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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The proposed tour is for 42 students for 5 nights.
The cost of one room is 96 Euros/person for 5 nights=480 Euros/person
1.12 Euro= 1 Pounds
480 divided 1.12=428.57 /person
42 students multiplied by 428.57= £ 18.000 all accommodation.
Calculation of transportation cost: the cost of luxury coach in which cost of two drives, road tax,
ferry tax, fuel cost in involved.
Luxury coach £11.200
Accommodation £ 18.000
A local tour guide £ 945
All tougher: luxury coach (£ 11.200), accommodation (£ 18.000) and a local tour guide (£ 945)
=£30.145, total cost.
Details Price (in £)
Accommodation cost £ 18.000
Transportation cost £11.200
Charges of tour guide £945
Total cost £ 30.145
Add: Profit margin @ 33% £9947.85
Total cost including profit for 42 students £ 40,092.85
The selling price of the tour package and the price /person is £ 40,092.85 divided by 42 students
=£ 954.59/student.
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TASK 3
3.1 Planning for designing brochure
In the tourism business or some other industry there is required to educate their clients
about the necessary items and administrations of the business. Leaflet is a report containing
thorough and relative data to expand request. This is a strategy or system for promoting which
includes minimal effort and its scope is expanded (Khairat and Maher, 2017). Pamphlets can be
appropriated on the web or disconnected. Digitalization and enhanced advancements are
expanding the scope of the leaflets.
Issue recognizable proof for creating pamphlet: The issue must be distinguished before
the advancement of handout. The issues which ought to be considered are showcase division,
choosing the objective market, configuration of the handout, data to be talked about and time
point of confinement of execution of the leaflet. Key basic leadership ought to be there which is
finished by examining and looking at all the accessible alternatives.
Organization of the pamphlet: Brochure is the orderly archive of data which is an
organization want to transmit to the entire society. There are incorporated many areas and sub-
segments in a pamphlet and data is isolated in fragments, which makes it more alluring and
reasonable. The arrangement of the handout must be outlined by the objective market. The data
must be in the arrangement given underneath.
 Name of the tour administrator organization.
 Method of conveyance.
 Travel goal and tour itinerary which consist of cost of specific holiday packages.
 Settlement and supper offices.
 Cost of the journey package with clarified appropriation.
 Every one of the conditions and different charges relevant.
 All the lawful prerequisites to be satisfied.
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Planning and choosing target market: Before issuing the leaflet the financial plan and
the objective market ought to be characterized. The market division is finished by breaking down
the request of various clients and the objective market which is the most reasonable for the visit
administrator organization is chosen (Lenahan, 2011). Financial plan can be characterized as the
spending energy of various clients because they are act as a key factor for choosing the business'
items and administrations. The objective customers can be recognized by breaking down the
financial plan.
Time scales for finishing of stages: Brochure must be outlined in a given time frame
because it is indispensable for the promotion of the tour administrator industry. It is incorporated
into the arranging procedure which is a key strategy for basic leadership. Every phase in the
growth of leaflet are characterized a most extreme time restrict and managers are responsible to
accomplished in in minimum time duration.
Brochure designing is important as they are a stronger tool for marketing purpose. It
helps in interacting the target customers and help communicating the organisation. Brochure
include both sound and content and proper arrangement of these two can give more efforts on
advertisement of the products. It also represents the organisation in an extensive manner.
3.2 Alternative to traditional brochure for various types of tour operators.
There are several alternatives available along with the traditional ways to design a
brochure. Tour operators can use such methods in order to communicate their holiday plans with
their customers. Such alternatives include different promotional programs for promoting holiday
packages. These techniques are sales promotion, personal selling, advertising etc. Traditional
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brochures could be replaced by websites that are designed by firms in order to interact with
customers in effective manner. There are some pros and cons of these alternatives-
Online brochures
This could increase sales of Trail finders as it is most popular alternative in recent times. It is
a better and cost-effective method of marketing as there is no requirement for paper and printing.
Along with that, large segment of consumers can be targeted in less time (Luis, Dolinskaya and
Smilowitz, 2012).
