Impact of Recent Trends on Tour Operators: A Case Study

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Tour Operations Management
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Table of Contents
Introduction......................................................................................................................................5
Task 1...............................................................................................................................................6
Task 2.............................................................................................................................................10
Task 3.............................................................................................................................................15
Task 4.............................................................................................................................................18
Conclusion.....................................................................................................................................23
Bibliography..................................................................................................................................24
Appendix........................................................................................................................................27
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Introduction
The heart of the tourism industry is the tour operation business. The tour operation business has
an ability to link the tourists with service providers. In this essay, the effects of the current trends
in tour operators industry and some of their developments have been discussed. The stages and
the timescales integrated in creating, managing, and developing holidays were also discussed.
Suitability of different procedures of making contracts for the holiday has been assessed along
with the various categories of tour operators. An example of calculation of the selling price of a
specific holiday has been given information. The importance of planning decision and its
evaluation in designing a brochure has been provided. Various types of distribution methods
employed to sell holidays have been evaluated along with strategic decisions undertaken by
several tour operators. Finally, comparison has been done about the tactical decisions taken by a
specific tour operator in varied situations.
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Task 1
P1.1 Analyse the effects of current and recent trends and developments on the tour
operators industry.
International tourism has become one of the fastest growing economic industries in the world
since the demand is increasing day-by-day (Sassen, 2018). The Tour Operators industry has been
developed to an extended network with its reflected integrated planning and methods. The
primary driver of the global industries on tourism is held by social, political, and cultural factors.
The travellers can now move easily to their desired place than ever before. Tourists can now get
their air tickets, hotel booking, car at rent and other important services through digital reservation
system. Therefore, the success of travel agencies and operators is solely dependent on the
package tours pattern and the operation service quality. It is very important to design quality tour
packages and a defined, feasible, and intangible service concept. Hence, the tour operator should
take care of the service concepts and use these concepts to compare with others. This comparison
helps a tour operator to match the traveller’s demands (Thomaidis and Papathanasiou-Zuhrt,
2018).
The dynamic tour and travel industry is rapidly changing sector. Therefore, tour operators and
service providers need to keep a pace with the changing travel trends (Baum, 2015).
The sustained tourism is stated as:
“Tourism that takes full account of its current and future economic, social and environmental
impacts, addressing the needs of visitors, the industry, the environment and host communities”
(Duffy and Dwyer, 2018).
Travellers have become more aware of their destinations where to go on this planet.
Consequently, the behaviour and travel habits of the travellers have taken a sharp U-turn.
The behaviour changes of modern travellers include:
 In order to reduce carbon emissions travelling are choosing their destinations closer to home
 Opting for the skilled tour operators to support their tour efficiently
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Preferring accommodation providers over the conventional service provides to ensure
sustainability practices such as using renewable energy, composting, recycling and reducing
green house effects and global warming
Hence, the time has arrived to integrate principles of sustainable tourism in the tour industry.
Travellers are wise to select this type of tourism. The choice of the tourism may help in a fruitful
competitive business.
To attract millennial, the tour operators should do the following activities (Navío-Marco et al.,
2018):
 They should be online and provide a company website with an option in online booking. The
tour operators should aware of the today’s digital generation.
 The tour operators should be present on various social media such as, Twitter, Face Book,
WhatsApp, LinkedIn and many more. This is the place where millennial can be found at a large
quantity who are keen in search for valuable information.
 They should be ready to offer the unique experiences to the users or travellers. Travellers have
thirst for adventure as well as cultural tours.
Baby Boomers Travel is a Booming Trend
American Association of Retired Persons (AARP) has reported that five or more trips were
expected throughout the year of 2017 (Patterson et al., 2017). The important motivators are their
bucket list such as holiday, weekend, multi-generational travels, summer vacations etc.
Nowadays, travelling with senior citizens has become convenient like never before. The tour
operators provide many options:
 Gives those personalized tours and activities (balloon flight) that helps to meet their goals
 They offer them authentic and fabulous local experience happened never before. A kind of
food tours are arranged so that they learn how to cook, or any cultural tours involving local
culture and history
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Although boomers are not expert users of online travel system, 41% booking are done online at
the car/hotel/airline/ websites.
