Tour Operations Management: Current Trends, Strategies and Analysis

This report provides a comprehensive analysis of tour operations management, focusing on current trends and developments within the travel industry. It examines the strategies employed by companies like Trail Finders and Kuoni, evaluating their approaches to holiday planning, contract types, and pricing strategies. The report delves into the stages and timescales involved in developing holidays, including research, road mapping, cost estimation, and collaboration with hotels. It explores different contracting methods, such as fixed and sales-only contracts, and categorizes various types of tour operators. The calculation of selling prices, including fixed, variable, and semi-variable costs, is also detailed. Furthermore, the report reviews the significance of brochures and methods of distribution, comparing traditional and modern approaches, and evaluating planning decisions for brochure design. Overall, the report offers insights into the operational aspects of tour management, providing a valuable resource for understanding industry practices and strategic decision-making.

TOUR OPERATIONS
MANAGEMENT

INTRODUCTION
A person wants to experience all the places of country to make life memorable and gain
more experience. It is rightly said that tourism industry doing well in making the travelling
experience joyful for target audience(B. DiPietro, Cao and Partlow, 2013). Further, it has been
seen that travel and tour sector developed in a vast manner and main reason behind it is the
introduction of advanced technology. Under this project two company preferred I.e. Trail Finders
and Kuoni both work in travel and tourism sector operate their business and consider fast
growing company in term of market share and productivity. Company comes with attractive
offers to their customers and compete with competitors. This project discusses about the current
and recent trends on travel industry, selling cost incurred in entire holiday plan from assessment,
different methods of distribution and other strategic decision which have a positive negative
impact on business. Hence, whole report initiate for the use of modern techniques and tactics and
compare with previous procedures in order to frame appropriate strategic policies for company.
TASK 1
1.1 Current and recent trends and development on tour and travel industry [Leaflet]
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TASK 2
2.1 Stages and timescales for developing holidays
If a customer is contacting tour agent then it is important to satisfy him so that it proves
helpful for enhancing business. To satisfy any consumer it is important that management of
company has to analyse the need of consumer and afterwards check all alternative available,
most suitable must be adopted. This increases the faith of consumer in agent. Trail finder have
to plan a luxury coach and educational journey for adult students. In this case company focus on
providing services as per adults generation. Journey starts from London to Brussels and Brugge,
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Belgium in summer vacations of July 2019. Strength of visitors is 42 for 5 nights and 6 days.
Trail finder performs following steps in this regard (Baddeley and Font, 2011).
Research- This is most important task with which working of tour business start after listening
customer's demand. It is important that company to analyse the sources which might required by
students. It makes easy for company to execute their further workings. There are many resources
available in market but company has to choice best among them. In research, Trail finder need
15 days through which they analyse market.
Development of road map- After analysing market, its time to plan what has to be done and
when it gives chances to remove hurdle which might affect the operations. It is important to
know what things is required at what place and then make available it accordingly. This step
minimises the chances of miss happening. After research planning is done in 2 days.
Cost estimation- Company has to estimate cost as it is main aspect among which consumer and
company. From this it came to know that services required by consumer can be fulfilled in
budgeted fund or not. It is important that company has to take care of their profit margin as well.
Sometimes to make consumer satisfied, tour agent has to negotiate with dealers (Bonilla Priego,
Najera and Font, 2011). This is important task which will be done in 1 days.
Collaboration with hotel Industry and budget estimation- Tour and travel company have
collaboration with hotel also. As the scope of roaming increase, there is requirement to contract
with hotel as per location. People who want to travel world has different budget criteria so it
important to match up with it, for this dealer has to contract with hotel as per need and budget.
Contacting to different hotels need more time i.e. 10 days as in this Trail Finder has to search
hotel with best features and effective cost.
Delivering responsibility- There are combination of various activities required in touring
business. It is important to deliver duties and responsibilities to different departments. This
makes systematic working in organisation and there is proper flow of activities. There must to
delivery of responsibility to individuals who perform activities with full energy. In case of
change in plan then concern department leader have to be updated. There is requirement of
providing authority with responsibility. Deliver of duties and responsibilities will take 1 day.