Video and virtual brochure
Selling of holiday package is an important activity that is required to create better image in
minds of consumers. Best method in this scenario could be making videos that could be helpful
in doing amazing work in assisting clients for taking quick decisions related with holidays. This
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will also reduce the activities of reading and searching details from internet. These videos can
also be posted on social media as most of the population is active on these platforms. Video
brochures are mostly preferred by the consumers as they grab the attention of the consumers
towards them. They are interesting, attractive, amusing and more effective than motionless
images or photos.
E- brochures: - According to this term it has been understood that an organization may
use advanced technology of handouts in order to seek the attention of various standard
individual. In fact, most of the youngsters get addicted towards modern equipment’s due to its
features or additional benefits.
Internet: - Designed through online services in order accomplish it in a minimum time
period.
3.3 Suitable methods of distribution used to sell a holiday packages
Therefore, company Trail finders is that which try their level best to satisfy the needs and
wants of millions of customers which help firm to gain the maximum benefits and profit. The
company is going to market themselves by using the promotion technique or method for their
holiday packages. Hence, methods are as follows:
Brochure distribution strategy: Although such kind of method is the most established
method which is being used by company to offer holiday packages and it has been taken out by
Sir Thomas Cook in almost 1953 (Martinez, Stapleton and Van Wassenhove,Moutinho, 2011). In
the brochure, every information is provided of company through which customers can perceive
about firm in proper way. It is almost like similar to books which offers many other choices in
books for customers.
Website system: This is the innovation and creative idea which encourages tour packages
which includes utilization of instruments and like email, sites leaflet and the online networking
which bring image of company in customers eyes in right way. As, millions of people is using
internet which is being effective and it is being utilized in many countries because many features
and innovative things is being introduced by such. In general, every business is using website
system to become famous and feel they are very useful instead of using physical pamphlets
sometimes become failed to deliver in right manner.
Direct selling: Marketing team makes various decisions regarding which is being used to
offer the tour packages within the enterprises to the employees who are working in effective
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way. Direct selling of tour packages is a time-consuming process and takes a lot of effort of
marketing team.
Middleman technique: Middleman or the agents are those which help company to earn
higher profits as they work in different manner and they provide various satisfaction level to
customer as well which cannot be provided by this method like site circulation process. The
middleman help in bringing the deal because the operator has the whole information about the
data and they provide such unique thing to clients which make them to have immediate choice in
different tour and packaging (Naji-Azimi and et. al., 2012).
As website system is the most effective technique as in such the time consumption is less
then direct selling and website technique takes few minutes to look at the packages offered by
company and whole information as well can be gathered from there only. Technique of direct
selling is used at a time when a new firm is established in market.
It has been assessed that number of techniques are identifies which is used by company to
distribute their holiday packages across the international boundaries as well as at global level.
Therefore, it may direct transaction such as; websites or involvement of third party, review sites,
online travel agencies and other additional tools which is useful in advertising things.
TASK 4
4.1 Strategic decisions made by various types of tour operator
Strategic decision is that which help the company to work in effective and efficient way,
which make firm to achieve their goal and objective in proper manner. Decision are made in
multiple criteria so that they can face any type of situation (Robinson, Heitmann and Dieke,
2011). The various strategies which is being adapted by tour fir as they are follows:
Demand forecasting: The demand forecasting is made after receiving information of
market and decision is made by operator according to future demand service. The future demand
can be estimated with the help of current demand which could affect in near future. Although
such forecasting is made to provide effective service to customers according to their needs and
wants (Wu, 2012).
Target market and positioning: The company target those customers as those who can
spend a huge amount on their travelling to different places. Normally, the tour operator to make
strategies according to demand and need of customers. Packages are too designed according to
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such and make them to by holiday packages and provide the satisfaction that they will give
various facilities to customers.
Strategy of pricing: According to the strategy made the tour operator help company to set
the effective prices (reasonable prices) which make customer to buy the holiday packages in
comfort manner, because high priced packages are not normally sold out. Over to face
competition they have to fix the price according to at what price the customer can buy their tour
packages.
Discount pricing strategies: The tour operator works according to the change in
environment and tell company to provide tour packages on discount so that firm can attract many
customers towards them to purchase. In such firm reduces their cost and try to influence the
customer and somewhere make new policies on their prices (Ronen, Pliskin and Pass, 2012).
Such thing help company to earn higher profits and make themselves stable in market for longer
period.
