Tour Operation and Management: Trends, Strategies, and Analysis Report

This report provides a comprehensive analysis of tour operation and management, focusing on the strategies and challenges within the industry, using Trailfinders Ltd as a case study. It examines the impact of current trends and developments on tour operators, including globalization, technological advancements, and changing customer preferences. The report details the stages and timescales involved in developing holiday packages, including destination research, itinerary planning, negotiation, and execution. It evaluates the suitability of different contracting methods for holiday components and assesses various types of tour operators, such as outbound, inbound, and domestic operators. Furthermore, the report explores the planning decisions for brochure design, alternative distribution methods, strategic and tactical decision-making processes, offering valuable insights into the practical aspects of tour operation.

TOUR OPERATION AND
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Analyse the effects of current and recent trends and development on the tour operator
industry........................................................................................................................................1
TASK 2............................................................................................................................................2
2.1 Access the stages and timescale involved in developing holidays.......................................2
2.2 Evaluate the suitability of different methods of contracting for different components of
holiday by various tour operators................................................................................................4
2.3 Calculate the selling price of services of holidays on basis of given information................5
TASK 3............................................................................................................................................5
3.1 Evaluate the planning decision taken for design of a selected brochure...............................5
3.2 Assess the suitability of alternatives to a traditional brochure for different types of tour
operators and recommend the most appropriate for your tour package......................................6
3.3 Evaluate the suitability of different methods of distribution to sell a holiday for different
tour operators and recommend the most appropriate one...........................................................7
TASK 4............................................................................................................................................8
4.1 Strategic decisions by different tour operators......................................................................8
4.2 Tactical decision making for tour operators..........................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
An effective management of tour operations is the most crucial and important factor that
is required to be taken in consideration by a tour operator. The tour operator plays a very deep
and crucial role in contributing to the revenue and growth of travelling or tour operating
company. A tour operator will provide various types of products and services to their customers
by means of brochures or catalogues. They take various measures to promote their services and
generate a decent amount of revenue. For the report, Trailfinders Ltd is been chosen as
organisations of context (Filby, Stockin and Scarpaci, 2015). It is a UK based travel and tour
operating firm. The report will lay emphasis on effect of recent and current trends, ongoing in
market and contribute in development of a tour operators. Besides this, a time scale will be
presented with assessment of various stages involved during a holiday. Various types of tour
operators are been analysed with different components of holidays. Also, the selling price of
holidays is been calculated. The decision planning of the tour operator with suitability to
different types of tour operators with tour operator package is been evaluated. The suitability of
various methods of distribution is used to sell a luxury package is been analysed. Other than this,
strategic decision making and their comparison in various situation is been analysed.
TASK 1
1.1 Analyse the effects of current and recent trends and development on the tour operator
industry.
The tour operators covers both tour and travel industries that helps the customers to get suitable
services during their stay and meeting of proper holidays related services (Zhou, 2015). The
tour operator will look after the offering of different tour packages and services which are been
offered by them to their customers. The travel agent associated with these tour operators have
played a major role in management of holidays and their operations in an effective way. Some
major recent trends and developments of tour operator and travel industries are as follows:
Increase in income
and economy: the
growth in economy of
country helps in
growth of travel and
Highly developed
technologies and
their extensive usage:
the highly
advancement of
Globalisation and
FDI: The expansion of
services and product
portfolio related to
travel and tourism on
Tailor made products
and services: The tour
operators like
Trailfinders Ltd
provide the facility to
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tourism within a
country. The major
benefit that is gained
by them is a high
amount of disposable
income. It is obtained
by savings retained
after application of all
the expenses. It also
helps in improving the
revenue of tour
operator country and
operational countries.
technologies that is
been implemented
within the travel and
tourism sector will
help in effective rise in
the gaining of a good
market (Lück, 2016).
Online ticket
bookings, e- brochure
and internet based
fund transfer is a
major technological
services that have
deeply changed the
course of tour
operations and travel
industries.
international level has
been a major trend,
affecting the tour
operator industries.
