Tour Operation Management Report: Pricing and Contract Analysis

This report provides an overview of tour operation management, focusing on the stages involved in creating holidays, pricing strategies, and contracting methods. It begins with an introduction to the tour operator industry and the regulatory body ABTA. The report then delves into the details of an all-inclusive tour, including cost breakdown and pricing calculations, considering profit margins and selling prices. It explores the stages and timescales involved in developing holidays, from market research and planning to advertising and post-tour management. Different methods of contracting, such as fixed contracts, allocation, and ad-hoc contracts, are discussed. The report also includes a calculation of the selling price of a holiday, considering accommodation costs. The report concludes that the tour operation sector is a vital part of the travel and tourism industry, attracting tourists to various destinations. The report is based on the scenario of working for LCB Tours as a Tour Coordinator and preparing a leaflet for the product development team to ensure they understand the effects of current trends and developments in the industry.

Tour Operation
Management
TASK 2

Cover Content
 Introduction
 Regulatory Bodies
 Details of All-inclusive tour,
 Timescale
 Methods of contracting
 Information about hotels
 Selling price of holiday
 Conclusion
 References

Introduction
Tour operation management is considered as an evaluation
of tour operators and their related aspects within travel
and tourism industry which is one of the fastest growing
sector in UK on the basis of the revenues generated every
year. Holiday Inn, a tour operator of UK is taken for the
purpose of understanding aspects related with stages and
timescales involved in developing holidays.

Regulatory Bodies
ABTA has been a trusted and well-established travel
brand for approximately 65 years, providing advice
and lead to the travelling public, as well as guiding the
travel sector in helping high service standards,
promoting responsible tourism at home and abroad.

Details of All-inclusive tour,
Details Price(in £)
Accommodation cost 9000
Transportation cost 11200
Charges of tour guide 945
Total cost 21145
Add: Profit margin @ 33% 6977.8
Sale price 28122.5

Public Relation
 Public relations is identify as a planned process or
activity to influence public opinion, via proper
performance, sound character which is based on
mutually satisfactory two-way communications.
 Public relations is a strategic and effective
communication process that make mutually beneficial
relationship between enterprises and their public.

Stages and timescales in developing
holidays Market research
 Planning and scheduling
 Contracting
 Costing the holiday
 Financial evaluation and pricing
 Creating the brochure
 Advertising
 Operation and execution
 Post tour management

Different methods of contracting
 Fixed contract
 Allocation
 Ad-hoc Contract

Calculation of selling price of a holiday
Accommodation cost: 96*1.12=2016
96/1.12= 85.7
85.7*21= 1800(For One night)
1800*5= 9000(For 5days) From the above calculation,
cost of food is not included while maing calculations of
selling cost. Thus, in this selling cost is £28122.5.
For Per person:
=28122.5/21= £1339.18

CONCLUSION
It has been concluded from the above project report that tour
operation sector is a valuable part of travel and tourism
sector which supports maximum efforts in attracting large
number of people tourist at particular destinations in
particular nation.

REFERENCES
Aoyama, K. and et. al., 2013. System and method for
distribution chain management. U.S. Patent 8.527.371.
Chand, M. and Katou, A.A., 2012. Strategic determinants
for the selection of partner alliances in the Indian tour
operator industry: A cross-national study. Journal of
World Business. 47(2). pp.167-177.
Deresky, H., 2017. International management: Managing
across borders and cultures. Pearson Education India.