Consumer relation: Generally, the company tries to provide their service to customers in
the minimum prices so that they can motivate the customers to buy their holiday packages.
Although firm try to bring trust in between firm and customer, this type of strategy helps in
retaining their current customer and attracting future customers towards them which help firm to
create a goodwill in the market. All such thing includes providing health and safety measures and
making and bringing satisfaction among customer that they are going to provide services
according to their needs and wants.
Strategic planning involves the process of standard planning of objectives, goals, values
and mission of the organisation. It is important to plan strategies in effective manner so that the
work can be done in a proper manner which produces highest results. Tour operator uses above
strategies to plan their work so that they can provide best services to the customers.
4.2 Tactical decisions taken by selected tour operators
Tactical decision is made normally to implement the strategic decision in company.
Although this decision is for the shorter period, over various short-term decisions are there which
is being made in day to day activities and operation in the firm (Scherrer, Smith and Dowling,
2011). Hence, these decisions are made for the smooth functioning of firm and can be able to
implement their business activities in proper manner. Various arrangements are also being
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provided to customers like accommodation for, food and other facilities, made negotiations and
providing services etc.
The administrator has to choose some strategic choices while managing and handling the
contradict situations in firm. Some of the strategic choices which are made as follows:
 The company is making new policies and innovation in their services like they will not
take cash or will not allow to make expenses for kids under fifteen.
 The firm trail finders have made a policy that they will not accept the credit card from
customers as master card is not applicable to buy the tour holiday packages in effective
way (Direct and Indirect Marketing Methods and Distribution Channels, 2015).
 Firm will provide the services at low cost in comparison with other company so that they
can attract the large pool of customers towards them and make innovative things to make
them permanent customers for the longer period and they will pull substantial travellers
make an augmentation in their uniqueness.
 A trail finder is that who provide extra services to their customers so that they can
become satisfied with firm services. Extra esteem like protection for them and giving
them discounts etc. is provided. All such services will be provided to customer if they
make payment of their tour package before the month they going to make check-in (Tigu
and Calaretu, 2013).
Tactical decision is made by company to compete with other firms of tour packages.
There are various tactical strategies in packages provided by the Trail finders some of those
which are as follows:
Pricing strategy: Somewhere the financial condition of company is sounded which bring
criteria in perfect manner. The firm provides economic services and tour packages although with
the discount mannerism which attracts millions of people to buy their holiday packages. The
company mainly focuses on providing better services to customers rather focusing on the making
profits on higher level (Wang, 2012). Students are their customers thus, proper attention should
be made regarding delivering high quality services and satisfy their needs and demands. There
can be critical conditions that can be face by TrailFinder regarding pricing issues and has to be
managed efficiently.
Currency rates: Although the company is working worldwide and they are meeting with
many other people of many countries. So, it is required by Trailfinder to deal with their clients
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according to their currency and provides packages which is being according to their currency
rates. This refer to devising such strategy that can able to deal with changes in current rates. As
students are from London, UK and are travelling to Brussels, Brugge and Belgium therefore,
currencies have to be exchanges that prevails at particular place. This bring satisfaction level in
their customers that they care for their customers in proper manner. Sometimes there are
fluctuation in rates of the currency as for such fluctuations, the Trail finders make tactical
strategies which help company to face challenges and fluctuations and makes them to earn
profits as well (Tour Operations Management, 2014).
CONCLUSION
From the above report it has been summarized that several number of competitors are
emerging in tourism industry because this sector act as a major source of generating maximum
return on their investment due to increment in consumer demand. Thus, main objective of this
assignment is to focus on tools or techniques which is adopted by travelling company while
running their business operation. Trailfinders is one of them who are engaging in facilitating
domestic as well foreign consumers by introducing number of impressive holiday packages
which consist of necessary facilities whatever an individual may require while trip. Along with
this learner should also get aware about several other promotional or distribution method such as;
brochure, pamphlets and so on. Hence, it is identified that selected firm was adopted an effective
mode of promotion that is; brochure which is designed by them in most appropriate includes
necessary requirements, information about trip, place, additional benefits etc. At last, methods of
taking tactical and strategy decisions was also mentioned in this assignment for understanding
the management of tour operators.
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