Tour Operations Management: Industry Trends, Holiday Creation

This report provides a comprehensive analysis of tour operations management within the travel and tourism sector. It examines the effects of current trends and developments on the tour operator industry, including the increasing disposable income, advanced technologies, globalization, customization, and marketing techniques. The report assesses the stages involved in creating holidays, from destination research and itinerary development to negotiation, pricing, marketing, and execution, and evaluates different contracting methods for holiday components. It also reviews brochure design and distribution methods, comparing strategic and tactical decisions made by various tour operators. The aim is to provide insights into the complexities and dynamics of the tour operations industry, highlighting key factors that influence its growth and success. Desklib provides access to this and other solved assignments for students.

TOUR OPERATIONS MANAGEMENT

Table of Contents
Introduction......................................................................................................................................3
LO1 Understand the tour operators industry within the travel and tourism sector.........................3
P 1.1 Analyse the effects of current and recent trends and developments on the tour operators
industry............................................................................................................................................3
LO2 Understand stages involved in creating holidays:...................................................................5
P 2.1 Assess the stages and timescales involved in developing holidays........................................5
P 2.2 Evaluate the suitability of different methods of contracting for different components of the
holiday and different types of tour operator....................................................................................7
LO3 Be able to review brochures and methods of distribution used to sell holidays.....................8
P 3.1 Evaluate the planning decisions taken for the design of a selected brochure........................8
P 3.2 Assess the suitability of alternatives to a traditional brochure for different types of tour
operator............................................................................................................................................9
P 3.3 Evaluate the suitability of different methods of distribution used to sell a holiday for
different types of tour operator......................................................................................................10
LO4 Understand strategic and tactical decision making for tour operators..................................11
P 4.1 evaluate the strategic decisions made by different types of tour operator...........................11
P 4.2 Compare the tactical decisions that could be taken by a selected tour operator in different
situations........................................................................................................................................12
Conclusion.....................................................................................................................................12
References:....................................................................................................................................14

Introduction
As the title of the assignment is reflecting to the facts of tour operators and matters related to it.
It is better to say that this assignment has helped the students to investigate the industry of tour
operators in the sector of travel and tourism. Thus, the overall assignment has been divided in
four different parts. Each of the parts has included the scenario of tour operator industry, holiday
stages, various components of holidays and so on. Therefore, it can be said that the overall study
is all about the discussion of tourism industry. Other than that, it is necessary for the tour
operators as it has included the discussion regarding the planning and decision making too. It
would help the tour operators to become more beneficial in future.
LO1 Understand the tour operators industry within the travel and tourism sector
This part is all about to discuss the overall industry of tour operators. Other than that, it has
included the factor of overall tourism sector too. It has shed light on the recent trends as well as
development of the tour operator industry too.
P 1.1 Analyse the effects of current and recent trends and developments on the tour
operators industry.
According to (Celi, 2017), tourist guide have covered both the journey or tour as well as tour
industry. For executing the holidays. The entire tour operator sector is growing continuously by
in retail sector while the demands of their products are enhancing continuously. Thus, the tour
packages as well as the services which are related items to the tours should be considered here as
the products in this industry. However, the current developments as well as trends have been
discussed as follows:
Increasing the disposable earning in economy: The economy of the country influences the
growth of each industry. The disposable income of each individual is the portion of the savings
income after the money has been spent. An increase in disposable income leads to an increase in
living standards of the population. The travel industry develops jobs and also increases their
income. In short, it affects the country's GDP.
Advanced technologies: The tourism sector is growing continuously through the technological
development. All the transactions should be performed by using the new technology. The

digitization in this sector enhances the quality as well as the extent of such activities of the tour,
and gradually it has become both the cost as well as time affective too.
Influence of FDI and Globalization: Globalization has removed the borders of the countries. It
can influence the travel industry by making the scope larger of industry around the world.
Foreign Direct Investment has contributed for theimprovement of countries' access to the foreign
market (Celi, 2017). It generates capital in the country and increases the ability to increase tour
operators with the support.
Customisation in products:The industry offers the possibility of customization in your product,
in which tourist and tourist packages are developed taking into account the requirements. It helps
the sector to become more accessible for the customers. Holiday packages have been offered in
different variants and by including various functions (Holland and Leslie, 2017).Additionally, it
can be customized in accordance to the wishes of the customers. Therefore, a new tendency for
the flexibility can also be found there.
Techniques of marketing:Marketing is the source and technology to inform customers about the
industry and the products. Tourism firms use marketing as their tool for increasing the size as
well as the demands for the products of the industry. The constant developing trends in this
industry offer discounts as well as the points on the holiday packages. Cooperation with different
industries aims for feeding and sensitizing customers to these industries used by the travel
industry. Even spending the governments of the countries to increase the number of tourists by
appointing ambassadors to advertise the travel industry.
Customer satisfaction level:It is well known that satisfied customers are the way to make an
effective position in the market. It should be mentioned as the benchmark for measuring the
growth of the industry as it increases the needs of the products in market fix up the loyalty of the
customers towards the company. The tourism sector has a high level of customer satisfaction.
The variations in products is the main reason of this level of success.
Different institutes of management education: The tourism industry is growing by effective
management and efficient people who provide management training through various
management institutions. These settings help improve driver performance in this industry.

