Tour Operation Management: Analysis of Trends, Strategies & Decisions

This report provides a comprehensive analysis of tour operation management, focusing on the effects of current trends and developments on the industry, using Trailfinder Ltd. as a case study. It assesses the stages and timescales involved in developing holidays, evaluates contracting methods for different components, and calculates holiday selling prices. The report also evaluates planning decisions for brochure design, assesses alternative promotional methods, and recommends suitable distribution strategies. Furthermore, it evaluates strategic decisions made by different tour operators and compares tactical decisions in various situations, offering insights into enhancing customer satisfaction, leveraging technology, and addressing climatic concerns within the tourism sector. This document is available on Desklib, a platform offering a wide array of study tools and resources for students.

Tour Operation Management

Table of Contents
Introduction......................................................................................................................................1
TASK 1............................................................................................................................................2
1.1Analyse the effects of current and recent trends and developments on the tour operator’s
industry [D1]................................................................................................................................2
TASK 2............................................................................................................................................4
2.1 Assess the stages and timescales involved in developing holidays[D2]...............................4
2.2 Evaluate the suitability of different methods of contracting for different components of the
holiday and different types of tour operator [M1].......................................................................7
2.3 Calculate the selling price of a holiday from given information below................................8
TASK 3............................................................................................................................................9
3.1Evaluate the planning decisions taken for the design selected brochure................................9
3.2 Assess the suitability of alternatives to a traditional brochure for different types of tour
operators and recommend the most appropriate for your tour package....................................11
3.3 Evaluate the suitability of different methods of distribution used to sell a holiday for
different types of tour operator and recommend the most appropriate for your tour package.. 14
Conclusion.................................................................................................................................15
M2 select /design and apply appropriate methods/techniques..................................................16
TASK 4..........................................................................................................................................17
Executive summary...................................................................................................................17
Introduction................................................................................................................................17
4.1 Evaluate the strategic decisions made by different types of tour operator [M3].................17
4.2 Compare the tactical decisions that could be taken by a selected tour operator in different
situations [D3]...........................................................................................................................19
Conclusion.................................................................................................................................20
Conclusion.....................................................................................................................................21

References......................................................................................................................................22

LIST OF TABLES
Table 1: Current and recent trends and developments for tour operator.........................................2
Table 2: Gantt chart.........................................................................................................................5
Table 3: Alternative distribution methods.....................................................................................12
Table 4: Distribution method.........................................................................................................14

LIST OF FIGURES
Figure 1:Steps followed while developing Tour Package...............................................................4
Figure 2: Steps followed for designing Brochure............................................................................9
Figure 3: Trailfinder Online Brochure...........................................................................................11
Figure 4: Information present in Brochure....................................................................................11
Figure 5: Different methods of distribution...................................................................................14
Figure 6: Tactical decisions...........................................................................................................19

Introduction
Globally the tourism sector has evolved greatly, which has also increase the intensity of
competition among various organization providing similar services in the market. The report will
discuss various features organization need to maintain for its sustainability in the current market.
Different procedures applied for creating a tour package will be studied in this report including
promotion and advertisement. For proper functionality the organization should take various for
obtaining maximum customer satisfaction. The present report discusses about step taken for
creating a brochure for Trailfinder Ltd. along with decision taken. However, there are various
alternative rather than Brochure which will be studied in this report. A tour operator must take
various strategical and tactical decisions for the whole tour package which will be studied in this
report.
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TASK 1
1.1Analyse the effects of current and recent trends and developments on the tour operator’s
industry [D1].
Trailfinder Ltd. provide a verity of holiday packages and other tour services to their customers. It
is a famous and largest independently owned organization having 29 centers alone on United
Kingdom. Trailfinder Ltd. implements all the advance technology and market trends that has
lead to winning of many impressive awards in the year 2016-2017.
Table 1: Current and recent trends and developments for tour operator
1 Customer satisfaction Customers’ demands and need are studied by Trailfinder Ltd.
with the help of feedback on the basis of the service offered and
experience they had with the organization. These feedback helps
in enhancing various service delivered. Interest and trust
towards the organization increases. Trailfinder has been
working effectively for achieving more customer satisfaction by
continuously improving their services. Changes in the
organizational function and services will help in maintaining
proper customer relationship and sustainability in the current
market (Argüelles et al 2016).
2 Developing technology Advancement in the field of technology is helpful in enhancing the
travel and tourism industry by effectively introducing them to the
organizational business function and customer services. For
example, using internet for different operations of Trailfinder Ltd
(Internet Is Important in Business, 2018 ). Now ticket booking,
hotel room booking, enquiries can be done easily by customer using
an electronic device having internet access via the organization web
site. Involvement of customer with the organization has increased.
3 Enhancing the power of
purchasing
Interest of customers for travelling and visiting new places has
increased with the rapid growth in travel and tourism industries. It
has led to increasing in tourist expenses hence Trailfinder Ltd. is
flourishing effectively in the current market.
2

