Tour Operations Management: A Comprehensive Report

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TOUR OPERATIONS MANAGEMENT

Table of Contents
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................4
Management report..........................................................................................................................4
Executive summary......................................................................................................................4
Introduction..................................................................................................................................5
1.1 Analyse the effects of current trends and developments on the tour operators industry.......6
Conclusion.....................................................................................................................................11
Task 2.............................................................................................................................................12
Written Report...............................................................................................................................12
Introduction................................................................................................................................12
2.1 Access the stages and timescales involved in developing holidays.....................................13
2.2 Evaluate the suitability of different methods of contracting for different components of the
holiday and different types of the tour operator.........................................................................15
2.3 Calculate the selling price of a holiday from given information below...............................16
Conclusion.................................................................................................................................17
Task 3.............................................................................................................................................18
Management report summary........................................................................................................18
Executive summary....................................................................................................................18
Introduction................................................................................................................................19
3.1 Evaluate the planning decision taken for the design of a selected brochure........................20
3.2 Access the suitability of alternatives to a traditional brochure for different types of the tour
operator and recommend the most appropriate for your tour package......................................21
3.3 Evaluate the suitability of different methods of distribution used to sell a holiday for
different types of tour operators and recommend the most appropriate for a luxury tour
package.......................................................................................................................................23
Conclusion.................................................................................................................................24
Task 4.............................................................................................................................................25
Written article................................................................................................................................25
4.1 Evaluate the strategic decisions made by different types of tour operators.........................25

4.2 Compare the tactical decisions that could be taken by a selected tour operator in different
situations....................................................................................................................................25
Conclusion.....................................................................................................................................29
References......................................................................................................................................30

Introduction
The report aims to identify the different types of current trends running in the tourism industry,
along with the role of relevant bodies such as ABTA, FTO; CAA associated with a tourism
industry will be discussed in this report. The report helps to understand the different stages of
choosing correct brochures design and impacts of making effective strategies, and a tactical
decision will be discussed in this report. Different types of marketing and selling methods will be
addressed in this report in the context of different kinds of tour operators as well.

Task 1
Management report
Executive summary
The report aims to identify the current running trends and developments in the tourism industry
and their impacts on the tour operators as well. It includes different patterns such as market
expansions, responsible tourism and budget airlines as well. The role of trade bodies such as
ABTA, AITO and CAA will also be discussed in this report as well.

Introduction
The report includes the various trends running in the tourism markets and their impacts on tours
operators as well. The report also helps to understand the role of UK different trade bodies in the
tourism industry as well. Different trends will be discussed briefly in the context of Trailfinders
Ltd.

1.1 Analyse the effects of current trends and developments on the tour operators industry
Travel and tourism industry is one of the most growing sectors worldwide. It made an
unexpected high growth in recent years; people started taking travel seriously in the past few
years. With the help of the internet, things become much easier for travel and tourism companies
to attract more and more customers. Digital platforms and social media play an essential role in
making the travel and tourism industry popular day by day. The industry has been changing
because there are many trends around the world, which caused some significant impacts on the
customers’ choices and preferences as well. This is one of those industries which got easily
affected by the surrounding things and activities all around the world as well. it helps the
economies of the countries to boost up and increase the chances of growth by making a positive
impact on the GDP and currency exchange rates as well (Phalusuk, et. al., 2018). Income from
tourists from other places or countries could be a huge part of the economy as well.
According to the EU package travel directive, tour operators are those traders who act
concerning packages and linked travel arrangements for commercial purposes as well.
The following are the classification of different tour operators in the UK.
TUI– It is one of the UK largest tour operators who provide all types of tours including domestic,
international tours as well. it was incorporated in 1923. The operating income is £297 million
according to the reports of 2013. The owner owns a total of 56.4% ownership, and the net
income of the company is £63 million in 2013.
Cosmos – it is the second biggest tour operator houses in the UK. The company provides various
type s of tours all over the world. The company was founded in 1961 under the parent company
named Cosmos tours Ltd., the turnover of the company is around an estimated £300-£350
million. It helps to understand the tours and its positioning; they are getting to the customers.
First Choice – It is one of the top-rated tour operators in the UK. The company is one of the best
service providers in the UK. The company was founded in 1973. The company was listed in
London stock exchange in 1982. The turnover is estimated £14.7billion as well. the revenue has
been rising by 9% which is huge profits itself (Paulina, 2019).

