Tour Operation Management Report: Trends, TUI Travel Plc Analysis

This report provides a comprehensive analysis of tour operation management, focusing on the business operations of TUI Travel Plc. It begins with an introduction to the impact of globalization on tourism and the role of tour operators, followed by an examination of recent trends and developments in the UK tour operation sector, including the rise of online travel sales and the impact of new market opportunities. The report includes a detailed tour plan for TUI Travel Plc, highlighting destinations such as Goa (India), Chile, and Brazil, along with package attractions, costs, and selling prices. It also explores non-traditional methods of communication and promotion, such as internet marketing, guest blogging, and online classifieds, to assess their suitability for the tour operator. The report concludes with an analysis of emerging trends in the UK tour operator sector and a comparison of tactical and strategic decisions that tour operators can make.

Tour Operation
Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
ASSIGNMENT 1.............................................................................................................................2
1. Recent trends and development in tour operation sector.........................................................2
2. Tour plan of TUI Travel Plc.....................................................................................................3
3. Cost of components and determine the selling price...............................................................5
4. Brochure to assess the suitability of alternative methods (non-traditional) of communication
and promotion..............................................................................................................................6
5. Non-traditional methods of distribution to sell holidays package..........................................7
ASSIGNMENT 2.............................................................................................................................9
Task 1 Analyze emerging trends in UK tour operators sector and evaluate how the various tour
operators responded.....................................................................................................................9
Task 2 Examine the difference between tactical and strategic decisions and identify and
compare some of the tactical decision that could have taken by the tour operator...................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
The emergence of globalization leads significant impact on tourism and tour management
related practices. This growth in Tourism has increased its in contribution in the economy of
nation. For facilitation of best services, various individuals associated with tourism are working
with each other for generating appropriate profit along with facilitation of best services such as
travel agents, transport, accommodation and food and beverages (Culver, 2006). In this process,
importance and requirement of tour operators has significantly emerged. In the current business
environment, Tour operators are responsible for managing various activities associated with
travel and tour industry. They are also responsible for arranging packages along by promoting
new tourism destinations in all over the world. Operators are offering wide range of services
related to food, accommodation and transportation (Mehmetoglu, 2004). The present study is
going to discuss various aspects of tour management with reference to business operations of
TUI Travel Plc.
TUI Travel PLC is well known as British leisure travel group that is having it’s
headquarter in Crawley, West Sussex. The company was incorporated on 3 September 2007 with
a merger of First Choice Holidays PLC and the Tourism Division of TUI AG, which owned
56.4%. Presently, company is operating its business in 180 countries and claimed 30 million
customers. Business entity is listed in the London Stock Exchange (TUI Group about us, 2015).
After incorporation of TUI Travel Plc, the management has acquired some most popular
companies associated with tour operations such as Thomson, Fritidsresor and Nouvelles
Frontières along with some percentage of shareholdings in the hotel groups RIU and Magic Life.
All the business strategies make TUI AG as one of the world’s leading tourism groups. In order
to maintain goodwill and brand value, the management of business entity is always trying to
maintain trust among customers along with the business partners in management practices (TUI
Group about us, 2015). Compliance is therefore an important pillar in corporate governance
activities. TUI Travel Plc has a number of divisions that provide wide range of tour related
services and activities based on tourism industry like, vacation division, trade, airlines, etc. All
these elements for managing various business operations associated with tour management.
Therefore, this report examines current trends in tour operations business that is having
significant impact on growth and profitability of business (Henry, 2006). In addition to that, it
also examines service development process which is managed by tour operators.
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ASSIGNMENT 1
1. Recent trends and development in tour operation sector
There are several changes which are identified in travel and tourism industry of UK that
are having significant impact on tour operators and tourism related activities. As per the analysis
of wide range of data, it can be stated that there is strong performance addressed in the inbound
tourism in UK which has created the positive impact on hotel. In addition to that, the emergence
of new budget hotels along with low cost 4-star accommodation services provides significant
support to tour operators and other companies associated with travel and tourism business in
offering of low cost services to consumers all over the world (Hansen, 2007). Online travel sales
continue to grow and have accounted for half of total travel retail sales in the year 2013. Apart
from this, online selling of tour packages has recorded significant growth that plays important
role in order to enhance company's connectivity to consumers of all over the world. In this
process, a strong digital strategy is selected by tour operators during expanding the business.
