Tour Operation Management Report: Analysis of Trends and Strategies

This report delves into the multifaceted realm of tour operation management, examining the effects of current trends such as niche tourism, internet usage, eco-tourism, flexible booking systems, and safety/security concerns on the tour operator industry, with a specific focus on Trailfinders Ltd. The report outlines the stages and timescales involved in holiday development, encompassing market research, guidebook creation, planning, scheduling, negotiation, forecasting, and contracting. It evaluates the suitability of various contracting methods and alternative distribution approaches, comparing strategic and tactical decisions made by different tour operators, including a comparison of tactical decisions undertaken by Trailfinder. The report also assesses the planning decisions made for specific brochures and the suitability of alternatives, concluding with a comprehensive analysis of the industry's challenges and opportunities.

THE TOUR OPERATION
MANAGEMENT

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 ..........................................................................................................................................3
Effects of current and recent trends and developments on the tour operators industry.........3
TASK 2............................................................................................................................................6
2.1 Stages and timescales involved in developing holidays...................................................6
2.2 Suitability of various method of contracting component of holiday and different type of
tour operator...........................................................................................................................8
2.3 Calculating selling price of holiday..................................................................................9
TASK 3............................................................................................................................................9
3.1 Evaluating the planning decision taken for designing specific brochure .......................9
3.2 Suitability of alternatives to traditional brochure for various types of tour operators.. .10
3.3 Evaluating the suitability of different methods of distribution for selling a holiday ....14
TASK 4..........................................................................................................................................15
4.1 Strategic decisions made by different types of tour operator.........................................15
4.2 Comparison of tactical decision taken by Trailfinder....................................................16
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................18

INTRODUCTION
Operation management is defined as administration of business practices in order to
create high level efficiency within an enterprise. It involves various activities such as planning,
organising, managing, controlling and supervision of production procedure (Robinson and et.al.,
2016). It is mainly concerned with transforming input into output in the best possible manner.
The purpose of operational management is to help an enterprise in delivering quality products or
services to customers. An effective operation management is very much important in order to
accomplish desired objectives. The recent trends have direct as well as significant effect on
development of tourism sector.
The purpose of the report is to analyse the effect of trends on development of tourism
sector. Assignment will include evaluation of planning decisions taken by manager in context of
Trailfinder. It emphasizes on identifying suitability of alternatives to a traditional brochure for
different types of tour operators. Project will highlight stages as well as time scale involved in
developing holidays.
TASK 1
1.1
Effects of current and recent trends and developments on the tour operators industry
Recent trend in tour operator industry may
drive the whole organisation in both positive
and negative way (Boniface, Cooper and
Cooper, 2016). The travel and tourism industry
have very wide scope in UK market and tour
operators may influenced by current trends and
developments. Trailfinders can get affected by
changing trends in tour industry.
Following are the current and recent trends in
tour operator industry:
Internet
Internet being the biggest platform for
Niche tourism
One of the most current trend and
development in tour operator industry is rise of
niche tourism. This is also called as special
interest tourism. Nowadays travellers’ demand
for niche tourism is very high and it may affect
the business of tour and travel industries.
Niche tourism include; dark tourism,
adventure, heritage, wine tourism, etc. For
example; wine lovers of UK travel to the
vineyards, trekkers are just want to travel for
trekking at various destination. The specific

every organisation with rapid changing world
into digitalization. Now organisation use
internet to attract new visitors towards the
industry by using various technological
equipments. Internet can assist industry to
design the website and Trailfinders Ltd. can
use its website to attract consumer, provide all
the necessary information and publish online
ads that gain attention of travellers. Consumer
mostly uses internet and various technological
equipments to find various destination,it is
marketing strategy which helps to compare the
similarities of products of other company.
Internet being a trend and important platform
for consumers as well as for the organisation.
This trend has a big impact on the service
industry because nowadays internet is one of
the important source to research about a
destination place. Service industry is growing
day by day adopting all these trends.
Echo-tourism
Every people, government,
organisations pay attention to environmental
protection. The environmental awareness
demand of consumer with the trend can affect
Trailfinders Ltd. as it is traditional travel
company (Byrnes, and et.al., 2016). The
demand of niche is constantly growing that can
regulate the business of Trailfinders. For
example; Some consumers want Climbing
mountains, tracking that is difficult and need
lot of planning, training and equipment and
other want a tour on historic place that control
Trailfinder to be flexible and cover all the
market. This trend control their operations and
area in a niche market.
Safety and security
Terrorist attacks are increasing day by day and
the customers are more concern with their
safety and security. Travellers now first
analyse the current situation of destination and
more thoughtful about their security. This
development can affect the whole attachment
with tour companies like Trailfinders Ltd. Such
as; airlines, hotels, etc. It can make tourists
more concern and it controls or reduce their
visiting level that may affect the business of
the agency also it put pressure on the

