Detailed Analysis: Tour Operation Management for Trail Finders, UK

This report provides a comprehensive analysis of tour operation management, focusing on the case of Trail Finders Ltd. The report begins with an introduction to the tourism sector and the role of tour operators. It then delves into the core aspects of tour operation, including the stages and timescales involved in developing holiday packages, methods of contracting for various holiday components, and the calculation of selling prices. The report examines the planning decisions for brochure design, evaluating the suitability of both traditional and alternative brochure formats. It also explores different distribution methods used by tour operators. The report further analyzes the strategic and tactical decisions made by various tour operators, providing a comparative perspective. The analysis covers aspects such as market destination research, negotiation with contractors, price determination, marketing activities, and itinerary development. The report concludes with a summary of key findings and recommendations for effective tour operation management, with a focus on practical application within the context of the case study of Trail Finders.

Tour Operation Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
TASK 1............................................................................................................................................1
Covered in Leaflet..................................................................................................................1
TASK 2............................................................................................................................................1
2.1 Assessment of different stages and timescales that are involved in developing holidays.1
2.2 Suitability of methods of contracting for different components of the holiday...............2
2.3 Calculation of selling price of the whole holiday package ..............................................3
TASK 3............................................................................................................................................4
3.1 Planning decisions taken for the design of the brochure..................................................4
3.2 Suitability of alternatives to a traditional printed brochure..............................................4
3.3 Suitability of different methods of distribution used to sell a holiday for different types of
tour operator...........................................................................................................................6
TASK 4............................................................................................................................................7
4.1 Different strategic decisions made by different types of tour operator............................7
4.2 Comparison among tactical decisions taken by the Trail Finders in different situations. 8
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Tourism is the dynamic sector and provides high quality customer services such as
accommodation, food & beverages, leisure, entertainment and many more. Operations in tour
management describes the way in which the company can grow and attract more customers in
competitive market (Cetin and Yarcan, 2017). This report is based on the Trail Finders Ltd.
which is situated at United Kingdom. This is the biggest travel organisation that owned
independently and it has three branches in Ireland and 29 branches at UK. This report shows the
effect of recent and current trends on the tour operators. In this context, it assesses timescales and
stages that are involved in developing holidays. It also covers methods of contracting for
different components of the holiday and tour operators. Further, it includes decisions regarding
planning for design and describes traditional brochure for different type of tour operators with
suitable recommendation. Furthermore, it covers evaluation technique for strategic decisions that
made by various tour operators. Lastly, this provides comparison of the tactical decisions taken
by operators in different situations.
MAIN BODY
TASK 1
Covered in Leaflet
TASK 2
2.1 Assessment of different stages and timescales that are involved in developing holidays.
Trail Finders develop a plan for an educational tour of adult students from London to
Brugge, Brussels and Belgium. For this purpose, its management needs to know about stages and
timescales for developing this holiday package (Jensen and Engineers, 2017). The company
arranging the luxury coach, local tour guide and many other services for successful of that
holiday package. So for this reason, they should recognise elements that are useful for it. In this
context, there are various stages and timescales that are concerned for developing the holidays,
these are describes as follows:
 Searching for market destination – It is major essential element that should consider
for the tour purpose. Tour operator should make search about the destination place so that
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they can identify the environment of such spot. In this context, travel location should be
selected according to the demand of individual.
 Negotiation with contractors – This stage is useful for reducing the cost of holiday
package. Tour operator should negotiate with the suppliers and vendors to control prices
of the package (Kato, Hosono and Yamao, 2015). This stage is conduct only if
accomplishing the itinerary and in current days, the tour operator become profitable by
negotiating with customers for their services such as transport, car rental, airline and
accommodation.
 Price determination – In this stage, the tour operator decides total price of the holiday
package. There are various factors that can effect this stage for example taxation, foreign
exchange rates and cost of fuel of the destination country (Li and et.al., 2017). Tour
operator can find it by using two different methods that are market oriented and cost
oriented tour pricing.
 Conduct marketing activities for the tour packages – Marketing is very essential
factor for every tour operator because all such activities that are useful for attracting
customers, are conducts in marketing. This stage can be accomplished by developing the
proper marketing plan by making brochures and other elements. It is main stage of
developing tour package.
 Developing tour itinerary – In this stage, tour operator builds the itinerary or schedule
for improving their plan. In this context, organisation also introduce offers or discounts in
order to attract customers.
 Execution of tour – This is the last step that accomplishes by the tour operators and
execute tour for their tourists.
2.2 Suitability of methods of contracting for different components of the holiday
For providing better tour package, the travel operators should determine different
methods of contracting and evaluate the suitability. In this process, the tour operators design
packages by considering the way in which they find alternative method of contracting (Lück,
2016). There are two major methods these are sale only contract and fixed contract method. In
this context any tour operator can do contract with the suppliers and vendors by using such
methods. These are as under:
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Fixed Contract Sale Only Contract
This method is purely focused on the
quantitative and collective approach for selling
purpose. In such method, the tour operators can
able to increase their capacity and maximise
the volume of the sales. This method describes
the way in which all operators may enter into
fix contract with the suppliers and get services
of accommodation, leisure etc.
