Analysis of Thomas Cook's Tour Operation Management Strategies

This report examines tour operation management, using Thomas Cook as a case study. It explores recent trends in the industry, including online services and popular destinations. The report details the stages of holiday development, from market research to contracting, and includes a sample itinerary and cost calculations. Furthermore, it analyzes brochure design and alternative communication methods, along with non-traditional distribution methods. The report also addresses emerging trends in UK tour operations, compares tactical and strategic decisions, and concludes with a summary of key findings.

Tour Operation Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1.1 Recent trends and development in tour operations sectors..................................................1
TASK 2............................................................................................................................................2
P2.1 Stages and timescales involved in developing holidays......................................................2
P2.2 The suitability of different methods of contracting for different component of the holiday
and different types of tour operator.............................................................................................3
P2.3 Calculation of selling price of a holiday..............................................................................4
TASK 3............................................................................................................................................5
P3.1 Planning and designing of brochure....................................................................................5
P3.2 Alternative method of communication and promotion of brochure....................................7
P3.3 Non-traditional method of distribution that used to sell holiday package for different
types of tour operators.................................................................................................................8
TASK 4............................................................................................................................................9
4.1 Emerging trends in UK tour operations sectors and various responses by tour operators....9
4.2 Comparison between tactical and strategic decision in tour operation sector.......................9
Conclusion.....................................................................................................................................10
REFERENCE.................................................................................................................................11

