Tour Operation Management: A Case Study of Trailfinders

Desklib provides past papers and solved assignments for students. This report analyzes Trailfinders' tour operation management.

TOUR OPERATION
MANAGEMENT

TABLE OF CONTENTS
Introduction..................................................................................................................................................1
LO1..............................................................................................................................................................2
1.1 analyse the effects of current and recent trends and developments on the tour operators.................2
LO2..............................................................................................................................................................4
2.1 assess the stages and timescales involved in developing holidays....................................................4
2.2 Evaluate the suitability of different methods of contracting for different components of the holiday
and different types of tour operator.........................................................................................................5
2.3 Calculate the selling price of a holiday from given information above............................................5
LO 3.............................................................................................................................................................7
3.1 Evaluate the planning decisions taken for the design of a selected brochure....................................7
3.2 Assess the suitability of alternatives to a traditional brochure for tour operator and recommend the
most appropriate for your tour package...................................................................................................8
3.3 Evaluate the suitability of different methods of distribution used to sell a holiday for a tour
operator and recommend the most appropriate for a luxury tour package..............................................9
LO4............................................................................................................................................................12
4.1 Evaluate the strategic decisions made by different types of tour operator......................................12
4.2 Compare the tactical decisions that could be taken by a selected tour operator in different
situations................................................................................................................................................12
M1. Identify and apply strategies to find appropriate solutions............................................................13
M2. Select/ design and apply appropriate methods/ techniques............................................................13
M3. Present and communicate appropriate findings.............................................................................14
Conclusion.................................................................................................................................................15
References..................................................................................................................................................16

LIST OF FIGURES
Figure 1: Social website advertisement for tourism....................................................................................8
Figure 2: Print media advertising example..................................................................................................9
Figure 3: Personal selling image................................................................................................................10
Figure 4: Internet selling............................................................................................................................11

LIST OF TABLES
Table 1: Timescale.......................................................................................................................................4
Table 2: Calculation of selling price............................................................................................................6

Introduction
In a highly competitive environment, it is important for the tour operators to give high-quality services
with reasonable pricing. The hospitality industry is wide, and it is crucial to managing the tours to
increase the growth for the economic benefits of the country also. In the present report, the study will
focus on Trailfinders case study which is leading tour operator in UK serving services across the whole
nation. The study will discuss the trends of services and their impacts on the organisation tour operators.
It will also cover the holiday planning stages, and after that, the discussion on distribution methods will
be done for the selling of holiday packages. In the end, the study will cover the tactical and strategic
decision making for the tour operators in their businesses.
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LO1
1.1 Analyse the effects of current and recent trends and developments on the tour operators
Trailfinders is one of the leading travel organisations that serve clients with its travel centres in UK and Ireland. Customers in recent
times with higher spending power expect travel agencies and operators to gain advantage of services as per the current trend and
development in the market. It has been identified that such type of changes influence positively or negatively in tour operator industry
and effects of few of the trends is explained as follows
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Current trends in travel and tourism
Current trends and development
Changed customer’s perspective: In the
present scenario, the customers are very well
aware about the services actually the tour
operators are offering. Therefore it is very
important for the Trailfinders to offer such
quality with maintaining the affordable pricing
criteria (Boniface et.al. 2016).
Technological trend: The technology
expansion supports the Trailfinders to capture
the big base of the customers by influencing
them by social websites. Further the services
of online payments and bookings can also be
offered to them.
Environment and culture awareness: Now day’s individuals are
attracted for natural climate and surroundings and this influence
decision making of the individuals towards these places. The tour
operators should necessarily focus on sustainable development at the
destinations (Mariani et.al. 2014). Further, they can develop the
training sessions to educate the tourists and local resident of that
destination.
External factors: There are
several factors such as
social, political and many
more that influence the tour
operators operations. In
addition, good airlines
policies, incentives growth
and responsible tourism had
raised the income of the tour
The organisation has the main duty to offer every kind
of hospitality to the tourist visiting at the places.
Trailfinders is the leading tour operator that gives
tourism facilities through offering attractive offers of
tour holidays. The organisation offers the services
across the world so as to expand their business
operations.
Types of tour
operators
Domestic tour operators: It
offers local tour services within
the country to the tourist. They
offer local services of
transportation and offer good
growth and makes development
in the facilities of touring.
Inbound tour operators: This tour
operator’s major duty to give the
tourism services to the foreigner and
includes the facilities in relation with
accommodation, transportation and
other necessary amenities etc
(Giaoutzi, 2017).
Outbound tour operators: This tour
operator’s gives all types of tour
packages who need to travel from one
place to other. They include all types
of services and take the important
documents of the tourist. At prior,
they enter into various contracts as
well for making all types of
arrangements.
Ground tour operator: It
includes the appropriate
agency to give the advices
for tour packages. Further
they offer the arrangement
facilities at the tourist
destination.

