Tour Operations Management: Expedia's Hotel.com Operations Team

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TOUR OPERATIONS
MANAGEMENT
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Contents
Introduction................................................................................................................................3
Lo1.............................................................................................................................................4
Analyse the effect of current or recent trends and developments on the tour operators
industry...................................................................................................................................4
LO2............................................................................................................................................5
2.1 assess the stages and timescales involved in developing holidays...................................5
2.2 evaluate the suitability of different methods of contracting for different components of
the holiday and different types of the tour operator...............................................................7
2.3 calculate the selling price of a holiday.............................................................................8
LO4............................................................................................................................................9
4.1 evaluate the strategies decision made by a different type of tour operators.....................9
4.2 compare the tactical decisions that could be taken by a selected tour operator in
different situations................................................................................................................11
Conclusion................................................................................................................................12
References................................................................................................................................13
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Introduction
Expedia is the leading hotel accommodation provider and it wants to hire a new operation
team for its online company Hotel.com. The report covers the concepts or theories of travel
and tourism management. In the first part covers the trends and development of current and
recent time of tourism industry. The second part of the report depict stages required in the
creation of a package of the tour. For this purpose, multiple components will be analysed. In
the third part, there will be a selection of brochure and the aspects of the marketing team
working in the tourism industry. Lastly, in the last part, there will be a measurement of
various strategies of tour operators.
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Task 1
Lo1
Analyse the effect of current or recent trends and developments on the tour operators
industry
Online booking option: Now the customers have the service to book the tickets online. Due
to innovation in technologies booking has become very flexible. It is the best way to book
tickets at affordable prices. Hotel Expedia through online booking option for its online
company hotel.com can attract a large number of customers. In the online booking option,
customers can book the tickets from their home and can get full knowledge about the tour and
package. It is a development in the industry and there is a major impact of this development
on this industry because now each and every customer uses the option of online booking
option.
Customised holiday package: In the recent trend the customers are attracted towards the
customised holiday package in which the customers can select their favouritedestination with
the food and hotel. In this holiday package hotels, entertainment, events etc.
Technology: In the world of digitalisation technology play a major role in the tour operators
industry. Due to a lot of technological advancements the tourism industry has transformed.
Various innovation in the technologies assist the tour operators to make an effective
relationship with their customers. Now the customers can get whole information about the
tour operators and tourism industry with the help of technology.
Customer-centric approaches: Now the market has become customer oriented and all the
strategies are designed according to the needs and requirements of the customers. This
approach majorly affects the tour operator industry. The companies in order to compete with
similar business and to attract customers need to design their strategies and decision in such a
way that meets the requirements of the consumers.
Online Payment: It is the current trend in which the customers areallowed to pay money
throughtheir cards. In this mode, the customers need not keep the cash. With the help of
online payment, the purchasing has become very easy for the consumers.
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LO2
2.1 assess the stages and timescales involved in developing holidays
Development of the holidays involved various stages and time scales. The stages and time
scales are described below:
Research: In the research process various activities are taken into consideration at the
destination place. In this stage, the political, legal social etc. factors are examined. Suppliers
are also approached in this stage (Abrate, and Viglia, 2016). The needs of the tourist are
identified and the location is compared with the requirementsor needs of the customers. In
this stage time of one month is required.
Negotiation: In this stage, negotiation is done with suppliers in order to provide various
facilities such as lodging, transportation etc. while negotiating with the supplier's various
factors are considered. In this stage, the final selection of the vendors which will be involved
in the tour is done. This stage takes the time of 2-3 months.
Tour development: After the negotiation stage this stage is initiated. The modes of
development and promotion of the tour are selected. Online mode, print media or other
methods are determined for the purpose of tour development. Tour development is an
essential stage as it is directly aligned with the customers. 1 month is needed for the
completion of this stage.
Pricing: There are two methods of pricing,these are market-oriented and cost-oriented. The
financial aspects are considered in this stage. The currencies of the countries and the
profitability of the overall tour is evaluated. Pricing requires 1 month of timescale.
Administrative staff: Human resource is required for the tour hence in this stage the hiring
procedure is carried out. The staff is hired according to the requirements of the tour. In the
tour industry, skilled and talented human resource is required. In recruiting the staff various
skills and knowledge of a person is examined. It requires around one month.
Marketing: In this stage, the various strategies are framed to make coordination among the
numerous vendors such as airlines, hotels travel industry etc. In this stage, the tour is
promoted through several methods such as through social media or print media.In this stage,
the tourists are made familiar with the tour. Marketing is done in one month.
Development of the tour marketing plan: It is a set of direction for the overall tour. In this
stage, the overall plan is developed which will be followed throughout the whole tour. For the
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systematicarrangement of all the activities, a plan is developed. This stage is an important
stage as it regulates all the activities and brings uniformity in the operations of the business.
This stage requires 3-4 months.
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2.2 evaluate the suitability of different methods of contracting for different components
of the holiday and different types of the tour operator
Fixed contract: in this contact, the charges are based on the volume. This method of
contracting opts for the maximisation of the revenues. In this type of contracting the
customers are offered a huge discount (Akoumianakis, 2014). Due to the availability of the
heavy amount of discount fixed contracting is very popular among the customers. In the fixed
contract various aspects and factors are considered. This is the most suitable contracting for
both customers and operators as well.
