Tour Operation Management Report: UK College, Tour Operations Analysis

This report analyzes the tour operation management practices of Trailfinders Ltd., a major UK-based travel company. The report covers various aspects of tour operations, including timescales and stages involved in developing holiday packages, different types of tour operators, and the calculation of selling prices. It delves into planning decisions for designing brochures, the suitability of alternatives to traditional brochures, and various distribution methods. Furthermore, the report examines strategic and tactical decisions made by tour operators, providing insights into their operational strategies. The report also includes case studies, calculations and examples to show the practical applications of tour operation management principles. The student also included an analysis of fixed and sale only contracts. Overall, this report provides a comprehensive overview of tour operation management.

Tour Operation
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Covered in Leaflet.................................................................................................................1
TASK 2............................................................................................................................................1
2.1 Timescales and stages involved in developing holiday........................................................1
2.2 Different type of tour operators.............................................................................................3
2.3 Calculation of selling price...................................................................................................5
TASK 3............................................................................................................................................5
3.1 Planning decision for design a brochure...............................................................................5
3.2 Suitability of alternatives of a traditional brochure for various type of tour operators........6
3.3 Different methods of distribution to sell a holiday and its suitability for different type of
tour operator................................................................................................................................7
TASK 4............................................................................................................................................8
4.1 Strategic decisions made by different type of tour operator.................................................8
4.2 Tactical decisions that could be taken by tour operators in different situations...................9
CONCLUSION..............................................................................................................................10
REFRENCES.................................................................................................................................11

INTRODUCTION
In current scenario, tourism sector famous and fasted growing industry. The main
advantage of that is directly contribute in economy development of the country. In this
government also provide support to tour company in order to improve their performance level.
This type of sectors considered various trends and growth phases which leads in enhancing
revenue of company at market place (Busby and Huang, 2012). Along with this it is more
important for company to determine each and every factors that directly affect the decision
making process of visitors. By this firm easily formulate their package and at the same time they
also form customers base and improve their performance level. Present report is based on
Trailfinders Ltd. Which is a biggest tourism company in UK. This is owned travel firm which
offer travel insurance and another services to its target customers. Current report define
information about impact of current trends of tourism on travel sector. Along with this, time
scale also involved in developing holidays in this project. Further, report also mentioned about
strategic decision which make by various tour operators for making their tour package more
attractive. In addition of this, various type of tactical decision of tour operators in different
situation is also mentioned in this assignment.
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TASK 1
1.1 Covered in Leaflet
TASK 2
2.1 Timescales and stages involved in developing holiday
Various number of visitors visit places for spending their time with their family and
friends. For this effective planning is an important and starting stage which is consider before
doing any kind of trip activities. With the help of this individuals effectively carry out all the
activities in appropriate manner. Along with this, formulation of tour package include various
development stages and elements in order to make an attractive tour package (Caber, Albayrak
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and Loiacono, 2013). Planning aid in involving entire elements which directly affect the visitors
choice. In this context, timeline are there which helps in preparing the holiday are as follows:
Steps/ activities Description Time taken
Relevant data as well as
preparation of holiday tour
Description Time taken
Negotiation This stage define overall detail
and investigation carry out by
travel company to take right
decision towards price, places,
accommodation and another
factors which helps in making
impressive tour package. In
this customers gather
information about the facilities
through online websites. It also
helps in taking feedback as
well as past experience of the
customers.
This stage take approx 4 to 5
month for gathering all the
relevant information about
facilities which offer to the
customers.
Tour development In this two parties are comes
for common purpose as well as
solution. Negotiation helps
travelling organization,
vendors, and hotels in which
they offer quality services to
visitors with more affordable
cost (Erskine and Meyer,
2012).
This stage take at least 2
months for consulting price
which is beneficial for both
parties.
Determination of price It is also important for
company to analyse pricing
strategies in order to set final
This stage require approx 2
months for completing their
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tour package price which aid
in inviting large number of
customers. In this various
elements are considered that
impact on pricing strategies
like fuel price, taxation and
host country. In context of
Trailfinders develop an
effective tour package in order
to satisfy customers by
providing them same.
activities.