Tour operators are a huge part of the travel and tourism industries. tour operators are those
agencies who provide travel and tourism-related services to the customer on behalf of different
suppliers which are airlines, cruise liners, car rentals, hotels, railways, tour packages, restaurants,
cafe and travel insurances as well. it will be helpful to the customer to get all the facilities under
one roof. This industry gets affected from current running trends and new advance developments
all around the world which makes a big impact as well not only on the customers but also on the
tours operators so far (Vasyutin, et. al., 2018). The following are the current running trends and
development of the travel and tourism industry.
Personalise customized packages – “Do it yourself” is the perfect tag line for the travel and
tourism industries as well. it is one of the most recent trends which is getting popular now days
globally. Earlier tour operators were offering travel packages according to assume the customer
choices, it was difficult for the customers to consider every customer's choices, but now
companies find a perfect solution for it. The companies are now offering some personalised,
customized travel packages to the customer which customers can design according to their
personal choices and preferences as well.
Expansion of the cruise market – it helps the company to understand that these days, customers
interest has been growing to the cruises. The trend is new and developing, even there are many
budget-friendly tours available, which indicates the popularity and possibilities of the cruises
market can help the company to grow immensely (Jain, 2018).
Recognition technology – The technology is getting better by each passing day not only in the
travel and tourism industry but all the industries as well. Some high tech techniques such as the
face, fingerprint, retina scanning and biometric identification are very popular in travel and
tourism. It will be helpful to Trailfinders Ltd if the company will be offering some good
technology lace travel packages to the customers so they would feel safe, secure and enjoy their
vacations as well.
Online bookings – The internet makes it easy for the customer to book the tickets and other
facilities such as hotels, cafe and other things. It becomes very easy for the customer to make
bookings with the help of their mobile phones, websites. Trailfinders should develop an advance
website to attract customers (Marić & Zoroja, 2019),.

Mobile applications – Mobile application is the most running trend not only in the travel industry
but also in every possible industries these days. The companies are developing their mobile
applications so that they can easily inform their customers about deals, discounts and other
packages as well. Trailfinders should develop a fast responding mobile application to interact
more with customers and make a strong connection with them.
Responsible tourism – The companies and the customers are getting smarter and smarter about
their choices, preferences, rights and environment as well. the terrorist's attacks are some serious
kind of threats, and both company and customers should promote safe travel and responsible
tourism as well.
Chatbots & AI – Chatbots and artificial intelligence will be very helpful for the tours and travel
companies to provide 24x7 customer support because most customers search for travel
destinations during the night (after working hours). Chatbots and AI will be important to achieve
customer satisfaction. It also helps to attract more customers in this competitive world of tours
operators (Buzsik, 2016).
The internet of things – IOT (internet of things) is the most exciting technologies. It is very
popular, especially in hotel industries, all the facilities such as lights, curtains, luggage locations,
heating and conditioning are connected through some high tech sensors which customers can
control through their phones. It will bring an innovative experience to the customers and now
customers want those places only who have those high tech facilities inbuilt.
Developing interest in new types of tours – These days there are different types of tours
developing worldwide. The travel and tours are not just vacations or holidays nowadays; the
tours would be informative about education, ecological system, technological information and
history or culture as well. Trailfinders should offer some ecological, environmental, education,
history and cultural tours to its customers because customers want to earn knowledge and
experience new things about the place, they are going to travel (Koster, 2016).
Budget airlines – There was a time when airlines were a luxury, but due to the help of
globalisation, the airlines are now offering budget airlines tickets, which increase its popularity.

The effects of current trends on tours operators
Tours operators help to plan and execute these current trends on behalf of service providers to
the customers as well. Tour operators will get affected both positively and negatively to them.
The chances of growth will be increased for the tour operators companies with the help of these
recent trends. Customer interactions will be helpful to the customer to increase customer
satisfaction as well, and the travel industry is one of the most customer-centric industries. It will
make a huge positive impact on the companies as well, and if the tours operators provide good
service, it helps to develop strong bonding with companies and customers. Tour operators start
offering different specific deals, discounts and smart packages around some mega-events in the
city as well, which helps to increase their profitability and growth in this competitive world.
Open communication has been developing, which helps to develop effective strategies for
running their businesses successfully. It helps to develop effective networking among the
vendors, tours operators and customers as well. Companies should develop some new innovative
approach tours such as trips for solo females, senior citizens, adventures tours because if tours
operators work according to the current trends, it helps to attract more customers which
increases the profits. It helps to develop sustainable travel and tourism development as well.
There are some negative impacts on the tour operators from these current running trends as well.
some events, destination tourisms and ineffective planning from tour operators can create many
problems such as loss to the company. Rumours can easily spread about the companies. Social
media made it very easy to highlight negative news about the companies to the world instantly.
Using these high-end technologies according to the trend, it will be required that the company
will control the costs and do effective financial planning as well. It helps them to offer them
good prices. These trends will increase huge competition not locally, but globally the tour
operators are facing huge competition such as different applications offering different offers to
the customers to book everything by their own and plan their tours and trips such as Trivago,
Airbnb etc. the mobile applications are giving a huge competition to the tour operators (Koster,
2016).
The role of the ABTA website helps the customers to provide information related to their travels.
It includes tour advice and financial plannings as well. The CAA is responsible for regulation

and safety in aviation in the UK. It also includes financial management and licensing fees, as
well.

Conclusion
Trailfinders Ltd is one of the popular tour operators of UK. Currently running different trends
such as emerging markets, budget airlines, etc. and its impact on the company has been
addressed in this report as well.