Tour Operations Management: Trends, Development & Decisions

This report provides a detailed analysis of tour operations management, focusing on current trends affecting the industry, the timescales and stages involved in developing holiday packages, and the different types of tour operators. It explores planning decisions for brochure design, the suitability of alternatives to traditional brochures, and various distribution methods for selling holidays. Furthermore, the report examines strategic decisions made by different tour operators and the tactical decisions they might take in various situations, using Trailfinders Ltd as a case study. The analysis includes a calculation of selling price for a student tour package, highlighting the key factors that influence pricing strategies in the tourism sector. Desklib offers a range of resources, including past papers and solved assignments, to support students in their studies.

Tour Operations
Management

CONTENTS
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Current and recent trends and its effects on tour operators industry ....................................1
Covered in leaflet.........................................................................................................................1
TASK 2............................................................................................................................................1
2.1 Timescales and stages involved in developing holiday.........................................................1
2.2 Different type of tour operators.............................................................................................4
2.3 Calculation of selling price....................................................................................................5
TASK 3............................................................................................................................................6
3.1 Planning decisions for design a brochure..............................................................................6
3.2 Suitability of alternatives of a traditional brochure for various type of tour operators.........7
3.3 Different methods of distribution to sell a holiday and its suitability for different type of
tour operators...............................................................................................................................7
TASK 4............................................................................................................................................8
4.1 Strategic decisions made by different type of tour operator..................................................8
4.2 Tactical decisions that could be taken by tour operators in different situations..................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
In today’s environment, sector of tourism is one of the fast growing sector. One of the main
advantage of this is that it contribute in economic development of a nation and that’s why
government of country also support this (Allahyari, Salari and Vigo, 2015). This sector
consists various trends and growth phase. In order to formulate better tour packages and to
attract large number of customers it is very essential for enterprises to identify and evaluate
every factor that affect the decision of visitors. Trailfinders Ltd, an enterprise which deals in
tourism sector in UK is taken under this report for study. This is one of the biggest owned
travel enterprise, company offer travel insurance, foreign exchange and other services to its
customers. This report contain information about impact of various present and recent trends
of tourism on travel and tourism sector. Timescales involved in developing holidays and
different type of tour operators is all detailed under this report. Further, various planning
decisions involve in design a brochure and suitability of various methods of distribution is
all given in this. Further, strategic decisions made by different type of tour operators in order
to make the tour package more attractive is also mentioned in this. In addition to this, type of
tactical decisions by tour operators in different kind of situation is also included.
TASK 1
1.1 Current and recent trends and its effects on tour operators industry
Covered in leaflet
TASK 2
2.1 Timescales and stages involved in developing holiday
Large number of individuals go to visit various places for the purpose enjoyment and
recreation. During time of holidays, large number of individuals go for travelling in various
countries with family members, friends, colleagues and others. For all this, planning is an
starting stage before doing an activity and before going for any trip. Planning helps individuals in
carry out every activity in proper and adequate manner. Formulation of tour packages consists
different stages of development and also consists various elements that make the whole tour
package effective (Bititci and et. al., 2011). Planning helps in consider all the elements which
affect the choice of visitors. For preplanning the holiday, timelines are given below:
Step/Activities Description Time taken
Relevant and detailed data and This stage consists detailed This takes approx 3 to 5
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planning and preparation of
holiday tour.
and appropriate investigation
done by tour enterprises in
order to take decisions related
with price, cost, facilities,
attraction places,
accommodation and other
factors in order to make the
tour packages more effective
and attractive. Customers
check price and other facilities
of tour packages by collect
information through online
website. This also provide
them information about the
feedbacks and past experience
of real customers.
months for collect information
about the accommodations and
other facilities offer to various
visitors.
Negotiation Under this, two different
parties come together with
mutual consent. Both parties
choose a common solution. In
this, negotiation help among
various vendors, owners,
travelling organisations and
hotels management in order to
offer quality services to its
visitors at affordable prices.
This take at least 2 months
with the purpose of
contracting each service
provider and when parties do
consultation to set the price
which is beneficial for both
the parties then it consume lot
of time. Trailfinders company
offer minimum cost of
travelling to its customers.
Development of tour Under this, after choose the
final destination of tour,
development of various
countries and places take
place.
