Tour Operation and Management Analysis for Trailfinders Ltd

This report provides a comprehensive analysis of tour operation and management, focusing on the case of Trailfinders Ltd. It begins by examining the impact of current trends, such as globalization and technological advancements, on the tour operator industry. The report then delves into the stages and timescales involved in developing holiday packages, including research, itinerary development, supplier negotiation, costing, and brochure production. Different methods of contracting various elements of a holiday, such as transportation, accommodation, and tourist guides, are also discussed. The report further evaluates the planning decisions made in designing a brochure, assessing alternatives to traditional brochures and recommending appropriate distribution methods. Finally, it analyzes strategic and tactical decision-making processes within the tour operator context, including pricing strategies and the impact of factors affecting these decisions. The report concludes with a summary of findings and recommendations for effective tour operation management.

TOUR OPERATION AND
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Analysing the effects of current and recent trends and development on tour operator
industry...................................................................................................................................1
TASK 2............................................................................................................................................2
2.1 Stages and timescales involved in developing holidays...................................................2
2.2 Different methods of contracting various elements and various types of tour operator. 4
2.3 Selling price of a holiday package....................................................................................5
TASK 3............................................................................................................................................5
3.1 Evaluating the planning decision taken for designing of a selected brochure.................5
3.2 Assessing the suitability of alternatives to a traditional brochure for different types of tour
operators and recommending the most appropriate for tour package....................................6
3.3 Evaluate the suitability of different methods of distribution to sell a holiday for different
tour operators and recommend the most appropriate one......................................................8
TASK 4............................................................................................................................................9
4.1 Evaluate strategic decisions made by different tour operators.........................................9
4.2 Compare the factors affecting tactical decision making for selected tour operator in
different situations................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
The effective management of tour operations will play a very deep and significant role in
handling of business operations and activities that will help in an effective growth. It also
supports a better development of business operations and actions which will help in suitable rise
in meeting of business requirements and activities in a better and significant manner (White,
2016). For the report, Trailfinders Ltd is been taken as organisation of context. It is a UK based
business entity, working as a tour operator firm. It will cover the latest and current trends in
market that affect the performance and development of a tour operator firm (Shigenobu and
et.al., 2016). Different stages and timelines are been accessed, with different methods of
contracting for various components and the sales of a holiday plan will be carried out. Also, the
decision planning, alternatives to traditional brochures and proper recommendations are been
discussed. Various distribution methods are been taken in consideration and different sort of
strategic and tactical decision making is been discussed effectively
TASK 1
1.1 Analysing the effects of current and recent trends and development on tour operator industry.
In tour and travelling sector, the firms are been affected by many factors that affect their
performance and thus will affect revenue generation and thus will impact the growth of a firm
to a high extent. The firm will be impacted by many wider range of trends and operations that
will influence the performance of organisation to a greater extent (Zhou, 2015). Besides this,
the ongoing trends will also influence planning and decision making within a tour operator
organisation in an effective manner. Few of the current trends and development factors that
affect performance of business organisation to a high extent are as follows:
Globalisation: The
approach of having
global access will
support tour operator
firm to have an
exposure to audience
from all around the
world (Frankel and
Technological
advancement: The
latest and advanced
technologies that are
been used within the
business organisation
or a tour operator firm
will help in increasing
Customised services
and products: Many
tour operators like
Trailfinders Ltd will
offer the customers
with specific services
and holiday plans as
per needs and
Rise in the economic
viability: As
economic conditions
all over the world are
gradually improving to
a high level, this has
affected the
performance of a tour
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Gabriele, 2017). It has
not only helped the
tour operators to in
bide the practices that
affect its global
performance but also,
lead a firm to have a
good management of
business operations
and activities to a high
extent.
efficiency of a tour
service provider
organisation (Li and
et.al., 2017). This will
help in improving
accessibility and
communication and
thus, lead to a good
growth and
development of the
business organisation
to greater level.
requirements of their
customers. The
development of
specific products and
services that are been
offered according to
demands of a traveller
will help in improving
their satisfaction level
and good will with
tour operator.
operator firm in a deep
and significant
manner. This has
improved the
purchasing power of
people and affect the
growth and
development of a
business organisation
and actions to a greater
level (Filby, Stockin
and Scarpaci, 2015).
