Tour Operation Management: A Comprehensive Analysis Report

This report provides a comprehensive overview of tour operation management, examining the effects of current trends and developments on the industry, including PESTLE factors, conservation efforts, customized holiday packages, and technological advancements. It explores the roles of different types of tour operators, such as domestic, direct sell, inbound, and outbound operators. The report assesses the stages and timescales involved in developing holidays, using a case study of a Thomas Cook tour for Chinese students, detailing research, itinerary development, negotiation, costing, and administration. It also analyzes various methods of contracting and calculates the selling price of a holiday package based on provided cost information, emphasizing the importance of customer satisfaction and effective market research in the tour operation business.

TOUR OPERATION
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Effects of current and recent trends and developments on the tour operators industry .......1
TASK 2............................................................................................................................................3
2.1 Assess the stages and timescales involved in developing holidays .....................................3
2.2 Suitability of different methods of contracting for different components of the holiday and
different types of tour operator ..................................................................................................5
2.3 Calculation of selling price of a holiday from given information ........................................6
TASK 3............................................................................................................................................7
3.1 Evaluation of planning decisions taken for the design of a selected brochure ....................7
3.2 Suitability of alternatives to a traditional brochure for different types of tour operator ......8
3.3 Evaluate the suitability of different methods of distribution used to sell a holiday for
different types of tour operator ................................................................................................10
TASK 4..........................................................................................................................................10
4.1 Evaluation of strategic decisions made by different types of tour operator .......................10
4.2 Compare the tactical decisions that could be taken by a selected tour operator in different
situations ..................................................................................................................................11
CONCLUSIONS............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
In present time, phenomenal growth and development of travel and tourism industry is
showing no sign of any stoppage. Each and every year, growth status of this industry is
increasing in very fast manner. In addition, it highly contributes in the economy of nation. In
tourism industry, tour operation business plays is considered as a very important constituent. In
respect to this, role of tour operator is very important because they are highly responsible to
arrange and provide the various types of services in form of one package (Mowforth and Munt,
2015). In order to meet the requirements and expectation of tourists, they offer services such as
transportation, accommodation, sightseeing, food and beverages etc. Along with the tour
operators, tour agents also play a vital role because they take responsibility of selling the
services. The presents research mainly emphasis on the concept of tour operation management. It
describes the effects of current and recent trends and developments on the tour operator industry.
In addition, report also define the different methods of contracting. Further, it defines the
planning decisions which are taken at the time of designing brochure. It also explores the
different types of tour operators and strategic decisions which are made by them.
TASK 1
1.1 Effects of current and recent trends and developments on the tour operators industry
The operations and practices of tour operator industry get highly impacted by the current
trends and developments. Effects of recent trends and developments are described below as:
PESTLE factors
The changes in external environment affects the functioning of this industry. In this
context, the factors are such as political, economical, social, technological, legal and
environmental. For example, if country has poor political stability than tourist will not consider
to spend their money. The environmental and social factors also plays important role in order to
attract the tourist. The preference of customers also get affected by the inflation, recession, value
of currency and other economic factors (Future trends in the tourism industry. 2012).
Focus on conservation
The tour operators targets to increase their revenue along with the conserving tourist
destinations in country. In order to protect the tourist destinations, non government and
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government firm plays a very important role. This is done because, local people of country can
have their earning source form tourist destinations.
Customized holiday packages
The tour operator industry maintains the flexibility in their services in order to allow the
tourist to obtain advantages from the customized type holiday packages. In order to get the
maximum profit and customers base, tour operators allow tourists to select the tour packages as
per their interest and choice. Through this stem, tour operators are able to deliver the high level
of satisfaction to customers (Murphy, 2013).
Technological developments
In present time, technology is also changing with the time. I this context, development in
technological services also affects the development of tourism industry in positive manner. The
online services play a big role in attracting and satisfying the customers. With the help of this
service, tourist easily make the reservation, selects hotels and airline tickets and many more. Due
to advancement in technology, number of tourist in UK are increasing in effective manner.
Market research
By conducting the effective market research process, tour operators are able to explore
the current trends and development. The research process also helps in outlining the
requirements and demands of customer. By considering customer's demand, they are able to
formulate the effective strategies to fulfil it (Future trends in the tourism industry. 2012).
