Tour Operations Management Report: Lcb Tours Analysis, HND Unit 40

This report provides a comprehensive analysis of tour operations management, focusing on the Lcb Tours case study. It begins with an introduction to the tour operator industry and examines the effects of current trends and developments, including market research, planning, contracting, costing, and brochure design. The report then delves into the stages of holiday development, evaluating different methods of contracting, and calculating the selling price of a holiday package. Furthermore, it explores brochure design, assessing alternatives to traditional brochures and evaluating distribution methods. The report concludes by evaluating strategic and tactical decisions made by tour operators, providing valuable insights into effective tour operations management. The report covers various aspects like market research, planning and scheduling, contracting, costing, brochure creation, advertising and post tour management. The report also includes a calculation of the selling price of a holiday package, and discusses strategies for setting the right price. Finally, the report discusses different methods of contracting, like fixed contracts, allocation contracts, and the role of regulatory bodies like ABTA, FTO and AITO.

Tour Operations Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1. Analysing the effects of current and recent trends and developments on the tour operators
industry........................................................................................................................................3
TASK 2............................................................................................................................................4
2.1. Assessing the stages and timescales involved in developing holidays...............................4
2.2. Evaluating the suitability of different methods of contracting for different components of
the holiday...................................................................................................................................6
2.3. Calculation of Selling price of a holiday by Lcb tour company..........................................7
TASK 3............................................................................................................................................8
3.1. Evaluate the planning decisions taken for the design of a brochure of Lcb Tour operators.
.....................................................................................................................................................8
3.2. Assessing the suitability of alternatives to a traditional brochure for different types of tour
operator.......................................................................................................................................9
3.3. Evaluate the suitability of different methods of distribution used to sell a holiday for
different types of tour operator...................................................................................................9
TASK 4............................................................................................................................................9
4.1. Evaluate the strategic decisions made by different types of tour operator...........................9
4.2. Compare the tactical decisions that could be taken by lcb tour company..........................10

INTRODUCTION
Tourist is the fastest growing industry in the world and also contribute to the GDP of the
country's economy. The increasing spending power of customer helps the tour operators
company to develop different tourist packages according to the need and expectations of the
different target customers. The present report will include a leaflet which will the discuss effects
of current trend on tour operators with different type of operators. Further, a presentation has
prepared which will show discuss the stages involved in planning a holiday. The report than
discuss the planning decisions to design a brochures, with different alternatives that are suitable
than the traditional brochures. The present report will discuss different strategic and tactical
decisions by tour operators.
TASK 1
Enclosed in leaflet.
M1. detail research of a tour operator and its operations.
Thomas cook is an tour and travel company which is best known name in travel. The
operation, market share of Thomas Cook are as follows:

TASK 2
2.1. Assessing the stages and timescales involved in developing holidays.
The Lcb tour operator company has decided to plan a tour to Spain for 7 days. Following
are the stages involved in developing and preparing the holiday packages by Lcb tour operators.
 Market Research: For developing a holiday packages its import to survey about the
latest trend and customer preferences regarding the destination and types of holiday
packages. Market research may involve both qualitative as well as quantitate market
research project (Giaoutzi, 2017). A proper analysis have been made before planning to
create a holiday package, identifying the target market and the travellers. Proper analysis
for the partners in the destination. The time period should be considered which can be
suitable for the tourist. .
 Planning and scheduling: after making a market research for the tour packages planning
and scheduling for the packages need to be start. According to the current trend and
customer preferences, the kind of packages will be determine which can be cost effective
also. Accommodation for the tourist has to planned according to the type of the package.
The capacity of tourist need to determine before booking the hotels. The proper and
suitable time period for holiday has to planned, like summer or winter time period.
 Contracting: before preparing the packages, negotiation as to be done for the supplier,
like local agents, tour guides, transport facilities for tourist in Spain should be evaluated.
 Costing the holiday: It is very important stage of developing a tour packages. Price of
the package should be determine as according to competitor's price strategy (Theobald,
2012). The cost of package should also be determine according to different factors which
includes all the fixed cost like hotels, marketing licenses, cost of air plane etc. after
covering a fixed cost variable cost should be determine, a mark up percentage for the
profit margin should be determine.
 Creating the brochure: In this stage, the tour operators make s a brochure, the first step
in making a brochure should be writing the textual part which would include all the

