Tour Operation Management Report: Trends, Contracts, and Thailand Trip

This report examines the tour operation management of a Thailand trip, likely for the travel agency Thomas Cook. It begins by discussing recent trends in the travel and tourism sector, such as technological advancements (mobile apps, virtual reality, e-commerce) and customer-centric approaches. The report outlines a two-week itinerary for Thailand, detailing destinations like Bangkok, Kanchanaburi, Ayutthaya, Khao Sok, and various beaches. It further analyzes different types of contracts used by tour operators, including sales-only and fixed contracts, and explores contracting methods like bed contracting (allocation) and opportunities for resale. The report provides a thorough overview of the processes involved in developing a holiday package, from market research to forecasting and contracting, highlighting how these elements contribute to the success of a tour operator. The report serves as a comprehensive analysis of tour operation management principles within the context of a specific travel plan, providing insights into industry practices and strategic decision-making.

TOUR
OPERATION
MANAGEMENT

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1................................................................................................................................................1
TASK 2............................................................................................................................................3
2.1................................................................................................................................................3
2.2................................................................................................................................................5
2.3................................................................................................................................................8
TASK 3............................................................................................................................................9
3.1................................................................................................................................................9
3.2..............................................................................................................................................10
3.3..............................................................................................................................................11
TASK 4..........................................................................................................................................12
4.1..............................................................................................................................................12
4.2..............................................................................................................................................14
CONCLUSION..............................................................................................................................15
REFERNCES.................................................................................................................................17

INTRODUCTION
Recent time is era of rapid development in travel and tourism sector. This industry is having
vital role in growth of country’s economy and stability. This is a segment which is generating
higher revenue as well as earnings for organisation. This assignment is based on checking recent
development in trends of expansion of business, types of contracts, kind of travel operators,
strategically decisions, valuation of tactical judgements, a suitable travel plan for some visitors,
Destination that is Thailand. Thomas Cook is a travel agency that is operating its business
operations in United Kingdom. This tour operator is taking a group for a trip to Thailand and that
is a heritage and adventure tour for visitors. Company is assigning a tour guide with visitors and
he could be any type like inbound, outbound or domestic travel agent (Gibson, 2012).
TASK 1
1.1
Travel and tourism sector is showing fastest growth because all latest trends and
development are covered in whole planning analysis. There are some latest trends and
developments that have vital impact on travel and tourism sector. When trend gets changed then
whole processing and pattern of working gets changed. Some basis trends are described below:
Technological Development: There are various opportunities that are been developed for making
a plan effective and enjoyable. Some remarkable changes are described below:
 Mobile Apps: Company launched its mobile application and now people can search and
can choose their holiday plan according to desire. Mobile phones applications are easy to
access and anybody can operate these apps from anywhere. Application gets updated as
time passes as per new plan along with photos and short videos of destination so that
everyone can make an idea about their happiness (Brown, Bessant and Lamming, 2013).
 Virtual Reality: it means when people take idea from photos and videos and make
judgement about their travel plan according to their perception which people made by
watching some relevant pictures and videos. Reality observed by pictures and video clips
are defined as virtual reality.
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Customer Centric: Present time is the era when companies are more concerned about taste and
preferences of their clients. Travel and tourism industry is all about where people want to go for
his holiday. In this section all tour operators are take some points into consideration like what is
income level of client, where he wants to go, how much convenience is required etc.
E-commerce Technology: Today’ world is an Internet place where everything is available even a
travel plan also. Here company use this emergence as a promotional tool or a service selling
platform or both (Robinson and et. al., 2016). Thomas Cook took this e-commerce technology as
promotional tool as well as selling platform. With the help of Internet company is selling its
various travel plan. Below are some distinct travel plans:
 Area wise Travel plan.
 Business Tours.
 Interim travel plan.
 Travel Plan statement.