Promotion and marketing of
tour package
This stage comes after setting
final price of the product as it
is important for company to
use appropriate marketing
channel. In this company use
online services, holders and
many more (Falzon, 2012).
This stage take minimum 1
month for completing
activities.
After tour management It is essential for company to
take feedback form visitors
after services their services. By
this company get better
knowledge and their
experience in effective
manner. In context of
Trailfinder, they gather all the
reviews of visitors towards
their company. For this they
can helps of questionnaire
activities.
This stage take 1 month for
completing questionnaire in
front of customers to get
relevant information towards
the company services.
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2.2 Different type of tour operators
Trailfinder is famous tour operator company in UK. They offer quality services to its
customers at affordable price. By this they easily enhance their customers base which leads in
increasing profitability of the company at market place. Along with this, the main of this
company is to offer attractive tour package to its customers in order to satisfy their needs
(Gibson, 2012). As per case study, product development team make an educational package for
42 students in which they include all basic services. In this context, various techniques of
contracting for various elements which relate with holidays package are as follows: Transportation: It is one of the important element which helps in making more satisfying
trip. This component consider as a important in holiday package. In absence of proper
transportation facility, tourism activities can not able to take place in appropriate manner
(Hu and Wall, 2013). It is important important for company to make better experience in
market by offering quality travelling services to its visitors. Basically it is an important
element which aid in expanding the business activities in appropriate manner. For this,
company formulate policies strategies which is relate with transportation facilities.
Furthermore, with the help of goverment support, company easily make more effective
facilities and at the same time attract larger number of customers in appropriate manner. Hotels: As per case study, students spend money in their travelling for gain educational
knowledge. Along with this, various people visit various places with their family and
friends for spent their quality time. In this hotels industry also play important role
because they provide stay services with more quality which leads in attracting larger
number of visitors over there. Further, it is also important for hotels to make their staff
members more capable in which they politely behave with their customers which helps in
building positive image of company in visitors mind. With the help of the they retain
their visitors for long time period.
 Attractions: It is one of the essential element in travel company. In this attraction refer a
place which attract more and more visitors to visit that destination. Along with this,
government also provide better support to tour company to improve their performance
level. In context of Trailfinder, they offer attractive as well as impressive places to its
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visitor in order to satisfy their needs. Further all attractive places contribute in increasing
revenue and at the same time ensuring the development of economic growth.
All these are important elements for tour company in which they offer better
transportation services and hotels facilities to its customers (Hughes and Convey, 2012). With
the help of this firm increase their visitors base and at the same time it directly contribute in
development of economic growth. Along with this there are some main type of agreements are as
follows:
 Fixed contract: It is one of the effective method which define contractual connection
among manager and workers for a specific time frame. Basically it is an statement
between various groups. One of the main purpose of this contract is to attain number of
benefits in appropriate way. Along with this, according to this agreement company
consider an effective collective structure of company sales. With the help of this
company manage the team to increase overall sales. Furthermore, it also contribute in
increasing profitability level of the company at market place.
 Sale only contract: This type of context is also effective which helps in improving the
overall performance of the company. Basically, this contract is very high which define an
effective statement between two parties as based on the customers requirements. Along
with this, it is also made as per market trends and clients demands in order to increase
profitability level of the company. Furthermore, it is more expensive for selected
company to promote their services in front of larger number of customers.
Both are play important role in travel industry in which company increase their
profitability level at market place in appropriate manner. With the help of these methods, firm
gain maximum revenue in appropriate time frame.
2.3 Calculation of selling price
As per current scenario, Europe students make tour plan for travelling London to Brugge
and Brussels for educational purpose. For this they enhance their knowledge and skills towards
the places. In this they needs to make an budget for 5 night trip in which they have to consider all
the factors in effective manner. In context of Trailfinders, it is travel company which having
positive image and also has strong connection with hotels in Belgium. In this product
development team play important role which focus on developing attractive tour package with
quality services to its visitors (Larson and Poudyal, 2012). By this they also offer quality
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services and discount to its visitors which aid in increasing profitability of the company. For this,
students calculate actual cost of overall trip by considering all activities cost which arise during
journey.
