Tour Operations Management: Package Design and Decision Making

This report delves into the multifaceted world of tour operations management, examining the crucial stages of designing holiday packages, from destination analysis to itinerary creation and customer communication. It explores the evolving landscape of customer demand and the impact of external factors, such as global crises and technological advancements, on tour operators. The report provides insights into costing a holiday package, using an example from UK to Belgium, including accommodation, transportation, and markup. Furthermore, it reviews various packaged tour programs like wildlife, adventure, cultural, and honeymoon tourism, analyzing strategic and tactical decision-making processes. It highlights the importance of pricing strategies, promotions, and target market analysis, while also considering external factors that can adversely impact these decisions, providing a comprehensive overview of the challenges and opportunities within the tour operations industry.

TOUR OPERATIONS
MANAGEMENT

TABLE OF CONTENT
LO 2.................................................................................................................................................3
Stages of designing holiday package...........................................................................................3
Changes in demand of tour operator’s customers........................................................................4
Costing a holiday package...........................................................................................................5
Brochure......................................................................................................................................6
LO 3.................................................................................................................................................7
Reviewing various packaged tour programmes...........................................................................7
LO 4.................................................................................................................................................8
Strategic and tactical decision making in tour operators.............................................................8
External Factors that have an Adverse Impact on Tactical and Strategic Decision Making.......8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

LO 2
Stages of designing holiday package
There are a lot of stages which have to be considered for planning, creating holiday packages and
designing them which are going to be discussed in the further report.
 The pros and cons of the destination has to be considered and analysed by the
organization so accordingly to the popularity of the customers and the tourism industry so
that the company can profit from it (Green, 2017).
 The customer’s needs, demands and expectations have to be studied in detail so that the
customers are aware of the factors which have to be worked upon so that there is a good
plan which can be built around it and the satisfaction of the customers is worked upon.
 There has to be a proper itinerary which has to be given to the customers and this is also
developed by the management of TUI so that there are no two activities which are
clashing which other and the customers have to suffer because of that factor.
 There is a requirement of the tour operator to hire a agency which can handle the
profitability operations and smooth functioning for the customers which are travelling
already with this organization.
 There has to be good communication and negotiations which has to be done with the
transportation, event organizers, accommodation providers, etc so that the quality of
services and pricing charges of the place is going to be better and the standards of the
company is maintained for the customers.
 There are going to be their own pricing after the negotiations are done by the
organization and the holiday package is going to be profitable for the company which is
going to be affordable price for the tourists as well (Rumble, 2019).
 There is a good information method which is used by the tour operate like brochures
which has all the information about the services which would be included in the holiday
packages which includes the price, accommodations, itinerary, durations of the visit, etc
so that the tourists are going to be comfortable and have a trust in the tour operation.
 According to the information the tourists book or reserve their effective and efficient
reservations according to the number of clients which would be interested in the holiday
packages which the organization is providing.

 There are a lot of promotions and advertisements which the company does so that they
can let out their holiday packages out right and attract the right customers which would
be interested in the holiday packages and have the right financial investment to be made
in this.
Changes in demand of tour operator’s customers
There are a lot of external factors which are going to affect the functioning of the
organization which will have to be analysed by the company so that there is a better functioning.
The trends are changing and the demands of the customers have recently shifted which is going
to make the company make a lot of different decisions so that they can grow again in the market
which would be discussed in the further report.
 There is a healthy crises which have come in the world which can make the company get
affected very bad which is spreading very fast and has feared the tourism industry
majorly which is Coronavirus (Covid-19). Be it a very famous destination which has
never had zero tourism till now but presently all these destinations are having people
which are infected which makes the tourism not take place at all (Abd Hamid and Isa,
2017). The destinations have become minimum and it is very essential for the
safeguarding of the people which is why the company must gain the trust of the people
and take the right measures so that they will be able to start again in the market otherwise
the company will not be able to have a strong economic flow. There are a lot of foreign
tourists which got in virus because of travelling and this virus is deadly which is why
there is a fear in the tourists from going anywhere. Even the businessman for who
without travelling work is not possible does not want to travel at all.
 There is a lot of technological growth which the holiday packages are not being able to
provide which is making the satisfaction level of the customers get affected (Grant, Wong
and Trautrims, 2017). It is very important that when a tourist is paying the kind of
amount TUI is asking for then they must be provided with facilities like Wi-Fi, digital
itineraries, digital maps, online payments, etc so that tourists are more comfortable and
they will be able to travel to locations which are cultural and values are going to be well
maintained for a long run.

