Tour Operation Management Report: Trends, Planning, and Strategies

This report provides a comprehensive analysis of tour operation management, focusing on current trends and developments within the industry. It examines the planning and development of holiday packages, using Thomas Cook as a case study, and explores the various stages involved, including market research, planning, forecasting, and contracting. The report delves into the suitability of different contracting methods for various holiday components, such as accommodation and transportation. It also includes a calculation of the selling price of a holiday package. Furthermore, the report evaluates planning decisions related to promotional materials, assesses the suitability of alternatives to traditional brochures, and analyzes different distribution methods. Finally, it examines the strategic and tactical decisions made by tour operators to promote their packages and achieve business goals. The report highlights the importance of adapting to technological advancements and consumer preferences within the dynamic travel and tourism sector.

TOUR OPERATION
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
1.1 Current and recent trends and development of the tour operators industry.....................4
TASK 2............................................................................................................................................6
2.1 Stages involved in developing holidays...........................................................................6
2.2 Suitability of different methods of contracting for different components of holidays.....8
2.3 Calculate selling price of a holiday from given information............................................9
TASK 3..........................................................................................................................................10
3.1 Evaluating planning decisions for selected brochure.....................................................10
3.2 Ssuitability of alternatives to a traditional brochure for different types of tour operator12
3.3 Suitability of different types of distribution used to sell holiday package.....................13
TASK 4..........................................................................................................................................14
4.1 Strategic decisions made by different tour operators.....................................................14
4.2 Tactical decisions taken by different tour operators.......................................................16
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................18

INTRODUCTION
In the current era of globalisation, travel industry is flourishing very widely in term of
improving revenue and foreign exchange reserves. Travel and tourism sector also provides
various employment opportunities to individuals so that they can enhance their standard of
living. Further, the tourism industry also involves wide range of components such as attraction,
accommodation, transportation, travel agencies, catering and tour guides etc. All these services
helps in providing best travel experience to tourists and encourages them to visit the destination
again in future (Tour Operators, 2014). Government also focuses upon developing the country as
a tourist destination because it is one of the major contributor to the economy of the country.
Present report focuses upon selecting Thomas Cook as a tour operator agency which is famous
for its operations in worldwide market. It also provides diversified services to its guests such as
tour itinerary, accommodation, transportation booking and other auxiliary services. Here,
researcher aims to assess different aspects of current and recent trends in the development of tour
operator industry. It also identifies different way of planing holiday and involves different
services provided by tour operators. Report also focuses upon involving different methods of
promoting tour packages to attract target audience. At the end, effectiveness of tactical,
operational and managerial decisions has been undertaken in order to promote the tour package.
TASK 1
1.1 Current and recent trends and development of the tour operators industry
It has been assessed that travel and tourism sector is one of the most vibrant industry
which is growing at a rapid scale and thus provides benefits to different subsidiaries involved
with it in some or other way. For instance, tour operators or travel agencies who are designing or
preparing itinerary for tourists to visit a particular destination requires possessing enough
knowledge about the place so that they can give best deals to customers (Endy, 2004). Hence,
government is focusing effectively upon such industry in order to encourage them by providing
different relaxation in taxes so that they can promote tourism in the country. As it is major source
of revenue generation and raises the economic capacity of country. According to the recent
trends and development in the tour operators industry, it is essential for them to adopt innovative
and creative technology so that large number of target audience can be influenced towards the
business (Briassoulis and Van der Straaten, 2013). Therefore, as per the current change in the