Accommodation cost: 96*21=2016
96/1.12= 85.7
85.7*21= 1800 (For One night)
1800*5= 9000 (For 5days)
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
As per above calculation, cost of food is not include in selling cost so that total selling
price will be £28122.5. and for per person: =28122.5/21= £1339.18
TASK 3
3.1 Planning decision for design a brochure
Main decisions of the planning under which a person take design a brochure to which
should include an information or data to be involve in this brochure. It is necessary that data
should be appropriate and also encourage the people to take travelling packages and take
effective decisions on the basis of their needs and demands to take a good experience of holiday
(Lee, Jeon and Kim, 2011). In one data should include in brochure as name of travelling
company, information regarding destination, transportation modes which will use the cost,
duration of the travelling process, extra charges, food type and also the resources under which a
person is carried the self during tour.
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In context to this, cost needs in develop a brochure, selection and design a brochure, final
format which impact on the consumers and also some of the some elements which can include at
the time of developing process.
Brochure is helpful in aware the people regarding products as well as services of an
organisation. It is helpful for tourists in taking the proper decisions. In context to Kuoni travels,
it is necessary for company to formulate an attractive brochure which helps a travel; company to
attract large number of visitors in an effective manner.
 Format of brochure: It is more important document which include relevant information
about the products and services. In this brochure considered section and sub section
which define data for inviting customers. With the help of this company attract large
number of customers.
 Selection of target market and budget: It is also important for formulation an effective
budget for tour package. For this company conduct an effective research to determine the
customers needs and demand. With the help of this company easily finalise tour package
price in most effective manner.
 Time require to complete a specific stage: It is more important for company to design
attractive brochure in order to serve number of customers. In this specific time period is
important to design the same (Lemelin, Dawson and Stewart, 2013). The main advantage
of this elements is to save time and cost of the company and also aid in formulating better
brochure.
3.2 Suitability of alternatives of a traditional brochure for various type of tour operators
Technologies play important role in changing all old methods due to introduction of
advanced technology. With the help of this company improve their performance level at market
place. In this adoption of marketing technologies includes websites , online platform and many
more aid in increasing customers awareness towards the tour packages. In this context number of
company are there which use marketing techniques to promoting their goods and services in
appropriate manner. In this company also determine their package features in front of customers
in order to sole them and attaining profitability in appropriate manner (Merkert and Morrell,
2012). Along with this, introduction of technologies helps in design an attractive brochure which
leads in providing impressive brief of the tour package. With the help of this company easily
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eliminate all the barriers which create from traditional brochure. In this context, number of
alternatives of traditional brochure are as follows: E-brochures: It is also an important in which firm use internet to formulate impressive as
well as attractive brochure. It save time and cost of the company in order to improve
overall performance of the company at market place. Visual: In this, company use attractive images which used in magazines to invite large
number of customers towards the tour location as well as places. Social media: Today's company use various social media platform to increase customers
awareness toward the company. In this firm use Facebook, Twitter and so on.
 Websites: It is also more effective which consist development of sites which considered
features of destination (Sheldon and Park, 2011). With the help of this customers easily
gather information about the company and its places.
All these technologies are effective for business organization to formulate electronic
brochure which is more attractive as compare to old physical brochure. Along with this, various
companies use audio and visual process to attract large number of customers in appropriate
manner.
3.3 Different methods of distribution to sell a holiday and its suitability for different type of tour
operator
Kunoi travels wants to attain competitive advantage by offering quality services and
attractive tour package to its customers. For this, it is important for company to use right and
appropriate distribution channel. In this context, number of tools are there which is used by the
company to sell their products. Like company select a mediator to serve services to its
customers. Along with this, various tools includes by this company to sell their tour package. In
this company should focus on dealing with customers directly (Page, 2011). In this context, there
are some major methods which use by Kuoni to sell their tour package are as follows: Internet: It is one of the important as well as popular methods which helps in increasing
customers base within the company. With the help of this firm easily sell their tour
package which directly contribute in improving company profile. In this IT department
also play their important in which company post their various posts about their
destination which leads in inviting larger number of customers.