This is known as one of the
most important stage and
approx 3 months will require
to complete this stage.
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Price determination Under this, travel enterprise
analyse pricing strategies in
order to finalise the final price
of tour package and to attract
large number of customers.
Various elements are there
that affect the pricing strategy
in tourism sector such as
foreign exchange rates, fuel
price and taxation of host
country. In order to serve
more number of customers
and to better satisfy their
needs Trailfinders require to
develop different holiday
packages.
Process of set right and
effective price for tour
package require minimum 2
months to complete.
Marketing and promotion of
tour packages
After set the final price of tour
package, it become very
necessary for enterprise to use
effective channel of
marketing. Major channels
which can be use by firm are
online services, banners,
holders and many more.
Marketing process require
minimum 1 month to
complete.
After tour management After offering services to
visitors, it is very important
for firm to collect feedbacks
from visitors in order to get
knowledge about their
experience. In this,
Trailfinders can collect the
This stage will take approx 1
month in send questionnaires
to customers for collect
information about their
experience.
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opinions and reviews from its
customers and for this
company can take help of
questionnaire.
2.2 Different type of tour operators
Trailfinders is one of the popular enterprise in travel industry in UK. One of the main
reason behind this is that it offer quality products and services to all its customers at affordable
prices. Focus of this firm is to offer better packages to all its clients in order to better satisfy their
needs and wants. As per given scenario, product development team of enterprise designed a
educational package for around 42 students which consists all basic and relevant services.
Sustainability of various techniques of contracting for different elements related with holiday
package are as follows:
 Transportation: This is known as one of the most important component of holiday
package. Every individual require a mode of transportation for travelling. Without proper
facility of transportation, activity of tourism cannot take place in an effective way. It is
very necessary for firms to offer better and effective transportation services to travellers
in order to make their experience a better one (Bonilla Priego, Najera and Font, 2011).
Further, this influence them to visit again. It is one of the main and core elements of
travel and tourism industry as this ensure expansion of business activities. For this, firms
can formulate strategies and policies related with facility of transportation. Further with
help of government enterprise can make the transportation facilities more effective and
attractive in order to attract large number of visitors.
 Hotels: As per the scenarios, students spend money during travelling for the purpose of
their education. Further, number of individuals are there who go and visit various places
in order to spent quality time with their family members and friends. In this, facilities and
services offer by hotel industry plays a big role. For attract large number of visitors and
to better satisfy their needs, it is very important for hotels for to offer quality services to
its customers at lower prices. Further, it is very significant for staff members of hotel to
behave with customers politely as this build a positive image in mind of visitors and help
hotel to keep them for a long period of time.
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 Attractions: This is one of the another important elements of travel and tourism industry.
Attraction of a place is the only elements which attract large number of visitors to visit
that place (Buckley, 2010). This increase the number of travellers and contribute in
economic development of a nation. Government of United Kingdom require to focus on
this. Further, it comes under the responsibility of Trailfinders to offer attractive places to
its visitors as per the basis of their interest. All attraction places contribute a lot in
government revenue and also ensure economic development of nation.
Overall, it is very necessary for travel and tour enterprises to offer better transportation and hotel
facilities. This increase the number of visitors and at the same time contribute in economic
growth of that nation.
2.3 Calculation of selling price
As per the given scenario, students of Europe make a tour plan of travelling from London to
Brugge and Brussels with education purpose and to enhance the level of their knowledge. For
this context, they need to prepare the budget regarding trip of 5 nights by considering all the
major factors. Trailfinders firm deals in travel and tourism services and firm enjoys a positive
image at market and has a strong contact with various hotels and firms in Belgium. Product
development team of enterprise is very effective and focus on developing tour package with
offering better quality services to all visitors and can offer effective packages and discounts to its
customers. For this, it is very essential for students to calculate actual cost of trip by add all cost
of activities incur during time of journey.
Accommodation cost: 96*21=2016
96/1.12= 85.7
85.7*21= 1800 (For One night)
1800*5= 9000 (For 5days)
Details Price(in £)
Accommodation cost 9000
Transportation cost 11200
Charges of tour guide 945
Total cost 21145
Add: Profit margin @ 33% 6977.8
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Sale price 28122.5
From the above calculation, it has been summarised that cost of food is not included in
calculation of selling cost. So, in context of this, total selling price will be: £28122.5.