Costing a holiday package
The overall costing and pricing for the tourists which are travelling from UK to Belgium
and have selected their holiday package in the year 2023 according to the educational tour they
selected and luxury that they need. The following report is the overall view of this selection
(Shevchenko and et.al., 2018).
Sr. No. Package Details Cost for One Student (Euros
€)
1 Accommodation Costs for 7 days stay per person 124 € x 7= 868€
2 Transportation cost through luxury coach including
costs for driver, tour manager, fuel and road taxes
7,250€
3 Local Tour Guide 940€
Initial total 9058€
4 25% Mark up for selling, promotion costs and profit 9058€ + (9058€ x 25/100) =
11,323€
5 Final Total 11,323€

Brochure
Brochure of Holiday Package for Visiting Belgium in summer 2023
Chosen Destination:
In this holiday package the tourists can travel to
cities of Belgium like Ghent, Brussels, Brugge,
Ostend and Antwerp in the summers which are the
best time in the year to visit these locations in the
country.
Mode of Transportation:
The mode through which the tourists will be
taken are airlines because of the limited time and
for inter city there are going to be luxury coaches
provided so that the tourist can have a better
experience and have a leisure time in the country.
Accommodation:
This package is for 7 nights in the country
and the stay would be at Ghent in a hotel
named Van der Valk Hotel Nazareth Ghent
which would provide a twin bed and
breakfast in bed every day of the stay.

LO 3
Reviewing various packaged tour programmes
There are a lot of tour programmes which are present in the market which can help TUI
be able to operate effectively in making the customers satisfaction, needs, requirements, etc be
met. The packages are set according to the needs of the tourists and their enjoyment so that there
is going to be a good experience. The following report discussed the main types of packages.
 Wildlife tourism package
The tourists travel for a purpose and one of them being wildlife for the live experience of the
country. There is a lot of difference in the wildlife from one country to the other and there is a
guaranteeing of safety so that the tourists can get attracted in the organization (Di Vaio and
Varriale, 2020). There are a lot of government policies and regulations which have been
established on this factor which will have to be maintained so that there is a good and well
maintained wildlife in the country.
 Adventure tourism package
There are thrills and adventures which the customers want so that the programme is going to
be better. These have to have the right locations and there must be a good collaboration with the
local adventure guides as well (Dixon and et.al., 2017). Activities like mountain climbing,
rafting, scuba diving, paragliding, ice skiing, etc are attracting a lot of tourists but these are
seasonal adventures which have to be well maintained so that there is a good functioning. The
transportation in these locations is going to be difficult and has to be well maintained by TUI.
 Cultural tourism package
All the countries have their own and unique cultures which are present and tourists want to
experience and understand those. There are a lot of modern cultures, ancient culture, etc which
are present which will have to be maintained so that the tourism can take place. There are beliefs,
daily lives, traditions, customs, etc which will have to be maintained so that there is a good
population in these place.
 Honeymoon tourism package
These are preferred by newlywed couples which are going to have beautiful and romantic
locations for them. There has to be a good privacy factor which has to be maintained and these
are destinations which are famous. Transportation has to be separate and the customers have to
have a good experience all together (Beirman, 2016).