technology, Thomas Cook undertakes e-platform for providing convenience to customers and
thus displaying the information about the package upon their website so that potential consumers
can be attracted towards the business. Moreover, as per the current requirement firm also focuses
in providing customized travel services as per the needs and preferences of consumers so that
they can provide best services to clients (Giaoutzi and Nijkamp, 2013). Hence, it helps in
enhancing the business to attain growth and success.
Further, Thomas Cook also collaborates with different accommodation service providers
in order to give a list of 5 star luxurious hotels from which clients can choose as per their need. It
helps in growing the travel and tourism sector and also provides satisfaction to customers.
Following are the different recent and current trends within the tour operator industry such as-
 One of the fastest growing trend in the travel and tourism industry is e-commerce
platform that raises the awareness among people by providing them appropriate
information regarding the available products or services. Also, adopting digital marketing
method it assists tour operators to place their advertisement upon different social media
websites such as Facebook, Twitter etc. so that potential customers can be attracted
towards firm (Hall, Timothy and Duval, 2012). It is also considered as one of the most
convenient factors that helps in delivering information to consumers at their place and
they do not have to move anywhere. For instance, keeping in mind the current trends in
the market, different travel operators such as Thomas Cook provides facility of online
booking that allows clients to avail the travel package as per their wish and also obtain
the discount and offers available on the websites. Thus, it helps in improving the sales
and profitability of firm (Kolb, 2006).
 Also, according to the recent trends and changes, government needs to focus upon
developing new provisions and regulations such as increasing airlines as well as airports
so that maximum number of tourists can visit the country. It also results in improving the
demand of tourism services in the country and grow the economy as well (Mak, 2011).
 In the current era, each and every business enterprise is entering into the concept of e-
commerce so that they can sell their products or services online in order to provide ease
to clients. Thus, Thomas Cook also develops its online website and thus customers can
directly visit the site in order to book their travel plans and provide information regarding
any specific requirement so that it can be fulfilled accordingly (Mills and Law, 2013).

Such method helps clients to save their time and cost while it provides advantages to
business as well as it is not essential for them to open their physical outlet. Consumers
also possess the option of comparing the prices as well as services with other tour
operators so that it is significant for Thomas Cook to provide reasonable prices to
customers in order to enhance the sales and profitability (Minca and Oakes, 2012).
 Also, it has been assessed that UK travel and tourism industry is flourishing effectively
therefore, it is essential for them to adopt innovative technology so that they can provide
best services to their customers. Hence, tour operators i.e. Thomas Cook requires to
provide detailed information about the package upon their website as well as they provide
different benefits to consumers such as discounts, offers, schemes etc (Moutinho, 2011).
Thus, it helps in improving the demand of tourism services and attain desired results.
TASK 2
2.1 Stages involved in developing holidays
Thomas Cook is one of the fastest growing tour operator in UK and thus it provides
different travel services such as accommodation, ticket booking and holiday packages etc.
Business also focuses upon the requirements of customers and thus deliver the best quality
products or services in order to enhance the sales and profitability of firm. Through reviewing
the given scenario, Thomas Cook is planning a sightseeing tour package for Chinese students
from London, UK to Paris (Middleton, 2001). Tour operator needs to plan a summer holiday
package that lasts for no more than 5 days and for the group of 15 students. Further, the package
involves different services such as accommodation, transport, sightseeing etc. Moreover,
students are required to hire local tour guide whose cost is not involved in the package and thus it
will provide them detailed information and knowledge regarding the culture and heritage of Paris
(Wheeler and Beatley, 2014). Following are the different stages adopted by Thomas Cook in
order to plan a tour package such as-
 Market research- It is significant for each and every business enterprise to carry out
market research so that they can obtain desired information about the tour package. Thus,
Thomas Cook market research team is required to identify the requirements of its
customers so that they can provide them suitable services in relation to gain competitive
advantage over rivals (Page, 2011). Business needs to ascertain different factors such as

creating proper travel plan and customize it according to the needs of clients so that best
services can be delivered to individual. Thus, market research involves different factors
such as current market conditions, luxurious accommodation facilities, transportation,
food and beverages etc.
 Planning and scheduling- In this stage of tour package planning, Thomas Cook plans
and schedules the destination that are going to be covered so that desired services can be
provided to traveller's. With the help of proper planning and scheduling of activities,
visitors can obtain best travel experience and plans to visit at the same place again in
future (Le Serre and Chevalier, 2012). Thomas Cook needs to specify the number of days
required to spent at particular destination and hence plan the travel arrangements
appropriately so that all the places can be covered effectively. Therefore, tour operator is
required to design proper itinerary of tour involving all the sightseeing and thus help
students to decide in relation to visit Paris or not.
 Forecasting- It is essential for Thomas Cook to plan the demand and supply of different
services involved in the tour package so that results can be identified. Further, adopting
forecasting method is crucial as it helps in assessing the total cost of the tour package in
order to provide best services to clients. Apart from this, Thomas Cook is also required to
identify the budgetary aspects of clients and thus customize the tour package accordingly
so that it can satisfy their needs (Machlouzarides, 2010). Thus, forecasting the
requirement of individuals helps in planning appropriate and overcome the uncertainties
that may arise within the tour plan.
 Contracting- It is the last stage in tour package planning in which proper travel package
is planned for students visiting Paris from London. Therefore, Thomas Cook involves
various contracting techniques such as suppliers, agencies, hospitality service provider,
transportation etc. so that it helps in delivering best services to students and satisfy their
travel needs (Mahony, 2007). There are different methods of contracting which can be
used by Thomas cook for understanding different components of holidays. These are Sale
any contract, fixed contract, commitment contract, cost plus contract and allocation
contract.