TASK 2
2.1 Stages and timescales involved in developing holidays.
A holiday package for Brussels goes with different stage and timescale. This group is of
42 students and has face some timescales and recommended stages. Theses stages are described
below:
1. Research: In this stage political, social, economic and climate factors identify travel
mechanism. These factors are assessed so that students worth sightseeing in Brussels,
accommodate hotels and their meals that would provide leisure to students. The climate of
Brussels also appreciate these students all the time. Economic and social condition should also
favourable according to the travelling conditions (Li and et.al., 2017).
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2. Tour itinerary development : In this stage complete summary of tour program is developed that
involves stating point and the place of destination where the students have to reside. Then
duration have to be decided and route is discussed through which the travelling will be done to
Brussels. Complete transportation, accommodation facilities will be decided and location will be
confirmed. This is relevant with the suggestions and recommendations of students. And complete
tour package is developed according to the interest level of them.
3. Negotiation with suppliers : This stage involves arrangements of contracts with vendors or
suppliers which includes various services related to tour. For example, supply of goods and
various other products needed at location in UK. Related terms and conditions are properly
discussed between the parties so that there are no further chances of confusion and approval is
made by them.
4. Costing of holiday packages : In this contract cost is determined and perfectly calculated which
includes cost of all amenities given by tour operator, charges of accommodation, expenses, cost
of meal, travel fare. This pricing is done during the tour duration of 6 days. Cost pricing strategy
is applied for the pricing of the tour.
5. Brochure Production : In this stage complete brochure of holiday package is developed. This
include all relevant and needed information of tour which are transferred to students. This
includes attractive location of Brussels, transportation facilities provided at different venues,
accommodation needed at hotels, cost of the tour with details, visitor's attraction, luggage and
other things that have to be carried. This would require planning and pre-determination of
designing.
6. Administrative staff : For effective and smooth organisation of tour, some specific duties are
assigned to administrative staff. This leads to safe and secure operation with students. All
responsibilities and roles of various staff members are decided in advance so that further risks can
be avoided while undertaking operations during tasks. Thus, administrative staff plays an
important role in operating a tour for students. It ensures their safety and wellness to greater
extent.
7. Feedback : This stage involves review of holiday packages and getting suggestions, comments,
feedback from the students about the tour prepared so that possible changes and improvements
can be made to avoid obstacles during travelling. On the basis of these stages packages are
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monitored and essential decisions are taken to make holiday package more attractive and cost-
effective (Filby, Stockin and Scarpaci, 2015).
2.2 Different methods of contracting various elements and various types of tour operator
There are various types of tour operator namely Mass Market Tour, Specialist, Outbound,
Inbound, Domestic, Direct sell, Retail and Wholesale tour operator. Mass market tour operator
has interest in a particular geographical area. Outbound tour operator take people of their own
nation. Inbound tour operator take interest in foreign people and deliver local assistance.
Domestic tour operator repeat trips and are also called as resident operator. Direct sell tour
operator approach customers through travel agents. Retail tour operators sell packages for
commission from 10% to 15%. Wholesale tour operator sell goods through retail distribution
channel. There are various components of holiday that contracts that are discussed below:
Transportation: Local transport service provider of Brussels should be planned according to the
contract. Various other locations and sightseeing are also planned that must be signed in the
agreement by the parties during 6 days and 5 nights. Parking, toll charges and fixed payment of
transporter related to its fuel and driver is made (Zhou, 2015).
Accommodation Facilities: Variable contract made with students is the most suitable for
accommodation amenities provided to them in Brussels. Location will vary because they will
travel at different places and will not stay during their journey. There will be a need of separate
contracts with different hotels that will plan their sightseeing.
Meals: Supply of food according to the location will be different so fixed contract will not be
helpful for them. Therefore, contract with different vendors is required for the supply of food.
This would fulfil their need and students will taste different varieties and delicacies. It will also
give them chance to observe different culture and meal of UK. There would be proper
management of accommodation and meal through contracts at different places (Shigenobu and
et.al., 2016).
Tourist guide : Guide plays an important role while travelling. Contracting with guide is a fixed
contract method because during travelling this person will travel along with students and show
correct directions, locations and will help in exploring sceneries at desired place. Guide takes a
fixed amount of payment which is included in the expense of holiday package. All the places are
pre-decided by him and he describes these places after reaching there. More places will not be
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visited by the guide as all the necessary locations have already decided by him in from the
brochure and accordingly payment will be made to him.