LO 4
Strategic and tactical decision making in tour operators
There are a lot of programmes which are present but there is a way through which the
company will be able to maintain their packages in the industry. There are roles and
responsibilities which have to be followed so that there is a good strategic management in the
organization.
 Pricing strategy
The pricing of the operations will have to be thought through so that there is a good profit
and experience which the company can provide. There has to be good collaboration with the
local people and accommodations so that the pricing of the packages are good (Sheng,
Amankwah-Amoah and Wang, 2017). The packages have to be affordable for the tourists who
are travelling so that there is a good experience and more activities have to be involved in them
so that there is a good tactic which can be used.
 Promotions
All the information has to be reached out to the customers which are travelling with TUI so
that they are aware of the expectation which they must have as well. Promotions are the best way
through which there is a good communication which can be provided to the tourists so that they
can make the right decisions for themselves and the standards of the organization are maintained.
 Target market
There are a lot of targets which are present and have to be planned accordingly so that there
is a good profit margin in the market. The targets have to be met so that the profitability is good
in the organization and the consumers have to analysis their factor. Demands, requirements and
needs of the tourists have to be met so that there is a good understanding and functioning.
External Factors that have an Adverse Impact on Tactical and Strategic Decision Making
There are a lot of factors which have a great influence on the decision making of the tour
operation which are the external factors specially. It is very important for the company to make
the changes according to the tourists but the organization will also have to analyse the external
factors because they are not in control of the organization which is why it is very essential for the
company to be able to do that. There are a lot of tourists which have a standards and lifestyle

which they want to maintain even when they travel outside or inside the country which has to be
provided to them so that there is a good reputation (Mandal, 2018). The services and products of
the company has to be good and matching the expectation of the organization so that the
organization will be able to plan according to the resources present and the company will be able
to do well in this competitive market.
CONCLUSION
There has to be a good management of the operations in tour industry as well so that
there is going to be a success in the travel and tourism industry. There are a lot of roles and
responsibilities which are present in the organization so that there is a good functioning of the
company to have. There are strategies which have to be planned and implemented for better
operations to take place. There has to be a good direction of the organization so that the
objectives and goals of the company are matched.

REFERENCES
Books and Journals
Abd Hamid, M. and Isa, S.M., 2017. Tour operators contribution towards sustainable tourism: A
review from the literature. In Balancing Development and Sustainability in Tourism
Destinations (pp. 301-313). Springer, Singapore.
Beirman, D., 2016. Tourism Risk, Crisis and Recovery Management Guide (for Tour
Wholesalers).
Di Vaio, A. and Varriale, L., 2020. Blockchain technology in supply chain management for
sustainable performance: Evidence from the airport industry. International Journal of
Information Management. 52. p.102014.
Dixon, M.J and et.al., 2017. Surprise, anticipation, and sequence effects in the design of
experiential services. Production and Operations Management. 26(5). pp.945-960.
Grant, D.B., Wong, C.Y. and Trautrims, A., 2017. Sustainable logistics and supply chain
management: principles and practices for sustainable operations and management.
Kogan Page Publishers.
Green, R.J., 2017. Disturbing Skippy on Tour: Does It Really Matter? Ecological and Ethical
Implications of Disturbing Wildlife. In Wildlife Tourism, Environmental Learning and
Ethical Encounters (pp. 221-233). Springer, Cham.
Mandal, S., 2018. Exploring the influence of big data analytics management capabilities on
sustainable tourism supply chain performance: the moderating role of technology
orientation. Journal of Travel & Tourism Marketing. 35(8). pp.1104-1118.
Rumble, G., 2019. The planning and management of distance education. Routledge.
Sheng, J., Amankwah-Amoah, J. and Wang, X., 2017. A multidisciplinary perspective of big
data in management research. International Journal of Production Economics. 191.
pp.97-112.
Shevchenko, A and et.al., 2018. Joint management systems for operations and safety: A routine-
based perspective. Journal of cleaner production. 194. pp.635-644.