Tour Operations Management: An Analysis of Trailfinders Ltd.

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TOUR OPERATIONS
MANAGEMENT

TABLE OF CONTENTS
Introduction......................................................................................................................................1
Task 1...............................................................................................................................................2
1.1 Analyze the effects of current and recent trends and developments on the tour operators
industry........................................................................................................................................2
Task 2...............................................................................................................................................3
2.1 Assess the stages and timescale involved in developing holidays........................................3
2.2 Evaluate the suitability of different methods of contracting for different components of
the holiday and different types of tour operator 4
2.3 Calculate the selling price of holiday from given information..............................................5
Task 3...............................................................................................................................................7
3.1 Evaluate the planning decisions taken for design of a selected brochure..............................7
3.2 Assess the suitability of alternatives to traditional brochure for different types of tour
operator........................................................................................................................................9
3.3 Evaluate the suitability of different methods of distribution used to sell a holiday for
different types of tour operator..................................................................................................10
Task 4.............................................................................................................................................11
4.1 Evaluate the strategic decisions made by different types of tour operator..........................11
4.2 Compare the tactical decisions that could be taken by selected tour operator in different
situations....................................................................................................................................12
Conclusion.....................................................................................................................................13
References......................................................................................................................................14

LIST OF FIGURES
Figure 1: Brochure of Great Rail Journeys......................................................................................7
Figure 2: Brochure from Iceland ProTravel....................................................................................8

LIST OF TABLES
Table 1: Tour package details..........................................................................................................5
Table 2: Tour package selling price calculation..............................................................................5

Introduction
Business of tour operation is identified as firm, company or organisation that purchases travel
products that are different from suppliers that are assemble for creating tour package with own
rates. The current report will aim at understanding industry of tour operator by analyzing major
developments in reference to Trailfinders Ltd. The report will develop stages and timescales in
context for planning holiday of London students to Belgium by further evaluating best contract
methods and calculating selling price for per person. Further, study will emphasize on planning
decisions for creating brochures for selling luxury holidays by assessing traditional method’s
alternatives and dispensing distribution methods for brochure. Lastly, the report will compare
and evaluate tactical as well as strategic decisions taken through tour operators.
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Task 1
1.1 Analyze the effects of current and recent trends and developments on the tour operators industry
2
Impact of Recent and Current Developments of
Trends in Industry of Tour Operator
Industries of tour operation are going through huge
developments and changes due to fluctuated market
and consumer trends. The leisure tourists have got
package holiday range that constantly increased
positive contribution of tour operators within tourism
sector. Tour operator refers to authority or person that
arranges holidays or vacations in single package for
tourist that includes services of food, accommodation,
mode of travelling, reservations etc that has increased
importance of 600 tour operators working in UK.
Similarly the management of Trailfinders is actually
depends on tour operators that has faced recent
changes in tourism industry.
Types of Tour
Operators
Specialist Tour Operators –
They have got specialization
in arranging specific holiday
types without giving huge
products. They create tour
package for specific country
or give adventure packages
like South East Asia or
Amazon that dispenses
opportunity foe memorable
experience.
Domestic Tour Operators – It prepares package of
holiday within UK destinations. Such type of operators
are involved in arranging older holiday packages that
like being joined with coach journey for UK
destinations that are not seen before.
Inbound Tour Operators – They are interested in creating
holiday packages for foreign tourist that visits in their own
country. It provides variety of service to customers by promoting
and enhancing foreign exchange for economic growth.
Associations of Tour
Operators
They are formed for checking the
availability of sufficient service to
customers through different trade
association such as Association of
Independent tour Operator
(AITO), Association of the British
Travel Agent (ABTA) and Civil
Aviation Authority (CAA) etc. It
allows and maintains fair trade
practises within country and aims
to eliminate the exploitation of
customers and their money from
operators.
Development in
Industry of Tour
 Services have been developed
according to consumer demands
and likings.
 Boosted travelling trends by
ships, cruises and fights.
 Formed holiday packages by
including basic amenities and
modifications based on
consumer request.
 Consumer demand for beautiful
placed increased environmental
preservation activities.

