HND Hospitality Management: Tour Operation Task 2 - Stages & Pricing

This report provides a comprehensive overview of tour operation management within the context of the travel and tourism industry, specifically using Thomas Cook as a case study. It delves into the various stages involved in developing holiday packages, encompassing financial evaluation, market research, planning, operation, contracting, costing, and post-tour management. The report also examines different methods of contracting, such as fixed contracts and ad-hoc arrangements. Furthermore, it includes a practical example of calculating the selling price of a holiday package for a group of students traveling from London to Brussels, considering various costs like accommodation, transportation, and guide fees. The report concludes by summarizing the key takeaways and emphasizing the importance of adapting to market changes and competition within the tourism sector. References to relevant academic sources are provided to support the analysis.

Tour Operation Management
Task- 2

Cover content
• Introduction
• Stages and timescales involved in developing holidays
• Methods of contracting
• Calculate selling price of holiday
• Conclusion
• References

Introduction
Travel and tourism industry is consider as one of the fastest growing sector in
UK and succeeded in generating highest revenue at marketplace. Thomas
cook is one of the most successful tourism organizations that engage in
providing best holiday packages to their customers. Therefore, entire
presentation is going to highlight various stages of enhancing holidays as well
as distinct methods of contracting is also framed.

Stages involved in developing
holidays
Thomas cook always engaged in
offering best packages to their desired
customers and make seasonal plans for
developing their association. In fact,
enhancement of holiday packages
supports management in offering
quality services to their clients as well
as aids an association in establishing
their goodwill at marketplace.

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Hence, Thomas Cook gone through
various stages for enhancing their
holidays which are discussed as
follows-
•Market research
•Planning and scheduling
•Contracting
•Costing the holiday
 Financial evaluation and
pricing
 Designing brochure
 Advertising
 Operation and execution
 Post tour management

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Methods of contracting
Thomas cook is a well-established organization in tourism industry which
plays a major role in offering best services to distinct travellers such as;
designed impressive holiday packages, provide discounted rate to their
customers, instant services henceforth. Thus, numerous of customers are
connected with this company in UK as well as across the international
boundaries. Therefore, various methods of contracting are used by an
association for getting engaged with several types of clients such as; fixed
contract and sales only contract.

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• Ad-hoc – As per this agreement,
cost of planning and
arrangements in contract is fully
based on activities which are
going to conduct throughout the
tour either hourly and daily.
• Fixed contract- This is also
known as contractual relationship
which exist for a specific time
period and is carrying for
particular purpose.

Calculate selling price of holiday
Selling cost is an expense which will incur by sales department of an
organization while distributing their products or services across the
marketplace.
For example- European students have decided to make a plan to
travel from London to Brussels in order to improve their knowledge. Hence,
for this purpose they wanted to design a budget for almost 5 nights for almost
45 students which includes all the necessary accommodation.

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The conversion rate is 1 Euro = 0.86 pounds
•Total number of rooms = 45/2 =23 rooms
•Cost of Hotel for 23 rooms for 5 days =54 * (0.86) * 23 * 5 = £ 5340.6
•Cost of B&B for 45 students for 5 days = 45*12*0.86*5 =£ 2322
•Charges of coach = £ 5400
•Charges of local guide = £ 900

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PART
ICUL
ARS
Cost
of
hotel
Cost
of
suppl
emen
t
Char
ges of
coach
Char
ges of
local
guide
Total
cost
Profit
margi
n
(20%
)
Actua
l
sellin
g
price
FOR
45
PERS
ONS
(£)
£ 5340.6 £ 2322 £ 5400 900 13962.6 2792.52 £
16755.12

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Fixed cost of package is =£ 13962.6
Profit margin of 20% = £ 2792.52
The actual selling price of holiday package would be = £ 16755.12
Cost for one person =£ 372.336