Tour Operations Management Report: Trailfinders and Kuoni Analysis

This report examines tour operations management, focusing on the practices of Trailfinders and Kuoni. It assesses the impact of current trends, analyzes the stages and timescales involved in holiday development, and explores different contracting methods and pricing strategies. The report also evaluates the planning decisions for brochure design and the suitability of various distribution methods. Furthermore, it compares strategic and tactical decisions made by different tour operators in various situations. The analysis includes market research, forecasting, and negotiation strategies, providing insights into the complexities of the tour operating industry and the decisions that impact profitability and customer satisfaction. The report provides calculations of holiday selling prices and evaluates the effectiveness of various marketing and distribution channels.

Tour Operations Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Effect of current and recent trend and development on tour operation industry (Covered in
leaflet).....................................................................................................................................1
TASK 2............................................................................................................................................1
2.1 Assess the stages and timescale involved in developing holidays...................................1
2.2 Different methods of contracting for different components of the holiday and tour operator
................................................................................................................................................2
2.3 Calculate the selling price of a holiday from given information......................................3
TASK 3............................................................................................................................................4
3.1 Evaluate the planning decisions taken for the design of a selected brochure..................4
3.2 Suitability of alternatives to a traditional brochure for different types of tour operator. .6
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 Evaluate the strategic decisions made by different types of tour operator.......................7
4.2 Compare the tactical decisions that could be taken by a selected tour operator in..........8
different situation...................................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Tourist are one of a major source whom support economy of a country so that suitable
and appropriate gain get promoted (Barratt, Choi and Li, 2011). For this context, various tour
operators are providing best services to ultimate users so that better and effective working get
promoted. Tour operators are such individual whom have specialisation to create package of
holidays. This project stated about tour operator management with reference to Trail-finders and
Kuoni both are famous touring service provider in UK whom design appropriate and suitable
package for their clients. There are various kinds of tour operator get determine which are
inbound, outbound and domestic in nature. There are various development and current trends get
determine in travel and tourism industry which need to understand by TO properly. There are
various stages involved in creating holidays package which will get evaluate in this assessment
with suitable calculation of selling price. For define each and every package information
properly, it is important to provide relevant information through suitable source and tour
operators need to frame suitable strategic and tactical judgement as well.
TASK 1
1.1 Effect of current and recent trend and development on tour operation industry (Covered in
leaflet)
TASK 2
2.1 Assess the stages and timescale involved in developing holidays
It is important for tour operator to determine and organise a suitable market research so
that they become able to create appropriate package for their users (Cook, Hsu and Marqua,
2014). There are various number of stages and steps are included in such aspect which have to
understand by tour operators properly when they going to deal with clients. In respect of present
context, Trail-finders have to create a luxury and education tour for students whom start their trip
from London to Brussels and Brugge, Belgium. The number of students group is of 42 students
with stay of around 5 nights for summer vacation in July 2019. thus, for developing suitable and
appropriate context to this group, tour operator need to perform appropriate and suitable thing
which stated as follow:
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 Market research: The first step for developing holidays is to determine the market.
Market research is essential for both tour operator as well as their clients (Dietz, 2011).
User need to determine association whom have good market commands and delivery of
packages. Operator need to conduct research for such market area where customers wants
to visit. This enables them in order to provide best quality services at appropriate rate. Planning and scheduling: The next step of every project is planning and scheduling of
dates and set suitable time frame as well (Evans, Stonehouse and Campbell, 2012). This
task is also important for perspective of both because tour operator need to set a clear
time frame for their users in which they going to visit different destinations. This enables
them in conserve time and cover all such areas where customer want to visit. Forecasting: A major thing which have to consider by tour operator is to forecast and
predict some unnecessary factors in advance. Like any kind of circumstances get
presented at such location for which recovery is essential. In such aspect, operator need to
describe all things in advance to their clients and forecast that things might get change in
near future which is not appropriate and suitable in nature for their betterment.
