Analyzing Trends, Holiday Development & Strategies in Tour Operations

This report provides a comprehensive analysis of tour operation management, focusing on current trends and developments within the industry. It examines the effects of these trends on tour operators, including the increasing availability of information, the rise of independent travelers, technological advancements, and the importance of safe and secure environments. The report also assesses the stages and timescales involved in developing holidays, evaluating different methods of contracting for various components and types of tour operators. Furthermore, it delves into the planning decisions behind brochure design, the suitability of alternatives to traditional brochures, and the effectiveness of different distribution methods. The study also evaluates the strategic decisions made by different tour operators and compares the tactical decisions they could take in various situations. The report highlights the importance of adapting to changing market dynamics and implementing effective strategies to attract and retain customers in the competitive tourism sector. Desklib offers students access to a wide range of solved assignments and study resources.

Tour Operation Management
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Contents
Introduction:....................................................................................................................................3
Task 1...............................................................................................................................................4
1.1 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.......................................7
2.2 Evaluate the suitability of different methods of contracting for different components of the
holiday and different types of the tour operator..........................................................................9
2.3 Calculate the selling price of a holiday from given information below..............................10
Task 3.............................................................................................................................................12
3.1 Evaluate the planning decisions taken for the design of a selected brochure......................13
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....................................15
3.3 Evaluate the suitability of different methods of distribution used to sell a holiday for
different types of the tour operator and recommend the most appropriate for your tour
package......................................................................................................................................16
Task 4.............................................................................................................................................18
4.1 Evaluate the strategic decisions made by different types of tour operators........................19
4.2 Compare the tactical decisions that could be taken by a selected tour operator in different
situations....................................................................................................................................22
Conclusion:....................................................................................................................................24
References:....................................................................................................................................25
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Introduction:
Travelling is the new trend for people and for many it’s a one-time dream to be achieved in life.
There are many tourists’ destinations one wants to travel but can’t due to the low facilities and
less knowledge of the tour provide companies. The increasing numbers of travellers are
increasing the number of tour operators worldwide which is giving rise to the competition and
new strategies in the tourism sector. With the expansion of sector new types of leaflets are
introduce one of which is explained below also current trends and innovative developments in
tour industry are covered. The methods of creating attractive brochures to lure the backpackers
for selecting a single tour operator are getting more creative, there are different types of
strategies used by various types of tour operators to get more number of voyagers attached to
them. The brochure is very much essential to find and make customers aware about the services
worldwide, upgrading technologies in the tour industry are making travel very much easy as
people are more aware of the destinations available and select the best from them. The upcoming
trends in the tour sector of the UK are discussed below.
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Task 1
1.1 Analyse the effects of current and recent trends and developments in the tour operators
industry.
Current and recent trends
and developments.
Introduction:
The leaflet presented here
gives information about the
different trends that are
developing day by day in the
tour sector, these trends are
increasing the number of
travellers every year and
various strategies are need to
be implemented so that
Trailfinders Ltd can keep up
with the market effectively.
Independent travellers:
Higher numbers of
independent travellers are
emerging from all around the
world due to the availability
of more cheap travelling
options and all kind of
facilities online. Most of the
independent travellers are a
Tour operators:
Different tour operators are
connected with tourism and
the travellers which make
them develop more efficient
tour package which is
developed to increase the
number of backpackers who
stick with Trailfinders Ltd and
its services so that it can get
more profits at more class
services to the travellers.
Technological development:
Trailfinder Ltd uses all the
new technological innovations
to get their customers like
booking of tickets online,
audits, a virtual tour of
Availability of information:
Many people avoid travelling
as they have less information
about the place they are going
to travel, but with the help of
brochures and other data
Trailfinders Ltd provides all
the data to the backpackers no
matter at what place they are
travelling or willing to, which
builds a sense of trust among
the customers and they get
more attracted towards it.
Advertising Campaigns:
Advertising of a brand is very
much important for a company
to connect with the clients.
Trailfinders Ltd needs to
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businessman or other leading
celebrities, mountaineers,
bikers and further to pursue
their concerts or passion.
They book their own personal
accommodations and trips
which leads to a certain loss
for Trailfinders Ltd (Baum,
2016).
Niche tourism:
The rise of niche tourism is
one of the most loved and
famous tourism
developments, which gives
opportunities to Trailfinders
Ltd for more profits. The
coming demand for the niche
tourism is steadily growing in
countries like the UK and
other countries globally. The
various types of niche tourism
may include golf tourism,
dark tourism, wildlife tour,
wine tour, eco-tourism, etc.
destinations and so on, which
not only increases the
customer’s satisfaction level
but also increases more
willing clients towards them.