INTRODUCTION
Managing travel and tour operation in an organisation is the difficult task for an
organisation. Under this, organisation has to provide detail information of holiday tour package
to customers. This present report is based on travel and tour operation management. Chosen
organisation under this is Thomas Cook orgnisation. Under this report recent trend and
development in tour operation industry is to be discussed. An itinerary for heritage plus wildlife
and beach holidays is to be explained and different component of holiday for different types of
tour operator and cost of component of the package selling price of holidays is to be explained in
this report. Further, in this report, it is to be explained about designing and planning of broacher
and suggestion of alternative method is to be analysed with non-traditional methods of
distribution. Further, in this report emerging trends in UK tour operation and their responses is to
be analysed and also difference is provided between tactical and strategic decision.
TASK 1
P1.1 Recent trends and development in tour operations sectors
It is world where people prefer to do travelling. Therefore, travel and tour industry have
faced tremendous growth and also it changing at rapid speed with the changing needs of
customers and their preferences ( Travel trends that will drive the tourism industry, 2018).
Recent changes in tour and travel industry is related to food facility and also to plan about trip.
Similarly, other recent changes in this industry are online delivering of services and some
companies have started to provide that services from their own organisation. Other technologies
which are recent development in tour operation is regarding online booking under which
companies are providing detail information of holidays packages by which individual can book
their trip from home only and also able to do payment easily from their home only. Thomas cook
& son group is providing details of various destination in their sites by which people will bale to
plan their holiday package from home only. They provided all the details of destination which
contain details of culture of the city and physical significance also in their websites. Recent
development of sites provides all the information of the city which is the major change in tour
operation sector. (Hoyos and et.al.,2015.)
Another development in this sector is that company also providing online booking of
flights, trains and buses in which travellers want to travel. This development also proves better
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for tour sector in which peoples are using their websites in booking of any travel convenience. In
that Sites Company also provided online booking of hotels for travellers in their destination.
Another development in tour sector is to provide last minute booking for passengers from home
only. This development of the tour sector is also grown tremendously which increase overall
profitability of organisation. Popular destinations in these sectors are wildlife attraction which
travellers most get attracted which established in south Africa. Popular destination of South
Africa includes Huilo-Huilo Biological reserves, Galapagos Islands etc. another popular
destination for travellers will include tropical destination in Maldives where natural beauty of
beach attracts customers a lot.
Recent development provides growth but it also leads to some problems which faced by
tour sectors. Major effect is that sometimes in online booking mismanagement has happened
with customer's booking seat and with management booking seats. Another problem is they face
in giving detail information of holiday tour packages. Customers want detail information and
sometimes company will not able to provide that detail information by which customers create
issues in their bookings. There are many specific destinations by which visitors may attract in
company such destinations may include Cutty Sark, Royal Obervatory, heritage of London, etc.
wildlife attar cations in South America may also be seen as effective to visit.
TASK 2
P2.1 Stages and timescales involved in developing holidays
There are many types of various stages which involved for the development of holidays.
This stage helps managers in developing quality of services in their organisation. To provide
quality of packages to customers Thomas Cook adopts various methods in their organisation
(Camilleri, 2018). Different stages to visit destination are as follows-
Market research- To identify customers taste and preference of the business market,
market research is used by managers of the organisation to develop strategies which attract more
customers in organisation. To develop holiday package market research is the most important
task for the tour and tourism sector.
Planning and Scheduling- after doing successful market research, planning and
scheduling is the another method develop by organisation. Planning of holiday package is
done according to the taste of customers to business market. Under scheduling,
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organisation will develop holiday package according to schedule preference of the
customer.
Forecasting- to develop forecasting of holiday package, organisation manager will now
research the factor which helps them to develop holiday package in their business. This
forecasting will do to measure according to climate and season of the destination place. It
developed with the accordance of the seasons of the destination(Holland and Leslie 2017).
Contracting-organisation will offer their effective services to customers and will also
forecast the holiday package as per the desire of the customer. To attract customers,
managers of the organisation will now offer different services to customers which include
Cab facility, restaurant facility etc.
Itinerary in developing holiday package of Thomas Cook organisation
24.11.2018
Time scale for sightseeing tour (from London, UK to South America)
Nature of tour: sightseeing tour
Tour location: Brazil, South America
Date of commencement of tour: 05.01.2019
Duration of tour: 8 days
Number of individual taking tour: 20
Nature of tourists: students group
Places to visit: Ipanema Beach. Rio de Janerio, Carilo Carilo, Baia Do Sancho. Fernando
DE Noronha.
Tour cost: £150 (including air-fare, lodging, breakfast, dinner, lunch and sight-seeing)
If any changes in this holiday package developed then this will be informed to
customer before 15 days of the commencement of tour.
P2.2 The suitability of different methods of contracting for different component of the holiday
and different types of tour operator
Contracting helps client of the organisation to save unnecessary cost and also to develop their
demand from organisation and will able to get effective service quality according to their desires.
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This contracting also helps organisation to attract customers in providing services which they
expect from organisation(Giaoutzi, 2017). Thomas Cook has adopted two different methods:
 Sales only contract- Under this organisation will provide effective holiday package
which is sightseeing tour (from London, UK to South America) in accordance with the
customers. This contract generally provides by tour operator in the peak season of the
destination by which company will able to improve their sales. Thomas Cook pays for
actual services which is consumed by customers and return it to vendors of the
organisation.
 Fixed contracts- This method is used by organisation to deliver the best quality of
services to customers of the organisation. By this contract company will able to satisfy
customer as per their desires. Thomas Cook has developed contract with vendors which is
known to be small contracts and which also includes Cab faculties, catering etc.
These are different methods of contracting which developed by Thomas Cook organisation to
satisfy customer in providing effective holiday packages which is sightseeing tour (from
London, UK to South America) as per their desire(Robinson and et.al., 2016).
P2.3 Calculation of selling price of a holiday
A group of students are visiting that is from London, UK to South America Their visit in
city is not more than 8 days and number of students who are visiting destination are 45. To
measure tour expense, it is measured in Euro and Pound. To calculate this expense, exchange
rate will be considered as 1 Euro=0.85 pounds.
In this tour of students room will be shared between two students. One room is
allotted between sharing of two students and it will be calculated as 45/2= 23 rooms.
Cost of one room will equal to 60 Euro= 60*.85= £51
Cost of 23 rooms for 8 days will be = 23*8*51=£9384
Cost of hotel for one person will equal to 14 Euro which is equal to 14*.85=£11.90
Therefore, cost of hotel for 45 students for 8 days= 45*8*11.90=£4284
Selling price of holiday in tabular form
Expense Type cost
Luxury Coach 4400
Local Tour guide 1000
Hotel cost 9384
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Cost for hotel 4284
Total expense £19068
Profit margin is 20% i.e. 19068*20%= 3813.6
Therefore, selling price of package would be= 19068+3813.6= £22881.6
Thus selling price for package for 45 students would be £22881.6
Therefore, selling price of one person would be= 22881.6/45= £508.48
TASK 3
P3.1 Planning and designing of brochure
Brochure is the tool which is used by Thomas
Cook organisation to promote their travel
services(Andersen and et.al., 2018).
Developing brochure helps organisation to
promote their travel services in front of large
number of travellers and also to capture
attention of large number of customers in
organisation. Brochure is the method which
help organisation to develop long lasting
impact on customers which helps them to
develop loyalty of customer in organisation. It
is also known as cost effective tools which
attracts more and more customers in the
organisation.
For example Thomas Cook has
developed an effective holiday package
brochure for the couples to enjoy valentines
day. They have provided trip for 15 days in
which three destinations is provided by
Brochure is needs to so effective that it helps
company to attract more and more customers
in the organisation. Designing of brochure is
must be depend on the seasons of the
destination or the coming festivals in the
particular city on which holiday package has
been developed by organisation. Promotion of
brochure is needs to be so effective that
company will able to attract new customers as
well as their existing customers as well.
Different holiday package needs to develop
which is for different purpose(Buchanan,2015).
It may include any educational tour, family
tour, couple tour and many more. In planning
and designing brochure company needs to
develop proper research of factors which helps
them to generate effective package for their
organisation. Developing brochure helps
organisation to promote their travel services in
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Thomas Cook which includes London, South
America and Maldives. Under this brochure
they have provided full luxurious amenities
which includes timely meal, luxury
accommodation facility, also air trip and
transport facility.
front of large number of travellers and also to
capture attention of large number of customers
in organisation. Brochure is the method which
help organisation to develop long lasting
impact on customers and to develop loyal
customer base in organisation
Particulars of Brochure
Before developing brochure company have known with brand personality which
developed mutual trust that bright and cheerful brochure must will attract visitors in their
company. Certain elements to be include while developing these that includes- define ideal
customers, develop message to attract visitors, determine success metrics, development of
budget. These elements help company to develop effective brochure.
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P3.2 Alternative method of communication and promotion of brochure
To promote company's brochure, managers have developed effective communication
with the visitors of the company. It is an effective method for company to attract their existing
customers for the holiday package they develop. To develop communication process Thomas
Cook used social networking sites by which they directly communicate with the customers. To
offer their trips company have developed their sites on Facebook, twitter in which they easily
able to communicate with customers directly.
Company also used e-mail marketing strategy and direct messaging strategy by which
they will able to connect customers directly and will able to offer their package and to promote
their holiday package among them(Course, 2015). This communication process of company also
helps them to target particular customer which they think that fits for particular holiday package.
Another method by which Thomas Cook will able to promote their package is by
developing their sites in play store of Android or IOS phones by which they will able to offer and
promote their package which helps them to attract more and more customers in the market. This
effective communication process helps organisation to create awareness in front of customers
regarding their holiday packages(Shepherd and Rudd, 2014.).
Company uses non-traditional methods in which promoting with social sites and in
official website in effective process but to also provide hard copy in outlets helps company to
attract more and more customers in business market. In their websites company needs to develop
effective offers and discounts which helps organisation to attract customer to try their holiday
package of destination. Non-traditional method of communication helps Thomas Cook
organisation to enhance their business growth to make company strong among their competitors
of business market.
Non traditional method or traditional method of communication process will only help
company when they develop that strong communication between customers so that they will able
to increase overall performance and profitability of the organisation. Communication and the
promotion is much important tools for the tour operator organisation for developing loyal
customer base. By developing loyalty, organisation will able to increase their overall
performance and profitability. Developing strong communication will overall helps in knowing

