Tour Operations Management: Trailfinders Case Study Report

This report delves into the intricacies of tour operations management, using Trailfinders as a case study. It examines the stages and timescales involved in developing holiday packages, methods of contracting for different components, and the calculation of selling prices. The report also explores planning decisions for brochure design, the suitability of alternatives, and distribution methods. Furthermore, it analyzes strategic and tactical decisions made by tour operators, providing a comprehensive overview of the key elements in the industry. The report highlights the factors considered in designing an educational tour package for students, including research, itinerary development, negotiation, and marketing strategies. It also contrasts fixed and sale-only contracts, detailing their implications for risk and profitability. The pricing section provides detailed calculations for determining the final sale price of the tour package, including accommodation, transportation, and tour guide fees, concluding with the total sales price per person. The report concludes by outlining the strategic decisions made by various kinds of tour operators and comparing the tactical decisions taken by firms in different circumstances.

Tour Operations
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Covered in leaflet..................................................................................................................1
TASK 2............................................................................................................................................1
2.1 Stages and timescale involved in developing holidays.........................................................1
2.2 Methods of contracting for different components of holiday and types of tour operator.....4
2.3 Calculation of selling price...................................................................................................5
TASK 3............................................................................................................................................6
3.1 Planning decision taken for designing of selected brochure.................................................6
3.2 Suitability of alternatives to a traditional brochure for various types of tour operator.........7
3.3 Methods of distribution used to sell holiday packages.........................................................8
TASK 4..........................................................................................................................................10
4.1 Strategic decision made by various kinds of tour operator.................................................10
4.2 Comparison between tactical decision taken by firm in various circumstances.................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Tour operation is a an effective process in which various travel companies is going to
design standardized quality of holiday packages consist of all the necessary facilities required for
customers while travelling. However, managerial team of journey operating is trying to advertise
and prepare splendid brochures in order to promote their products, tour packages and itineraries
(Allahyari, Salari and Vigo,2015). Trailfinders is a large multinational travel organization in
European marketplace whose main objective is to serve traveller in a best manner by offering
them best facilities and later on it becomes one of the largest independently owned company in
UK. Basically this enterprise is having almost 29 travel centres across the European market and
nearly 3 in Ireland in order to gain maximum benefits. Therefore, this assignment is mainly
segmented into four different parts for explaining methods adopted by referred association to
cope up with current trends. Along with this, it also highlight management system of company
while designing impressive holiday packages for their customers by considering relevant facts or
figures. Furthermore, report is going to throw few lights on suitable methods of distributing
designed tour packages by calculation actual selling price with the help of accurate data or
information. Apart from this, tour management team have to make necessary decision during
journey which is also outlined in this project.
TASK 1
1.1 Covered in leaflet
TASK 2
2.1 Stages and timescale involved in developing holidays
Being a team member of product development department, it is essential to plan or design
impressive holiday packages as per consumer demand for selected firm by capturing the minds
of numerous customers. However, holiday is planned for enjoyment, refreshment, to change the
environment, get free from hectic schedule and so on. Planning is considered as an initial process
for every business activity which designs entire framework of activities and supports in making
the most appropriate decision by assessing available aspects (Baddeley and Font, 2011). As a
part of development group, before designing an effective or impressive educational tour of 5
nights for 42 students, it is essential to consider necessary elements in order to minimize chances
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of risk and challenges. In fact, team head is liable for all the activities or problems that occur
during journey. Thus, it is indispensable to make sure that all the important things are managed
or regulated before going on trip.
As per the given scenario, an impressive journey package is required to design for almost
42 students who are wishing to go for educational tour in July summer vacation 2019 for 5
nights. Therefore, managers of tour operators are required to arrange all the necessary things
whatever students are going to require while travelling. Hence, various factors which must be
considered while preparing summer vacation 2019 holiday package are described as follows:
Research destination:- According to given scenario educational place which is selected
by student is that they are wishing to travel from London to Brussels and Brugge which is in
small Belgium. Thus, an appropriate destination is already identified for students so that they can
learn something about that place (Chand and Katou, 2012). After getting aware about suitable
spot manager of management team required to accumulate necessary information or data about
Brussels and Bruggles in order to plan their strategy or tour accordingly.
Developing tour itinerary:- Secondly, they have to design an effective tour itinerary by
considering relevant information or evidences which is collected in initial step in order to
minimize problems or issues which might be occurred while journey. Thus, suitable itinerary for
education tour of 42 students are highlighted below:-
Educational packages (5 night 6 day)
(850 euros) with all inclusive.
Luxury 48 seater coach (additional benefits)
 Comfortable seats
 Water facilities
 Air conditioner
 Availability of food and beverages.
 Entertainment facilities such as; TV, laptop.
