TUI Tour Operation Management: Industry Trends and Analysis

This report delves into the realm of tour operation management, providing a comprehensive analysis of the industry. It begins by examining the effects of current trends and developments on tour operators, using TUI as a case study. The report then outlines the stages and timescales involved in holiday development, including market research, planning, contracting, costing, and marketing strategies. Furthermore, it explores the suitability of different contracting methods and calculates the selling price of a holiday package. The report also covers the planning decisions for designing a brochure, alternative marketing methods, and distribution strategies for various tour operator types. Finally, it examines the strategic and tactical decisions made by tour operators, providing a holistic overview of the tour operation management process, with specific examples of holiday packages for Hua Hin and Thungyai-Huai Kha Khaeng Wildlife Sanctuaries in Thailand.

Tour Operation
Management
1

INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................4
1.1 Effects of current, recent trends and development on tour operation industry.....................4
TASK 2............................................................................................................................................5
2.1 Stages and timescale involved in developing holidays.........................................................5
2.2 Suitability of different methods of contracting.....................................................................9
2.3 Calculate selling price of holiday..........................................................................................9
TASK 3..........................................................................................................................................10
3.1 Planning decision taken for designing selected brochure...................................................10
3.2 Suitability of alternatives to a traditional brochure for distinct types of tour operator.......11
3.3 Methods of distributing holiday packages for different types of tour operator..................12
TASK 4..........................................................................................................................................12
4.1 Strategic decision made by different types of tour operator...............................................12
4.2 Tactical decision could be taken by selected tour operator in various situations...............13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
2

INTRODUCTION
Travel and tourism is a business of seeking the attention of consumers by offering
luxurious accommodation and entertaining tourists with various events. Tourism might be
international, national or within the city and become one of the major source of income that
affects the economy of all the countries which are engaged in tourism activities (Frankel and
Gabriele, 2017). TUI is a UK based travel operator organization and subsidiary of TUI group
which is engaged in offering luxurious travelling facilities to the domestic as well as foreign
tourist. Basically, this enterprise is owned by Thomson Corporation of Canada by having its
headquartered in TUI UK is in Luton, England. Therefore, main objective of this report is to
highlight the influence of current and recent trends on tour operation industry. Furthermore, an
appropriate stages and timescale will be outlined for understanding the method of developing
holidays and suitable tools of contracting. Additionally, various phases of designing brochure are
also outlined in the project for promoting holiday package of tour operator.
TASK 1
1.1 Effects of current, recent trends and development on tour operation industry
TUI is a well repudiated organization whose main objective is to offer outstanding
services to their desired consumers in order to gain competitive advantage. Basically, company
always tries to come up with innovative products and services for seeking the attention of
domestic as well as foreign consumers. However, tour operators are developing at a very fastest
rate due to maximization in consumer demand towards service industry. Innovative tour
packages and associated services are considered as major products of this industry. Mainly, this
sector is developing in retail industry where travelling agents are working for selling their
outstanding tour packages in other sectors (Güzel, 2014). Number of emerging trends and recent
developments are analysed which influence tour operator industry in various manner that is
described as follows-
Advancement in technology- Tourism sector is developing by the emergence of various
modern methods that are used by company while performing their several business operations. In
fact, most of the transactions are executed by TUI group with the help of advanced tools such as;
3

