Strategic and Tactical Decision Making in Tour Operating Organizations

The document examines strategic and tactical operations at Thomas Cook Group Plc., a prominent tour operator. It discusses various aspects such as decision-making frameworks used by different types of tour operators including inbound, outbound, and domestic. The analysis extends to the company's supply chain management practices, customer service methodologies, and marketing strategies. Through literature review and case studies, it provides insights into how Thomas Cook Group Plc. manages its operations efficiently, ensuring competitive advantage in the tourism industry.

TOUR
OPERATION
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Effects of current and recent trends and developments........................................................1
TASK 2............................................................................................................................................2
2.1 Stages and timescales involved in developing holidays.......................................................2
2.2 Suitability of different methods of contracting for different components ...........................4
2.3 Selling price of a holiday from given information................................................................4
TASK 3............................................................................................................................................5
3.1 Planning decisions taken for the design of selected brochure...............................................5
3.2 Suitability of alternatives to a traditional brochure...............................................................7
3.3 Suitability of different methods of distribution.....................................................................8
TASK 4............................................................................................................................................8
4.1 Strategic decisions made by different types of tour operator................................................8
4.2 Tactical decisions that could be taken by a selected tour operator.......................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Tour operators are regarded as one of necessary stakeholders in whole tourism industry.
In United Kingdom, tourism is one of the rapid developing sector and it also generated the more
revenue at market place. This sector provide its contribution in Gross Domestic Product of
nations. In context to this, purchasing power of persons enhancing which assess business firms to
create various as well as sustainable plan on the basis of expectation and requirements of various
target groups (Barratt, Choi and Li, 2011). This assignment is based on Thomas Cook Group Plc
organisation which is leading leisure travel firm in all over world. In this firm more than 22,000
staff members are working and it operates its business from 17 source markets. Under this
mention report discuss about effects of existing as well as recent developments and trends on
tour operations sector. Suitability of various methods of contracting various elements of holiday
and also various kinds of tour operator.
TASK 1
1.1 Effects of current and recent trends and developments
In travel and tourism, current trends many impacting whole sector in both ways which
can be negative or can be positive. Current position of this sector is to developing very quickly
and also attract large number of consumers. In the market of United Kingdom, tourism forms
have more scope and also have many attractive locations for existing visitors and make changes
on the basis of current trends. Thomas Cook Group provides many advantages to consumers and
also provides attractive travelling packages for specific destination and which is Thailand to
them so that they can travel in all over the world. Sector is reshaping structure to deliver the
maximum services as well as comforts to consumers on the basis of their changing demands
(Cook, Hsu and Marqua, 2014). On the other hand recent trends in this industry has impacted
business firms in context to customize according to the trends. The impact of recent as well as
current trends and developments given below as above:
Technological changes- In past time, people go to airport, railway station for ticket
booking so it was more expensive and time taking. But from changing in technology in this
present time period, consumers book their tickets through online. Thomas Cook Group us using
its own mobile application to facilitate consumers at the door step in order to deal with the travel
packages as well as tickets. In this, consumers can book their tickets as well as cancel them.
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Internet became a necessary part of modern era and it puts its efforts to attract more consumers
on the online interface.
Enhance purchasing power- Maximising power of the consumers is to leading towards
luxurious trips and travel. Consumers are more expecting many facilities them at the time of
tourism period. Customers are more seeking for any speciality in amazements and comforts for
tour. Thomas Cook Group provides many holiday packages and also continuous programmes in
order to meet needs of consumers whose income is varied.
Dynamic packaging- Consumer are demanding its travel packages for own tour
packages as independent as well as personal tours (Dietz, 2011). Under this, visitors are selecting
own attractive destinations sin order to visit in effective time. Thomas Cook Group provides
offers as well as vouchers to its loyal consumers.
Cost effectiveness- The firm is running its business online, consumers provides facilities
in context to compare travelling packages and services of Thomas Cook Group with the other
business firms. If cost of travelling packages will be reduced then in this case large number of
visitors will be attracted towards it and profit level of firm will be enhanced effectively.
TASK 2
2.1 Stages and timescales involved in developing holidays
The people of this modern era are regarded tour as life time experience and also want to
satisfy their needs from tour operators. The Thomas Cook Group enveloping the travel packages
on the basis of demand of consumers and also fulfil them in a systematic or proper manner at
destination at Thailand. In United Kingdom, there are various attractive locations which satisfy
needs of consumers in an effective manner. Some of the stages of developing holiday plans for
visitors given below as above:
Gathering information- It is primary stage which is necessary for tour operator in
context to gather the relevant and accurate information regarding taste as well as needs of
consumers in a better manner. In addition to this, manager of Thomas Cook Group gathers
necessary or accurate information from which it can satisfy demands of consumers in a better
way.
