Tour Operations Management: Trends, Planning & Decision Analysis

This report provides a comprehensive analysis of tour operations management within the travel and tourism sector. It begins by examining the effects of current trends and recent developments on the tour operator industry, including increased disposable income, globalization, technological advancements, independent travelers, destination marketing, food tourism, and adventure trips. The report then delves into the stages and timescales involved in developing holidays, evaluating different methods of contracting, and calculating the selling price for a student tour from London to Brussels and Brugge. Furthermore, it assesses planning decisions for brochure design, the suitability of alternative promotional methods, and various distribution strategies for selling luxury holiday packages. Finally, the report compares and evaluates the strategic and tactical decisions undertaken by different tour operators in various situations, providing a thorough understanding of the complexities within the tour operations industry. Desklib offers a wealth of study resources, including past papers and solved assignments, to support students in their academic endeavors.

TOUR OPERATIONS
MANAgEMENT

CONTENTS
INTRODUCTION...............................................................................................................2
TASK- 01...........................................................................................................................3
P1.1 EFFECTS OF CURRENT AND RECENT TRENDS AND DEVELOPMENTS ON
THE TOUR OPERATORS INDUSTRY.........................................................................3
INCREASED DISPOSAL INCOME............................................................................3
GLOBALIZATION AND FDI.......................................................................................3
TECHNOLOGICAL ADVANCEMENT........................................................................3
INDEPENDENT TRAVELLERS.................................................................................4
DESTINATION MARKETING.....................................................................................4
FOOD TOURISM........................................................................................................4
ADVENTURE TRIPS..................................................................................................5
TASK- 02...........................................................................................................................6
2.1 STAGES AND TIMESCALE INVOLVED IN DEVELOPING HOLIDAYS................6
DESTINATION MARKET SEARCH...........................................................................6
PLANNING AND SCHEDULING................................................................................7
CONTRACTING.........................................................................................................7
TOUR OPERATOR’S BROCHURE...........................................................................7
2.2 SUITABILITY OF DIFFERENT METHODS OF CONTRACTING FOR
DIFFERENT COMPONENTS OF THE HOLIDAY AND DIFFERENT TYPES OF
TOUR OPERATOR........................................................................................................9
AD HOC......................................................................................................................9
FIXED CONTRACT....................................................................................................9
TRANSPORT.............................................................................................................9
HOTELS.....................................................................................................................9
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ATTRACTIONS........................................................................................................10
INBOUND TOUR OPERATOR................................................................................10
OUTBOUND TOUR OPERATOR............................................................................10
DOMESTIC TOUR OPERATORS............................................................................10
2.3 SELLING PRICE OF THE TOUR..........................................................................11
TASK- 03.........................................................................................................................12
3.1 EVALUATE THE PLANNING DECISIONS TAKEN FOR THE DESIGN OF A
SELECTED BROCHURE............................................................................................12
FORMAT...................................................................................................................12
PRINTING QUALITY AND DESIGN........................................................................12
CONTENT................................................................................................................13
3.2 ASSESS THE SUITABILITY OF ALTERNATIVES TO A TRADITIONAL
BROCHURE FOR DIFFERENT TYPES OF TOUR OPERATORS AND
RECOMMEND THE MOST APPROPRIATE FOR YOUR TOUR PACKAGE............15
PROMOTIONAL BROCHURE.................................................................................15
ONLINE BROCHURES............................................................................................15
3.3 EVALUATE THE SUITABILITY OF DIFFERENT METHODS OF DISTRIBUTION
USED TO SELL A HOLIDAY FOR DIFFERENT TYPES OF TOUR OPERATOR AND
RECOMMEND THE MOST APPROPRIATE FOR A LUXURY TOUR PACKAGE.....17
DIRECT SELL..........................................................................................................17
ONLINE SELL..........................................................................................................17
TASK- 04.........................................................................................................................19
4.1 THE STRATEGIC DECISIONS MADE BY THE DIFFERENT TYPES OF TOUR
OPERATOR.................................................................................................................19
SEGMENTATION, TARGETING AND POSITIONING............................................19
PRICING DECISIONS..............................................................................................20
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OFFERED PACKAGES...........................................................................................20
4.2 COMPARISON OF THE TACTICAL DECISIONS THAT COULD BE TAKEN BY A
SELECTED TOUR OPERATOR IN DIFFERENT SITUATION...................................21
DISCOUNTS............................................................................................................21
EXTERNAL FACTORS............................................................................................21
COORDINATING......................................................................................................21
CONCLUSION.................................................................................................................23
REFERENCES................................................................................................................24
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INTRODUCTION
The following assignment revolves around the understanding of the Travel and Tourism
Management. Firstly, the tour operators industry within the travel and tourism sector is
understood by analysing the effect of current and recent trends and development of the
tour operator industry. Further on, the different stages involved in creating the holiday is
discussed by assessing the stages and timescales involved in the developing the
holidays, evaluating the suitability of different methods of contracting and then selling
price per person is calculated for a holiday of 40 students from London to Brussels and
Brugge, Belgium. In the next part of the assignment, methods of distribution will be
evaluated along with the planning decisions taken for the brochures for selling the
luxury holidays. Lastly, the strategic and tactical decisions undertaken by different tour
operators in the different situation will be compared and evaluated.