online transferring, instant transfer through advanced applications and many more. Digital world
helps in maximizing the quality of organizational products and services by facilitating end users
with instant respond. For example; online reservation, checking the availability of seats through
online facilities and many more. These changes in technology are supporting customers as well
as company and aids in maintaining long distance relationship in between organization with its
final users.
Influence of PESTLE factor- Development of each and every industry is connected
with external factors because this covers various elements such as; Political, economic, social,
technological, legal and environmental. For example; changes in political norms, rules and
regulations enforce an enterprise to consider this modification in governmental policies while
running their business operations at marketplace. However, economy of a nation is defines the
level of disposable income of consumers as well as its spending (Jin and Sparks, 2017). On the
other hand, legitimate aspects described the necessity for following the rules and regulations of
nation to the tour operator industry while performing the business operations.
Competition- Foremost benefits of entering and existing encourage various
organizations to emerge their business in tourism industry. As a result, these things maximize
competition level at marketplace as well as maximize employment opportunities for large
number of unemployed people. Hence, this will also help in maintaining equilibrium in between
demand and supply. Along with this, maximization in competition offers suitable options of
comparison for customers so that they can select best options.
Customisation- This term denoted some alteration in tour packages as per the consumer
choice and preferences for gaining their trust or loyalty. In previous time period, tour packages
are totally restricted to standardised forms as well as created by tour operators with the effect of
few other elements such as; governing bodies and tourism service providers. But, now time has
fully changed because now tour organization always design packages as per the consumer
preferences related with location, accommodation, transportation and many more by consulting
with consumers (Stronza, 2010).
Throughout the analysis, it has been understood that number of changes are incurred at
international platform which facilitate whole tour operators industry in various manner. In fact,
offers large number of facilities to the company as well as customers such as; users determine
seats before booking it, check the availability, instant booking facilities and many more. Hua
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Hin district and Thungyai-Huai Kha Khaeng Wildlife Sanctuaries have been taken which are
very much interesting place with unique qualities and attractive scenarios.
Thungyai-Huai Kha Khaeng Wildlife Sanctuaries- This place is having inscribed name
of UNESCO world heritage site in Thailad which covers almost two adjacent wildlife
sanctuaries. Mainly, covers region of Kanchanaburi, Tak and Uthai Thani and create a large part
of Thailand Western Forest Complex.
Hua Hin district - This place is considered as one of the most attractive district nearby
beach side and impressive resorts which gives an outstanding view of whole environment.
TASK 2
2.1 Stages and timescale involved in developing holidays
Holidays are design for enjoying each and every time in order to experience new things
by going on new places such as; number of tropical destinations is identified in Bangkok which
are considered as most beautiful places that will seek the attention of large number of consumers.
For instance; Hua Hin district is one of the eight districts in northern part of Malay Peninsula in
Thailand. However, population of this place is forecasted around 63091 in 2017 December by
Bureau of Registration Administration by expanded across the area of 911 km2. On the other
hand, via road it’s around 199 km south- south west of Bangkok. (Duggan, 2012). Thus, an
appropriate stage and timescale is going to involved for designing a creative holiday package for
Hua Hin and Thungyai-Huai Kha Khaeng Wildlife Sanctuaries in Bangkok for almost 32 people.
Stage and timescale is discussed as follows-
Market research- Initial step is to analyse the environment of place where trip is going to
organize for large number of people in order to mention the peacefulness of environment in
brochure of TUI. Hua Hin is having a tropical savannah climate where temperatures are very
much warm to hot in entire year with only minor variations. However, year started with dry
season before the arrival of monsoon in May. Rains is somehow comes from the month of June
to August and heaviest rains begins in September which continue till November. This shows that
consumers have numerous of opportunity to explore into Hua Hin and enjoy each and every
season near sea side as well as options of staying in sea side resort for experiencing the night at
that place (Frey and George, 2010).
5

Planning and scheduling- Now this time for making an outstanding plans which covers
various elements that is requisite while designing a holiday package such as; date, timing,
accommodation services, size of group, amenities and attractive things that must be covered in
itinerary. Therefore, an impressive itinerary of Hua Hin is outlined as follows-
7 days 6 night
Hua Hin (A trip to tropical destination in Bangkok)
Thungyai-Huai Kha Khaeng Wildlife Sanctuaries
With all inclusive (2999 Euros)
14th January, 2019 (arrival)
21st January, 2019 (Departure)
42 seated coach
Air tickets
Free Drinking water
Snacks
Full of entertaining facilities (songs, playing games etc.)
Stay in five star resort nearby seaside
Welcoming drinks
Breakfast, lunch and dinner
With all accommodation facilities
Additional charges of Parking
Above itinerary is designed by TUI for the trip of Hua Hin in Thailand, Bangkok for
offering a luxurious trip to desired consumers.
6

