BTEC HND in Travel and Tourism: Tour Operation Management Report

This report delves into the intricacies of tour operation management, focusing on the practices of Thomas Cook. It examines the stages involved in developing holiday packages, including market research, planning, scheduling, and contracting. The report also analyzes the various methods tour operators use to manage different components of a tour, such as allocation, commitment, and the use of air brokers. A key aspect of the report is the calculation of selling prices for holiday packages, using the example of a 3-star hotel in Amsterdam. Furthermore, the report explores planning decisions related to brochures, including content, structure, and distribution methods. It also presents suitable alternatives to traditional brochures and discusses strategic and tactical decision-making processes within the tour operation industry.

TOUR OPERATION
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
COVERED IN POSTER.............................................................................................................1
TASK 2............................................................................................................................................1
2.1 Stages as well as timescales includes in developing holidays..............................................1
2.2 Various methods of operating for different components......................................................2
2.3 Calculation of selling price...................................................................................................3
TASK 3............................................................................................................................................5
3.1 Planning decisions for selected brochure..............................................................................5
3.2 Suitable alternatives for traditional brochures......................................................................6
3.3 Suitable methods of distribution of brochure for various types of tour operators................7
TASK 4............................................................................................................................................8
4.1 Strategic decision which are made by different types of tour operators...............................8
4.2 Tactical decision making by tour operators..........................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Tour operation management is related with the travel and tourism sector. These sectors
provide holiday packages to people as per expectation of people. For the same purpose they
produce advertisement and brochures in order to promote their products and holiday packages as
well. The present report is based on Thomas cook which is UK based travel and tourism
company. It provide quality services to their targeted customers and try to attract them as well.
There is a recent trends effect development of tour operation industry. Firms have to follow
stages for developing holidays (Mak, 2011). Different types operators are contributed in effective
decision making process. There are various external factors which having impact on the
existence of travel industries. Cited firm is responsible to provide best quality of products and
services to large of customers for increase profit margin and market. There are large number of
passenger used the services of this sector in order to visit various number of places. They have to
calculate selling price on the basis of fixed and variable cost.
TASK 1
COVERED IN POSTER
TASK 2
2.1 Stages as well as timescales includes in developing holidays.
Various stages of growth and development of travel and tourism sector are able to
improve holiday packages. Staff members of cited firm are responsible to follow rules,
regulation and policies which are imposed on them as per planning of company. Managers and
leaders of cited firm are responsible to frame proper plan and strategies in order to attain their
target in timely manner (Nakayama and Bucks, 2012). This is the forecasting process which is
helpful for Thomas cook to retain large number of people and provide best quality services to
them as well. They have to conduct market research in order to analyse current market
expectation of people and provide goods and services to them accordingly. Before providing
services they have to frame contract with customers and try to provide services according to the
rules and regulation which are mentioned under written legal contract. It is the legal formality
which is needs to be fulfilled by companies in order to comply them. Different stages and

timescale which have to followed by Thomas cook as travel and tourism company are as aligned
below-
Market research- With the help of market research in domestic and international
market Thomas cook is able to expand business and try to improve profit margin as well (Dodds
and Kuehnel, 2010). Staff members are responsible to conduct such research in order to gather
information or data which are related to the recent trends and demand of people.
Planning- Members are responsible to frame plans and strategies through which
companies are able to attain their target or objectives as well (Witt, Brooke and Buckley, 2013).
It is the systematic procedure which have to followed by Thomas cook for expand business and
improve market share.
Scheduling- Members of Thomas cook have to prepare their task in schedule form and
try to comply with them as well (Chand and Katou, 2012). Through cited firm is easily attain
their target. Set reasonable prices for services which are easily affordable for companies.
Forecasting- Framing of plans and strategies is the forecasting procedure which is
helpful for to attain their long term as well as short term goals and objectives. Forecasting is
stands for long term process.
Contracting- Contract its the legal term in which two or more parties are comes in the
legal agreement and they all are bound to follow rules and policies which are imposed on them.
Thomas cook comes in the contract with their customers before providing services of travelling
to specified destinations (Brown, Bessant and Lamming, 2013). Furthermore, cited firm is bound
to follow terms and condition which are mentioned under contract and signed by consumers in
order to provide services according to expectation of people.
2.2 Various methods of operating for different components.
Travel and tourism industries are bound to follow terms and conditions which are
mentioned under legal contract. Through this process, they are able to attain target as per the
expectation of customers. They opted services of air broker in order to indirectly interact with
customers and identify their needs or demand with company. Brokers play significant role in
travel and tourism sector. As they are responsible attain their target within stipulated time period.
They have to perform functions as per the commitment which is provided by company to their
customers. Allocate services as per the need of people (Evans, Stonehouse and Campbell, 2012).