Customer satisfaction
The main focus of tour operators is to increase the customers base by increasing the
satisfaction level of existing customers. For this purpose, they consider the requirements and
demands of customers at the time of designing the holiday packages.
Function in economy
The importance and value of tourism is increasing day by day in the activities of tourism
industry (Smith, 2012).
In respect to this, different types of tour operators are described below as:
Domestic operator
The domestic tour operator takes the responsibility to design the tour plans for tourist
within a country.
Direct sell operator
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In tourism industry, they basically design tour packages and after that they sell it to other
tour operators or individuals. Without presence of any mediator, most of the people prefer to
purchase the tour holiday packages from them. In addition, they also create attractive tours in
low price as well.
Inbound operator
They mainly target the foreign customers and in order to attract them inbound operators
also offers various services. In this, they offer services start from their arrival in country,
transportation, accommodation, foods and departure (Blanke and Chiesa, 2013).
Outbound operator
In tourism industry, outbound operator offer various types of attractive services to
customers in order to attract and satisfy them. These type of tour operators are highly expert in
creating and delivering the multinational tours to tourists. In this context, they arrange the
services and facilities for customers such as travel documentation, food & beverages,
transportation, accommodation, adventure activities and sight seeing etc.
TASK 2
2.1 Assess the stages and timescales involved in developing holidays
The main motive of tour operator Thomas Cook is to increase the satisfaction level of
tourists by meeting their expectations and requirement. At the time of formulating the tour
activities, it is very important to consider the planning process. As per given case, sightseeing
tour of 5 days require to be create for 15 Chinese Students from London, UK to Paris and France.
This student tour starts from summer vacation in August 2018. The planning process for
designing the tour includes several stages which are described below:
Research
In respect to explore and understand the destinations and tourist market factors, Thomas
Cook essentially requires to conduct research process. The accurate and effective research
process helps the tour operators to design the tour packages in attractive manner. With the help
of research process, they evaluate the several types of needs of customers (Smith, 2014). It is not
possible for them to consider all needs so, they cover the needs which are important and very
common. Through this, they also able to select the attractive destinations form London, Paris and
France.
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Itinerary development
It is a second stage of planning process which helps in creating the guidebook in respect
to holiday tour of students. Basically tour itinerary holds the summary information of entire of
tour activities. In order to determine the important things related to tour such as route, target
destinations, transportation and accommodation etc., this is formulated in effective manner. In
addition, it also defines the period time of tour, features of destinations, departure point, date and
optical activities etc. (Tribe, 2015).
Negotiation
At the time of planning it is very important to contact and negotiate with the vendors and
supplier. The number of both suppliers and vendors depends on the size of tour such as 5 days. In
respect to tour of three places London, Paris and France. In this context, the contacted vendors
will be car rentals, cab, airlines, transporters and sight seeing vendors etc. By doing the
negotiation process, Thomas Cook will be able to get these services in effectual price option.
This process will help in increasing the profits and revenue of cited firm (Mowforth and Munt,
2015).
Costing
In respect to tour of students, Thomas Cook also requires to forecast the cost of entire
journey. In this context, total cost means the overall expanses which will occur in conducting the
tour of 5 days.
Administration
In respect to conduct the practices and activities of tour in effective and manage way,
cited tour operator firm requires to hire the staff members in order to meet the demands and fulfil
the requirements of students (Mason, 2015).
Tour brochure
The brochure of summer vacation tour holds the complete information of 5 days tour
activities. It describes the information such as date, route, list of destinations, hotels and tour
code etc.
In respect to planning Thomas Cook, time-scale which involved in developing summer
vacation tour for 5 days by:
Activities Days
1 2 3 4 5 6 7 8 9 10
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Research process
Itinerary development
Negotiation
Costing
Administration
Tour brochure
2.2 Suitability of different methods of contracting for different components of the holiday and
different types of tour operator
In respect to design the 5 days tour for Chinese students, tour operators make the various
types of contracts. In this context, contracts are such as sales only and fixed contract. In this,
fixed contract takes place when any firm ensure about the optimum utilization of revenue and
maximisation of revenue. In this, tour operator fix the accommodation and transportation
facilities in advance manner. They are mostly made by the both outbound and inbound tour
operators. Further, tour operators make the sales only contract in order to design the attractive
tour packages. In this type of contract, tour operators specifically focus on the requirements and
demands of the customers (Goodall and Ashworth, 2013). This type of contract is beneficial for
the tour operators because it6 reduces the chances of over booking the tickets and other services.