 Negotiation: If prices of package is high then tour operator need to organise appropriate
negotiation for bulk individual package. Like if a hotel charge high prices then operator
can organise a negotiation for all products and services which lead to deliver by them.
Trail-finders have to organise all these things while they are going to provide services to
students. Along with this, time scale for package is of 5 days for which suitable holiday package
have to prepare effectively.
2.2 Different methods of contracting for different components of the holiday and tour operator
Every tourist has distinct wish for their tourism which have to better understand by tour
operators properly. There are various kinds of tour operators get evaluated which need to
understand their clients needs and demands properly so that appropriate and effective services
get render. Thus, user usually provide contract to tour operators in order to deliver quality based
services.
Students group of a college wants to visit some places of Europe for which they provide
contract to Trail-finders whom are inbound tour operator. They are providing services within a
country. Although, all such places are part of Europe which easily get design by company.
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Group provide contract on the basis of quality services deliver by operator to all their
users. This contract gives to Trail-finders by such group in which company commit to their users
that they will gain better and effective quality services. Their purpose is specified in which they
have a picnic purpose and spent some time with friends. The time duration for all these places is
of 5 nights excluding time spent on travelling. There are various kinds of contract get evaluated
which have to understand by provider and service user stated as follow:
 Fixed Contracts: This term stated that all the time same and same association gaining
contract for tour (Grant, Wong and Trautrims, 2017). Although, they are based on fixed
assessment and thus chances of change are less in nature. Many of the time, users fixed
their service provider whom design every travelling package for clients. Trail-finders
have to provide quality based services to such group so that they get contract from them
on regular basis.
 Sale Only Contract: These providers usually charge high prices and their cost of volume
is also high in nature (Guo and He, 2012). Thus, sale only contract is those whom starts
with ultimate timings as well as start with selling of services. Trail-finders do not need to
become sale only contract provider as they want to maximise profit and deliver best
quality services at appropriate rate in order to attract vast range of clients.
2.3 Calculate the selling price of a holiday from given information
Every tour operator has different price for packages which usually provided by them. It is
important for a company to determine the price of package properly and provide it on best rate to
their ultimate user. Selling price of a package get determine through analysing per head cost as
well as total expenditure on all consents. Thus, it is important to determine the selling price of a
holiday package by Trail-finders. A proper estimate for this consent is Grand Casselbergh in
Bruges of 96 euros per person for a twin room (2 adults sharing) with breakfast.
The price 48-seater luxury coach is £11,200 and that includes two drivers, a tour
manager, fuel and all road and ferry taxes. The cost of a local tour guide is £945
. In all these things, managers add a mark up of 33% with exchange rate of €1.12 per £1. On the
basis of this information, suitable calculation of selling price need to get determine for better
creation of package and deliver it to best rate to ultimate clients.
cost of rooms per person 85.71
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cost of luxury coach per seat 233.33
Allocation of local guide cost per person 472.5
Total cost of tour before margin 791.54761905
Add: Profit margin
261.192380952
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Selling price per person of tour after
margin 1052.74
This is a selling price per person of a tour which provided by a company to their client. In
such context, company can provide some offers to their users as well. This enables them to gain
best offers and special services to users. Along with this, discount related strategies support
business to gain and attract more and more number of customers so that service user gets
enhance. In this pricing concept, some factors or cost which consider by a company stated as: Fixed and variable cost: There are mainly two kinds of cost out of which one if fixed
cost which do not get changed and incur on every project without its starting as well
(Hoyos, Morales and Akhavan-Tabatabaei, 2015). Along with this, another one if
variable cost which get fluctuate and change with a course of time. Trail-finders have to
determine both these cost in an appropriate manner so that they lead to deliver quality
based services to all users of a company. It is important to evaluate variable cost
properly due to ever changing environment of business and purpose.