Present assignment is based on Thomas Cook so detail of cruiser liners are belong to this
travel agency. There are some cruisers that is owned by some tour operator companies and
elaboration of this are stated below:
Cruiser Liners and Deal: This is a kind of break holidays that requires little research for
development. Visitors are preferred to visit Old World cruise experience which is a British
Seafaring tradition.
If person want to go on holiday with family instead of going alone than cruise line offers
some holidays with extra activities that must suit to family perspective.
Culture Buffs: These should be on lookout of tour operators that provide on-board lectures
related to destinations for getting most thing out of whole holiday package.
ADD ON Trends: This is a trend which allows a tour operator to provide some extra benefits
which is not mentioned in holiday package. It is a pattern that offers some extra beneficial points
and this tool is helpful in attracting wide number of custoemrs. For example, if food is not
included in travel package still operator provides breakfast or some beverages without any cost
of visitor then it is an extra benefit for client and it is called as Add Ons.
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TASK 2
2.1
A tour operator is a person who collects all information related to destination and how an
individual can reach there. After collecting all info then travel agent makes a travel plan and then
start fascinating clients towards his plan. So there is an itinerary for two weeks in Thailand.
The journey will begin with Bangkok and will be finished while enjoying superb beaches in
Thailand (Ronen, Pliskin and Pass, 2012). Following is the two days detailed itinerary for trip
Thailand:
Place Days Activities Date of reach
Bangkok 3 It is a mixture of
western and Thai
culture. Here most
beautiful thing to see is
temples and sunsets.
Along with this a
floating market is
another attraction of
this Bangkok section’s
trip. For e.g. Wat Arun
and Wat Saket tempels.
1st May 2018
Kanchanaburi 3 It is a place of rivers
and bridges. It is a kind
of heritage site. Main
attraction of this place
4th of May 2018
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is various museums for
which tourists come to
visit this place. For
instance River Kwai.
Ayutthaya 2 It comes in most
heritage site of
Thailand. This city is
known for its lots of
temples and vibrant
nature. It is an old city
that is preserving
culture of Thailand.
For e.g Wat Ratchabu,
Wat Mahathat etc.
7th of May 2018
Khao sok 2 It is a wildlife park and
actually made for
adventure lovers.
Visiting Khao Soak
National park for
adventure of wild life.
9th of May 2018
Sunny Beaches 4 There are so many
beaches in Thailand
like Ta Pho, Lamai,
Buffalo Bay beaches
etc.
11th of May 2018
Above is a travel plan that is made by tour operator of Thomas Cook and it is inclusion of all
expenditures like food and beverages that includes all food from breakfast to dinner along with
stay facilities. First of all tourist will be reached in Bangkok and then travel agent of Thomas
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Cook will receive them there and then let them visit all expected places of Bangkok (Chon and
Yu, 2012).
There are some stages that must be go through for developing a holiday package:
Market Research: This is done for identifying future opportunities of company like who
are really demanding holidays from their boring lives. This step usually took 15-20 days for
finishing entire research project.
Planning & Scheduling: In this section, all dates and government holidays are discussed
so that every visitor could enjoy more. This step takes approximately 24 to 30 days for
accomplishment of all necessary works.
Forecasting: This is a prediction of past and future activities that are consist of new
travel package. This is a record and prediction of current and future market trend. This section
takes 15-20 days for efficient prediction about latest trends and customer preferences.
Contracting – It is an effective way of carrying out the activities of tourism. In order to
raise the sales tour operators can take the assistance of distinct contracts that include distinct
services. Full package is made that is inclusive of what all will be provided to the clients and that
contract is signed by both parties. Tourists on the basis of the contract can claim to the travelling
agencies if all the inclusive facilities are not provided. (Evans, Stonehouse and Campbell, 2012).
With the help all the above discussed plans the sales volume of tourism activities can be
raised and hence profitability can be developed.