In this method, prices of all services in
comparatively high rather than fixed contract.
There is not any duty owns by the tour
operators so that it is less risky method (Page,
2014). Such type of contracts is seasonal and
also meet out with the customer's preferences
and no scope for high discount for the tour
operators.
2.3 Calculation of selling price of the whole holiday package
Selling price of any holiday package is calculated by calculating sum of all expenses and
add profit margin in it (Shigenobu and et.al., 2016). According to the given scenario,
management of Trail Finders arranging a tour package for the adult students from London, UK to
Brussels and Brugge, Belgium. The tour starts with the student group from august 2019 in
summer holiday for five nights. Total students are 42 and rate of group is proposed by Grand
Casselbergh in Bruges of 92 euros per head for the breakfast with twin room. The company
arranging a luxury coach that has 45 sitting capacity with including tour manager, two drivers.
Overall cost of such things is £7,350 with involve all types of costs such as fuel cost and other
charges related to the road and ferry taxes. In this context, calculation of total selling price is as
under:
Calculation of selling price(exchange rate is €1.12 per £1)
Particulars Details Amount in Euros(€)
Cost of Luxury coach £7,350*1.12 8232
Cost of local tour guide €1020
Accommodation cost
(students = 42)
£92*42*1.12 4327.68
visitor attractions charge €52*42 2184
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Total cost 14743.68
Add: profit margin(25%) 3685.92
Total Selling price 18429.6
TASK 3
3.1 Planning decisions taken for the design of the brochure.
In the tour sector, there is a requirement to provide proper information related to the
services and products to the customers. For planning about the holiday package, there are
different types of issues such as deciding the format, name of company, day-night packages etc.
So the brochure is the significant element that including all relative and comprehensive
information that are useful in order to increase demand (Tay and et.al., 2016). Process of
planning of brochure design is start with the First Impression element and it is produced in
different colours, content and includes photos and many other items. For holiday packaging,
there are several brochures which are design and these are available at organisational online
portal, website etc. Planning of the Trail Finders summer holiday tour is required proper design
of the brochure so that it includes such types of elements:
 Behavioural Objectives – Such objectives are most essential in order to increasing
number of customers. It should be included in the brochure because it includes,
behavioural objectives with the increasing demand by travellers (White, 2016). It
describes that tourists can go for several types of destinations and this includes
specifications about services which are provided in such tour. This is associated with the
customer's preferences and provide them full satisfaction. In this context, the tour
operators should understand the behaviour of their clients so that they will able to attract
more customers.
 Emotional Objectives – It is based on the basis of meeting all the needs and demand of
customers emotionally (Cetin and Yarcan, 2017). It includes several types of elements
such as name of company, services etc. Tour operators should consider it for taking
several decisions regarding planning for holiday package.
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3.2 Suitability of alternatives to a traditional printed brochure.
In the tour and travel industry, there are several types of traditional brochures that are
useful for promoting the holiday packages. Tour brochure refers as a small pamphlet or booklet
contains promotional materials about travel services and destinations (Chand and Dahiya, 2014).
It is a part of leaflet and most commonly found at places that travellers frequently visit for
example tourist information centres, museums etc. There is different type of brochures that may
useful for the Trail Finders in organising the educational tour. It is describing as follows:
 Gate Fold Brochure – This type of brochure only has great impact if it used correctly.
Its cost is often low so for this reason it is mostly used for high end marketing. Its unique
feature is, it can fold inward and this quality makes its compact and easy to carry. It has
eight panel structure that provides the designer look and ample space so this is more
useful for the Trail Finders to promote their educational tour.
 Bi Fold Brochure – It is used by several tour operators as this is fairly inexpensive to
print. This type of brochure is half folded including four panels such as one front cover,
one back cover and two internal panels (Filby, Stockin and Scarpaci, 2015). Such
brochures are useful for Trail Finders for introducing their services and advertising.
 Tri-Fold Brochure – It has three fold and this is known as the next version of the bi fold
brochure.
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Such type of brochure provides enough space for presenting information to its readers.
This is very common type and have a capacity to impress the person who read it.
 Z fold brochure – It is going by its name and easily folded into a Z shape so it gives an
extravagant look at the brochure. This type of brochure allows tour operators to represent
their selling propositions in great detail (Frankel and Gabriele, 2017). Such type is also a
very good alternative to a tri-fold brochure and helpful for the Trail Finders.
 E-Brochure – It is design and create in electronic way or e book. An e brochure is build
up in order to deliver the best possible experience for customers and this is flexible to
tailor the outcome personal needs.
3.3 Suitability of different methods of distribution used to sell a holiday for different types of
tour operator.
Distribution is the systematic process of providing products and services to the loyal
customers. Tour operator company can reach the largest number of potential clients and convince
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Illustration 1: Tri-fold brochure
Source – (Make the brochure worth keeping, 2018)

them by choosing the right way of distribution (Graci and Dodds, 2015). In this context, there are
several methods of distribution to sell a holiday package. These are discussed as follows:
 Direct sales – It is an effective method of distribution and this is used for distributing
products and services in local area. It is a useful technique for the Trail Finders for their
educational tour.
