Tour Operation Management: Stages, Contracts, and Pricing Report

This report provides a comprehensive overview of tour operation management, addressing key aspects of holiday development. It begins by examining the stages involved in creating a holiday, starting with market research to identify trends and opportunities, followed by planning, contracting with suppliers, costing, financial evaluation, and brochure creation. The report then evaluates different contracting methods, such as fixed contracts and allocation, and analyzes the suitability of each for various components of a holiday package. It also categorizes different types of tour operators, including outbound, domestic, and ground operators, and their respective roles. Finally, the report includes a practical example of calculating the selling price of a holiday package for a group of students visiting London, Paris, and other destinations, incorporating costs for accommodation, transportation, and other expenses. The report concludes with a list of references used to support the analysis.

Tour operation management

Market Research: the first stage in the developing the holiday is the market that helps
the organization to make new trends and development areas. Market research is the
best source or tool to analyze the potential opportunity and threat within the market
approaches. This helps to planning of the holiday packages in the organization
(Bridges and et.al., 2018). Lcb conducts online market research that assists the
management to determine the demand of the customers with help of web site of Lcb.
Conduct the research for the various destinations and identifies their view on selected
destinations.
 2.1 Assessing the stages and timescale involved in developing
holidays

Planning and scheduling (determine destinations, hotels, capacity, dates
etc.) : after conducting market research, next process of preparing holiday tour
is planning and managing task as per the implementation of large developing
traveller packages. Planning tool helps company to assists in designing
packages as per the demand or needs of clients. On the other hand scheduling
involves process that helps employees to understand the process of
implementing the planning into proper scheduling process.
To be Continued..

Contracting (negotiation with suppliers): This process helps management to keep
maintain the effective services to the clients. Company or operators organise different
services in order to meet the needs of the client, they arrange services like cab facility,
restaurant and other different vendors.
To be Continued...

Costing the holiday: This is another process which needs to be considered by tour
operators. Costing the holiday packages is the foremost or essential process for the
company. Such as like to be contributing large part in the managing the best holiday
packages. Costing involves all expenses such as accommodation, transportation, food
meals etc. operator needs to analyzing the cost benefit in order to keep the budget
accordingly.
To be Continued...

Financial Evaluation and Pricing: situational analysis or financial evaluation pricing
of the market necessary for the company in order to meet out the best performing goals
and new developing tasks. Financial consideration helps to determine the profit for the
company. Manager considered low prices must be to achieve their sales objectives.
Financial evaluation helps to evaluate the best prices of services or proceed with
project.
To be Continued...

Creating the brochure: this step promoting the services or tour packages
directly in the market area. Creating brochure communicate all services of tour
operators which they gave to customers. Besides, brochure is the kind of tool or
technique that consists all regarding information of new offers (Elliot and Litvin,
2016).
Advertising: advertisement will be the next process or stage involved in
developing holiday. Advertisement helps to disclose the nature of developing new
effective challenging material goals. Advertisement promotes tour operator business
and attracts new travelers and goals.
To be Continued....

Fixed contract: fixed contract term helps to provide quality services to customers for
which they looking for. Contract assures clients good services and satisfies them into
proper manner. Lcb provides business or profit to other small business by making
small contracts within the same sector.
Allocation : the most suitable method of contract in which company contract with the
hotels and booked prior rooms as per the number of travellers or room basis.
Accommodation which is helpful in facilities for the customers. Tour operator
responsible for taking care of the accommodation facilities for the students.
 2.2 Evaluating the suitability of different methods of
contracting for different components of the holiday.

Outbound tour operators : outbound tour operators are generally those
operators who promoting multinational holiday tours. Outbound tour operators
provides holiday packages to an individual of his own country to another country
as per the pre planning. They arrange different types of documents of travellers
such as visa, transportation, accommodation, local sightseeing etc.
Different types of tour operators

Domestic operators : it is the another kind of tour operators which operates
within the country. They helping to promote beauty, culture diversity and making
holiday packages as per the needs of customer. Domestic tour operator are floating
novel package-sin order to tap the enormous potential.
Ground operators : it is the another type of tour operator which refers to
destination management companies, reception operator and handling agencies
some examples of ground companies. Ground operators are generally liable for
arranging land for a specific destination.

For example one group of students will be visiting London, Paris, France and UK.
Their days of holidays more than 5 days and the total number of students are 45. The
total cost of package will be calculated in pound with exchange rate as considered as
1Euro = 0.85 pounds. If they getting 54 rooms which, means total cost of rooms would
be £45.9. on the other hand, cost of the 23 rooms for 5 days would be £5278.5. on the
other hand cost of B&B would be approval £2295.
 2.3 Calculating the selling price of a holiday from give
information

Expense Cost
Luxury coach 5400
Cost of B&B 2295
Hotel cost 5278.5
local tour guide 900

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REFERENCES

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