HND Travel & Tourism: Developing a Holiday Package & Tour Operations

This report delves into the intricacies of tour operations management, focusing on the development of holiday packages. It investigates the impact of current trends and technological advancements on the tourism industry, explores the stages involved in creating holiday packages, and assesses various methods for contracting different components. The report also analyzes the suitability of different communication and promotion methods for tour operators, examines strategic and tactical decisions within the industry, and considers the response of tour operators to emerging trends. The document provides a detailed examination of the factors influencing the tourism industry, including PESTEL factors, economic considerations, and the importance of customer satisfaction. It offers a comprehensive overview of the processes involved in creating successful and competitive tour packages.

Running head: TRAVEL AND TOURISM
Travel and Tourism
Name of the Student
Name of the University
Author Note

TRAVEL AND TOURISM 1
LO 1: Task 1
A. A brief investigation of the kind of occasions taken, the rising famous goal and
the impacts of present and late patterns and improvements in the tourism
industry
The tourism industry has gained utmost importance in the current scenario since it is
one of the main sources of revenue for the economic structure of a country (Sy 2015).
Throughout these years, the industry has been growing at an increasing rate and much
development has been made. Some of the current trends and developments and their impacts
are:
 The Technological Development – The growth in the tourism industry is dependable
on the new and updated technological advancements. Majority of the travellers’ uses
the internet these days by which they search for the best deals and packages in their
favourite or upcoming holiday destination (Han and Hyun 2015). Travellers can book
tickets online and also check the status of their bookings whenever they want via
online apps. Facilities provided by the increasing advancement in the technology
showered a positive impact on the tourism industry.
 Holiday Packages – In the current scenario, more new companies are coming up in
the tourism market. They are providing attractive holiday packages that are
customizable according to the requirements of the travellers or the customers. The
customers can now choose from a variety of option and they are flexible in selecting
their preferences according to their budgets and choices. The main target of the
tourism industry is to provide optimum satisfaction to the customers.

TRAVEL AND TOURISM 2
 Tourism Marketing – In the tourism industry, the emergence and development of
marketing have helped the industry to flourish and attract more customers (Gretzel et
al. 2015). Marketing helps travellers to know and gain knowledge about the services
they will be provided by the tour company in their upcoming holiday destination.
Increased power of spending – In case of developing and developed countries, travellers with
a higher range of income levels tend to spend on tour and travels. The tourism industry gets
benefited from the international travellers due to the increase in spending.
The PESTEL Factors-These factors are very specific and significant in developing the
tourism industry since the environmental, technological, social and political factors of a
country decide the growth rate of its tourism industry (Han and Hyun 2015). Travellers prefer
destinations that are clean, eco-friendly, equipped with modern technologies and have
political stability.
The economy- The rising market of the tourism industry has been beneficial for the local
community people in terms of socio-economic development. The industry generates
humungous job opportunities which are beneficial for the local communities (Sy 2015).
Besides, the industry generates significant profits to its stakeholders.
Customer Satisfaction- One of the essential factors for the tourism industry is the customer
satisfaction. This is because it decides the future of the business industry. Positive
experiences of a customer result in positive word of mouth and attract newer customers for
the business (Schuckert, Liu and Law 2015). Recruitment of efficient workforce will increase
the chances of better quality hospitality which may result in higher chances of customer
satisfaction.

TRAVEL AND TOURISM 3
LO2: Task 2
A. Assess the phases in creating occasion packages and set up a schedule for a
consolidated heritage, natural life and beach occasion and build up a itinerary in
stages.
B. For the development of a good tour plan, good and effective planning should be some
since it includes a wide range of analysis like the location, needs of the customers,
research activities, and terms of negotiation with the service providers. Stages of the
development of the holiday packages include some of the key activities like careful
examination of the destination place, research of the destination, negotiation,
development of the tour, pricing and financial evaluation, marketing tour packages, tour
operator’s brochure and post tour management (Fotis 2015).
Travel itinerary outlines all the elements of the upcoming trip, starting from hotel stops to
destinations. Developing a travel itinerary helps to build an entire structure (Baratynskiy
and Pyshkin 2015). It further helps in execution of the entire trip plan in an efficient and
organized manner. The stages include:
Planning and mapping of the itinerary:

TRAVEL AND TOURISM 4
Organizing the itinerary
ConstructionandmakingupthelistMappingthestopstospecificlocationsCreatingthefullformbudgetplanfortheupcomingtripStayingandencouragingotherstocarryaflexibleattitudewhiletravellingAirline or train tickets
Hotel reservations
Rental Car confirmation
Wildlife tour package reservations
Beach water sport package reservations