Main roles played through trade bodies:
The role of the Association of British Travel Agents (ABTA) supports in setting the objectives on
account of sustainable tourism. They also offer funds to the tour operators and other agencies for the
development of tourism in the country to increase the growth of the nation (Armstrong and Matters,
2017). There are other agencies also such as Civil Aviation Authority (CAA) that supports more tourism
within the country by lowering the flight cost so that tourist can afford and visit any country.
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LO2
Executive summary
In a project for the successful project completion and execution, the manager is responsible for
developing and stating the timescale and project stages. Presently, the Trailfinders is thinking to develop
the tour package for the 50 students from the city London to the country of Belgium which includes the
city Brussels and Brugge.
Introduction
In the present task, Trailfinders is thinking to develop the tour package for the 50 students from the city
London to the country of Belgium which includes the city Brussels and Brugge. Presently, the
Trailfinders is thinking to develop the tour package for the 50 students from the city London to the
country of Belgium which includes the city Brussels and Brugge.
2.1 assess the stages and timescales involved in developing holidays
With the help of the holiday plan, it will become easy to identify the major requirements of the
customers so that further services can be provided to them during this holiday. The objective is to give
the education to the students that mean it is education tour and due to this the number of stages is
required to be considered by Trailfinders are as follows:-
Market analysis: It includes research of the market through an appropriate source to determine the
demand and perspectives of the customers (Sharpley and Telfer, 2015). It includes factors such as
income of the customer, sales forecasting, expectations and the approaches the firm can implement.
From this effective planning will be done by offering good service qualities for their value.
Time schedule: It encompasses tour destination reaching a point and leaving point, arrangement of the
resources along with the dates it is decided (Bowie et.al. 2016). The tour trip will show the budget for
the student for the 50 students to meet the objectives of the tour.
Proper agreement: The fixed and variable contract shall be seen by the tour operator so that bookings
can be done accordingly. The proper contract will encompass all the necessary terms and conditions that
it is to be given to every student before planning the trip.
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Designing vouchers for the promotion: Brochure is needed to be prepared by giving all the descriptions
for the tour packages. In this budget, destination schedules and places included activities and terms and
conditions are presented in the brochures. The design should also include influencing images for tourist
attraction (Bremser et.al. 2019). The brochure is taken by Trailfinders to make more sales for the
designed holiday package.
Educational timescale: In this tour operators are required to make the correct time for the trip in aligning
with all activities in the planning of the trip. The below presented is the action plan:
Table 1: Timescale
Holiday
stages of
plan
Market
research
Tasks
scheduling
Agreement
making
Budget
development
Designing
brochure
Action
plan
Timings 1 month 2 month 3 month 2 month 1 month 10 days
2.2 Evaluate the suitability of different methods of contracting for different components of the holiday
and different types of tour operator
Contracting is made by the Trailfinders with other sectors so that proper services can be provided to
their customers. For the organisation it is significant to carry out the steps so that they can consider
correct plan for a holiday for 50 students for the educational trip. As the tour operator, Trailfinders
requires to sign the agreement with the flights, tourist guide, hotels and others so that facilities can be
given to the tourist in the trip. The different components of holidays are presented that will include
contracting methods favourable to them:-
Staying services: For the education trip it is important that the organisation Trailfinders should include
the staying facilities at the hotels. For this purpose, it is important for them to enter into the contract with