The worldwide reach
of tour operators and
meeting the needs and
demands of their
customers will help
the organisation to a
greater extent. On the
other hand, Foreign
direct Investment or
FDI will impact
performance of tour
operators to a greater
extent.
their customers or
clients to get holiday
related services
customised as per their
requirements and
needs. This will not
only help travellers to
have a comfortable
stay and time while
having the tour but
also reduce their stress
level and help them,
enjoy their tour. The
tour operator or travel
agent will look after
providing of services
and facilities as per
customers
requirements in order
to have their higher
satisfaction level.
TASK 2
2.1 Access the stages and timescale involved in developing holidays.
In order to develop a good amount of products and services, the tour operator like
Trailfinders Ltd have to follow certain measures and policies that will help in good handling of
operations and activities that will help in effective rise in capability and meeting of business
operations and activities to a greater extent (Caber and Albayrak, 2016). In order to develop a 5
night tour package for 42 adult students of 18 + age group for Brussels and Brugge, Belgium, the
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cited tour operator firm will follow certain operations and activities that will help it to meet the
customers requirements and needs in a better way. The operations and activities that are been
followed by the cited business entity is as follows:
 Destination research: the employees of Trailfinders Ltd will perform the in detail
research related to the external and internal factors associated with the destination. This
will include the proper assessment of political, economic, technological, social, legal and
functional components or elements. The locations and other services available at the
mentioned location will be accessed as per the development of holiday plan. The places
will be finalised and services like meals and accommodation is been fixed.
 Developing a tour itinerary and plan: this is the second stage which will involve the
assessment of the availability of products and services to be offered by the service
provider. It includes the evaluation of service provider, travelling expenses, route, mode
of transportation, places to visit, duration of stay and accommodation facilities with food
(Frankel and Gabriele, 2017). This systematic process will help the company to provide a
holiday service without any complexity. The Trailfinders Ltd will develop the plan in
accordance with the comfort of adult students visiting Brussels and Brugge.
 Negotiation process: Once the itinerary or holiday plan is been developed, the
negotiation process will be followed between tour operator and service provider at the
target tourist destination. Once these negotiations are been clarified, it is further discussed
between customer and tour operator. At this stage, the further plan is been discussed. The
cited tour operator firm will look after the proving od holiday package at a reasonable
costing including transportation, accommodation charges and meals for 5 days tour,
including the additional expenses. This is deeply based on the pricing strategies and
policies that are been followed by Trailfinders Ltd for its customers.
 Execution of tour: After the tour plan is been finalised and the pricing is been set, the
tour for 42 adults students for 5 days is been carried out by tour operator. The travel agent
will look after that the students are comfortably settled within the decided
accommodation and having a good holiday. Other than this, they will look after that the
clients i.e. students don't face any sort of problems or issues during their stay. A good
execution of the travelling plan and setting up of operations will help in development of
positive good will and customer satisfaction level (Zhou, 2015).
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 Taking the feedback: Once the tour is executed, the travel agent will look after the
process of students giving out their feedback about the tour. This stage or activity will
help the tour operator to get an assessment about the measures and actions to be taken in
order to improve its services in a better way. Besides this, it will help Trailfinders Ltd to
develop more effective and better services for their customers in the near future.
2.2 Evaluate the suitability of different methods of contracting for different components of
holiday by various tour operators.
Various sort of contracts are been set between the customers and the holiday service
provider that will help the organisation to meet their operational needs and support the customers
to finalize the services as per their requirement and convenience. The different sort of contracts
that are been followed by Trail finders are as follows:
Fixed contract Sale only contract
It is a type of contract which for a particular
term and has an expiry period. This is
beneficial for maximising the sales and
services that will help the business
organisation to generate a good amount of
revenue. It has set amount of services and can't
be altered. The major advantage that such
services possess is that it enables the bulk
purchasing and help the firm like Trailfinders
Ltd to have a cost effectiveness. But the
drawback includes the cost offered by the
customers for the services can't be repaid back
in case of cancellation. The service provider
can deny the claim of refunds. Also, it
possesses the risk of incomplete utilisation of
services.