2.3 Selling price of a holiday package
S. No. Details of Holiday
Packages
Individual's selling
price
Total amount
1 45 seater luxury coach £7,350.00 £7,350.00
2 Twin room with
breakfast
£92.00 92*45= £4140
3 Local tour guide €1020 £1,020.00
4 Visitors attraction €52 52*45= £2340
5 Total cost £14,850.00
6 Administrative and
selling cost and profit
margin @25%
£3,712.50 £37,712.50
7 Spot exchange rate £1.12 £1.12
8 Selling price £18,770.40
--
Selling cost is calculated on the basis of costs of tour guide, place of visitor's attraction and
breakfast of students. Then profit margin of 25% is also added into it. Room is shared by twin
people.
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TASK 3
3.1 Evaluating the planning decision taken for designing of a selected brochure
A brochure plays an important and crucial role in handling of tour and travels related
operations and actions or activities, that will help in improving their performance to greater
extent. A brochure is a form of document that consists of information about the holiday, services
and brochure and their duration for customers (Caber and Albayrak, 2016). Further, it will help
an organisation to improve their performance and get a proper insight of traveller’s needs and
demands. This may be in a traditional paper format but with passage of time and advancement of
technology, they can be available in the form of electronic or custom made brochures. While
making a brochure, certain decision making measures and factors are taken in consideration.
Some major elements that taken in thought process for the development of a brochure are as
follows:
 Time scale: This involves the major selection of time periods and activities that will help
in setting up and planning holidays and tours. This will help in increasing the knowledge
and insight of customers towards the services that are been offered by a tour operator. It
plays an important role in planning of holidays and making a travelling plan.
 Target market: Company will be developing the brochure in accordance with its target
market. This will help organisation to handle business operations and activities to a
greater extent and thus, will support in effective rise and growth in tour management
operations that will help the firm to increase its efficiency to a larger scale. Besides this,
it will help in improving revenue generation of the tour operator firm (Cetin and Yarcan,
2017).
 Budgeting: The assessment of financial resources is very important in development and
drafting of a brochure for their customers. The monetary resources that will help in
improving functionality will support a good rise in capabilities and actions which will
support in improving performance of business organisation to a greater extent. Besides
this, the high amount of budget that will be laid by Trailfinders Ltd on development of its
brochure, the more effective will be chances of growth and development it has.
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3.2 Assessing the suitability of alternatives to a traditional brochure for different types of tour
operators and recommending the most appropriate for tour package
The paper made traditional brochures or catalogues have been beneficial and supportive
for good growth and development of business organisation as well as support in generating a
good insight and rise in operations of tour operator activities of tour operator firm
(Tirasattayapitak, Chaiyasain and Beeton, 2015). This will be beneficial for a travelling service
provider firm to have proper knowledge of business operations and thus, take a good growth and
rise in effectiveness of a business firm. A tour operator firm like Trailfinders Ltd will take these
factors into effective consideration for gaining high growth and development of a tour and
travelling service provider entity in an effective way.
Some major measures that are been taken in consideration for their travellers are as
follows:
 Email brochure: this consist of a development of a brochure in the format of an email
attachment (Tay And et.al., 2016). This will include the development of the business
organisation and thus will help in good growth and development of the business
operations in an effective and significant manner. Other than this, an email brochure can
be customised and developed as per the needs of a traveller or customer of travel and
tourism firm. This tailor made approach will help the firm to improve the performance of
an organisation. The brochure is been emailed to a customer as per his requirements.
 Online brochure: this is the soft copy or digital version of a traditional brochure that is
been saved and stored within the systems of the company. This can be mailed as an
attachment or can be virtually presented to a customer in order to provide him with
proper ideas about the product or services that are been offered by the tour operator to its
customers. The online brochure can also be modified and uploaded on a tour operators
website that will help the organisation to increase its revenue and thus gain a good market
share and customer base (Ganor, 2017).
 Multimedia brochure: the multimedia brochure is the form of document or information
that incorporates a greater range of multimedia tools and activities to transfer the
information and details of a holiday farm which will support a good rise in effective
planning and decision making of a business entity in an effective and better way. A tour
operator firm like Trailfinder Ltd consider this format of brochure which will help in
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increasing the potential of a travel and tourism firm in an effective way. However, it is a
costly approach of brochure development.
As per the operations of Trailfinders Ltd, the option of using Email brochure or online
format is much beneficial in order to communicate and aware them about the product range and
services of organisation in a better way.
3.3 Evaluate the suitability of different methods of distribution to sell a holiday for different tour
operators and recommend the most appropriate one.
