Tour Operations Management Report: LCB Tours Product Development

This report provides an overview of tour operations management, focusing on the key aspects of the industry, including the stages involved in holiday development, the different methods of contracting, and the calculation of the selling price of a holiday. The report begins with an introduction that highlights the role of tour operators in the travel and tourism sector. It then explores the various stages in developing a holiday, such as market research, planning, costing, and advertising. Different methods of contracting, like fixed and ad-hoc contracts, are also discussed. Furthermore, the report provides a detailed breakdown of the costs involved in creating a holiday package, including accommodation, transportation, and tour guide fees, and how to calculate the profit margin and the final selling price. The report concludes by emphasizing the importance of strategic decision-making and adaptability in the tour operations industry to sustain and grow the business.

TOUR OPERATIONS
MANAGEMENT

Table of content
 Introduction
 1.1 Evaluate effects of current and recent trends and developments on the
tour operations industry
 2.1 Assess the stages and timescales involved in developing holidays
 2.2 Suitability of different methods of contracting for different
components of the holiday and different types of tour operator
 2.3 Calculation of the selling price of a holiday

INTRODUCTION
 Tour management is concerned with tourism industry which provides
several services to tourist such as, hospitality services, holiday plans or
packages, etc.
 This sector is beneficial in sustaining and developing nation. Many
tourists and travellers visits several destinations by investing in tour
agency.

STAGES AND TIMESCALES INVOLVED IN
DEVELOPING HOLIDAYS
 There are some stages and timescales which are considered by company in developing holidays are as follows:
 Market research
 Planning and scheduling
 Contracting
 Costing the holiday
 Financial evaluation and pricing
 Creating the brochure
 Advertising:
 Operation and execution
 Developing a tour market plan
 Post tour management

DIFFERENT METHODS OF CONTRACTING
 Thus, some methods of contracting adopt by company are as follows:
 Fixed contract:
 Allocation
 Ad-hoc contract:

CALCULATION OF THE SELLING PRICE OF
A HOLIDAY
Details Price(in £)
Accommodation cost 9000
Transportation cost 11200
Charges of tour guide 945
Total cost 21145
Add: Profit margin @ 33% 6977.8
Sale price 28122.5

CONCLUSION
 In this report, it is analyzed that tour operation industry is a vast sector
which includes several aspects related with traveling and tours.
 It is important for these companies to implement better tools and tactics to
sustain their business.

REFERENCES
 Gibson, P., 2012. Cruise operations management: Hospitality
perspectives. Routledge.
 Newsome, D., Moore, S. A. and Dowling, R. K., 2012. Natural area
tourism: Ecology, impacts and management (Vol. 58). Channel view
publications.

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