Safe and secure
environment:
The main concern with
travellers is that is the place
they are visiting is safe for
them as none of the visitors
will think of going to a place
filled with chaos and fights.
Many of the travellers usually
seek for a safer and silent
place to improve their
travelling experience (Kew
and Stredwick, 2017).
Availability of services:
Different services like easy
booking of tickets, lodging,
transportation and others
should be available on time
which is a challenging task for
Trailfinders Ltd as any fault
will lead to loss of clients
(Bell, 2016).
attend more campaigns where
they get a chance to connect
with the travellers and gain
knowledge of going trends in
the market which will also
help them in meeting new
clients.
Conclusion:
Many types of tour operators
are explained in the leaflet,
which has many impacts on
Trailfinders Ltd and also many
measures are suggested to the
tour company for increasing
their client base.
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Task 2
Introduction:
Developing a perfect and satisfying package for clients is a very much complicated task for
Trailfinders Ltd as with the increasing tourists from all over the globe developing of a plan is
relatively hard there are many problems like language and cultural differentiations which affect
the plans. There are many methods for maintaining and implementing holiday packages like
marketing of tour plan and execution of it.
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2.1 Assess the stages and timescales involved in developing holidays.
The procedure of developing a holiday package can be divided into many stages but one of the
most important and first ones is planning, which needs to be completed for attractive and client-
focused holiday packages. The up gradation of timescale provides effective services to the
voyagers. Trailfinders Ltd embraces different techniques which would incorporate different
appealing offering in the association to outline the quality bundles of the diverse customers the
stages are as per the following:
Stage 1- Tour Itinerary Development:
Tour Itinerary Development ordinarily relies upon two angles which are, for the new visit
administrators to investigate on the visiting goal and in addition elements for visit and the
prestigious ones ought to audit the polls that the prior members in visits have finished. This stage
incorporates the data on the inception purposes of the occasion, course points of interest of the
occasion, visitor goals to be secured amid the visit, convenience subtle elements, touring details,
travel detail elements and so on (Boyle, 2017).
Stage 2- Looking into the destination:
Researching the place is said to be the first and most vital advances while arranging holiday
packages, the goal ought to be according to the wants of the clients. Research ought to be done to
influence the visit for meeting the exact necessities in regard of the objective to showcase, to
approach the providers and to distinguish the real areas and additionally to have a near
investigation of elective areas.
Stage 3- Pricing of the tour package:
This choice is exceptionally intricate and specifically affected by outer components. The cost-
based visit valuing thinks about the components like item cost and rate of return while the
market-based visit estimating mulls over variables, for example, skimming, differential,
infiltrating and in reverse. The finish of the value structure ought to be finished by the visit
organizer about four to five months or more preceding a visit flight.
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Stage 4- Brochures of the tour:
The hand-outs are set up such that it contains every one of the points of interest of the visit and
help the clients to decide. Trailfinders Ltd needs to incorporate every one of the subtle elements
which make it simple for the client to settle on the choice.
Stage 5-Arrangements of the visit providers:
There is a possibility for the visit organizers for consulting with the airlines in an immediate or
assistance way of a movement organization. One might say that genuine and also solid nature of
the tourism providers is a huge factor that ought to be thought about by the visit organizer. It is
prescribed that the arranged game plans settled upon through exchanges with property officials
be point by point promptly after each gathering and the visit organizer must hit an adjust with the
quality with the cost of services.
Stage 6- Developing the tour plan:
It is important to develop a plan at every stage of its completion as it will help in finding out all
the loopholes and obstacles in the holiday package, through which Trailfinders Ltd can take
timely and effective measures to improve and correct the services. Before developing a plan
Trailfinders Ltd needs to keep a track on its financial expenses as it is a matter of great concern
because if the budget exceeds it will lead to more expensive holiday package and will turn off
the willing clients (Ghimire, 2013).
Stage 7- Implementing the tour:
The success of tour plan depends upon the proper execution which is a step where all the flaws
come in front of tour operators. This stage covers the practical phase of the package and so
carries a very important value.
Stage 8- Post tour management:
The work doesn't end where the visit gets complete, it is essential to accumulate the reactions of
the voyagers for their encounters in the visit. The masterminding of the visit for pioneers requires
a segment of the stages like factual looking over to pick the objectives and offices which ought
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to be flawless so they consent to acknowledge moreover visits. These discoveries give a plan to
Trailfinders Ltd on how the following visit is to be arranged, outlined and showcased.