In order to meet customers needs and demands, and generate a decent amount of revenue
or returns, the tour operator firms like Trailfinders Ltd will take in consideration an effective
holiday or service distribution plan. This plan or schedule which is been developed within the
tour operator firm will help the firm to meet the operational requirements of the organisation in a
better way. This will help in improving the scope of a travel and tourism service provider entity
and help an organisation to cater many customers, in an effective way. Other than this, it will
help the organisation to perform a self assessment and increase the quality of their products and
services (Shyju and Lama, 2015). Some major distribution methods that will be taken in
consideration by Trailfinder Ltd to meet customers needs and demands are as follows:
 Over the phone booking: the cited tour operator entity will look after the measures to
improve the performance of the organisation in a better way. The customer can just make
a phone call and get the details related to the product or services offered by a firm. If he
finds it satisfactory, he can proceed to get the tickets or the service booked. This is one of
the most convenient and easily accessible method to get the product or services that are
been offered by a tour operator firm (Lück, 2016).
 Online selling: the organisation will look after the measures of selling its products and
services in an effective and significant manner. The effective use of internet to promote
the sales of products by a tour operator firm like Trailfinder Ltd will help in improving
the performance of organisation to include within the brochure as well as to get the
suitable idea about increase in quality of product and services and meet their needs and
demands. The firm can opt the option of selling the tour tickets by te means of mobile
app or interactive online website.
 Using the travel agents: this is a most popular approach which is been carried out by the
tour operator firms like Trailfinder Ltd. The travel agents will access the needs and
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demands of a traveller or a customer. They will work with a service provider and will
look after the fulfilment of a buyers need from his arrival to departure, including,
transportation, meals, accommodation etc. in return to their services, they get commission
from the tour operator firms (Belady And et.al., Microsoft Corp, 2014).
According to the scale and operations of Trailfinder Ltd, the option of using a travel
agent or over the phone booking will be beneficial that will help the organisation to improve
their performance and meet customers needs and demands.
TASK 4
4.1 Evaluate strategic decisions made by different tour operators
Various strategic decisions are been taken in consideration by the operations that will
help in improving the quality of services and thus will help in good rise in capabilities and
actions that will help in suitable rise in business operations and actions performed by a tour
operator firm like Trailfinders Ltd. The proper decision making will help the organisation to
improve the performance and increase the quality of services that are been taken in consideration
by cited business entity (Haque, Ahmed and Razak, 2017). This will help the organisation to
carry out the operations and meet the business operations to be followed by the cited business
organisation in an effective manner. The company will look after choosing of the best strategy to
manage its work. Some major strategic measures that are been taken in consideration are as
follows:
 Demand forecasting: it is an approach that is been followed within a firm in order to
identify and handle the demands or needs of their customers or travellers in an effective
and significant manner. The assessment of demand will help the tourism service provider
to take appropriate measures in order to increase its business scale and scope. This will
help the cited business firm to develop and plan to offer their products and services as per
the requirements. It will be also beneficial for carrying out the demand and supply chain
within a business entity.
 Market segmentation: it is a suitable approach in case a tour operator firm has limited
amount of sources. It will help the firm to cater a good variety of customers and offer
them the product or service just according to their needs and demands. It involves the
effective assessment of a budget that will support a good rise in handling of business
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activities and operations in a very effective and significant manner. It improves customer
satisfaction level (Page, 2014).
 Risk management: It is a very important strategy that will help the firm to manage their
business operations and actions. Risk like failure of market or product, adverse impact of
internal or external environmental elements and increase in competition are required to be
managed and handled with effective strategies in order to maintain their brand image or
operational efficiency.
4.2 Compare the factors affecting tactical decision making for selected tour operator in different
situations.
The tactical decision making will be a beneficial approach that will help the organisation
to improve the quality of services and thus will affect the execution of various business activities
and operations by the business entity in an effective and significant manner (Graci and Dodds,
2015). A tour operator firm have to handle different sort of its business related operations like
transportation, catering food to travellers, managing their accommodation etc, in order to run
their decision effectively. Other than this, it will help in maintaining a healthy relation with their
employees and stake holders. Some major factors that are been taken in consideration are as
follows:
 Information and communication technology: It helps in carrying out the business
operations that are related to tour operations and need or activities and operations to meet
customers need or demands. They make the decision making more effective.
 Regulatory framework: a tour operator firm will look after a proper following of
business activities, depending on a legal obligation in an effective way (Shirai and Ono,
2017).
 International exchange rates: the currency exchange rates that are been prevailing in
international market will help the business organisation to handle the operations and
business activities with high effectiveness.
CONCLUSION
On the basis of report, this can be concluded that the effective handling of the business
operations and activities will help the organisation to handle its business activities and operations
in an effective and significant manner. A tour operator entity like Trailfinder will look after the
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