The main purpose of Thomas cook is providing goods and services in across the national border
at reasonable prices which is easily affordable by people. Various methods which are opted by
Thomas cook are as aligned below-
Allocation- It is the situation in which companies separate services and customers
according to destination of people. As they divide services on the basis of requirement of firm as
well. Sue to this they are able to attain target and objectives also able to earn large amount of
profit margin.
Commitment- It is considered as pre promises by company with their targeted
audiences. Try to follow their set of rules and regulation in order to build trust of people and
improve their performance as well (Chon and Yu, 2012). Through this process they can attract
large number of customers and receive opportunities for earn profit margin. Opted methods and
activities which are helpful for companies to attain their target and improve work quality.
Adhoc- According to this factor Thomas cook having specific aim and objectives for
expand business in international market (Guo and He, 2012). They have to improve performance
in order to retain large number of customers and try to attract them.
Air broker- Thomas cook is able to opted services of air brokers who are responsible to
arrange renting plans. Also they sells space in plane for the people want to transport products by
air. So that, before providing services cited firm take help of broker and consult with them about
reaching to their customers on their destination (Jaafar and Maideen, 2012). Air brokers are
engaged in the business of manage their performance by arranging places for people as per their
expectation.
Schedule services- Staff members are able to frame proper schedule for the services
which are provided by company (Buckley, 2010). They can listed their functions and activities
and try to complete one after another. Through this process targets are easily achieve.
2.3 Calculation of selling price.
On the basis of given information the selling price of 3-star WestCord Art Hotel is
calculated which is based in Amsterdam. Calculation of selling price is as follows-
Cost Cost on Euro or Pounds

Cost of one room 84 euro for two sitter
Cost of per person 42 euro
Cost of breakfast per person 11.5 euros of one person
Total 53.5 euros
Total students 46
Total cost for 46 students 2862.25
Rate of exchange €1.15 per £1
Rate as per the exchange rate 2488.91
Tour days 7
Total amount for 7 days 17422.39
Rent for bus 50 seater 10800 pounds
Charges for guides 1200 pounds
Total 12000 pounds
Cost of entire tour consists fare charges 29422.39 pounds
Organization's profit margin 7355.5975 pounds

Total cost consists profit firm 36777.99 pounds
Cost of one student £799.52
TASK 3
3.1 Planning decisions for selected brochure.
Selection and preparing of brochure is play significant role in travel and tourism sector
industries. For this purpose have to follow systematic formate which is looking attractive and
easily understandable by people (Gass and Harris, 2012). In that brochure they have to
mentioned specific information regarding their products and services which are considered as
relevant for their customers. Also opted various types of methods and procedure for distribution
of the same. Through this they can easily aware people about their services. While preparing
brochure they have to frame various plans and strategies. While conducting this process, various
types of issues are created which needs to reduce by staff members of Thomas cook through
contribute in effective decision making process. Issues created regarding content, structure, size,
quality etc.
Content- Brochure consist relevant information about their products and services which
are provided by company in international market. Content needs to be specific and clear which is
easily attract people and understandable by them as well (Stolletz, 2010). In that, mentioned all
relevant information or data regarding prices, important destinations, facilities provided by
company, days of holiday packages etc.
Structure- Brochure has been prepared in systematic structure which needs to be fulfil by
companies while preparing the same. It is prepared in two parts in one page and also consists
pictures, images, graphs etc.
Style- Members have to select style which are recitative and easily framed.