The specialist and domestic tour operators usually made the sales only contract. In respect to
this, suitability of two methods of contracting for different components of summer vacation
student tour are described below with the different types of tour operators.
Attributes Domestic Specialist Inbound Outbound
Area
specialization
This type of tour
operator basically
create the tour
package within
The specialist
tour operators are
also known as
Ground tour
In tourism
industry, they
mainly target the
foreign
These type of tour
operators in
tourism industry
specially create
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the country's
boundary (Hall,
Timothy and
Duval, 2012).
operators. They
are considered as
an expert in
respect to creating
and selling the
tour packages.
customers. Ion
addition, to
increase the
satisfaction level
of customers,
they also offer the
wide range of
services.
and plan the
multinational
holiday tour
packages.
Package for
holiday tour
Regular Ad Hoc Tour
Package and
Regular
Regular and Ad
Hoc Tour
Package
Regular and Ad
Hoc Tour
Package.
Type of contracts Sales only
contract
Sales only
contract
Fixed contract Fixed contract
The above discussion of two contract defines the method of fixed contract provides the
various types of benefits to tourists such as ensure about availability that contract design in
advance, high discount and pre decided levels for firm as well. In addition to this, the sales
contract method enable the tour operators to minimize the overall wastage (Gretzel, Wang and
Fesenmaier, 2012). This helps in avoiding the extra paying of unused services and capacity. So,
this method is also beneficial for tour operators because it reduces the risk of loss.
2.3 Calculation of selling price of a holiday from given information
The current tour package is of maximum 5 days to London, UK, Paris and France. This
sightseeing tour project is for 15 Chinese students. In respect to this, Thomas Cook travel firm
has the established network for partners in France and in addition special rate has also been
proposed by St Michelle Hotel. According to given case scenario, transportation budget is of
£1000 for a 2 seater luxury coach. In this, two drivers, fuel, road and ferry taxes are also
included.
In respect to the given information in case scenario, the calculation of selling price of a 5
days tour for 15 Chinese students are described below as:
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Services Cost (In £ ) Total Cost (In £ )
Hotel accommodation (for 2 people) 60 4800 (total 8 rooms)
Supplement for BB (per person) 10 750 (15 people per day)
Transportation 1000
Tour guide in Paris 200
Total cost 6750 (Per head 450)
Profit (10%) 675
Selling price 464 7425
From the above calculation it is articulated that after setting profit margin of 10%,
calculated selling price is £7425. Considering the overall calculation being done it has been
identified that selling price of service must be 7425£ and by offering the range of service at this
price it is possible to recover the major expenses. Apart from this, the major expenses can be
recovered easily if in case this selling price has been set by business. Moreover, organization is
required to increase price range so that costs can be recovered easily and it can allow in earning
higher profits. Overall hotel accommodation charges are quite high and due to this reason selling
price has been enhanced. Further, transportation expenses are also major one which has lead to
price rise. In order to lower down the selling price it is necessary to control major expenses so
that more benefits can be delivered to customers associated with the company.
TASK 3
3.1 Evaluation of planning decisions taken for the design of a selected brochure
According to given case scenario, while working with the team of marketing department
of Thomas Cook. In this context, the main motive of firm's marketing department is to convey
the information to customers. In this, to convey information and sell the holiday packages, both
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online and offline methods are very effective. In the travel and tourism industry, basically
concept of brochure is used to for the motive of conveying information and selling the summer
vacation packages. The designing of tour's brochure basically requires the proper research,
planning, implementing processes, organizing and monitoring. In respect to this holiday package,
planning decisions which are considered by Thomas Cook for designing of brochure are
described below as:
Finding of planning issues- In respect to the current project of summer vacation tour from
London, UK, France and Paris, Thomas Cook essentially requires to determine the planning
issues. In respect to this, the planning issues are related to suitable time of designing, organizing
tour, selection of destinations, transportation and accommodations. At the time of planing the
several types of decisions, the above described points are essentially required to be focus. In this
context, the suitable date and time will also be considered as an important point at the time of
designing tour brochure (Wilks, Stephen and Moore, 2013).
Format of brochure- According to given case scenario, the summer vacation tour is basically
organizing for the 15 Chinese students. In respect to this project, brochure of tour form London,
UK, Paris and France requires to be more effective and attractive. The brochure tour holds the
information related to the some important information such as time of assembling, departure
time, date, point, name of hotel, address, list of destinations, selected route and contact numbers.