Cost evaluation of packages- After information collection, there is a need to organisation
to examine cost of the different trips and also their values through business firm and give the
many holiday packages to consumers (Evans, Stonehouse and Campbell, 2012). Because of this,
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there is a need to manager of Thomas Cook company to attract different needs of various
consumers to access the holiday packages.
Arrangement and Negotiating with services provides: The main aim of Thomas Cook
Group is to attract consumers and also satisfy their needs by offering effective travelling
packages (Grant, Wong and Trautrims, 2017). There is need to Thomas Cook firm to provide
various services such as leisure time, sight- seeing, transportation, accommodation and many
other services. This firm provides all the facilities to its visitors so that they can not face any kind
of problems.
Completing legal needs- Under this, there is a need to Thomas company to conduct its
business by following all rules of company. The rules and legislations of every country is
different from the each other so it is essential that firm can know about the legislation of other
country while conducting business internationally.
Advertisement and promotion strategies- Promotion as well as advertisement both are
the effective strategies to attract the people and aware them about the services of firm. Through
many different communication channels, tour operator can interact with consumers (Hoyos,
Morales and Akhavan-Tabatabaei, 2015). It is an effective way to developing the better plan and
encourage people to use travelling services of Thomas Cook firm. This company gives
advertisement with the help of social media, television, newspapers e and many different modes.
Activities 1 to 7
Day
8 to 14
Day
15 to
21 Day
22 to
28 Day
29 to
35Day
36 to
42 Day
43 to
49 Day
50 to
56 Day
Gathering Information
Cost evaluation of
packages-
Arrangement and
Negotiating with services
provides
Completing legal needs
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Promotion and
advertisement strategies
2.2 Suitability of different methods of contracting for different components
There are various factors which need to handled as well as management by Thomas Cook
Group in order to planning for a trip at Thailand. It provides many facilities to visitors like for an
instance accommodation, transportation, attractive destinations, cleaning rooms and many others.
On the basis of environmental nature and also needs of consumers, Thomas Cook Group needs to
do many legal facilities ( Kerzner, 2013). The needs of every tourist is different from each other
at the time of tour. This organisation prepare the tour packages which is fully dependent in
interests of consumers. Under this there are two different contracting methods along with the
suitability of two tour operators which are chosen given below as above:
Fixed income based contracts- These are made in industry of tour operators in addition
to allocate volume based as well as long term capacity. The fixed contract is made through tour
operators with the other stakeholders like for an instance owner and also owner transportation
with the fixed amount through them without based on filling specific services which are provided
through travelling firm. Its main aim is to earn more profit in off- weak of the travelling.
Sales based contracts- These are made on utilise basis where the costing as well as cost
paid for sold facility. Generally these contracts are used for mass markets. Under this tour
operator books specific facility like for an instance transportation and hotel facility which are
depends on utilization of the payment of all facilities (Lenahan, 2011). These contracts are
effective or particular tours including small number of visitors.
2.3 Selling price of a holiday from given information
Under this, Thomas Cook Group plan for holiday group for individuals as well as family
for United Kingdom. There is a measure of total cost of all package which are mention below as
above:
Cost Calculation Amount
Cost and value of room 1*5*10 €60
Cost of bad room 1*5*6 €30
Total variable cost 1*9*10 €90
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1€ =.9£
Variable cost in £ 60*.9 £73
Cost of Transportation
facilities
£400
Cost and price of guide
services
£250
Total tour cost £650
Profit margin ratio 20% £780
Entire sales price of
tour(Discounted)
£780
Cost for family holiday determined:
Cost Calculation Amount
Cost of room 5*5*10 €250
Cost of Bad room 5*4*5 €100
Total variable cost €250
1€ =.9£
Variable cost in £ 250*.9 £225
Cost of Transportation
facilities
£2500
Cost and price of guide service £900
Entire cost of tour £1125
Profit margin ratio 20% £1350
Total price of tour £2475
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Both these give tables explains about measurement of the selling cost. There are two
different kinds of costs and these are valuable and fixed. The fixed cost is not changeable and on
the other hand valuable cost can be changed (Martinez, Stapleton and Van Wassenhove, 2011).
In context to family package, there are four members cost is main part of this which determine in
the form of Euro and cover in pound. The margin cost of all kinds of facilities has analyses as
20%.
TASK 3
3.1 Planning decisions taken for the design of selected brochure
Travel and tourism industry is informing their tourists towards providing good as well as
services which are given through tour operators to visitors at the reasonable prices. Better
planing is helpful in doing all the activities and operations of firm in a systematic manner.