The evaluation of tourism statistics has found that more than 34.4 million tourist has
reached in UK since after 2010. Apart from that, it has been examined that average expenditure
made by travels was £636 in 2014 and £650 during the peak season of 2013. As per the current
market trends, the management of TUI travel PLC has formulated various strategies through
which company is able to provide best experience to its consumers (Travel and Tourism in the
United Kingdom, 2014). In this regard, management always tries to offer wide range of creative
services which would support management for handling market competition level. This is
because there are around 600 organizations managing business as tour operators in UK. In
addition to that, public authority of UK has also formulated various strategies and regulations in
order to support travel and tourism sector in the form of making easy license policy (Peters,
2013). This new strategy is providing significant assistance to tour operators to survive in the
highly competitive market conditions and increase their profit margin. Apart from that,
management of TUI travel plc is developing various strategies for managing these kinds of
market opportunities such as joint venture for establishing in-flight catering, in-flight rotables
support etc (Weaver, 2011). On the other hand, emergence and growth of new market like India
and China has provided an opportunity to tour operators for facilitating low cost tour packages
associated with new tourist destinations of the world.
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2. Tour plan of TUI Travel Plc
TOUR PLAN
Destination
s
Description Major attractions
Goa
(India)
Goa is one of the leading tourist
destinations of India that is very
popular for its beaches, historical
destinations, wide life century
etc. It is very popular among
western tourist.
Baga beach, Aaguda Beach, Bats Island,
Bom Jesus Basilica, Fort Aguada, St
Cathedral Church, Bondla Wildlife
Sanctuary etc.
Chile Chile is identified as republic
nation that is situated in South
America with holding of land
between the Andes mountains
(Grimwade, G. and Carter, B.,
2010). This place has several
wild life park and animal
species.
San Cristobal hill, Alberto de Agostini
national park, Yelcho lake, Miscanti
lake and Chiloe island, Santiago, La
Serena, San Pedro, Torres del Paine
national park, Villarrica,
Brazil Brazil is termed as a federative
republic nation that is located in
South America. This place is
bounded by Atlantic ocean
which is having various
historical destinations.
Christ the redeemer, Santa Teresa Rio de
Janerio, Brasilia, Manaus, Salvador,
Fernando de Noronha, Sao Paulo
museum of art and Fort Copacabana,
Appropriate time to visit:
Destination Appropriate time degree to trip
Brazil The balanced time and the tourist season in Brazil start
from December to March. During this session, the
large number of tourist visits associated with foreign
or domestic location is visiting Brazil (Donohue,
2007).
Chile The best time to visit the Chili is identified as January
to May. This is because this time climate is warm and
un-crowded and consumer’s gets best experience.
Goa (India) The ideal time or season to visit is October to April. It
has been spotted that tourist can experience several
festivals during this period in Goa along with huge
crowd.
Reasons to travel with TUI travel PLC
TUI travel plc is committed to offer great experience to consumer with wide range of unique
services. Therefore, the Customer executive of company is having significant knowledge of
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different strategies through which people can assess best services as per their distinct
requirements (Kyriakidou, 2005). Our executives are always ready to help in every activity,
including plan to book vacation. Business entity always makes efforts to provide best services
in each stage of tours there people would assess best experience in the transportation,
accommodation and food. The primary objective of the organization is to help consumers this
is because customers’ satisfaction is primary aim of company and promise that visit us and
have a best experience of travel in Brazil, Goa (India) and Chile.
Package Attractions:
- TUI travel Plc is offering nine days tour package that will provide an opportunity to people to
visit various destination of Goa (India), Chile and Brazil. The cost of package starts from 4000
Pound. In this tour package, an individual can assess wide range of services associated with
accommodation, transportation and food (Campbell, 2012). In addition to that, company also
facilitates wide range of services as per budget and interest of visitors in all over the world.
 On day first we will arrive to Goa, the local host will offer various services and will
also suggest various destinations and tourism activities to have great experience and
feel relaxed.
 On day two we will trip to Santana beach resort. A 6-minute walk from Candolim
Beach and 3.9 km from the 17th-century Fort Aguada
 Day third we will visit Fort Aguada, it is addressed as one of the most popular
historical destination of Goa (Bhatia, 2012).
 Day four is all about leaving the Goa (India) and flies to Chile for assessing a great
experience at San Cristobal Hill.
 On day fifth, we will visit Torres Del Paine national park. It is a highly popular
national park which is bounded by glaciers, lakes, mountains and rivers.
 On day six, we will take you to largest penguin colonies to meet penguin families on
island that is located in South Chile. It is named as Los penguin’s natural monument.
 On day seven, we will fly to Brazil for having some unique experience.