For per person:
=28122.5/21= £1339.18
TASK 3
3.1 Planning decisions for design a brochure
Major planning decisions which an individual take to design the brochure should consists
the information to be contain in the brochure. It is very important the data should be able to
encourage the individuals to take tour packages and take decisions as per their needs and
requirements to get a better holiday experience (Chand and Katou, 2012). One data which must
be consists in brochure is the name of tour firm, information about the destination, modes of
transportation which will be use, prices, duration of whole tour process, risk consists in
adventure, extra charges, type of food, resources which individual is require to carry with
him/her self during trip. In addition to this, cost require in formulate the brochure, selection of
vendor for design the brochure, final format of brochure which firm will use to influence
customers all are the major elements which must be consider during formulation process.
Mainly, a brochure is something which an enterprise made in order to make aware to its
customers about its products and services. This helps visitors in take better decisions. In case of
Kuoni travels, it is very essential for firm to design a attractive and effective brochure as this will
help enterprise in attract more number of travellers. For this, number of methods are there which
can be use by Kouni travels to get attention of many visitors. Major elements which must be
consider by organisations during the process of design a brochure are as follows:
 Format of brochure: Mainly, Brochure is a document which consists relevant
information about the products and services about and enterprise which its offer to
its customers. A brochure contain section and sub sections in which data is
classified in various parts. This make the document more attractive and impressive
and at the same time attract large number of customers.
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 Selection of target market and budget: Formulation of budget for tour package is
very essential and this can be easily done with help of conduct research about needs
and wants of customers (Chon and Yu, 2012). Research make the tour operator
aware about their spending power which help firm in decide the final price of
product or service.
 Time require to complete a specific stage: To serve more number of customers, it is
very necessary for firms to design a attractive brochure along with this, design the
same in specific time period is also very necessary. This save time and cost of firm
and at the same time help in formulate a better and impressive brochure.
3.2 Suitability of alternatives of a traditional brochure for various type of tour operators
Due to introduction of number of technologies all old methods have been changed.
Adoptions of different techniques of marketing includes use of websites, online platforms and
many more. Today number of enterprises are there which use these techniques for marketing
their goods and services (Deresky, 2017). Tour operators sold tour packages to their target
customers by showing the features of every package. Old traditional brochures failed to get
attention of large number of visitors which was failed to create the demand of tour packages.
Introduction of technology give an opportunity to firms to design effective and attractive
brochures. One of the main feature of technology is that it helps in overcome with all the barriers
related with traditional brochure and helps in make it more effective and impressive. Number of
alternatives of traditional brochure are given as follows:
 E-brochures: Use of internet helps enterprises in formulate a impressive and
attractive brochure further, this save lot of time of firms and provide various other
advantages.
 Visual: Under this, effective images are used in magazines in order to attract large
number of customers towards tourist destinations.
 Social media: In this, firms use various social media platforms such as Facebook,
Twitter and many more.
 Websites: This consists development of various sites related with tourist destination
which contain information about the features of that destination.
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Use of technology helps enterprises in formulate electronic brochure which are more effective
and attractive as compare to old physical brochures (Gibson, 2012). In addition to this, number
of enterprises take help of audio and visual in order to get attention of large number of visitors.
3.3 Different methods of distribution to sell a holiday and its suitability for different type of tour
operators
Kuoni travels wants to sell its services and tour packages to large number of customers.
For achieve the same, it is very important for firm to use right and effective channels of
distribution. Number of tools are there for which company can choose for example company can
sell its services directly to its customers or can take help of mediators (Guo and He, 2012).
Various tools must be consider by firm to sell its tour packages as one method does not provide
benefit to company. Enterprise should give focus on method which deals with customers
directly. Further, major methods which can be use by kuoni travels to sell its tour packages are as
follows:
 Internet: From all methods of distribution this is one of the most popular and
effective method. One of the main feature of this is that it make easy for the firm to
sell its tour packages an increase number of company’s profits (Jaafar and Maideen,
2012). IT department of firm posts various posts in website about various tourist
destination which helps in attract large number of travellers.