TRAVEL AND TOURISM 5
C. Analyze the suitability of various methods for contracting the different
components and factors of holiday while developing tour packages for different
tour operators.
While designing the tour packages two methods are generally adopted by the tour
operators. These are fixed contract method and sale only contract method.
Fixed contract method: This method is availed by the service providers in case of
offseason sale shortage (Chen et al. 2015). In this process, the service providers’ charges for
the volume based capacity to maximize the revenue. Since high volume of people seeks tour
packages, so higher discounts are offered in these types of contracts. This enables the tour
operator to enjoy a higher rate of customers for the tour packages.
Sale only contract: As compared to the fixed contracts, these contracts generally have
a higher cost rate. This is because they are constructed or made in the lean season. These
contracts are designed as per the requirements of the targeted customers and the un-utilized
capacity is generally ignored ( Haddadi and Khodadadpoor 2015). These contracts focus on
the prospective consumers and include other facilities with higher cost rates. These contracts
are somewhat risky since there lies a risk of weak responses for the specially designed tour
packages.
Both the contracts have their share of merits and demerits ( Baratynskiy and Pyshkin
2015). The fixed contract method includes higher rates of discounts, pre-decided rates of
profit while the sale only contracts targets on the customers and the reduction of the fund
wastage.

TRAVEL AND TOURISM 6
D. Plan out the cost of the different factors in the package and calculate the cost
required in your holiday tour.
The Serial Number The Details of the
package
The Price per
person
The Price per couple
1  Taxi fare to
airport
£ 30 £ 55
2  Airplane ticket
charges
£ 130 £ 240
3  Transportation
Local
 By Taxi
 By Bus
 By Coach
 Representative
Visit
£ 35
£ 10
£ 12
£ 100
£ 55
£ 19
£ 23
£ 143
4  Hotel Bookings £ 89 £ 160
5  Car rental for
sightseeing
£ 40 £ 75
6  Fun sports £ 25 £ 46
7  Heritage
property visit
tickets charges
£ 10 £ 15
8  Restaurants
Charges
£ 100 £ 180

TRAVEL AND TOURISM 7
 Total Cost £ 581 £ 1011
LO 3: Task 3
A. Analyze the procedure and decision planning for the itinerary and the proposed
brochure. Assess the alternative methods of communication and promotion for
different types of tour operator.
Brochures are generally used by the tourism and travel industries as a medium to
initiate communication with the clients or the customers about the tour packages (Oppewal,
Huybers and Crouch 2015). The brochure of the famous Thomas Cook can be taken. The
distribution of the brochure is generally done to covey the knowledge of the tour packages to
a maximum number of people and to make them aware of the attractive price ranges at a very
low cost. It is essential to go through the entire procedure of the planning, organizing and
implementing activities while going through the planning phase for designing the brochures
(Mowforth and Munt 2015). Some of the decisions in the process include issue identifications
that affect the planning of the decision making procedure, formatting of the brochure,
consideration of the budgets and target towards the market and time limits.
B. State and explain the non-traditional methods of allocation that can be utilized
for selling holiday packages for different categories of tour operator
There are numerous alternatives to the traditional brochures. The tour operator attracts
large numbers of customers and clients with varied new options. With the increasing
technological development, electronic vouchers seem to be one of the easiest ways to initiate
communication and attract new customers throughout the globe (Oppewal, Huybers and
Crouch 2015). An attractive and well-designed voucher will surely make the customers

TRAVEL AND TOURISM 8
curious about the tour offerings (Salim 2017). These new and modern alternatives to the
traditional voucher will surely attract newer customers to the business. Use of the online
methods for developing and designing brochures will help the tourism operator to reach a
large number of population and cove larger networks (Haddadi and Khodadadpoor 2015).
This will enhance more rate of revenues for the business. Besides these, electronic brochures
are cheap and fast for reaching to the large number of the population across the globe. The
visual images that are contained in the e-brochures are visually more appealing and tend to
have a clear and good impact on the understanding of the viewers (Ballantyne, Moutinho and
Rate 2018). Besides this, another alternative to the traditional brochure is the visual brochure
or the video brochure. These can be developed by the online methods and are easy to be
marketed by the marketing tools of the internet for further promotion. Besides this, video
brochure includes system facilities and visual images of the desired destinations. These are
very cheap and can be easily distributed and uploaded to social media channels for the easy
access of the people in the globe. Furthermore, these brochures initiate very fast promotions
throughout the world (Oppewal, Huybers and Crouch 2015). It is thus advised that final
brochures should be developed with the inclusion of all the relevant modern features and the
combined benefits of all the types of the brochures so that it gets attractive and easily
approachable for the customers worldwide.
LO 4: Task 4
A. Response of the various tour operators or competitors to the emerging trends.
Analysis of the proposed strategic decisions.
The Tour operators make numerous strategic decisions in their business. These
decisions are taken in their daily business routine and can be regarding development and
design of the brochures, the decision for price fixations, selection of the method of