Execution- This is the stage when students are visiting their destination. It is possible when all
the above mentioned activities are properly held. It is important that company has to regularly
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check whether things are happening in proper direction or not. This is main action time, duration
of tour i.e. 7 days.
It is important to take feedback from the students so that Trail finder ge5t on know about
what flaws are there. It is important to make customer feel important that company is concern. In
case of negative feedback corrective measures are taken.
2.2 Different methods of contracting for holidays and types of tour operator
There are different contracts available with tour and travel business. There are
modification in services as per need of consumer demand. There is alteration in requirement as
per change in culture of customer and demographical change. There are various issues faced by
organisation in completing the requirement of buyer (Boyle, Scherrer-Rathje and Stuart, 2011).
This report tells about different ways to sell tour packages. This is important that there are
change in strategies farmed by management and analytical comparison is done. In current
scenario, it is important to talk with different service provider to negotiate with them and provide
services at best price. Trail-finders deals in two types of contracts. They are-
Fixed contract- This contract works with fix rate. They are rigid in nature and there is very less
chances of making change in services (Brent Ritchie, Wing Sun Tung and JB Ritchie, 2011). It is
beneficial for consumer who want same kind of services frequently. This provides satisfaction to
consumer who does not want much modifications and satisfied with what they are getting.
Quality of services provided under this contract are best and this is beneficial from company
point of view also as there is higher profits. Trail finder, Thomas Cook use this approach, as
they organise trips for big groups. For big teams this contract is beneficial and cost effective for
consumer as well company.
Sales only contract- This is the contract in which customer want services as per requirement.
There are less customer who cover under this contract. Trail finder does not favour this contract
as there is provision of less profit and there are chances that consumer does not get satisfied.
There is requirement of high budget. Air tours plans trips for small people such as family trips
and for short durations. So there are chances that they have to plan actions according to customer
need.
Types of tour operators are-
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 Outbound operators- They provide services to local residing people for foreign trip. This
makes company easy to know culture of consumer and hence they feel familiar to deal
with them. Direct sell operator- These operators sell their services to agents. These operators can
sell its plans to public also in case they provide more profit. This selling of offers to
consumer is economical in consumer respect Specialist operator- These operators provide services in some special features. They are
specialised in servicing to particular requirement. These operators includes like
pilgrimage touring, honeymoon travels, educational trips, etc.
 Domestic operators- These operators provide services to NRI. This makes easy for them
to visit their country. This is used when they are on their holidays (Buckley, 2010).
For luxury coach, fixed contract is more beneficial because while hiring luxury coach there is
fixed cost occurred. In the given case 42 students are visiting so everyone will visit in group.
This alternative is economic also.
2.3 Calculation of selling price of holiday
Ever business operates for profit. Trail finer make packages according to requirement of
consumer, but they take profit margin of 33% over it. There is requirement to provide twin room
in sharing of two adults. They want breakfast over there. There are various cost which is
included in taking services. Booking of luxury coach cost £11,200, this cost includes two
drivers, travelling manager, fuel cost and toll taxes. This cost does not include cost of guide of
£945. spot rate is €1.12 for £1.
It is important for management of company to determine cheap rate so that consumer
does not get diverted to other firm (Buckley, and et. al., 2014).
Trail finder prepare budget for adult students are as under-
Expenditure for per individual
Cost of room 472.5
Expense for luxury coach 233.33
Guide cost 185.71
Total cost for trail finders 891.54
Profit + 294.2082
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Total selling price 1185.7482
Selling cost for 5 nights per individual= 1185.7482
Selling for 42 individuals= 42*1185.7482= 49801.4244
Trail finder provides the above mentioned cost for touring. There are chances that
consumer does not like the price, in that case organisation can provide discount. This attracts
more consumer and increase goodwill in industry. There are three types of cost-
Fixed cost- Cost which is fixed irrespective of number of consumer. Cost like guide expense is
fixed as there is no change in cost of guide as in change number of visitors.