Contracting- This phase covers the process of framing and signing the agreements with
consumers by making them agree on specified cost. In fact, it’s a legal issue because company is
responsible to accomplish all the things which is mentioned in the contract and liable for
satisfying customer needs and demands.
Costing- After designing an outstanding trip for service user, it’s time for fixing the cost
of whole package by analysing all the certain facts or figures. This will cover various elements
such as; travelling tickets, accommodation and food services pick up and drop facilities, entering
fees of attractions and so on (De Koster, 2012).
Financial, evolution and pricing- In this stage, company have to now calculate all he
small and large expenses that is going to be incurred while trip in order to determine the profit
margins by involving several price fluctuations.
Tour brochure- Designing of brochure is really indispensable for creating awareness
about the whole trip amongst consumers. In fact, brochure must be attractive so that it can
automatically seek the attention of users. Main objective of this is to inform consumers about
basic facts of the package.
Advertising- There are numerous of methods are identified which are used by an
organization for promoting their sales as well as to inform consumers about the facts or figures
of tour package. For example; TV, Radio, newspapers, internet and many more.
Operations and execution- After making the plan and timescales for completing the trip,
it’s time for executing the entire operational activities at marketplace. Thus, activities which is
going to incurred in this are; deposits, ticket bookings henceforth. It’s a very significant stage
because this will deal with the implementation of designed actions for planning a tour.
Post tour management- This phase will comes after completion of trip of Hua Hin which
covers that TUI group is going to acquire feedback from service users in order to improve their
performance in next tour.
Activities
/timescale
1st
mont
h
2nd
month
3rd
mont
h
4th
month
5th
mon
th
6th
month
7th
mont
h
8th
mont
h
9th
month
Market
research
Planning
7

and
schedulin
g
Contracti
ng
Costing
the
holiday
Financial
evaluatio
n and
pricing
Designing
brochure
Advertisi
ng
Operatio
n and
execution
Post tour
managem
ent
Therefore, above process helps an organization in completing a designing process of
holiday package in suitable manner by fulfilling the needs of desired consumers. Along with this,
get succeeded in establishing their goodwill at marketplace by satisfying needs of users (Ko and
et. al., 2014).
2.2 Suitability of different methods of contracting
TUI group have engaged in various types of trip for generating maximum amount of
revenue by fulfilling the needs and demands tourist. Generally, contracts are the agreements
which have been signed by both the parties that are going to involved in a certain situation. For
8