among tour and travel operators may affect the
organisation. Government of UK limit or ban
visit of tourists in preserved place to protect
the environment from pollution. The awareness
and rules and regulations may affect the tour
industry. Environmental awareness has also
changed holiday trend of customers their
selection of destination.
Flexible booking system
Trend of booking tickets now change
due to advent of technological advancement.
People now book tickets on their own
according to their preferences and can make
payment online (Cetin and Yarcan, 2017). It is
cheaper, faster and quicker for consumers. This
affects tour industry and travel agents because
with the changing time and trend there is no
need of travel agents anymore and it can
probably say that there will not be too many
travel agents in the future. The company is a
travel and tour agency and this trend regulate it
the development can be controlled as now a
days people are able to find best tour package
and book tickets on their own and to being
with the trend company need to develop
several strategies. Trailfinders are already
shutting their high street traditional agencies
because consumers are resorting to online
agents and they are planning to open their
online booking store.
Trailfinder. The industry also concern with
security that has increased greatly due to
several terrorist attacks worldwide. The
company need to make plan in order to exceed
the requirement of their airline industry
through technology advancement.
Basically tour operator is a company or
person that takes responsibility of vacations
and holidays of travellers. The role of tour
operator is to make booking or reservation for
customer for travelling and provide various
package, allot transfer facilities, etc. There are
various types of tour operators such as;
domestic operator, outbound operators, direct
sell operators, in bound operators, ground
operators, etc.
Impact of recent trend on tour operators
industry
By offering the eco-tourism packages, listed
company can attract more customers and that
will help to develop their business. By
providing the surety of tourist safety

Trailfinder can increase the sell of their holiday
packages. The purpose of this trend is to
provide the online booking of packages and
hotel rooms. By providing the online booking
services company can grow their business.
Nowadays internet is one of the important
source to research about a destination place.
Service industry is growing day by day
adopting all these trends.
TASK 2
2.1 Stages and timescales involved in developing holidays
For effective planning of holidays it is essential to develop timescale that provide better
planning (Moutinho and et.al., 2015). It helps organisation to better management of time during
holidays. There are various stages included in development of holidays, by looking at each and
every stage manager of Trailfinders Ltd. able to manage time and deliver quality service to its
customers.
Market research
Developing holidays is the first stage that helps Trailfinders Ltd. to analyse and identify
preferences and tastes of consumers. Trailfinders Ltd. also, conducts online market research to
identify demand of consumers with the help of official website of Trailfinders Ltd. The
organisation has undertaken the below steps:
 Determine various external factors such as, climate, social, political, economical that can
affect the offered packages by the organisation.
 Identify alternatives destinations.
 Approach distributor and supplier and make policies regarding the tour.
For example; Trailfinder researched about all the tourist destination in London and Paris
and involved those places for tour that have great attraction, places that are safe and secure from
any terrorism, environmental hazards, etc. and it is important for sightseeing worth for students,
meals that would appreciated by students.
Development of travel guidebook

After, selecting the location the next step is development of guidebook of tour (Robinson
and et.al., 2016). This stage includes various points of tour programs such as; stay duration, route
that will be selected after London, transportation facilities, etc. Under this stage Trailfineder
develop itinerary tour package in accordance with the need of students and along with it the
company require to plan other activities that help in effective planning.
Planning- generally travellers are planning their travel online. They visit various sites to
find out different tour packages. Tourist make the decisions by choosing one among all other
tour packages. In the planning Trailfinder need to address all the activities that in the itinerary
and that help them to decide the inclusion and exclusion from the plan. The planning is important
for arranging the package effectively and analyse the cost involved in services.
Scheduling- it is a systematic process of make the plan for a particular time. In this stage
Trailfinders make the plans about their activities in advance that saves time and make tour
successful. It is essential for the company to add all the necessary points such as; assembling
point, date of departure, departure point, tour duration, etc.
Negotiation
It is important to add negotiation with the service providers in planning for holiday.
Trailfinders Ltd. Negotiate with vendors and make arrangements with suppliers that are located
in the selected destination and make sure that required stuff arranged by vendors.
Suppliers/Vendors included; airlines, car rentals, lodging, etc.
Forecasting
The next stage is forecasting under which manager of the industry design the package
according to the current situation and condition. They should forecast the package proper and
affordable from its competitors. That attract more and more consumers in the future. Trailfinders
first asses the climate of specific destination and then implement holiday package accordingly.
Contracting
The last stage comes of finalising the contract with all the selected vendors, suppliers, cab
facilities, hotels etc. contracting should be done properly because many people will be being in
touch with Trailfinders and it can help in avoiding confusion and make successful holiday
package that make the visitors satisfied (Ryan and et.al., 2017). Lastly Trailfinder will make
arrangement as per legal regulations on tour operators.