Soft Adventure Trips
Travellers intended to have adventurous active trips and these soft-adventure trips have entered
into latest fashion. Such trips are actually activities involving cycling, hiking, river rafting,
safaris, and other cultural activities. The tour providers should make sure about their
advertisements reachable to the crowd. They can also make PowerPoint presentations and
publish both online and offline.
Solo Female Travelers
Travelling solo has become a brand new travel trend where women are more seeking solo
adventure trips. In the due course of time, increase in the number of companies of women only
travel has been increased a lot. The reasons of travelling alone could be having a desire in
pursuing a particular personal interest. Women are the changing factors who opt for luxurious
vacations for the purpose of relaxation and enjoyments in spa. They have an exclusive desire on
to discovering new places and adventures. Hence, the tour providers should plan to offer them
adventure activities and unique tour experiences. Activities like hiking or cycling through the
smooth road or through the natural road pass can give them pleasure. In addition to this, there are
safety issues concerned. The social media can be a great means to spread information about such
unique trips to the female travellers.
Rise of Chinese Tourists
The Chinese tourists are coming into picture of the travel and tourism industry and in the
scenario of the world market. The Chinese tourists around different countries are visibly
noticeable. To serve Chinese tourists, several airports are launching Putonghua or Mandarin in
the public bulletin.
Ecological and educational tours are in demand
Ecological tours have become an eye catcher for the new generation of tourists. These trips leave
rare experiences for educating people regarding a particular ecosystem and the possible ways to
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protect it for our future generations. The ecological projects are emphasized on
forest/animal/botanical ecosystems for restoring nature.
Skipping line tours
Skip-the-line tours are very popular and usually seen in travelling the London Eye, Sagrada
Familia and the Eiffel Tower.
Rise of Boutique Hotels
There are a number of boutique hotels in the country, which offer a wide range of services. They
can have extreme comfort and several staying options.
Cruise Travels
There is a constant demand in the cruise travels including large and small ships and cruises. The
tours including family vacations, land and sea tours, holiday in cruise, and royal weddings are
currently in the trend. The sea itself can be so romantic for the lovers, couples, and poets. The
look of the charming cruise can inspire travellers to feel unforgettable lifetime experiences.
Travel Tradeshows for Promoting its Tourism
Tradeshows such as SATTE are promoting tourism in India. It has provided a platform to come
into close relationships with different stakeholders. These programs are very bright in the field of
tourism industry.
Please see Appendix 1 for leaflet
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Task 2
2.1 Assess the stages and timescales involved in developing holidays
Holiday is for refreshing the minds. Everyone needs some relaxation in his or her exhausted life.
Everyone has his or her own perspective on the holidays. For any holiday tours, there are
different stages that need to develop. The development of the holiday can be divided is twelve
stages. There are different scales also for the holidays. Designing any, tours are important. Not
only design is important, but also the implementations and the development is also an important
parameter (Becker, 2016). Stages that can be developed for any holidays are-
Research of destinations and market
The destination is the main element that needs to care in case of any holiday. As the place is
important, identification of the place is also important for the holiday purpose. The holiday
always seeks for the market segment where the plan can be successful. Economical factor,
political factors and social factors are also influencing the holiday destination.
Tour Itinerary development
It mainly based on two key elements or approaches. One identifies the origin points, destinations
and routes and another one include the departure points, destinations features, meal and legal
requirements (Holland and Leslie, 2017).
Negotiations with tourism suppliers
Holidays need proper planning. The charges for the holiday are always a matter of consideration.
Transporting, accommodations and travel place have their own charges. Those charges should
have some negotiations and the suppliers should be flexible as well.
Costing
Costing is a factor that cans a negative as well as a positive impact for the consumers. If the
costing is high then low, consumers will be there and if the costing is reasonable for the
consumers as per the destinations, then they will be happy to join the tour (Defeyter, 2017).
Financial evaluation
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The consumers expect the rate of return. Therefore, if there is any financial risk in any country or
region, then the consumer will not feel free for the holidays. Holiday package is a complex
decision as it includes the demand of the consumers. There are two types of holiday pricing such
as cost-oriented and market-oriented.