Transportation costs:Transport plays a vital role in this travel industry. It should be remembered
that product the cost can be influenced by the transport costs. Low cost transport increases
demand for the products. Airline offers cheap travel arrangements. Transport costs depend on the
cost of fuel and the different types of taxes and fees.
Influence of the PESTEL factors:The growth of any industry is related to the PESTEL factor.
PESTEL is defined as political, environmental, social, technological, economic and legal factors
(Holland and Leslie, 2017). It is an analysis for effective decision making that helps expand the
industry and create security. All of these factors have a positive or negative effect on the travel
industry. The political aspect determines the safety of tourists in the country and must be
positive. The economy of the country determines the level of disposable income of the customers
and their expenses. The legal aspect determines the need to follow the rules and regulations of
the country.
Competition: The ease of access as well as exit helps for the enhancement of competition in this
travel industry. This improved competition also enhance the employment too and a balance
between the supply and demand. The increase in competition offers opportunities for comparison
and selects the most suitable option. Thus, we can say that the new trends as well as development
in this industry have a positive effect upon the industry of tourist guide. These current trends
have provided a foremost position globally. The sector also establishes promising and strong
relationships between the nations through the understanding as well as exchange of cultures.
LO2 Understand stages involved in creating holidays:
P 2.1 Assess the stages and timescales involved in developing holidays
The holiday should be uprooted for a greater pleasure. Prearrangement is being considered as the
preliminaryprocedure of such process, which can create a general framework of the activities as
well as it, helps for making the most appropriate decisions during the analysis of available
options. During holiday development, several factors as well as the stages are needed for
increasing thesafety andefficiency. These phases ensure the effectiveness of holidays in
development.
Researches should be made on destinations:The first phase of the holiday development is for
exploring the target location to explore and travel. The target locations are choosing based on the

question of individuality. Various kinds of studies are performed to explore the purpose of a
collection such as the PESTEL analysis. The investigation process can be completed within two
or three months.
Developments in tour journey is needed:After choosing proper target locations in accordance to
the choices of the tourists,the itinerary should be developed and it is being considered as the next
phase of the program. It is a combined form of the travel program that includes all destinations,
transportation, accommodation, routes and places to visit. It should be considered as a systematic
process that helps in the completion of vacation without facing any issue.It needs two months of
time to be completed.
Negotiation: Large numbers of suppliers are working there with each of the tour operators. The
tour operators can negotiate with the suppliers as well. It would ultimately help them to control
the tariffs in the packages. The main aim of group tours are to adapt or to allow more number of
negotiate approaches air travel,accommodation prices and transportation. The antiquity of tourist
guides helps them to get maximum concession from providers or supplier. This period can be
finished within the months of four.
Determining the prices: This step is all about to prioritize various packages taking into account
the entire components. Some factors are there those mainly affect the prices of the packages and
they are fuel costs,exchange rates and the tax framework of a country. The prices should be fixed
at least ten months prior the actual date of the holiday. Various holiday packages are there with
different rates for meeting the needs of every customer. Two different types or methods are there
for the price package travel, cost-oriented and market-oriented (Bag et al, 2017). The prices last
no more than 1 month after the conclusion of the negotiation process.
Marketing of these packages: Marketing seems to be the most important for any sector to
maximize customers’ awareness about the industry's products as well as services. It helps to
maximize the demands for the products as well as increase the level of profitability in the
industry. Marketing needs to develop a marketing plan for tourism.Creation of brochures that
contain all the important information about the tour operator is really helpful here. This phase is
completed in four or five months.