Variable cost- This cost include which is flexible. This cost changes as change in number of
individuals. Example- meal cost (Catlin, Jones and Jones, 2012).
Semi variable cost- This cost is combination of variable and fixed cost. In this cost some part of
expense will be charged irrespective of units, but remaining part is incurred with increase or
decrease in units. Transportation cost is involved in semi variable cost.
While setting cost all the factors are to be considered so that it gives satisfaction to
consumer. Sometimes tour agency promises to fulfil all services offered but at the time of
travelling consumer does not feel so. This creates conflict between buyer and company and it
gives negative impact on brand image.
TASK 3
Review of brochures and methods of distribution used to sell holidays packages
Significance of brochures can be understand on the basis of company objectives and
used in distinct manner. Various organisation used brochures as promotional tool or not. In
simple word brochures means content, structure, size and paper quality based on products, target
market or simply summary of company upcoming products.. Although Brochures of travel and
tourism company act as guiding mode for tourist in an effective manner especially at the time of
selling their holidays (Baddeley and Font, 2011). Although in recent scenario E- brochure used
today by many of tourists for their convenience. In case if we compare between traditional and
modern brochures then the differences observed which are stated below:
 In case of traditional brochures company need to give physical delivery of all the
information through post or face to face interaction with interested parties while in case
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of modern brochures Electronic brochures are used in which all the data are given
electronically.
 Traditional method is not workable now a days due to advanced changing technology
while in case of modern brochure all the innovative ideas are mixed by company to
satisfy the needs of customers.
 Kuoni a famous marketing team Believes in use of both traditional and modern approach
in order to gain maximum advantage against their competitors.
P3.1 Evaluate the planning decisions taken for the design of a selected brochure
Generally every association has their marketing department who marketed the products
and services in creating the awareness among customers through their marketing strategies.
Therefore there are various methods techniques that could be applying by business marketing
team in order to provide suitable offers attract customers so they buy it. Kuoni is one of the
appropriate travel service provider who need to create awareness about luxury holiday packages
to all users. In dynamic external environment due to various technology up-gradation E-brochure
is used modern methods for conveying all the information related to tour packages to all tourists.
Significance of brochure which have to consider by association properly on the basis of
following factors:-
 Planning issue: First of all whole team of association has to determine all the issues that
affect working of company properly. These issues are described in the form of style,
structure and content which need to discuss. The major problem arises at the time that
what type of information company need to fixed which considered appropriate related
with luxury holiday package to their users. Thus it is vital to contain all the content with
this affection so optimum gain derive from brochures. Business managers concentrate on
quality and determine the size of brochures which is cost effective. The main objective
behind it to transfer all the Luxury holiday packages information.
 Target market: The main problem arises for marketing team related to market
identification i.e. their target audience (Bonilla Priego, Najera and Font, 2011). Without
proper planning by upper level marketing team is always in confusing stage that how
through brochure information conveyed if target market is not set. Further Luxury
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holiday packages information require to provide high income group people only so that
Kuoni become famous in such class of people and acquired maximum customer base.
Therefore, proper discussion must be there in which market determination crucial so they
target market for specific purpose. This enables in attracting customer with rational
pricing policies.
 Attractive brief: - In order to create long lasting impression in the minds of customers, it
is important for marketing team to prepare brochures in such a way that every individual
can easily assess the message which sender wants to convey (Boyle, Scherrer-Rathje and
Stuart, 2011). Attractive brief given with specified location which include pictures,
images in order to attract visitors who visit that particular area. Thus, all above points are
the overall efforts made by company in order to accomplish dreams of many tourists who
wish to have luxury hotel.
All above points must be considered by Kuoni in their working culture in order to gain the
best results and maximum profits from their services. Vision of company is to fulfil the fantasies
of tourists who want luxury comforts in their whole journey.
3.2 Suitability of alternatives to a traditional brochure for different types of tour operator
The term brochure described brief summary of all the details related to company
offerings which they want to convey to their target audience. Although traditional brochures get
delivered in a paper format which is expensive for many associations to provide relevant data
related to business. Under this lot of formalities, efforts require in order to communicate the
message to large numbers of audiences. Thus, it is important to determine all kinds of brochures
properly in advance and in an appropriate manner to transfer the knowledge related to package.