what consumers want from an organisation. Promotion helps in attracting customers, by
satisfying their needs and expectations.
P3.3 Non-traditional method of distribution that used to sell holiday package for different types
of tour operators
To sell holiday package, company used different types of non-traditional method to sell
them in marketplace. These methods may include direct mail, social sites, and travel agencies by
which company will be able to sell their holiday packages. These are as follows-
 e-mail
This method is developed by organisation to communicate directly to the customers of the
business market. Under this method company choose to communicate with customer directly via
e-mail process. In this company provide information about their holiday package directly to
customers which helps them to attract customers to use company services. Direct mail is the
effective way of communication by which company will be able to provide information
regarding effective tour packages(Timothy, 2018). Company also able to send copy of their
holiday packages to buyer's mail which provide detail information about the holiday package
services of the organisation.
 Social sites
This is the another method of promoting holiday packages among customers which helps to
increase large numbers of buyers in organisation. In this digital world people are more active in
their social sites which helps company to develop direct communication with the customer's of
the business market. Facebook, Twitters are platform in which company will able to develop
effective information of their services which helps them to attract more and more customers in
the organisation.
 Web- sties
This is the most effective non-tradition method under which different tour operators are stay
connected with their customers through web-sites of organisation. These web-sites is done
through internet or through social sites. Web-sites helps organisation to promote their holiday
package to travelling whether it is through plane, bus or train (Monaco, 2018). The more creative
is the web-site of company, more visitors will get attracted in the company.

These are some non-tradition methods which travel company used to increase their sell of
holiday package. By developing these methods company will able to attract more customers and
will also able to increase overall performance and profitability of the company. It helps them to
stay connected with customers directly so that they will able to promote their services in front of
customers of business market.
TASK 4
4.1 Emerging trends in UK tour operations sectors and various responses by tour operators
There is lot of competition which Thomas Cook has faced in their tour sector. Therefore,
company needs to develop effective strategies by which they will able to face competition in this
business market. Different competitors are providing tough competition whether it is in offering
discounts or to developed effective offer for package (Holmes,2018). Tour operators has to do
research on visitor’s preferences by which they will able to factors which required to modified in
the company.
Another issue faced by Thomas Cook organisation is the new technology advancement in
organisation. Therefore, company have faced uncontrollable issues like political and legals
factors of the macro environment. Company also has to developed changing customers demand
by which they will able to attract visitors in business market.
Company has developed policies in which they will able to attract younger populations
of the business market. They developed an effective holiday package to face competition from
their competitors of business market. To attract customers of like families and educational tour
they are developing effective tour holiday packages which helps them to increase their sales
volumes. They also started doing promotional activities in social media marketing by which they
will able to direct communicate with customers. In last five years, Thomas Cook has developed
many strategic decisions which helps them in improving their performance. Such factors are
strong customer demand delivery, customers innovations, significant growth in Turkey and
North Africa helps company in achieving sustainable growth. They also have good strategic
progress in their own brand hotels and resorts. Company has launched hotel fund joint venture
with investment company.
New hotel concept such as Cook's club is also opened by the organisation. Casa Cook
hotel is also opened by the company which is dedicated to the families of the society. Company