2.2
Thomas Cook is using different forms of contracting which are as follows:
 Sales Only Contract – Different elements which are actually essential for the tour
operations are included under this act. The choices of the service users are identified and
are made available to them. This system assists in raising the total volume of sales and
maximum advantage is achieved during the time when tour activities has maximum
demand in the market. Customer according to their previous experience makes his choice
of future demands of services (Evans, Stonehouse and Campbell, 2012). The range of
services which are used by the consumers are identified and valued and accordingly the
charges are charged to them. For instance, if booking for more rooms is done but all of
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them are not used than in that case the surplus booking is cancelled and returned to the
owners. (Medliked., 2016).
 Fixed Contract – There are different activities in the tourism sector which are not
required in the long run and it is not beneficial to make a separate department for same.
By outsourcing such actions much cost of the business can be saved and hence the profit
margins can be increased. The demand for specific service is kept in front of the small
vendors who are excel in their field. They are expected to give the same quality of service
as they promised to and in case any deviation is found action can be taken against same
and they can be asked for the penalty. Payments are made in installments or in the agreed
manner between the two parties involved. Services which are inclusive of this contract
are of accommodation, transport, catering etc.
There is some other type of contracting which are described as below:
Bed Contracting called Allocation: This can be understood by some following aspects which
are stated as follows:
On a sale or Return Basis: Thomas Cook gave a contract to a hotel on a per year sale
basis. For example a hotel is been hired by a tour operator and travel agent firm will buy a
certain number of rooms and services on per year basis. On the other hand if on the return basis
an other firm or travel agency is contracted then Thomas Cook is liable for providing set amount
of return to particular company.
Negotiation with Medium grade Hotels: To cater need of all type of clients, it is required
from tour operator that they should deal with moderate hoteliers so that all income class people
could buy facility of Thomas Cook tour operator while planning their travel plan. An adequate
price could be set for hotel rooms so that it could be convenient for all sort of visitors.
 Opportunities for Resale: It means when tour operator contracts with iother company for
a particular service and further it would have not been able in generating proper number
of clients for that particular facility then tour operator can resale their holding to other
travel agency's client on higher rates. This is a help in generation of profit for those
services that are not able in increasing demand of Thomas Cook.
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Risk Transferred to Hotelier: It means tour operator agency recommends a specific hotel
to their clients and if traveller goes there then further is a liability of hotel management and
travel agency is not responsible for any future inconvenience.
Hoteliers have Contracts with many other Tour Operators: It means, when a company is
not having any services then to retain clients with association; tour operator make contracts with
other companies who have required service. For example, if corporation does not provide service
like adventure trip on hills then travel agency set up a contract with that firm which provides this
facility to their clients.
Contracting Transportation: This term includes some aspects which are related to use of
charter plane. All aspects are described below:
Time Charter: It means when a plane is rented by Thomas Cook for a specific time scale
then it is called as time charter. This is more understood with one example like if company is
dealing with a client who wants luxury services and it includes charter plane but company can
not afford purchase and rent of plane then tour operator hires a charter plane for that particular
time period in which client will demand for that charter plane.
Whole Plane: It means when company is a large scale tour operator and have ability to
purchase charter plane to provide luxury services to clients. In context to Thomas Cook, this tour
operator have its own charter plane to serve best services to clients. In respect to this, Thomas
Cook is having their own airlines.
A Part Charter: When a company owns or rent some part like required number of seats for
coming clients or on regularity of visitors. A part charter means only a part of a charter plane is
acquired by tour operating agency. This type of holding is done by those travel firms whom not
have capacity to but whole charter plane.
From the above discussion this has been summarized that with the assistance of short
term contracts the tour operators are able to deliver quality services to its clients. range of
different quality packages can be made which cost according to the number of services involved
in it. It helps toor operators in marinating quality of their services and hence raise the satisfaction
level of customers. The tour operators take use of various modes through which they can attract
maximum customers to take the facilities of travelling agencies. (Jonesand, Robinson, 2012).