Thomas Cook Group conducts its activities by using different techniques as well as tools for
attracting the large number of consumers through providing them attractive destinations.
Brochure is a necessary element which is prepared through the tour operator consist
comprehensive data related to trip which is provided through the business entity to consumers.
Format of Brochure- Under this, for effective design of the brochure, format plays a
necessary role to people towards information offered through Thomas Cook Group firm. For
developing a better plan, management of this organisation chose Z format in order to put
information in various category which will simpler for the people to search as well as understand
(Moutinho, 2011). Under this format, management of Thomas company will provide information
regarding specifications of destinations, accommodation, transportation related services, images,
costs etc. This kind of brochure format will develop curiosity and also engage target consumers.
There are many attractive brochure which are mention below:
Name of tour operator- Thomas Cook Group is tour operator which gives various
services to consumers in an effective manner.
Transportation families- There are many various transportation services which are used
through Thomas like cabs, tourists buses, cars on rent and some of the other services to
consumers.
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Name of itineraries and destination of holiday trip- This firm decide to providing their
holiday packages in United Kingdom. In this country there are different attractive places which
are more attractive.
Accommodation and other necessary facilities-Firm gives various kinds of services
concerned to the accommodation. Under this, it provides clean room, fresh food facilities to
consumers in a better manner.
Cost of holiday trip- Thomas Cook firm provides its tour packages to person as well as
family with attractive offers or discounts (Naji-Azimi and et. al., 2012). Under this costs which
determined are £2475 and £780.
Conditions and terms with extra charges- This firm charge extra costs for its consumers
like for an instance lunch, breakfast and dinner.
Lawful needs and requirements- Under this, company follow all the legislations and
fulfil all kinds of formalities which are developed through government of United Kingdom.
Budgeting and choosing target destination- Budget is a planning too; which is necessary
for company in context to prepare an effective budget for travelling. Before providing the
destinations to consumers, firm determines needs and requirements of consumers and also their
paying capacity.
Time frame for fulfilling stage- Under this, it is necessary for an organisation to make
better time frame on the basis of activities (Robinson, Heitmann and Dieke, 2011). It is a
necessary part of the marketing decision for manager of tour.
3.2 Suitability of alternatives to a traditional brochure
Traditional brochure: It is determine as classical approach for the marketing decision of
Thomas Cook Group which consist relevant data. But it is not very much effective as well as
relevant for an organisation. There is a difficulty arise for company to finding an attention of
consumers. This brochure provided to Thomas Cook Group to attract more consumers towards
providing services of firm with various design of the brochure. The methods of traditional
brochure have remind more popular method to give information and also attract customers for
holiday packages at Thailand. In addition to this, there are various alternative which are given
below as above:
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E-Brochures- It is necessary part of brochure which assess tour operations for offering
all relevant information to consumers. It will be helpful in supporting the planning in a specific
time period with more attractiveness.
Visual- In this, tour operator attract consumers while presenting the beautiful images in a
better manner.
Social Media- In this present era, large number of people are connected with the social
media and it is a best source to communicate with people (Scherrer, Smith and Dowling, 2011).
Thomas Cook uses Google, Facebook, Twitter and Instagram to interact with people and provide
information about firm and its services.
Internet Websites- Under this, there is a website of Thomas company which is operated
through tour operators in order to evaluate the attractive places which are according to
consumers.
It has been determined that online brochure consists necessary information related to
destination places.
3.3 Suitability of different methods of distribution
There are various options present which are helpful in developing goods or services to the
firm. Various facilities are chosen through Thomas Cook Group given below:
Direct sale- It is a necessary part of business which help in making business successful
and more effective. It refer to selling of all facilities in a direct manner without assist of the
intermediary like mail and online order, organising and also monitoring the visit. With the
evaluation as well as getting comment from tourists will help business entity in changing the
atmosphere of marketing accordingly.
Partner- When two or more than two persons are working together for attaining single
objective then it is a partnership (Tigu and Calaretu, 2013). Under this, tour operator has some
concern with the most popular attraction places, hotels and tour operators all working together
for providing all kinds of facilities to tourists.
Opaque Distribution: It determine as selling process which includes whole benefits that
provides services at minimum cost to consumers through business sellers. The real marketer of
facilities do not understand because consumers are valuable for an organisation.
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TASK 4
4.1 Strategic decisions made by different types of tour operator
Strategic decisions are decisions made for longer period of time made by top
management of company. They can affect the direction of company. They are complicated in
nature and hence deal with firm's tasks. Strategic decisions are described below:
Pricing strategy: These strategies are created by firm so that they can increase their profits and
can increase the market share (Evans, Stonehouse and Campbell,2012). These are also developed
so that no new entrant can enter in market place and thus they can easily enhance their market
share. Tour operators charges low rate from all users so that they can gain more users in less
time.