the hotel on a fixed based contract and it will include all the necessary facilities (Choe et.al. 2017). They
can also plan to include recreational activities at the hotel garden area and arrangement for the breakfast
to spend a good time at the hotel itself. 5 days staying has to be covered in the hotel stay for 50 students.
Transportation services: For 50 students the coach arrangement is required to be done for 5 days for
Brugee. On this account, it is important to enter into fixed contract with the private coach for
transportation purpose. But the prices can be fluctuated due to the change in any economic prices.
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Food and beverages facilities: The students taste and preferences are very important in this component.
Therefore the more appropriate contract is variable contract to suit the taste of every student as per their
demands (Vellas, 2016). Food charges are borne at the point of sale only which is charged by the
restaurant.
Tour guide: It is important to hire a guide to get knowledge about the places in Belgium decided. It is
the fixed rate contract irrespective of the number of students present in the trip holiday.
2.3 Calculate the selling price of a holiday from given information above
For 50 students the holiday trip is from London to Brugge and Brussels for 5 days in July 2020. The
calculation is presented below:-
The present currency rate is 1 euro = £0.89
Table 2: Calculation of selling price
Components Room stay Private
coach cost
Tour guide Attraction
charges
Total
Package
costing
Calculation 89*25*
0.89*5
- €896*0.89 45.60*50*.89 -
Total cost £9,901 £6949 £797.44 £2029.20 £19,676.44
 Profit margin of Trailfinders is 28% of cost = £19,676.44*28/100 = £25,185.84 Cost of per student = £25,185.84/50 = £503.71 per student
Conclusion
In the above task, a travel plan for a group of 50 students has been designed for Trailfinders. Presently
the Trailfinders is thinking to develop the tour package for the 50 students from the city London to the
country of Belgium which includes the city Brussels and Brugge.
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LO 3
Executive summary
Marketing is the crucial activity that requires to be carried out by the Trailfinders for promoting the tour
packages and increasing the sales. The brochure design has to focus on the format. There are several
types of formats including foldable and not foldable. The organisation has to consider the adequate use
of the images and content to attract the customers toward the brochure.
Introduction
The present task discuses about the design of a brochure and it are the format. There are several types of
formats including foldable and not foldable. The organisation has to consider the adequate use of the
images and content to attract the customers toward the brochure.
3.1 Evaluate the planning decisions taken for the design of a selected brochure
For marketing purpose, the use of pamphlet is to be done for effective designing. The team of marketing
will give significant information for the trip planned for education students. The brochure requires to
include the information for a tourist destination, transport and hotel details, number of days, documents
required, information for cancellation and safety tools taken (Vellas, 2016). The plan is presented
below:-
Use suitable format: The proper font size, pattern, colour, shape and size etc. are required to choose
effectively. The format of the brochure requires being prepared so that the target market can be attracted.
The proper theme and tempting images should be used for the particular places of the trip planned. The
use of hotels images can also be done as it is one of the important components in trip plan.
Decide for brochure design: The design such that the customers get attracted and purchase the holiday
package instantly (Wehrli et.al. 2017). The information should be mentioned but with that budget should
be kept in mind. Colour and influencing images shall be presented in the brochure designing. The design
of the brochure has consideration of colour, font size and images. The paper quality and size also
impacts the brochure design and content placement on it.
Cost of brochure: The brochure cost should be decided by the marketing team which will include print
run cost, design cost and marketing cost so that profit margin shall also be mentioned. The organisation
has to predetermine the cost on the designing, printing and amount of the prints so that the issue of the
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