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TASK- 01
P1.1 EFFECTS OF CURRENT AND RECENT TRENDS AND DEVELOPMENTS
ON THE TOUR OPERATORS INDUSTRY
The tour and travel industry is one of the
most dynamic sectors, thus the
operators have to continuously evolve
and adapt the latest trend and changes.
The latest trends and changes must be
exploited by the tours and travel
operators to get the advantage of the
available opportunities.
Recent reports show that in the
upcoming years the number tourist
arrival will increase in the regions of
Africa, Asia and the Middle East, while
there will be slow growth in Europe and
America.
Trailfinders, founded in the year 1970 is
one of the experienced companies in
the market is adaptable to changes.
With a total of 32 centres, over 1000
employees and worldwide reputation the
company has proved to be most
dynamic organization. Recent trends
that affected the Trailfinders and in a
bigger context, the entire tour operator
industry is:
INCREASED DISPOSAL INCOME
It has been recently noticed that the
disposable income of the people has
significantly increased, which resulted in
an increase in their living standard and
lifestyle. This directly affects the GDP of
the country. People use this capital for
travel and luxuries which is beneficial for
the tour operator industry.
GLOBALIZATION AND FDI
The diminishing boundaries between the
nations have benefited the tour and
travel sectors. Globalization has
resulted in attracting more tourists.
Private and public bodies of the
countries have made several policies to
gain the most advantage of the
opportunity. Foreign directive
investments have also increased the
opportunity to access the overseas
market. This provided an opportunity to
attract more tourists and provide more
service to them (Sharpley, 2015).
TECHNOLOGICAL ADVANCEMENT
The increase of mobile services
worldwide has given several new
opportunities to the tour operators. It
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has been observed that a majority of
tourists browse destinations before
planning their tours, and about 50
percent of the tourists prefer mobile
booking. Tourists can now get several
discounts and choose from a large
number of options which resulted in cut-
throat competition in the industry
(Milano, 2011).
An increase in internet usage has also
eased up the work for the tour
operators. The customer database can
easily be managed and shared within
the organization. It also gave the chance
to the tourists to rate the service and
shares their review on any operator, this
has influenced the tour operators to
provide best facilities and services to the
customers in order to maintain or boost
their brand names.
INDEPENDENT TRAVELLERS
Due to the affordable tour packages
available online and safe travel
environment, people are choosing to
explore new places on their own. This
has negatively affected the growth of the
tour agencies.
DESTINATION MARKETING
There has been a change from tourism
marketing to the destination marketing
where online media is apart from the
leaflet and advertisement.
Figure 1: Destination Tourism
Source:
http://cdn.touropia.com/gfx/d/world-
famous-canals/bruges.jpg?
v=dfa8bc61c261bb49fb70d76ebfc5c5
e3
Tour operators select and invest in the
destinations and the luxuries offered at
the particular destination are advertised
(Wang, 2011).
FOOD TOURISM
Figure 2: Food Tourism
Source:
http://greece.greekreporter.com/files/
Santorini_attr_18-696x386.jpg
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According to Patrick Whyte, food
tourism is becoming popular among the
travellers; additionally, food is not just
about dining out but includes cooking
courses, farm tours and food markets
that makeup about 95 percent of this
experience. Tour operators are including
these services in their packages and
making a tie-up with the local food
provider to maintain their profit
(Coppola, 2016).
ADVENTURE TRIPS
Figure 3: Adventure Trips
Source:
http://www.statravel.com/static/us_di
vision_web_live/assets/UK_April_Ca
nada_assets-460x220-tour.jpg
It is considered to be number second in
the trending list of 2017 (Lane, 2016).
People are investing more in
experiences like an African safari or
hiking and Swiss Alps.
The above-mentioned trends are a
glimpse of the overall changes that have
occurred in the travel and tour industries
in the past couple of decades. This
changing environment and technological
advancements have made the travel
easy to manage. It has also resulted in a
tough competition in the industry. In
order to survive and grow, continuous
improvement in techniques and plans
are required. Providing best services
and packages has become essential
more than ever.
Trailfinders has focused on adopting
new changes from the very beginning,
which has resulted in the growth of the
organization.