Sale only contracts: In this type of contact the amount is charged more that of a fixed
contract. This contact is designed in accordance with the needs of the consumers. This
contract fulfils various requirements of the customers at a higher cost. It is not enough
popular among the consumers as it is very costly and risky. Gradually the popularity of this
contracting is diminishing. As this contracting does not offer a wide range of services and
discounts to the consumers, the consumers resist going with this type of contract.
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2.3 calculate the selling price of a holiday
Calculation of selling price of a 7 nights holiday for two people in Barcelona including return
flights from London, hotel booking, airport transfer, airport tax and holiday insurance.
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Task 4
LO4
4.1 evaluate the strategies decision made by a different type of tour operators
Tour operators design various strategies and decision for surviving in the long run. This
designing procedure is very complex as it involves the consideration of several factors. These
assist in the smooth running of the business and all the activities can be carried out in a
uniformed and organised way. Some strategy which is commonly used by every operator is
as follows:
Discount pricing strategy: this strategy is prominent in the tour operators. In this strategy,
the customers are offered various discounts. The amount of discount is calculated upon the
fixed price. This strategy is very useful in attracting customers (Bramwell, 2012). A lot of
tour operators use this strategy. Selection of correct strategy is essential otherwise it may
affect the business adversely. The strategy and decision making are done after the
consideration of a lot of aspects. In the seasonal package tour operators offer huge discount to
the customers in this way the pricing strategy is determined by the tour operators.
Targeting, segmentation and positioning: At the time of framing strategies and making
decision tour operators measure the lifestyle, preferences of the customers. This helps a lot in
making decisions and designing strategies. The information related to the purchasing power,
behaviour,demographics etc. are examined by the different tour operators. Consideration of
these factors is vital for an effectivestrategy. Inspection of the current situation and the
requirement of the customers is crucial as the market has become more customer-centric.
Competitive pricing strategy: Competitive pricing strategy is famed after the consideration
of the prices which have been set by similar companies. In order to sustain the business and
for the enhancement of the business the prices should be set after making an analysis of the
prices of the competitors. It helps to build customer loyalty and to hold the customers for the
long term. In the market, there is a cut-throat competition. It becomes necessary to gauge the
prices of the competitors to stay in the competition.
Promotional strategy: In this strategy for making the customers familiar with the tour and
the benefits and ancillary services which are offered in the tour. There are numerous methods
available to conduct promotion such as online method and print media. On Facebook,
youtube, newspapers, temples etc. different tour operates do the promotion of their tour. For
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the promotion of the tour, the budget is prepared as well. A suitable or attractive promotion
help out to target more customers and to generate a lot of profits.
Seasonal aspects: In the seasons by offering discounts to the customer’s large number of
customers can be attracted. In the peak by attracting customers and by offering a wide range
of services to the customers a high amount of revenue can be generated (Lee, 2013). In the
offseason, the strategy needs to be changed and it requires analysis of the market for the
determination of the correct strategy according to the season. Hence the season is considered
by every tour operator for designing an attractive strategy and for better decision making.
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4.2 compare the tactical decisions that could be taken by a selected tour operator in
different situations
Usually, a lot of tactical decisions are made by the tour operators. The decisions are related to
the accommodation, negotiation, transportation etc. tactical decision is important to form the
view of business perspective. The company Hotels. Com in order to make an effective
relationship with the stakeholders can make a lot of arrangements related to the hotel,
transportation etc.effective relationship with the customers and stakeholders are essential to
make loyal customers and to increase the value of the company (Zikmund, et. al., 2013). A
tactical decision is a decision which is very helpful for the smooth running of the operations
of the business and to bring efficiency in the overall functioning of the business. Tactical
decisions help a company or industry to deal with complex situations and to take the right
decisions at the right time.
Meeting should be held by the service providers for effective pricing and effective
negotiation with the vendors by the Hotel. Com. Feedback must be taken by the customers
for improving the quality of the services. It helps to provide maximum satisfaction to the
customers and to take corrective action at the correct timing. Budgets should be prepared by
the company and then cost should be allocated to each and every activity in an appropriate
manner. Hotel .com for taking tactical decisions research should conduct that will help the
company to enhance brand image and to become a leading tour operator company. These
were the tactical decision that could be taken by the Hotel.com. These decisions assist to
improve the market positioning of the company.
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Conclusion
It can be concluded from the report that tour packaged required involvement of a lot of
stages. In the report, the impact of current trends and developments on the tour operations
industry has been explained. The stages and time scales that are required in developing
holidays have been depicted. Methods of contracting suitable for tour operators and various
components have been described in the report. The report covers explanation of
planningdecision, the suitability of alternatives and suitability of different methods of
distribution applied by a tour operator to sell a trip. Tourism industry requires careful
planning and suitable strategies to stay in the competition and to attract customers. The tour
operators need to take tactical decision to bring effectiveness and efficiency in the operations
of the business and to perk upproductivity.
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