example; consumers who wanted to enjoy the trip of Hua Hin are entered in a contract with TUI
group. Basically, its legal relationship between final users and provider in order to reduce
probabilities of any future risk, uncertainty, mistakes and errors that might incurred while trip.
However, there are certain terms and conditions which are mentioned in prospectus or brochure
on which both the parties are agreed before going for trip (Zhou, 2015). Thus, there are various
types of agreements are determined which is signed by associated parties that are discussed as
follows-
 Fixed Contract- Terms and conditions in fixed agreements are prior set before booking
process such as; things whatever is going to offered by TUI group during trip in certain
amount is already fixed for each and every member.
 Allocation Contract- These agreements are mainly signed between hotelier and TUI
group in which information related with allocated beds in hotel are informed to hotelier in
order to sell the rest other rooms.
 Ad-hoc – This option is engaged in dealing with overbooking or extra arrangements of
seats or beds. Basically, these are signed by tailor made operators for managing the
services for the end users.
2.3 Calculate selling price of holiday
Destination for members are decided Hua Hin in Thailand Bangkok which is a tropical
destination with full of attractive regions that will impress the users in various manner. In fact,
the entire tourist can enjoy their each and every time by spending a quality team with their loved
ones. Mainly, it’s a trip of 7 days and 6 nights in which every person can experience the
enjoyment of beach side that is really very attractive in January.
7 days tour package for Hua Hin Thailand, Bangkok:
Facilities
Price (in pounds)
Students Guest (above 10 years) Guest (6 months-10
yrs)
Accommodation 30 42 21
Transport
Air tickets
Taxi and coach fare
102.2
37.2
143.08
52.08
71.54
26.04
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Visit fare 50 70 45
Food 15 21 10.5
Sightseeing and entry
tickets 30 42 21
total 264.4 370.16 185.08
TASK 3
3.1 Planning decision taken for designing selected brochure
Brochure is an impressive template or publication which is created by TUI group for
capturing the minds of various targeting audiences in order to opt their tour packages. In fact, it’s
an appropriate style of adverting about tour packages which have been introduced by tour
operator. However, there are almost number of purposes that enforce an organization to design
creative brochure such as; for informing customers about company’s products, its newly
launched package and many more. Brochure aids tourist by clearing all the facts or figures about
an enterprise and its reliability (Lin, Yu and Chang, 2018). Thus, suitable planning process of
designing innovative brochure for TUI group is discussed as follows-
Design- First or foremost step is to clean about the layout of the brochure and artwork
that has to be applied for making it more impressive. Basically, multinational organizations
appoint agencies of advertisement for designing their brochures. Mainly, main purpose or motive
of the brochure explains its designing.
Cost- Capital is considered as foremost factor for company due to which before
conducting any activities an organization have to analyse the amount of budget that is going to
require for designing the brochure for TUI group. Mainly, cost of brochure covers various things
such as; printing price, designing, paper which will be use, media of distributing and many more.
Format- This involves the way of writing content in it, font size that must be visible and
clear for consumers, front cover, and contents henceforth. However, theme is the foremost
message that needs to be given in the brochure for whole society. Fold of brochure will
determine its opening because it’s must be folded in such a way so that opening of it begins with
orderly message. Paper selection must be of qualitative with full of shine and its graphics needs
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to provide visual treat to their consumers. Photos selection is really very tough job because this
will have a major impact on consumer minds (Potgieter, De Jager and Van Heerden, 2011).
Print specifications- Type of print which is going to use by TUI group such as; terms of
colour schemes.
By analysing above process, it has been understood that process which is used above in
designing brochure is very much appropriate and suitable because it helps in conducting all the
activities in suitable manner. Along with this, aids in designing brochure step by step which
reduce the probabilities of mistakes and errors. Mainly, above explained planning decisions of
accomplishing various activity through distinct phases will help in designing it in impressive
manner by understanding each and every activity in better manner.
3.2 Suitability of alternatives to a traditional brochure for distinct types of tour operator
In this modern world, number of technology are emerging at marketplace which are very
much useful and beneficial for distributing brochure across distinct region. As a result,
emergence of advanced tools diminished the use of traditional methods of marketing. In fact,
number of new methods of advertisement and interaction have been launched which replaces the
brochure use. Some of them are described as follows-
 Press- This method is covering the print media in which various factors that are used by
corporate world for promoting their tour packages are; articles in newspapers with
attractive blogs and magazines which shows the beauty of environment in pictures. Thus,
this media of passing the information is really very much effective and easy for sharing
the data with large number of masses.
 E-Brochures- These are known as electronic also which are determine through online.
Now-a-days, easiest way of communication through internet and easily connected with
long distance people without requiring much efforts of distribution. It’s a very common
in current world and even easy to access E-Brochures (Chan and et. al., 2014).
 Social media- One of most effective and highly used technology for distributing tour
packages are various social sites through which an organization can easily pass the
information at global platform.
3.3 Methods of distributing holiday packages for different types of tour operator
TUI group is a very large organization by having its branches in various regions and get
succeeded in gaining maximum range revenue. In fact, company got engaged in designing
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various types of creative tour packages that will definitely impress the minds of several users.
Therefore, it is essential to use certain type of methods for distributing holiday tour packages.
Some are described below-
 Direct channel- This tool covers that company is going to sell their product directly to
the end users without taking help from any intermediary channel. It’s totally flexible in
nature and having greater control because company is having direct interaction with final
users. For example; through social media this is one of the non-traditional tool that is
used for distributing package through personal conversation with final users, through e-
mail which is also a direct and many more.
 Indirect channel- As per this method, TUI group is not dealing directly to the end
customers and distributes their tour packages through supplier or any mediator. It’s a very
expensive method also due to the involvement of intermediaries.
TASK 4
4.1 Emerging trends in UK tour operators
Emerging trends in tourism sector made the tour operators and its activities too much
sensitive. In fact, company needs to provide comprehensive services for all the desired users.
Thus, TUI have adopted numerous of strategies in order offer fast and qualitative services to
their domestic as well as international clients. Therefore, Tour operators got engaged in
conducting various intensive researches for acquiring all the indispensable information such as;
changing taste and preferences of final users. However, various trends are emerging at
marketplace which influences an organization in various manners such as; emergence of
technology advancement for managing various business operations, changes in consumer
preferences, emerging high range of competitors and many more. This means that number of
emerging trends is identified at marketplace which enforces an organization to respond on it in
corrective way. Some of trends on which TUI and their competitors responded are discussed as
follows-
Pricing strategies- Cost of product expresses the money which has paid by users for
buying the certain goods. In fact, pricing of packages always conveys its quality and quantity.
Thus, tour operators always tries to design their pricing in that way somehow it can described
their product to the end users. However, pricing schemes of an organization are classified into
12