2.2 Suitability of different methods of contracting for different components of holidays
It is essential for Thomas Cook to undertake different methods of contracting such as
accommodation, transportation, food and beverages etc. so that customers can be attracted
towards business. Through providing such services to traveler's Thomas Cook attracts wide
range of customers and thus improves the tourism services in the country. Firm also focuses
upon maintaining contract with different suppliers so that they can provide the best quality
services to guests (Vrana and Zafiropoulos, 2006). Following are the different methods of
contracting that helps in improving the services in market such as-
 Sale any contract: These types of contract are developed by Thomas cook for short time
period in which company provides different major services to its customers and these are
accommodation, catering and transportation, etc. It starts at the time of beginning of the
tour and end with the last day of the tour.
 Fixed contract: These types of contract are developed by Thomas cook at the time of
season when large number of tourist travel at the same place with same needs and
requirements. These are developed on the basis of occasion such as Christmas and
summer vacations, etc.
 Commitment contract: Generally, for completing each and every services in effective
manner tour operators use commitment contract.
 Cost plus contract: In this type of contract tour operators decides the selling prices after
adding all type of costs which are required to spend at the time of providing services.
 Allocation contract: Effective relationship between tour operator and intermediaries is
the major base for this type of contract.
 Thomas Cook is required to identify the available resources so that it can be utilized
optimally in order to deliver best services to customers. Moreover, at the same time, firm
is also required to develop appropriate contract with the supplier agencies so that services
can be delivered on time and of the best quality (Xin and Chan, 2014).
 Moreover, Thomas Cook promotes its services upon internet by adopting fixed contract
so that it states clear provision regarding the availability of service. Hence, firm is
required to make sure that all the legal rules and policies are required to comply with the
available services so that best package can be delivered to customers. With the help of

proper policies and procedures it helps business to protect the rights and interests of
customers (Deuschi, 2006).
 Also, it is significant for Thomas Cook to provide the best quality products or services as
per the needs of customers so that effectiveness can be attained. Thus, it assists in
enhancing the standards of service quality so that target audience can be influenced
towards the products of firm.
 Cited firm is required to make sure that at the time of delivering the services to
customers, it is significant for firm to improve customer base so that set targets can be
attained (Endy, 2004).
2.3 Calculate selling price of a holiday from given information
Thomas cook is planning a summer vacation plan for Chinese students from London to
Paris. It has covered different aspects in the plan which will help to avail better services to
potential customers (Lee, 2013). It is essential for tour operator to charge appropriate prices
which will involve 12% profit margin for the firm. The cited organisation will effectively sell
services and operating in effective manner.
Services Selling price for 15 students
(£)
Hotel booking 47.67x8= 381.36
Breakfast and dinner 7.95x15= 119.25
Surface transportation 1000
Guide 200
TOTAL 1700.61
Profit of 10 percent 170.61
Selling price 1870
As per the given information 10 Euro can also be considered as 7.95 pounds. It means 60
Euro means 47.67 pounds. So, after making all calculation cost of tour services is £113.74 for
each student. So, total cost of package will be £1700.61. After the addition of desired profit
selling price for tour package will be 1870 pound.