Due to more complexity in traditional method, company switches towards the modern gadgets
for providing information effectively. In such aspect digitalisation play an important role for
which various model are stated below:-
 Video: - In the present scenario, due to evaluation of the latest technology, company
prefers to adopt such mechanism which takes less time and give more profits. Various
marketing mediums are coming like conveying information through You tube simply by
uploading video. This source proof successful medium in relation to deliver information
to large population. Therefore in order to gain better outcomes tour operators utilised
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outbound and inbound operators for providing data to their target users (Brent Ritchie,
Wing Sun Tung and JB Ritchie, 2011).
 Internet: Another medium of conveying information to audience is internet because most
people connect on internet for various purposes. This is effective source for delivering all
the upcoming products and services to their customers in the form of advertisement,
official website and different social sites like Facebook, Instagram.
These above two approaches are the most effective mechanism in order to provide relevant
information to external customers. Therefore, Kuoni who indulge in business of luxury holiday
package must apply these methods in order to reach vast range of customers without considering
specific one for accomplishing their objectives.
3.3 Suitability of different methods of distribution used to sell a holiday for different type of tour
operator
Their are different mechanism used for the purpose distribution of tour tickets to large
populations. Therefore it is essential for organisation to use and opt effective way through which
brochure distribute to large audience. It enable them in order to gain optimum results properly
(Mak, 2011). Appropriate method used by company so that transferable data lead to get provided
to target user. Their are different kind of methods that can be use by Kuoni in order to sell
holiday by inbound or outbound tour operators which stated as below: Direct sell: This is simplest way which are used at initial stage of business when
company have limited funds. Under this approach brochure of company product are sell
directly to customer through face to face communication or send through social media
platform. The main advantage of this method is that seller sell only to that customers who
really need their holiday package in which both the parties discuss in brief all the doubts
and issues that customer have regarding brochures. Further, it also in creating long term
relationship with customers which give best result in future. For example Kuoni world
famous marketing team who organise various workshops and roadshows where they
interact with customers and give all the information directly about luxury benefits they
given in whole journey at affordable price. Call Centres: Another important source of providing information is call centre. For
example Kuoni create large customer base through calling them and transfer all the data
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related to offerings and benefits they given in particular journey (Naji-Azimi and et. al.,
2012).
 Internet:- Social sites, Email are the important source of internet in which organisation
create attractive brochures and through that relevant and suitable data get transfer. This
facilities in providing accurate information about package holidays for better response of
target audiences. For example kuoni UK based marketing team give all the data related to
facilities they given in whole journey and additional luxury comforts through their
official website or social networking in which through story format or small
advertisement create awareness among target audience about the luxury benefits they
gain in their travel experience.
TASK 4
4.1 Evaluate the strategic decisions made by different types of tour operator
The management decisions made by different kinds of journey operator are stated below: Setting specified location for target audience- It help in market divisions, findings of the
target consumers in appropriate manner as well as help in providing all the information
related to positioning the product and service that management team of tourism who
operate this business provided in such manner that crate long lasting impact to large
population. For example Trail finders Ltd. Considered as largest tour operator does its
market division consider all the aspect related to geographical, demographical and
behavioural point of view. On the other Kuoni famous marketing team tries to gather all
the information in order to provide luxury life style to individual in their whole journey
(Scholz-Reiter, Frazzon and Makuschewitz, 2010). Demand Forecasting: This is one of the significant ways through which strategic
decisions made by company. For example Trail finders Ltd. used this approach in which
future predictions are made in order to analyse future uncertainty that affect the business
operations and all over functioning of business. Inbound tour operator: These tour operators take residents of a nation and providing
them services at the time of travelling in that country. These operators has medium scope
of growth rather than large in nature. They are limited to particular geographical
boundary only. For them demand forecasting is better option to be taken place at national
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level. It is important for them to transfer their services in all region to all the customers.
