Analysis of Tour Operators' Strategies and Operational Decisions

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TOUR OPERATIONS MANAGEMENT

Contents
LIST OF FIGURES..........................................................................................................................................2
LIST OF TABLES............................................................................................................................................3
INTRODUCTION...........................................................................................................................................4
LO 1.............................................................................................................................................................5
1.1 ANALYSE THE EFFECTS OF CURRENT AND RECENT TRENDS AND DEVELOPMENTS ON THE TOUR
OPERATORS INDUSTRY............................................................................................................................5
LO 2.............................................................................................................................................................9
2.1 STAGES AND TIMESCALES INVOLVED IN DEVELOPING THE HOLIDAYS..............................................9
2.2 DIFFERENT CONTRACTING METHODS FOR DIFFERENT HOLIDAY COMPONENTS AND VARIOUS
TOUR OPERATOR TYPES........................................................................................................................12
2.3 SELLING PRICE CALCULATIONS........................................................................................................15
LO 03.........................................................................................................................................................16
3.1 PLANNING DECISIONS TAKEN FOR THE DESIGN OF A BROCHURE...................................................16
3.2 ALTERNATIVES TO A TRADITIONAL BROCHURES.............................................................................20
3.3 SUITABILITY OF DIFFERENT DISTRIBUTION METHODS TO SELL HOLIDAY FOR DIFFERENT TOUR
OPERATORS...........................................................................................................................................22
LO 4...........................................................................................................................................................24
4.1 STRATEGIC DECISIONS MADE BY DIFFERENT TOUR OPERATORS.....................................................24
4.2 TACTICAL DECISIONS TAKEN BY TOUR OPERATORS IN DIFFERENT SITUATIONS..............................26
CONCLUSION.............................................................................................................................................28
REFERENCES..............................................................................................................................................29
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LIST OF FIGURES
Figure 1: Globalisation and Tourism Source: WBA, 2012...............................................................4
Figure 2: Technological Advancement Source: Nanu, 2017...........................................................5
Figure 3: Trailfinders Leaflet.......................................................................................................... 7
Figure 4: Thomas Cook Brochure.................................................................................................17
Figure 5: TUI Brochure.................................................................................................................18
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LIST OF TABLES
Table 1: Tour Budget....................................................................................................................15
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INTRODUCTION
The given assignment is based to enhance the understanding of the tour operator industry and
different stages associated with it. Initially, the role of the tour operators industry in the travel
and tourism sector is understood by analysing the effects of recent and current developments
and trends. Further, different stages of holiday package creating are understood by assessing
and evaluating timescales and appropriateness of various methods of contracting for different
holiday components. Also, the promotional methods to sell holidays via different means is
evaluated and assessed. Lastly, the importance of tactical and strategic decision making for tour
operators is understood by evaluating the different strategic decisions and comparing the
tactical decisions that can be taken in various situations.
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LO 1
1.1 ANALYSE THE EFFECTS OF CURRENT AND RECENT TRENDS AND
DEVELOPMENTS ON THE TOUR OPERATORS INDUSTRY
Travel and tour industry is a dynamic sector
that requires tour operators to adjust their
operations as per recent developments and
trends in order to provide excellent services
to their customers and increase their profit
margins. Trailfinders with over four decades
of experience in the market they have
proven it adaptable and dynamic in nature.
Over 1000 employees working in 32 centres
around the globe are dedicated to analyse
and adapt to the ever-changing market to
get the best out of it (Trailfinders, 2018). As
per the analysis, followings are the most
current and recent developments and
trends in the industry:
FDI AND GLOBALIZATION
By understanding the importance of
tourism for national growth, most countries
like USA, India, and Sri Lanka etc. have
simplified their policies like passport and
Foreign Direct Investment (FDI) etc. This has
raised the opportunity for the Trailfinders
to increase its operational boundaries and
collaborate with local and international tour
operators to provide best deals to tourists.
FDI also allows Trailfinders to invest in
foreign countries through which new
centres can be started (Dwyer 2015).
Figure 1: Globalisation and Tourism
Source: WBA, 2012
DISPOSABLE INCOME
As per the survey the total disposable
income of UK, citizens have grown over the
years which opens the opportunity for the
Trailfinders to attract such customer base
and provide them irresistible deals. These
incomes are generally used for luxuries
items, tourism and countries with lower
GDP line Taiwan, Sri Lanka etc. can be
arranged as destinations as they have more
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to offer at minimal prices (Trailfinders,
2018).
TECHNOLOGICAL ADVANCEMENT
Increased usage of social media like
Instagram, Facebook etc. is another recent
factors that are useful to attract a new
customer base.
Figure 2: Technological Advancement
Source: Nanu, 2017
Data categorization done by such
organisations can help Trailfinders to
observe and reach a specific market
segment with specific tour facilities. For
instance, the young group can be offered
adventure destinations, couples and elderly
can be presented a calm and peaceful
destination. These platforms are also the
fastest and affordable way to promote and
organise surveys for Trailfinders, for
example, hotel ratings by customers can be
obtained based on which new deals can be
made. This also allows Trailfinders to
determine famous local facilitators, for
instance, local restaurants and hotels etc.