According to above table the cited firm has calculated expenses that will be incurred
while conducting planned tour. The company has focussed on delivering luxurious services to
students enrolled in tour package. It has provided option for clients of delivering customized
services as per their needs and preferences. The price quoted by Thomas Cook for different
services is very feasible as they are providing high quality services at low prices. The package
involves all the basic amenities such as accommodation, food and beverage, transportation etc.
within the budgetary facets (Yasarata and et.al, 2010). The company has invested good amount
of fund for availing proper transportation and accommodation facilities. Students will be
transported through flights so that time is consumed to visit various tourist destinations. Thomas
cook has signed contracts with five star hotels, cottages and villas to make students stay in clean
and safe area. It has also availed proper food and beverage facilities to students and making
them taste different cuisines of prime locations. Apart from that there are different other ancillary
services such as transportation and fares at attraction places are charged.
TASK 3
3.1 Evaluating planning decisions for selected brochure
The tour operator avails brochures to their customers to enhance their knowledge
regarding tourist destination and additional features (Briassoulis and Van der Straaten, 2013).
With course of time, significance of these small magazine containing pictures and information
regarding tourist locations have increased a lot among people. Thomas Cook also ails attractive
and informative brochure considering several basic and additional information. It helps to satisfy
curiosity of customers also certain queries raise in their mind which they can discuss from
concerned enterprise. Below are specified different aspects which are taken in consideration for
designing a brochure for Thomas Cook tour package:
Brochure format
In order to design effective brochure Thomas Cook managers primarily address what
content should be included in its format (Bramwell, 2011). It helps to provide each and every
essential information read out by customers before planning to access their service. The y choose
appropriate content, size, structure, tourist destinations pictures and also include additional offers
or schemes for targeted customers.
Details of services

Secondly, the managers focuses on availing details about tourist services they will
provide to customers. The brochure will include description about banking and insurance
facilities the company will avail apart from tour operations. It will describe tariffs and discounts
availed on air fights and cruise based transportation facilities.
Legal implications
There are different types of laws and regulations framed in this aspect that is supposed to
be abided by the organisation (Nicholas and Thapa, 201). It includes the assurance about non
copying of any content, the uniqueness of features and product launched, compliance with the
health and security measure laws and other related.
Thomas Cook has planned to prepare sightseeing travel package of 5 days for Chinese students
in summer holiday. The company has involved detailed information about France including
destinations like Paris, Mont Saint -Michel, Strasbourg and Saint Tropez. The brochure
highlights cost per person for tour package that also involves profit margin of the company.
There is proper schedule and plan to influence people to purchase the packages.
TOUR PLAN FOR THE MAJOR DESTINATIONS OF FRANCE
FASCINATING VIEW OF MONT SAINT-MICHEL (1 DAYS)
Paris (2 days)

Beauty of Strasbourg (1 DAY )
ICONIC BEACHES OF SAINT TROPE Z(1 DAY)
Figure 1: Tour Plan for the Major Destinations of France
3.2 Ssuitability of alternatives to a traditional brochure for different types of tour operator
It is witnessed that traditional brochures where made in form of leaflets and pamphlets
that were circulated in targeted market. There are different types of traditional brochures used
these days to increase utility such as in form of bifold or trifold. The customers are provided with
detailed information about important tourist destinations along with its pictures so that they are

easily influences by graphics (Spenceley, 2012). It helps to cover wide area of subject matter for
preparing such brochures.
However, with passage of time it has been witnessed that with digitization of market
operations has generated emerging need of e-brochures. These are created on electronic platform
rather than engraving information on a paper. There are several merits addressed with coming of
e-brochures. On the basis of which now various organizations prefers to use both type of
brochures in appropriate manner according to its suitability. It is determined that e-brochures are
lucrative means of marketing to attract good number of tourists and travelers. Nowadays, an
individual posse many electronic gadgets and broadband accessibility which facilitates them to
access e-brochures from anywhere and anytime (Weaver, 2012). It is handy and feasible
technology to gather information about various tour packages availed by Thomas Cook and other
tour operating companies. The cited organization has planned 5 days tour for Chinese students to
get introduced to prominent destinations of France. They have uploaded the brochure on its
official website and Facebook page from where the students can have an overview about the trip.
The information provided is authentic and important covering all aspects.
So it can be concluded that Thomas Cook needs to adopt both the traditional and modern
approach to avail information to students. The students will be able to access e-brochures in
effective manner while on the other hand during the tour due to portable nature traditional
brochures will be used for better experience (Scott, 2011).
But on the other hand, Cox and Kings which is one of the leading organization of tour
operation industry and it also provides different holiday package to customers. Regarding this, it
uses video broacher which includes a show case of full video of different destination and
associated facilities of the organization which will be offered by the company at the time of
providing services. Therefore, it is also one of the important alternative of traditional brochure
which plays important role in attracting customers in effective manner (Liburd and Edwards,
2010).
3.3 Suitability of different types of distribution used to sell holiday package
Marketing of products and services is a crucial step performed by organizations. Like
other business enterprises Thomas Cook will ensure that details about its tour package is
promoted and distributed to target customers in effective manner. The management will focus on
seeking attention of good number of tourists so that it increases their sales and productivity.