Sale only contract, on the other hand is a type
of contract where the services are been sold on
the higher process that the fixed contract.
However, the contract is tailor made and can
be modified as per the needs and requirements
of their customers (Filby, Stockin and
Scarpaci, 2015). It doesn't possess the risk of
non utilisation of services and wastage of the
fund implemented. The billing or the funding
is been carried out on the basis of utilization
and consumption of products and services by
the travellers.
Besides this, there are various sorts of travel and tour operators operating in the UK's
market. Some major categories are as follows:
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 Outbound tour operators: they are the tour operators that provide the services to a
group or individual tourist on a team level (White, 2016). They operate on the local or
national level but can expand their operations to international levels too.
 Inbound tour operators: they are the tour operators which are directly bounded by the
customers and they manage all their operations from their arrival to departure, including
their accommodation, meals and transportation.
 Ground operators: they are the particular agency that facilitates an effective placing of
bookings related to a particular tourist destination including meals and accommodation
facilities. They keep the services and actions ready on a particular tourist destination.
 Domestic tour operators: they consist of the travel agent or the person responsible for
the providing of tour and travelling related services and actions and activities that will
help the firm to improve its performance and meeting customers needs and demands, who
visits the country of tour operator (Shigenobu and et.al., 2016).
Other than this, various components will be taken in consideration by a tour operator like
Trailfiunders Ltd. These elements and actions are to be taken in consideration by the service
provider for their customers. The elements that are been taken in consideration are:
 Accommodation: It involves the staying facilities that are been decided during the
setting up of a contract between traveller or customer and the service provider. The
details of these elements are been based on the hourly basis and thus, is one of the major
service provider sector associated with tour operator.
 Transportation: it is also an important factor that is been taken in consideration while
setting up of contract between the service provider and customers. It involves the
transportation charges, parking fee, fuel, drivers income and toll taxes that are applicable
on vehicle while travelling (Zhou, 2015).
 Catering: the meals or food and beverages services that are been consumed by the
traveller or customer is required to be mentioned and covered within the contract that is
been formulated by a service provider and customers.
2.3 Calculate the selling price of services of holidays on basis of given information.
The selling price of 5 days holidays for the 42 adult student of 18+ age group at Brussels
and Bruggs will involve an extensive expense. The expenses are in the Euro and pound. The
exchange rate considered as 1 Euro is equal to the 1.12 pounds.
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1 room will cost 92 Euro = 92*1.12 = £ 103.04
Cost of twin rooms for 5 days will be =23 *5*103.04 = £ 11849.6
Cost of Brussels and Bruggs for 1 person = £ 58.2
Cost of Brussels and Brugg for 45 students for 5 days = £ 2620.8
So selling price of package = £ 11849.6 + £ 2620.8 = £ 14470.4
Thus selling price for package for 45 students would be £14470.4
TASK 3
3.1 Evaluate the planning decision taken for design of a selected brochure.
As for the Trailfinders Ltd, the tour operator firm will look after the proper handling of
the operations that will include the selection of operations and activities which will help in
increasing the performance and effectiveness of the business organisation. The brochure will
help the business entity to have a good medium to showcase their products and services to their
customers and stake holders (Li and et.al., 2017). It will help the firm to recognise the planning
issue and take appropriate steps to mitigate the risk factors. The Trailfinder Ltd will look after
the proper assessment of the operations and activities that will help the customers to have a good
idea about the products and services that are been taken in consideration by the firm. Some major
factors that are been taken in consideration are as follows are:
 Budgeting: the cited business entity will have to look after the effective management of
the operations and actions that will help in good rise in the capabilities and actions as per
the financial resources available with firm. The cost of development, designing and
formulation will be taken in consideration by the firm that will help in good connectivity
with their customer base.
 Time scale and action plan: this will help the organisation to develop a good holiday
plan and schedule that will help the customer or traveller to get the proper idea about the
holidays. For instance, a travel and tour operator like Trailfinder Ltd will decide and
develop a good time scale and action plan that will help in good rise in the capabilities
and thus will help in meeting of the actions or capabilities that are been possessed by the
tour operator firm (Frankel and Gabriele, 2017).
