Tour Operations Management: Holiday Planning, Pricing & Distribution

This report provides a comprehensive analysis of tour operations management, covering key aspects such as current trends and developments affecting the industry, the stages and timescales involved in developing holidays, and the suitability of different contracting methods for various tour operator types. It includes a detailed calculation of the selling price for a student tour from London to Brussels and Brugge, Belgium, and assesses the planning decisions behind brochure design and alternative marketing strategies. Furthermore, the report evaluates strategic decisions made by different tour operators and compares tactical decisions in various situations, offering a thorough understanding of the tour operations landscape. Desklib provides this assignment as a resource for students.

UNIT 14 TOUR OPERATIONS
MANAGEMENT
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Table of Contents
INTRODUCTION...............................................................................................................4
TASK 1- LEAFLET.............................................................................................................5
1.1 ANALYSE THE EFFECTS OF CURRENT AND RECENT TRENDS AND
DEVELOPMENTS ON THE TOUR OPERATORS INDUSTRY....................................5
TASK 2- WRITTEN REPORT............................................................................................8
2.1 THE STAGES AND TIMESCALES INVOLVED IN DEVELOPING HOLIDAYS......8
2.2 EVALUATE THE SUITABILITY OF DIFFERENT METHODS OF CONTRACTING
FOR DIFFERENT COMPONENTS OF THE TOUR HOLIDAY AND DIFFERENT
TYPES OF TOUR OPERATOR...................................................................................11
2.3 CALCULATE THE SELLING PRICE OF A HOLIDAY...........................................13
TASK 3- MANAGEMENT REPORT SUMMARY.............................................................15
3.1 THE PLANNING DECISIONS TAKEN FOR THE DESIGN OF A SELECTED
BROCHURE.................................................................................................................15
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............17
3.3 EVALUATE THE SUITABILITY OF DIFFERENT METHODS OF DISTRIBUTION
USED TO SELL A HOLIDAY FOR DIFFERENT TYPES OF TOUR OPERATOR.....18
TASK 4 MANAGEMENT REPORT SUMMARY..............................................................20
4.1 EVALUATE THE STRATEGIC DECISIONS MADE BY DIFFERENT TYPES OF
TOUR OPERATOR......................................................................................................20
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
In this assignment the important developments and trends in the tour operators industry
will be laid emphasis on together with the different aspects of the tour operator industry.
The different stages in the development of the holidays will also be laid out and the
brochure preparation will also be accessed. The selling price of the holiday trip will be
calculated from London to Brussels and Brugge in Belgium of 40 students. This report
will also help in analysing the strategic decisions that will be made by different types of
tour operators with a comparison of the tactical decisions for selected tour operator in
various situations.
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TASK 1- LEAFLET
1.1 ANALYSE THE EFFECTS OF CURRENT AND RECENT TRENDS AND
DEVELOPMENTS ON THE TOUR OPERATORS INDUSTRY
Travel and tourism forms a major
industry for a country as it has been
considered as the most revenue
generating sector for a country. There
have been many trends and the
developments in the tour operators
industry that Trailfinders will analyse
and its effects will also be analysed with
reflection to the current and the recent
trends (Horner and Swarbrooke, 2016).
There have been recent developments
and trends in this sector which leads to
intense pressure on the tour operators
in the form of competition which forces
them to design tour packages so that
the consumer’s needs are duly met.
After the WWII the tour operator industry
has been progressing a lot and with this
recent trends and developments have
been emerged that leads to new
expectations and the attitudes of the
tourists which significantly impacts the
tourism industry (Xiang, et al. 2015).
Some of the recent and current
developments and changes in tour
operator industry include the following:
Changing face of tourists
In the changing world the tourist’s types
are also changing. There is emergence
of many new types of tourist such as
mature travellers, individual travellers,
and minority groups and independent
travellers. This new trend of the
travellers will impact the industry as this
will lead to increase in number of
tourists (Mowforth and Munt, 2015).
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Technological advances
Due to the new technologies coming
into existence there are many advances
that affects the tour operator industry.
Through these technological
advancements now it is easy for the tour
operators to alter and tailor the holidays
and share the information to the
travellers through virtual means
(Mowforth and Munt, 2015).
Packaging
In this growing advancement era the
travellers are now using internet to carry
their research and makes their own
packages by arranging the airlines,
hotels, travelling through the help of
internet and this renders better flexibility
to them which helps in arranging better
tour package than a travel agency and
saves costs of travellers (Xiang, et al.
2015).
Integrated communication tool
There has been development of
integrated communication tool in the
tourism industry which helps in effective
marketing by utilising innovative
marketing tools that helps in reducing
the access costs to markets and helps n
reaching wide range of customers (Yan
and Ho, 2017). Through internet
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information availability s boosted and
the sharing information leads to better
processes.