 Profit margin: Along with calculation of cost, management also have to determine profit
margin as well. It is important to understand profit margin of a project properly which
lead to include in selling price (Kerzner, 2013). This enables management to gain
suitable profit against package which they design so that they become able to maintain
appropriate level of profit and not incur any kind of loss.
All these things have to include by management of a company in their package design for a
holiday. This enables them in order to gain better results as well as support in enhance customer
base effectively.
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TASK 3
3.1 Evaluate the planning decisions taken for the design of a selected brochure
Every association have a marketing department team whom have specific work and
purpose to provide and create awareness about products and services of a company. There are
various kinds of formats and techniques could be applying by business marketing team in order
to provide suitable information related to such aspects (Khairat and Maher, 2017). Kuoni is one
of an appropriate travel service provider whom want to create awareness about their luxury
holiday package to all users. For this purpose, they determine brochure as a best method for
providing information related with such aspect.
Brochure of a company need suitable planning decision which have to consider by an
association properly on the basis of these consents: Planning issue: Initially association have to determine the issue which is associated with
a company properly (Lenahan, 2011). This issue also concerns with format, style and
content. On the basis of provided section, it clearly gets determine that major issue for a
company related with brochure is to provide appropriate information related with luxury
holiday package to their users. Thus, it is essential to provide related content with this
affection so that better and suitable gain get derive. Along with these factors, size and
quality also play a vital role. Business managers have to determine the size of brochure so
that relevant content get added into it. Luxury holiday package details determination is
considering as essential task. Target market: Issue identification is not a limited extent but delivery of such
information to target market is also important. Without targeting market business
brochure preparation not provide worth. Luxury holiday package information need to
provide only high disposable income group people only so that Kuoni become famous in
such individual and gain ultimate customer base. Marketing team have to determine the
market which they want to target for a specific purpose. In brochure, company also have
to include detail related with budget or cost of a package. This enables in attracting
customers by using attractive pricing strategies.
 Attractive brief: Content should have to be relevant in nature as well as need to be
specific in tenure as well. Attractive brief with specified location to visit with attractive
pictures and colours make it interesting and many users start dreaming to visit such
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location. Thus, it is an overall work of a company in which they start complete dreams of
many people who wish to have a luxury holiday.
All these are essential which need to consider by Kuoni in their working for gaining and opt best
result by preparing attractive brochure so that more and more users start attracting to a company
in order to gain better results.
3.2 Suitability of alternatives to a traditional brochure for different types of tour operator
Brochure is considering as one of a source which support in order to deliver appropriate
information to target customers (Luis, Dolinskaya and Smilowitz, 2012). Traditional brochures
get deliver in a paper format which is costly for many associations to provide essential data
related with business. Thus, tour operators need to determine all kinds of brochure properly in
advance and use appropriate one to transfer knowledge related with package. With change of
traditional era vast range of modern methods get evaluated which need to adopt by business to
providing better and effective information. In such context, digitalisation play an important role
for which various framework are stated as follow:
I. Video: One of a way of modern brochure is video which can provided by many
associations to their clients by uploading it on YouTube and many other sites as well.
This approach enables in order to gain better and suitable outcome which can utilise by
outbound and inbound tour operator for providing information to their target users. This
is costly in nature which have to understand by business managers properly and create
such videos which made an appropriate impact on target users.
II. Internet: Another method for providing information is internet where business become
able to deliver knowledge to vast area people. Internet is considering as best source as
most number of people daily spend their hours on internet which stated that business can
apply this technique through creating page as well as images with full of colours and
sufficient information.
These two approaches can be use by Kuoni in business for delivering information related to
luxury holiday package. This enables them to reach vast range of customers without targeting
specific one so that chances of better and appropriate results get enhance.
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3.3 Suitability of different methods of distribution used to sell a holiday for different types of
tour operator
It is essential for an organisation to use and adopt bet suited method through which they
can distribute their brochure to target customers (Martinez, Stapleton and Van Wassenhove,
2011). It enables them in order to gain better results for accomplishing all suited gains properly.
