Analysis of a Tour Operation Management Report: Package Details

This report delves into the intricacies of tour operation management, presenting a detailed analysis of a specific holiday package. It breaks down the package's components, including transportation, accommodation, and various activities, alongside their respective costs. The report then explores different types of contracts used in the industry, such as allotment contracts and free sale contracts, and their implications for tour operators. Furthermore, it examines the promotional materials and distribution methods employed by tour operators, highlighting the use of information technology and direct versus indirect distribution systems. Finally, the report provides a step-by-step guide on creating an effective brochure to market holiday packages, covering aspects like identifying the target market, gathering information, writing and designing the brochure, and the importance of review and editing before printing.

Tour Operation Management

TABLE OF CONTENTS
TASK 1......................................................................................................................................3
Holiday package and its components.....................................................................................3
TASK 2......................................................................................................................................4
2.2 types of contracts used.....................................................................................................4
3.2 Type of promotional materials used.................................................................................5
3.3 Type of distribution methods...........................................................................................6
TASK 3......................................................................................................................................6
How to create a brochure.......................................................................................................6
REFERENCES...........................................................................................................................9

TASK 1
Holiday package and its components
The Package Travel, Package Holidays and Package Tours Regulations 1992 state
that a 'package holiday' is one that is sold at an inclusive price, has at least two of the
following components; transport, accommodation and last at least 24 hours or involves
overnight accommodation. A comprehensive holiday package is likely to give you and your
family an ample time and prevent you from disappointments (Barker, 2014).
Ana holidays and tours is the way to go for any holiday destination we have different and
affordable prices for all your travel needs.
Mount Like is the key destination for the holiday with your family. It is situated along
the equator and various rivers originate from it. We have the perfect package for you or your
family. For 4 days 3 nights we charge as low as £1058.
The pick-up will be at Arisen gardens on the 10th of December at 8 AM. You will travel in a
60 seater bus. It moves on a maximum of 80km/hr. the driver is well trained and he has great
experience on long distance driving. In the bus there will be a person to give you water and is
there to address any of your needs. The drive is 5 hours, a stopover at Sane town for foods
and refreshments for one hour then proceed with the journey.
Tents are present in the holiday package for the ones who are not comfortable in tents
there are rooms. Rooms are singles and doubles you will get a chance to choose. Meals will
also be included in the payment, African and French cuisines will be served. There will be
chances for one to display their cooking expertise. Each night a bonfire is lit and you bond
with the people around. On the first day we go hiking around the mountain, day two boat
riding and swimming. Day three and four will involve games and challenges between us, it
will be the most exciting part. One is needed to carry blankets, hiking attire, toiletries and
comfortable shoes. We travel back on 14th December morning, this will be a lifetime
experience and not worth missing.
If interested one is to pay cash through our paybill 98764, you can also visit our
offices to pay via cash or VISA. We will offer luxurious transport and accommodation
services that will enable our clients to have a lifelong memory. Below is the total cost and the
breakdown.
Components Price per person Remarks
Transportation £150 The transportation cost includes expenditure for

both to and fro.
Food £200 The best quality of food will be served to persons
during the entire tour package
Accommodation £250 Most convenient facilities regarding
accommodation will be offered
Hiking £150 It is an optional activity included in tour package
Challenges and
team activity
£100 It is an optional activity included in tour package
Drinks £120 It is an optional activity included in tour package
Boat riding and
swimming
£50 It is an optional activity included in tour package
Total Cost £920
Subtotal marks ups and selling price
Total cost = £920
Mark up = 15%
Price = cost + (cost * profit %)
= 920 + (920 * 15%)
= 920 + 138
= £1058
TASK 2
2.2 types of contracts used
1. The allotment contract (or allocation contract). The tour operator bargains with the
service provider for the availability of a given number of rooms for specific dates of the year
and the right to re-sell them to final consumers as part of the package holiday. In this
contract, the tour operator holds the right to return any unsold room before a deadline. This is

