in order to execute the educational tour activities(Jenkins,
2015). The stage involves assessing the best time period to visit the identified destination.
Further, the accommodation, transportation and recreational activities and facilities are organised
by the tour operator.
The framing of Agreements: The stage is required to proceed for the contracting and forming
agreements for the identified services and facilities form the service providers and organisations.
It involves negotiating and determining the costs and process for all the required services and
facilities to be included in the tour package. Trailfinders is recommended to execute these
requirements 12 months before the required tour dates.
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Costing and Financing: The tour operators further assess and determine the selling prices for
the tour package developed. At this stage, Trailfinders will determine the actual costs incurred to
develop the program and will add up a markup percentage in order to incur profits from the
development of the holiday package. It also accounts for developing coupons, discounts, and
special offers etc.
Promotion and Marketing: After the development of the tour package Trailfinders will develop
marketing strategies and programs to market and promote the developed tour package. The tour
operator will develop brochures, mailing lists and pamphlets to be distributed amongst the
students and acknowledging with the details and requirements of the educational tour
program(Charter and Tischner, 2017).
Execution and Post Toru Analysis: The last stage of developing a tour program includes for
implementing the program and executing a post-tour analysis. The real-time execution of the
plan is furnished and the services developed in the program are availed. Lastly, the tour operator
is required to execute a post-tour analysis in order to determine the consumer experience and
satisfaction level from the tour package.
Timescales Involved
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P 2.2 Evaluate the suitability of different methods of contracting for different components
of the holiday and different types of tour operator
There are several types of contracting methods and tour operators involved in developing a tour
program. The different tour operators and services required in the tour programs are discussed as
below:
Accommodation Services: The accommodation services provide staying over services required
in order to stay at the desired destination. The hotels and resorts provide with these
accommodation services by providing rooms and clubbed areas to facilitate the accommodation
services. The Trailfinders are required to assess the room requirements and the number of guests
the tour is accommodating. Further room capacity is to be determined in order to evaluate the
accommodation requirements(Clark, 2015). For developing a tour package for 5 days fixed
contracting is suitable as it is a pre-defined tour package with a fixed number of guests. This type
of contracting provides with maximum profitability and revenues for the tour operator.
Transportation Services: The tour operator is also required to determine the transportation
services and facilities. These services include for determining the routes and the modes through
which transportation will be executed. The transportation may be executed through airlines,
railways, and waterways etc. The tour operator is required to assess the number of bookings to be
processed and determine the requirements(Trinkūnienė et. al., 2017). Variable contracting is the
most suitable for this type of service as it provides with opportunities to change the number of
requirements as per the number of seats and bookings required. Variable contracting also enables
to monitor the fluctuations in the prices that are reflected upon the selling price of the tour
package.
Food and Eatery Services: The tour activities and programs also require including the food and
eatery services. These services are either fulfilled through restaurants or the services provided by
the hotels and resorts. The food services are required three times a day which forms a major part
of the tour costing and finances. Thus the food and eatery services are executed through fixed
contracting that provides with all the required meals.
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Recreational and Amusement Services: These services are required for a tour in order to
increase the level of services and satisfaction of the consumers. As the above developed is an
educational tour it requires to provide with various recreational and educational activities and
programs(Lai and Hichcock, 2015). The tour has to incorporate visits to various visitor
attractions that provides with educational and professional knowledge and content to the
students. For this segment of the tour, the tour operator is required to consider variable
contracting or fixed contracting.
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P 2.3 Calculate the selling price of a holiday from given information
Particulars Per Person Selling Price for 42
students
Hotel €79*5= €395 €16590
Coach €7400/40= €185 €7770
Tour Guide € 800/40=€20 €840
Mark Up (30%) €180 €7560
Total €780 €32760
Conclusion
The report has provided with in-depth analysis and has accumulated evidence-based information
to comprehend the concepts of developing a tour package. The report has increased knowledge
related to tour contracting, types of tour services, calculations for tour costing and stages of
tourism development.
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Task 3
Executive Summary
The report has been developed with an objective to depict evidence-based and effective
understanding of the brochures and its development. The report will focus on developing
brochures and designing brochures. It will assess the suitability of various alternatives towards
traditional brochures. The report will also develop an understanding of ways to sell the holiday
packages and programs.
Introduction
Brochures are referred to as informative documents which are used for providing different types
of information to the target markets. The brochures are developed in a manner that provides with
the visual and graphical representation of the information and details. Brochures can be folded
into templates and are easy to disturb in mass gathering and public areas.
P 3.1 Evaluate the planning decisions taken for the design of a selected brochure
Designing of a brochure requires ascertaining various decisions and strategies. Several elements
are to be considered before developing and distributing the brochure in public. It is essential to
study all the elements that are necessary to develop a brochure(Hudson and Hudson, 2017). The
elements enable to determine the effectiveness of the brochures. The planning decisions that are
undertaken in designing the brochures are as below:
Format: This refers to the design and the layout or the structure in which contents of the
brochure will be presented to the consumers. The format also includes for the font style, size,
matter representation and the writing patterns of the details and information(Ahmad, 2016). The
format is one of the most essential elements of the designing the brochure.
Design: It refers to the layout of artwork and the graphical representation that is to be included in
the brochure. The design is required to be attractive and appealing so that it attracts an increased
number of consumers towards the organisation. Brochures must be designed as per the abilities
and understanding capacities of the target market consumers.
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