Tour Operation Management: An Analysis of Trailfinders Ltd

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TOUR OPERATION
MANAGEMENT

TABLE OF CONTENTS
Introduction......................................................................................................................................1
Task 1...............................................................................................................................................2
P1.1 Analyse the effects of current and recent trends and developments on the tour operators
industry........................................................................................................................................2
Task 2...............................................................................................................................................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................................................................................6
2.3 Calculate the selling price of a holiday from given information above................................7
Task 3...............................................................................................................................................8
3.1 Evaluate the planning decisions taken for the design of a selected brochure........................8
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......................................9
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 a luxury tour package
...................................................................................................................................................10
Task 4.............................................................................................................................................11
4.1 Evaluate the strategic decisions made by different types of tour operator..........................11
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.................................................................13
Conclusion.....................................................................................................................................15
References......................................................................................................................................16

LIST OF TABLES
Table 1: Selling Price Calculation...................................................................................................7

Introduction
The management of operations of tour holiday packages is the responsibility of different tour
operators in different tourism firms. Tour operators are required to use current trends related to
tourism sectors so that their sales and profits can be enhanced. The current report will discuss the
services provided by Trailfinders Ltd which is a outbound operator of tours and travels situated
in UK. The educational tour of 50 adult student organized by the tourism firm for five nights will
also be discussed in the report below. This report will also discuss the tactical decisions required
to be taken by Trailfinders Ltd so that more customers can be attracted towards purchasing the
products and services of tourism firm. The use of E-brochures and various distribution and
marketing methods used for the promotion of holiday packages along with stages of an effective
holiday plan will also be discussed in this report.
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Task 1
P1.1 Analyse the effects of current and recent trends and developments on the tour operators
industry.
Different Types of Tour Operators and recent trends in tourism sector:
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Technological development: marketing for tourism packages in
Trailfinders can became effective by the use of new and advanced
technologies as they can promote their packages more efficiently.
Complaints of the customers and clients can be resolved through
online platforms using tools like live chat box and many more.
Inbound Operators of Tour: the types of services provided by
inbound tour operators in Trailfinders Ltd covers the facilities required
at the time of arrival and at the time of departure including all
amenities. Along with this, the various other facilities like exchange of
currencies, entertainment facilities and other accommodation facilities
are covered under this type of tourism operations (Mwesiumo and
Halpern, 2018).
Ground Operators of Tour:
These types of tour operators play
the role of a mediator having
agencies for operating tourism
related services. They provide
suggestions, advices and various
recommendations to the customers
purchasing tour packages. They
also have extra facilities like
providing taxies and cabs to the
customers.
Domestic Operators of Tour:
domestic tour operators provide
local services and domestic
related to tourism sectors at local
and domestic destinations. In this,
tour services are provided in the
state boundaries. Development of
tourism and achieving growth is
the main purpose of these tour
operators in Trailfinders Ltd.
Recent tourism trends impact on the tour operator industries
Globalization sector development: one of the
reasons for the development of tourism sector
at international level is because of the increase
in globalization. Due to international
connections among different countries, the
various opportunities for import and export in
Trailfinders Ltd have increased in the market.
Business expansion of the firm can take place
because of the relationships with tour
operators of different countries.
Trade body’s role: the various activities of
tourism in Trailfinders Ltd are controlled by
the different trade bodies so that tour
operating functions can be managed and
monitored. For example, British Travel agents
seek to raise the standards of travel sectors as
to gain tourism operators sustainability. For
managing health and safety, related code of
conduct is also formulated by trade bodies
(Draper, 2017).
Outbound Operators of Tour:
overseas tour services are
provided by outbound tour
operators including all services
related to tourism sector in
Trailfinders Ltd. Providing
international services from
country to country includes all the
terms and conditions provided to
their customers and clients (Jin
and Sparks, 2017).
Inbound Operators of Tour: the
types of services provided by
inbound tour operators in
Trailfinders Ltd covers the
facilities required at the time of
arrival and at the time of
departure including all amenities
Other facilities like exchange of
currencies, entertainment are
covered under this type of
tourism operations (Mwesiumo
and Halpern, 2018).

