Analysis of Tour Operator Strategies: A Case Study of Trailfinders

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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 operator
industry........................................................................................................................................2
Task 2...............................................................................................................................................3
2.1 Assess the stages and timescales involved in developing holidays.......................................3
2.2 Evaluate the suitability of different methods of contracting for different components of
holiday and different types of tour operator................................................................................5
2.3 Calculate the selling price of holiday from given information..............................................6
Task 3...............................................................................................................................................8
3.1 Evaluate the planning decisions taken for design of selected brochure................................8
3.2 Assess the suitability of alternatives to traditional brochure for different types of tour
operator......................................................................................................................................11
3.3 Evaluate the suitability of different methods of distribution used to sell a holiday for
different types of tour operator..................................................................................................13
Task 4.............................................................................................................................................15
4.1 Evaluate the strategic decisions made by different types of tour operator..........................15
4.2 Compare the tactical decisions that could be taken by a selected tour operator in different
situations....................................................................................................................................17
Conclusions....................................................................................................................................19
References......................................................................................................................................20

LIST OF FIGURES
Figure 1: Alfa Travel brochures......................................................................................................8
Figure 2: Leger Holidays brochures................................................................................................9
Figure 3: Brochure racks in supermarkets.....................................................................................12

LIST OF TABLES
Table 1: Details of educational tour package..................................................................................6
Table 2: Selling cost of educational tour package...........................................................................6

Introduction
Tourist requires memorable and lifetime experience by travelling different parts of the world that
needs tour operator assistance to dispense better services for fulfilling their expectations graph.
The report will focus on understanding the industry of tour operators by listing down several
developments and current culture in tourism industry in context to Trailfinders by presenting the
leaflet. The study will emphasize on stages that are essential in developing holiday package by
evaluating different types of contracts that are essential for provides promise based on agreement
to dispense services to global tourist. It will further calculate selling price of educational tour that
is being conducted from London for students to Belgium. Moreover, the report will evaluate
decisions that are essential in brochure creation by reducing traditional methods and explaining
distribution channels required in brochure distribution. At last, the two tour operator will be
compared for determining their tactical and strategic decisions in different circumstances.
1

Task 1
1.1 Analyze the effects of current and recent trends and developments on the tour operator industry
2
Recent and Current Developments in
Tour Operator Industry
Travel and tourism industry is
operated by tour operators that aids
in making arrangements for
consumers regarding
accommodation, meals, guides,
transportation, flights etc. The
industry of tour operators focuses
on organising and packing various
tourism elements in single package
for dispensing memorable
experiences. Trailfinders is
identified as best tour operator
firm that plans different tour
packages with quality services for
customers by working with
objective of giving better holidays
through better framework.
Types of Tour Operators
Inbound Tour Operator – The
firm aims to create holiday
packages that are provided to
foreign tourist for increasing
country’s image. Best quality
products and services are given to
customers by boosting and
promoting currency for foreign
exchange that strengthens
economic stability.
Specialized Tour
Operators – It aims at
developing special
packages of holidays
for customers by
limited products. They
create packages for
certain destination or
country or adventure
for giving better
holiday package just
like Amazon for better
tourist experience.
Trade Associations of Tour
Operators
The UK has various associations that focus to provide services to tour operator
industry. ABTA aims to offer expertise, support and protection services that
dispenses responsible tourism for customers. AITO (Association of Independent
Tour Operators) that has specialized holidays and destinations for customers by
maintaining quality standards in products and services. The FTO (Federation of
Tour Operator) aims on bringing the improvements that impacts overseas holidays
within departure point of UK by aiming to set standards for hygiene, safety and
health overseas.
Recent Trends in Tourism
Industry
 The operators arrange
international as well as
domestic tours.
 Flexibility in programs and
tour packages based on
consumer demands.
 Best pricing strategies for
making package economic by
attracting numerous customers.
 It has helped in expansion of
cruise market based on
demands.
Tour operators is known as personality that is
able to take responsibility of creating vacation
and holiday packages by adding
accommodation and travelling services. It aims
to combine elements of touring and travelling
for developing attractive packages. Internet has
played important role that boosted self
tailoring packages for customers. They select
best agents for distributing their holiday
packages that consist of airline services, hotels,
transport etc.
Tour Operator Role

Task 2
2.1 Assess the stages and timescales involved in developing holidays
Introduction
Customer satisfaction is prioritized in Trailfinders through better and quality products according
to consumer preferences. It is important for tour operators to understand consumer needs while
preparing packages regarding destination choice. In reference to educational tour to Belgium the
Trailfinders requires timescale and stages for creating successful tour package for attracting more
consumers which are as follows:
Stage 1 – Destination and Market Researching – It is important to understand features and the
attributes of destination selected for tourist. The research is conducted for determining social,
political, economical factors of destinations by identifying precise needs of market that has been
targeted. It also identifies famous destinations, alternative destinations, supplier’s approach and
policy decisions to create holiday package.
Stage 2 – Development of Tour Itinerary – After searching best destination, it is important for
tour operators to include tour itinerary that includes tour destination and tour ingredients that are
liked by consumers. For joining all tour components it is important to create legal contract with
tour suppliers and vendors.
Stage 3 – Negotiating – It is necessary for service negotiation from different vendors or
suppliers that comprise airline, lodging, car rentals, transport operators, sightseeing vendors etc
(Komppula and Lassila, 2015). It can be done by entering into binding contract with service
providers that assures regular services asked by tour operators for tourists.
Stage 4 – Cost of Tour Package – It aims to identify the financial worth of holiday package by
entering various cost of services individually that consist of price of air travel, local services,
payroll, accommodation, research, marketing etc by structuring in proper manner for serving
customers in better manner. After finalizing tour package price, exchange rates are identified
through tour planner for making services and holiday much easier.
3