TRAVEL AND TOURISM 9
distribution and customer segment identification. To run the business of travel and
tourism hassle-free, it is essential to have a quick decision making capability for the
production of better results and better image in the competitive business market. Some of
the key strategic decisions include Segmenting, Focusing, and Positioning, Discount
pricing strategy, Seasonal Aspects, Competitive pricing strategy, Strategies related to the
promotion (Huertas‐Garcia, Laguna García and Consolación 2014).
B. State the differences among tactical and strategic decisions, identify and note
some of the tactical decisions which could have been opted by your chosen tour
operator in different situations
The strategic and the tactical decisions differ in several ways. The strategic decisions are
the widescreen view and the tactical strategies are closer up views. The strategic decisions
help an organization to look outward; the primary purpose of the strategic decisions is to
provide helpful information to the users regarding the policies (Abrate and Viglia 2016).
Tactical strategies, on the other hand, investigate the current scenario and provide the
users only the information they require to carry out the existing policy initiatives.
Various tactical decisions are made in the business which includes negotiation with the
services, accommodation or lodging arrangements and other facilities. In the current
scenario, explore and regal drive can be taken as an example (Mowforth and Munt 2015).
These are the two main water games in the beach holiday tour packages. The total
mechanism of the decision making procedure can be explained by some of the following
steps:

TRAVEL AND TOURISM 10
Firstly, all the service providers are listed for the proposed services. Secondly, proposals
are sent to the service providers for the invitation of quotations. Thirdly, the most suitable
quotation is selected in accordance with the budgets that are pre defined. Finally, personal
meetings should be done with the service providers for the issues related to price stability
and service qualities (Huertas‐Garcia, Laguna García and Consolación 2014).
One of the major factors in the tactical decision making is the collection of feedback and
assessment of the experiences of the customers.

TRAVEL AND TOURISM 11
References
Abrate, G. and Viglia, G., 2016. Strategic and tactical price decisions in hotel revenue
management. Tourism Management, 55, pp.123-132.
Ballantyne, R., Moutinho, L., and Rate, S. 2018. Consumer behaviour in tourism. Strategic
Management in Tourism, CABI Tourism Texts, 73.
Baratynskiy, A. and Pyshkin, E., 2015, October. Traveler guide assistant: Introducing an
application for an openstreetmap based travel itinerary construction. In Proceedings of the
International Workshop on Applications in Information Technology (IWAIT-2015), The
University of Aizu. The University of Aizu Press (pp. 25-28).
Chen, Q., Xia, B., Jin, Z., Wu, P.,and Hu, Y. 2015. Choosing appropriate contract methods
for design-build projects. Journal of Management in Engineering, 32(1), 04015029.
Fotis, J. N. 2015. The Use of social media and its impacts on consumer behaviour: the
context of holiday travel (Doctoral dissertation, Bournemouth University).
Gretzel, U., Sigala, M., Xiang, Z., and Koo, C. 2015. Smart tourism: foundations and
developments. Electronic Markets, 25(3), 179-188.
Haddadi, M., and Khodadadpoor, M. 2015. The Role of Public Private Partnership Contracts
in Tourism Industry Development. Tehran: Journal of Academic Research in Economics and
Management Sciences, 4(1).
Han, H., and Hyun, S. S. 2015. Customer retention in the medical tourism industry: Impact of
quality, satisfaction, trust, and price reasonableness. Tourism Management, 46, pp.20-29.

TRAVEL AND TOURISM 12
Huertas‐Garcia, R., Laguna García, M., and Consolación, C. 2014. Conjoint analysis of
tourist choice of hotel attributes presented in travel agent brochures. International journal of
tourism research, 16(1), pp.65-75.
Mowforth, M., and Munt, I. 2015. Tourism and sustainability: Development, globalisation
and new tourism in the third world. Routledge.
Oppewal, H., Huybers, T., and Crouch, G. I. 2015. Tourist destination and experience choice:
A choice experimental analysis of decision sequence effects. Tourism Management, 48, pp.
467-476.
Salim, M. A. M. 2017. Enhancing destination image on tourism brochure of Barru Regency
Sulawesi Selatan, Indonesia: A tourism discourse perspective. Turizam: međunarodni
znanstveno-stručni časopis, 65(2), pp. 247-257.
Schuckert, M., Liu, X., and Law, R. 2015. Hospitality and tourism online reviews: Recent
trends and future directions. Journal of Travel & Tourism Marketing, 32(5), pp.608-621.
Sy, A. 2015. Trends and developments in African frontier bond markets. Brookings
Institution Global Views Policy Paper, 1.