 Through internet selling – This is the best method in present days because it provides a
huge number of customers (Jensen and Engineers, 2017). It also provides all related
information such as product page, prices, delivery charges, goods information etc. It also
enables customers to place orders and pay for products online through company's
website. Management of Trail Finders also use it for selling their holiday package.
 Visitor information centres – It is known as travelling organisers. Such type of
distribution channel organise tour, accommodation and transport booking for visitors
because many travellers often go to such centres to collect information for a particular
destination. In this context, the Trail Finders can use it for selling their holiday package.
TASK 4
4.1 Different strategic decisions made by different types of tour operator
In the tour and travel industry, tour operators have to take several strategic decisions for
the development of company. These decisions are related to the market segmentation, efficiency,
consumer satisfaction which help in meeting demands of target market (Kato, Hosono and
Yamao, 2015). There are various decisions which are taken by tour operators and it describes as
under:
 Pricing decisions- Pricing is set by tour operator according to the consumer and cost
involved in developing the particular package. By keeping the low prices help
organisation to attract customers. It will lead to increase in sales of services which are
provided by the company.
 Positioning in front of target market- It is responsibility of tour operator to build image
of company by keeping the appropriate prices and following all rules and regulations in
which company operates its business (Li and et.al., 2017). By offering the discounts to
consumer and meeting their demands help organisation in creating the image in domestic
and international market.
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 Creating of product according to the demand of consumer - Tour operator design
products and services according to the demand of consumer which lead to the increase in
sales of company (Lück, 2016). For determining the needs and wants of clients, company
take regular feedbacks from the consumer and observe the client's taste and preference
which help in taking decisions in the favour of consumer.
 Funds - There is requirement of monetary amount taking decisions regarding the policies
which help in getting popularity and maximising the sales of tour packages so that
company can generate more profits. It will help organisation in their growth and
development.
 Transportation arrangements - While arranging of tours and travel services for
consumer, there is need for appropriate mode of transportation. Like aircraft for travelling
to international places and four wheelers for covering of short distant places (Page,
2014). By serving the customer and feeling them in convenient way, it will help in
publicity of organisation.
4.2 Comparison among tactical decisions taken by the Trail Finders in different situations.
Tactics are known as the decisions related to the special actions and projects for reaching
at a particular point and on the other hand the strategy is defined as a game plan that useful for
any organisation to achieve organisation's desired objectives and goals. These terms are used
very commonly by tour operators (Shigenobu and et.al., 2016). The Trail Finders take several
tactical decisions in different situations to become the best holiday package provider. In this
context, there are describes comparison among tactical decisions. These are medium term
decisions that are useful for any organisation for achieving their desired goals and objectives.
Management of Trail Finders take such type of tactical decisions for their organisational growth.
Sales promotion – In this technique, management department of Trail Finders able to increase
its sales during the summer holiday period. It is the systematic process of build-up long term
customer loyalty and relationship. There are many types of sales promotion techniques that are
gift coupons, sampling, offers and several discounts for expanding their turnover in competitive
market.
Market penetration – It is a significant strategy that use for understanding the demand and
preferences of customers for their products and services. In this context, The Trail Finders made
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better brochure for increasing the number of customers and achieve all desired targets and
objectives (Tay and et.al., 2016). Management of this Company also take some strategic
decisions for achieving the pre-determined aims. For this purpose, the company produce the
products and services for the specific population and cover up customer's demand and
preferences.
CONCLUSION
This report presented for operation in tour management of Trail Finders Ltd. It concluded
effect of recent and current trends that useful for the management in finding out development
areas. It also concluded various stages of development holiday packages. Further, it described
various decisions taken by the tour operator for planning a holiday package and find out better
brochure for its promotion. It also concluded things about the suitability of alternatives to a
traditional brochure. Lastly, it concluded evaluation of strategic decisions made by the
management of tour operators and make comparison the tactical decisions that could be taken by
Trail Finders.
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REFERENCES
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satisfaction and loyalty in Indian tour operation industry. International Journal of Sales &
Marketing Management Research and Development (IJSMMRD). 4(5). pp.1-14.
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from cruise and tour vessel noise in Glacier Bay, Alaska, under different management
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Graci, S. and Dodds, R., 2015. Certification and labeling. The Routledge handbook of tourism
and sustainability. pp.200-208.
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mitigation measures across the United States (No. UT-17.17). Utah. Dept. of
Transportation.
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educational tour and organizational operation: the case of Iejima Tourism Association in
Okinawa Prefecture. Journal of Rural Economics. 87(3). pp.279-284.
Li and et.al., 2017. The concept of smart tourism in the context of tourism information
services. Tourism Management. 58. pp.293-300.
Lück, M., 2016. The teachable moments on marine mammal tours: Watching versus swim-with
tours. Coastal Management. 44(2). pp.131-138.
Page, S. J., 2014. Tourism management. Routledge.
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Tay and et.al., 2016. Comprehending the responsible tourism practices through principles of
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Online
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