Stay in Luxurious hotel:- Marriott hotel
 Breakfast, lunch and dinner.
 Welcome drinks (free from alcohol).
 Double bedroom sharing with two adults.
 24 hour hot and water.
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All the additional facilities whatever required during journey.
(Source:- London Holiday Packages, 2017)
Negotiations:- After designing an impressive tour itinerary for students its time to
convince customers to travel in above prescribed amount without because it covers all the
necessary inclusive whatever is required while journey. In fact there are number of vendors and
suppliers who are involving in operating tour. Thus they are trying to negotiate with their
vendors in order to minimize prices of package. Mainly, goodwill of an association at
marketplace supports them in convincing customers as well as suppliers and succeeded in
gaining discounts from competitors so that they can maintain long term business relation (Filby,
Stockin and Scarpaci, 2015).
Price determination:- According to this factor tour maker need to decide price of overall
packages consist of all the necessary inclusive by considering entire cost and commission.
Mainly, number of elements which affects price of packages such as; foreign exchange rate,
price of fuel and taxation of a specific nation. However, cost is fixed from last ten months before
the journey dates.
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Illustration 1: London Holiday Packages

Marketing:- It is very indispensable factor of tour operation because this method is used
by enterprise to maximize the awareness in consumers about goods or services which is offered
by industry. Additionally, it aids an association in increasing the demand of their tour packages
and generate maximum revenue.
Execution of tour:- At the end of this process entire planning and preparation is going to
converted into reality. Thus, suitable execution of tour make its successful.
2.2 Methods of contracting for different components of holiday and types of tour operator
Trailfinders is popularize in travel industry of UK because of their best services with
standardized packages which attract numerous of domestic as well as foreign clients. In fact their
main objective is to serve their customers in a best manner by facilitating them in a proper
manner and make them more comfortable during tour. According to given scenario in which
product development team of selected firm was designed a splendid and reasonable educational
tour package for almost 42 student consist of all their necessary facilities. Then after this, they
are trying to convince their customer on the same price because cost was decided by considering
relevant factors (Gibson, 2012).
In given case study tour operators designed packages as per various features and with the
help of two useful tools or techniques. For example; fixed contract and sale only contract. In fact
fact several number of tour operators such as aerospace or flight centre agents are adopting these
type of methods of contracting while running their business operation. Basically, travel managers
of selected association comes into contract with their competitors and suppliers by considering
two major methods of contracts. Later on choose best or suitable amongst them for specific tour.
Hence, different methods of contracting are mentioned as follows:- Fixed contract:- According to this tool an association need to focus on collective and
quantitative framework towards sales. In this method managerial team of tour require to
maximize their capacity in order to increase their sales volume. Thus, it has been
analysed that this kinds of contract is accomplished to gain maximum benefits in off
season. Mainly, fixed contract provide the benefits of price effectiveness by acquiring
great discounts and advantages of team price. Apart from this, there is also chance of risk
(Guo and He, 2012).
 Sale only contract:- In this method of contract prices are too much high as compare to
fixed contracts because agreement done with the use of this method is executed in
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season. In fact contracts are made as per demand or requirement of clients as well as
potentiality of marketplace in order to generate more and more revenue as compare to
their rivalries. Mainly, in this tool chances of risk is too low because there is absence of
liability on tour operation. However, contracts fall under this category consist lack of
discounts.
Hence, after assessing both the above contracts it has been identified that maximum risk
generates high return on investment. Thus, fixed contract contains high risk by offering heavy
discounts as well as profitability whereas in other case of sale only contracts there is absence of
risk which resulted in maximum cost.
2.3 Calculation of selling price
According to given case study European students are planning to go for educational tour
from London to Brussels and Brugge for experiencing something new or different. Thus, they
wanted to plan a budgetary trip for 5 nights by considering relevant factors which consist of all
the necessary inclusive (Jaafar and Maideen, 2012). Thus, Trailfinders is a travel agency who is
having its contact with Belgium hotels and companies. Therefore, product development team of
an enterprise is trying to plan an effective trip with special discounts. Thus they want to calculate
actual price of overall trip with the help of necessary cost which is going to incurred during
journey.
Accommodation cost: 96*21=2016
96/1.12= 85.7
85.7*21= 1800(For One night)
1800*5= 9000(For 5days)
Details Price(in £)
Accommodation cost 9000
Transportation cost 11200
Charges of tour guide 945
Total cost 21145
Add: Profit margin @ 33% 6977.8
Sale price 28122.5
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It has been notified that the food cost is not concluded in the above calculation of sales
price. Hence, the total sale prices of the package should be £28122.5.