Paper quality- Selection of paper is also big deal regarding the same. Best quality of
paper needs to be select for the purpose of preparing brochure which is not easily destroy.
Size- Is also issue which is created. So that, they have to take bigger size of brochure as
which is easily read by people.
These above are the issues which are created while preparing brochures. Members have
to deliver the same in domestic as well as international market (Bonilla Priego, Najera and Font,
2011). Also deliver in target market according to them in which customers easily got attracted
and use services of firm. Set budget on the basis of their expenses or cost incurred by company.
Take various number copies of brochures which is able to deliver in different places. Managers
and leaders are take significant role in decision making process which is helpful for them to meet
their goals and objectives.
3.2 Suitable alternatives for traditional brochures.
There are various alternatives are present for brochures which are also helpful for the
company. Such as CD, videos, internet, television etc. These are the alternate factors of same
process (Ronen, Pliskin and Pass, 2012). Also there are various other distribution channels are
present in order to aware people about the goods and services which are provided by company in
international market. They can direct mail to their customers in order to provide relevant
information or data. In international market there are also various number of competitors which
having impact on existence of business. Thomas cook have to use different distribution channels
in order to aware their customers. Which are as aligned below-
Direct mail- Company can direct mail their brochure to their targeted audiences. Through
this companies are able to provide proper information to them. They send mail to various number
of people who are looking for services of travel and tourism sector (Nolz, Doerner and Hartl,
2010). Through this they can directly reach customers and attract them as well.
Haulier- In this process in which one representative of Thomas cook delivered brochure
to their targeted audiences by road. Through this process company can easily reach to people and
able to manage their performance as well.
Consolidated delivery- This term of delivery process is considered as grouped delivery of
brochure. This factor play an important role in travel and tourism sector. Through this
organizations are able to improve their performance and work quality as well.

Travel agencies- These agencies are private as well as public services which are engaged
in the business of providing services which are related to travel and tourism sector. They perform
function on behalf of various number of organizations in order to operate their services in across
the national border (Allahyari, Salari and Vigo, 2015).
Selective delivery process- Companies have to choose selective distribution process
which are able to aware people about services of firm.
According to the provision of laws there are various types of articles and acts are defined
which having impact on services of travel and tourism sector. So that, for smooth functioning
companies have to follow rules and regulation which are imposed on them. Furthermore,
Thomas cook as travel and tourism company have to provide safe and secure travelling to their
customers and try to protect their life as well (Wu, 2012). Needs to be provide quality services
and ensuring that entire firm using appropriate methods and procedure which are helpful for
them.
3.3 Suitable methods of distribution of brochure for various types of tour operators.
Different types of tour operators are responsible to select various types of brochure
distribution methods through which they can directly reach to their customers and identify their
demand as well. Methods needs to suitable and simple which are easily opted by tour operators.
They have to select methods which are easy to follow and easy to understand. In order to attain
target, internet play important role in distributing of brochure. Use telephones in order to share
various information or data which are related to packages provided by firm in international
market (Deresky, 2017). Also take a help of call centres to convince people and deliver
information to them as well. Tour operators are responsible to responsible to use appropriate
methods which are helpful for them to manage their performance and also for attain task. There
are various other distribution process which as aligned below-
Direct sell- Companies can direct sell their products and services to their targeted
customers. This methods needs to be opted by staff members of Thomas cook in order to sell
services in international market (B. DiPietro, Cao and Partlow, 2013). Members can collective
use their efforts and take reasonable step in order to attain target and objectives as well.
Internet- In this modern world, large number of people are connected with internet. So
that, companies having great opportunity that they can easily attract people and aware people as

