HND Hospitality: Tour Operation Management Task 2 Report Analysis

This report, prepared for LCB Tours, delves into the core aspects of tour operation management, covering the evolution of the industry and the role of regulatory bodies like ABTA and CAA. It outlines the details of an all-inclusive tour, including activities, locations, and timelines. The report further breaks down the critical stages and timescale involved in creating a holiday package, from market research to post-tour management. Different contracting methods, such as fixed, allocation, and ad-hoc contracts, are discussed with reference to their suitability. The report provides a detailed price breakdown, including accommodation, transportation, and profit margins, culminating in a final selling price calculation. The conclusion emphasizes the importance of a well-planned approach for developing successful holiday packages for both domestic and business purposes, supported by relevant references.

Tour Operation Management
Task 2

INTRODUCTION
 The business of tour and travelers has undergone with the necessary
changes in the last two decades.
 In past decades there was no organized agencies for visiting the places
for the travelers.

Regulatory Bodies
• Association of British Travel Agents: It is one of the largest regulatory
bodies in travel association, representing travels agents and tour
operators in UK. Raising the standards and guiding on the
sustainability to health and safety.
• UK Civil Aviation Authority (CAA) : The civil Aviation authority
is the statutory corporation which overseas all the responsibility such as
licensing, testing of equipment as well many other inspection that are
necessary in tourism industry.

Details of All-inclusive tour
TIME LOCATION ACTIVITIES DAYS
10.00 – 12.00 am UK International Hotel Check in status , Fill up guest list
and sign travellers Manifesto.
Day 1
01.30 -3.00 pm UK International Hotel Swimming , pictures taking ,
Lunch
Day 1
05.30-08.00 pm UK International
Hotel
Sight visit of islands Day 1
09.30- 02.30 pm Edinburgh , Bath, Ancient
Stonehenge and Medieval
Salisbury.
Visiting the places Day 2
05.30 -07.30 Visiting malls , gardens parks
etc..
Shopping, pictures takings, in
transit etc..
Day 2

STAGES AND TIMESCALE
• Market research
• Planning and scheduling
• Contracting
• Costing the holidays
• Financial evaluation and pricing
• Creating the brochure
• Advertising
• Operation and execution
• Post Tour Management

SUITABILITY OF DIFFERENT METHODS
OF CONTRACTING
• Contracts are the agreements that is singed between two or more parties
agreed upon certain terms and conditions. In this industry contracts are
between the travel suppliers and tour operators. The different methods
of contracting are determined below:
• Fixed contract
• Allocation Contract
• Ad-hoc contract

SHOW PRICE DETAILS, A BRIEF
COMPARISON TO OTHER TOURS
Facility Price(in £)
Accommodation Cost 525
Transportation Cost 180
Charges of tour guide 150
Pickup and Drop Fare 100
Cost of Tickets 200
Food 350
Total cost 1050
Add: Profit margin @ 33% 346.5
Selling Price 2901.5

CONCLUSION
From the above mention points a proper plan can be design in order to
analyses all the stages and time scales for developing a proper holiday
packages for domestic as well mas business purpose.

REFERENCES
Buckley, R., 2014. Tour production costs. Journal of Travel Research. 53(4).
pp.418-19.
Cetin, G. and Yarcan, S., 2017. The professional relationship between tour guides
and tour operators. Scandinavian Journal of Hospitality and Tourism. 17(4).
pp.345-357.
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.

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