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2.3
The trip is planned for ten visitors for fourteen days and detailed statement of cost is
discussed below:
Type of Expenditures Total Expenses
Stay for 5 people 50000 Thai-Bhat
Food & Beverages 40000 Thai-Bhat
Fees of Locations (Approximately) 10000 Thai-Bhat
Transportation 60000 Thai-Bhat
Expected Tax rate @ 25% 40000 Thai-Bhat
Total 200000 Thai-Bhat
Calculation of Selling Price
Particulars Amount
Price 1000
Direct Costs
 Accommodations
 Air Seats (Inclusive of Tax)
 Transfer and Excursion etc.
 Agent's Commission
400
360
20
100
Total 880
Gross Margin 120
Indirect Costs
 Payroll Expenses
 Marketing
 Office Expenses
40
30
20
Total 90
Net Income
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 Trading Profit
 Interest on Deposits
30
10
Total 40
Above sale statement is based on summer sale basis and in this weather rate of overall
growth of travel plans goes on hike by approximately 60%. So above discussed analysis is a
travel plan cost that plan's itinerary was discussed in 2.1. Statement of cost includes all related
factors that must be taken into consideration for an efficient prediction.
Above is an approximate expenditure of plan for all people together and this can be
distributed in every member equally. So, here Two adults are sharing one room that is why room
cost was calculated as per allotment of total room to tourists and Thai-Bhat is currency of
Thailand.
Total expenditure is 200000 Thai-Bhat and per person cost is 200000/10 = 20000 Thai-Bhat.
TASK 3
3.1
There are some steps which should be included in design of brochure. Elaboration of these
brochure is discussed as beneath:
1. Design Brochure: - In this step a proper layout is defined that must be follow for making
a poster. Management require to create an attractive leaflet which specified information
about different varieties of items that are provided by firm. This helps them to attract
large number of customers and position enterprise higher than rival brands (Purohit and
et. al., 2013)
2. Take Photos: - These are to be used for making poster eye catching in the eyes of clients.
Members of organization require to add pictures of infrastructure and products to grab
attention of people and influence them to visit store and take their offerings.
3. Write a Copy: - A blueprint of brochure should be prepared to take guidance for future
activities. Marketing team require to construct layout of brochure and construct an
example to check whether it will be appropriate for firm to attract public. This also help
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company to provide assistance to staff members to deliver appropriate items to customers
(Dorman, Alpi and Chappell, 2013).
4. Determine Price: - An adequate pricing should be set so that it should be beneficial for
both company and client. Management require to set adequate rates for products in
according to value that competitors are charging. They require to determine prices on
basis of expenses that are incurred for producing products and profit margin (Murphy and
et. al., 2014).
3.2
In order to make the customer aware about the different facilities involved in particular
package it is of great importance that effective medium of advertisement is used so that the
choice of clients can be influenced. A brochure is a well print medium tool that can be used to
communicate with the clients about what all is inclusive in a particular package. It is important
that the designing and layout of same is attractive and clear so that customer can get a clear idea
of what all will be inclusive in the service provided by the travelling agency. Following
discussion will show how the range of brochures are helpful for different kind of tour operators.
(Luis, Dolinskaya and Smilowitz,2012).
 Email Brochure – This type of tour operators helps outbound tour operators to serve
customers with help of email that is a technological developed option. This heading
includes that various tour operators mail all details of vacation package to its customers
and make them aware about price and locations. It is a most easy and cheapest way to
publish services and make strong consumer base for their company. It is a most efficient
way of publishes servicing in marketplace for concerned industry (Guo and He, 2012).
 E-Brochure – It is a different way of publishing services in market and make purchaser
aware about services that are provided by corporation. E-Brochure is an easy and most
convenient way to make connection between association and its target buyers. E-
Brochure is attached with website of Thomas Cook and any consumer that visits
company site he or she will be able in viewing that brochure easily.
 Video Brochure – Most attractive way that gets attention of many clients and also
provides full description of travel plans that is video brochure that contains short and long
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