Administrative staff
For extra activity, holidaymaker needs to concentrate on the administrative staff. Every holiday
package wishes more as everyone plans a holiday to fulfil of the demands because they are going
to enjoy their life apart from their daily boring life.
Marketing
Maximum holidays are pre-planed from the point of view of customers. Everyone wants to go to
the place where he/she can find attractions. Attraction is the only key point that includes the
extra benefits to the place. Marketing of any holiday destination and the package need a good
marketing strategy. A good marketing strategy can change the point of view of the consumers for
any place (Ekinci, 2018).
Tour marketing plan
Tour marketing plan will express the benefits of the holiday package. This includes the
accommodations and the plan of the holiday.
Other than these factors, market inbound and outbound, operations and executions, tour
brochures and post tour management are also the key factor for implementing tours.
2.2 Evaluate the suitability of different methods of contracting for different components of
the holiday and different types of tour operator
Holiday has some proper planning and development process. There are many components that
include accommodations, transports, place of attractions etc in holiday packages. Different
methods are available for the managers of the holiday to contact for the different components.
The methods are-
Fixed contract
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When the consumption is high, managers fixed the rate of the packages. In this case, everyone
will pay equally for the holiday package. Services and benefits are also equal. Discount is also
given the same for each personality. When the consumers are in large number and the providers
have the benefits of having extra consumers, they only look into the profits as they are giving the
same benefits to everyone.
Sale only contract
Sale only contract is high priced always. This contract is only in the peak session of the holiday.
In this case, facilities are also high as they are paying more than the value. This time the tour
manager can find higher profits and they will generate as much as they can. This contract can be
risky as the value of the holiday is high. However, tourists are simply interested in this contract
as they can hardly get those holidays (Jena et al, 2017).
A Holiday operator helps the tourist with the guiding and providing the services as they want.
Operators are the assistants for the customers. There are different types of operators in the
holidays. Those operators are-
Inbound tour operators
Operators who directly work with the customers are inbound operators. They manage the
services and the facilities of the consumers.
Outbound tour operators
These operators only support some group of customers or individuals. These consumers can be
from the same country or from a different country.
Domestic tour operators
If any holiday is within the country, then some operators help the customers from the same
country. Those tour operators are the domestic tour operators. They do not go for international
holiday planners.
Ground operators
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A person who books the destinations and the hotels as well are the ground operators. These
operators are actually from any particular agencies.
2.3 Calculate the selling price of a holiday from given information above.
Calculation of the selling price for 50 students
No of Student Room
rent( Euros)
Transport( Pou
nds)
Guide
Charges
Visitors
attraction/ person
50 89 6949 896 45.6
Euros Pounds/person Sub total
Students
number
50
Accommodation 89 78.61 3930.5
Transport 6949 6949
Guide Charges 896 791.42 791.42
Visitor Place 45.6 40.28 2014
Exchange rate 1.14 to 1
Total 13684.92
Mark Up 28% 3831.77
Table 1: Selling Price of the Holiday
(Source: Created by Learner)
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Task 3
3.1 Evaluate the planning decisions taken for the design of a selected brochure
For attracting the customers, there are different types of brochure and pamphlets, which is used
by the holiday planners. Travel experts give the total information of the holiday package on those
brochures to attract the customers. This will enhance the customer's mind for the holiday. For
making any brochure, there are various planning decisions (Adachi, 2018). Those planning
decisions are-
Identification of the factors affecting the planning decisions
While planning for the brochures, marketers need to focus on the key factors that attract the
customers. It is for sharing information about the destinations as well as the plans.
Brochure format
Planning time, planning destinations and targeted all the things need to be in the brochure. There
should be a tour organization name. That will attract the consumer.
Determination of budget and target market
The budget should be within the expectations of the consumers, and then only consumers will be
attracted for the holiday. The targeted market will be focused when budget takes place.
Stages and the time limit
Time determination is a vast focused thing. If the planning and everything are not happening
within the times, then the planning process can be delayed. This will effect on the business.
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.
Digital marketing is a vast change in marketing that comes into market segments of all type of
organization. New technology adopted by the new market segments for better outcomes. Tours
are planning through online marketing in recent days although traditional marketing is also there.
Every holiday planners are providing their plans on their websites. Digital marketing changes the
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