Tour Operation Management: Trends, Development & Decision-Making

This report provides a comprehensive overview of tour operation management, analyzing the effects of current trends and developments in the tour operator industry, assessing the stages and timescales involved in developing holidays, evaluating contracting methods, and calculating holiday selling prices. It also examines planning decisions for brochure design, alternatives to traditional brochures, and distribution methods. Furthermore, the report evaluates strategic decisions made by different tour operators and compares tactical decisions in various situations, offering insights into the complexities of managing tour operations effectively. This document is available on Desklib, a platform offering a range of study tools and solved assignments for students.

Tour operation management

Contents
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................4
P1.1 Analyse the effects of current and recent trends and developments in the tour operators
industry.........................................................................................................................................4
Task 2...............................................................................................................................................6
2.1 Assess the stages and timescales involved in developing holidays.......................................6
2.2 Evaluate the suitability of different methods of contracting for different components of the
holiday and different types of tour operator.................................................................................9
2.3 Calculate the selling price of a holiday from given information.........................................10
Task 3.............................................................................................................................................12
3.1 Evaluate the planning decisions taken for the design of a selected brochure......................12
3.2 Assess the suitability of alternatives to a traditional brochure for different types of tour
operator......................................................................................................................................14
3.3 Evaluate the suitability of different methods of distribution used to sell a holiday for
different types of tour operator..................................................................................................16
Task 4.............................................................................................................................................18
4.1 Evaluate the strategic decisions made by different types of tour operator..........................18
4.2 Compare the tactical decisions that could be taken by a selected tour operator in different
situations....................................................................................................................................19
Conclusion.....................................................................................................................................21
References......................................................................................................................................22

Introduction
The tour operations management is considered as an essential aspect of travel and tourism sector.
The tour operators are those who purchase various services and facilities which will be finally
served to the clients. As at the present time the travel and tourism industry is growing in a
consistent manner, so tour operators need to manage their operations appropriately. The services
and products which the tour operator purchase is like accommodation for transportation, and
many more, all these are formed into one package which is offered to customers. This report
helps in knowing about the effects of the trends in the market. The development of the tour
management will be explained in this report. The brochure is essential for the company in
attracting customers towards the products and services. This report will assist in knowing about
the way through which brochure can be created. This report also aids in understanding the
tactical as well as strategic decision making for the different tour operator.

Task 1
P1.1 Analyse the effects of current and recent trends and
developments in the tour operators industry.
Title- Determining the effects of the current trend and
development in the tour operator industry.
Introduction
It is seen that the tour operator industry had progressed well
after the world war 2nd when it planned the first tour packaging.
The tour operator has to focus on having proper development
and on the recent trends. The change in the attitude, as well as
behavior of the tourist, creates changes in the trends which
have to be considered properly. This task helps in knowing
about the current trends as well as the development of the tour
operator industry.
Tour operators
Tour operators are a company which provides various holiday
packages to the customers. The tour operators purchase various
items and then they combine all of them together with which
they create a holiday pack. The created package is then
provided to the customers at exclusive prices. The travel agents
provide travel products in parts different but the tour operators
provide all combined package to the customers. They help the
customers to get good traveling experience. Trail finders ltd
provides value as well as exceptional services to the customers.
It has over 1000 employees working. They have approximate
15million customers connected to them. They provide various
services like a hotel, flights, cruise, car, accommodation, etc.
Role of tour operator
While planning for the better holidays the tour operator plays
an essential role in it. The tour operator helps the customers to
have a proper holiday. They help in choosing the best option
for holiday.
The effect of current trend
Various things get changed in the tour operation management
to have growth as well as proper development in the sector.
Development in the industry will also assist in an increase in
the economy. Some of the elements in which tour operator
management had made changes:

ICT in tourism- This helps the company, in turn, the
marketable innovation so that it can help in attracting more
customers.
Increased competition- Increase in the development and
growth of the travel and tourism industry created an increase in
the competition in the marketplace. So to deal with this issue
the tour operators are planning for the strategies with the help
of which they can decrease the risk of competition.
Technology- Changes are made in the technologies which the
tour operators used before as to meet the requirements of the
recent trends of the marketplace. In the modern times, it is
essential for the companies to make upgradations in the
technologies to have proper development.
Globalization- It is considered that globalization bring all of
the places together which also impact in having different
trends, so the company has to consider all the trends so that
products and services can be provided as per the trend which
helps in having development.
Conclusion
From the above leaflet, it is being considered that travel
industry is having good growth in the marketplace. This also
made understand that the increase in the development, as well
as trends.

Task 2
Introduction:
This report introduces to the various stages and timetables that are involved while developing
holiday tour. The report also presents the appropriateness of dissimilar means of contracting for
dissimilar constituents of the holiday and dissimilar kinds of the tour operator. In addition to this,
the report highlights the calculations regarding the selling price of the tour for the students.
2.1 Assess the stages and timescales involved in developing holidays.
In the context of Trailfinders ltd, various phases and timetables included while developing
holiday tours mentioned underneath:
Market research:
Doing marketing research is imperative in the planning of tourism package. The market research
is regarding the product, its components, sales and other conditions which are prevailing or are
linked with the market.
Planning and scheduling:
The next stage which is considered while developing holiday tour is with regard to the
destination, the best time to travel, amount of passengers to be included in the tour package.
With this other factors like attractions; amenities are accessibilities are also considered at this
phase while developing holidays.
Contracting:
Contracting is about making negotiations with the hotel and airline companies. The contracts are
generally fixed nearby 12 months onward to the holiday season.
Costing the holiday:

The next stage in the development process of holiday tours is to set the cost of the holidays.
Generally, the tour operators try to fix an economic cost for the tourism packages offered by
them.
Financial Evaluation and Pricing
The significant stage which is involved while planning holiday tour is the pricing and financial
evaluations. This stage consists of the determination of the coupons, discounts, prices, special
offers etc.
Creating the brochure:
One of the most crucial stages in the development of holiday tour is creating brochures. A
brochure gives an outline regarding the tourism package. Brochure helps in attracting consumers
by highlighting the key aspects of tourism package in a pictorial format (Huertas‐Garcia, et. al.,
2014).
Advertising:
Advertising and marketing are essential in the development of holiday tours. At this phase, the
company is involved in promotional programs and activities. A good advertising will help me
accelerate the sale of a tour package and will make the company more strong from its
competitors’ (Armstrong, et. al., 2015).
Operation and Execution
Once everything is planned, the holiday tour package is executed in real life. The main objective
of the execution of holiday tour is to earn profits and consumer satisfaction.
Post Tour Management
The last stage involved in the development process of holiday tour is the post activities like
getting feedback from the customer regarding the services, providing redress to the grievances of
the consumers etc.

2.2 Evaluate the suitability of different methods of contracting for different components of
the holiday and different types of tour operator
The dissimilar kinds of tour operators in the traveling and tourism industry are stated below:
 Mass-market tour operator
 Inbound tour operators
 Domestic and international tour operator
 Outbound tour operators
 Specialist tour operator
The dissimilar constituents of the holiday are also stated underneath:
 Transport
 Hotel or accommodation
 Attractions or sightseeing
The main varieties of contracting are fixed or committed contracts and ad-hoc contracts. In the
fixed contracts all the rooms and seats are booked and paid in advance. This form of contract is
very significant for the supplier as if gives an assurance to the supplier that even if room and
seats are not sold they will be paid fully. This form of contracts is less flexible. Such contracts
are suitable while planning for the accommodation and transport. Mass-market tour operators
generally accept fixed contracting methods. On the other hand, ad-hoc contracting methods are
used by specialist tour operators or niche tour operators. In this type of contract, there is no risk.
It is one of the most popular tools in the case of overbooking or when there is a requirement to
make some additional accommodations. The main constituent of the ad-hoc contracting is charter
flights. Ad-hoc charter is used when an aircraft is chartered or taken for a particular flight and
spaces are not traded to the general public (Mowforth and Munt, 2015).
Both the types of contracting are important for the domestic and international tour operators.
Each form of contracting has its own significance in the traveling and tourism industry.

2.3 Calculate the selling price of a holiday from given information
An educational tour for the adult students who are above the age of 18 years from London, the
United Kingdom to Brussels and Brugge, Belgium is organized. Below mentioned calculations
present the selling price of the tourism package and the price per individual.
Particular Amount in £
Cost per person
[96*42/2*1.12*5]
11,289.6
Bus costs for luxury coach 11200
Costing of the tour guide £945
Total cost 23,434.6
Mark-up 33% 7,733.42
Sales price 31,168
Calculations-
 Exchange rate= €1.12
 Per person selling price= 31,168/42 = £742
 Total sales price= £ 31,168
Conclusion:

This report concluded that each stage is significant while developing tour. The report has
calculated £742 as the price per individual in the tour package for 42 students for 5 nights stay.
In addition to this, the report concluded that the there are various kinds of tour operators starting
from mass tour operator to specific tour operators. The main kinds of contract method are fixed
contract and ad-hoc contract. Each tour operator has its own requirements and needs .So, as per
the needs and requirement, the type of contract is preferred. Generally, mass tour operator
prefers the fixed method of contracting while a specific tour operator prefers the ad-hoc method
of contracting.

Task 3
Executive summary
This task assists in analyzing the proper plan for designing the brochure. Kuoni Company
requires creating a brochure and for design it proper planning decisions has to be taken which
will attract the customers towards the holiday package. There alternatives to the traditional
brochure which can be used by the company.
Introduction
This task will help in knowing about the way in which proper brochure can be done. This report
also assists in knowing about the alternatives of the traditional brochure which Kuoni can use to
attract a huge amount of customers towards the holiday package.
3.1 Evaluate the planning decisions taken for the design of a selected brochure
Before creating a brochure it is important to know about the customer’s physiology so that it can
be designed accordingly. A brochure is a publication which contains a proper summary of the
holiday package which the tour operator is providing (Galle, 2010). The planning which is
required to design a brochure:
Planning- Before creating the brochure proper plan is required by the company. Planning helps
in carrying out the process in a proper way.
Designing the format- After planning, the format of the brochure should be planned in which
the size, color, format, structure, quality of the paper is decided. The format of the content has to
be decided according to the targeted customers (Holden, 2016).
Cost- It is important to know that how much of the amount is to be spent in making brochure.
The cost of creating the brochure has to be calculated so that all the process can move in a proper
flow.

Target market and budget- Analysing target market will assist in creating the brochure
according to the customer’s choice which will easily attract them. The budget has to be
considered so that all the process of making brochure can be carried out in the required manner.