Tour Operations Management: Trends and Developments at LCB Tours

This report provides a comprehensive analysis of tour operations management within the tourism industry, focusing on the operations of LCB Tours. It begins by defining and differentiating various types of tour operators, including inbound, outbound, domestic, and specialist operators, highlighting their roles and functions in the tourism ecosystem. The report then delves into the effects of current and recent trends and developments in the tourism sector, such as integration (both horizontal and vertical), technological advancements, and the impact of inflation on the industry. A significant portion of the report is dedicated to the analysis of LCB Tours, examining its approach as a specialist tour operator with a customer-centric focus, and how it adapts to the changing landscape of the tourism industry. The report also explores how the company leverages technological advancements like online booking and website updates to enhance customer experience. The report concludes by highlighting the importance of understanding these factors to make strategic decisions and sustain competitiveness in the market.

TOUR OPERATIONS MANAGEMENT
Effects of current and recent trends and developments:
Operating tours is the primary operation that is conducted in tourism industry of
which the most essential element is the tour operator. These are those business
organisations that merge tour destinations and tourism together in a package. This
package comprises of accommodation, sight-seeing, travelling, camping etc. These
are designed keeping in mind the choice of places that the tourist wants to visit.
Tourism is of two types namely: domestic and international. Domestic tourism is
concerned about the tours that take place within national boundary in which the
business organisation operates and includes tours that are conducted in the native
country only. On the other hand, international tourism comprises of tours that are
conducted worldwide.
Types of tour operators
On the basis of the processes conducted by tour operators, they are majorly
categorised into 4 types explained as below:-
• Inbound tour operators: These are those tour operators who conduct tours
for foreign tourists of the country. Inbound tour operators emphasize upon
rendering services to foreign tourists from their entry to the country to their
departure. Sometimes, they merge with foreign tour operators to design holiday
packages for foreign tourists. They provide guides for tours. Also they render
services like accommodation, hotels, entertainment, sight-seeing and travelling.
They play a crucial role in developing a valuable image of the country by providing
tourism services to international tourists and thus give an economic boost to the
nation.
Outbound tour operators: These operators conduct tours for the citizens of their
own country. They provide those packages that emphasize upon sending the people
of native country to foreign destinations. They form collaboration with inbound
tour operators of other countries to give information about the different aspects of
the foreign countries that an individual or group of tourists are visiting, like
accommodation, travelling, transport services etc. They market and sell the
packages that deals with the trips of sending own people to foreign country. They
function as a mediator for the operators of other international countries and the
resident tourists. They act as the intermediary between the operators of the foreign
country and the tourists.
• Domestic tour operators: These are those organisations that work within the
national boundaries of a country. They provide services only to those individuals or
group of tourists who belong to the native country and wish to explore the places
within the geographical borders of the nation. Majority of the tour operators across
the globe tend to focus upon international tourism due to the factor of profitability
attached with the foreign tourists and destinations. These tour operators, on the
other hand, are trying their best to encourage domestic tourism and to arouse the
interests of people of their nation in relation to exploring their own territory.

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TOUR OPERATIONS MANAGEMENT
Specialist tour operators: These are the tour operators that develop a tour package
for the customers on the basis of their choice of food, transportation, locations,
facilities, sight-seeing and accommodation features. They offer a wide range of
packages especially focussing upon the untouched travelling destinations. They are
also referred to as tailor made operators because of the option of customisation that
they offer to the tourists. Specialist tour operators possess the in depth knowledge
of specialities of the major travelling destinations across the globe. They make use
of this knowledge to design a package keeping in mind the special features of some
dream locations and the customer choice (Chand and Katou, 2012).
LCB Tours is a specialist tour operator having a customer centred approach. This
approach allows them to gain a competitive advantage as they have the option of
customising the holiday packages as per the preferences of the customers.
Recent trends and developments in Tourism Industry:
Over the years, there have been many changes in tourism industry. Some of the
changes that have taken place in LCB Tours are as follows:-
• Integration (Horizontal and Vertical): One of the major developments in
tourism business over past some years is integration. It is of two types: vertical and
horizontal. Vertical integration means the collaboration of associated business
organisations and service providers operating at different levels whereas horizontal
integration refers to merger of two companies operating in same business line in
order to overcome competition. By engaging in integration, the management of
LCB tours can gain a strategic advantage to sustain in market in the long run.
• Technological Advancements: Tourism industry has grown rapidly with
the aid of digital technology. Nowadays, features like booking over online portals,
applications and calls have promoted the development of this sector in the long
run. LCB tours also offer the option of booking through their site. Tourists can
easily reserve or cancel their packages via internet. Management of the company
has updated the brochures of their packages over the website to provide easy
access to customers.
• Impact of Inflation: The economic condition of a country largely affects
the growth and development of tourism industry. Inflation impacts the level of
disposable income of people. An increase in the disposable income of people leads
to better living standards and thus becomes an advantage for the industry to gain
interest of people in tourism.