4 Climatic alertness One of the main concern that Trailfinder is worried about is the
climatic conditions of the place where tour is organized for the
tourists. Suitable research of the place and its climatic changes must
be done and package should be organized accordingly.
From the above task, it is cleared that an organization like Trailfinder offering tour service
should must implement all the new modifications in their services for their profitability and
sustainability of the business in the present market for satisfying the customers.
3

TASK 2
2.1 Assess the stages and timescales involved in developing holidays[D2].
An organization need to follow a series of steps for proper generating a tour plan so that more
number of customers are attracted towards the organization business. Different steps while
developing a holiday package is illustrated below:
Figure 1:Steps followed while developing Tour Package
1. Market research: The first stage of developing a tour package is doing proper market
research. Here, all possibilities and conditions of the current market is studied. The
process of market research is accompanied by SWOT and PESTLE analysis for
understanding the market and organization including their opportunities and threats.
Factors like economic, Politics, Society, legal as well as Technological should be well-
thought-out for organizing an educational tour for a group of 40 student.
2. Tour scheduling and planning: Trip is planned as per proper scheduling. In the current
situation, an educational tour is to be organized for 40 students for about 5 days in
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MARKET
RESEARCH
SCHEDULINGAND
PALNING CONTRACTING COST
IDENTIFICATION
MAKING THE
BROCHURE

August 2019.It is the responsibility of the tour operator to check availability of hotel
room and food and then the tour plan must be created.
3. Contracting: different contracts must be signed among various other organization for
incessant customer services while organizing the tour plan. This stage of developing the
tour plan includes documenting and contracting with different airline companies, guide
service, travel agencies and hotel for accommodation and food responsible for offering
best service option to the customers (Horner and Swarbrooke, 2016).
4. Cost Identification: The rate and cost of whole tour package is estimated in this stage. It
is done by identifying all the maximum possible rate will be charged while planning the
tour. The cost identification stage is helpful in gaining overall profit of the organization.
5. Creating brochure: this next stage is considered as the one of the most significant stage
for creating tour plan. Brochure are designed keeping the target customer in mind. The
main purpose of this stage is to promote the organization and its services related to tour
package to the customer for attraction them. The Brochure hence design contains all the
important and crucial information that customer wants to know regarding a tour package.
And Brochure effectively impacts the process of decision making of a customer.
6. Allocation of responsibility: As soon as the tour plan is created, next stage is plan
execution and implementation for the organization. Responsibilities and duties of all the
employees must be distributed among all the stuff members to achieve maximum output
for delivering proper customer satisfaction.
Development of the tour package along with scheduling and proper and scheduling is done in
4 months’ time period. A Gantt chart is prepared for explaining the development of the
whole tour package.
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Table 2: Gantt chart
Events/
timescale (2018)
Research Planning and
scheduling
Contracting Creating
brochure
Month 1
Month 2
Month 3
Month 4
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2.2 Evaluate the suitability of different methods of contracting for different components of the
holiday and different types of tour operator [M1].
Tourism is a very complex sector that involves working with various components to provide
effective service to the customers. These sector of providing customer services related to tour
organizing need to follow and fulfill various rule and regulations. The organization in this sector
come across numerous types of challenges and externally occurring influences.
It is the responsibility of the tour operators to develop effective links with many other
organizations for successful working with several components. Some of the components are:
Transport Providers: transportation services come under this component including taxi
operators, rail operators etc. The tour operator should mandatorily negotiate with these operators
according to the with the tour package.
Travel Agents: The travel agent an individual who are placed in the organizational outlet sales
outlets. The travel agent should convey messages with the tour operator along with commission
payments (Graci and Dodds, 2015). A travel agent associated with an organization works for
enhancing and sustain the organization, increasing and maintaining the market share.
Accommodation Providers: It is very much significant that tour operator must negotiate with
components negotiates with them regarding to availability of rooms, bed
and other section that the package tour includes.
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