(Milano, et al., 2011)
FOOD TOURISM
With different cultures and destinations
around the globe, comes the variety of
cuisines that attract many travellers of all
ages. Experiencing both decent and bizarre
foods is a dream of many that can be
completed by the Trailfinders by offering
tailored tour facilities. This may include
farm visits, cooking courses etc.
(Swarbrooke and Horner, 2012)
ADVENTURE TOURISM
As per a report, young or/and married
couples ought to choose adventure
destinations. Surveys show it is the second
most favourable choice of tourists. With
countries like Africa, Sri Lanka that has
breath-taking beautiful landscapes and
safaris, Trailfinders can easily grab the
opportunity to offer affordable and luxuries
trips to their customers (Swarbrooke and
Horner, 2012).
DESTINATION MARKETING
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A major change has been noticed in the
tourism marketing, which is replaced by the
destination marketing. Instead of focusing
only on tourism, other tour operators are
more likely to sell the destinations to their
potential customers. Trailfinders can focus
on the luxuries and views offered by the
destination while promoting the tour
packages (Boniface, et al., 2016).
Aforementioned are some of the recent
trends and developments that can be seen
in the tourism sector. While these factors
have eased the work of Trailfinders to some
extent and helped in increasing its
operational area, this has also increased the
market competition. This has raised the
stakes, to provide luxuries deals to their
customers, and Trailfinders has shown its
commitment towards their customers by
adjusting as per the trends (Lemelin, et al.,
2013).
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Figure 3: Trailfinders Leaflet
Source: Author
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LO 2
TITLE
Proposal for an educational tour for students above age 18 from London, the UK to Brussels
and Brugge, Belgium
INTRODUCTION
The following report involves descriptive information regarding the luxury coach and
educational tour for adult students. Initially, the stages and timescales involved in developing
this holiday are assessed, followed by evaluating the suitability of various contracting methods
with different holiday components. Lastly, the overall selling price for the tour per person is
calculated.
BODY
2.1 STAGES AND TIMESCALES INVOLVED IN DEVELOPING THE HOLIDAYS
The educational tour for adults will start from the July 2020, with 50 students per group, the
journey will start from London, the UK to Brugge and Brussels, Belgium. This will involve
different stages to be covered, which are discussed below:
MARKET RESEARCH
This stage deals with assessing all the essential information regarding the destination like its
climate, fares, accommodation, transportations, and educational destinations. Thus,
Trailfinders will be responsible to gather and filter out most appropriate and affordable
destination factors. Since the travel will occur during the summer vacation of 2020, thus it can
be assumed that the climate will be appropriate for covering maximum local specialities
(Kärcher, 2013).
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Trailfinders will require to contact different local services regarding their services and analyse
their quotations to select the most appropriate service providers. This includes contacting
different accommodation, transportation and visitor attractions.
SCHEDULING AND PLANNING
After research is conducted and quotations are received, the next step is to contact the
selected local service providers, and layout a structured plan for the trip. Planning in advance
avoids the unwanted delay on-spot along with getting the best out of the time during the trip.
Also, this ensures smooth coordination between the service providers. The schedule has to be
passed down to different local service providers like accommodation and transportation
providers by the Trailfinders. to get the best out of the 5-night stay and Brugge, destinations to
visit and the path to be followed has to be selected (Kärcher, 2013). As per initial analyses,
destinations like Groeningemus museum and Belfry are appropriate to visit for educational
purposes.
CONTRACTING
As the local service providers are selected, next step is to negotiate and agree on terms
regarding the cost, facilities etc. a formal contract has to be signed by the Trailfinders and them
to ensure that both parties held down their end of the bargain during the entire trip. this also
ensures that best deal is received by the Traifinders as booking in advance exterminates the
chances of real-time issues like room unavailability etc. (Khairat and Maher, 2010).
As per the quotations received, Grand Casselbergh, Brugge has been selected for
accommodations of 50 students per group that includes twin room with breakfast at an
affordable price. For transportation, a luxury coach is selected with a sitting capacity of 54 with
two drivers and a tour manager. Additionally, a local guide is contacted by the Trailfinders and
is hired for the entire trip ad treasonable rates.
BROCHURE
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Once the aforementioned steps and executed by the Trailfinders, the last stage of developing a
holiday is to provide the essential and legit information to the customers of Trailfinders in an
attractive format. This information includes a wellformed timescale, one of which is presented
below:
03 December 2018
EDUCATIONAL TRIP SCHEDULE FROM LONDON, UK TO BRUSSELS AND BRUGGE, BELGIUM
Commencement date and Location: 2nd July 2020, London, UK
Destination: Brussels and Brugge, Belgium
Duration: Five nights stay at Grand Casselbergh, Brugge
Transportation: Luxury 54 seated coach with two drivers and one tour manager
Tourists per group: 50 adult students
Touring: Horta Museum, Magritte Museum, Belfry, Belfort, Historium, Greoninge Museum,
Market Square, Bruges and Historic Centre
ANY SORT OF CHANGE IN PLANS REGARDING ACCOMMODATION, TRANSPORTATION ORR
FARES WILL BE INFORMED TO THE STUDENTS 10 DAYS PRIOR OF THE STARTING DATE VIA
EMAIL
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