World Wide Web
Internet has enhanced collaboration
level between the travel agencies and
other service providers by rendering
effective arrangements on time. This
also allows for better customisation of
the activities and the services that
render better customer satisfaction (Yan
and Ho, 2017).
Other Advances
There have been development of many
other technological advances which
includes information portals, mobile
apps, Google Street View, Internet-
based travel wholesalers and the online
word of mouth which leads to better
acuities and convenience to the
travellers in the travel and tourism
industry (Yan and Ho, 2017).
Thus with these recent and current
changes and developments the tour
operator industry is getting affected as
these developments have led to the fall
in the popularity of the tour operators.
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TASK 2- WRITTEN REPORT
In this report the stages that are involved in the development of the holiday for 40
students from London to Brussels and Brugge in Belgium will be discussed and will also
develop a time scale that will be followed in the holiday development. Through this
report an understanding will be gained on the different methods of contracting and its
suitability for different types of tour operators. At end of this report a selling price will be
estimated for this particular holiday using given information.
2.1 THE STAGES AND TIMESCALES INVOLVED IN DEVELOPING HOLIDAYS
There are several stages that are involved in planning and developing this holiday from
London to Brussels and Brugge which includes the following:
Market research
The stages involved starts with the market research of Brussels and Bruges in terms of
the economic conditions and the demand factors prevalent in that country. The market
research will also involve screening of the seasonal impacts and the seasonality of
demand in August 2019 (Dai, et al. 2017). Through the market research the luxury
travel will be estimated by understanding the product components and will identify the
best time for the sightseeing. Through the sales research the actions can be better
taken for increasing the sales.
Planning and scheduling
After the market research planning and scheduling will be carried out which will help in
deciding the best time to travel and locations that will be visited in Belgium? This will
also involve considering the amenities, attractions and accessibility for the students with
special facilities (Byrnes, et al. 2016).
Contracting
Now the tour operator will be evaluated that will be entered in the contracts with. As this
tour will begin on August 2019 so before one year the contracts should be made so as
to agree about the hotels and airlines.
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Costing
Then costing will be calculated of the tour planned so that the same can be
communicated to the prospective students after effective evaluation of the prices
(Giaoutzi, 2017).
Brochure and advertising
Then the step comes is of the brochure preparation and the advertising of the planned
holiday trip to the students so that the execution of the holiday can be ensured in
advance.
Execution
After all these stages final execution will be carried out in August 2019 which will run
according to the planned timescale of the holiday.
Post-tour management
This is the most important stage of the planning holiday as it will help in monitoring and
analysing the faults of the planning holiday so that these mistakes can never be
repeated in future (Boniface, et al. 2016).
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Timescale of holiday from London to Brussels and burgee in Belgium in August
2019
ACTIVITIES APRIL
-
MAY
2018
JUNE
-
JULY
2018
AUG
-
SEP
2018
OCT
-
NOV
2018
DEC
2018
JAN
-
FEB
2019
MARCH
-
JULY
2019
AUG
201
9
SEP
2019
Market
research
Planning and
scheduling
Contracting
Costing
Brochure
and
advertising
Execution
Post-tour
management
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2.2 EVALUATE THE SUITABILITY OF DIFFERENT METHODS OF CONTRACTING
FOR DIFFERENT COMPONENTS OF THE TOUR HOLIDAY AND DIFFERENT
TYPES OF TOUR OPERATOR
Competition has been increasing in recent times so it is better to outsource some
business operations so that company can perform efficiently. Main parts of the tour
holiday to be contracted are accommodation, carriers, ground operators, restaurants,
ground staff etc. Contracts are fixed usually one year before of the holiday season
(Noor, et al. 2016). Tour operators and travel industry have to make estimation on a
prior basis for making contract with airlines, restaurants and hotels.
Different types of contracts:
Fixed Contract: This contract aims at booking all rooms and seats in advance and also
the payment made in advance. Provider offers the fixed and specific package to
everyone which is having the fixed price. The main benefit of this contract is it is very
effective in the mass consumption. This offers the high discounts to the large group of
people and the mass number of booking that will offer many discounts (Ivanov, et al.
2015). Also the supplier will get the benefit of non-occupancy of the seats and
accommodations. Trailfinders has adopted this kind of contract due to its flexibility as
Trailfinders can reduce the prices as their own.
Ad-hoc contracts: Ad-hoc contracts is being adopted by the Virgin Holiday as this
contract is being contracted when there is a requirement of the beds and flights. As in
this contract there is no cost involved in it. Virgin Holiday faces the case of the
overbooking so they use this contract for the arrangement of the extra accommodation.
It is most popular among the tailor-made industries, luxury travel companies and
specialist travel industry (Shi, 2016).
Sale only contract: These contracts are costly and high in prices as compared to other
contract. These are adopted at the time of the peak season where there is a priority of
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