For Per person:
=28122.5/21= £1339.18
€96 / 1.12 = £85,71
£85,71x42 = 3,599.82 (1 night)
3,599.82x5 = 17,999.1 (5 nights)
Accommodation 17,999.1
Transport 11,200
Tour guide 945
TOTAL 30,144.1
33% 9,947.55
SALE PRICE 40,091.65
40,091.65 / 42= £954.56 / PERSON / HOLIDAY
TASK 3
3.1 Planning decision taken for designing of selected brochure
Travel industry is also informing their clients about products or services which is they are
going to offered their travellers so that they can make their decisions without any pressure.
Managers of Trailfinders is adopting various useful methods for capturing attention of visitors in
which they are mentioning all the necessary things or information which is required for
consumer awareness and helps in decision making process. Thus, brochure is an impressive
document which is framed by managerial team or designer of selected firm that contains
comprehensive and precise information about holiday packages which is offered by company to
their clients (Kerzner, 2013). Major objective behind preparing splendid quality of brochure is to
maximize their sales volume or demand of consumers. Handout may be distributed either online
or offline but due to introduction of digital world an association is using advanced equipments in
transferring brochure to customers. However,. As a marketing team of Kuoni it is essential to
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determine problems or obstacles before enhancing brochure. Hence, various components that are
considered by organization while designing impressive handouts is mentioned as follows:-
 Format of brochure:- It is a systematic document of necessary data or evidences related
with products or services which is offered by organization. Mainly it includes number of
sections and sub parts in which information are classified into various parts which makes
its more impressive and easy to understand. In fact format of brochure is designed as per
target market. Hence example of attractive brochure is explained as follows:-
1. Name of tour operator.
2. Method of transportation.
3. Name of destination and itineraries of overall package.
4. Accommodation and additional benefits.
5. Cost of tour package.
6. Terms and conditions with additional charges.
7. Legal requirements.
(Source:- Tri fold brochure, 2015 )
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Illustration 2: Tri fold brochure

 Budgeting and selecting target market:- Secondly, its time to defined accurate budget of
tour package and target market which is conducted by analysing demand of various
consumers (Khairat and Maher, 2017). Mainly budget is defined as a spending power of
consumers that is key component for choosing industries goods or services.
 Time frame for completing stages:- It must be formed in a defined time period because
it is seems as a indispensable document of marketing department of tour operator. Thus,
it is essential for enterprise to design a amazing handout in a minimum time period or
given time frame.
3.2 Suitability of alternatives to a traditional brochure for various types of tour operator
Traditional brochures are consider as a classical framework for merchandising
department of Trailfinders company which consist of necessary information but not that much
appropriate or effective. Along with this failed in seeking attention of consumers neither that
much effective in maximizing demand of holiday packages offered by selected firm. Thus, after
emergence of advanced technology creates many more alternatives of traditional approach that is
utilized by company while designing brochure. In fact these options are very much effective and
useful in overcoming the barriers which may arise while formulating handouts as well as fill the
gap (Mak, 2011). Hence, various alternatives are defined as under:- E-brochures:- Usage of internet while designing it which helps in completing it in a
minimum time period with more attractiveness. Visual:- Same as magazines in which number of beautiful pictures are pasted for seeking
attention of consumers. Social media:- Adopting internet for advertising information such as ; Facebook,
Instagram, google, twitter and so on.
 Websites:- Makes number of amazing sites of tour destination by having accurate
information about that place.
Thus, it has been identified that online brochures are consider as electronic which is seen
as a best alternative of physical handouts. Along with this price for preparing electronic designs
consist minimum. Apart from this visual and audio visual is seen as most appropriate method for
capturing attention of customers.
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3.3 Methods of distribution used to sell holiday packages
Trailfinders is a large association who is trying to expand their current business across
international boundaries for gaining maximum benefits by satisfying needs or demands of
different customers (Martinez, Stapleton and Van Wassenhove, 2011). According to given
scenario selected association is going to work with marketing team of Kuoni where promotion of
holiday packages is done by the use of suitable methods which are mentioned as follows:-
Brochure distribution strategy: This is one of the most established technique that is
utilized by an organization to offering holiday packages which is coined by Sir Thomas Cook in
almost 1953. Certain progressions are done in this and made like an occasion inventory that is
similar as women garments magazine providing more choices of garments for them. Those
handouts are conveyed to the clients of association with contact subtle elements with the goal
that they can get in touch with them if necessary in future.
(Source:- Direct and Indirect Marketing Methods and Distribution Channels, 2016)
Website dissemination strategies:- This strategy is innovation empowered technique to
offer tour packages that is introduced by utilizing mechanical instruments or systems like email,
online networking and sites leaflets. Thus, it has been analysed that internet is becoming more
effective and utilized by exhibit clients as well as gaining maximum popularity across
international borders due to its uniqueness or features. Moreover, by the utilization of system
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Illustration 3: Direct and Indirect Marketing Methods and Distribution Channels