Appropriate method need to use by a company so that transferable data lead to get provided to
target user. There are various kinds of distribution method can use by Kuoni in order to sell
holiday by inbound and outbound tour operators which stated as follow:
 Direct sell: This stands when business start selling out their brochures directly to
customers by providing them in hands or send through social media platform. This
enables them to sell their holiday package information directly to ultimate user and
provide essential details as well as resolve all related issues with it. Along with this,
direct selling support in maintain and creating good and appropriate relationship of
customers with a company which serve best results.
 Call centres: Another important way for providing information is call centre. Kuoni can
provide contract to some call centre for promoting their package in front of users. This
technique is helpful in order to provide better information as well as consider best source
which further assist in resolving all issues and problems. This approach also provides
generic information on discount and other related aspects to target users so that better and
suitable gain could be encouraging.
 Internet: Emails, social media etc. are some sources of internet in which company create
attractive brochures and through them relevant and suitable data get transfer. This enables
in accomplish and provide accurate information about package holiday for better and
effective responses of target market.
All these things need to be done of selected target market so that chances of unnecessary cost
incur get reduces as well as better and appropriate response from target market could be
accomplish.
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TASK 4
4.1 Evaluate the strategic decisions made by different types of tour operator
Strategies are a part of business which have to prepare by senior management of a
company for every concern project (Moutinho, 2011). Strategic decision is long term complex
judgement which need to understand by managers of a company and take by senior management
of a company. These judgements are critical in nature and impacted entire operations of a firm.
There are various tour operators are operating in environment out of which some work outside
the international boundaries where as some work in define local area as well as within a country
boundary. Thus, every tour operator need to produce take appropriate strategic decision which
enables them in long term context and promote appropriate and effective gain as well. Inbound tour operator: These tour operators take residents of a nation and provide them
travelling of same country. These tour operators have medium scope of growth rather
than large in nature. Thus, their strategic decision making have to determine the demand
properly. Demand forecasting is easy and convenient in nature due to taking place at
national level. Along with this, within a nation all customers diversify in nature and get
vary from each other as well. Along with this, they need to frame suitable pricing strategy
as all things are taking place nationally not outside of a country. Moreover, people whom
belong to similar nation need more and more discount offers through which sustainability
get promoted effectively.
 Outbound tour operator: These are such operators which usually provide services of
visit of other residents to other countries. These usually support and promote effective
growth and development as well as supportive in order to improve economic condition of
a country by increase of visits. Volume of services usually high as compared to inbound
operators. Although, these individuals are working at vast level and thus management
have to keep in mind that their demands are high in nature as well. Moreover, demand
forecasting is also not an easy extent for such operators which need more and more
critical inspection. These associations need to frame suitable strategic decision by
creating appropriate positioning of products and services deliver by them. One wrong
judgement impacts and harm overall working as well as target accomplishment of an
organisation.
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Thus, every tour operator has distinct strategic decision making which associates with business
as well as its working. Management need to understand such factors properly which harms long
term sustainability of business and then frame suitable action plan which promote and support
long term growth of an organisation.
4.2 Compare the tactical decisions that could be taken by a selected tour operator in
different situation
Every association have a hierarchy of working which constitutes with: top level, middle
level and operational level. Management have to take appropriate and suitable steps with their
working capabilities. Like strategic decision perform by senior management of a company which
are complex in nature on the other hand tactical decisions usually take by middle level managers
and less complex in nature as well. In travel and tourism sector, middle level managers of a
company have to compile their work with demands and wants determination concept and then
take suitable judgement on them.
Middle level managers need to signify all policies and procedure of a company to target
respondents properly so that they better engage in working and become able to accomplish
targets effectively as well. Thus, different tour operators take various judgement according to
situation which reflected by business managers. Like at national level price war is more in which
every second individual use effective pricing strategy by rendering products and services at low
cost. Inbound tour operators take such step of pricing in which they become able to attract more
and more individuals. Thus, pricing war decisions are less complex in nature and get easily
control by managers of a company rather than volume related consent.