well. Firm can update information on internet about their recent holiday packages. Through this
process people get updated about the same and use their services as well. They can click picture
of brochure and post on social media sites (Lang, 2010). People like or comment on that post and
contact with company as well for use services to reach on special destination.
Call centres- The main function of call centre is to provide information of their
customers and try to resolve their conflict as well (Management of the tour operator and travel
agency activities. 2016). This is the effective distribution channel for company to deliver
important information related to services offered by cited firm.
Agencies- Thomas cook deal with agencies to sell goods and services in across the
national border (Unit 13 Tour Operations. 2017). They can frame legal contract with agencies
for the same purpose.
TASK 4
4.1 Strategic decision which are made by different types of tour operators.
Strategic decision taken by various types of tour operators
Different types of tour operators are play important role on effective strategic decision making
process. They have to their collective efforts in order to take best decision regarding their
products and services (Luis, Dolinskaya and Smilowitz, 2012). They have to set prices which
are easily affordable by people. For this purpose staff members needs to identify current market
position of this company. Responsible to provide best quality of services to customers
according to their expectation. All members of Thomas cook are equally liable to contribute in
strategic making process in order to capture better return and improve market share as well.
With the help of effective services cited firm is responsible to maintain relation with their
customers and try to attract them as well (Wu, 2012). Through these factors firm is able to
enhance its position and improve brand image as well in international market.
Strategic decision taken by different types of tour operators which are as aligned below-
Pricing strategies- Companies have to price according to the cost incurred by firm.
Prices needs to be set which are easily affordable by consumers. It can be set as maximise profit
and reduce cost. Through this companies are able to improve market share with in current or
new market (Gummesson, Lusch and Vargo, 2010). They have to take suitable action regarding

fix prices. This factors is able to build trust of people and meet expectation of people as well.
With the help of this term entity is able to attain their corporate goals and objectives. In order to
set prices members needs to follow systematic procedure.
Surcharge policy- This is the amount which is paid by customers along with prices of
travel and tourism. This is the compulsory payment which is made by consumer at the time of
making complete payment to them. It is considered as extra money paid by people other then
prices. Rate of tourism sector is decrease if rate of surcharge is drops off. It is able to increase
premium.
Brand image- Employees of Thomas cook are responsible to use all their collective
efforts in order to enhance their brand awareness in international market (Hoffman, Padberg
and Rinaldi, 2013). They have to maintain market image of company by through provide best
quality of goods and services to customers. Through they can build trust among people and
able to maintain relationship with them as well.
Select product- Firm have to select products and services according to the needs and
demand of people. If entity is able to do so, then customers attract towards firm and use their
services as well. Goods needs to be meet expectation of people. While travelling employers
needs to ensures that company comply with laws and follow rules and procedure which are
imposed on them. For the same reason they can maintain trust of people and smooth
functioning as well.
Delivery decision- Members have to take effective decision regarding distribution of
services in international market. In this members play important role who having required skills
and knowledge. Decisions which are taken by company are able to protect interest of services
users and protect their life as well. For the same purpose select appropriate tools and techniques
which are helpful for them to attain their goals and objectives.
Investment- Company have to take reasonable decision regarding investment by
capitalization. They have to invest fund in capital in order to increase their long term revenue .
This is the effective process of earning for organization.

4.2 Tactical decision making by tour operators.
Tactical decision making by tour operators
Tactical decision making process is able reduce conflicts from company and put it in profitable
position. It is able to guide members to take reasonable step and try to reduce conflicts from
firm. Through this process they can able to attain their long term as well as short term goals and
objectives. For the same purpose use appropriate tools and techniques in order to improve its
performance and enhance work quality as well. Try to maximise occupancy and manage overall
performance of firm. Employers needs to ensures that available resources are effectively use for
meet expectation of people and build trust among them as well. Sometimes company have to
provide attractive discounts to people. In which they can reduce rate of services then the actual
price. Greater rate of discount is able to attract large number of people. Through this company
is able to increase their number of users and try to maintain relationship with them. Take a
proper use of air crafts seats and available coach. There are various number of competitors of
Thomas cook in international market through company not able to enhance their performance.
Greater number of competition is considered as biggest threat for company.
Easy jet holidays is the another your operator which play significant role in travel and
tourism sector. They reached in different sectors which are c9onsidered as attract destination for
customers. Also it provide some extra services such as car hire, transfers etc. Also offer
accommodation for people in reputed hotels and arrange meal for them. It is also multinational
brand which is famous among customers. Offer best holiday packages self catering to better
value of exclusive and boutiques as well. Large number of customers use services of Easy jet
holidays. Members have to take effective decisions which are related to selling and distribution
process. For the same purpose they have to use appropriate tools and methods.
Comparison among services or decisions of Easy jet and Thomas cook-
Thomas cook- Effective tactical decisions are taken by members in order to enhance
their performance. These decisions are taken in order to control entire performance of firm.
Have to set timescale which is helpful foe them to manage their work quality and helpful to
attain target as well.
Easy jet- Members of this firm are not able to take reasonable to step regarding selling