2.2 Evaluate the suitability of different methods of contracting for different components of
the holiday and different types of the tour operator.
Trailfinders Ltd is a unique amongst the most known organizations and has an extremely rich
foundation. There are distinctive strategies in which the visit administrators can get into an
agreement with the providers. The fitting of the visit bundle is totally subject to the interests of
the clients.
 Direct Sale Operators:
The visit operators have been selling their bundle to the public specifically, in the fact that they
can offer out of the box esteem. It is smarter to go for these administrators on the off chance that
one needs to be certain about the desires to be drawn from a holiday package.
 Domestic operators:
They have a high ground to know the residential seasons, culture, and sustenance because of
which they are likewise called as Residential administrators. The overall industry has upgraded
quickly lately and is currently huge, including the colossal huge part of the volume of residents
in monetarily generated nations (Filby, et. al, 2015).
 Inbound tour operators:
These visits are accessible in many dialects, at an additional cost; including German, Spanish,
Chinese, Italian, Japanese, Russian and French. These visit administrators practice and provide
food for inbound voyagers to the UK from a wide range of nations.
 Outbound tour operators:
The outbound visit operators provide travel reports, transportation to the main places where the
travelling starts and contracts with other inbound visit operators to provide transport facilities,
nearby touring and other services as desired all through the going on a visit.
 Specialist Tour Operators:
This kind of tour operators provides services to the people who have interest in the particular
geographical area and provide services to them according to the type of clients and the area they
desire to visit.
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2.3 Calculate the selling price of a holiday from given information below.
Attributes Cost in € and £
Single person rate 96 €, is the cost of a
twin room (divided by two adults)
96*42/2*1.12*5
11,289.6
High comfort luxurious coach bus price
includes two drivers, fuel tour manager,
road expenses and all ferry taxes.
£11,200
Tour guide rate €945
Total cost 23,434.6
mark-up 33% 7,733.42
Sales price 31,168
Adaptations:
Provided exchange rate= €1.12
Selling price per person of overall tour= 31,168/42 = €742
Overall sale price of the tour package is £ 31,168
Per person is required to give €742 to the tour operator.
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Conclusion:
There are different kind of tour operators and many methods like sales only contract, fixed
contract and express contract to deal with the travellers. The different methods of contracting
through various components are transport, attractions and hotels.
(Figure: The UK to Europe tariff growth 1991-2013).
(Source: Aviation Economics, 2014).
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Task 3
Executive Summary:
One of the easiest ways to reach the willing travellers is to handle them travel brochures, it has
also been one of the most efficient and effective marketing tools for a tour operator. 50 to 60% of
the budget by tour operators is spent on making brochures. The brochures can be handled simply
and are easy to reach and understand.
Introduction:
There are many tactics used by tour operators to sell their particular holiday package. This is
adopted by both the tour operators DRUMGOLF and Belmond travels so that they can provide
information to the people and make them avail the services. Belmond is located in London and is
considered as best rail and hotel operator in Britain whereas DRUMGOLF provides luxury gulf
tours to the visitors.
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3.1 Evaluate the planning decisions taken for the design of a selected brochure.
There are numerous motivations behind outlining hand-outs it encourages the administrators to
impart about the visit bundles to the general population, enable the administrators to pass on the
important data with respect to the packages and furthermore helps the DRUMGOLF and
Belmond to construct their picture in the market. The substance in the hand-out is extremely
thorough and useful for the clients and can simply be adjusted for the best outcomes. There are a
couple of things which ought to dependably be incorporated into a decent leaflet and every one
of the administrators must remember them while influencing a pamphlet for their organization to
like kind of convenience given, name of organization, covered up and point by point costs, sorts
of suppers given, subtle elements of traveller goals and all methods of transportation (Hudson
and thal, 2013).
A portion of the phases of building up an appealing hand-out are:
 Feasibility:
At this specific stage, all the data is to be accumulated about the need and wants of the travellers,
expected cost and different prerequisites of the package.
 Design concepts:
The following stage includes the preparatory outline thoughts. The officially actualized styles
and examples are additionally created and upgraded. Logo creation and other consideration of
the site page materials inside the brochure is arranged and created (Mowforth and munt, 2015).
 Decide format:
They have to build up a format that how the handout will look like and what will be the shading
plan of the leaflet and furthermore guarantees that the configuration ought not to be coordinated
with the pamphlets of other visit administrators and services given by DRUMGOLF and
Belmond (Sigala, et. al. 2012).
 Draft Matter:
Draft the issue which will exhibit in the pamphlet. It ought to be viewed as that issue ought to
little yet incorporate entire data about the administrations of visit work, all the data are given
needs to be applicable.
