Tour Operation Management Report - Unit 14, Semester 1

This report delves into the intricacies of tour operation management, examining the impact of current trends and developments within the industry. It analyzes the stages and timelines involved in holiday package development, including methods of contracting for various components and the calculation of selling prices. The report also explores the planning and design of brochures, comparing traditional methods with alternatives and evaluating suitable distribution methods. Strategic and tactical decisions made by tour operators are also discussed, providing a comprehensive overview of the factors influencing the success of tour operations. The report uses Trailfinders as a case study, offering practical insights into real-world applications within the tourism sector, including the development of educational tours.

Tour Operation
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................2
1.1 Effects of current and recent trends and developments on the tour operator's industry…...2
TASK 2............................................................................................................................................7
2.1 Stages and timescales involved in developing holidays.......................................................7
2.2 Suitable methods of contracting for different components of holiday and tour packages....9
2.3 Calculation of selling price.................................................................................................10
TASK 3..........................................................................................................................................12
3.1 Planning for designing brochure.........................................................................................12
3.2 Alternative to traditional brochure for various types of tour operators..............................13
3.3 Suitable methods of distribution used to sell a holiday packages.......................................15
TASK 4..........................................................................................................................................16
4.1 Strategic decisions made by various types of tour operator................................................16
4.2 Tactical decisions taken by selected tour operators............................................................17
CONCLUSION..............................................................................................................................19
REFERENCES..............................................................................................................................11

INTRODUCTION
Tour operation management involves in handling various unique or impressive holiday
packages in order to facilitate their customer by offering necessary requirement. Now-a-days
number of individual are very curious to roam around the world for experiencing number of
things or due to various other reasons (Barratt, Choi and Li, 2011). Thus, because of this
travelling companies are growing in a fastest way and coming with numerous of ideas for
satisfying their desired customers. Trailfinders is one of the largest travel organization in
European marketplace and Ireland by having almost 29 centres in UK. Basically, their main
objective is to serve their customer in best manner by offering them essential facilities while
travelling from one place to another. This assignment is mainly classified into various parts for
explaining various factors which have a greater impact on a success of tourism industry. Initially,
current or recent trends is going to highlighted for understanding the necessary changes which is
required in travelling company. Along with this, various methods of distributing holiday package
which is designed by product development team of selected firm. Moreover, an appropriate
process of framing impressive brochure is also outlined in this project in order to capture
attention of millions of consumers. At last, various tactical or strategic decisions which is made
by tour operators is also explained in this assignment.
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TASK 1
2