advantageous to the tour operator as it takes care of the risk due to loss, caused by over
projection of customers.
2. The free sale contract. This is an agreement which implies the immediate purchase of the
service and the commitment to pay its values regardless of the real occupation. From an
economic perspective, this is a future contract. The free sale agreement allows the service
suppliers to rely on a certain volume of sales, thus transferring the risk of unsold, at least
partially, on the tour operator.
3. The contract with commission. Compared to the previous contract types, this is a less
risky and less demanding contract type, to the tour operator. None of the involved parties are
bounded, neither regarding dates nor regarding availability to provide. It is a simple
brokerage contract that works at the time of booking, which is paid against a pre-negotiated
commission (Levene and Loizou, 2012). Given that medium and large sized tour operators
usually sign contracts characterized by a particular volume of availability and lower prices,
this contract is mainly used by small tour operators, tour organizers, and travel agencies.
3.2 Type of promotional materials used
Independent tour operators like Association of Independent Tour Operators (AITO)
can use information technology in promotional activity. The recent change and progress in
information technology have a revolutionary impact on tourism. This is because, In
promoting their operational services, the Internet can play the leading role to facilitate
information exchange internationally. It is worth mentioning here that though have their web
page; it should be well designed containing all the necessary information.
Chain tour operators like can use television advertisement as promotional material. This is
because television advertising helps the operators to come into contact with people who want
to buy their services. It is an easy way of communication, between salesman and consumers
from local to national even international levels (Page, 2014). Furthermore, television
advertising incorporates imagery and sound to the advertisement which gives a personality
and uniqueness to the service advert and therefore boosting the chances of getting more
customers.
Apart from this, promotional materials such as key chains, shirts and pens can be also
distributed in order to carry out the promotion of tour packages offered by Chinese tour
operators. This will help in developing sense of satisfaction and will also help in attracting
different types of Chinese students and travellers in terms of buying the tour related

packages. Along with this, distribution of material will also support in carrying out word to
mouth publicity of the tour packages offered.
3.3 Type of distribution methods
Independent tour operators use direct distribution system. This is a type of system whereby
the sales are realized through direct contact with clients or consumers.
The direct distribution system has some advantages and disadvantages;
Advantages
1. The direct method is time saving because it provides a direct means of communication to
the operators and customers.
2. There is a marginal increase in profits because there is no commission given to any
middleman.
3. Its provides greater control to the operators because of the comfort and security in the
transaction process.
Disadvantages
1. There is high cost of sales.
2. There is possible reaction of dissatisfied intermediary.
The chain operators, however, use an indirect means of a distribution system. This is a system
whereby, there is the use of one or more intermediaries within the process of delivery of
services to customers.
Advantages
1. It provides the opportunity for a lower price as discounts are negotiated.
2. It provides professional consultation to customers for the best services available thereby
maximum customer satisfaction.
Disadvantages
1.possibility of conflict between the consumer and the middlemen.
2.less control over the user by the operator because of no direct contact.
3.more expensive compared to direct contact.
TASK 3
How to create a brochure
A brochure is a piece that helps sell a product. It is an organised method of passing
information to people. Brochures are quick and fast in passing information. Pictures are

included in brochures to please someone’s eyes. “As they say it, pictures speak louder than
words.” Unlike websites brochures are easily accessible and they are easy to understand.
Step 1: Identify the Holiday Product: It is required to determine the holiday products so
that brochure can be developed accordingly. Presently, the brochure is planned to develop for
winter edition therefore it must have theme of snow and winter season in order to attract
customers towards it. At this stage, destination for such holiday can be Russia, Moscow,
France and Switzerland etc.
Step 2: Identify the target market: After determining the holiday product, target market for
the same need to decide so that brochure can be developed accordingly. In this context, target
market decided for this package will be done by applying the strategy of concentrated
targeting in which upper income class customers will be focused. Based on it, high class
hospitality and services will be backed up in packages so that they can enjoy leisure winter
holidays (You, 2012). This target market is selected because it possesses high paying
capacity and also inclined towards holiday. Hence, it will be a profitable affair.
Step 3: Gather all the information: At this stage, varied set of information will be gathered
in order to decide the layout accordingly. In this context, information related to number of
days, transport option, accommodation choice and attraction will be collected. Apart from it,
structured pricing need to know for the package so that pricing decision can be done by
customers. All these things will be mentioned in brochure in order to cater the attention
customers.
Step 4: Writing and Designing: Once all relevant information related to package is
collected, it is required to write and design a brochure to attract customers. It is required to
develop an attractive and professional brochure to spread awareness among the target
customers. The topmost cover should always be pleasant, once you please the eyes the rest
will fall into place. Beauty goes hand in hand with memory and thus if clients feel attracted to
your product, there is a higher chance that they will always come back to grab it.
Step 5: Review/edit the Draft: After writing and designing the brochure, same need to
review and edit in order to identify the mistakes. This aids in developing appropriate content
so that customer can be pleased with it. Further, colour combination, font size and paper
quality need to review in order to accomplish the objectives of brochure (Levene and Loizou,
2012).

Step 6: Get it Printed: This is the final step where brochure is printed and circulated among
customers so that company can able to sale the package. Here, effort must be incorporate to
develop a brochure without any flaws.