Tour execution: This is the final phase of the tourist guide procedure. All arrangement and
estimates become reality. The efficiency of the trip makes it victorious. The entire planning of
marketing procedure is under way and most tourist operators have a strategy to control and
monitor all actions in the procedure. The sluggish process is basically defined the hour in the
route.
P 2.2 Evaluate the suitability of different methods of contracting for different components
of the holiday and different types of tour operator
In the current context, tourist arranger blueprints the packages taking into account two methods
and various characteristic, which form a firmed contract and a purely sales contract. Various
kinds of tourist guide, such as airline and airline operators, use this type of contract. Tourist
guide conclude agreement with their suppliers and by considering, suppliers are following these
two contracts and selecting the most favorable for each operator.
Fixed contract: In the contract-only sales method, prices are high compared with fixed
agreement. These all are seasonal agreements and are executed in the light of the demands of the
consumers and the market potential. The risk attribute is lower in these types of agreement as
there is no accountability for tourist arranger. In this agreement, no margin is for large
concession.
When both kinds of agreements are analyzed, it can be say that high threat produce high
performance. Fixed contracts are at high threat and offer high concession and advantages, and in
the case of exclusive sales agreements, there is no threat that generates high cost.
P 2.3 Calculate the selling price of a holiday from given information.
In the mentioned research, the students of Chinese plan their journey of London, the UK to
France, Paris,. The travel cost is evaluated per couple and per person. The agency of travel has
its system in France that makes negotiations and low percentage possible. The group is about the
number of 15 students and the trip is about maximum days of five. Michelle Hotel offers a
notable rate, the double room delivered at 60 Euros and an extra 10 Euros per head / night
(Holland and Leslie, 2017). The evaluation for different prices is made in the following way .
Calculating the accommodation costs:The double room is delivered at 60 Euro. This kinds of
rooms are for two adult and an extra 10 Euros per head / night. Then students of 10 can use

double rooms, and the rest of 5 can be badly adapted in every room. Then the total price for
nights of four is 4 * (60 * 5 + 10 * 5) = 1400 euros will be (1400 * 0.78) = 1092 pounds.
Calculating the transportation costs: Approximately 1000 British pound should be charged for
the 20 seater luxury coaches (Holland and Leslie, 2017). It includes the charges of two drivers
and the fuel costs also.
Details Pricing
Cost of accommodation 1093
Cost for the transports 1001
Charges taken by the tour guides 202
Overall cost 2293
Profit margin 292.10
Selling prices 2522.15
LO3 Be able to review brochures and methods of distribution used to sell holidays
In travel and tourism industry, it is necessary to notify tourist about services and the products of
the industry. The brochure contained full and relevant information to develop the requirement. A
low cost marketing technique or method reaches its reach. The brochures can be handed over
offline or online. Digitization and advanced technology increase the size of brochures.
P 3.1 Evaluate the planning decisions taken for the design of a selected brochure
Identifying the issues thus the brochures can be developed: The problem must be identified
before the brochure has been developed. The points to be market are the market division, the
choice of destination market, the format of travel documents or brochure, the notification to be
analyzed and the deadline for publication of the brochure (Bag et al, 2017). Strategic decisions
must be made by analyzing and comparing all available options.
Brochure’s format: The brochure or travel document is the systematic information document.
The brochure is divided into many updated notification section making it more interesting and
understandable. The brochure design must be blueprinted according to the destination market.
The notification format describes below:

Tour company name
Description of the travel and the schedule
Accommodation as well as meal
Pricing of the packages
Other charges and the terms and conditions
Legal requirements
Budget development and target market setting: Before publishing the brochure, the cost and
destination market must be described. Market division is done by analyzing the requirement of
various customers and selecting the most suitable destination market for the tour operator
company. The cost can be described as the purchasing customer’s power, which is the important
attribute in choosing services and products in the industry. Target customer can be recognized by
analyzing the cost allocation.
Time scale: The tour documents must be produced within the suggested time limit, as it is very
important document for commercialization of the travel and tourism sector. It is part of the
process planning, which is a preplanning theory of proper decision-making. Entire phase in the
compilation of the tour documents are described as maximum periods and must be finished
within these limits.
P 3.2 Assess the suitability of alternatives to a traditional brochure for different types of
tour operator
Traditional printed tour documents are a elegant approach to marketing the travel business.
These printed tour documents include all the important notification, but they are not appropriate
at attracting consumers and increasing the requirement for holiday services and products.
Emerging digitization technique and advanced technologies improved various alternatives to
traditional tour documents (Holland and Leslie, 2017). These options are appropriate and
effective to fill the shortcomings or gaps of traditional tour documents. The different options are
the following.
E-brochure