 Direct sale: This is another approach which can be use by Kuoni travels to sell its
tour packages. Under this, employees of organisation directly deal with clients and
influence them to buy tour packages. Major advantage of this approach is that it
helps firm in create and maintain good relations with its customers which help
company to retain its customers for a long period of time. In addition to this, this
increase the market share of enterprise and its profits.
 Telephone: As the name suggests, under this company’s management call selected
number of clients in order to make them aware about company’s products and
services and influence encourage them to buy the same. Main feature of this is that it
help firm in generate interest of customers (Khairat and Maher, 2017). Kuoni call its
old and loyal customers to visit different destinations at affordable prices.
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All these are the major methods of distribution and with effective use of all these Kuoni
can serve more number of customers by make them aware about its products and
services.
TASK 4
4.1 Strategic decisions made by different type of tour operator
Different tour enterprises take number of strategic and tactic decisions which play a big
role in industry of travel and tourism (Martinez, Stapleton and Van Wassenhove, 2011). It is
very important that decision must be taken by enterprises after considering every factor which
affect the decision and its output. Both tour enterprises Trafalgar and Thomas cook take different
decisions in relation with marketing tools, positioning of brand, related with price of tour
packages and many more. It is very essential for enterprises to include the supplier which it will
choose and quality of products and services which firm will offer to its target market. In addition
to this, enterprises make decisions related with media and final design of brochure. Firm choose
media as per its budget and other requirements (Naji-Azimi and et. al., 2012). Further, various
decisions are there which taken by organisations that relate with price of tour packages, discount
and special offer which company will offer to its customers, utilisation of other equipments and
many more. Following points are indicating the strategic decisions which tour operators take are
as follows:
 STP (segmentation, targeting and positioning): Under this, tour operators first segment
the market on basis of factors such as their age, interest, spending power and many more.
This helps firm in choose and target the segment which have a growth potential. Further
it support in doing positioning of products in an effective way which helps in attract
large number of customers. Thomas cook do segmentation on basis of behavioural,
psychographic and demography.
 Strategy for competitive pricing: In this, company focus to achieve a competitive
advantage by set the unique price of tour packages as compare with the prices of other
tour operators (Nakayama and Bucks, 2012. Under this context, Thomas cook decide the
final price of its tour packages after analyse the prices of packages offer by its rivals.
 Strategy for promotion: In this, company go for and choose unique tools for `carry out the
promotion of its products and services. Choose right channel for promotion is very
essential for an enterprise as this helps firm in grasp the attention of large number of
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audiences. For example, Thomas cook adopt exclusive strategy for promotion its tour
packages and other services. Along with this, company take help of various tools of
advertising such as electronic and print media in order to serve large number of
customers.
 Strategy for discount pricing: This element helps firm in attract large number of
customers. This provide an opportunity to company to capture a large market share and
provide competitive advantage (Page, 2014). All this help enterprise in better satisfy the
needs of its customers and at the same time help retain them for a long period.
 Tour packages seasonal scenario: Large number of customers choose to visit various
place in time of festivals or in school vacations. Under this, there is always a variation
among prices of tour packages.
4.2 Tactical decisions that could be taken by tour operators in different situations
Decisions which tour operators take in order to manage the day to day operations and
activities of enterprises are known as tactical decisions. This consists decisions related with
design of tour packages (Ronen, Pliskin and Pass, 2012). These play a big role in growth and
success of business so it is very essential that these must be taken in an effective way. Further,
this ensure effective execution of business operations and provide various benefits to company.
Today, number of decisions are made by tourism industry for achieve set goals and objectives
and to achieve consistency in business activities. This ensure that quality services and effective
accommodation must be offer to all visitors. For achieve the same, tie ups can be made with
different stakeholders as this increase the quality of services and widen to enterprise offerings.
Tie up with different type of stakeholders is one of the most important tactical decision
which must be taken by every firm which deals in travel and tourism industry. For make other
important decisions managers of Thomas cook can take help of personnel advisor. These
advisors support the managers in take better strategic decisions which enhance the position of
enterprise and attract large number of visitors. Along with this, it is important to conduct
meetings with service providers as this help firm in built collaborations which support enterprise
in better satisfy the needs of its customers (White, 2016). Further, it is very necessary that right
price must be set for tour packages.
Number of techniques and methods are there which tour operators can choose for provide
value for money to its customers and to add a positive note in their overall experience.
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