Task 2
2.1 Assess the stages and timescale involved in developing holidays
The tour operators of Trailfinders aim to strategize better quality products and services to satisfy
customers by fulfilling their demands and likings. The consumer satisfaction or destinations and
journey should be prepared according to demand for presenting memorable experience. The
Trailfinders has given opportunity to create holiday package for conducting educational tour for
London students that will headed towards Belgium for Brussels and Brugge. The tour has been
planned five nights for 50 students that requires to strategizing several stages for providing ideas
if rates per person rates by including all services and products (Horner and Swarbrooke, 2016).
The planning of tour package consists of following timescale and stages that includes:
 Stage of Research and Planning – It is important to finalize destination first but it
requires satisfying consumers by researching destination’s attributes, features or cultures.
For this purpose conducting market research is necessary to provide clear clarification of
destination to students.
 Stage of Negotiation – The services required by students is mentioned in package by
dispensing fair idea of prices that is written after negotiation from services providers,
suppliers and service vendors that will enhance customer attraction from affordable
pricing strategy.
 Stage of Administration – The stage is aimed for facility arrangement that is given to the
employees of Trailfinders for arranging all services, plans and facilities in proper manner
for increasing sales through the holiday package.
 Stage of Marketing – The pricing and destination decision brings stage of advertising
holiday package within consumers by using method of social media, brochures, personal
messages, and pamphlets etc that will enhance and boost sales.
 Stage of Departure – it includes the information of time and date in which travellers has
to reach location of departure for Belgium journey. It is last stage that is prepared after
consumer satisfaction from luxury holiday package and pricing strategies that is created
in favour of students (Mowforth and Munt, 2015).
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2.2 Evaluate the suitability of different methods of contracting for different components of the
holiday and different types of tour operator
The tour operators play the important role in fulfilling consumer requirements and expectations
before starting journey. The tour package created with satisfactory features tailors the successful
sales increase. The Trailfinders has increased its market image by arranging variety of tour types
that consists of bird watching, beach trips, educational, sports trip, marine, adventurous etc. It
has planned tour to Belgium for UK students by aiming to dispense quality services by agreeing
on contracts that are essential to retain service providers to travellers (Shi, et.al, 2016). Following
are key services that satisfy customers that requires contracting with vendors, dealers or suppliers
for acquiring guarantee of services to customers at destinations or journey which are as discussed
below:
Contracts with Hotels and Guest House – In this service, bed facility is given to customers. It is
available within two contracts first is fixed contract that books whole hotel for year based on its
package sales and customers counting and another is identified as floating contract in which the
operators mentions the need of bed through numbers that are paid by traveller according to the
days stayed. Customers get satisfaction as their basic amenities is directly arranged by holiday
operator.
Contract with Airways and Railways – The role in giving transportation services to consumers is
very essential by tour operators that manages and arranges seat for specific a customer that has
the need of transport service to be included in holiday package for making journey much easier.
All the facilities regarding pricing, sudden flights and flight delays are managed by FTO in tour
operator presence. Fixed contract is done for giving constant services to consumer.
Contract with Food Providers – It is essential for operator for arranging meals and dinners for
customers. It provides satisfaction to tourist and travellers and further it provides liberty to
consumers to add drinks requirement in their package by paying extra charges for enjoying their
journeys. The operators must utilize fixed contracts from cafes, hotels and restaurants for
dispensing satisfaction to customers (Haddadi and Khodadadpoor, 2015).
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2.3 Calculate the selling price of holiday from given information
The Trailfinders has planned educational trip from London to Belgium for 5 nights by taking 50
students for destination Brussels and Brugge. It is mandatory to mention information regarding
destination and it’s that is planned for year 2020 for July. The Grand Casselbergh has decided
the pricing strategy of various services on December 3, 2018. It has mentioned different services
and its amount that prepares best holiday package for students by providing assured service that
is mentioned in packages. The selling prices have been calculated for students that aids in
boosting package sales that has been analyzed according to per person (Sharpley, 2015). It will
help in increasing consumer attraction and students will be increased in education tour. The
calculation of tour package selling price is mentioned below:
Table 1: Tour package details
Exchange Rate €1.14 = £1
Rate of 1 Euro 1 Euro = £0.869
Number of Hotel
Rooms Needed
5 nights, 50 students shared by two people that consist of free breakfast.
50 students = 25 rooms.
One Room Rate 89 Euros
Rate of Luxury coach
54-seater
£6949
Rate of Tour Guide €896
Rate of Visitor
Attraction
€45.60
Mark Up by
Trailfinders
28%
Table 2: Tour package selling price calculation
Rate of 5 nights that includes 25 rooms
50*5*89*.869 = £19335.25
Rate of Luxury
Coach
£6949
Rate of Tour Guide €896*0.869 = £778.62
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Rate of Visitor
Attraction
€45.60*0.869 = £1981.32
Total Expenses
Incurred
£19335.32 + £6949 + £778.62 + £1981.32 = £29044.26
28% Mark Up £29044.26*28% = £8132.39
Rate of Selling Price
(per person)
(29044.26 + 8132.39) = 37176.65/50 = £743.53 per person
According to calculation of selling price for Belgium trip for each student will be £743.53 that is
to be collected by Trailfinders for increasing sales through consumer.
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Task 3
3.1 Evaluate the planning decisions taken for design of a selected brochure
The strategy of marketing refers to action, process or plan that is initiated for advertising, selling
and promoting tour service or goods. The documentation is done for mentioning promotional
plans and strategies of holiday packages that aids in boosting organisational sales. Trailfinders is
one of best tour operators that has provided affordable and quality tour and holiday packages by
aiming to utilize best means of promoting packages. Development and distribution of brochures
has boosted sales and interest of customers across world. The brochures refers to document that
is digitalized with creative and innovative thoughts that provides destination information that
becomes source of attracting consumers with attractive prices and packages (Lee and Andereck,
2016). It is essential for publish brochures for attracting numerous customers by aiming to plan
certain decision regarding brochure designing for selling luxury holidays that includes the
following:
Figure 1: Brochure of Great Rail Journeys
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(Source: Amy Harrison, 2013)
Brochure Appearance – The brochure attracts reader that influences by adorable features and its
content language. Creation of brochure should include better quality of paper, relevant content,
font size, structured innovation, paper size, colour choice etc. Researches related to destination
and attractions must be properly done for setting budgets of customers for attracting and
increasing sales.
Convincing Messages – Trailfinders must select better markets for distributing brochures by
mentioning right destination’s information regarding culture, features or political conditions. The
services in tour package must be written in brochures such as attractions, cost, destinations, time,
schedule, accommodation services etc. The pricing or product and services should be printed in
fair manner that should not include hidden charges as customers feel being cheated.
Figure 2: Brochure from Iceland ProTravel
(Source: Iceland Brochures, 2018)
Captivating and Quirky Impression – Attractive brochure display helps in grabbing attention of
customers. Destination’s information and colour combination selection should be properly done
by including variety of colours and marketing research (Scarles, 2016). Brand image can be
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