details with the attached with the text. A brochure should be rich and colourful with the
pictures of the local that would attract the tourist to the packages.
 Advertising: In stage the tour operators will start promoting and advertising the tour
packages through social media, websites, newspaper, advertising on TV and through
television advertising.
Post tour management: It refers to organising the tours by managing, organising and
accompany different groups of holidaymakers to the variety of locations (Mowforth and Munt,
2015. tour management is to be ensuring about all the arrangements to rum smoothly and
efficiently. A tour manager will do all the task to manage and organise all the arrangements.
2.2. Evaluating the suitability of different methods of contracting for different components of
the holiday.
There are different methods of contracting adopted by the tour operators. The contracting
refers to the dealing and enters into the agreements. It is the deal done for the agreed value for
the product and service. There are different methods of contracting adopted by the manager of
Lcb tour operators:
Fixed Contract: it refers to the deal done on the high consumption basis. Fixed contracting has
the fixed package provided by the operators (Inversini and Masiero, 2014). The prices are fixed
between the operators and suppliers in the destination and the distributors involves. In fixed
contract there can not be any change in agreement neither by operators nor by tourist or
suppliers.
Allocation Contract: It refers to situation arises in the tour and the responsibility of the
operators to handle it. Whether the availability of rooms in hotels or risk associated with the
activity planned during the trip. The operators are responsible for such allocations.
The different type of tour operations regulators which should be considered by Lcb tours
company are:
Association of British Travel Agents:
It is UK's chief trade association for the tour operators and travel agents. ABTA members
are responsible for the maximum sale of UK holidays. The main functions of ABTA includes
raising standard of tourism industry by providing them guidance. Provision different schemes of

protecting their finance. The ABTA regulated travel agents and tour operators comply with rules
that designed to protect the money of a company.
Federation of Tour operators:
This associations works to ensure the continued long term success of the air inclusive
holiday by influencing government and opinion formers on the benefits to consumers and other
stakeholders of all inclusive holidays arrangements (Swanson and Edgell Sr, 2013). They have
provided effective financial protection to customers, work to promote holidaymakers' interest the
government, hotels, airport authorities and others who have a part to play in ensuring high
standards of customer satisfaction environmentally sustainable tourism.
Association of Independent Tour Operators:
AITO is a British based travel industry trade group that represents around 120 specialist
and independent tour operators. The members of AITO operates in over more than 170 countries,
including in UK. They planned different holiday packages that involves different range of
activities includes adventures, city break , culture etc. it ensures that every packages sold by the
members of AITO have full protection of . All the members of AITO promotes an ethical and
sustainable approach to travel.
2.3. Calculation of Selling price of a holiday by Lcb tour company.
The selling cost of holiday by Lcb tour company of 7 days tour to Spain has been
calculated as follows:
Particular Price( in pound)
Hotel charges (200x7days)1400
Transportation cost 300
Activity cost( per head) 200
Food and beverages cost (per head) 100
Guide cost 100

Total cost 2100
Add 20% profit margin 420
Selling cost of a holiday package. 2520
Interpretation:
Hotel charges and transportation charges are fixed cost. While food and beverages,
activity and guide coat are variable. As per the mark-up pricing strategy, the selling cost of
package will be 2520 pound.
M3. Applying strategies to find appropriate solution for setting right price for package.
The different strategies in order to find the appropriate solution for setting right price is
as follows:
 through identifies the operating cost of the tour package such as fixed cost and variable
cost.
 By identifying the break even point which will assist in getting the idea for the revenue
which company required to earn in order to cover its operational cost.
 Appropriate profit strategy has to be prepared which helps in deciding the profit margin
through cost plus pricing method.
 To analyse the price strategy of competitors which is important to identify the profit
margin.
 Apply different pricing strategy like seasonal pricing, daily pricing, discounts etc.
 After determining the right strategy, effectively applying these strategy in order to get
right price for the package.
TASK 3
3.1. Evaluate the planning decisions taken for the design of a brochure of Lcb Tour operators.
Brochures area great way for the tour operators to promoter the tour packages. Weather
the operators are trying to sell or want to inform the target customer about the new packages.

Many times customer can not comes to the objectives of the brochures, just the design and good
pictures are not enough to communicate your ides to the customers (Morrison, 2013). There are
many stages involved and planning has to be done in process of making or designing a
brochures. Following are analysis that has yo be done to maker a great brochure.
The planning decisions taken for the design of a brochure are :
Determining the purpose: The fist step is to identify the brochures objectives. It will help in
determining all the other marketing plan and design of the brochures. The objectives is to inform
the interests customer who wants to go on a tour to Spain (Brochure Design Planning , 2018).
The target market to distribute the and the way by which which it will be distributed will be
determine. It will help in designing step of the brochure.
Designing a brochures: After knowing the objective of the brochures, the next step is to design
a brochures. It is the most important step as it will help in attracting more and more customers. In
the designing procedures there are various factors that should be planned, size of the brochures,
colour decisions that will look attractive. Etc.
Folds in brochures: This is one of the most distinguished features of a brochures is its folds
number. Deciding a right folder number is one of the main task, the folds should be accurate that
can complete the content that should be required. There many type of brochures folds available,
each with their unique features and best applications.
Review the copy: Only content is not sufficient, the way it is presented to the reader is also very
important (Reason, 2016). As a rule concise ruler is a must for brochures marketings it is
important review the copy of the brochures that will help in relates hoe the brochures is look like.
Too much content will not be enticing to read.
Choosing correct fonts: It will be kept in mind that the fonts are being selected for the
brochures . It will determine the readability of the text, and also effect it visual appeal.
Use HD photographs: For effective brochures design using quality images is very important.
selecting best photos that will give a visual picture of the tour packages, the destination, activity
will look attracting.