Task 2
2.1 Assess the stages and timescales involved in developing holidays
Trailfinders Ltd manager is organising a tour during summer vacation to provide education
which includes 50 students. The timescale of tour will be for five nights to Brussels from
London. The age limits for the students in educational tour will be 18 years above. Given below
are the stages and steps required for developing a holiday tour plan:
Stage1- Conducting Market Research: For the identification of the currents trends, needs,
demands and preference of their customers, Trailfinders managers are required to conduct
effective market research and surveys. This research will also include the analysis of their
targeted customer’s expectation along with indentifying the rates of hotels, expenses related to
travel and food and the rates of currency (Brace, 2018).
Stage 2- Rough Plan Creation: After conducting proper market research, the next stage is to
create a rough plan including the availability of food, days involved, details of transportation and
hotels and the date and time of arrival and departure. On the basis of this plan, the execution
takes place.
Stage 3- Creation of Schedule: For proper understanding of the structure of the created plan,
Trailfinders managers are required to make a proper schedule so that their members can get all
the necessary information and details related to the tour. Schedule made by tour operators helps
in making effective communication between the firms and their team members.
Stage 4- Budget Forecasting: Forecasting of budget by the managers of Trailfinders Ltd
includes direct and indirect expenses, profit margin, taxes along with variable and fixed costs. In
relation to rate fluctuations, Trailfinders are required to have an agreement with their clients.
Forecasting of budget will help the tour operators to provide the rates of tour packages as per the
estimation (Morrell, 2017).
Stage 5- Promotion through brochure and Feedbacks: for promoting the tour packages of
Trailfinders Ltd, various brochures are created by them including all the necessary details of the
tour. For increasing communication, these brochures are posted on social media. Later on, for
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making improvements in brochures, feedbacks are taken from the customers. Tour operators can
make effectives changes in their holiday tour packages as per the feedback and preferences of
their customers and clients.
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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
There are various contracting type methods in relation to transportation, beverages and food,
services of tour guide and transportation which are used by Trailfinders firm so that they can
provide such suitable facilities to their customers or students of educational tour during the
travel. These contracting methods include the following:
Services of beverages and food: travel operators of Trailfinders are required to have contracts
with some clients of restaurants related to food and beverages so that the students resent in the
holiday tour can enjoy the healthy food facilities as per prescribed rates. Tour operators should
ensure healthy food for the students (Pencarelli and Dini, 2016).
Services of transportation: the tour operator is required to have fixed contracts with the agents
of bus and flights so the educational tour of students will be based on transportation facilities of
bus as well as flight to have a comfortable journey with Trailfinders Ltd.
Services of tour guide: tour guide provided for educational tour by Trailfinders is required to
have a fixed contract and should charge a fixed amount as per the destination and not according
to the number of students available in the summer vacation tour (Shuen, 2018).
Services of accommodation: Trailfinders tour operators is needed to have the fixed as well as
variable contracts with the hotels included in the holiday packages. The contract of 5 days stay
will be fixed whereas for urgent basis variable contract will be included.
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2.3 Calculate the selling price of a holiday from given information above.
The calculation of selling price of the overall tour package will be as per the necessary budget
and the costs involved during the summer vacation tour of student education having 50 students
who are above 18 years of age. This educational tour organized by Trailfinders will be for five
nights from London to Brugge. The details of overall budget formulated by Trailfinders Ltd for
summer holiday tour are given below including all the components and the contracts of the tasks
explained above (Thomas, 2015). Following are the details:
Currency rate estimation: 1 euro = €0.88 (the rest of the calculation will be based on this
currency rate)
Cost of room: per room = €89
Charges of coach: for 54 travellers = €6949
Commission of visitors: per student = €45.60
Commission of tour guide: €896
Table 1: Selling Price Calculation
Calculation Total
Charges of coach £6949
Cost of room (89* 25* 0.88*5) £9790
Commission of tour guide (= €896*0.88) £788.5
Commission of visitors (€45.60*0.88*50) £2006.4
Holiday package total cost £19,533.9
Profit margin of firm on total cost = 25% £5469.5
Total holiday cost £25,003.4
Per student final budget (=25003.4/50) £500.06 for per student
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Task 3
3.1 Evaluate the planning decisions taken for the design of a selected brochure
It is important for the Trailfinders tour operator to make effective planning decision for the
designing attractive brochure to promote and sell its luxury holidays. The attractive brochure will
help the tour operator organization to aware people about the luxury holidays at large scale that
will enhance sales and hence profitability of the organization. Following are given below some
planning decisions for designing of the brochure to promote and sell luxury holidays:
Brochure formatting: It is important to design the brochure format in efficient manner that will
enhance the interest of readers and viewers and attract them to buy the luxury holiday package. It
has identified that landscape format brochure will be more appropriate as it will easy to carry and
put all the relevant information of the holiday tour (Birsak et.al, 2014). In the landscape format
brochure, it will be easy to include all attractive pictures of destination, attraction places and
other facilities that will be offer to customers.
Material and print cost: The marketing team needs to take effective decisions related to the
selection of the material for brochure and estimation of the print cost. It is essential to use quality
material for designing of the brochure that will enhance the purchase interest of the target
customers. Marketing team needs to use the quality material that will be available at reasonable
cost and hence will also incur less printing cost.
Copyright: It is also essential to obtain copyright to protect the intellectual property rights of the
tour operator organization. Copyright is important as no other competitors will able to copy or
steal the design and format of the brochure.
Launching the brochure:
It is the final decision that is to launch the brochure after completing all the formalities and
verifying all aspects of the brochure design (Brito and Pratas, 2015). Marketing team can launch
the brochure through effective medium such as launching brochure on the website and inviting
celebrity to launch and promote the brochure at mass level.
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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
In the modern time, there are various alternatives to the traditional brochure that different tour
operators can use to promote their holidays.
Internet: Internet platform is the most appropriate medium through which the different tour
operators can promote their holiday tour packages at the mass level. Tour operators can promote
their holiday tour on social networking sites such as Facebook, Instagram, twitter, etc by using
suitable internet network (Gössling and Lane, 2015).
E-brochure: Presently, it is the most appropriate marketing tool through which the tour operators
can promote their holiday tour at global level. Tour operators can design attractive and effective
e-brochure and post it to their websites and various online pages through which the awareness
will be spread at the large scale.
Call centres: Tour operators can also aware people about the holiday tours by making contact to
people through phone calls at large scale. Call centre team can communicate with people by
making phone call and can communicate necessary information related to the holiday tour and
invite people for booking holiday tour packages.
Audio-video brochures: Technological advancement has provided variety of tools and options to
business organizations to promote their products or services effectively. Tour operators can also
design audio-video brochure by including in various pictures, graphics and information related to
the tour, destination and attraction sites (Samardzija, 2015). This brochure may be more
attractive and enhance interest of people to purchase the holiday tour packages.
After discussing different alternatives to traditional brochures, it has identified that internet
platform is the most appropriate to promote and distribute luxury holidays as it can promote the
holidays at mass level through internet.
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