3

4

5

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TASK 2
2.1 Stages and timescales involved in developing holidays
Being a group member of product development team, it is indispensable to understand
the demand or requirement of students in order to make plan or strategies according to their
choice. According to given scenario it is essential to design an impressive holiday packages for
desired customers by considering relevant information or data. Basically, it is not easy task to
frame a trip for large group because it requires suggestion from experience or expertise person so
that they can accurately forecast the future. As a result, it helps in identifying choice or need of
every student whosoever are going for an educational trip. Generally, planning is initial phase in
which strategy is going to designed on assumptions basis and make an official document which
is presented in-front of the consumer (Dietz, 2011). Therefore, it has been analysed that various
factors or stages are followed by selected company while formulating a holiday package is
mentioned as follows: - Investigation of destination: - Initially, as a team member of product development it is
essential to research or identify an appropriate place for trip in order to plan overall
strategy as per need or requirement of specific destination. For example; in given case
study almost 42 students are planning for educational tour from London to Brussels and
Brugge in Belgium. It means their destination is already decided.
 Preparing some tour itineraries: - After selecting an appropriate place it’s time to
design an effective travel guidebook which consist of amount that is going to incurred
while travelling from one place to another ((Cook, Hsu and Marqua, 2014)).
Educational packages (5-night 6 day)
(900 euros) with necessary inclusive.
Luxuriousness 48-seater coach (additive benefits)
 Homely seats
 Water facilities
 Air conditioner
 Convenience of nutrient and foods.
 Recreational activities such as; games, TV, laptop.
Stay in Luxurious hotel: - Marriott hotel
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 Breakfast, lunch and dinner.
 Welcome drinks (free from alcohol).
 Dual bedroom sharing with two grown-ups.
 24 hours hot and water.
All the additional facilities whatever required during journey.
Above data plan shows roughly estimation of budget or capital which might be incurred
while travelling to informative trip. Negotiation: -After assuming a fund its time to discuss with customers in order to
convince desired clients towards defined offered. In fact, they are responsible for
controlling prices of holiday packages by making some positive relations with their
suppliers such as; hotel industry, transportation facilities etc. (Evans, Stonehouse and
Campbell, 2012). Cost determination: - The following stage is to evaluating the price of tour packages
considering overall components and factors that have some greater impacts on estimation
of packages such as; foreign trade rates, value of fuel and tax collection system of the
nation. In fact, it has been assessed that costing is settled at least ten months previously
the occasion dates. There are varieties in journey packages with various costs to fulfils
requests of a wide range of customers. Pricing takes most extreme one month after
fruition of the transaction procedure. Marketing of holiday packages: - According to this factor, it considers as one of most
critical process in which quality of items and its highlights is passed on to entire public
or target group in order to capture the attention of numerous customers. It fuses different
tools or techniques such as; publicizing, storing and pamphlet advertisements and so on.
This procedure takes around 3 – 5 moths least.
 Execution of a tour: - It is the last stage in which arrangement and prices of tour
packages is going to present in front of the consumers or implemented (Grant,Wong and
Trautrims, 2017). This is administrated or managed by head that attempt schedule
process too.
 Creating the brochure: - As per this factor an organization need to design some attractive
handouts to capture the minds of millions of customers. Along with this it aids an
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enterprise in representing corrective information about trip or holiday packages to
consumers which aids in decisional process of clients.
 Advertising: - An association use different technique of promoting company products or
services across the international boundaries which helps them in increasing their sales as
well as profit.
2.2 Suitable methods of contracting for different components of holiday and tour packages
Trailfinders is one of the popular association whose main motive is to serve customers
while travelling by offering them necessary facilities and tries to satisfied their needs or
demands. As a team member of product development, it is essential to adopt effective method of
making contracts as per situational demand in order to attain objectives of an association.
According to given scenario it has been analysed that there are 42 students who are wishing to
travel on informative trip in a minimum budget in order to gain necessary things which is helpful
for them in their future (Guo and He, 2012). Therefore, selected firm is engaging in various types
of contracts as per consumer demand. Hence, two methods of contracting are mentioned as
follows.
Fixed contract Sale on contract
This contract is a kind of agreement which is
for a specific settled term and will end after the
period closes. In visit operations, this sort of
agreement is implied for augmenting the deals
and the administrations which will be un-
utilised will be not be reimbursed back by the
specialist co-op in light of the fact that visit
administrators buy benefits in mass to bring
cost adequacy. For e.g. the tickets are reserved
for 50 individuals yet just 48 seats are used,
however the entire adjust of cost is to be paid
to the specialist organization.
On contrary to this, Sale just contract is the
agreement in which administrations are sold at
higher costs as compare to settled contacts.
These contacts are made based on requests and
prerequisites of the clients. There is no danger
of un- usage on the grounds that the instalment
is improved the situation the administrations
which are used by the voyagers. For e.g. 45
beds are reserved for 45 understudies and
instalment is improved the situation the same.
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. After considering these two modes, it has been understood that sale on contract is
applied while dealing with individual whereas fixed contract is suitable at the time of demand in
bulk (Hoyos, Morales and Akhavan-Tabatabaei, 2015). By dissecting the two kinds of
agreements it has been stated that high hazard supports in maximizing return on the investment.
Thus, fixed contracts consist of maximum risk and give tremendous discounts and gainfulness
and if there should be an occurrence of sale on contracts there is absence of risk which prompts
high costs. It is clear from both the terms that each kind or strategy of contract have its own
particular legitimacy and negative mark like Fixed contract gives maximum discounts which
brings down the expenses of the holiday packages however on account of offer just get, lack of
payment must be made for the services which are not utilized. It just concentrates on the clients
which utilizes the administrations. As Trailfinders have to set up educational tour for adult
students therefore, they have to evaluate diverse methods that is adopted of contracting. The two
methods of contracting that are discussed above have to evaluated effectively and efficiently so
that final aim can be accomplished of making students comfortable and happy with the services
that will render during trip.
2.3 Calculation of selling price
According to given scenario, it has determined that students of European Community are
wishing to travel on acquisition trip that is from London to Brussels and Brugge so that they get
succeeded in gaining something different or new in order to experience about particular place.
Additionally, they are trying to design an impressive schemes or techniques to plan an affordable
informative journey of 5 nights by attentive towards necessary elements or components which is
indispensable to include. However, Trailfinders is a one of the popularize organization in tourism
industry whose main objective is to offer affordable holiday packages to their desired or loyal
customers in order to create a positive connection with customers (Kerzner, 2013). Along with
this they are also having very good relations with dealers or competitors located in Belgium. As
a result, it aids them while booking a tour. Consequently, product enhancement group of a
referred organization is framing a splendid journey for around 42 candidates by preferring their
need or budget and offers exception discount because they are coming with bookings in bulk.
Therefore, they are trying to identified accurate costing of overall package by utilizing
indispensable expenses which will be incurred while tour.
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