three main broad areas such as; premium, value for money and cheap value. Thus, price of TUI
strategies shows that company is adopting new trends of pricing strategies and follows the
necessary elements before setting price of packages. On the other hand, few competitors
provides discounting offer to their end users as per trends in order to gain competitive
advantages.
Distribution channel- There are almost two types of methods are identified for selling
the company products; one is direct and another is indirect. Thus, these methods are used by TUI
as per the situations but mostly TUI uses both the channels for reaching at the potential
consumers. This shows that company is getting influenced by trend of advanced technology and
tries to enhance its performance with the use of modern tools for distributing set products. On
contrary to this, competitors are using several other methods for distributing their goods and
services but also selected some modern method such as; social media etc.
Apart from these above, there are number of trends are emergence at marketplace which
plays a very crucial role in success and development of tour operators. In fact, following newly
emerges trends helps in grabbing the market opportunity by satisfying consumer needs and
demands.
4.2 Tactical decision could be taken by selected tour operator in various situations
TUI group have taken numerous of decisions for attaining its ultimate objectives which
are from different levels such as; strategic, tactical and operational. Tactical decisions are of
medium levels which are deals with implementation of schemes that are designed by an
organization. Mainly, these are handled by head of various departments which mainly influence
the particular functional region (Frankel, 2017). Some of the major tactical decisions that must
be taken by TUI group are;
 Tactical responses,
 Tactical Pricing,
 Tactical Marketing
 Tactical Planning.
Difference between tactical and strategic decisions is discussed as follows-
Tactical decision Strategic decisions
Their main objective is to determine best
suitable objectives which helps an association
On contrary, for fulfilling the sub-objectives
that are requisite for attaining ultimate or
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in acquiring recognized, popular and highly
profitable.
final target of an association.
Higher authority and top level of management
team are responsible for taking care of
strategic decisions because these members are
fully aware about the organization status and
situations.
These decisions are made by lower level of
managers team because they are responsible
for handling day-to-day operations.
Concentrate on future or long term objectives
such as; setting of long term vision of an
organization
Short term mission or decision taken for
resolving regular issues.
CONCLUSION
From the above report, it has been concluded that tourism industry is growing at fastest
rate due to increase in consumer demand. Basically, in this modern world every individual
wanted to enjoy their vacations by exploring across the nations and in distinct places which are
totally new or different from their native place. Thus, whole assignments shows several methods
that are used by an enterprise for promoting their tour packages across the distinct nation such as;
e-brochure, social media and many more. Throughout the project, it has been understood that
TUI group have adopted numerous options for promoting their tour packages.
14

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