Direct Sales
Visual brochures
Retailers and travel agents
Social media
Call centers
Websites
Electronic brochures are online brochures. This is a better option to the physical tour documents
that is within reach and the price of creating these tour documents is less in differentiation to
physical tour documents. Visual and audiovisual tour documents are appropriate methods to
attract consumers and develop the productivity and demand of the travel sector. This way to
inform the consumer when viewing the videos and images of the tourist destination develops the
interest of customers to purchase the holiday package offer. Social networks are the most usefull
platform to inform customers of the sectors and its service, products (Ettlie and Sanders, 2017).
Different websites are created to deliver information to the customers about the information
provided. This is a more cost-effective method to develop accessibility for consumers. Call
centers are classic methods for obtaining updated notification about the travel company and its
service, products. Retailers and travel agents, as intermediaries, play a vital role in managing
supply and requirement in the travel and tourism sectors of service and products. Direct sales can
be defined as face-to-face communication with consumers.
If a new brochure plans adventurous trips, the most convenient alternative to the brochure is the
electronic brochure, the audiovisual brochure and the tour operator's website, including all
information about the holiday package, containing pictures and traditional video clips of live
adventures. On your social networks and other websites, such as YouTube (Ettlie and Sanders,
2017).
P 3.3 Evaluate the suitability of different methods of distribution used to sell a holiday for
different types of tour operator
Each industry expands and diversifies its distribution channel to balance supply and demand.
Creating a physical brochure is a traditional way of raising customer awareness. Changing trends

and technologies will also develop sales and distribution methods. There are other sources, such
as call centers, social networks, electronic tour documents, online marketing websites, direct
sales, travel agencies etc. It is the usefull tool for increasing the advantages of the travel and
tourism sectors. These tools are profitable and effective in terms of time and have different
characteristics, advantages and disadvantages (Lin et al, 2017). The operators of tour select the
most appropriate source by analyzing the different options and their influencing factors on the
objects of the organization. When choosing these sales and distribution tools, a strategic decision
must be taken, as it has an impact of long-term on the development of the tour arranger.
In this research, the tour aranger plans to publish the adventure holiday tour documents. In this
condition, the sale of the adventure package of holiday will be best suited to the sales channel,
electronic brochures, live audiovisual advertising, adventure, social networking platform, travel
agents and retailers. By using these sales sources, the demand for adventure vacation packages
from tour operators can be increased.
LO4 Understand strategic and tactical decision making for tour operators
P 4.1 evaluate the strategic decisions made by different types of tour operator
Strategic decisions are an important factor in achieving goals effectively through increasing
business safety. Companies accept strategic management to increase productivity and manage
further changes. In the procedure of making preplanning decisions, decisions are made by
analyzing all available alternatives and selecting the most appropriate for the organization's
assets (Mwesiumo et al, 2017). Strategic and calculated decision helps to make appropriate
decisions in any travel organization. Below are the most important calculated decisions taken by
tour operators to run the business.
Forecasting the demands:The prediction of the question is the initial strategic decision of the
tour manager. This is a innovative approach where an analysis is made to calculate the future
needs of travel subject service and products. Entire decisions are taking into account the future
question; it delivers security in the trades and fills the space between supply and demand.
Segmenting the market along with the positioning and targeting:The clients are structured
according to the needs and needs of the customer. The packages are designed according to the
requirements of the customers. Tour operators select and target customers through the analysis of

all segments, taking into account factors such as the budget, what the customer's ability to go out
and other factors.
Discount: The travel industry plays an important part in the travel industry. The amount of the
concession helps to control the cost of the package. The various kind of agreement determines
the basis of the discount. Fixed agreement generates huge concessions and contracts that only
apply to sales because low concessions. These ultimate decisions are vital for prices and
maximum productivity.
P 4.2 Compare the tactical decisions that could be taken by a selected tour operator in
different situations
Strategic decisions are vital for the useful execution of activities in each organization. These
decisions draw the attention on short-term challenges and serve to connect daily needs
(Mwesiumo et al, 2017). Strategic decisions are made by selecting different service delivers.
Food, transportation, accommodation, and other services are included in these choices. In the
travel sector, strategic decisions also include maintaining relationships with employees or staffs
stakeholders who provide financial resources in the industry. Economic incline and decline also
affect the strategic decisions of tourist operators. The cash flow and the level of disposable
income of the clients influence positively or negatively on tactical decisions.
Exchange percentage is the basis of international business. In the tourism operator sector, it is
necessary to business of foreign currency so that the effects of fluctuations in the exchange
percentage affect the decisions of these sectors. Environmental problems affect the strategic
decisions of the industry of tour operator.
Conclusion
The report made a thorough investigation of the travel industry possible. The different
characteristics and factors that influence these sectors were analyzed in the research. Readers
have learned from the latest trends and improvement in the travel and tourism industry that affect
the development of the travel sectors. The report is an analytical study of the various aspects of
the various tour operators. The tasks given help to determine the role of the travel and tourism
sectors in the market. The packages of holiday are known as products in this service sectors and
we need the platforms and time to complete each phase of this study. It also analyzes various