 Target market: prior to developing of a brochure, the firm will look after the effective
handling of the business operations and activities that will help in good growth and
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development of the business operation. The multiple brochure will be drafted considering
the needs and demands of the customers in a better way.
3.2 Assess the suitability of alternatives to a traditional brochure for different types of tour
operators and recommend the most appropriate for your tour package.
The normal or traditional brochures that are been developed by the organisation consists
of a document, developed by a tour operator firm, that contains the various measures and
activities that are been followed within the firm (Caber and Albayrak, 2016). This will help the
customer or traveller to have a proper knowledge regarding the different services that are been
offered by a tour operator like Trailfinder Ltd. Some variants of brochure that can be taken in
consideration by the firm will include for their customers are:
 Online brochure: this is the electronic or digital format of a travel and tour operators
brochure that consists of all the details regarding the holidays and the other additional
services that are been occupied by the business entity. It can be send as an attachment,
uploaded online or can be placed on company's website for the easy and convenient
accessibility by the customer or traveller.
 Email attachment: this can be send to the customers on the specific request, through the
means of e mails. These brochures are been developed and sent by the organisation that
will help the organisation which offers the tailor made hospitality or tour services to their
customers (Tirasattayapitak, Chaiyasain and Beeton, 2015). This will help the customer
to effectively interact as well as negotiate the operations and activities that are been
developed by the organisation and thus will support good growth and development of the
firm in an effective way. The selective information is been shared through this brochure.
 Multimedia brochure: this involves the usage of different multimedia measures and
policies and actions that will help in effective rise in capability and gaining of the
operations and thus will help in suitable rise in meeting of aims and objectives of a
business organisation to a greater extent. It involves the usage of multimedia tools like
audio, video, images etc that will make the brochure more interactive and informative for
the customers. Its is a costly approach of getting the clients or customers and delivering
the travelling related information (Tay And et.al., 2016).
Trailfinder Ltd can use the means of e brochure or email brochure that will help the
organisation to handle the business operations and activities to a greater and significant amount.
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3.3 Evaluate the suitability of different methods of distribution to sell a holiday for different tour
operators and recommend the most appropriate one.
The firm will look after the effective following of the policies and activities that will help
in improving the performance of a tour operator firm that will help the organisation to take in
consideration various sort of measures which will help in good growth and development of a
business organisation (Ganor, 2017). As the brochures are one of the most important tools or
medium for the organisations to improve the quality of service and thus facilitates an effective
fulfilment of customers needs and demands. Various methods of distribution that are been taken
in consideration by a tour operator firm like Trailfinders Ltd are:
 Placing travel agents: the firm will effectively place the qualified and supportive travel
agents that will help the business entity to increase the performance and thus will help in
meeting the customers needs and demands of the enterprise. They get additional money
or commission from tour operators for bringing the clients or customers to them (Shyju
and Lama, 2015).
 Online sales: the firm will look after the effective measures of promoting the good
services and activities and thus will help in the better setting of the operations and
actions. This will include the placing of an online brochure and taking the orders or
booking tickets of customers through the means of internet. It is a faster, safe and easy
method of getting accessibility by the tour operators.
 Over the phone: the tour operator like Trailfinder Ltd will look after the effective
management of the business actions and activities that will help in improving the
performance by taking the orders by the means of telephone calls.
For a luxury tour package, travel agent will be the most suitable.
TASK 4
4.1 Strategic decisions by different tour operators
Tour operator is the person who arranges different items, packages, destinations for a
complete holiday plan for its customers. Strategic decision making is a systematic plan with
external environmental factors focus on strengths of the organisation and reduces the weaknesses
to increase the profits and brand image (Lück, 2016). A strategy that is helpful for tour operators
and reduction of intangibility is to connect to customers through internet and other social sites.