When business taking place at vast level external factors also play an appropriate role.
Outbound operators are working at vast level where chances of influences at big level high in
nature. Moreover, business managers need to take judgement related to contracted beds as well.
Managers have a proper list regarding occupancy of beds and rooms so that chances of
inconvenience get reduce.
A responsible manager is one who take decision by considering various situation in
consideration. Whenever any unfavourable situation gets arise in tour operation management,
managers need to make their working more smooth and flexible in nature and then adopt suitable
steps to deal with them as well. Like in case of volume related concept, business managers are
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not able to take such kind of decisions but on the other hand, if context is related with price
managers are abler to take beneficial judgement.
Along with all these things, determination of external influences could be control by
managers of a company easily. They have to get aware about all new and innovative
technologies for concerning business and apply them in relevant situation as well. Along with
this, all regulation, laws and legislation need to get understand properly. This will enable
business managers to conserve and take care about rights of their customers properly. These
factors need to properly understand by outbound operators as chances of decline for them usually
more as compared to inbound tour operators.
CONCLUSION
From the above report, it can be concluded that there is essential part of tour sector
business which makes it successful and that is tour operation management. Tour operators design
best and suitable packages for their clients by determine their needs and wants properly. There
are various tools and techniques which are being utilised by company in order to attract large
number of buyers. In this type of business there are packages which are being made to offer
family and individual tour. There are various destinations which are attractive in nature for the
visitors visiting for first time and this in turn can help in increasing profitability of business and
thus aims and objectives of firm can be attained.
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REFERENCES
Books and Journals
Barratt, M., Choi, T.Y. and Li, M., 2011. Qualitative case studies in operations management:
Trends, research outcomes, and future research implications. Journal of Operations
Management. 29(4). pp.329-342.
Cook, R. A., Hsu, C. H. and Marqua, J. J., 2014. Tourism: the business of hospitality and travel.
USA: Pearson.
Dietz, D. C., 2011. Practical scheduling for call center operations. Omega. 39(5). pp.550-557.
Evans, N., Stonehouse, G. and Campbell, D., 2012. Strategic management for travel and
tourism. Taylor & Francis.
Grant, D. B., Wong, C. Y. and Trautrims, A., 2017. Sustainable logistics and supply chain
management: principles and practices for sustainable operations and management.
Kogan Page Publishers.
Guo, X. and He, L., 2012. Tourism supply-chain coordination: The cooperation between tourism
hotel and tour operator. Tourism Economics. 18(6). pp.1361-1376.
Hoyos, M. C., Morales, R. S. and Akhavan-Tabatabaei, R., 2015. OR models with stochastic
components in disaster operations management: A literature survey. Computers &
Industrial Engineering. 82. pp.183-197.
Kerzner, H., 2013. Project management: a systems approach to planning, scheduling, and
controlling. John Wiley & Sons.
Khairat, G. and Maher, A., 2017. Integrating sustainability into tour operator business: An
innovative approach in sustainable tourism. ARA: Revista de Investigación en Turismo.
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Lenahan, T., 2011. Turnaround, shutdown and outage management: Effective planning and step-
by-step execution of planned maintenance operations. Butterworth-Heinemann.
Luis, E., Dolinskaya, I. S. and Smilowitz, K. R., 2012. Disaster relief routing: Integrating
research and practice. Socio-economic planning sciences. 46(1). pp.88-97.
Martinez, A. J. P., Stapleton, O. and Van Wassenhove, L. N., 2011. Field vehicle fleet
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Moutinho, L. ed., 2011. Strategic management in tourism. Cabi.
Online
Tour Operations Management. 2014. [Online]. Available Through: <http://somo.co.ke/bachelor-
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