Selection of target market and budget finalization- After taking decisions related to formation
of tour brochure, Thomas Cook travel firm requires to select the 15 target students. In this
context, budget related decisions is very important. The budget will be considered at the time of
creating the new brochure of summer vacation. In respect to the preparation and decision related
to budget, few areas will be consider such as advertisements, promotion, printing of brochure
and selection of services etc. (Xiang, Magnini and Fesenmaier, 2015).
Print specification- After finalizing the content and information which will be present in
brochure get finalized. The next decision takes place in respect to printing of brochure related to
present tour project. In this context, at the time of placing order related to printing of brochure
few things are required to be focus such as font color, style, size, accuracy of content,
background of color, quality of paper which is selected for brochure and design etc. After
placing the order of tour brochure, Thomas Cook requires to register the brochure under the
Copyright Act (Gretzel, Wang and Fesenmaier, 2012).
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Launching of brochure- This is a last decision which required to be consider by Thomas Cook
because relates to the launching process. In order to effectively launch the brochure among
students, cited firm requires to use the several effective ways. In this, cited firm can use the
facilities and services of Internet and distribution mediums (Holloway and Humphreys, 2016). In
this context, distribution mediums can be use such as Television, Radio, Newspaper and posters.
Along with this cited firm can also promote the brochure on social networking cites, web portals,
podcast and websites. By using all these options, cited firm will be able to effectively launch the
brochure of Summer vacation tour of three places.
In order to attract the student customers in effectual manner, Thomas Cook requires to
design and launch the brochure in attractive manner. By effectively launching the brochure, cited
travel firm will gain two advantages such as in low cost Thomas will be able to reach large
number of people.
3.2 Suitability of alternatives to a traditional brochure for different types of tour operator
In order to promote and launch the products and services in front of public, traditional
methods were mostly used in the previous time. In that timer period, traditional methods were
the only mediums in order to convey the information. In the previous time, brochure method was
one of them. After changing with the time, technologies also get developed and modified. The
new advancement in technology influence the tour operators and agents to adopt and use the
modern technological services. In this context, two tour operators Thomas Cook and Airtours
uses the different types of methods in order to attract the customers (Buhalis, Longhand
Vitouladiti, 2014). The brochure is also of two types such as physical and online designed. From
tourism industry, it is observed that to convey the information to large number of customers, E-
brochure is quite effective as compare to physical one. In this context, Airtours uses the online
method whereas Thomas Cook uses both physical and online methods. Both methods are
beneficial for the tour operators. Thomas Cook gets the double profit as compare to Airtours
because cited firm launch both physical and online brochure which helps in attracting large
number of customers (Xiang, Magnini and Fesenmaier, 2015). Due this reason, Thomas Cook
will be able to promote the Summer vacation tour, 2018 in effective manner. In respect to this
alternative methods which are used by two operators Thomas Cook and Airtours are described
below such as:
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Videos- This method is used by both firms, in this tour operator make the video which describes
the features of tour package. In order to attract the customers, Thomas Cook also uses their
language along with the English. In addition, Thomas Cook also define the video of existing
customers who already uses the facilities of earlier tour package. In the video, people described
their memorable experience (Chort, Choi and Kibicho, 2013).
Television and Radio- In respect to attract students towards the summer vacation tour, both
Thomas Cook and Airtours create their commercial aids. Both firms make their commercial aid
in attractive manner in order to catch the attention of people. In present time, for the purpose of
entertainment many people watch television and listen radio. So these two mediums are very
effective in order to attract the customers (Erskine and Meyer, 2012). In the advertisements,
both firms can describes the beauty of destination and attractive activities etc. by using these
mediums, both firm attract the customers towards their products and services related to holiday
packagers.
Physical posters- This type of method is basically uses by Thomas Cook. In order to promote the
product, cited travel firm promote their services through banners and posters. This medium is
also effective in order to increase the awareness of people with the help of this medium, both
firm usually upload information about tour packages in terms of PDF, images and video format
(Chan and Tay, 2016).