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 Direct sale: It is also an effective which is used by Kuoni company to offer their tour
package. In this all the employees directly deal with visitors in which they easily
influence customers to buy its products and services (Song, 2012). The main advantage
of this methods is to create positive relation with customers in order to retain them for
long time period. With the help of this company easily increase their market share and
attain more profit.
 Telephone: It is also an important method in which company management of this
company select customers number in which they provide them information about the
products and services and at the same time they also in encourage them to use their
services. With the help of this firm easily increase customers interest. In context of
Kuoni, they call their loyal customers and provide them information about destination at
affordable price.
All these elements are more effective which are used by Kuoni in which they serve
quality services to its customers in order to get their higher satisfaction. With the help of this
company enhance their profitability level in appropriate manner.
TASK 4
4.1 Strategic decisions made by different type of tour operator
Every tour companies take tactical as well as strategic decision which play vital rile in
improving its activities. In this it is important that decision take by company after evaluating
each and every factors that impact on decision. In this both travel companies Thomas Cook and
Trafalgar take various decision of marketing tool and price of tour packages. Along with this, it
is also important for company to considered suppliers to select quality services which offer in
target market in order to increasing profitability. Further company select media as per their
requirements. In this various decision also there which is take by firm which relate with tour
package and special offer that provide to its customers. In this there are some points which
consider in strategic decision which take by tour operators are as follows: STP (segmentation, targeting and positioning): In this, firstly tour operator set segment
market as per customers age, spending power, interest and so on. With the help of this
company easily select target the segment in which it having potential growth (Tejada and
Moreno, 2013). It also helps in determining product positioning in appropriate way which
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leads in attracting as well as inviting more customers. Along with this, Thomas Cook do
segmentation as per behavioural, demography and psycho graphic. Strategy for competitive pricing: Under this, company focus in attaining competitive
advantage. For this they set unique price of tour package as compare to its rivals. In
context of Thomas Cook set their final price of tour package after evaluation its rival
price. Strategy for promotion: In this company set their promotion strategies to promote their
services in market place. With the help of selecting right promotional channel helps in
inviting large number of customers within their activities which helps in increasing
profitability of the company. In context of Thomas Cook select exclusive promotion
strategy to promote their tour package in market place. Further more, company also take
helps of advertising tools like print media and many more in which they offer their
services and also attract larger number of customers. Strategy for discount pricing: This element is also a effective which helps in attracting
more and more customers. With the help of this company capture larger market share by
deliver quality services to its customers. It also helps in satisfying customers demand as
per their needs and at the same time it aid in retaining them for long time period.
 Tour packages seasonal scenario: Number of visitors elect visit place at the time of
festival and school vacations. In this various variations are define in tour packages.
4.2 Tactical decisions that could be taken by tour operators in different situations
Decisions which take by tour operators in order to manage daily basis operations as well
as activities of the company as called are tactical decisions. It include design of tour package
which leads in inviting large number of customers. Basically, it play important role in
development of business activities which helps in improving performance level of the company
at market place. With the help of this firm take competitive advantage which leads in generating
revenue. Currently, various decisions define by tour company to achieve its end goals and
objectives in order to get consistency within the entire business activities. By this quality
services offer by the company to its visitors which helps increasing their satisfaction level. For
achieving higher success, tie ups with various stakeholders helps in improving the quality
services which offer to the visitors to retain them for long time period (Van De Mosselaer and et.
al., 2012).