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TASK- 02
TITLE
EDUCATIONAL TOUR PROPOSAL FOR ADULT STUDENTS FROM LONDON, UK
INTRODUCTION
The following report provides a described understanding of the stages that are involved
in managing holidays. It includes a well-planned proposal for 40 adult students travelling
from London to Brussels, Brugge and Belgium. This 5-night summer vacation tour will
start from August 2019. The stages and timescales for creating the holiday have been
thoroughly assessed in the given proposal. Additionally, the suitability of different
methods of contracting for different components of the holiday is also evaluated. Lastly,
cost per person for the given tour is also evaluated below.
BODY
2.1 STAGES AND TIMESCALE INVOLVED IN DEVELOPING HOLIDAYS
Planning of a five-night holiday package for 40 adult students from London to Brussels
and Brugge, Belgium in August 2019 requires following some specific steps to
effectively plan the trip. The involved stages and time scale are described below:
DESTINATION MARKET SEARCH
The initial stage involves the market research and inquiry of the destination place i.e.
Brussels and Brugge. Factors like climate, culture, and different places have to be
analyzed before visiting. This is an essential step which has to be carried out effectively
in order to implement the package plan efficiently. The above-mentioned factors have
the direct effect on the planned budget. Thus, Trailfinders authorities will be responsible
for the analysis of the suitability of the location and latest market trend. The budget
planning for the five nights will be dependent on this step, including the transportation
cost, entry fees and other various costs (Ashworth and Goodall, 2013).
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PLANNING AND SCHEDULING
This stage will involve, laying out a well-structured plan after proper market analysis of
the destination that has to be visited i.e. Belgium. It is the role of the company to make a
well-defined schedule and well-structured planning of activates that will be followed
during the entire tour. This will help in avoiding the inconvenience and utilize the proper
benefits from the destination. In the given tour, sufficient arrangement will be made
regarding the accommodations, transportation and food facilities. Sightseeing will be
properly scheduled for the five-night tour, specific areas will be covered each day to get
the best experience. Travelling time will be also included in the schedule (Joshi and
Goudar, 2017).
CONTRACTING
In order to get the favourable offers and packages for this tour, it is required to purchase
the best deals in advance. It is required to get the best deals from the organizations in
order to get the best facilities for the students such as transportation facilities,
accommodation facilities, and other services. In this tour, we will be getting in touch with
the luxury coach provide in advance in order to gain proper occupancy and comfortable
experience for 40 students. Deals are made at every stage with different organizations
to get the proper benefit of the deals.
TOUR OPERATOR’S BROCHURE
After all the above steps are completed, the last steps include preparing a brochure that
will give an idea of the planning and approach of the tour. Different timescales will be
included in it, and one of the timescales is presented below
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20 March 2018
A timescale for the tour from London to Brussels and Brugge, Belgium
Tour type: Educational tour
Locations: Brussels and Brugge, Belgium
Commencement Date: 12 August 2019
Tour’s Duration: 5 Nights
Total students: 40
Tourists nature: Students
Sightseeing: Historium Brugge, Museum of natural sciences, Belfort, Grand Palace,
Guildhouses, Basilica of the Holy blood and Musical Instrument Museum.
Any changes in the plans or costs of the tour will be informed to the students
before 15 days of the commencement date.
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2.2 SUITABILITY OF DIFFERENT METHODS OF CONTRACTING FOR
DIFFERENT COMPONENTS OF THE HOLIDAY AND DIFFERENT TYPES OF
TOUR OPERATOR
Suitability of different methods of contracting and different types of tour operators are
discussed below
AD HOC
This method of contracting is one of the easiest methods and is often used by the
Trailfinders. This involves making reservations prior to the tour in order to effectively
carry out the proposed plan. This method of the contract is used by Trailfinders Ltd. to
book the hotels and transportation services at discounted rates and in advance (Waligo,
et al., 2015)
FIXED CONTRACT
In such contracts, the profit is determined and ensured based on volume usage. In the
off-season, tour operators have to bear the losses of non-used services in the case of
the booked volume. As in this tour, the total number of students are fixed, thus, the
company can use this method in order to save the tour operator from the losses.
TRANSPORT
Transport services are one of the major functions of the tourism industry, without which
tourism is not possible. Therefore, several policies should be made in advance in order
to get cheap and comfortable means of transportation, which will result in the
satisfactory journey of the tourists. The services bought can be based on roundtrip or
single way trip. Trailfinders has booked a 40 seated luxury coach in advance for the tour
at the affordable price.
HOTELS
The major concern for tourists exploring the places is to spend quality time with their
family and friends. Proper accommodation is essential for the tourism sector and hotels
to play an important role for the same. They provide relaxed housing and provide a
variety of packages dependent on the rating of the hotels and prices ranging from low to
high. They provide services and luxuries to the tourists. Trailfinders can get and accept
proposals from different hotels after analyzing their services and price.
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