Along with that concern on price strategy factor that must be affordable so that all the
things taken place nationally not outside the country. For example Trail finders Ltd.
Although diversified their business in various countries but its corporate office in UK
where large part of services are consumed by client so they also give advanced services
by comprising staff who work as inbound operators in providing professional service.
 Outbound tour operators: these operators provide services to residents as well as those
who visit to other countries. These measures contribute in improving economic
conditions by earning money from outside visitors. Their volume of service is high as
compare to inbound operators. Under this demand forecasting is not enough but they
have to focus more and more critical inspection. For example Trail finders Ltd. Work in
different countries so they hire professional workers who provide their services both
national as well as internationally for expand their business.
Thus, it is convenient to say every tour operator has different strategic policy and decision
making which related with business as well as its working (Stolletz, 2010). Marketing team and
whole management of organisation has to concern on all external factors that affect the
sustainability of business and formulate such measure which provide long term growth.
In this task another company I.e. Thomas cook which is also tour operators whose headquarter is
also in UK also formulate their strategic decisions on the basis of above factors which help the
company in accomplishing their objectives and increase profitability.
4.2 Compare the tactical decisions that could be taken by a selected tour operator in different
situation
Every organisation comprises their division in three bases which include strategic,
tactical and operational department . Therefore professional HR team has to take appropriate and
suitable steps in respect to their working capabilities. Company organisation culture is changes
frequently so it is duty of leader to coordinate with all the workforce who finding difficulty in
adjusting with environment. Various important decisions prepared by the journey operator
concern various factors all the aspects related to discussion from the individual who provide
different services, formulating distinct policies related to logistic department and to establishing
stronger kind-ship with the shareholders and all the matters related to organisation behaviour.
Therefore, important decision taken by operational level is to ensure cohesiveness among
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workforce as well as predict easily all awaited results from coming from it which consider
important for the tourism department for discussing in different services as well as for
administrating appropriate investigation in order to earn all the information in respect to their
pricing policy of their competitors so stable price are fixed for company (Wang and et. al.,
2013).
Middle level managers need to specify all the policies strategies of a company to target
all the audience properly so all the task accomplished within specified time period. Therefore it
is vital for tour operators company to take all the decisions after consulting with business
managers. It has been seen that at national level competition has seen related to price which is
decided on the demand supply factors. Every players in market use effective price strategy so the
cost incurred in manufacturing goods and services become low. Further it has been seen that
inbound tour operators take such step of pricing which are stable and attract more individuals.
Thus, pricing war decisions are less complex in nature and get easily be controlled by team
members of a company.
When business is expand outside the geographical boundary especially in case of
outbound operators whose business is influenced by external factors so in such case along with
demand forecasting company require to do more research for better understanding the needs of
customers. Managers require to prepare appropriate list of all pros and cons so that chances of
inconvenience reduce.
Along with these things determination of external influences could be controlled by
managers of a company easily (Zomerdijk and Voss, 2010). In tour and travel sector
competition increases day by day due to advancement in technology for that business. In order to
sustain in external market new and innovative things must be developed by all company who
have market value in order to get competitive edge over competitors. For example Trail-finders
Ltd tour company has to adopt all the mechanism described above and formulate such rational
strategies which enhance growth and coordination in all levels.
CONCLUSION
This report enhance knowledge about tour business, its current position and scope in this
association. It is significant to know that there is increase competition in external market due to
presence of different brokers. It states that these days companies have tailor made services to
provide satisfaction. There are various types of travelling business, in which speciality operator
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provide some particular types of plans in which they are master. There is impact on GDP and
foreign investment of the country. It benefits to uplifting the living of standard of people residing
there. These days the vital task to scan the need of costumers and modify plans,policies.
Although , report tells that it is important for management of company to analyse the available
resources and then choose according to budget and time span of customer. Every company have
its brochure which consist of their services. These days there are many others ways through
which company can convey about their services like website, mobile applications, etc. It is
important that brochure or e-brochure has to be updated timely as per requirement.
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