Tour operators can show pictures to customers of their dream destinations which will attract
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more tourists. Strategic decision making is a broader concept as it is for long term, purposeful,
requires commitments. There are different types of tour operators who have to take different
strategic decisions according to various factors like external environmental factors. Outbound
operators are the operators who travel outside country and such operators can earn high profits
due to currency exchange in economies. Inbound operators operate in tourism where tourists
come from other countries and this can turn to income from tourism. Domestic operators is the
tourism where they travel within same country.
Direct sell operators are some operators who sell their packages to the travel agents
instead to selling directly to the customers. Sometime customers think that it will cost them more
but the truth is it is cheaper. Another strategy can be developing package holidays which
includes travel expenses, destinations, tickets which will help customers from other tensions and
they can enjoy their holidays. Costing of package holiday should be made wisely so that
business can generate revenue to cover fixed and variable costs and give profits. Tour operators
have to create different schemes costs and such packages so that in minimum cost it can attract
so many customers (Belady And et.al., Microsoft Corp, 2014). Strategic decision is such which
is for long term and maintain loyalty towards customers. Marketing can be done through internet,
travel agents, direct sell. Strategic decisions includes forecasting demands, finding ways to
reduce costs, building brand strengths and maintaining good relationships, strategic linkages.
While taking strategic decisions operators have to focus on various factors like research like
identification of social, economic, political, cultural and climatic factors which may affect the
tourism. Tour itinerary development, negotiations with suppliers or vendors, Boucher designs
and production, administrative staff and feedback, transportation, accommodation, meals, tourist
guide, investments funds, mode of transportation are some areas where tour operators need to
focus for a successful tourism. Strategic direction leadership helps to make policies, creating
brand image and management of destinations for the purpose of expansion and development of
tour operations industry (Haque, Ahmed and Razak, 2017). If brand image of the business will
be good it will attract new customers as well as retain the existing customers. Intangibility of
tour operating businesses is the key factor which makes this business unique from others.
Strategic decisions have to be taken carefully as it is for long term and can not be reversed once
taken and implemented.
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4.2 Tactical decision making for tour operators
Tactical decisions includes discount pricing strategy which will attract customers with
decent discounted packages. Tour operators will also gain competitive advantage in the market
over others. Another tactical strategy is segmentation, targeting and positioning (Page, 2014).
Generally in industry segmentation is done, targetting in organisation and positioning by tour
operators. Another tactical decision is related with season and prices of tour packages can be
raised or reduced according to season. Creative promotion strategy is also a powerful tactical
decision. Methods, tools, techniques and budget of promotion helps in promotion of tourism
business worldwide.
Every business should take ethical decisions for operation of their activities. The general
question arises is whether zero fee for tours is ethical or not. Ethics is all about doing right or
wrong for oneself or as a whole (Shirai and Ono, 2017). Everyone has different perception for
ethics for themselves. Giving discount is different from zero fee tour making. But businesses
have to follow the ethics while conducting activities. Strategic decisions are different from
tactical decisions. A tactical decision are for short time and requires immediate action for
correction otherwise business will have to pay for it. For this purpose a strategic planning is
required to avoid problems related to tour operations. A proper management is the best way to
reduce costs and maintain profitability. Management includes planning, organising, staffing,
directing and controlling. After implementations of plans, control is necessary. A good leader
plays an important role in decision making. A leader has ability to guide followers (Khuong and
Nhu, 2015). This quality is required in tour operation industry. A leader always take decisions
according to situations and find solutions to the problems immediately. Tour operators have to
follow different methods for selling of tour packages which includes brochures, advertisements,
cultural programs, foreign tours, discounting offers, luxurious hotels for stay while tours.
CONCLUSION
Thus, from the report, this can be concluded that the effective management of the
operations related to tour and travels. The current trends and development practices will help the
organisation to improve its performance. The effective holiday plan and assessment of different
services is been included. Besides this, the report also covers the planning of brochure designing,
suitability of various alternatives and recommendation is been provided. Along with it, various
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strategic plan and decision making can be applied dsifferent tactical decisions are been compared
in different situations.
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