2.2 Suitability of various method of contracting component of holiday and different type of tour
operator
The suitability of various methods of contracting depends on many touch points such as;
airlines, hotels, hired cabs, abstractions, etc. it is beneficial for the customer to get services
according to their preferences and avoid unnecessary additional cost.
Allocation contracting – in this contract tour operates will specify the amount of rooms
and seats. This contract reduces the risks in tour packages. Tour operator book the numbers of
rooms, tourist have rights to use them on a given date. This types of contracts are mostly used by
the inbound tour operators. They need to provide contract of allocation.
Fixed contracts- these types of contracts are given by the tour operators on the basis of
tour will terminate at a future date. This types of contracts helps to provide a surety about tours.
This type of contracts are used by the outbound tour operators. Fixed contract is effective in bulk
consumption and it involves higher discounts offer. This method helps the management to serve
quality services to their customers and make them satisfy with the services of vendors. For
example; Trailfinder make contract with the cab vendor and pay them on weekly basis.
Transportation
Transport is major part of tourism industry and in developing holiday packages. They
have contract with the transports that include; airlines, railways, cabs, etc. It is essential for
Trailfinders to ensure the advance contractual booking of transportation.
Hotels
Trailfinders contract with many varieties of hotels under allocation contract while
developing and planning the tour (White, 2016). Contract with hotels depends on type of beds,
quality of rooms, meals, other accommodation etc.
Attraction
There are various attraction places on every tourist destination and that generally
contributes in government revenues. This contract is made for non-monetary purpose and help in
a successful tour. This is the method which is used by the mass market tour operators.
Different type of tour operator
Inbound tour operator: This type of tour operator are directly bounded with the tourist
and provide them all the services and facilities from their arrival till their departure.

Outbound tour operator: This kind of tour operator offer the services to individual or
group of the same country as well as to the other country.
Ground tour operator: The ground operator are the agency who provide services from
their place. They provide facility of booking ready at the destination places.
Domestic tour operator: This type of tour operator is a person who guide the people
who visit their home country and provide services domestically to the home country of the
operator.
2.3 Calculating selling price of holiday
Components of cost Per person Total
Hotel cost £89 £4450
Luxury Coach cost - £6949
Attraction charges £45.60 £2280
Local tour guide cost - £896
Total £14575
1 Euro= 1.19pounds
Number of students is 50
Mark up price- £14575+ 28%Selling price- 18656
Conversion of Euro in Pounds- €16364.91
From the calculation it can analyse that there are 50 students and each student will overall
pay €327.29 to Trailfinder.
TASK 3
3.1 Evaluating the planning decision taken for designing specific brochure
Decisions related to designing of specific brochure should be appropriate as the design of
Brochure have direct as well as significant effect on the buying behaviour of consumers (Wu and
Tse, 2016). Manager in trail finder need to consider various factors such as the nature of target
audience, purpose, costs etc. when making decision related to the designing of brochure. The
various planning decisions which are taken by manager in Trailfinders are :

Decisions related to designing of brochure : The important decision which manager has
to tale is related to the selection of design for brochure. Design of the brochure should be
simple, as this will help trail-finder in developing the good impression on customers. In addition
to this, manager have to make decisions related to the choice of colour, front size of content,
graphic style etc. The font of the content should not be very much big or small and brochure
should contain images as this will assist an organisation in influencing people to buy specific
holiday package.
Decisions related to the implementation of strategy: Budgeting decisions is to be taken
by manager in Trailfinders. Manager in an organisation takes various decisions related to the
selection of method of distribution of brochure are to be taken by manager in an enterprise. In
context of Trailfinders, manager has chosen to distribute brochure through website.
Detailed design development : Here, manager in trail finder need to take decision
related to design of logo. In addition to this, product planning and final costing decisions are
taken by management in an organisation.
A comparative analysis of various brochures:
Base Trailfinder Holiday Brochure Sunlover Holiday Brochure
Cost Costs included in design of
brochure, number of copies are
in bulk and have low to
moderate quality. The cost
they invest is low than
sunlover.
In Sunlover brochure; they
have moderate to high quality
of brochure and they invest
more cost on design than
Trailfinders.
Format Their brochures are of tri-fold. Their brochures are of bi-fold.
Target market Their target market are of
affordable customer.
The target market of sunlover
is high end consumer.

3.2 Suitability of alternatives to traditional brochure for various types of tour operators
Brochures play an important role in effective marketing programmes. It provides
information about the tour programs to the target customers (Gold medal Travel PLC, 2018).
Effective and attractive brochure enhances the selling rate and enable chances of attracting
prospective customers. With the changing world design of brochure also changed from
traditional to modern with lots of innovative techniques and methods. Trailfinders should use
modern form of brochure rather than traditional brochures by using various source and
magazines.
Illustration 1: Holiday Brochure
(Source : Gold medal Travel PLC, 2018)