Stage 5 – Marketing and Promotion of Tour Operation – Several strategies and planning are
developed for promoting tour packages to customers for increasing their interest. It is essential
for tour operators for utilizing best promotion methods for providing consumer satisfaction by
manipulating tourist minds.
Stage 6 – Departure – The plans that are selected by consumers should include necessary details
of day, timing, and destination for departure to start journey for Belgium. It is identified as final
stage in luxury holiday package after customers gets satisfied from destination as well as pricing
plans (Mason, 2015).
4

2.2 Evaluate the suitability of different methods of contracting for different components of
holiday and different types of tour operator
The tour operator plays major role by identifying traveller likes and demand while choosing the
destinations. Consumer interest is highly prioritized for planning and tailoring the attractive and
successful tour package. For such purposes the industry is segmented into various categories and
sections that work on different types of tour package creation such as educational trips, sport
trips, adventurous trips, marine trips, beach trips etc. The services are dispensed to customers by
involving various dealers, vendors and suppliers that agrees on promise to provide services to
customers retained by tour operators. The promise of giving services is based on a contract that
is identified as the legal document that mentions promise to provide beats and quality services
that are involved in tour packages by tour operators (Shi, et.al, 2016).
Therefore, the Trailfinders requires aiming at creating agreements for services without getting
risk of being cheated or exploited by service providers which includes the need of contract with
several services for luxury holiday package that are discussed below:
 Contractual Alliance with Railways and Airlines – The operators have connections with
different airlines that provides limited seats to the customers based on contract for
eliminating transportation issue for customers that helps in boosting package sales.
Sometimes, flights gets cancelled or delayed, in such situations the operators takes charge
to provide alternative service to customers without getting late. The FTO members take
care of tourist in flight delays. The requirement of transportation is fulfilled by entering
into fixed contracts that handles sudden situations.
 Contractual Alliance with Hotels – It is important for customers to receive best staying
places in hotels. The operator entre in floating contract that arranges required beds in one
week for the consumers by giving payments to owners and other is foxed contract under
which beds in hotels are booked for year by paying nominal amount for giving final
decision of bed requirements (Lozano, et.al, 2016). The need of bed is based on demand
for destination and season. Hence, the contracts are identified as accommodation that
provides all services to consumers.
5

2.3 Calculate the selling price of holiday from given information
Educational trip has planned for London students from Trailfinders for Brussels and Brugge that
is situated in Belgium with 50 students that will be conducted in July 2020 for five nights. The
tour operators have to increase its sales by giving and promoting information of tour package to
customers. The package has pricing entered that is finalized from the Grand Casselbergh on 3rd
December, 2018. The information is mentioned regarding package details with pricing of service
that will be provided at destination to students that has helped in creating the attractive holiday
package. It is important for giving fair idea of selling price to students based on per person for
analyzing the sales and profits earned from holiday package (Hsu, et.al, 2016). The educational
tour will achieve successful reviews from customers by increasing sales through promotion by
entering correct and required information. The selling price calculation for Belgium tour in
discussed below:
Table 1: Details of educational tour package
Package
belongings and
Services
Pricing of Services Provided
Rate of Exchange €1.14 is determined as £1
Price of 1 Euro 1 Euro is identified as £0.869
Hotel Rooms
Required
50 students will need 25 rooms that will be shared by two people for 5
nights with free service of free breakfast.
Hence, 50 students = 25 rooms
Price of One Room 89 Euros
Price of 54-Seater
Luxury Coach
£6949
Tour Guide Price €896
Price of Visitor
Attraction
€45.60
Trailfinders mark-
up Cost
28%
6

Table 2: Selling cost of educational tour package
25 Rooms for 5 Nights
50*5*89*0.869 = £19335.25
Luxury Coach
Price
£6949
Price of Tour
Guide
€896*0.869 = £778.62
Price of Visitor
Attraction
€45.60*0.869 = £1981.32
Expenses Incurred £19335.32 + £6949 + £778.62 + £1981.32 = £29044.26
Mark-up cost of
28%
£29044.26*28% = £8132.39
Selling Cost of
Package (Per
Person)
(29044.26 + 8132.39) = 37176.65/50 = £743.53 per person
The above calculation has helped in determining selling price of tour package for single student
that is identified as £743.53 that is essential to pay by customers that will be collected by tour
operator of Trailfinders.
Conclusion
Tour package for Belgium has been planned by Trailfinders for London students by including
necessary services and pricing. It is important for operator to clearly mention details of tour
package for increasing customers more than 50 for 5 nights that needs several stages for
complying with (Boniface, et.al, 2016).
7

Task 3
3.1 Evaluate the planning decisions taken for design of selected brochure
Executive Summary
The Trailfinders has aimed for selling luxury holiday packages through brochure distribution to
customers for increasing the sales and profits that is also identified as marketing tool to promote
quality services by tour operator organisation. Brochure refers to document that is utilized for
promoting and advertising the services of tourism industry. It consists of thorough information
that is related to destination, its culture, pricing plans of services provided that aids in attracting
numerous customers within global tourist.
Introduction
Recently, printed brochures are considered for giving destination information to customers by
going door to door for increasing sales that has been now accompanied by virtual destination
tour, websites and online brochures. Hence, brochure plays important role in promoting tour
services to customers with adequate information related to destination and pricing strategies
(Huang, et.al, 2017). The Trailfinders has planned to use brochure for selling luxury packages by
considering several decisions in relation to planning which are as follows:
Figure 1: Alfa Travel brochures
8