3.3 Evaluate the suitability of different methods of distribution used to sell a holiday for different
types of tour operator
In order to convey the information to large number of people, brochure method is very
effective. In both the present and past time period, brochure method is considered as a very
effective and useful medium. In present time due to advancement and modification in
technological services, the preparation and design of brochure has effectively become technology
oriented. Along with the above described medium, there are few other distribution mediums are
also present which can help in selling the tour packages in effective manner. In this context,
suitability of different available methods of distribution are described below which can be used
in order to sell the holiday tour packages:
Internet services- In this medium, Thomas Cook can use the tools of E-mail marketing. In this
context cited travel firm can convey the information through websites and social networking
sites. This method is considered very time and cost effective and its outcomes are also good. In
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today's world, many people are highly active on social networking sites and they also surf the net
in regular basis (Anastasiadou and Migas, 2013).
Travel agents- In tourism industry this method is generally used by the domestic and specialist
type tour operators. In respect to this, Thomas Cook can make the agreement or contract with
tour agents for the objective of selling tour packages. In order to satisfy them, cited firm can also
set the some amount as a commission on the sake of every ticket (Xiang, Magnini and
Fesenmaier, 2015).
TASK 4
4.1 Evaluation of strategic decisions made by different types of tour operator
In day to day business operations, several types of decisions are taken by the tour
operators in tourism industry. In this, decisions which are common relates top pricing, designing
of tour, selection of destination, evaluation of target customers and negotiation with suppliers
etc. All these types of decisions are directly related to the growth and development of firm. In
respect to this. Strategic decisions which are made by two tour operators such as Thomas Cook
and Cox & Kings are described below. In this, Thomas Cook is a mass tour operator whereas
Cox & Kings are specialized tour operator.
Positioning and branding
The positioning statement are very important for the business, in this both firm requires
to analyze that their statements are effective and appropriate or not. It is observed that both firm
focus on their branding and positioning. In this, they both create effective positioning statement
in order to influence the customers to use the company's product and services. In respect to
Thomas Cook, after introducing the summer vacation tour, it is essentially requires to focus on
positioning and branding strategy (Luo and Huang, 2015).
Pricing strategy
The decisions related to pricing strategy are considered very important in the business. In
this context, tour operators requires to set the appropriate prices of tour packages (Pricing
Strategy for Tourism Business. 2010). This is essentially requires because prices of products
attract the customers towards the products and services. Both Thomas Cook and Cox & Kings
uses the fixed pricing strategy but sometimes they also allow the customers to select the services
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ad on that basis prices are set. Thomas Cook offer the high quality services to customers in
reasonable prices.
Distribution
Both firm uses the effective mediums in respect to the distribution of products. In this
context, Thomas Cook uses both online and offline methods whereas Cox & Kings rely only on
online methods. By using these mediums, firm will be able to create strong distribution network
(Mowforth and Munt, 2015).
4.2 Compare the tactical decisions that could be taken by a selected tour operator in different
situations
In order to run the business operations in effective manner, tour operators takes the
several types of tactical decisions. The tactical are taken by tour operators to improve the
efficiency of services, expansion of business, increment in sales and prices of tour packages.
Along with this, some decisions are also made for development of strong distribution channel,
marketing activities and maintaining strong relationship with target and existing customers. In
respect to Summer vacation tour 2018, Thomas Cook can make the contract with UK's airlines
(Schwarz, Truniger and Stettler, 2013). The contract can be form in respect to convenience level
of customers. For this purpose, Thomas Cook requires to carry out the meeting with airline
companies for discussing several things. Cited firm can also use the joint venture option
(Decision-Making Tactics and Contextual Features: Strategic, Tactical and Operational
Implications. 2010). In respect to summer tour. Cited firm will take the tactical decisions in
respect to explore and consider the needs and expectations of target customers. Along with this,
cited firm also requires to make the decisions for improvements in strategies and services. In
this, cited firm modify their web page, explore new destination, add more adventures activities in
tour and modify customers handling process in effective manner (Swain and Mishra, 2012).
Through all of these, performance and sales of cited firm will be increase in effectual manner.
CONCLUSIONS
With the help of present research report it is articulated that in travel and tourism
industry, tour operators plays a very important role. The tourism industry also get affected by the
current trends and developments. The development in services and technology is very beneficial
for the tourism industry. Along with this, it also describes the preparation of brochure and its
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importance in tourism industry. In addition, to run and maintain the business operations in
effective manner, several types of tactical decisions are also made. The report also describe the
importance of various types of distribution mediums.
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