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(Figure: Safest places to travel in the world).
(Sources: Sehmer, 2015)
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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.
Conventional disconnected brochure alternatives are additionally accessible to with the two
associations "DRUMGOLF" and "Belmond" of tourism segment. Administration outlines the
hand-out in a way that draws the new customers towards the association and makes them
mindful of the services to the association. Diverse strategies and strategies are utilized to make
and spread these brochures.
Video brochure:
Video pamphlets have been utilized productively around the globe for raising support, enlisting,
presentation and inspiring potential clients. They have touchscreen route alternatives, no web
association is fundamental and batteries are rechargeable (Lockyer, 2013).
Online Brochures:
As opposed to printing handouts and giving them over to the clients, visit administrators
showcase their items over the web. When they have gone on the web, they can likewise utilize
email as a medium to impart any unique offers or any new plans they may have concocted.
Travel magazines:
Individuals with the habit of reading magazines at different spots like salons, air terminals,
stations, and so on are certain to go over the crusade and this may help in making incitement
popular (Bhatia, 2012).
Recommendations:
DRUMGOLF and Belmond would option be able to for travel magazines for their brochures as
just travel addicts read such sort of magazines so the hand-outs are not squandered and just
potential and willing explorers will approach it which will help the administrators to draw in a
greater amount of the customers.
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3.3 Evaluate the suitability of different methods of distribution used to sell a holiday for
different types of the tour operator and recommend the most appropriate for your tour
package.
 Television:
Showcasing, arranging and Advancement on the electronic medium is extremely well known
and has been received for an extensive piece of the most recent years. The main detriment is
that TV ads can be costly as purchasing applicable advertisement space to meet the objective
criteria and consequently it won't be the most practical alternative constantly.
 Mobile Applications:
The expanding inclination of individuals towards the web and versatile applications helps in
productivity of the spread of data, thoughts and offers. A significant number of the most
recent mechanical items that we used to use are currently consolidated, all around arranged
and reproduced in little remarkable bits of cutting-edge innovation which have the
multifunctional capacity. This application additionally has disadvantages of getting hacked or
fragmented updates which influence in less or wrong data (Evans, 2012).
 Tour Wholesaler:
In different enterprises, the supply is done of unmistakable items however for this situation
the supply is of visiting administrations which incorporates convenience, voyages, and so on.
These visit wholesalers can adversely impact the market by taking more customers in want of
making higher benefits which prompt disarray in treks and at last to poor services.
Recommendations:
Contemplating the cutting edge period and the innovative transformations in the course of the
most recent decade, the most proper other options to a pamphlet for visit bundle will be that of
Web, Internet business and Portable applications. As they have substantial inclinations of
achieving an immense measure of customers it might prompt more advancement of
DRUMGOLF and Belmond which will build their benefits.
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Conclusion:
The previously mentioned report presumes that there is a tremendous potential for the visit
administrators to catch. The diverse strategies of making a brochure are clarified and
furthermore, there have been the assessment of the important choices made by other various
kinds of tour operators and in addition, a research should have been done in regard of the
strategic choices that a visiting operator can attempt in specific conditions.
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Task 4
Executive Summary:
Tour operator management is that systematic concept of travel and tourism in which tour
operator companies make holiday packages in detail so that they can provide enough information
to their customers. In this section, different strategic and tactical decisions have been determined
which can help tour operators in enhancing their organisational growth and development.
Introduction:
For managing business situations, tour operators take various strategic as well as tactical
decisions so that they can survive in those business situations. In this task, various decisions have
been determined which is taken by tour operators to resolve different situations. Audley travel
has been chosen for this task which is a mass market tour operator.
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4.1 Evaluate the strategic decisions made by different types of tour operators.
All business enterprise makes strategic decisions for the long time period so that they can
become biggest market players. Some most important strategic decisions are discussed below:
Positioning strategies: It is also known as the promotional strategy which can help Audley
travel in promoting its different holiday offers worldwide. There are various promotional tools
which can be used by this enterprise such as Facebook, Twitter, YouTube and some other social
networking sites (Phillips and Moutinho, 2014). Apart from this, the tour operator can also go for
celebrity endorsements. In the present time, market competition has reached its peak point and to
survive in such competitive market environment organisation have to achieve competitive
advantage which can be possible only by business promotion.