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Tie up play important role with stakeholders which helps in taking tactical decision that
define by all those companies who deal in travel industry. In this Thomas cook manager also
provide helps in taking important decision in appropriate manner. With the help of this firm
improve their performance level and also attract larger number of visitors which positively
impact on its goodwill at market place. Furthermore, it is also important for manager to organize
as well as conduct a meeting with services provider which aid in maintaining better
collaborations. By this company easily offer quality services to its customers as per their
demands. Along with this, it is important for tour operator ton set right price of tour package in
order to from customers base.
In this number of technologies and methods are available which is used by the tour
operator in which they easily provide value for money to its visitors and also include positive
responses in their entire experience. Along with this company also formulate an effective tour
package which offer opportunities to customers to effective use services in order to get better
satisfaction level. For this tour operator gather all the relevant data to effectively formulate plan.
In this research also helps in determining issues of packages and tour operator also put their
strong efforts to eliminate it effectively (Distribution Channels, 2016). Along with this, remedial
action also taken by manager to resolve all the problems in effective manner. By this they
minimise negative impact during formulating tour package.
Hence, in this process company offer quality services in order to provide better
satisfaction to its customers and at the same time also increase overall profitability level. Along
with this, it is essential for Thomas Cook to take tactical decision in order to execute their
operation activities in effective manner.
CONCLUSION
From the above mentioned report, it can be concluded that tourism industry is one of the
fastest growing which directly contribute in improving economy growth. In this various tourism
trends also affect the development of tour company in appropriate manner. Along with this
development holidays considered various stages and factors which help to visitor in making best
decision which considered by tour operator at the time of development of their holiday package.
For inviting as well as attracting large number if customers, it is more important for company to
serve quality services to its visitors at affordable price. Along with this, tour operator also take
various decision to effectively formulate attractive as well as impressive brochure which aid in
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saving bot time and money of the company. By this tour operate take right decision at right time.
Furthermore,it is also essential for company to select an effective method of promotion to
promote their tour package in-front of customers. In this tour operator also take strategic as well
as tactical decision in various situation which helps in improving effective performance level of
the company at market place.
REFRENCES
Books and journals
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terms of their asymmetric influences on overall user satisfaction: an introduction to
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116.
Erskine, L. M. and Meyer, D., 2012. Influenced and influential: The role of tour operators and
development organisations in tourism and poverty reduction in Ecuador. Journal of
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Falzon, J., 2012. The price competitive position of Mediterranean countries in tourism: Evidence
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Gibson, P., 2012. Cruise operations management: Hospitality perspectives. Routledge.
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Hughes, K. A. and Convey, P., 2012. Determining the native/non-native status of newly
discovered terrestrial and freshwater species in Antarctica–current knowledge,
methodology and management action. Journal of Environmental Management. 93(1).
pp.52-66.
Larson, L. R. and Poudyal, N. C., 2012. Developing sustainable tourism through adaptive
resource management: A case study of Machu Picchu, Peru. Journal of sustainable
tourism. 20(7). pp.917-93
Lee, S., Jeon, S. and Kim, D., 2011. The impact of tour quality and tourist satisfaction on tourist
loyalty: The case of Chinese tourists in Korea. Tourism Management. 32(5). pp.1115-
1124.
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Lemelin, H., Dawson, J. and Stewart, E.J. Eds., 2013. Last chance tourism: Adapting tourism
opportunities in a changing world. Routledge.
Merkert, R. and Morrell, P. S., 2012. Mergers and acquisitions in aviation–Management and
economic perspectives on the size of airlines. Transportation Research Part E:
Logistics and Transportation Review. 48(4). pp.853-862.
Page, S., 2011. Tourism management: An introduction. Routledge.
Sheldon, P. J. and Park, S. Y., 2011. An exploratory study of corporate social responsibility in
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Song, H., 2012. Tourism supply chain management (Vol. 23). Routledge.
Tejada, P. and Moreno, P., 2013. Patterns of innovation in tourism ‘small and medium-size
enterprises’. The Service Industries Journal. 33(7-8). pp.749-758.
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through<https://www.feedster.com/blog/direct-and-indirect-marketing-methods-and-
distribution-channels/>.
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