Segmentation: It is process which divide whole population on basis of certain
characteristics. This includes lifestyles, demographic and interest of users. Main objective is to
find profitable segments. Tour operators divide population on basis of income,behaviour ,age,sex
and other elements.
Positioning: It creates unique strategy for all users. People are divided into economy and
business class. Business class seat can be occupied by high class family and economy seat can be
taken by middle age family.
Promotional strategy: Tour operator can use strong promotional strategies such as
advertising and online sites to protect their tour packages. Through this they an attract many
users in less time. Hence they can earn more revenues and thus they can give strong competition
to other firms.
4.2 Tactical decisions that could be taken by a selected tour operator
It refers to whole judgement which supports the tourism sector in context to chose the
better techniques. It helps business firm to generate more profit and attain the long term
objectives. Tactical judgements are taken through top management in addition to develop daily
functions and operations of business.
 Under this short term policies are formulated through tour operators which helps them to
change and also develop effective strategy for produce services and products in a better
manner (Hoyos, Morales and Akhavan-Tabatabaei, 2015). There are different kinds of
consumers so for them firm develop various policies through Thomas which are
concerned to selecting, adopting different costs etc.
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 Some of the additional facilities are provided through tour operators of Thom,as such as
giving tourist guide to visitors so that they can get whole information about those places
which are visiting.
 In addition to this, there are different other strategies are adopted through tour operators
such as interact with consumers through calling, e- mail and many other different
methods. With the help of these all methods firm can take feedbacks from them and also
gain their trust as well as loyalty.
CONCLUSION
It has been concluded from above given that travel and tourism company provides many
advantages to people and also give its contribution an economy of United Kingdom country. The
recent and current trends in this sector are effective or profitable for the tour operating company
like Thomas Cook Group Plc. Which provides its services in all over the world. Under given
report studied about the suitability of the alternatives to traditional brochure for various kinds of
tour operators. Strategic decision which are made through different kinds of tour operators also
discussed.
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REFERENCES
Books & Journals
Barratt, M., Choi, T.Y. and Li, M., 2011. Qualitative case studies in operations management:
Trends, research outcomes, and future research implications. Journal of Operations
Management. 29(4). pp.329-342.
Cook, R. A., Hsu, C. H. and Marqua, J. J., 2014. Tourism: the business of hospitality and travel.
USA: Pearson.
Dietz, D. C., 2011. Practical scheduling for call center operations. Omega. 39(5). pp.550-557.
Evans, N., Stonehouse, G. and Campbell, D., 2012. Strategic management for travel and
tourism. Taylor & Francis.
Grant, D. B., Wong, C. Y. and Trautrims, A., 2017. Sustainable logistics and supply chain
management: principles and practices for sustainable operations and management.
Kogan Page Publishers.
Hoyos, M. C., Morales, R. S. and Akhavan-Tabatabaei, R., 2015. OR models with stochastic
components in disaster operations management: A literature survey. Computers &
Industrial Engineering. 82. pp.183-197.
Kerzner, H., 2013. Project management: a systems approach to planning, scheduling, and
controlling. John Wiley & Sons.
Lenahan, T., 2011. Turnaround, shutdown and outage management: Effective planning and step-
by-step execution of planned maintenance operations. Butterworth-Heinemann.
Martinez, A. J. P., Stapleton, O. and Van Wassenhove, L. N., 2011. Field vehicle fleet
management in humanitarian operations: a case-based approach. Journal of Operations
Management. 29(5). pp.404-421.
Moutinho, L. ed., 2011. Strategic management in tourism. Cabi.
Naji-Azimi, Z. and et. al., 2012. A covering tour approach to the location of satellite distribution
centers to supply humanitarian aid. European Journal of Operational Research.
222(3).pp.596-605.
Robinson, P., Heitmann, S. and Dieke, P. U. eds., 2011. Research themes for tourism. CABI.
Scherrer, P., Smith, A. J. and Dowling, R. K., 2011. Visitor management practices and
operational sustainability: Expedition cruising in the Kimberley, Australia. Tourism
Management. 32(5). pp.1218-1222.
Tigu, G. and Calaretu, B., 2013. Supply chain management performance in tourism continental
hotels chain case. Amfiteatru economic. 15(33). p.103.
Online
Tour Operations Management. 2014. [Online]. Available Through: <http://somo.co.ke/bachelor-
of-travel-and-tour-operations-management-at-moi-university-sm2-493.html> .
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