 Day eight we will have a full day trip to Rio de Janeiro. In this, you will have tour to
rain forest which is situated in the middle of city where you will also experience bird
sanctuary by visiting Tijuca National Park.
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 On the last day of tour, you will have trip to Christ the redeemer. The Jesus Christ
statue was build between 1922 and 1931. The statue is 30 meters tall and 38 meters
wide.
3. Cost of components and determine the selling price
Cost determination of package
Services Cost(in £)
Flight tickets 1050
Hotel booking 600
Package tour booking 350
Surface transportation 250
Foreign exchange fee 200
Insurance charges 100
Car rentals 200
Food 200
TOTAL 2950
Selling price per package = £ 4000/person.
Profits per package = 4000-2950 = £1050.
4. Brochure to assess the suitability of alternative methods (non-traditional) of
communication and promotion
Non-traditional modes of communication and promotion
 Internet network: This communication method plays important role in order to
influence consumers towards different services of TUI travel PLC by building a
regular conversation between company and customer.
 Guest Blogging: The use of tool will be found very effective in order to expand the
business by having great opportunities in blogger of company (Tani, 2014). This tool
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has found very effective for creation of distinct image of business entity.
 Free online classified: This tool supports management for creation of new business
opportunities for TUI travel Plc and offers significant support to attract large number
of consumers toward different services of firm.
 Meet-up groups: This method of communication will allow tour operator for
establishment of long term relationship with different consumers on basis of individual
and similar interest or needs.
Benefits of non-traditional methods in branding
- These tools are more efficient and dependable.
- It reduces marketing related expenditures.
- It provides new areas of business expansion.
- This will increase a base of loyal consumers.
- It supports management in creation of distinct image of company with the help of some
unique marketing tools.
Suitability for TUI Travel Plc
Online network
This tool increase social connection between
both parties in which management can use
several online tools such as social media,
emails and online websites that allow
company to share information with
customers about packages and destinations
along with new offers.
Guest Blogging
This method will increase corporation
between both parties. It provides
opportunists customers to ask their quires to
executive (Culver, 2006).
Ways of tour promotion
- TUI Travel Plc can consider the use of Google Ad words for advertisement of their official
portal to enhance its visibility.
- Company can adopt different online communication tools such as social networking sites
like; face book, twitter, etc. and other site to publish their brochures and new offers within
less time period.
5. Non-traditional methods of distribution to sell holidays package
As per the current market trends, importance of non-traditional distribution tools have
significantly increased to increase sales of different services. In this regard, some most important
tools are discussed below:
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 Distribution through online websites: In the contemporary era, the online distribution
method is way to attract more customers in which the management of TUI Travel Plc can
offer wide range of tour packages and offers on online websites of company
(Mehmetoglu, 2004). It also provides an opportunity to company about promotion of new
tour packages. Use of social media: The management of TUI Travel Plc can uses social networking
websites like, facebook, twitter, etc. this system to sales different products and services
that also increases the brand image of company and can assess distinct needs of
consumers (Henry, 2006). On these platforms, Organization can share picture,
information, videos of destinations and other activities of TUI travel Plc. Mobile application: The increase in number of smart-phone users has increased in
importance of distribution of different holiday packages through mobile application. It
develops direct contact with consumers and company can assess purchase pattern of
consumers through mobile applications and offers best holiday package as per the interest
of consumers.
 Websites of other hospitality firms: In this approach, TUI Travel Plc can establish
partnership with other companies associated with hotel, airlines etc (Hansen, 2007). And
offers different tour packages on online websites of airline companies, hotel brand, etc.
This approach has found very effective in order to increase number of target consumers
of different holiday packages.
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ASSIGNMENT 2
Task 1 Analyze emerging trends in UK tour operators sector and evaluate how the various tour
operators responded
From the above discussion, it is clear that travel and tourism sector of UK have been
emphasizing on current trends so as to meet the needs and demands of customers. The ratio of
inbound tourism in UK has been increasing and that has been accelerating the performance of
tourism concerned entities (Campbell, 2012). According to the emerging trends, the hospitality
industry of UK has introduced several types of hotels and accommodation related facilities on
affordable and effective prices. From the research, it has been stated that hospitality sector
emphasizes chiefly on online promotion of services so as to deliver convenient services to the
clients. Tour operators respond to market changes and trends in positive manner and according to
the same, they make several changes in the service delivery provision.