Pricing strategies: Future growth, as well as sustainability of organisation, largely depends upon
its pricing policy. So, it is highly important for Audley travel to focus more on its pricing
decisions. There is cut throat completion in tour and travel industry because all companies are
generating the high level of profit by taking help of different strategies. Price of product or
service is the only factor which can lead an organisation to the high level of growth. Tour
Operator Company should set its pricing policy only after considering social environment and
buying behaviour of customers. If Audley travel will make its pricing decisions after analysing
cost and demand for services then it can achieve the competitive advantage in the marketplace
and also can increase its customer base. Some most important strategies are competition pricing,
cost-based pricing, customer-based pricing and so on.
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(Figure: Pricing strategies).
(Source: 3 major pricing strategies, 2017).
Package referring customer portfolio: The tour operators make their holiday packages as per the
customer’s needs and demands. Audley travel can provide its customer packages into three
categories which are luxury, regular and economic class. These categories help a company in
attracting all kind of customers whether they are rich or middle-class people (Kaaya, 2014).
Volume: Product’s demand influence huge impact on the business decision-making process.
Basically, there are two types of the condition which decides the organisational strategies and
these are business expansion and business contraction. For substance, if Audley travel will
globally expand its operations then it will require a large number of packages whereas if there
will be the scenario of business contraction then tour operator firm will remove some of its
services or packages. Hence, a volume of series demanded also considered as the most important
strategic decision of tour operators.
Product capitalisation decision: With the help of this factor, tour operator firm can analyse that
whether it should invest in a particular project or not. While making capitalisation related
decision Tour operator should analyse requirement of funds and total available funds. By
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determined these factors, Audley can make most successful product capitalisation strategies
(Morrison, 2013).
Hence, these are some most effective strategic decisions or strategies which help Audley in
surviving in any kind of business situation. Along with this,
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4.2 Compare the tactical decisions that could be taken by a selected tour operator in
different situations.
Strategic decisions are those which help in implementing the strategic decision in most effective
as well as in a systematic manner. They are formulated for particular divisional plans, for
establishing distribution channels, structuring workflows and for utilising business resources in
the appropriate manner. Middle management of Audley Travel takes such decisions for some
specific situations which are mentioned below:
 Price wars: In the present scenario, all organisations are making their price down for
achieving the competitive advantage within marketplace which is influencing huge
negative impact on Audley travel. To end price wars, Audley should provide quality
services without decreasing its prices. By doing this, it can make a special place in the
marketplace and also can attract customer which considers services quality more than
their price (Mamhoori, 2015).
 Market competition: In the present time, due to globalisation various tour operator
companies are entering into UK market which is giving tough competition of Audley
travel and also affecting its profitability as well as productivity. To resolve this problem,
Audley should adopt some liberal policies and also improve its service quality so that it
can survive in a competitive marketplace for the long time period.
Hence, these are some main situations which force tour Operator Company to take technical
decisions. Apart from this, there are some other external factors decisions which help Audley
different situations. Some major external factors decisions are followed as under:
 Yield management: It is that pricing strategy anticipates, understands and influences
customer’s buying behaviour so that organisation can increase its sales revenue by taking
help of time-limited resources (Abrate and Viglia, 2016).
 Fluid pricing: It is that norm of travel industry which is used by tour operator so that
they can increase and decrease the prices according to market demand.
 Tactical marketing: There are various marketing activities such as discounting and late
sales which attracts customer for buying holiday packages.
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Hence, these are some most significant decisions which can help Audley travel in different
situations like prices wars, market competition and so on. In the United Kingdom, there is the
huge competition between tour operator firms which takes help of above-mentioned decisions so
that they can survive in the competitive marketplace.
Conclusion:
By evaluating above mentioned discussion, it has been evaluated that there is various decision
such as positioning, pricing, capitalisation and volume decisions which is made by tour operator
like Audley travel to deal with different kind of market situations. Along with this, there are
some market situations like price war and market competition which force tour operators to
adopt above-mentioned strategies.
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Conclusion:
The above-mentioned report explains the huge importance and role of tour operators within tour
and travel sector of United Kingdom. In the present time, various trends are taking place in tour
industry which is continuously affecting future growth and development of tour operators. Tour
operators should analyse all those trends so that they can cooperate with them. Along with this,
there are various stages which involve in creating holiday packages. By taking help of those
steps different tour operator companies can make most effective holiday packages which can
increase their profitability as well. After creating holiday packages, tour operators should focus
on different distribution channels or methods so that they can sell their holiday packages in an
appropriate manner. Moreover, there are different strategic decisions like pricing, positioning
and product capitalisation strategies which help trip operating firm in the different market
situation. Along with this, there is a different situation like price wars and market competition
which can be maintained by taking tactical decisions.
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