3.2. Assessing the suitability of alternatives to a traditional brochure for different types of tour
operator.
A brochures is used too market and advertise the tour packages by tour operators. It
helps in identify of any businesses. With the development of the technology the tour operators
are rapidly changing their medium from traditional brochures to the new alternatives. To
maintain the trend and technology users. The suitability of different alternatives to the traditional
brochures are as follows:
E-brochure: E-brochures are designed by marketing and advertising experts. An expert graphic
designer is usually hired by companies to design attractive and suggestive brochures according to
the business (Mowforth, and Munt, 2015). It is flexible and and are time effective tool. E-
brochures reduce printing cost to a great extent and cuts marketing expenses.
 Internet : Promoting brochures on websites and different sites will be more beneficial than
using traditional brochures. It is cost effecting and helps in promoting more than the
traditional method.
 Social Media: Social media is a great tool to distribute the brochures. Trough Facebook,
twitter, Instagram the company can promote and advertise their brochures which will reach to
more customer than the traditional brochures.
3.3. Evaluate the suitability of different methods of distribution used to sell a holiday for
different types of tour operator.
There are different method of distribution that can be adopted in order to sell the tour
packages to customers. Such method is effective in order to inform the interested customer
regarding the packages which will assist to enhance the sells of the Lcb tour operator's package.
Different method of distribution are:
Direct mail: It is effective way through which company can directly get in touch with
customers. The tour operators can target a particular group. It help to target large number of
customers for selling the tour packages. It is a cost effective method buy dropping a mail to
existing customers or to attract an entirely new customer group.
Newspaper and publication: it is traditional method yet efficient to distribute the packages via
magazines, newspaper etc. as it has effective circulation rate it can be good method of
distribution.

Display Premises and Public places: one of the most effective method of distributing packages
is to display it at various places, such as in business premises, hotel reception, public areas and
other places where potential customer get to know regarding tour package.
TASK 4
4.1. Evaluate the strategic decisions made by different types of tour operator.
The different strategic decisions made by tour operators:
Pricing strategies: Being a tour operators making appropriate strategy of the cost of the
package, its important to concern about the expenditure that they will incur in the travelling. It is
important for the tour operators should make effective proving with the help of different pricing
methods with mark down- mark up pricing strategy by identifying all of the cost associated to the
tour.
Surcharge policy: It is the additional amount which had been charged by the tour operators (De
Bruijn and Ten Heuvelhof, 2018). It it included in the price in such a way that tourist will have
any objection on it, it is like an extra amount paid by customer. So by using proper guidelines
and techniques this problem is sorted.
Positioning and image branding: Brand is the intangible asset that helps the business to earn
profit so it is very important to maintain that image. Affecting strategies should be made to
enhance the image by promoting the packages through various medians. Even customer
satisfaction plays a key role in the development of brand.
Choice of product as per customer portfolio: Promotion is an effective way to attract the
customers. Decisions regarding the destination and packages in an effective and presented
manner (Azimi,, AbouRizk, and Alvanchi, 2011). Photographs be presented to customers as per
there taste and interest. Customer preferences and their demands with the current trend.
Distribution Decision: Tour operators should make effective strategies to utilizes the
distribution channels to promote and sell their tour packages. Some distribution channels for tour
operators, visitors information centres, different websites, different sites, online travel agencies,
distributing brochures to the hotels etc.

4.2. Compare the tactical decisions that could be taken by lcb tour company.
These are the medium term decisions. Whereas a strategy can be taken the operation in
either way. The wrong direction can take the packages can leads to failure. A misguided tactic
would have a more limited impact. Strategies are usually in place for a long period of time.
There are various tactic decisions that a tour operators has to taken to manage their day to day
operations. Such as arrangements of the accommodation, food and other facilities, negotiations
with service provider etc.
Tactical pricing:
Pricing has different level of implication. Long term pricing decisions will be related
making long-term profit objectives of the organisation (Fellows and Liu, 2015). The short-term
is tactical pricing which adjust pricing which can impact the short-term market condition like
demands shifts and competition. The tactic pricing strategy will involves cutting of cost or
promoting sales strategies to increase the sales and gain new customer in short term
Tactical marketing:
Tactical marketing focuses on the details of operations to achieve that goals. The tactical
marketing strategies that will involves the detail profiles of the customers (KhairatP0F and
Maher, 2012). Once the target customer is identified a right advertising media and determine
which marketing channel is more effective. Tactical marketing often involves generating leads,
building websites, placing ads, and following up.
CONCLUSION
By summing up the above report, it can be concluded that travel and tourism sector plans
a significant role in contributing to the country's economy. The present report has discussed the
effect of changing trends on the different type of tour operators, with the help of leaflet. the
report than concluded different stages of developing a tour packages. The present report than
discuss the planning and designing of brochures. Different promoting distribution channels are
also discussed. Further, different strategic and tactical decisions are concluded that tour operators
have to be made in different situations.

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