In such respect, TUI Travel plc has framed numerous strategies so that customer
experience can be increased and they can be provided the best service delivery. The government
in such respect has also developed easy licensing policy which reduces the level of complexities
in managing international trade policies (Bhatia, 2012). All the new strategies have been
changing the way of managing things and such strategies are also beneficial for tour operators
because it provides them the opportunity to survive in competitive market place for longer span.
Several new packages are also started by the travel and tourism entity which persuades the
attention of customers and this also gives them to augment the product line. In respect to the
subsequent organization, TUI Travel plc has made diversified tour plan so that all customer can
experience tourism of all the major destinations (Dodds and Graci. 2012). Hence, tour operators
are able to entice more number of customers towards this service provision and as a result, the
services related to travel and tourism sector gets augmented in all areas. In order to develop the
demand for tourism services, the tour operators have been focusing on effective marketing
practices so that competitive positioning can be created at market place. Competition level has
been increasing at marketplace and as per the current competition; TUI Travel plc has been
facilitating a lot of changes in all business activities (Mehmetoglu, 2004). As compared to other
competitors, all the hospitality organizations are managing their work processes as per the recent
trends and dimensions.
8

Task 2 Examine the difference between tactical and strategic decisions and identify and compare
some of the tactical decision that could have taken by the tour operator
One of the primary differences between tactical and strategic intelligence is the time
orientation which needs to consider while managing business operations in competitive business
environment. Strategic decisions are basically taken for the purpose of clarifying the goals in
broader terms and this also uses organizational resources in adequate manner. TUI Travel plc is
able to manage all the activities in optimum manner especially by emphasizing on utilizing the
resources in feasible manner (Campbell, 2012). On the other hand, tactical level decisions are
based on utilizing organizational resources to achieve the sub goals that support the defined
mission. The chief focus has been given towards company's strategic goals and along with the
same, emphasis is also being paid on quality aspects; therefore as a result, TUI Travel plc is
emphasizing chiefly on delivering quality services to the clients (Hansen, 2007). This level of
intelligence focuses more on the resources available for achieving strategic goals with quality
results; hence TUI Travel plc is able to retain customers for longer span. Strategic decisions of
TUI Travel plc helps the company to visualize things for future aspects; hence the opportunities
of growth can be increased for the same. Strategic aspects also help the tourism entity to
recognize trends related to travel and tourism sector and as a result, it helps in generating
innovation in all the projects. Strategic level decision is taken for long term and it changes
frequently as per the needs and demands of business entities (Bhatia, 2012). On the contrary
Travel TUI plc undertakes decision for shorter period and they can be changed as per the market
conditions. Hence, from the discussion it can be said that better outputs can be acquired by
focusing on strategic and tactical decisive aspects.
CONCLUSION
As per above assessment, it can be concluded that tour operators are playing key role in
travel and tourism industry because tour operators develop an appropriate coordination among
various services. This report has found that operations of tour operators associated with
accommodation, transport and food and beverages are having direct impact on satisfaction of
consumers along with brand value of company. This study has found that non-traditional
distribution tools such as online websites, social media, mobile applications etc. has played
important role for increase in sales of company along with the promotion of different offers.
9

REFERENCES
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(6). pp.17 – 23.
Dodds, R. and Graci. S., 2012. Sustainable Tourism in Island Destinations. Routledge.Horner, S.,
2012. Business Travel and Tourism. Routledge.
Donohue, R., 2007. Travel and Tourism Public Relations. International Journal of Contemporary
Hospitality Management. 19(1) pp.96–97.
Grimwade, G. and Carter, B., 2000. Managing small heritage sites with interpretation and
Community involvement. International journal of heritage studies. 6. Pp. 33-48.
Hansen, D., 2007. Cost Management. Cengage Learning.
Henry, C., 2006. Periscopic media tour. Strategy & Leadership. 4(34). pp. 56-60.
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tourism and leisure SMEs. 12 (3). PP.192 – 206.
Mehmetoglu, M., 2004. Tourist or traveller? A typological approach. Tourism Review. 59(3). pp.
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Pan, B., 2008. Handbook of Consumer Behavior, Tourism, and the Internet. International
Journal of Contemporary Hospitality Management. 20(6). pp.711–712.
Peters, M., 2013. Of Other Thoughts: Non-Traditional Ways to the Doctorate. Springer Science
& Business Media.
Weaver, D., 2007. Sustainable Tourism. Routledge.
Weaver, D., 2011. Can sustainable tourism survive climate change?. Journal of Sustainable
Tourism. 19(1).pp. 5-15.
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through: https://www.rezdy.com/blog/best-tour-operator-booking-channel-trends-2014-
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